2024-05-23 06:34:04 ET
Summary
- Alaska Air Group is experiencing a strong recovery with stable consumer demand and effective cost management.
- The potential acquisition of Hawaiian Airlines could enhance ALK's market presence and support long-term growth.
- We’ve increased revenue forecast for FY24, but slightly lowered it for FY25 due to expected airplane delivery delays.
- Crack spreads are decreasing, creating strong bottom-line support for ALK. However, hiring paces are higher than expected and we’ve lowered our EBITDA forecast.
- We’re raising the target share price to $54 and set the rating at HOLD with a positive outlook.
Investment thesis
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For further details see:
Alaska Air Group: Strategic Adjustments And Resilient Performance Amid Industry Challenges