After Ebola, JetBlue Is Worth $15
Three Factors JetBlue Investors Should Consider Before The Next Economic Downturn
Three Point Aviation Services LLC
Three Point Aviation Services LLC
JetBlue: Changing Their Capital Structure For The Better
Tue, Apr. 26, 11:07 AM
- Airline stocks are slumping as they take their cues from the tone on capacity coming from JetBlue (NASDAQ:JBLU).
- JetBlue guided for a Q2 drop of 7% for the closely-watched revenue per available seat mile metric. Capacity is seen rising 9.5% to 11.% during the quarter. During the earnings call, execs tipped off some mild back-half capacity constraint with the full-year forecast for capacity growth standing at 8.5% to 10.5%.
- Shares of JetBlue are down 3.4%, while Southwest Airlines (LUV -1.6%), United Continental (UAL -1.4%), and American Airlines Group (AAL -1.1%) are all falling off sharper than the broad market.
- JetBlue earnings call webcast
Tue, Apr. 26, 7:52 AM
- JetBlue (NASDAQ:JBLU) trades higher after blasting past profit estimates with its Q1 report.
- The company kept revenue passenger miles running just ahead of capacity gains during the quarter. JetBlue's load factor of 84.2% compares favorably to peers.
- Revenue per available seat miles was down 7% to $0.1241.
- Operating expense per available seat mile fell 12.6% to $0.0973. A realized fuel price cost of $1.17 per gallon during the quarter was down 43% Y/Y.
- JetBlue says it's unhedged for fuel costs in Q2.
- Guidance for Q2 includes an expectation for a 9.5% to 11.5% increase in capacity.
- JBLU +2.99% premarket to $20.98.
Tue, Apr. 26, 7:33 AM
Mon, Apr. 25, 5:30 PM
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Thu, Apr. 14, 9:52 AM
- Airline stocks are higher in early trading after Delta Air Lines reported earnings.
- Leading the charge are Spirit Airlines (SAVE +3.8%), American Airlines Group (AAL +3.9%), United Continental (UAL +2.6%), Southwest Airlines (LUV +1.5%), and JetBlue (JBLU +3.2%).
- The rush into the airline names appears to be tied to Delta's stance on capacity growth just as much as the nifty profit beat off of fuel cost savings.
- The below statement from Delta is music to the ears of airline investors.
- "We are focused on getting unit revenues back to a positive trajectory and we will make adjustments to our fall capacity levels if we are not making sufficient progress over the coming months," said Delta exec Glen Hauenstein.
- Now read 4 Top Ranked Airlines Ready To Take Off
Tue, Apr. 12, 12:49 PM
- Stifel Nicolaus expects more consolidation within the airline sector.
- The investment firm sees Hawaiian Holdings (HA +0.5%) as the logical target for JetBlue (JBLU +0.4%) and raises the possibility that Spirit Airlines (SAVE -0.8%) will make a run at PE-owned Frontier.
- The long-term outlook from Stifel on the sector is that it will evolve into the Big 4 (Delta, American, United, Southwest), a super regional (ALK/VA/JBLU/HA), and a super ULCC (SAVE/Frontier/Allegiant).
- Now read 4 Top Ranked Airlines Ready To Take Off
Mon, Apr. 11, 12:25 PM
- The Bureau of Transportation issued a fresh report on airline fuel costs which shows just how deep the cost savings are for the industry.
- The average fuel cost per gallon fell 48% Y/Y to $1.24 in February.
- YTD fuel costs are down 42%.
- Total fuel costs are down 40.5% YTD with consumption up about 2.4%.
- Airlines reap the fuel benefit at different rates due to their hedging strategies.
- Now read these articles Seeking Alpha articles which include analysis on the impact of hedging (listed by airline) JetBlue (NASDAQ:JBLU), Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL), Southwest Airlines (NYSE:LUV).
- Related ETF: JETS.
Mon, Apr. 4, 6:42 AM
- Alaska Air (NYSE:ALK) has agreed to pay $2.6B for Virgin America (NASDAQ:VA), beating rival JetBlue's (NASDAQ:JBLU) bid (and leapfrogging the carrier) to become the fifth-largest U.S. airline by traffic.
- Alaska's offer of $57 per share in cash represents a premium of about 47% to Virgin's Friday's close, and will allow it to heavily expand its presence on the U.S. West Coast.
