For a while, all a lot of people could associate Alaska Airlines (ALK) with is the catastrophic flight that a malfunctioning Boeing (BA) airplane gave it. But there is more to Alaska Airlines than faulty Boeings, and it showed off as much in recent news. News that was sufficient to send shares up nearly 14% in Tuesday afternoon’s trading.
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Alaska Airlines announced that it was planning to launch a set of new nonstop flights to Japan and South Korea as part of its post-merger life. Back in September, Alaska Airlines merged with Hawaiian Airlines, and that gave Alaska access to a set of new wide-body planes, perfect for trans-Pacific flights. The flights will launch from Seattle, noted the report, and is part of a larger overall push to move profits to $1 billion by the end of 2027.
Further, Alaska Airlines is set to offer a new credit card geared toward the high-end traveler. Teaming up with Bank of America (BAC), the card will give Alaska Airlines access to a new revenue stream that targets passengers who are not even flying at the time.
Upgraded Planes and New Counters
The news did not stop there for Alaska, either, as it is also looking into improving the flying experience with new seating on some of those new planes. For those customers willing to pay extra for a more comfortable flight, that could be another source of revenue and push Alaska closer to that $1 billion goal.
And with Hawaiian Airlines and Alaska Airlines now sharing their first check-in counter at Harvey Milk Terminal 1, the new post-merger environment is about as complete as it gets. With the shared check-in counter, guests will get a smoother overall experience, which is, of course, valuable to ensure that customers come back and fly with Alaska Airlines another time.
Is Alaska Airlines a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ALK stock based on 10 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 72.5% rally in its share price over the past year, the average ALK price target of $65.80 per share implies 6.94% upside potential.
