Thu, Jul. 28, 2:07 PM
Wed, Jul. 27, 12:59 PM
- Southwest Airline (LUV -2%) is lower after JPMorgan downgrades the airline stock to Neutral from Overweight.
- Analyst Jamie Baker thinks the company needs to reconsider its stance on baggage fees and fare levels.
- JP on wage pressure: "Our below-consensus outlook assumes $550m of incremental wage pressure in 2017 for all three unions, broadly in line what pilots alone are seeking, suggesting perhaps we are too generous."
- The price target on LUV is lowered to $34.
Fri, Jul. 22, 9:07 AM
- Buckingham Research downgrades Southwest Airlines (NYSE:LUV) to Neutral after having the airline stock set at Buy. The investment firm's price target is dropped to $40 from $49.
- Credit Suisse lowers its PT on Southwest to $48 from $54.
- Cowen and Company sticks with an Outperform rating on Southwest, but trims its PT to $47.
- SA contributor Stone Fox Capital says Southwest was punished too hard for the narrow $0.02 EPS miss yesterday, noting quarterly profit set a record. By Stone Fox's logic, investors have a good buying opportunity.
- LUV +1.63% premarket to $37.93 to cut into yesterday's post-earnings drop.
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%.
Thu, Jul. 21, 9:15 AM
Thu, Jul. 21, 8:09 AM
- Southwest Airlines (NYSE:LUV) -4.9% premarket after Q2 earnings and revenues missed expectations, and the company warns of a challenging fare environment.
- LUV says Q2 unit revenue, as measured by passenger revenue per available seat mile, fell 3.5% Y/Y after declining for the previous four quarters, reflecting a broad industry decline because of relatively rapid expansions; LUV anticipates unit revenue to fall 3%-4% in the current quarter.
- LUV also expects Q3 and FY 2016 unit costs to increase 2% and 1%, respectively, from year-ago levels, mostly due to additional depreciation expense associated with the accelerated retirement of its classic fleet.
- Q2's average cost of fuel fell to $1.81/gallon from $2.02 in the year-ago quarter, and LUV estimates fuel costs of $2.05/gallon in the current quarter.
- Q2 load factor rose to 85.6% from 84.6% a year ago, traffic jumped 6%, and available seat miles increased 4.8%.
Thu, Jul. 21, 6:32 AM
Wed, Jul. 20, 5:30 PM| Wed, Jul. 20, 5:30 PM | 13 Comments
Fri, Jul. 15, 9:01 AM
- JetBlue (NASDAQ:JBLU) and Southwest Airlines (NYSE:LUV) are selling lower in the premarket session amid broad weakness in the travel sector after the Nice truck attack.
- Some astute observers on Seeking Alpha have pointed out that the two airline stocks tend to bounce back quickly from terrorism shockwaves due to their lack of exposure to global routes outside of the Caribbean.
- JBLU -1.24% premarket to $18.34 and LUV -1.0% to $42.66.
- Previously: Bastille Day massacre weighs on travel stocks (July 15)
Wed, Jul. 13, 2:06 PM
- Southwest Airlines (LUV -1%) announces it filed an application with the Department of Transportation to offer the first U.S. carrier nonstop service between Oakland International Airport and both San Jose del Cabo/Los Cabos and Puerto Vallarta, Mexico,
- The carrier aims to begin the non-stop flights in February of 2017, subject to governmental approvals.
- "Los Cabos, in particular, is the most requested international destination from the East Bay and North Bay that does not have a nonstop option," said a rep from The Port of Oakland.
- Source: Press Release
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.
Fri, Jul. 8, 8:11 AM
- Southwest Airlines (NYSE:LUV) reports passenger traffic increased 6.8% to 11.4898B available seat miles in June. A longer average haul and increase in trips flown contributed to the rise.
- Capacity was up 5.4% to 13.1497B available seat miles during the month.
- June load factor +120 bps to 87.4%.
- YTD load factor +70 bps to 83.2%.
- The company backs a previous estimate that Q2 operating revenue per available seat miles will rise less than 1% during the quarter.
Thu, Jul. 7, 11:14 AM
- The Department of Transportation issues its recommendations on airline service from the U.S. to Cuba.
- The DOT awards Alaska Airlines (NYSE:ALK), American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), privately-held Frontier Airlines, JetBlue (NASDAQ:JBLU), Southwest Airlines (NYSE:LUV), Spirit Airlines (NASDAQ:SAVE), and United Airlines (NYSE:UAL) the right to fly into Havana from Atlanta, Charlotte, Fort Lauderdale, Houston, Los Angeles, Miami, Newark, New York City, Orlando, and Tampa.
- Flights are expected to start this fall, with up to 20 daily frequencies allowed by the current agreement with Cuba.
- DOT press release
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, Jul. 5, 10:35 AM
- Airline stocks are notable laggards on the day after Delta Air Lines (DAL -4.4%) reduced its outlook for Q2 operating margin to 17% (from 21% to 23% prior) and reported on a 5% drop in PRASM during June.
- United Continental (UAL -3.5%) and American Airlines Group (AAL -2.5%) are seen as suffering from some of the same F/X and Brexit pressures abroad, while Spirit Airlines (SAVE -4%) and Allegiant Travel (ALGT -2.2%) continue their jittery trading patterns.
- Southwest Airlines (LUV -1.4%) is also lower, despite a positive weekend profile in Barron's highlighting the stronger balance sheet the airline company has compared to peers and the lack of European headaches.
- Previously: Delta Air Lines lower after issuing June traffic numbers (July 5)
- Related ETF: JETS.
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."
Southwest Airlines Co. provides scheduled air transportation services in the United States and near international markets. The company operates Southwest Airlines and AirTran Airways major passenger airlines that provide scheduled air transportation services. AirTran Airways operates fleet of... More
Industry: Regional Airlines
Country: United States
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