Alaska Airlines has introduced a pre-clearance program for its passengers travelling to Hawaii, which offers an exemption from quarantine before departure. The program will facilitate passengers to avoid long queues and bypass the screening process at airports with an approved negative COVID-19 test.
Launched in coordination with Hawaiian officials, Alaska Airlines (ALK) stated that the program “is the first of its kind to allow guests to obtain an exemption from the state’s mandatory 14-day quarantine before departure.”
The company disclosed that it had been conducting flights from the West Coast to Maui as a pilot project for the program over the past week. Starting Dec. 14, it plans to roll out the program on all flights to Kona and Oahu islands. (See ALK stock analysis on TipRanks)
“As guests start planning their 2021 travel to Hawaii, we’re focused on making the journey as safe, easy and hassle-free as possible,” said Ben Minicucci, Alaska Airlines’ president. “We appreciate Hawaii’s partnership to help ensure our guests are well-informed and visit these beautiful islands responsibly, wearing a mask and following the state’s safety guidelines.”
On Dec. 11, UBS analyst Myles Walton upgraded the stock to Buy from Hold and raised the price target to $64 (28.3% upside potential) from $43. Although Walton believes that near-term demand will remain challenged, he views that air travel demand will recover in the second half of next year and beyond.
Overall, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buys and 3 Holds. The average price target stands at $54.78 and implies upside potential of about 9.8% to current levels. Shares have fallen 26.4% year-to-date.
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