Alaska Airlines, the wholly owned subsidiary of Alaska Air Group ALK, has been making constant efforts to expand further in a bid to boost revenues and improve customer satisfaction. To that end, the company, of late, has been on a route addition spree. The latest move in this direction came with the Seattle-based carrier introducing two new routes connecting Los Angeles to San Jose and Liberia.
The carrier stated that it will offer eight flights per week on the two new routes. Costa Rica, a favorite tourist spot, is the first international destination for the carrier in 24 years. We remind investors that in 1991, the carrier had launched seasonal service to Magadan, Russia. Alaska Airlines stated in its press release that following the latest expansion initiative, it is now offering up to 80 peak season departures on a weekly basis from Southern California to Latin America.
While the flights connecting Los Angeles-San Jose will operate on Mondays, Wednesdays, Fridays and Saturdays, the Los Angeles-Liberia service will take to the skies on Tuesdays, Thursdays, Saturdays and Sundays. Alaska Airlines is utilizing the fuel-efficient, next generation 737-800 aircraft of The Boeing Company BA on these routes. The aircraft is equipped with all modern facilities to enhance the flying experience of travelers.
The announcement of the new routes comes close on the heels of the company reporting higher-than-expected earnings and revenues in the third quarter of 2015. Results were aided by low fuel costs. The carrier is making huge savings, thanks to low fuel costs. In such a favorable backdrop, the plan to introduce new routes is a prudent move to bolster passenger revenues.
Zacks Rank
Alaska Air Group currently carries a Zacks Rank #3 (Hold). Better-ranked airline stocks include Virgin America VA and Ryanair Holdings plc RYAAY. Both the stocks hold a Zacks Rank #2 (Buy).
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