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Alaska Air Group (NYSE:ALK) provided a business update to investors. Notably, the carrier said that demand looks to be moving towards a more normal international/domestic mix so far in 2024.
Alaska Air (ALK) pointed to modest improvement in West Coast business travel and said it expects leisure travel to remain robust. Due to those factors, the company has confidence that 2024’s domestic demand backdrop will remain strong.
“This year we have taken care to shape our capacity outlook to optimize our network and prioritize margins and profitability which, along with the capacity we lost due to the temporary grounding of our 737 Max 9 fleet, will likely result in growth below the lower end of our long-term target range of 4% to 8%. However, the entire industry is growing domestic capacity at a much slower rate, and we expect the competitive intensity across our network to reduce further compared to 2023.”
ALK said delivering a premium brand experience to customers is one of its top priorities for the year. Premium revenue now represents 32% of ALK’s total revenue, which is above the 28% level from before the pandemic.
Looking at the long term, Alaska Air (ALK) highlighted that it has a healthy and flexible order book that is anticipated to allow it to continue to tune future growth appropriately given the economic and demand backdrop.
Shares of Alaska Air Group (ALK) edged 0.49% higher in premarket trading to $43.20.
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