Alaska Airlines Tops Satisfaction Survey - Analyst Blog

In line with airline customer satisfaction scaling new heights in North America, Alaska Airlines Group Inc. ALK has topped the 2014 survey conducted by J.D. Power for the seventh consecutive year. The carrier has also earned the leading position in terms of quality and usability of its frequent flier program.

J.D. Power's 2014 North America Airline Satisfaction Study takes into consideration the response of 11,300 customers, who have flown across the continent in different traditional airlines between March 2013 and March 2014. These customers have ranked airlines on the basis of seven standards, which include fees, reservations, check-ins, aircraft, boarding/baggage and flight crew.

Alaska Airlines scored 737 points on a 1,000 point scale, which is 20 points more than last year and 44 points ahead of the second place occupant, Delta Airlines Inc. DAL. Overall passenger satisfaction from traditional airlines stood at 712, marking a 17 point increase over last year despite more fees for baggage check.  Among low cost carriers, JetBlue Airways Corp. JBLU has emerged as the winner with 789 points followed by Southwest Airlines Co. LUV and Canada's WestJet.

Meanwhile, in the loyalty program satisfaction report, the carrier was ranked on the basis of the ease of redeeming miles, account maintenance, reward program terms, ease of earning miles, benefits available and customer service. The report was based on the responses of 3,800 loyalty program members surveyed in March 2014.

The SeaTac-based company has leveraged from a high number of partner carriers and 700 global destinations. Loyal customers can earn and redeem points when they fly with one of Alaska Airlines' partners or when they stay at one of its partner hotels. Further, the members can use a convenient online calendar to buy one-way award tickets over the net and book multiple airlines in one reservation.

We believe the J.D. Power study reaffirms the confidence that customers hold in the Alaska Airlines brand name despite rising fees and uncomfortable sitting remaining a constant concern for the fliers. It will also help strengthen its goodwill against other traditional carriers in the region.

Alaska Airlines reported better-than-expected earnings of $1.28 per share in the first quarter of 2014 handily beating the Zacks Consensus Estimate of $1.20. The company also recently approved a $650 million share repurchase program to boost its shareholders' wealth.

Alaska Air currently carries a Zacks Rank #1 (Strong Buy).

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