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Alaska Air (ALK) Proposes Plans to Expand Footprint to Belize

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Alaska Air Group, Inc. (ALK - Free Report) announced plans for service expansion as air-travel demand (especially for leisure), which was dampened by the coronavirus crisis, improves gradually. Starting this November, the airline will start operating seasonal flights to Belize City from two of the airline’s west coast hubs (Los Angeles and Seattle). Belize, a favorite tourist spot, will be the fourth country after Canada, Mexico and Costa Rica, that Alaska Air will fly to from Los Angeles and Seattle.

As part of this expansion program, Alaska Air will add two new routes to the Central American country of Belize. The airline will connect Los Angeles International Airport (LAX) and Seattle-Tacoma International Airport (SEA) with Philip S.W. Goldson International Airport (BZE). From LAX, new service to BZE (four times a week) will start from Nov 19, 2021 and end on May 23, 2022. The reverse journey (also four times a week) will commence from Nov 20 and terminate on May 24 next year. From SEA, new service to BZE (twice a week) will start from Nov 19 and end on May 21, 2022. The reverse journey (also twice a week) will commence from Nov 20 and terminate on May 22, next year. While fares between Los Angeles and Belize City start at $199, the same between Seattle and Belize City begins at $249.

We believe that the launch of new service to Belize City during the holiday season will not only attract travellers but also recover the carrier from prolonged COVID-19 led crisis. As a result of the anticipated traffic swell, passenger revenues — accounting for bulk of the carrier’s top line — is likely to receive a boost.

Zacks Rank & Stocks to Consider

Alaska Air currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Transportation sector include Landstar System, Inc. (LSTR - Free Report) , Triton International Limited (TRTN - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Herc Holdings and Landstar sport a Zacks Rank #1 (Strong Buy), while Triton carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.

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