Alaska Air Group vs Delta in Seattle: Alaska defends a capacity challenge in 1Q2015

Alaska Air Group continues to hold its own as competitive capacity - largely from Delta Air Lines - increases in its markets. Alaska has had the capacity overhang for most of CY2014, but has managed to deliver solid financial results for the first nine months of the year.

Alaska Airlines has raised some eyebrows for its own capacity push from its largest hub and headquarters in Seattle, although for the moment the additions are not creating a huge drag on its performance there. But Alaska is bracing for a competitive capacity increase throughout its network during 1Q2015 that spans double digits, and will likely drag down its unit revenue performance in the short term.

As it continues to work through the new competitive dynamics ushered in by Delta in Seattle, Alaska also seems to be attempting to shore up revenues among its highest paying customers with a new first class fare structure to boost revenues in that fare category.