Alaska Air (ALK) has signed a codeshare agreement with Qatar Airways to provide its customers with more convenient travel options. The move will also strengthen the partnership between the two airlines. Shares of the company dipped 2.2% in Tuesday’s trading session.
From July 1, passengers of Qatar Airways will be able to make travel bookings for more than 150 routes throughout Alaska Air’s network. Alaska Air’s passengers will soon also be able to book travel on Qatar Airways flights between the U.S. and Qatar, as well as to various other destinations.
Alaska Air became a member of the oneworld global alliance on March 31, 2021, and expanded its partnership with Qatar Airways to provide benefits, including preferred seat selection, priority check-in, and more. (See Alaska Air stock chart on TipRanks)
CEO of Alaska Air Ben Minicucci said, “As international air travel resumes, it’s important to provide our guests with easier, more convenient travel options to get out and see distant places again. Qatar Airways’ nonstop flights from our hubs in Seattle, San Francisco and Los Angeles to Doha and points beyond offers our guests tremendous opportunities to visit nearly any country they want.”
Two months ago, Raymond James analyst Savanthi Syth reiterated a Buy rating on the stock with a price target of $85 (41.4% upside potential).
Syth said, “Longer term, we continue to view favorably its low-cost/capitalefficient DNA, relatively unimpaired balance sheet with an ability to deleverage faster than peers (perhaps ex-Southwest), and revenue upside from the new oneworld membership.”
Consensus among analysts is a Strong Buy based on 10 Buys and 1 Hold. The average Alaska Air price target stands at $84.20 and implies upside potential of 40% from current levels.
ALK scores a 9 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.
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