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
Wed, Jan. 13, 1:26 PM| Wed, Jan. 13, 1:26 PM | 8 Comments
Tue, Jan. 12, 8:00 AM
- American Airlines Group (NASDAQ:AAL) reports revenue passenger miles increased 1.5% in December. Domestic RPMs were up 0.6%.
- Total capacity was flat at 22.5B available seat miles during the month. Domestic capacity fell 2.1%.
- December load factor +120 bps to 81.6%. Domestic load factor +220 bps to 84.7%.
- 2015 load factor +100 bps to 83.0%.
- The company expects Q4 passenger revenue per available seat mile to be down 5% to 7%. American will make up the drop in PRASM through lower fuel costs.
- AAL +1.02% premarket to $41.50.
Thu, Jan. 7, 6:49 PM
- Shares of U.S. airlines finished lower today even after analysts from Credit Suisse and Morgan Stanley released upbeat notes on the industry heading into 2016.
- Credit Suisse says the risk/reward for the group remains favorable entering the seventh year of industry profitability, as P/E ratios are among the least expensive in the S&P 500 and carriers have exhibited capital discipline in a low fuel environment, driving permanent capital structure improvements.
- The firm upgraded American Airlines (NASDAQ:AAL) to Outperform from Neutral, joining top preference Delta (NYSE:DAL) as well as United Continental (NYSE:UAL), while downgrading Alaska Air (NYSE:ALK) to Neutral from Outperform as one of the most expensive stocks in the group; Spirit Airlines (NASDAQ:SAVE) needs to show "real evidence" of fundamental improvement and more about the new CEO's strategic direction.
- Southwest Airlines (NYSE:LUV) was upgraded to Equal Weight from Underweight at Morgan Stanley, which said the recent pullback sets up an opportunity ahead of improving pricing.
Tue, Jan. 5, 2:42 PM
- Delta Air Lines (DAL +0.2%) launched the first airfare hike of 2016, according to FareCompare.com
- The price-tracking website reports American Airlines (AAL -0.1%), Southwest Airlines (LUV +2%), and United Continental (UAL -0.5%) have all matched the fare boost of up to $4 per one-way flight.
- The match by Southwest is important in particular as the carrier is usually the tipping point for an industry-wide raise.
- The fare increases are most likely outside of the regional pressure that the majors are putting on discounters Spirit Airlines, Frontier, and Virgin America (NASDAQ:VA).
- Airline stocks are mixed bag on the day. Republic Airways (RJET -14.1%) is down sharply due to a Deutschce Bank downgrade, while there is also nervous trading around SkyWest (SKYW -4.4%). Southwest Airlines is rallying, while a CEO swap has given lift to Spirit Airlines (SAVE +5.9%). Add it all up and the U.S. Global Jets ETF (NYSEARCA:JETS) is flat for the day.
Fri, Jan. 1, 4:24 AM
- American Airlines (NASDAQ:AAL) said its unit U.S. Airways Group merged with the company, as part of efforts to integrate operations of the businesses following their tie-up in 2013.
- "With U.S. Airways merged into American Airlines and U.S. Airways Group merged into American Airlines Group, all of their obligations (including debts and liabilities) become the obligations of American Airlines and American Airlines Group, respectively," said spokesman Matt Miller.
- The carriers have already been using a single booking system and operating as a single brand since October.
Dec. 30, 2015, 8:07 AM
- Major airlines have become more aggressive on pricing in December, according to studies reported by The Wall Street Journal.
- The most intense pricing competition is on the low-end where American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), and United Continental (NYSE:UAL) are going head-to-head with Spirit Airlines (NASDAQ:SAVE), Frontier Airlines, and Virgin America (NASDAQ:VA).
- Fare battles and additional capacity in key U.S. markets have impacted unit revenue in the sector, although not enough to wipe away the cost savings from lower fuel expenses.
- The average fare in the U.S. was down 3.8% Y/Y in November.
