Alaska Air's Strong Momentum Continues
After suffering severe margin erosion in 2017 and 2018, West Coast airline Alaska Air (NYSE: ALK) has gotten back on track in 2019. For the first nine months of the year, revenue per available seat mile (RASM) rose 4.1%. And while nonfuel unit costs increased 2.9% -- partly due to one-time factors and the timing of expenses -- Alaska's average fuel price fell 3.5%. As a result, adjusted pre-tax income surged 33% year over year, from $611 million to $811 million.
Alaska Air's revenue and earnings momentum is continuing in the fourth quarter, as evidenced by the carrier's recent investor update. That bodes well for its ability to continue rebuilding its profitability in 2020 and beyond.
Alaska Air has reported stellar profit growth in 2019. Image source: Alaska Airlines.
Source Fool.com
