Alaska Air Group wants to optimise productivity and asset utilisation

Alaska Air Group EVP for planning and strategy Shane Tackett said the carrier is looking to optimise its productivity and asset utilisation (Seeking Alpha, 28-Jan-2020). He noted Alaska Air Group will need to "grow more" in order to get its target of increased productivity and asset utilisation "unlocked", adding this would be enabled by the removal of restraints such as crew training and lack of stability in its fleet plan. The carrier is also experiencing a "couple of headwind areas principally airport related cost", accounting for approximately 7% to 8% of its cost structure. Airport related costs are expected to remain at this percentile while "ageing infrastructure airports" await upgrading. Other expenses in 2020 will include the maintenance of Boeing and Airbus equipment, in addition to other Airbus costs as the carrier begins to "account for lease returns that begin in earnest next year".