Alaska Air Can Co-Exist With Delta but Expectations May Be Lowered

As Delta Air Lines is building a trans-Pacific hub in Seattle, which is Alaska Air's principal hub, TheStreet airlines reporter Ted Reed says the two can co-exist. However, Reed calls Delta the most successful airline in the United States right now and notes that it's consistently adding flights and gates. Delta said last month that by summer 2015 it will have 120 daily peak-day departures to 35 destinations, up from 80 peak-day departures to 25 destinations currently. With that in mind, Reed says expectations for Alaska Air, whose shares have risen about 55% this year, may have to be lowered. Reed also explains the disparity in analyst coverage on the stock, which is mostly negative with the exception of one analyst who has an outperform rating on Alaska Air.

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