Wednesday, February 12, 2014

Seeking Alpha: Alaska Air Looks To Withstand Healthier Rivals

The great story that is Alaska Air Group (ALK) has continued to roll on, with the stock racking up almost 60% gains over the past year. What makes Alaska Air special among the airlines isn't really a big mystery anymore - the company has limited itself to a somewhat narrow geographic focus, established a low cost base, and then leveraged good customer satisfaction into strong market share, good profitability, and an uncommonly strong balance sheet.

If there is a problem with top performers, it is in figuring out what more they can do to excel. To be sure, Delta (DAL) is putting some pressure on Alaska Air, as are JetBlue (JBLU) and Virgin America. Alaska Air has the option to expand its service into incremental markets, and that should be a positive for growth. These shares remain undervalued by conventional industry metrics, though, and I don't think the ride is going to be over soon.

Read more here:
Alaska Air Looks To Withstand Healthier Rivals

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