Sat, Feb. 7, 7:00 AM
- Airline stocks have been on a tear over the last six months with plunging oil prices helping to lower costs for carriers.
- A SA scan within the sector of share price gain in relation to Q4 fuel expense declines (Y/Y) is one way to measure which stocks in the sector are getting the biggest boost from the energy market developments (jet fuel price chart).
- Four airlines saw a share price multiplier of over 4X their fuel cost drop-off percentage: Southwest Airlines (NYSE:LUV), Allegiant Travel (NASDAQ:ALGT), JetBlue (NASDAQ:JBLU), and Hawaiian Holdings (NASDAQ:HA).
- United Continental (NYSE:UAL) and Alaska Airlines (NYSE:ALK) were in the next group with a multiple of 3.907 and 3.169, respectively.
- Delta Air Lines (NYSE:DAL) lagged with a multiple of 1.893. Don't blame the company's Trainer refinery which earned a profit of $105M in Q4. Concerns on weak demand in Asia may be the culprit.
- American Airlines Group (NASDAQ:AAL) trailed the sector with a 1.786 multiple, despite a spot-on strategy of scrapping fuel hedging just ahead of the oil market collapse, as integration complexity remains in the background.
- Virgin America, Spirit Airlines, Republic Airways Holdings, and SkyWest Airlines haven't reported Q4 earnings yet, so they weren't included in the comparison.
Wed, Feb. 4, 3:09 PM
- The sharp move lower in crude oil prices isn't going unnoticed by airline investors.
- Wild daily gyrations in airline stocks have become the norm due to the lack of consensus over the direction of jet fuel prices from current levels and the implications on travel demand from a low oil price environment.
- Airline stocks making the most dramatic moves: United Continental (UAL +5.8%), American Airlines Group (AAL +4.3%), Spirit Airlines (SAVE +4.3%), Republic Airways (RJET +4.0%).
- Also rallying: Southwest Airlines (LUV +3.6%), JetBlue (JBLU +3.9%), Allegiant Travel (ALGT +3.6%), Hawaiian Holdings (HA +3%), Delta Air Lines (DAL +2.5%), Alaska Air Group (ALK +2.4%).
- Virgin American (VA +0.4%) is snoozing the news.
Wed, Feb. 4, 7:03 AM
Tue, Feb. 3, 2:46 PM
- Another strong jump in oil prices has tripped up airline stocks again.
- The outlier in the group is Virgin America (NASDAQ:VA) which has managed a 0.2% gain.
- The sector is coming off a Q4 where most companies realized a double-digit decline in fuel expenses with no give back on airfares.
- Decliners: Republic Airways (NASDAQ:RJET) -1.1%, Delta Air Lines (NYSE:DAL) -1.1%, Hawaiian Holdings (NASDAQ:HA) -1.0%, Southwest Airlines (NYSE:LUV) -3.1%, Alaska Air Group (NYSE:ALK) -3.0%, American Airlines Group (NASDAQ:AAL) -2.4%, Allegiant Travel (NASDAQ:ALGT) -3.2%, JetBlue (NASDAQ:JBLU) -2.1%, United Continential (NYSE:UAL) -2.3%.
Mon, Feb. 2, 3:02 PM
- Airline stocks retreat after oil prices make a strong move higher.
- Despite the ups and downs in the sector as developments with the oil market dominates headlines, more analysts are jumping aboard the long-term story on airlines on earnings growth potential and cash flow allocation plans.
- Today it was Raymond James coming in with upgrades on Delta Air Lines , Spirit Airlines (SAVE +1%), and United Continental to a Strong Buy.
- Decliners: Republic Airways (NASDAQ:RJET) -3.8%, Delta Air Lines (NYSE:DAL) -3.0%, Hawaiian Holdings (NASDAQ:HA) -2.7%, Southwest Airlines (NYSE:LUV) -2.5%, Alaska Air Group (NYSE:ALK) -1.9%, American Airlines Group (NASDAQ:AAL) -1.7%, Allegiant Travel (NASDAQ:ALGT) -1.5%, JetBlue (NASDAQ:JBLU) -1.4%, United Continential (NYSE:UAL) -1.2%.
Fri, Jan. 30, 6:58 PM
- Airline stocks took a beating in late trading today as crude oil futures surged 8% to pass $48/bbl, caused by a big drop in U.S. working rigs in the past week and a spike in ISIS attacks on oil-rich northern Iraq.
- SKYW -7.8%, VA -7.6%, SAVE -7.1%, AAL -6%, DAL -5.8%, RJET -5.7%, UAL -5.6%, ALK -4.5%, LUV -3.8%, LFL -3.6%, JBLU -2.1%.
Thu, Jan. 29, 2:29 PM
- Shares of JetBlue (NASDAQ:JBLU) are up 8.75% to $17.15 after the company beats profit estimates with its Q4 report.
- The carrier gave investors a lot to work with on the fuel riddle, forecasting it will spend $1.97 per gallon in Q1 after factoring in hedging.
- JetBlue is raising capacity aggressively, but its load factor and operating expenses per seat readings have held up nicely.
- Baggage fees are also starting to become a factor.
- Oil prices are lower today which is also a factor in the JetBlue rally.
