Seeking Alpha

American Airlines Group (AAL)

  • Tue, Jun. 9, 8:13 AM
    • American Airlines Group (NASDAQ:AAL) reports revenue passenger miles rose 0.7% to 19.3B in May.
    • Total capacity was up 2.1% to 23.3B available seat miles, led higher by a 46% increase on Pacific routes.
    • Domestic capacity was up 1.3% vs. a 0.4% slip in revenue passenger miles.
    • May load factor -120 bps to 82.8%.
    • YTD load factor -70 bps to 80.9%.
    • Guidance: American Airlines Group expects Q2 PRASM of -6% to -8% and pretax margin rate to fall in a range of 16% to 18%.
    • Previously: American Airlines Group CEO see cautious capacity growth ahead (Jun. 08 2015)
    • AAL -1.0% premarket.
    | Tue, Jun. 9, 8:13 AM | 52 Comments
  • Mon, Jun. 8, 9:33 AM
    | Mon, Jun. 8, 9:33 AM | 26 Comments
  • Mon, Jun. 8, 7:33 AM
    • American Airlines Group (NASDAQ:AAL) CEO Doug Parker told Reuters that the recent round of capacity increases in the airline sector "feels different" than prior periods where the industry grew too fast.
    • The exec maintained a rational mindset will prevail as companies remember the lessons of the past.
    • Parker said he expects American to expand through existing partnerships and organic growth.
    | Mon, Jun. 8, 7:33 AM | 45 Comments
  • Thu, Jun. 4, 6:58 PM
    • Delta Air Lines (NYSE:DAL) and its pilots reach a tentative agreement on a new contract, marking an early completion to negotiations that can become testy and drawn-out in the heavily unionized airline industry.
    • Reaching a deal six months ahead of the date when the current contract opens for renewal "will provide certainty and stability" into DAL's costs, Raymond James analyst Savanthi Syth says.
    • Some DAL pilots have called for a contract similar to a deal signed with American Airlines (NASDAQ:AAL) in January, which has a higher base pay, but Syth says DAL’s pilots can make more when the company’s profit-sharing program for employees is included.
    • The deal now goes to an executive committee of the union, which could set a ratification vote among DAL pilots.
    | Thu, Jun. 4, 6:58 PM | Comment!
  • Thu, Jun. 4, 1:00 PM
    | Thu, Jun. 4, 1:00 PM | 5 Comments
  • Mon, Jun. 1, 3:56 PM
    • Southwest Airlines (LUV +2.3%) CEO Gary Kelly brought some cheer to the airline sector when he told Bloomberg TV it will increase capacity this year at a 7% rate - instead of the 8% pace tipped off last month.
    • "We’re going to make sure we manage accordingly to the low end of the range. That should address some of the concerns of our investors,” said Kelly.
    • Alaska Air Group (ALK +2.2%), American Airlines Group (AAL +4.3%), Delta Air Lines (DAL +3.4%), and United Continental (UAL +3.2%) all reacted positively to the cautious stance from Southwest.
    | Mon, Jun. 1, 3:56 PM | 23 Comments
  • Sat, May 30, 10:43 AM
    • The airline sector has been rattled this month by an indication from Southwest Airlines of a slight increase in capacity and some RevPAR tallies below expectations.
    • Concerns on pricing and capacity have held back some analysts from setting higher price targets on the group for the next year.
    • Over the last year, most airline stocks have showed a high degree of correlation with oil prices despite all the other factors that impact profits in the sector.
    • Southwest Airlines (NYSE:LUV), United Continental (NYSE:UAL), Alaska Airlines Group (NYSE:ALK), and Allegiant Travel (NASDAQ:ALGT) all had a correlation coefficient of -0.90 or lower between their daily closing share price and the level of oil. A mark of -1.0 indicates perfect negative correlation - while 0.0 indicates no correlation and +1.0 is perfect positive correlation.
    • American Airlines Group (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), JetBlue (NASDAQ:JBLU), Republic Airways (NASDAQ:RJET), and Hawaiian Airlines (NASDAQ:HA) were all at -0.80 or lower.
    • Over a shorter period due to its IPO launch, the correlation coefficient on Virgin America (NASDAQ:VA) vs. oil came in at -0.733.
    • The U.S. carriers marching with the most independence from oil prices were Spirit Airlines (NASDAQ:SAVE) at -0.622 and SkyWest (NASDAQ:SKYW) at -0.701.
    • Pricing data and correlation coefficients
    | Sat, May 30, 10:43 AM | 16 Comments
  • Fri, May 29, 12:31 PM
    • American Airlines Group (AAL +1.1%) names Lyle Hogg to be the president of Piedmont Airlines.
