Alaska Air's (ALK) Traffic & Load Factor Increase in January

Alaska Air GroupALK reported impressive traffic figures for January 2019. Load factor (percentage of seats filled with passengers) improved as traffic growth exceeded capacity expansion. Consolidated traffic, measured in revenue passenger miles (RPMs), also increased 2.5% year over year to 4 billion.

On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 0.9% to 5.28 billion. As a result, consolidated load factor increased130 basis points year over year to 77.1%

Notably, the impressive traffic report comes close on the heels of Alaska Air Group's outperformance in the fourth quarter of 2018. Results were disclosed on Jan 24. Similar to the January report, the carrier's fourth-quarter results were aided by high passenger revenues owing to strong demand for air travel. Passenger revenues, accounting for a bulk (92.4%) of the top line, were up 6% on a year-over-year basis in the final quarter of 2018.

The earnings report apart, Alaska Air Group raised its quarterly dividend by 9% to 35 cents per share (annualized $1.40 per share). The first installment of the new dividend will be paid on Mar 7, 2019, to its shareholders of record as of Feb 19. This marks the company's sixth dividend hike since its initiation of quarterly dividends in 2013.

Following the upbea t earnings report and the dividend hike, shares of Alaska Air Group have gained 3.8% in the past 30 days.

One-Month Price Performance

Zacks Rank & Other Key Picks

Alaska Air currently carries a Zacks Rank #2 (Buy). A few other top-ranked airline stocks are SkyWest SKYW , Spirit Airlines SAVE and American Airlines AAL . While SkyWest sports a Zacks Rank #1 (Strong Buy), Spirit and American Airlines carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Shares of SkyWest, Spirit and American Airlines have gained 17.4%, 4.1% and 12.9%, respectively, in a month's time.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

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

Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report

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

American Airlines Group Inc. (AAL): Free Stock Analysis Report

SkyWest, Inc. (SKYW): 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


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More