Capacity by region
In 2014, the West Coast accounted for 31% of the total capacity held by Alaska Airlines (ALK), measured in the number of total departures from the region. In 2010, the West Coast accounted for 33%. Similarly, the share of total capacity from the Alaska region has decreased from 21% in 2010 to 16% in 2014.
The airline has reduced its dependency on the West Coast and Alaska by growing its capacity in Hawaii and the Mid-Continent US. The capacity share in Hawaii and the Mid-Continent has increased from 13% to 20% and 24% to 25%, respectively, in 2010–2014.
Capacity distribution by region
The West Coast accounted for 31% of the total capacity held by Alaska Airlines’ mainline carrier, followed by the Mid-Continent US at 25%, Hawaii at 20%, and Alaska at 16%. The mainline service saw its revenue passengers grow from 16.5 million in 2010 to 21 million in 2014, a growth of 27% in four years.
The West Coast is the airline’s dominant region, accounting for 66% of the total capacity of the regional carrier, followed by the Pacific Northwest at 19% and Canada at 8%. The regional service grew its revenue passengers from 6.8 million in 2010 to 8.3 million in 2014.
Investors can gain exposure to Alaska Airlines by investing in the SPDR S&P Transportation ETF (XTN). XTN holds ~25% in airline stocks and ~2.5% in Alaska Airlines. XTN also holds shares of Alaska Airlines’ peers, including 2% in American Airlines (AAL), ~2% in United Continental Holdings (UAL), ~2.5% in Southwest Airlines (LUV), and ~2.5% in Delta Air Lines (DAL).