1 Airline Keeps Flying Above Pandemic Turbulence
In recent weeks, many major U.S. airlines have reported losses for the fourth quarter of 2021. By contrast, Alaska Air (NYSE: ALK) posted its second consecutive quarterly profit, thanks to its favorable cost structure and rebounding demand.
The impact of the omicron variant on demand and staffing will push Alaska back into the red this quarter. Nevertheless, the West Coast airline remains on track to surpass its pre-pandemic earnings within a couple of years. That makes Alaska Air stock a compelling investment opportunity.
Alaska Air's revenue more than doubled year over year to $1.9 billion last quarter. This represented a 15% decrease compared to the fourth quarter of 2019, beating management's guidance for a 16% to 19% decline. Unit revenue was roughly in line with Q4 2019 levels, as the airline also reduced capacity by about 15% over the same period.
Source Fool.com
