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
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%).
Mon, Jun. 27, 12:39 PM
- Hawaiian Holdings (HA +4.6%) is a rare gainer among transportation stocks today as Deutsche Bank upgrades shares to Buy from Hold with a $41 price target, saying the vote to leave the E.U. creates uncertainty in near-term demand for air travel to and from the U.K. as well as how the U.K. will feature in a revised E.U.-U.S. Open Skies accord.
- The firm notes that with the IATA warning about a "permanent downward shift" in U.K. passenger volumes of 3%-5% by 2020 following the Brexit vote, U.S. airlines with exposure to the U.K. suffered 8%-11% share declines on Friday.
- Among the Big Three U.S. airlines, Deutsche Bank sees potential downside EPS risk and thus maintains Hold ratings on American (AAL -4.8%), United (UAL -7.2%) and Delta (DAL -4.5%), given that the U.K. market for 2016 represents 6.3% of AAL’s capacity, 5.4% of UAL’s and 2.8% of DAL’s.
- The firm favors domestic names such as Southwest (LUV -3.3%), Spirit (SAVE -2.8%) and JetBlue (JBLU -1.7%), "which should gain from a favorable leisure/discretionary travel outlook."
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, 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.
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, Mar. 8, 2:39 PM
- Airline stocks are down almost across the board after several U.S. carriers reported on February traffic and doled out forecasts on passenger revenue per available seat mile. The closely-watched PRASM metric has been pressured by a broad boost in capacity and heightened competition in regions where ULCC (ultra low cost carriers) scrap for market share.
- Notable decliners today include JetBlue (JBLU -7.7%), Spirit Airlines (SAVE -4.8%), Delta Air Lines (DAL -3.9%), SkyWest (SKYW -3.6%), and Virgin America (VA -3%). Southwest Airlines (LUV +0.5%) is the outlier in the sector after avoiding a forecast for negative Q1 PRASM. The U.S. Global Jets ETF (NYSEARCA:JETS) is down 2.8% on the day.
- Earlier traffic reports: American Airlines, Southwest, JetBlue, SkyWest.
Tue, Mar. 8, 9:17 AM
- Gainers: SUNE +29%. LEU +24%. OMER +14%. BNTC +12%. TERP +11%. URBN +8%. ORIG +7%. SOL +6%. BCRX +5%.
- Losers: PSG -35%. EMITF -18%. OCLR -15%. REXX -14%. EPE -11%. FBR -11%. CRK -10%. LINE -10%. SHAK -9%. VNR -8%. SDRL -8%. BCEI -7%. LNCO -7%. RIO -7%. CRC -7%. BHP -6%. VSLR -6%. BTU -6%. JBLU -6%. ARP -6%. TSEM -6%. DNR -6%. BBL -6%. MT -5%. VALE -5%.
Fri, Feb. 12, 6:11 PM
- In the biggest normalization development to date, U.S. officials will head to Havana Tuesday to sign a deal restarting scheduled commercial air traffic between Cuba and the United States for the first time in more than 50 years.
- The move will formalize an agreement on terms the two countries came to in December. Scheduled air traffic to Cuba from the U.S. ceased shortly after Cuba's revolution in 1959.
- Airlines will have 15 days to bid on routes for dozens of flights per day. But the deal allows for just 20 round trips per day overall between the U.S. and Havana, scarcity that could drive up bids substantially. Nine other international airports in Cuba can get 10 daily round trips.
- The Transportation Dept. will spend about a month collecting information and make a final determination on routes in the summer.
- U.S. air: DAL +0.7%, LUV +2.6%, JBLU +3.7%, UAL +2.9%, AAL +3.6%, VA +2.2%.
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%).
Tue, Feb. 9, 9:06 AM
- Shares of JetBlue (NASDAQ:JBLU) slide in early trading to their lowest level in over six months.
- The airline derives about 30% of its revenue from Mexico where Zika fears have increased over the last week.
- JBLU -3.83% premarket to $18.60.
Thu, Jan. 28, 2:19 PM
- Higher oil prices and an increased level of concern over the Zika virus have hit airline stocks.
- In one of the more curious moves, JetBlue (JBLU -7.3%) is sharply lower despite doubling profit in Q4 and topping earnings estimates.
- Other notable decliners include Virgin America (VA -4.2%), American Airlines Group (AAL -4.2%), Spirit Airlines (SAVE -3.1%), and Delta Air Lines (DAL -3.4%).
- The U.S. Global Jets ETF is down 2.33%.
- Previously: WHO issues warning on Zika virus (Jan. 28)
- Previously: JetBlue Airways beats by $0.05, beats on revenue (Jan. 28)
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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