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Alaska Air Group makes a push from Seattle and LA in 2015 as it moves toward 10% capacity growth

Analysis

Alaska Air Group is adding a solid mix of regional, transcontinental and international routes in 2015, which is one driver in its projected 10% capacity growth. Other elements of its ASM expansion include frequency additions in core markets and aircraft upgauge.

The company is adding eight new flights from its largest hub and headquarters in Seattle and five from its base in Los Angeles, with varying degrees of competition. Overall Alaska continues to add routes where it can leverage points of strength to broaden its network utility.

Alaska continues to battle unit revenue pressure, a trend sweeping much of the US domestic market place. But it is still delivering top line profits, recording margin expansion and expanding shareholder returns in 2015.

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