Alaska Air Group (ALK) Reports Increased Traffic in March

Alaska Air Group Inc.ALK reported its March traffic numbers on Apr 10. The carrier witnessed a 5.5% increase in consolidated traffic (measured in revenue passenger miles, RPMs). RPMs came in at 4.4 billion, up from 4.1 billion recorded in Mar 2016.

On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 5.7% to 5.1 billion. Meanwhile, the load factor or percentage of seats filled by passengers decreased to 85.4% from 85.6% recorded in Mar 2016, as capacity expansion outpaced traffic growth.

At the end of the first three months of 2017, Alaska Air Group generated RPMs of 11.7 billion (up 4.7% year over year) and ASMs of 14.4 billion (up 4.9% year over year). Load factor was 81.3% compared with 81.5% in the first three months of 2016.

Alaska Air recently unveiled a bullish long-term view on its Investor Day presentation. The carrier, which acquired Virgin America late last year, said that the integration process is progressing well with major milestones expected to be attained in 2018.

Price Performance

Shares of Alaska Air gained 26.42% in the last six months, outperforming the Zacks categorized Transportation-Airline industry's gain of 23.6% over the same period.

The impressive traffic report is a further positive for the stock.

Zacks Rank & Key Picks

Alaska Air currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader transportation sector are Gol Linhas Aereas Inteligentes GOL , Aegean Marine Petroleum Network ANW and Deutsche Lufthansa DLAKY . Gol Linhas and Aegean Marine Petroleum sport a Zacks Rank #1 (Strong Buy), while Deutsche Lufthansa carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Shares of Gol Linhas, Aegean Marine Petroleum and Deutsche Lufthansa gained over 125%, 27% and 25%, respectively, on a year-to-date basis.

Looking for Ideas with Even Greater Upside?

Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report

Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report

Alaska Air Group, Inc. (ALK): Free Stock Analysis Report

Aegean Marine Petroleum Network Inc. (ANW): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos