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Alaska Air Group's (ALK) Load Factor Declines in October
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Alaska Air Group, Inc. (ALK - Free Report) reported traffic statistics for October. Traffic, measured in revenue passenger miles (RPMs), increased 3.4% to 4.63 billion.
Also, on a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 3.6% to 5.53 billion. However, with capacity expansion outpacing traffic growth, load factor or percentage of seats filled by passengers contracted 10 basis points (bps) to 83.7%.
In the first 10 months of 2019, the carrier generated RPMs of 46.74 billion (up 2.2% year over year) and ASMs of 55.53 billion (up 1.7% year over year). With traffic growth outpacing capacity expansion, load factor increased 40 bps to 84.2%.
Although the carrier’s load factor declined in October, we expect solid travel demand to drive this key metric going forward. Evidently, strong air travel demand boosted passenger revenues (contributing more than 90% to the top line) by 8% in the third quarter. Additionally, total revenue per available seat mile (RASM: a key measure of unit revenues) increased 4.5% year over year in the period.
Shares of Allegiant, Controladora Vuela and Hawaiian Holdings have rallied more than 69%, 106% and 14%, respectively, so far this year.
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This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
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Alaska Air Group's (ALK) Load Factor Declines in October
Alaska Air Group, Inc. (ALK - Free Report) reported traffic statistics for October. Traffic, measured in revenue passenger miles (RPMs), increased 3.4% to 4.63 billion.
Also, on a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 3.6% to 5.53 billion. However, with capacity expansion outpacing traffic growth, load factor or percentage of seats filled by passengers contracted 10 basis points (bps) to 83.7%.
In the first 10 months of 2019, the carrier generated RPMs of 46.74 billion (up 2.2% year over year) and ASMs of 55.53 billion (up 1.7% year over year). With traffic growth outpacing capacity expansion, load factor increased 40 bps to 84.2%.
Alaska Air Group, Inc. Price
Alaska Air Group, Inc. price | Alaska Air Group, Inc. Quote
Although the carrier’s load factor declined in October, we expect solid travel demand to drive this key metric going forward. Evidently, strong air travel demand boosted passenger revenues (contributing more than 90% to the top line) by 8% in the third quarter. Additionally, total revenue per available seat mile (RASM: a key measure of unit revenues) increased 4.5% year over year in the period.
Zacks Rank & Key Picks
Alaska Air Group carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Allegiant Travel Company (ALGT - Free Report) , Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS - Free Report) and Hawaiian Holdings, Inc. (HA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Allegiant, Controladora Vuela and Hawaiian Holdings have rallied more than 69%, 106% and 14%, respectively, so far this year.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Download Free Report Now >>