Alaska Air Group’s (ALK Quick QuoteALK - Free Report) subsidiary, Alaska Airlines, announced the acceleration of its fleet growth by exercising options on 12 Boeing 737-9 aircraft earlier than planned. The aircraft are expected to be delivered between 2023 and 2024. As vaccinations increase and countries reopen their borders to vaccinated travelers, the move is prudent.

With the conversion of the 12 aircraft, Alaska Airlines’ firm order for Boeing 737-9 planes totals 93. Five of these aircraft are currently in service. The 737-9 jets consist of 16 first class seats and 24 premium class seats, and can carry 178 guests.

Back in December 2020, Alaska Airlines had announced a restructured agreement with Boeing (BA Quick QuoteBA - Free Report) to acquire 68 737-9 aircraft between 2021 and 2024, including options for 52 aircraft to be delivered between 2023 and 2026. Earlier in May 2021, the carrier had exercised options for 13 aircraft. The airline plans to add 25 options to backfill the ones that have already been exercised.

Alaska Air Group, Inc. Price

Alaska Air Group, Inc. price | Alaska Air Group, Inc. Quote

Last month, Alaska Air reported second-quarter 2021 results, wherein it incurred narrower-than-expected loss. Operating revenues skyrocketed more than 200% year over year, reflecting recovery in air-travel demand from the coronavirus-induced slump. Revenues also soared 91.6% sequentially.

Both Alaska Air and Boeing carry a Zacks Rank #3 (Hold).

Key Picks

Some better-ranked stocks in the airline space are Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS Quick QuoteVLRS - Free Report) and SkyWest, Inc. (SKYW Quick QuoteSKYW - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Controladora Vuela and SkyWest have rallied more than 100% and 38% in a year’s time, respectively.