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
Tue, Jul. 5, 10:35 AM
- Airline stocks are notable laggards on the day after Delta Air Lines (DAL -4.4%) reduced its outlook for Q2 operating margin to 17% (from 21% to 23% prior) and reported on a 5% drop in PRASM during June.
- United Continental (UAL -3.5%) and American Airlines Group (AAL -2.5%) are seen as suffering from some of the same F/X and Brexit pressures abroad, while Spirit Airlines (SAVE -4%) and Allegiant Travel (ALGT -2.2%) continue their jittery trading patterns.
- Southwest Airlines (LUV -1.4%) is also lower, despite a positive weekend profile in Barron's highlighting the stronger balance sheet the airline company has compared to peers and the lack of European headaches.
- Previously: Delta Air Lines lower after issuing June traffic numbers (July 5)
- Related ETF: JETS.
Wed, Jun. 29, 4:59 PM
- The elected leaders representing 25K flight attendants at United Continental (NYSE:UAL) endorsed a tentative contract agreement, unanimously agreeing to put the deal to a membership vote later this year, the Association of Flight Attendants says.
- The union says the five-year agreement preserves profit-sharing, maintains health care plans, provides no-furlough protections and offers top pay rates that exceed that of attendants at American Airlines (NASDAQ:AAL).
- Pay of $62/hour would exceed the current AAL top rate, even though the company in March gave its attendants a 6% raise, in part to help them keep up with UAL; AAL and its union are now likely to review the UAL contract, if ratified, and decide whether to make adjustments.
Mon, Jun. 27, 12:39 PM
- Hawaiian Holdings (HA +4.6%) is a rare gainer among transportation stocks today as Deutsche Bank upgrades shares to Buy from Hold with a $41 price target, saying the vote to leave the E.U. creates uncertainty in near-term demand for air travel to and from the U.K. as well as how the U.K. will feature in a revised E.U.-U.S. Open Skies accord.
- The firm notes that with the IATA warning about a "permanent downward shift" in U.K. passenger volumes of 3%-5% by 2020 following the Brexit vote, U.S. airlines with exposure to the U.K. suffered 8%-11% share declines on Friday.
- Among the Big Three U.S. airlines, Deutsche Bank sees potential downside EPS risk and thus maintains Hold ratings on American (AAL -4.8%), United (UAL -7.2%) and Delta (DAL -4.5%), given that the U.K. market for 2016 represents 6.3% of AAL’s capacity, 5.4% of UAL’s and 2.8% of DAL’s.
- The firm favors domestic names such as Southwest (LUV -3.3%), Spirit (SAVE -2.8%) and JetBlue (JBLU -1.7%), "which should gain from a favorable leisure/discretionary travel outlook."
Fri, Jun. 24, 3:02 PM
- In the rush to safety and away from cyclical stocks like airlines, Ryanar (RYAAY -5.1%), and the U.S. legacy carriers - American Airlines (AAL -10%), Delta (DAL -7.4%), and United (UAL -8.3%) - are most exposed to the Brexit, says Raymond James' Savanthi Syth.
- The Latin American airlines are also negatively exposed to the stronger U.S. dollar - Copa (CPA -4%), Gol (GOL +6%), and Latam (LFL -6.1%).
- For now, Allegiant (ALGT -1.5%), Spirit (SAVE -3.9%), and SkyWest (SKYW -5.1%) are best to hide out in, along with Alaska Air (ALK -4.3%) and Virgin America (VA -0.4%) to some extent.
Fri, Jun. 17, 6:45 PM
- The biggest U.S. airlines including Delta (NYSE:DAL), United Continental (NYSE:UAL), American (NASDAQ:AAL) and Southwest (NYSE:LUV) missed their chance to lock in the cheapest energy costs in more than 12 years after jet fuel surged as much as 80% since January, according to a Bloomberg report.
- The airlines were gun-shy early this year after the industry lost billions on hedging in 2015; crude oil plunged to as low as $26/bbl early this year from more than $100 in 2014, and the airlines “would have had exceptional gains" in their portfolios if they had hedged, says Bob Mann, president of airline consultant R.W. Mann.
- DAL, which closed its hedge book in January after losing $4B in the past eight years, got “burned” trying to protect against price spikes, CEO Edward Bastian says, adding that the company would not return to hedging even if oil fell below $30 again.
