Billionaire David Harding’s 10 Stock Picks with Huge Upside Potential

4. Alaska Air Group, Inc. (NYSE:ALK)

Winton Group’s stake: $8,348,800

Upside Potential: 44.66%

Number of Hedge Fund Holders: 45

Alaska Air Group, Inc. (NYSE:ALK), founded in 1985, operates Alaska Airlines, Hawaiian Airlines, and Horizon Air. Alaska Airlines, established in 1932, serves North America and international destinations. Hawaiian Airlines, founded in 1929, operates between Hawaii and various global locations. Horizon Air, acquired in 1986, provides regional flights for Alaska. In 2016, Air Group acquired Virgin America, merging it with Alaska in 2018. In 2024, Alaska acquired Hawaiian Holdings, integrating operations, loyalty programs, and pursuing joint collective bargaining for employees. The company prioritizes safety and sustainable growth.

Alaska Air Group, Inc. (NYSE:ALK) reported a Q1 2025 net loss of $166 million, with an adjusted loss of $95 million. Despite this, the company remains confident in its long-term strategy, Alaska Accelerate. Key successes include strong loyalty growth, particularly through its Hawaiian Airlines integration, and a robust performance in premium revenues. The company’s diversified revenue streams, including cargo, are contributing to its resilience. Alaska’s market position is strengthened by a low-cost structure and high loyalty. Despite challenges like macroeconomic factors and fluctuating demand, Alaska maintains its commitment to its $1 billion share buyback program. The company is optimistic about future performance, aiming for $10 earnings per share by 2027. The second quarter outlook reflects slight growth but cautious expectations due to ongoing uncertainty in the demand environment.