Alaska Airlines, the wholly owned subsidiary of Alaska Air Group, Inc. ( ALK ) is a holding company and has two principal subsidiaries: Alaska Airlines, Inc. and Horizon Air Industries, Inc. Both subsidiaries operate as airlines.
Recently, Alaska Air Group struck a five-year labour contract with its 3,400 flight attendants. The deal will allow the carrier to avoid work stoppages or strikes, thereby enhancing flight operations.
The company has also initiated new seasonal flights which will further boost traveling in popular holiday destinations. Moreover, declining fuel prices coupled with an improving cost structure will further add to the carrier's profits while moving ahead.
Currently, Alaska Airlines has a Zacks Rank #1 (Strong Buy), but that could definitely change following Alaska Airlines's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Alaska Airlines Limited beat on earnings. Our consensus earnings estimate called for EPS of $0.91/share, and the company reported EPS of $0.94 instead. Investors should note that these figures take out stock option expenses.
Revenue: Alaska Airlines Limited reported revenues of $1,306 million which is almost in line with the consensus estimate.
Key Stats to Note: Alaska Airlines reported 8% growth in passenger revenue in the reported quarter as compared with year-ago quarter while airline traffic, measured in revenue passenger miles, moved up 9.5% year over year.
Stock Price: Alaska Airlines shares were up almost 2.83% ahead of the report. Clearly, the initial reaction to the release is positive.
Check back later for our full write up on this Alaska Airlines earnings report later!
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