Alaska Air Group, Inc. (ALK - Free Report) reported disappointing traffic statistics for November. Traffic, measured in revenue passenger miles (RPMs), slipped 1.2% to 4.39 billion.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 2.3% to 5.4 billion. With traffic declining and capacity increasing, load factor or percentage of seats filled by passengers deteriorated 290 basis points (bps) to 81.2%.
In the first 11 months of 2019, the carrier generated RPMs of 51.13 billion (up 1.9% year over year) and ASMs of 60.94 billion (up 1.8% year over year). With traffic growth outpacing capacity expansion, load factor inched up 10 basis points to 83.9%.
Apart from capacity overexpansion woes (load factor declined in October as well), the carrier is witnessing some cost pressure due to escalating non-fuel unit costs. Evidently, non-fuel unit costs (excluding special items) grew 2.9% in the first nine months of 2019. The same is projected to rise 0.5% year over year in the fourth quarter (against the previous expectation of 1.2% decline). For 2019, non-fuel unit costs are predicted to increase nearly 2.2%.
Zacks Rank & Key Picks
Alaska Air Group carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Allegiant Travel Company (ALGT - Free Report) , Ryanair Holdings plc (RYAAY - Free Report) and Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS - Free Report) . While Allegiant and Ryanair sport a Zacks Rank #1 (Strong Buy), ControladoraVuela carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Allegiant, Ryanair and ControladoraVuela have rallied more than 74%, 22% and 97%, respectively, so far this year.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Alaska Air Group, Inc. (ALK - Free Report) reported disappointing traffic statistics for November. Traffic, measured in revenue passenger miles (RPMs), slipped 1.2% to 4.39 billion.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 2.3% to 5.4 billion. With traffic declining and capacity increasing, load factor or percentage of seats filled by passengers deteriorated 290 basis points (bps) to 81.2%.
In the first 11 months of 2019, the carrier generated RPMs of 51.13 billion (up 1.9% year over year) and ASMs of 60.94 billion (up 1.8% year over year). With traffic growth outpacing capacity expansion, load factor inched up 10 basis points to 83.9%.
Apart from capacity overexpansion woes (load factor declined in October as well), the carrier is witnessing some cost pressure due to escalating non-fuel unit costs. Evidently, non-fuel unit costs (excluding special items) grew 2.9% in the first nine months of 2019. The same is projected to rise 0.5% year over year in the fourth quarter (against the previous expectation of 1.2% decline). For 2019, non-fuel unit costs are predicted to increase nearly 2.2%.
Zacks Rank & Key Picks
Alaska Air Group carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Allegiant Travel Company (ALGT - Free Report) , Ryanair Holdings plc (RYAAY - Free Report) and Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS - Free Report) . While Allegiant and Ryanair sport a Zacks Rank #1 (Strong Buy), ControladoraVuela carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Allegiant, Ryanair and ControladoraVuela have rallied more than 74%, 22% and 97%, respectively, so far this year.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on RYAAY - FREE
Get the latest research report on ALK - FREE
Get the latest research report on ALGT - FREE
Get the latest research report on VLRS - FREE