Alaska Air Earnings: Profit Growth Accelerates
Alaska Air (NYSE: ALK) was one of the most profitable airlines in the world prior to its late-2016 acquisition of smaller rival Virgin America. However, in the two years following the merger, the company's profitability has plunged.
Over the past year, the Alaska Airlines parent has been working to improve its pre-tax margin to a target range of 13% to 15%. It hopes to do so by capturing merger synergies and implementing new ancillary revenue initiatives that should boost revenue per available seat mile (RASM). The company's second-quarter earnings report -- released on Thursday afternoon -- showed that Alaska Air is making progress toward its goals.
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