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Alaska Air (ALK) Arm Adds Routes as Travel Demand Picks Up

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Alaska Air Group’s (ALK - Free Report) subsidiary — Alaska Airlines — has launched a daily nonstop service from Boise Airport (“BOI”) to Chicago O’Hare International Airport and Austin-Bergstrom International Airport.

Moreover, as part of the expansion program, the carrier has announced plans of adding two new routes from Boise to Pullman-Moscow Regional Airport (“PUW”) and Phoenix Sky Harbor International Airport (“PHX”). Commencing from Aug 17, 2021 Alaska Air will be connecting BOI to PUW. Flights on the route will operate five times a week. The aircraft used for this route will be Q400. Beginning Nov 19, Alaska Air will be connecting BOI to PHX with daily flights.  The aircraft used for this route will be Embraer E175. However, BOI to PHX service are set to end on Apr 18, 2022.

Also, coming this winter, Alaska Air will fly up to 30 daily nonstop departures out of Boise to 14 destinations.   

As more and more Americans are getting jabbed, air-travel demand (especially for leisure) is picking up sharply. We believe that the inauguration and expansion of new services by Alaska Air will help it recover from prolonged COVID-19 led crisis by attracting substantial traffic. As a result of the anticipated traffic swell, passenger revenues — accounting for bulk of the carrier’s top line — is likely to receive a boost.

Zacks Rank & Stocks to Consider

Alaska Air currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Transportation sector are Landstar System, Inc. (LSTR - Free Report) , Triton International Limited and Herc Holdings Inc. (HRI - Free Report) . Herc Holdings sports a Zacks Rank #1 (Strong Buy), while Triton and Landstar carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.

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