Why Alaska Air Group Stock Slipped This Week
Shares of Alaska Air Group (NYSE: ALK) fell as much as 13.7% this week, according to data from S&P Global Market Intelligence. The fifth-largest airline in the U.S. and recent acquirer of Hawaiian Airlines slipped after other airlines reduced guidance for the first quarter due to macroeconomic factors. Wall Street is worried about a slowdown in consumer spending that could affect airlines' earnings power.
Alaska Air Group stock is now down around 30% from recent highs set earlier this year.
Owning and leasing planes is expensive, along with paying flight attendants and pilots. To make a profit, an airline must have consistently full planes, with customers willing to pay for tickets that go above its operating costs, which is typically a thin line, leading to slim profit margins for these companies.
Source Fool.com
