Alaska Air's Rapid Capacity Ramp Up Will Likely Impact Its Margin & Yield

Alaska Air's plan to ramp up its Seattle capacity by 10% in 2015 will likely weigh on its load factor and passenger yield. Alaska's strategy is an attempt to defend its dominant market position in its largest hub, Seattle, which has been challenged by aggressive capacity addition from Delta. While Delta, in the past, relied on Alaska's passenger traffic to feed into its connecting flights through code-sharing agreements, its decision to build Seattle as its core hub has resulted in direct compet...