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...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|