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Alaska Airlines Offers Customers Mileage Plan Promotions

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In a customer-friendly initiative, Alaska Air Group’s (ALK - Free Report) subsidiary Alaska Airlines announced three new promotions that customers and Mileage Plan members can enjoy.

Apart from guaranteeing 2020 elite status through 2021, the airline is extending a 50% bonus of elite qualifying miles for flights taken through the end of this year.

For the first time, Alaska Airlines Visa cardholders have the chance to earn elite qualifying miles. They also have the option to earn 2,500 miles for every $5,000 spent on purchases from Jun 1 through Sep 30, 2020. The maximum limit is 10,000 elite qualifying miles for a single cardholder. Alaska Airlines Visa consumer cardholders can earn two miles for every dollar spent, up to $1,500, for restaurant and related purchases, including delivery services from Jun 1 through Jul 31, 2020.

Price Performance

Shares of Alaska Air Group, which carries a Zacks Rank #3 (Hold), have plunged more than 43% since the beginning of February due to coronavirus-led travel demand woes.


 

With easing travel restrictions, U.S. airlines have been seeing improvements in demand over the past few weeks. To take advantage of the situation, Alaska Air Group’s peers like United Airlines (UAL - Free Report) and Delta Air Lines (DAL - Free Report) plan to increase capacity. United Airlines, carrying a Zacks Rank #3, will be increasing trans-Atlantic service from Washington, D.C. and San Francisco to some European cities, starting next month. Additionally, the carrier will resume flights to Tokyo-Haneda, Hong Kong, Singapore and Seoul. It will also boost capacity across Latin America and the Caribbean.

Last month, Delta’s CEO Edward Bastian stated that he hopes to add around 200 flights in June and another 200 or 300 flights in July, amid signs of improvement in domestic travel demand. Delta carries a Zacks Rank #3.

Alaska Air Group is yet to announce any such flight expansion measures.

A Key Pick

A better-ranked stock in the same space is Ryanair Holdings (RYAAY - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ryanair has an impressive earnings history having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 62.7%.
 
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