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Alaska Air Group's (ALK) January Load Factor View Bleak
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With coronavirus cases noticing a spike again in the United States, Alaska Air Group (ALK - Free Report) provided a bleak view for the current month’s load factor (% of seats filled with passengers). This Seattle, WA-based carrier anticipates load factor for January in the band 35-40% band. The expectation is worse than 43% recorded in December.
The January projection also compares unfavorably with the load factor estimate of 45% for the December quarter. This quarterly guidance for load factor is below the Zacks Consensus Estimate of 47.78%. Detailed results will be out on Jan 26, 2021.
Total revenues for the current month are expected to decline in the 60-65% band. In the fourth quarter, the top line is anticipated to plunge 64% from the year-ago reported figure. In December, total revenues slumped 67%. Revenue passengers, which tumbled 70% in the month, are likely to plummet in the 65-70% range during January. The metric is expected to drop 67% in the to-be-reported quarter.
Capacity (measured in available seat miles) is projected to contract 42% and roughly 35% in fourth-quarter 2020 and during January 2021, respectively. In December, capacity was down roughly 40% from the year-ago month’s reported figure as the carrier trimmed the same to match the tepid demand scenario. Notably, percentage changes for the 2021 metrics are based on a comparison with 2019 actual results.
Driven by factors like the increase in passengers carried and an uptick in demand for future travel, which hit highs in October despite the continued coronavirus-scarred scenario, cash burn for the fourth quarter improved to roughly $350 million from $399 million in the September quarter. Cash burn for January is expected in the $125-$150 million range due to anticipated downbeat demand.
Long-term (three-five years) expected earnings per share growth rate of FedEx, ArcBest and Herc Holdings is pegged at 12%, 9.8% and 12.6%, respectively
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Alaska Air Group's (ALK) January Load Factor View Bleak
With coronavirus cases noticing a spike again in the United States, Alaska Air Group (ALK - Free Report) provided a bleak view for the current month’s load factor (% of seats filled with passengers). This Seattle, WA-based carrier anticipates load factor for January in the band 35-40% band. The expectation is worse than 43% recorded in December.
The January projection also compares unfavorably with the load factor estimate of 45% for the December quarter. This quarterly guidance for load factor is below the Zacks Consensus Estimate of 47.78%. Detailed results will be out on Jan 26, 2021.
Total revenues for the current month are expected to decline in the 60-65% band. In the fourth quarter, the top line is anticipated to plunge 64% from the year-ago reported figure. In December, total revenues slumped 67%. Revenue passengers, which tumbled 70% in the month, are likely to plummet in the 65-70% range during January. The metric is expected to drop 67% in the to-be-reported quarter.
Capacity (measured in available seat miles) is projected to contract 42% and roughly 35% in fourth-quarter 2020 and during January 2021, respectively. In December, capacity was down roughly 40% from the year-ago month’s reported figure as the carrier trimmed the same to match the tepid demand scenario. Notably, percentage changes for the 2021 metrics are based on a comparison with 2019 actual results.
Driven by factors like the increase in passengers carried and an uptick in demand for future travel, which hit highs in October despite the continued coronavirus-scarred scenario, cash burn for the fourth quarter improved to roughly $350 million from $399 million in the September quarter. Cash burn for January is expected in the $125-$150 million range due to anticipated downbeat demand.
Zacks Rank & Stocks to Consider
Alaska Air Group currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Transportation sector are FedEx Corporation (FDX - Free Report) , ArcBest Corporation (ARCB - Free Report) and Herc Holdings (HRI - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term (three-five years) expected earnings per share growth rate of FedEx, ArcBest and Herc Holdings is pegged at 12%, 9.8% and 12.6%, respectively
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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