United expressed 'concerns' to DOT with Hawaiian, Alaska Air merger plan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2024
0mins
Concerns Over Airline Merger: United Airlines' Chief Legal Officer, Robert Rivkin, expressed concerns about the potential merger between Alaska Airlines and Hawaiian Airlines, particularly regarding its impact on existing cooperation agreements with Hawaiian Airlines.
Types of Agreements Affected: Rivkin highlighted that United has various agreements with Hawaiian Airlines, including interline, codeshare, special prorate, and loyalty agreements, which could be affected by the merger.
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Analyst Views on ALK
Wall Street analysts forecast ALK stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 39.110
Low
63.00
Averages
71.10
High
80.00
Current: 39.110
Low
63.00
Averages
71.10
High
80.00
About ALK
Alaska Air Group, Inc. is engaged in operating airlines. The Company operates through its subsidiaries Alaska Airlines, Inc., Hawaiian Holdings, Inc., Horizon Air Industries, Inc., and McGee Air Services. The Company's segments include Alaska Airlines, Hawaiian Airlines, and Regional. The Alaska Airlines segment includes scheduled air transportation of passengers and cargo on Boeing 737 (B737), Boeing 787 (B787), Boeing 717 (B717), Airbus A330 (A330), Airbus A321neo (A321neo), and others, throughout North America, Latin America, Asia, and the Pacific. The Regional segment includes Horizon's and other third-party carriers scheduled air transportation on E175 jet aircraft for passengers under capacity purchase agreements (CPAs). The Company serves more than 140 destinations throughout North America, Central America, Asia and across the Pacific. The Company provides freight and mail services (cargo) using both freighter aircraft and the bellies of its passenger aircraft.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Target Price Cut: Citi lowered ALK's target price to $32, indicating an 18% downside, while projecting losses of $2.54 and $4 per share for 2026 and 2027, significantly below consensus estimates.
- Poor Market Performance: In Friday's premarket trading, ALK shares fell by 3%, contrasting with slight gains for peers like American Airlines (AAL), United Airlines (UAL), and Delta Air Lines (DAL), indicating ALK's relative weakness in the industry.
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- Strong Tech Stock Performance: The Nasdaq 100 index rose 0.58%, driven by strong earnings from NXP Semiconductors and Seagate Technology, with shares up 25% and over 10% respectively, indicating robust demand for AI infrastructure.
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- Housing Data Exceeds Expectations: US March housing starts unexpectedly rose by 10.8% to 1.502 million, significantly surpassing the expected decline to 1.380 million, demonstrating resilience in the construction sector that may support the stock market.
- Stable Fed Policy Expectations: The market anticipates that the Fed will keep interest rates unchanged at the upcoming meeting, as further developments in oil prices and inflation are still under observation, reflecting a cautious approach to future economic policy.
See More
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