Alaska Air Group’s (ALK - Free Report) subsidiary, Alaska Airlines, announced plans to make changes to its Boeing 737 MAX 9 order to include the bigger MAX 10s and longer-range MAX 8s.
The additional 737 MAX models are expected to maximize revenues for Alaska Airlines by offering more seats and reducing unit costs. The company aims for a single fleet featuring Boeing aircraft and CFM engines.
Alaska Airlines’ contract consists of 145 firm orders and options for Boeing 737-9 aircraft, scheduled for delivery between 2021-2026. The airline currently has 14 737-9 jets in its fleet. The remaining 131 aircraft consist of 79 firm orders and 52 options. With the modified order, the carrier now expects a mix of 70 737-9s, 60 737-10s and 15 737-8s for the 145 planes.
The move to modify its Boeing 737 MAX order to include larger MAX 10s and longer-range MAX 8s is prudent as the airline tries to take advantage of the continued recovery in air-travel demand. Alaska Airlines is considering the 189-seat 737-10s for its long-term fleet, while the airline expects to utilize the longest-range 737 MAX 8 aircraft for high-performance and medium-sized markets. The MAX 9s will cater to the long-haul, high-demand routes, per a statement released by the company.
Alaska Airlines expects to take delivery of the first 737-8 aircraft in the second half of 2023 and the first 737-10s in early 2024. The airline is replacing its fleet of Airbus A320 aircraft with the Boeing 737 MAX models, which are more fuel efficient and generate lesser carbon emissions per seat. Meanwhile, the carrier is revamping 61 of its 737-800 aircraft with an investment of $20 million.
Zacks Rank & Key Picks
Alaska Air carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks within the broader Transportation sector are as follows:
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 31.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest have surged more than 47% in a year.
J.B. Hunt Transport Services (JBHT - Free Report) carries a Zacks Rank #2 (Buy). The company’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 10.2%.
Shares of J.B. Hunt have rallied more than 35% in a year.
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Alaska Air Group’s (ALK - Free Report) subsidiary, Alaska Airlines, announced plans to make changes to its Boeing 737 MAX 9 order to include the bigger MAX 10s and longer-range MAX 8s.
The additional 737 MAX models are expected to maximize revenues for Alaska Airlines by offering more seats and reducing unit costs. The company aims for a single fleet featuring Boeing aircraft and CFM engines.
Alaska Airlines’ contract consists of 145 firm orders and options for Boeing 737-9 aircraft, scheduled for delivery between 2021-2026. The airline currently has 14 737-9 jets in its fleet. The remaining 131 aircraft consist of 79 firm orders and 52 options. With the modified order, the carrier now expects a mix of 70 737-9s, 60 737-10s and 15 737-8s for the 145 planes.
The move to modify its Boeing 737 MAX order to include larger MAX 10s and longer-range MAX 8s is prudent as the airline tries to take advantage of the continued recovery in air-travel demand. Alaska Airlines is considering the 189-seat 737-10s for its long-term fleet, while the airline expects to utilize the longest-range 737 MAX 8 aircraft for high-performance and medium-sized markets. The MAX 9s will cater to the long-haul, high-demand routes, per a statement released by the company.
Alaska Airlines expects to take delivery of the first 737-8 aircraft in the second half of 2023 and the first 737-10s in early 2024. The airline is replacing its fleet of Airbus A320 aircraft with the Boeing 737 MAX models, which are more fuel efficient and generate lesser carbon emissions per seat. Meanwhile, the carrier is revamping 61 of its 737-800 aircraft with an investment of $20 million.
Zacks Rank & Key Picks
Alaska Air carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks within the broader Transportation sector are as follows:
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 31.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest have surged more than 47% in a year.
J.B. Hunt Transport Services (JBHT - Free Report) carries a Zacks Rank #2 (Buy). The company’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 10.2%.
Shares of J.B. Hunt have rallied more than 35% in a year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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