My Best Idea For 2015 - American Airlines
HFI • 101 Comments
HFI • 101 Comments
American Airlines Group: As The Integration Continues, Solid Upside Ahead
Helix Investment Research • 58 Comments
Helix Investment Research • 58 Comments
US Airways: A Buy Before The Transformation Into American Airlines
Helix Investment Research • 10 Comments
Helix Investment Research • 10 Comments
Mon, Jul. 25, 10:51 AM
- Cowen assigns a price target of $43 on American Airlines Group (AAL -1.9%) on its view that unit revenue improvement in the U.S. and Latin American markets will continue.
- The investment firm thinks American is "bucking the trend" of falling yields.
- American is also due to see some comp relief after it laps Southwest Airline's expansion out of Dallas Love Field in Q4.
- Shares of American Airlines have lagged the U.S. Global Jets ETF this year (-15.7% vs. -10%).
Mon, Jul. 25, 2:39 AM
- A cascade of terrorist attacks in Europe is driving away tourists at the height of the summer rush, casting a pall over hotel chains, airline companies and luxury retailers that are already grappling with Britain's vote to leave the EU.
- Germany was the latest country to get hit by a series of violent incidents over the weekend, including a suicide bombing and stabbing by two Syrian refugees and a German-Iranian teenager that shot and killed nine people at a mall in Munich.
- Related stocks: IHG, AAL, OTCQX:DLAKF, OTCQX:DLAKY, OTCPK:AFLYY, OTC:AFRAF, OTCPK:ICAGY, OTCQX:ESYJY, OTC:EJTTF, RYAAY, OTC:RYAOF, OTCPK:TCKGY, OTC:TCKGF, OTCPK:HESAY, OTCPK:HESAF, OTCPK:LVMUY, OTCPK:LVMHF, OTCPK:PPRUY, OTC:PPRUF
Fri, Jul. 22, 4:55 PM
- American Airlines (NASDAQ:AAL) said earlier today that it will defer delivery of 22 Airbus (OTCPK:EADSF, OTCPK:EADSY) wide-body aircraft, saving $500M in 2017 and $700M in 2018 while providing more flexibility in how to use its fleet.
- AAL will take A350 XWB aircraft from late 2018 through 2022, deferring each plane’s arrival by an average of 26 months, after previously planning to receive the first A350 in spring 2018.
- Reduced spending because of the delayed deliveries will provide a lift to AAL's free cash flow after an aggressive fleet renewal program and share repurchases increased total debt, J.P. Morgan analyst Mark Streeter says.
- AAL also reported better than expected Q2 earnings as lower fuel prices helped offset the effects of a lackluster global economy.
Fri, Jul. 22, 8:17 AM
- American Airlines Group (NASDAQ:AAL) reports a drop in Q2 pre-tax margin rate to 15.4% from 17.2% a year ago as higher costs (other than fuel) and lower fares factored in.
- Key metrics: Passenger revenue per available seat mile fell 6.3% Y/Y to $0.1271, while capacity was 1.2% higher at 62.670B available seat miles. Passenger load factor -50 bps to 82.9%. Operating cost per ASM declined 4.6% to $0.1132.
- The company bought back 50.2M shares during Q2 at an average price of $33.55.
- American's tally of full-time employees increased 2.4% to 103,100.
- A guidance update will be issued during the company's earnings call.
- Previously: American Airlines EPS of $2.81 (July 22)
- AAL -0.17% premarket to $34.90.
Fri, Jul. 22, 7:35 AM
Thu, Jul. 21, 5:30 PM
Thu, Jul. 21, 10:39 AM
- Airline stocks (JETS -2.8%) are broadly lower following Southwest Airlines' (LUV -8.8%) Q2 earnings miss and downbeat guidance for a 3%-4% decline in Q3 RASM from a 0.6% gain in Q2.
- Shares also are hurt by warnings from Deutsche Lufthansa (OTCQX:DLAKF, OTCQX:DLAKY) and EasyJet (OTC:EJTTF, OTCQX:ESYJY) that recent terror attacks and political turmoil in Europe were weighing on their businesses.
- Lufthansa says advance bookings, particularly on longer routes to Europe, "have declined significantly, in particular due to repeated terrorist attacks in Europe and to greater political and economic uncertainty."
- Easyjet also warns on terrorism, and says the U.K.’s Brexit vote would hurt per-seat revenue, and that foreign exchange and fuel cost effects would add ~£25M ($33M) to full-year expenses.
- DAL -3.1%, UAL -2.9%, AAL -2%, RYAAY -2.9%, ALK +0.8%, JBLU -2.3%, SAVE -2.6%, HA -1.3%, SKYW -0.2%.
Wed, Jul. 20, 1:46 PM
- The Department of Transportation gives tentative approval to American Airlines Group (AAL +1.3%), Delta Air Lines (DAL +0.3%), Hawaiian Airlines (HA +0.5%), and United Airlines (UAL +2.3%) for daytime landing slots at Tokyo's Haneda Airport.
- The flights from the U.S. into Haneda during the day could begin as early as this fall.
- Haneda is a hub for Japan Airlines (OTCPK:JAPSY, OTC:JPNRF) and All Nippon Airways (OTCPK:ALNPY).
Fri, Jul. 15, 2:27 AM
- Eight months after a murderous rampage in Paris, a deadly attack in the French coastal city of Nice has killed at least 84 people and wounded scores.
- The "terrorist" gunman, described as a French national of Tunisian descent, drove a heavy truck at high speed into a crowd that had been watching Bastille Day fireworks along the Riviera.
- Equities are trading lower, weighed down by travel and tourism stocks, in yet another terror driven selloff.