- UAL, which is 12% hedged for the final nine months of 2016, says it has not added hedging positions since July, AAL reiterates its April statement that it would continue to shun fuel hedging. and LUV said in January that it had cut by half the percent of fuel hedged for H2 of this year to 30%-35%.
Thu, Jun. 16, 5:18 PM
- American Airlines (NASDAQ:AAL) tumbled to 20-month lows before settling for a 4.4% loss in today's trade after BofA Merrill Lynch downgraded shares to Underperform from Neutral with a $27 price target, cut from $42.
- AAL will represent more than 50% of the U.S. industry’s net debt by the end of 2016, while rival carriers are reducing borrowing, according to BofA analyst Andrew Didora, who adds that "a revenue environment that is not improving during a time of rising oil prices leaves the balance sheet strategy of American a bigger risk than three months ago."
- Rising capacity combined with stagnant revenue from each seat flown a mile means airlines are not properly prepared to deal with events that might reduce travel demand, such as a Brexit and the Orlando shooting, Didora says.
Tue, Jun. 14, 3:26 PM
- A number of airline stocks are at or very close to 52-week lows as a combination of factors continue to drive selling pressure.
- The Orlando terror attack and anxiety over the impact of Britain leaving the European Union on business travel top the list.
- American Airlines (AAL -4.9%), JetBlue (JBLU -3.2%), and United Continental (UAL -4.8%) slumped to one-year lows.
- Spirit Airlines (SAVE -3.8%), Alaska Air Group (ALK -4.5%), Delta Air Lines DAL, Hawaiian Holdings (HA -3.3%), and Southwest Airlines (LUV -5.3%) are also down sharply.
- The U.S. Global Jets ETF (NYSEARCA:JETS) has nowhere to hide and is down 3.17%.
Mon, Jun. 13, 9:57 AM
- Airline stocks begin the week with a sharp downward movement.
- The terror attack in Orlando is the main driver of the selling pressure on the sector, although a bombing in the Shanghai airport yesterday is also impacting Chinese airlines China Eastern Air (CEA -2.1%) and China Southern Airlines (ZNH -5.3%).
- Decliners include Hawaiian Holdings (HA -3.1%), American Airlines Group (AAL -2.9%), Spirit Airlines (SAVE -3.8%), Delta Air Lines (DAL -2.7%), JetBlue (JBLU -2.1%), Southwest Airlines (LUV -2.5%), SkyWest (SKYW -1.8%), United Continental (UAL -2.6%), Alaska Air Group (ALK -2.3%), and Allegiant Travel (ALGT -1.5%).
- The U.S. Global Jets ETF (NYSEARCA:JETS) is down 2.72% on the day.
Fri, Jun. 10, 12:46 PM
- American Airlines (NASDAQ:AAL), Frontier Airlines, JetBlue (NASDAQ:JBLU), Silver Airways, Southwest Airlines (NYSE:LUV), and Sun Country Airlines won the first round of rights awarded by the Department of Transportation on routes to Cuba.
- The DOT will announce later this summer which airlines will have the valuable landing slots at Havana's major airport.
- Family visit trips are allowed under current U.S. government rules, but tourists are still banned from making the hop to the island.
Thu, Jun. 9, 8:52 AM
- American Airlines Group (NASDAQ:AAL) reports revenue passenger miles increased 0.5% to 19.4363B.
- Capacity was up 1.7% to 23.7235 available seat miles, led by a 19% increase in ASMs for Pacific routes.
- May load factor -90 bps to 81.9%. Domestic load factor +20 bps to 86.1%.
- YTD load factor -70 bps to 80.2%.
- American expects Q2 passenger revenue per available seat mile to fall 6% to 8% Y/Y. A Q2 pretax margin of 14% to 16% is anticipated.
Wed, Jun. 8, 7:59 AM
- A $3 increase in one-way fares by JetBlue (NASDAQ:JBLU) in the U.S. was matched this week by American Airlines (NASDAQ:AAL), Southwest Airlines (NYSE:LUV), United Continental (NYSE:UAL), Alaska Airlines (NYSE:ALK), and Virgin America (NASDAQ:VA) on overlapping routes, according to analysis from JPMorgan analyst Jamie Baker.
