Alaska Airlines To Offer Hawaii-Bound Travelers Covid-19 Tests

Alaska Air announced on Wednesday that it will now offer pre-travel rapid COVID-19 tests to travelers from Seattle city flying to the Hawaiian Islands. The air carrier has followed the footsteps of Hawaiian Airlines and United Airlines who have recently announced drive-through COVID-19 test programs for passengers flying to Hawaii.

Alaska Air (ALK) has partnered with Carbon Health for the rapid COVID-19 testing program where customers will get their test results within 2 hours at a discounted price of $135. The health care provider will begin testing from October 12 at its pop-up clinic located downtown Seattle.

Alaska Air plans to expand this service across Portland, San Jose and San Diageo cities, from where it will start nonstop service to Hawaii from November 1. Moreover, it will begin services from Anchorage, Alaska, and Los Angeles on November 20. The company’s COVID-19 test partner is planning to open pop-up and full-service clinics in these cities over the next few weeks. (See ALK stock analysis on TipRanks).

The rapid COVID-19 testing program will make it easier for passengers to travel to Hawaii that has mandatory 14-day quarantine requirements upon arrival. Local government rules, require passengers to test negative for COVID-19 within 72 hours before their final departure to Hawaii.

On Sept. 30, Raymond James analyst Savanthi Syth raised the stock’s price target to $50 (36.5% upside potential) from $43 and reiterated a Buy rating citing the company’s compelling risk/reward scenario. Syth believes that Alaska Air’s partnership with American Airlines and upcoming oneworld membership will boost its revenues over the long-run.

Currently, the Street is cautiously optimistic on the stock. The Moderate Buy analyst consensus is based on 4 Buys and 4 Holds. With shares down nearly 46% year-to-date, the average analyst price target of $47 implies upside potential of 28.3% from current levels.