Alaska Air gains after Raymond James turns bullish on the second-half outlook

[Alaska Airlines Boeing 737-800 airplane]
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Alaska Air Group (NYSE:ALK [https://seekingalpha.com/symbol/ALK]) traded higher in early action on Monday after Raymond James upgraded the airline stock to an Outperform rating after having it set at Market Perform.

Analyst Savanthi Syth said current demand and competitive capacity trends increase the conviction in the firm's earnings forecasts on Alaska Air Group (NYSE:ALK [https://seekingalpha.com/symbol/ALK]), as well as the attractiveness of the risk-reward profile.

"While remaining concerned about the increased complexity of the business model, particularly the widebody aircraft exposure, we have gained a greater appreciation of Alaska’s measured approach to taking on this risk," updated Syth.

Syth thinks the outcome at Spirit Airlines (OTC:SAVEQ [https://seekingalpha.com/symbol/SAVEQ]) will be an important development for the U.S. airline industry, noting that Alaska (ALK [https://seekingalpha.com/symbol/ALK]) is already a beneficiary of the struggles at Spirit. "While competitive trends are largely benign across most U.S. airlines, it is particularly attractive at Alaska with competitive seats in its markets scheduled to be (2)/(3)% y/y in 3Q/4Q25 vs. 0/2% in 1Q/2Q25," highlighted Syth.

Shares of Alaska Air Group (ALK [https://seekingalpha.com/symbol/ALK]) moved 1.2% higher premarket on Monday to $60.20 after gaining 8.3% on Friday. The 52-week high for the airline stock is $78.08.

MORE ON ALASKA AIR

* Alaska Air Group, Inc. 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4804080-alaska-air-group-inc-2025-q2-results-earnings-call-presentation]
* Alaska Air Group, Inc. (ALK) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4804078-alaska-air-group-inc-alk-q2-2025-earnings-call-transcript]
* Alaska Air Group: Execution Needs To Catch Up, But Stock Remains Undervalued [https://seekingalpha.com/article/4801049-alaska-air-group-execution-needs-to-catch-up-but-stock-remains-undervalued]
* Alaska Airlines introduces an expansive new loyalty program [https://seekingalpha.com/news/4487374-alaska-airlines-introduces-an-expansive-new-loyalty-program]
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