We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alaska Air Expects August Cash Burn to Improve From July
Read MoreHide Full Article
Alaska Air Group (ALK - Free Report) , which like other airlines has been hit hard by the coronavirus pandemic, anticipates its revenues for August to decline in the 70-75% band on a year-over-year basis due to weak demand for air travel. Notably, revenues shrank 73% and 75% in July and June, respectively.
Revenue passengers for August are also predicted to plunge between 70% and 75% from August 2019 readings. Notably, the metric tumbled 74% and 79% in July and June, respectively. To combat the weak demand scenario, Alaska Air is trimming capacity (measured in available seat miles or ASMs). ASMs for August are projected to be down roughly 50% from the year-ago levels. Constant capacity cuts had resulted in ASMs declining 63% and 68% in July and June, respectively.
Another key metric, load factor (% of seats filled by passengers) is projected to plummet in the 40-45% band on a year-over-year basis. Load factor contracted 54% and 52% in July and June, respectively.
On a brighter note, owing to gradually improving passenger demand, ticket sales at Alaska Air in August are likely to be higher than the number in July. Courtesy of higher ticket sales, cash burn is projected to improve to less than $125 million in the current month from approximately $175 million last month
Zacks Rank & Key Picks
Alaska Air carries a Zacks Rank #4 (Sell), presently.
Some better-ranked stocks in the Zacks Transportation sector are United Parcel Service (UPS - Free Report) , Canadian Pacific Railway (CP - Free Report) and Werner Enterprises (WERN - Free Report) . While UPS sports a Zacks Rank #1 (Strong Buy), Canadian Pacific Railway and Werner Enterprises carry a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
UPS’ bottom line surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 25.2%.
Earnings of Canadian Pacific surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 6.5%.
Werner Enterprises’ bottom line surpassed the Zacks Consensus Estimate in three of the last four quarters (missing estimates on the remaining occasion). The average beat is 19%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.
This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.
Image: Bigstock
Alaska Air Expects August Cash Burn to Improve From July
Alaska Air Group (ALK - Free Report) , which like other airlines has been hit hard by the coronavirus pandemic, anticipates its revenues for August to decline in the 70-75% band on a year-over-year basis due to weak demand for air travel. Notably, revenues shrank 73% and 75% in July and June, respectively.
Revenue passengers for August are also predicted to plunge between 70% and 75% from August 2019 readings. Notably, the metric tumbled 74% and 79% in July and June, respectively. To combat the weak demand scenario, Alaska Air is trimming capacity (measured in available seat miles or ASMs). ASMs for August are projected to be down roughly 50% from the year-ago levels. Constant capacity cuts had resulted in ASMs declining 63% and 68% in July and June, respectively.
Another key metric, load factor (% of seats filled by passengers) is projected to plummet in the 40-45% band on a year-over-year basis. Load factor contracted 54% and 52% in July and June, respectively.
On a brighter note, owing to gradually improving passenger demand, ticket sales at Alaska Air in August are likely to be higher than the number in July. Courtesy of higher ticket sales, cash burn is projected to improve to less than $125 million in the current month from approximately $175 million last month
Zacks Rank & Key Picks
Alaska Air carries a Zacks Rank #4 (Sell), presently.
Some better-ranked stocks in the Zacks Transportation sector are United Parcel Service (UPS - Free Report) , Canadian Pacific Railway (CP - Free Report) and Werner Enterprises (WERN - Free Report) . While UPS sports a Zacks Rank #1 (Strong Buy), Canadian Pacific Railway and Werner Enterprises carry a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
UPS’ bottom line surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 25.2%.
Earnings of Canadian Pacific surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 6.5%.
Werner Enterprises’ bottom line surpassed the Zacks Consensus Estimate in three of the last four quarters (missing estimates on the remaining occasion). The average beat is 19%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.
This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.
See their latest picks free >>