Alaska Air Group maintains Seattle market share while hinting at reduced 2016 capacity growth

Although Alaska Airlines continued to post negative passenger unit revenue growth in 2Q2015, it is narrowing the gap with the US industry average. Seattle is one of the markets where industry capacity has been growing over the past two years as Delta Air Lines has made an aggressive push from the airport.

Alaska has responded by taking steps to preserve its market share in Seattle, and concludes that its position at its largest hub for YE2015 remains unchanged from YE2012. The airline has sustained its share by fortifying Seattle with additional frequencies in some markets, and new route additions.

The airline is facing some pockets of capacity pressure in addition to its planned 10% increase in supply during 2015. As it looks to 2016, it seems that Alaska has refined its outlook, and is examining growth targets below its 2015 expansion.