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Alaska Air Group Load Factor Dips in March, Q1 View Upbeat
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Alaska Air Group, Inc. (ALK - Free Report) reported traffic statistics for March. Traffic, measured in revenue passenger miles (RPMs), inched up 0.5% to 4.68 billion.
Also, on a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 1.3% to 5.56 billion. Meanwhile, load factor or percentage of seats filled by passengers dipped 70 basis points (bps) to 84.2% as traffic growth was outpaced by capacity expansion.
In the first three months of 2019, the carrier generated RPMs of 12.45 billion (up 0.4% year over year) and ASMs of 15.51 billion (up 0.2% year over year). Also, load factor improved 20 bps to 80.3%.
The company has raised its unit revenue guidance owing to a better-than-expected close-in pricing on trans-continental Californian flights. It now anticipates revenue per ASM (RASM) in the range of 12.08-12.10 cents, reflecting an increase of 2.1%. The previous view was in the band of 11.97-12.07 cents.
Alaska Air Group’s non-fuel unit cost guidance for the quarter has also improved on account of solid cost control measures among other factors. Cost per ASM excluding fuel and special items is now projected between 9.06 cents and 9.08 cents (representing 3% increase year over year) compared with 9.16-9.21 cents expected earlier.
Additionally, fuel costs are now projected to dip 0.5% year over year to $2.13 per gallon (past view: $2.14). First-quarter effective tax rate is expected to be 25% while the same for the full year is envisioned at 26%.
Shares of Swire Pacific and Azul have rallied more than 21%, each in the past six months while the Delta stock has gained more than 11%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
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Alaska Air Group Load Factor Dips in March, Q1 View Upbeat
Alaska Air Group, Inc. (ALK - Free Report) reported traffic statistics for March. Traffic, measured in revenue passenger miles (RPMs), inched up 0.5% to 4.68 billion.
Also, on a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 1.3% to 5.56 billion. Meanwhile, load factor or percentage of seats filled by passengers dipped 70 basis points (bps) to 84.2% as traffic growth was outpaced by capacity expansion.
In the first three months of 2019, the carrier generated RPMs of 12.45 billion (up 0.4% year over year) and ASMs of 15.51 billion (up 0.2% year over year). Also, load factor improved 20 bps to 80.3%.
Alaska Air Group, Inc. Price
Alaska Air Group, Inc. Price | Alaska Air Group, Inc. Quote
Bullish Q1 View
The company has raised its unit revenue guidance owing to a better-than-expected close-in pricing on trans-continental Californian flights. It now anticipates revenue per ASM (RASM) in the range of 12.08-12.10 cents, reflecting an increase of 2.1%. The previous view was in the band of 11.97-12.07 cents.
Alaska Air Group’s non-fuel unit cost guidance for the quarter has also improved on account of solid cost control measures among other factors. Cost per ASM excluding fuel and special items is now projected between 9.06 cents and 9.08 cents (representing 3% increase year over year) compared with 9.16-9.21 cents expected earlier.
Additionally, fuel costs are now projected to dip 0.5% year over year to $2.13 per gallon (past view: $2.14). First-quarter effective tax rate is expected to be 25% while the same for the full year is envisioned at 26%.
Zacks Rank & Key Picks
Alaska Air Group carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Swire Pacific Ltd. (SWRAY - Free Report) , Azul (AZUL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) . While Swire Pacific sports a Zacks Rank #1 (Strong Buy), Azul and Delta carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Swire Pacific and Azul have rallied more than 21%, each in the past six months while the Delta stock has gained more than 11%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>