Why Alaska Air Group Stock Slipped This Week

Group 1: Company Performance - Alaska Air Group's stock fell as much as 13.7% this week, now down around 30% from recent highs earlier this year [1] - Total revenue grew 13% year over year to $11.7 billion, with premium and first-class cabin revenue increasing by 10% in the fourth quarter [5] - The company plans to grow its flight capacity by 2%-3% in 2025 compared to 2024, depending on Boeing deliveries [6] Group 2: Industry Outlook - Delta Air Lines forecasted a revenue slowdown for Q1 2025, reducing guidance from 7%-9% to 3%-4% due to falling corporate confidence and consumer trends [3] - Economic downturns can significantly impact the airline sector's profitability, leading to concerns about earnings power [2][3] - Most airline stocks, including Alaska Air Group, experienced a sell-off following Delta's announcement [4] Group 3: Strategic Positioning - Alaska Air Group is closing in on 10% market share in the U.S. when combined with Hawaiian Airlines, indicating strong market positioning [6] - The acquisition of Hawaiian Airlines is part of Alaska's strategy to build a premium airline presence on the West Coast and Pacific Ocean [5]