Alaska Air Group Posts November Traffic Data, View Revised
Zacks Investment Research | Dec 17, 2017 08:25PM ET
Alaska Air Group Inc. (NYSE:ALK) recently reported traffic for November. Traffic, measured in revenue passenger miles (RPMs), increased 9.2% to 4.39 billion. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 9.3% to 5.22 billion. However, the load factor or percentage of seats filled by passengers declined 10 basis points to 84.2% as capacity expansion outpaced traffic growth.
At the end of the first 11 months of 2017, Alaska Air Group generated RPMs of 47.83 billion (up 7.2% year over year) and ASMs of 56.60 billion (up 6.8% year over year). Load factor stood at 84.5% compared with 84.2% in the first 11 months of 2017.
Q4 & Full-Year Guidance Revised
The carrier has provided a revised outlook for fourth quarter and full-year 2017. It now expects capacity in the range of 15.87 billion-15.92 billion in the fourth quarter of 2017. The metric’s prior outlook was in the band of 15.95 billion-16 billion. Fourth-quarter cost per available seat mile (CASM) excluding fuel and special items is anticipated between 8.63 cents and 8.68 cents, higher than the previous view of 8.50 cents-8.55 cents, mainly due to costs associated with pay related deal inked with its pilots. Economic fuel cost for the fourth quarter remains unchanged at $2 per gallon.
For 2017, capacity is projected between 62.05 billion and 62.08 billion, lower than the earlier outlook of 62.13 billion-62.16 billion. CASM excluding fuel and special items is predicted to lie between 8.22 cents and 8.24 cents. Earlier forecast was in the range of 8.19 cents-8.21 cents. The estimate for 2017 economic fuel cost per gallon stands at $1.83, an increase from the prior expectation of $1.82.
Alaska Air Group, Inc. Price
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