This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Alaska Analysts on Delta Intrusion: 'What, Us Worry?'

Stocks in this article: ALKDAL

Seattle ( TheStreet) --  Delta (DAL), the world's third-biggest airline, is intruding on Alaska's (ALK) Seattle hub, but so far neither Alaska nor investors nor analysts seem particularly worried.

Rather, analysts have been ratcheting up expectations for Alaska, one of four airlines that will report earnings on Thursday. Alaska split its stock two-for-one on July 10.

Before Delta began planning its Seattle buildup in 2013, its executives talked with Alaska about changes in the two carrier's code-share agreement. Those talks did not go well.

Boeing 747 Fades Out But Lufthansa Flies a Fresh One to JFK

Five Worst U.S. Airlines of All Time

United Should Close Dulles Hub, Analyst Says, as He Cuts Rating

Sources familiar with the negotiations between Alaska and Delta said that Delta didn't  want Alaska to code share with Delta competitors in international markets.

Delta's intent was to secure more favorable pricing for seats on Alaska flights and to assure seats were available for its code-share passengers, said one source, who added: "Delta wanted favorable pricing and better access to seats including group seats."

Delta argued that the sale of code-share seats to its international competitors drove up the prorated price it paid for seats.

Alaska argued that, even if it wanted to, it could not alter code-share arrangements with existing partners. Delta is believed to have argued that Alaska could terminate those arrangements early.

Now, the sources said, Alaska is awaiting the end of its code-share with Delta in about two years. But in the meantime, on flights where the carriers do not compete, both continue to benefit from the arrangement

"We remain open to finding ways to work with our long-time partner Delta," said Alaska spokeswoman Bobbie Egan. She declined to comment on the negotiations. Delta declined to comment.

Delta, which began the year with 38 daily Seattle departures, now has 95 and shows no signs of slowing down.

For its part, Alaska remains defiant, as well as profitable. Analysts have high expectations for Alaska, which benefits from its domestic focus at a time when international traffic -- particularly Delta's international traffic -- shows signs of weakening.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs