Alaska trumpets shareholder returns while easing concerns over its capacity growth

Typically low-key Alaska Air Group has opted to aggressively promote its plans to issue a healthy USD0.20 quarterly dividend that supports a pledge by the company to return roughly USD325 million to shareholders between 2013 and 2014. Alaska's impressive financial performance has largely been undervalued by the financial community at large as some of the carrier's growth targets may have spooked would-be investors that view capacity discipline as a key driver in the long-term viability of US carriers in the maturing North American market place.

At the same time it revealed its shareholder reward package, Alaska's management also moved to allay concerns about its proposed 4% to 8% annual growth rate during the next few years, explaining moves it is making in Hawaii and the US transcontinental market to improve its unit revenue performance, which executives admit have lagged the industry average for the last two quarters.