Alaska Air Making The Most Of Its Opportunities
Stephen Simpson, CFA
Stephen Simpson, CFA
Alaska Air Thriving In More Crowded Skies
Stephen Simpson, CFA
Stephen Simpson, CFA
Alaska Air Continues To Hold Its Own
Stephen Simpson, CFA
Stephen Simpson, CFA
Mon, Jul. 25, 9:59 AM
- Alaska Air Group (ALK +1.9%) is higher after Credit Suisse upgrades the airline stock to Outperform from Neutral
- The investment firm points to attractive relative valuation and the upcoming catalysts as the Virgin America merger approaches. Analyst Julie Yates thinks the Virgin deal will close in Q4.
- Shares of ALK have broken back over $65, but CS thinks that's just the beginning with its elevated price target of $85 implying another +30% of upside.
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%.
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.
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%).
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.
Tue, Jun. 7, 6:18 PM
- After racking up a 50% gain in today's regular trading, Gevo (NASDAQ:GEVO) adds another +50.8% AH after announcing that the first two commercial flights using its renewable alcohol to jet fuel flew from Seattle to San Francisco and Washington, D.C.
- Alaska Airlines (NYSE:ALK) estimates the 20% biofuel blend it used in today's two flights will reduce greenhouse gas emissions by ~50%.
- ALK says it is "committed to doing its part to reduce its carbon emissions... Gevo's jet fuel product is an important step forward, in that it has the potential to be scalable and cost effective, without sacrificing performance."
Tue, Jun. 7, 10:45 AM
- Gevo (GEVO +23.9%) spikes higher after announcing that Alaska Airlines (ALK +2%) is scheduled to fly the first commercial flight using Gevo's renewable alcohol to jet fuel later today.
- ALK would become the first airline to use a significant amount of fuel derived from Gevo's process of turning plant products into an alcohol called iosobutonal, from which jet fuel can be made.
- ALK signed an agreement with Gevo in January, citing the promise of alcohol-based fuel technology.
Tue, May 10, 5:53 PM
- Alaska Air Group (NYSE:ALK) has moved up another 1% after hours on news that it's headed to the S&P 500, replacing SanDisk (SNDK +1.4%), which is set to be acquired by Western Digital on Thursday.
- Correspondingly, Texas Roadhouse (NASDAQ:TXRH) has gained 1.3% postmarket as it leaves the SmallCap 600 to replace Alaska Air Group in the MidCap 400, and Cavco Industries (NASDAQ:CVCO) has jumped 7.3% as it heads into the SmallCap 600 to replace Texas Roadhouse.
- The moves are set after the close of trading on Thursday, to coincide with the closure of the SanDisk acquisition.
- Now read A Strong Quarter For Alaska Bodes Well For The Virgin America Acquisition »
Mon, Mar. 28, 3:08 PM
- Virgin America (NASDAQ:VA) received buyout offers from JetBlue (JBLU +3%) and Alaska Air Group (ALK +1.2%), sources tip Bloomberg.
- The company is still talking to both of the bidders.
- A deal announcement could come as soon as next week.
- VA is up 9.47% to $37.40 off the latest devlopment. Some airline sector watchers think it would take an offer in the $40s to win Virgin.
- Previously: Virgin America flies higher amid buyout talk (March 28)
Mon, Mar. 28, 12:58 PM
- Virgin America (VA +3.6%) trades at its highest level of the year as the guessing game continues over which airline company may try to buy out the budget carrier.
- Cowen says JetBlue (NASDAQ:JBLU) is the most likely acquirer of Virgin America, although Alaska Air Group (NYSE:ALK), Delta Air Lines (NYSE:DAL), and Hawaiian Holdings (NASDAQ:HA) could all be in the mix.
- Last week, Frank Holmes, CEO of the U.S. Global Jets ETF (NYSEARCA:JETS), noted that Southwest Airlines (NYSE:LUV) is a natural fit in terms of culture and global opportunities. Many airline insiders think bidding action could take Virgin America's share price into the $40s.
- Previously: Virgin America jumps 12% on report of takeover interest (March 23)
Tue, Feb. 9, 10:22 AM
- Airline stocks are on a rush after getting caught up in the global market sell-off.
- There are plenty of traders and analysts banging the drum that the sector isn't getting the attention it deserves for sub-$30 crude oil prices.
- Leading gainers include Spirit Airlines (SAVE +7.1%), Alaska Air Group (ALK +4%), Hawaiian Holdings (HA +2.7%), Republic Airways (RJET +4.1%), and JetBlue (JBLU +3.3%).
Fri, Jan. 29, 5:30 PM
- Flight attendants and pilots for Horizon Air (ALK +2.7%) voted to ratify new labor contracts, paving the way for the airline to expand its fleet.
- The Association of Flight Attendants approved (with 69% in favor) a one-year extension on a contract that next becomes amendable in July 2019. Teamsters-represented pilots ratified a new eight-year deal, also with 69% approving.
- Attendants will get pay raises, new scheduling language and a preferential bidding system, while pilots will get all of that plus "quality of life enhancements" including new reserve language and a new commuter policy.
- Horizon will move forward with a plan to add regional jets to its fleet of Q400s.
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. 24, 2015, 1:49 PM
- A global travel warning issued by the U.S. Department is impacting several sectors. Hotel stocks are notably weaker, while amusement park stocks are also trailing broad market averages. Airlines are feeling a double whammy from travel demand concerns and a 3% rise in crude oil futures.
- In some cases the sell-off appears to be an overreaction with little evidence in that travel habits will change dramatically, according to some analysts.
- Decliners include Hyatt Hotels (H -1.5%), Hilton Worldwide (HLT -1.1%), Marriott International (MAR -1.8%), JetBlue (JBLU -1.7%), Delta Air Lines (DAL -3.3%), American Airlines Group (AAL -2.4%), United Continental (UAL -3.2%), Allegiant Travel (ALGT -5.3%), Spirit Airlines (SAVE -4.1%), Southwest Airlines (LUV -2.7%), Six Flags (SIX -1.0%), Cedar Fair (FUN -1.0%), Disney (DIS -0.9%), and Sabre (SABR -3.9%), Virgin Amerinca (VA -2.5%), Alaska Air Group (ALK -1.5%).
- Previously: PCLN, EXPE, TRIP sell off after State Department issues travel warning (Nov. 24)
Oct. 9, 2015, 10:29 AM
- Airline stocks are showing some strength in early trading as investors shrug off another uptick in oil prices.
- Solid traffic reports from United Continental and American Airlines Group are turning attention back to the robust profits being churned up in the sector.
- United raised its Q3 profit forecast, while American saw a big jump in its load factor for September in a positive sign and gave its own favorable estimate on margins.
- Gainers: United Continental (UAL +7.1%), American Airlines Group (AAL +4.4%), Delta Air Lines (DAL +2.5%), Hawaiian Holdings (HA +3.9%), Southwest Airlines (LUV +2.6%), Spirit Airlines (SAVE +4.7%), Virgin America (VA +3%), Allegiant Travel (ALGT +3.1%), Alaska Air Group (ALK +1.8%), JetBlue (JBLU +4.9%).
- Related ETF: JETS.
Alaska Air Group, Inc. operates as a holding company, which through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc. provides air transportation services. It operates through three segments: Alaska Mainline, Alaska Regional and Horizon. The Alaska Mainline segment... More
Industry: Regional Airlines
Country: United States
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