- Previously: Airline check: Fares higher in November, oil prices favorable (Dec. 15 2015)
Dec. 23, 2015, 8:47 AM
- Virgin America (NASDAQ:VA) expects the Dallas market to see capacity reductions in 2016 to help ease some of the pricing pressure at both DFW and Love Field.
- The aggressive post-Wright Amendment push by Southwest Airlines (NYSE:LUV) has impacted passenger revenue per available seat mile for carriers such as Virgin, Southwest Airlines (LUV), American Airlines (NASDAQ:AAL), and Spirit Airlines (NASDAQ:SAVE). Those passenger yields could improve next year as the Dallas market normalizes.
- Though Virgin bucked a trend in the U.S. airline industry of declining passenger revenue per available seat mile (PRASM) with a 1.3% gain for the first half of the year, many airlines made up ground on Virgin on the cost side with dramatic drops in cost per available per seat mile. The oil market is still cooperating on that front.
Dec. 16, 2015, 8:27 AM
- The European Union has adopted new rules to make it easier to track jetliners, stepping up international efforts to prevent a repeat of several jetliner disappearances.
- Under the new regulations, airlines will be given three years to install a means of tracking aircraft when flying in normal conditions outside radar coverage, over oceans or remote land.
- They must also have a system for more frequent updates in the event of an emergency.
- Related tickers: AAL, UAL, DAL, RYAAY, OTCPK:CPCAY, OTCPK:SINGY, CEA, ZNH, CPA, GOL, LFL, OTCQX:DLAKF, OTCQX:QUBSF, ALK, HA, OTCPK:AIRYY, OTCPK:MLYAF, OTCPK:AFLYY, VLRS, LUV, AVH, OTCPK:JAPSY, OTC:AFRAF, OTC:EJTTF, OTC:WJAFF, OTC:WJAVF, OTCQX:ESYJY, OTCPK:ICAGY, VLRS, OTCPK:GRPAF
Dec. 15, 2015, 9:09 AM
- Airline fares rose 1.2% M/M in November to follow a 1.5% increase in October, according to the Bureau of Labor Statistics.
- The average fare in November was 3.8% lower than the level from a year ago on an unadjusted basis after promotional activity in the first half of the year factored in.
- The read on airline fares could calm some anxiety over PRASM forecasts from key carriers. It's also worth noting again that fuel costs are down 40% to 50% for carriers on the year-over-year comparison.
- Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW.
- Related ETF: JETS.
- BLS CPI data
- Previously: Calling all value investors: Airline stocks head into 2016 with upside (Dec. 12 2015)
Dec. 12, 2015, 10:46 AM
- Airline stocks confounded some investors this week by not reacting favorably to a sharp drop in crude oil prices or monthly traffic reports which showed improvement in load factors. Southwest Airlines (NYSE:LUV) in particular rattled the market.
- The focus in the sector remains locked on the key PRASM metric (passenger revenue per available seat mile) which has been guided lower by several carriers due to fare pressure.
- "We believe there has been a softening in domestic fares in off-peak periods compared to what seen toward the end of October when airlines provided initial guidance updates, " noted Raymond James in an update to investors.
- Some industry insiders see fares leveling out or increasing next year as airlines adjust to their increased levels of capacity. That development could provide a nice recovery for PRASM with crude oil prices expected to stay low for most of 2016 and booking trends strong.
- Airlines trading with a forward price-to-earnings ratio below 10 include Spirit Airlines (NASDAQ:SAVE), Delta Air Lines (NYSE:DAL), United Continental (NYSE:UAL), American Airlines Group (NASDAQ:AAL), SkyWest (NASDAQ:SKYW), and Virgin America (NASDAQ:VA). JetBlue (NASDAQ:JBLU) and Southwest are just slightly over the 10 PE mark. Many of the above names are listed as top holdings of the U.S. Global Jets ETF (NYSEARCA:JETS).
Dec. 10, 2015, 8:09 AM
- IATA issues a strong outlook for airline sector profits.
- The net profit forecast for 2015 is revised upward to $33B from $29.3B. A net profit margin of 4.6% is expected.
- The outlook for 2016 from IATA is for total profits of $36.3B and a net profit margin of 5.1%.
