Futuristics
Long/short equity, biotech, healthcare, small-cap

Alaska Air: Can This Stock Survive The Stiff Competition?

Alaska Air Group (NYSE:ALK) declined by almost 23% in the last two months, although the stock is still providing a year-to-date return of around 18%. Investors are concerned about rising competition from low-cost carriers in the U.S. Read on for an analysis of the competitive position and fundamental factors that will drive Alaska Air Group's, or Alaska's, stocks in the future.

Rising competition level

Alaska experienced a decline in its Passenger Revenue per Available Seat Mile of 3.3% year-over-year in May 2013. This gives a clear indication that the company is facing rising pressure from competitors. Low cost airlines like JetBlue Airways (NASDAQ:JBLU), Delta Air Lines (NYSE:DAL) and Virgin America are adding their capacity...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details