- CAC 40 -0.6% to 4,358.
- Related tickers: EXPE -2.4%, PCLN -1%, TRIP -1%, NCLH -3%, RCL -2.5%, CCL -0.2%, AAL -1.4%, UAL -1.2%, DAL -1.5%.
Wed, Jul. 13, 8:32 AM
- American Airlines Group (NASDAQ:AAL) reports revenue passenger miles increased 2.2% to 20.870B in June. Once again strongest gain in traffic was for Pacific routes.
- Capacity 2.8% higher at 24.6B available seat miles. Domestic ASMs +3.1%.
- June load factor -50 bps to 84.9%, due in part to a soft month for the Atlantic business.
- YTD load factor -60 bps to 81.1%.
- The company expects Q2 passenger revenue per available seat mile to fall 6% to 7% and sees a pretax margin of 14% to 16%.
- AAL +1.04% premarket to $35.02 after a big pop yesterday.
Tue, Jul. 12, 9:58 AM
- Airline stocks are making strong gains on a flurry of positive news.
- The investment in LATAM Airlines (LFL +23.9%) by Qatar Airways is having a ripple effect across other global carriers. Copa Holdings (CPA +7.9%), Avianca Holdings (AVH +8.1%), and Go Linhas (GOL +7.8%) are all solidly higher.
- In the U.S., a stronger-than-anticipated report from United Continental (UAL +7.7%) on its key Q2 revenue metric is the highlight along with a sweeping upgrade from Deutsche Bank.
- The investment firm raises United, American Airlines Group (AAL +8.6%), and Delta Air Lines (DAL +4.7%) to Buy from Hold.
- "We are of the view that all known negatives (Brexit, tepid global economic growth, over-supplied markets, etc.) are more than fully discounted in the share prices which are, on average, trading at 6.4x our 2016 EPS estimates and 6.8x our 2017 EPS estimates," reads the note from DB.
- Alaska Air Group (ALK +4.3%), JetBlue Airways (JBLU +4%), Southwest Airlines (LUV +3.4%), and Spirit Airlines (SAVE +3.3%) are all higher as well.
- The U.S. Global Jets ETF (NYSEARCA:JETS) is up 3.86% on the day.
Tue, Jul. 12, 9:24 AM
Thu, Jul. 7, 11:14 AM
- The Department of Transportation issues its recommendations on airline service from the U.S. to Cuba.
- The DOT awards Alaska Airlines (NYSE:ALK), American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), privately-held Frontier Airlines, JetBlue (NASDAQ:JBLU), Southwest Airlines (NYSE:LUV), Spirit Airlines (NASDAQ:SAVE), and United Airlines (NYSE:UAL) the right to fly into Havana from Atlanta, Charlotte, Fort Lauderdale, Houston, Los Angeles, Miami, Newark, New York City, Orlando, and Tampa.
- Flights are expected to start this fall, with up to 20 daily frequencies allowed by the current agreement with Cuba.
- DOT press release
Wed, Jul. 6, 1:02 PM
- Airline stocks continue to lose altitude amid concerns on capacity growth and labor expenses. The Bloomberg U.S. Airlines Index has retreated 27% YTD, while the slightly-diversified U.S. Global Jets ETF (NYSEARCA:JETS) is down about 17%.
- Analysts such as Credit Suisse's Julie Yates continue to point the finger directly at management.
- "Capacity growth continues to outpace GDP in all regions and the industry’s willingness to trim growth with oil still in a historically inexpensive range of $50 a barrel is low," notes Yates. Delta's disclosure of a 5% drop in PRASM in Q2 backs up her contention.
- Sector snapshot: A CS downgrade on both United Continental (UAL -3.2%) and American Airlines Group (AAL -4.1%) today sent both stocks spiraling downward, with UAL hitting a 52-week low. Also suffering from the doldroms, Delta Air Lines (DAL -1.7%) is down 29% YTD and JetBlue (JBLU -1.2%) is off 27%. Spirit Airlines (SAVE -2%) and Southwest Airlines (LUV -1.1%) don't have to worry about European demand, but have seen an impact from pricing competition in key markets this year. Virgin America (VA -0.2%) shareholders are the ones that have navigated the choppy market the best this year due to the buyout from Alaska Air Group (ALK -1.3%).
Wed, Jul. 6, 8:53 AM
- American Airlines Group (NASDAQ:AAL) is moved straight to Underperform from Outperform by Credit Suisse on a raised level of concern over European travel and PRASM marks in the U.S. Analyst Julie Yates also points to the "abysmal" cash flow at the company. AAL -4.01% premarket to $27.77.
- United Continental (NYSE:UAL) is lowered to Neutral from Outperform by the firm. The price target on UAL is chopped to $42 from $64 due to a reset on earnings expectations and appropriate valuation. UAL -2.21% premarket to $39.40.
- Related ETF: JETS.
Tue, Jul. 5, 12:25 PM
- The Transportation Security Administration announces that it will test automated security lanes at airports in Chicago (O'Hare), Dallas-Fort Worth, Los Angeles, and Miami.
- The new system, which utilizes computed tomography scanners, is expected to reduce screening wait times by 30%.
- American Airlines Group (AAL -1.8%) is partnering with the TSA on the project.
- Long wait times at security lanes can be a minor drag on operating profit at major airlines when flights are held back.
- TSA press release
American Airlines Group, Inc. is a holding company for American Airlines and US Airways. The company, together with American Eagle and US Airways Express operates an average of nearly 6,700 flights per day to 339 destinations in 54 countries from its hubs in Charlotte, Chicago, Dallas/Fort... More
Industry: Major Airlines
Country: United States
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