Alaska Air Group, Inc. (ALK - Free Report) reported traffic statistics for April. Traffic, measured in revenue passenger miles (RPMs), inched up 0.4% to 4.62 billion.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) dipped 0.1% to 5.45 billion. Meanwhile, load factor or percentage of seats filled by passengers improved 40 basis points (bps) to 84.7% as traffic increased while capacity declined.
In the first four months of 2019, the carrier generated RPMs of 17.07 billion (up 0.4% year over year) and ASMs of 20.96 billion (up 0.1% year over year). Also, load factor rose 20 bps to 81.4%.
Expanded Partnership With EL AL Israel Airlines
Alaska Air Group’s subsidiary Alaska Airlines has extended its partnership with EL AL Israel Airlines to incorporate a reciprocal frequent flyer agreement. Earlier this year, the carrier entered into a codeshare contract with EL AL by virtue of which, the latter will place its "LY" code on various Alaska Airlines "AS" flights in the United States.
Flights from Newark and Los Angeles, falling under this codeshare agreement, have been available for sale May 5 onward. The expanded codeshare deal will carry the "LY" tag on Alaska Airlines flights from San Francisco as well. Following regulatory approval, the agreement will also cover flights to various points in Mexico. The collaboration offers smoother connectivity for Alaska Airlines’ passengers, who can travel to and from North America and Israel on EL AL as well, simultaneously earning miles.
Zacks Rank & Key Picks
Alaska Air Group carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are SkyWest, Inc. (SKYW - Free Report) , GATX Corporation (GATX - Free Report) and Trinity Industries, Inc. (TRN - Free Report) . While SkyWest sports a Zacks Rank #1 (Strong Buy), GATX and Trinity carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SkyWest and GATX have gained more than 5% and 4%, respectively, in a year’s time. Meanwhile, the Trinity stock boasts an impressive earnings history, having outperformed the Zacks Consensus Estimate in three of the last four quarters, the average beat being 10.9%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>