    • The role of president is being split off from the CEO job in advance of the retirement of current CEO Steve Farrow.
    • Piedmont fell under the American corporate umbrella after the company merged with US Airways.
    | Fri, May 29, 12:31 PM | Comment!
  • Tue, May 26, 9:57 PM
    • Airline stocks stretched their losing streak to six sessions today, the longest such stretch since last October and the worst cumulative showing (-8.8%) since shedding 10.9%, also in October.
    • Analysts cite pressure from concerns over capacity growth and the resulting lack of pricing power, as well as a May spike in west coast jet fuel prices due to several unscheduled refinery outages; "jet fuel assumptions at airlines may have to be raised due to the high cost of refining jet fuel on the west coast," Cowen's Helane Becker says.
    • Even as he remains somewhat bullish on the stocks, UBS analyst Darryl Genovesi today cut his earnings estimates this year and next for American (NASDAQ:AAL), Delta (NYSE:DAL) and Alaska Air (NYSE:ALK), and lowered his estimate for Southwest (NYSE:LUV) earnings this year and United (NYSE:UAL) in 2016.
    • Among some of the more active airline stocks, DAL has fallen 11%, JetBlue (NASDAQ:JBLU) has shed 8.7%, AAL has plunged 15%, and LUV has sunk 14% over the past six sessions.
    • ETFs: IYT, JETS
    | Tue, May 26, 9:57 PM | 23 Comments
  • Fri, May 22, 9:02 AM
    | Fri, May 22, 9:02 AM | 14 Comments
  • Thu, May 21, 9:17 AM
    • New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
    • Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
    • Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
    • The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
    • See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
    | Thu, May 21, 9:17 AM | 19 Comments
  • Wed, May 20, 5:52 PM
    • Aggressive positioning by airlines this week has led to some sharp share prices declines.
    • American Airlines indicated it would match lower fares from peers, while Southwest Airlines added capacity on some key routes.
    • Lower oil prices and stronger demand in the business segment has sparked some of the capacity growth.
    • Airline stocks: LUV, AAL, DAL, JBLU, SAVE, ALK, HA, VA, RJET, UAL.
    • Related ETF: JETS.
    | Wed, May 20, 5:52 PM | 30 Comments
  • Wed, May 20, 10:42 AM
    • Airline stocks are making a strong move lower after oil prices react to supply data out of the U.S. and Japan along with renewed tension in Yemen.
    • Some sector analysts have noted the swings in airline share prices (up/down) are outsized compared to the impact on jet fuel prices of daily developments in the crude oil market.
    • Platts has a breakdown of how supply and demand forces in the jet fuel market bring other factors into play.
    • Leading airline decliners: Southwest Airlines (LUV -6.8%), American Airlines Group (AAL -6.1%), JetBlue (JBLU -6.3%), United Continental (UAL -6%), Spirit Airline (SAVE -5.3%), Delta Air Lines (DAL -4.9%), Alaska Air Group (ALK -3.9%), Hawaiian Holdings (HA -4.6%), Republic Airways (RJET -3.5%), Allegiant Travel (ALGT -3.8%).
    • Related ETFs: JETS.
    | Wed, May 20, 10:42 AM | 60 Comments
  • Mon, May 18, 5:24 AM
    | Mon, May 18, 5:24 AM | 20 Comments
  • Tue, May 12, 3:20 PM
    • American Airlines Group (AAL -1.1%) plans to fire off the tricky merger of the US Airways and American flight reservation systems this summer.
    • The integration of the two computer systems is one of the last major wildcards left of the combination of the two carriers.
    • American's reservation system is run by Sabre (SABR +0.9%).
    | Tue, May 12, 3:20 PM | 8 Comments
  • Mon, May 11, 8:19 AM
    • American Airlines Group (NASDAQ:AAL) reports total revenue passenger miles fell 0.3% to 18.1B in April.
    • Total capacity rose 1.3% to 22.1B during the month.
    • The carrier's total load factor was down 130 bps to 81.6% due largely to a 340 bps drop in the international load factor.
    • American expects Q2 passenger revenue per available seat mile to decline 4% to 6% .
    • Q2 pretax margin is forecast to fall in a range of 17% to 19%.
    • AAL -0.39% premarket to $48.85.
    | Mon, May 11, 8:19 AM | Comment!
Company Description
American Airlines Group Inc, through its subsidiaries, operates in the airline industry. The Company has hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York City, Philadelphia, Phoenix and Washington, D.C.
Sector: Services
Industry: Major Airlines
Country: United States