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...

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