- 2016 profit forecast by region: North America $19.2B, Europe $8.5B, Asia-Pacific $6.6B, Middle East $1.4B, Latin America $400M, Africa -$100M.
- Strong passenger demand and lower oil prices are two drivers of the profit growth, although profit is impacted significantly in many markets due to the high level of the U.S. dollar, notes the industry-watching group.
- Global airline stocks: AAL, UAL, DAL, RYAAY, OTCPK:CPCAY, OTCPK:SINGY, CEA, ZNH, CPA, GOL, LFL, OTCQX:DLAKF, OTCQX:QUBSF, ALK, HA, OTCPK:AIRYY, OTCPK:MLYAF, OTCPK:AFLYY, VLRS, LUV, AVH, OTCPK:JAPSY, OTC:AFRAF, OTC:EJTTF, OTC:WJAFF, OTC:WJAVF, OTCQX:ESYJY, OTCPK:ICAGY, VLRS, OTCPK:GRPAF.
- Related ETFs: JETS
Dec. 9, 2015, 8:30 AM
- American Airlines Group (NASDAQ:AAL) reports revenue passenger miles increased 4.3% to 16.856B in November. Pacific RPMs were up 21%, while domestic RPMs came in 5.3% higher.
- Capacity was reduced 0.2% to 20.762B available seat miles. International ASMs were down 1.2%. Domestic ASMs -0.1%.
- Total enplanements +4.3% to 15,843,124.
- November consolidated load factor +350 bps to 81.2% with all geographic regions showing improvement.
- YTD load factor +90 bps to 83.1%.
- The company expects Q4 passenger revenue per available seat mile to be down between 5% to 7%. Lower fares may be playing into the PRASM decline.
- AAL +0.56% premarket to $44.80.
Dec. 7, 2015, 3:39 PM
- Fitch Ratings upgrades American Airlines Group (NASDAQ:AAL) to a BB- credit rating from B+.
- The rating agency cites the stronger financial position of the company and says integration risks from the US Airways merger are mostly in the past now.
- American holds $8.9B in cash and short-term investments which provides it with solid footing.
Dec. 4, 2015, 3:58 PM
- OPEC's decision to maintain production levels -- and put more pressure on oil prices -- is boosting a fuel-dependent sector as airline stocks rally.
- Outstripping market gains today: United Continental (UAL +3.8%); Delta Air Lines (DAL +3.2%); and American (AAL +3.9%), as well as smaller carriers. JetBlue (NASDAQ:JBLU) is up 3.4% and Republic Airways (NASDAQ:RJET) is up 3.5%. Hawaiian Holdings rose 2.8% and Spirit (NASDAQ:SAVE) is up 3.4%.
- Meanwhile, Southwest (LUV +4.4%) and Alaska (ALK +5.4%) have hit new all-time highs.
- The airlines are building on some strength from earlier in the week driven by traffic trends.
- Previously: Crude oil closes below $40, no relief in sight for oil industry pain (Dec. 04 2015)
- Previously: Stock futures tilt negative as crude oil slides (Dec. 04 2015)
Nov. 30, 2015, 3:25 PM
- American Airlines Group (AAL -0.8%) announces that passenger services employees approved a new five-year labor deal.
- The company has 14,500 passenger services employees in the U.S. covered by the new contract.
Nov. 27, 2015, 1:52 PM
- Federal regulators rejected a claim by Delta Air Lines (DAL +0.6%) that American Airlines (AAL +0.9%) failed to start service quickly enough to Tokyo's Haneda airport -- meaning that American will keep the right to fly from Los Angeles to Haneda, a favored transit point for business travelers.
- American will have until March 27 to begin flights to Haneda; the carrier had said it would start daily service Feb. 11.
- Only four routes travel to Haneda (closer to Tokyo than Narita International Airport) from the U.S., and Delta surrendered one of them to American in June. But in an Oct. 1 filing it argued American should give up the route if it couldn't start service in 60 days.
- That followed an earlier dispute between the two over service to Haneda from Seattle -- where Delta ceded a route after being required to fly it daily.
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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