Forecast Of The Day: Alaska Airlines’ Average Occupancy Rate

+31.39%
Upside
62.17
Market
81.68
Trefis
ALK: Alaska Air logo
ALK
Alaska Air

What?

Trefis expects Alaska Airlines (NYSE:ALK) Average Occupancy Rate to increase from around 55% in 2020 to about 67% in 2021 and to over 80% by 2022. Occupancy rates are defined as the percentage of seats occupied by revenue paying passengers in a flight.

Why?

While demand took a sharp hit in 2020 due to Covid-19, things are likely to get better over 2021 and 2022, as over 50% of U.S. adults are now vaccinated.

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So What?

Alaska Airlines’ stock has rallied by about 17% year-to-date, and we think it has room for further gains as the recovery gathers pace. We value the stock at about $66 per share, ahead of the $58 market price.

See Our Complete Analysis For Alaska Airlines

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