- U.S. airlines have seen more success in pushing out fare hikes that stick over the last few months in a positive development for the sector.
- "We remain of the view that we are on the cusp of a definitive domestic RASM inflection point, most likely in the mid-to-late summer time period," advises Baker.
- The U.S. Global Jets ETF (NYSEARCA:JETS) was up 2.30% yesterday in a strong move.
Mon, Jun. 6, 4:25 PM
- American Airlines (NASDAQ:AAL) announces it will shift to a revenue-based miles award system for its AAdvantage program. AAdvantage members at the top tiers will earn more miles per dollar than customers nearer the bottom (AAdvantage 5 miles per USD, Gold 7 miles per USD, Platinum 8 miles per USD, Executive Platinum 11 miles per USD). The change goes into effect on August 1.
- The switch by the carrier to give extra perks to large spenders follows similar moves by Delta, United, Southwest, and JetBlue.
- American Airlines press release
Wed, Jun. 1, 3:41 AM
- It may turn out to be an even worse upcoming tourist season for Europe.
- The U.S. State Department is warning Americans of possible terrorist attack threats across the continent this summer, saying targets could include "tourist sites, restaurants, commercial centers and transportation."
- It also pointed to two events in particular - the Catholic Church's World Youth Day in Poland and France's European Soccer Championship.
- Related tickers: AAL, UAL, DAL, RYAAY, OTCQX:DLAKF, OTCQX:DLAKY, OTCPK:AIRYY, OTCPK:MLYAF, OTCPK:AFLYY, OTC:RYAOF, VA, OTC:EJTTF, OTCQX:ESYJY, OTC:AFRAF, OTCPK:ICAGY
Tue, May 31, 2:24 AM
- Global demand for air travel may be "shifting down a gear," according to global aviation group IATA, which signaled a cautious outlook for passenger traffic after growth in April rose just 4.6% on year - the lowest pace since January 2015.
- While some of the slowdown could be attributed to the Brussels terror attacks, there are still signs that underlying traffic growth could be decelerating, Director General Tony Tyler said. "The stimulus from lower oil prices appears to be tapering off. And the global economic situation is subdued."
- Airline stocks: AAL, UAL, DAL, RYAAY, OTCPK:CPCAY, OTCPK:SINGY, CEA, ZNH, CPA, GOL, LFL, OTCQX:DLAKF, OTCPK:QUBSF, ALK, HA, OTCPK:AIRYY, OTCPK:MLYAF, OTCPK:AFLYY, VLRS, LUV, OTC:RYAOF, VA, LFL, SAVE, ALGT, CEA, OTC:EJTTF, OTCQX:ESYJY, AVH, OTC:AFRAF, OTCPK:ICAGY.
Mon, May 23, 9:17 AM
- Southwest Airlines (NYSE:LUV) could face a challenge in California if the merger between Virgin America (NASDAQ:VA) and Alaska Air Group (NYSE:ALK) moves forward.
- Alaska and Virgin each have six passenger gates at LAX compared to the ten gates controlled by Southwest. Virgin also has key gates at San Francisco, San Diego, and Palm Springs.
- The merger also combines Alaska's loyalty program with Virgin's reputation as a high-tech carrier in terms of passenger entertainment. Alaska also lands Virgin's key transcontinental routes from LAX to the East Coast.
- United Continental (NYSE:UAL) and American Airlines Group (NASDAQ:AAL) rank 2nd and 3rd behind Southwest in California passenger traffic.
Tue, May 17, 8:52 AM
- U.S. air fares rose 1.1% M/M in April to reverse a decline from March, according to data compiled by the Bureau of Transportation Services. A higher mix of long-haul flights may have pushed up the average fare during the month.
- The level of air fares was up 0.4% Y/Y on an unadjusted basis, despite some local fare wars and lower fuel costs for carriers.
- The higher level of fares follows a major development yesterday when Delta cut back on its capacity growth plans in the second half of 2016 in a bid to level out fares. Delta's Q1 fares were down 5% Y/Y (includes international).
- BTS data
- Related ETF: JETS.
- Related stocks: ALGT, JBLU, SAVE, VA, LUV, DAL, AAL, UAL, HA, SKYW.
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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