- Previously: JetBlue Airways beats by $0.02, revenue in-line (Jan. 29 2015)
- Previously: Efficiency gains at JetBlue in Q4 even as capacity rises (Jan. 29 2015)
- Shares of JBLU appear to be gliding in for their first +$17 close ever.
Thu, Jan. 29, 8:01 AM
- JetBlue (NASDAQ:JBLU) reports revenue passenger miles increased 8.5% to 9.4B in Q4.
- The company's load factor improved 120 bps to 82.1% on a 7.0% rise in capacity.
- Operating expenses +2.1% during the quarter, although on a per available seat mile basis expenses were down 4.5% to $0.1117.
- JetBlue realized a fuel cost of $2.70 per gallon during the quarter, down 12.7% Y/Y, with 26% of its fuel purchases hedged.
- JBLU +0.8% premarket.
Thu, Jan. 29, 7:34 AM
Wed, Jan. 28, 5:30 PM
- ABT, AIT, ALLY, ALV, ALXN, APD, BABA, BAX, BC, BEAV, BMS, BX, CAH, CAM, CELG, CHKP, CL, CLFD, CMS, COH, COP, CRR, CSH, DGX, DHX, DOW, DST, EMC, EPD, F, GLOP, HAE, HAR, HGG, HOG, HP, HSY, HUB.B, ITG, IVZ, JBLU, KELYA, KEM, KMT, LLL, LRN, LSTR, MD, MJN, MMYT, MTH, NDAQ, NOC, NOK, NYCB, OSTK, OXY, PENN, PHM, POT, PSX, PSXP, RCI, RCL, RDS.A, RGLD, RGS, RTN, RYL, SHW, SILC, SWK, SXC, TCB, TDY, TKR, TMO, TWC, UBSI, VIAB, VLO, VLY, VRTS, WCC, WILN, WRLD, XEL, ZMH
Mon, Jan. 26, 8:23 AM
- Winter Storm Juno is expected to cause widespread flight cancellations on the East Coast this week.
- JetBlue (NASDAQ:JBLU) has the highest number of cancellations today per FlightAware.com.
- United Continental (NYSE:UAL), Southwest (NYSE:LUV), SkyWest (NASDAQ:SKYW) through ExpressJet, Delta Air Line (NYSE:DAL), and American Airlines Group (NASDAQ:AAL) will also be affected.
- What to watch: The impact of major weather events on the bottom line of airlines can be complicated. Losses can be minimal in some cases as load factors actually improve, but if business travelers don't rebook trips, the loss of revenue can be a negative factor.
Thu, Jan. 22, 9:31 AM
- Airline stocks are set to rally as news from the sector continues to be favorable.
- Double-digit fuel cost declines. Check.
- Fares holding. Check.
- Passenger revenue miles outpacing capacity gains. Check.
- Analyst ratings and EPS upgrades. Check.
- Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
Tue, Jan. 20, 7:41 AM
- U.S. airlines are expected to return more cash to shareholders this year and pay down debt with the money saved from lower fuel expenses.
- The carriers may also use the improvement on their balance sheet to push for better financing terms on new aircraft purchases.
- A significant drop in airfares is lower on the list with demand in the U.S. at a strong level.
- Related stocks: VA, LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET.
- Previously: Airline math: Jet fuel down 30%, fares down 5% (Jan. 16 2015)
Fri, Jan. 16, 9:43 AM
- The airline fares component of CPI fell 4.7% Y/Y in December after increasing in both October and November.
- The spot price for jet fuel has dropped by more than 30% over the same time period (chart).
- Hedging strategies vary widely by airline and come into play when estimating profits in the sector.
- Previously: Hedge your bets on airliners (Dec. 23 2014)
- Related stocks: VA, LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET.
Tue, Jan. 13, 5:59 PM
- JetBlue's (NASDAQ:JBLU) December revenue passenger miles rose 5.6% Y/Y to 3.41B, a slowdown from November's 10.1%.
- Available seat miles rose 7.2% to 4.18B, and load factor fell 130 bps to 81.6%. Departures rose 6.5% to 26,774, and average stage length fell 0.5% to 1,109. Seat miles rose 6% in November, and load factor was up 310 bps.
- Shares are nearly unchanged AH.
Tue, Jan. 13, 7:58 AM
- Cowen Research's Helane Becker takes a positive view on pricing in the airline sector for 2015 on her view domestic demand will stay strong enough to keep the pressure off of airlines to drop fares.
- A gauge of recent comments by airline execs seems to indicate the analyst is correct and airfares will be held largely level - despite the sharp drop in oil prices.
- Delta Air Lines CEO: "It’s wonderful that fuel has run down–we love it. There’s a $2 billion opportunity out there if we hold fare levels constant."
- American Airlines Group CEO: "...we don’t have plans to go off and just proactively cut fares."
- Southwest Airlines CEO: "What I would not want to do to customers is take them through the same volatile ride with fares [as 2008], lowered in one day, raised in the next day."
- U.S. carriers: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
JetBlue Airways Corp is passenger airline company. The Company provides passenger airline services in the United States. Its services include Partner airlines, Getaways, Corporate, Cargo, Travel agents, Special assistance and Travel Insurance.
Other News & PR