Alaska Airlines keeps 2Q2014 profits steady as new realities with Delta in Seattle take full effect

Alaska Air Group seems to be settling into a new co-existence with Delta in Seattle. Delta has been transforming Seattle into its Pacific gateway, resulting in the major network airline increasing competition with Alaska to push feed into its long-haul markets.

Even with Delta's encroachment, Alaska recorded strong top-line results in 2Q2014 and continues to deliver a consistent performance in important metrics as its return on invested capital reached 16% for the 12M ending in Jun-2014.

Alaska will no doubt continue to feel some short-term pressure until the dynamics in Seattle stabilise, triggering scrutiny over how it will sustain its long-standing and favourable financial performance over the long term.