Alaska Air Group Inc. (NYSE:ALK) posted impressive traffic figures for the month of May. Traffic – measured in revenue passenger miles (RPMs) – increased 7.6% to 4.5 billion from 4.2 billion recorded a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 5.9% to 5.2 billion. Meanwhile, the load factor or percentage of seats filled by passengers increased to 86.5% from 85.1%, recorded in May 2016, as traffic growth exceeded capacity expansion.
At the end of the first five months of 2017, Alaska Air Group generated RPMs of 20.5 billion (up 5.9% year over year) and ASMs of 24.6 billion (up 5.1% year over year). Load factor stood at 83.5%, compared with 82.8% in the first five months last year.
Alaska Air Group’s wholly owned subsidiary Alaska Airlines has begun non-stop flights connecting Philadelphia and Portland, OR, in order to cope with the passenger rush during summer. The flights have been operating on a daily basis from May 22 and will continue till Aug 26, 2017.
Alaska Airlines was also in news recently, when it announced a frequent flyer partnership with the European carrier Finnair.This customer friendly move aims to provide the program members at both Alaska and Finnair, with the opportunity to earn miles/points on flights of either carrier.
Zacks Rank & Key Picks
Alaska Air Group currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space are Air France-KLM SA (OTC:AFLYY) , Deutsche Lufthansa (DE:LHAG) AG (OTC:DLAKY) and Hawaiian Holdings, Inc. (NASDAQ:HA) . All sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Air France-KLM, Deutsche Lufthansa and Hawaiian Holdings gained over 58%, 37% and 16% over a period of three months.
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Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
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