- Virgin America is 54% owned by Richard Branson's Virgin Group and New York-based Cyrus Capital Partners.
- VA +36.3% premarket
Sat, Apr. 2, 3:01 PM
- Sources say Alaska Air (NYSE:ALK) has emerged as the likely winner of an auction for Virgin America (NASDAQ:VA), which is 54% owned by Richard Branson’s Virgin Group Ltd. and New York-based Cyrus Capital Partners LP.
- Alaska Air is expected to pay more than $2B for Virgin America. VA's current market cap is $1.47B, having surged due to recent news that the company was in play.
- A win by Alaska would be JetBlue's (NASDAQ:JBLU) loss; reports have JetBlue courting Virgin as well.
- Now read The 3rd Possibility For Virgin America That No One Is Talking About »
Fri, Apr. 1, 5:53 PM
- American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), United Continental (NYSE:UAL) and Hawaiian Holdings (NASDAQ:HA) were downgraded to Hold from Buy today at Deutsche Bank, citing key macro indicators that it believes signal a more challenging environment for 2016.
- Deutsche Bank says a slowdown in U.S. corporate profits is a concern given that they are a leading indicator of economic activity, and thus could lead to reduced demand for corporate travel; however, consumer spending and housing have fared better, which should bolster demand for discretionary and leisure travel at least through the summer.
- The firm favors domestic names that are less reliant on corporate travel, such as Southwest Airlines (NYSE:LUV), Alaska Air (NYSE:ALK), JetBlue (NASDAQ:JBLU), Spirit Airlines (NASDAQ:SAVE) and SkyWest (NASDAQ:SKYW).
- Now read U.S. airlines under scrutiny for baggage fees
Fri, Apr. 1, 3:50 PM
- A sale of Virgin America (VA +1.2%) could be announced as early as Monday, according to Fox Business News.
- Bankers says the odds-on favorite to merge with the carrier is JetBlue (NASDAQ:JBLU) due to their complementary fleets.
- Previous coverage: Virgin America reportedly has offers in from JBLU and ALK (March 28)
- Now read The 3rd Possibility For Virgin America That No One Is Talking About
Fri, Apr. 1, 8:12 AM
- JetBlue (NASDAQ:JBLU) announces it expanded its Mint service to St. Lucia and St. Maarten in the Caribbean.
- The premium Mint service now includes eight different destinations.
- Now read Time To Buy JetBlue On Virgin America Merger Rumors
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)
Fri, Mar. 25, 10:13 AM
- JetBlue Technology Ventures announces it will back Silicon Valley startup FLYR as its first investment. The venture capital outfit a subsidiary of JetBlue (NASDAQ:JBLU).
- FLYR offers data-heavy price predictive services for markets in North American and Europe.
- JetBlue Technology Ventures is the first venture capital player backed by an U.S. airline.
Mon, Mar. 21, 5:55 PM
- More airlines are backing off spending billions of dollars to hedge against rising fuel costs after getting burned by low oil prices, WSJ reports, as the speed of the oil price plunge caught the airline industry by surprise and turned some hedges into big money losers.
- Delta Air Lines (NYSE:DAL) and United Continental (NYSE:UAL) say they have no hedges in place for next year after racking up respective $2.3B and $960M in hedging losses last year; on the other hand, American Airlines (NASDAQ:AAL) abandoned hedging in 2014 and enjoyed cheaper fuel costs than many of its rivals.
- Smaller U.S. carriers including JetBlue (NASDAQ:JBLU) and Spirit Airlines (NASDAQ:SAVE) have been minimizing their hedges, and even some European carriers that were big advocates of hedging are scaling back.
- Southwest Airlines (NYSE:LUV) says there's still a place for hedging even after estimating in January that its 2016 hedge book - for 20% of its consumption - was $1B underwater, meaning it will pay $0.50-$0.60/gallon more for jet fuel than some rivals; LUV estimates hedging chopped $2B off its fuel bill during 2001-15.
JetBlue Airways Corp. provides air transportation services. It carries more than 30 million customers a year to 86 cities in the U.S., Caribbean, and Latin America with an average of 850 daily flights. The company offers flights and tickets to more than 82 destinations, with accommodations such... More
Industry: Regional Airlines
Country: United States
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