Alaska Air Group ALK shares have performed exceedingly well on the bourse in 2024. Shares of this Seattle, WA-based carrier have surged 65.8% in 2024, outperforming its industry’s 30.3% growth.

Given the impressive price performance, let's take a deeper dive to identify the factors driving this low-cost carrier’s growth, which currently sports a Zacks Rank #1 (Strong Buy), and assess whether there is potential for continued gains.

ALK's top line is benefiting from the uptick in air travel demand, with consolidated traffic (measured in revenue passenger miles) rising 8% to 16.97 billion in the third quarter of 2024. To accommodate this surge in demand, the company increased capacity (measured in available seat miles) by 6.8% to 19.84 billion. As traffic growth outpaced capacity expansion, the consolidated load factor (percentage of seat occupancy) rose by 0.9 percentage points, reaching 85.5%, which surpassed our estimate of 83.3%.

Global connectivity is a key focus of ALK's strategic plan, ‘Alaska Accelerate,’ which aims to generate $1 billion in incremental profit following its merger with Hawaiian Airlines. The plan includes expanding connectivity through a Seattle gateway and long-haul flights, becoming Hawaii's trusted airline with improved services and a dedicated loyalty program, enhancing the travel experience with premium offerings, and diversifying revenues through cargo growth and technology investments. This approach positions ALK for sustainable growth and a better customer experience.

The company operates a fleet of about 500 aircraft, serving more than 240 destinations across North America. In 2023, it carried more than 38 million passengers through partnerships with major carriers. The company is aiming to modernize its fleet.

With air travel demand projected to stay robust, ALK stock is likely to maintain its positive performance in the market in the new year as well.

ALK’s Estimate Revisions to Head North

Driven by the positives discussed above, the Zacks Consensus Estimate for Alaska Airlines' earnings for the full-year 2024 and full-year 2025 has been revised 12% and 10.4% upward over the past 60 days, respectively.

Other Stocks to Consider

Some other top-ranked stocks from the Zacks Airline industry are American Airlines AAL and United Airlines UAL. AAL currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here .

AAL has an expected earnings growth rate of 46.4% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 124.4%. Shares of AAL have risen 33.1% in the past year.