Wed, May 13, 2:20 PM
- Southwest Airlines (LUV -1.7%) says it can invest to add capacity and new planes even after factoring in a new dividend payout rate and buyback program.
- The company expects to see capacity growth of 7% in 2015 and 6% to 7% in 2016.
- Southwest anticipates its fleet size will increase by 2% in 2016.
- Previously: Southwest Airlines launches new $1.5B buyback program
- Previously: Southwest Airlines declares $0.075 dividend
Wed, May 13, 11:35 AM
Wed, May 13, 11:17 AM
Thu, May 7, 9:04 AM
- Revenue passenger miles outpaced capacity gains by a healthy margin for Southwest Airlines (NYSE:LUV) in April.
- RPMs were up 8.6% Y/Y, compared to the 6.7% increase in available seat miles.
- The company's load factor the month improved 160 bps to 83.1%.
- YTD load factor is +100 bps to 80.9%.
- LUV +0.1% premarket.
Wed, May 6, 7:21 AM
- IATA reports global airline passenger traffic increased 7.4% in March.
- The pace is an acceleration from February's traffic growth of 6.4%.
- The increase in traffic came against a 5.6% gain in capacity.
- International flights were up 7.0% on a revenue passenger kilometer basis, while domestic routes increased 8.0%.
- March international passenger demand by carrier region: Europe +5.4%, Asia-Pacific +11.1%, North America +2.7%, Middle East +9.8%, Latin America +4.3%, Africa -1.1%.
- Load factor across the airline industry rose 130 bps Y/Y to 80.0%.
- Global airline stocks: AAL, UAL, DAL, RYAAY, OTCPK:CPCAY, OTCPK:SINGY, CEA, ZNH, CPA, GOL, LFL, OTCPK:DLAKF, OTCPK:QUBSF, ALK, HA, OTCPK:AIRYY, OTCPK:MLYAF, OTCPK:AFLYY, VLRS, LUV, AVH, OTCPK:JAPSY, OTC:AFRAF, OTC:EJTTF, OTC:WJAFF, OTC:WJAVF, OTCQX:ESYJY, OTCPK:ICAGY.
- Related ETFs: JETS
Fri, May 1, 12:59 PM
- Boeing’s (BA +0.7%) smallest version of the 737 jetliner faces an uncertain future as Southwest Airlines (NYSE:LUV), the carrier that championed the plane, focuses on larger models.
- Southwest is talking with Boeing about switching some or all of its remaining 56 orders for the 737-700 to a version that seats 32 more passengers, COO Mike Van de Ven tells Bloomberg.
- Airlines and plane makers are watching to see whether LUV also will amend its plans to receive the 737 Max 7, an update to the 700 that is due to enter service late this decade; the airline accounts for almost half of the Max 7 aircraft on order, but has fewer of those than the larger Max 8 model.
- "If Southwest converts to the Max 8, then it puts a significant dent into the business case for the Max 7,” says a global aerospace exec with consultant Frost & Sullivan.
Sat, Apr. 25, 5:53 PM
- Airline stocks continue to outperform in 2015 as Q1 reports show strong efficiency gains and significant fuel expense savings.
- Investors get a crack at a sector ETF this week with the launch of the U.S Global Jets ETF (Pending:JETS) on April 30.
- A few tidbits from the fund company on the airline industry are listed below.
- Global ancillary revenue is a major source of growth in the the sector. The add-on sales (a la carte food/drink, advertising, frequent flyer programs, service commissions, baggage fees) are up to $31.5B after airlines only took in about $2.5B in 2007.
- Fleet upgrades and technology initiatives continue to boost efficiency.
- A shortage of pilots could reel in some of the concerns on capacity increases.
- Previously: Fuel savings and earnings give lift to airline stocks (April 24)
- Airline stocks: AAL, UAL, DAL, RYAAY, OTCPK:CPCAY, OTCPK:SINGY, CEA, ZNH, CPA, GOL, LFL, OTCPK:DLAKF, OTCPK:QUBSF, ALK, HA, OTCPK:AIRYY, OTCPK:MLYAF, OTCPK:AFLYY, VLRS, LUV, OTC:RYAOF, RJET, VA, LFL, SAVE, ALGT, CEA, OTC:EJTTF, OTCQX:ESYJY, AVH, OTC:AFRAF, OTCPK:ICAGY, AVH, OTCPK:JAPSY.
Thu, Apr. 23, 8:34 AM
- Southwest Airlines (NYSE:LUV) posted a record revenue tally for Q1 off of a 6.2% increase in passenger revenue and double-digit gain in freight revenue.
- Passenger revenue per available seat mile fell 0.7% to $0.1616.
- Available seat miles (capacity) +6.0% to 32,297B.
- Load factor +80 bps to 80.1%.
- Average fare +0.7% to $158.01.
- Total operating expenses fell 8% to $3.6B even as flights were added.
- Economic fuel cost savings of $450M were struck during the quarter as the average price per gallon fell to 35.1% to $2.00.
- LUV +1.28% premarket to $43.44.
Thu, Apr. 23, 8:22 AM
Wed, Apr. 22, 5:30 PM
- ABBV, AEP, ALK, ALXN, ASPS, AVT, BAX, BBT, BCC, BEAV, BHE, BKU, BMS, BTU, CAB, CAM, CAT, CFX, CLFD, CLI, CMS, COL, COR, CSL, DAN, DGX, DHR, DLX, DNKN, DOW, DPS, DPZ, DST, EQM, EQT, ERIC, FAF, FCX, FNB, GM, GMT, GPK, GRA, HP, HSY, HUB.B, IQNT, IR, IVC, JAH, JCI, JNS, KKR, LAZ, LLY, LTM, LUV, MDP, MDSO, MHO, MJN, MMM, MO, MTH, NDAQ, NUE, NVS, NWE, ORI, PENN, PEP, PG, PHM, PII, PNK, PRLB, PTEN, RS, RTIX, RTN, SFE, SNA, SQNS, STC, SUI, SWK, SXC, SYNT, UAL, UNP, USG, UTEK, WBC, WCC, WNS
Fri, Apr. 17, 8:40 AM
- Airline fares fell 1.7% M/M in March on a seasonally adjusted basis, according to the Bureau of Labor Statistics.
- The average fare was down 5% from last year on an adjusted basis.
- The decrease in fares is due in part to the lag factor of dropping oil prices from the fall and competitive activity in some key markets.
- Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW.
- BLS CPI data
Wed, Apr. 15, 10:20 AM
- Airlines with a high mix of domestic flights look attractive to Deutsche Bank.
- The investment firm leans on the logic of avoiding some of the F/X traps of international routes with the U.S. dollar a bullying force.
- DB lines up Allegiant Travel (ALGT +0.4%), JetBlue (JBLU +1%), Southwest Airlines (LUV +0.5%), and Spirit Airlines (SAVE +0.7%) as top sector picks.
- An important development in the airline industry occurred earlier today when Delta Air Lines tipped it would cut back international capacity next winter. American Airlines (AAL +2.5%) and United Continental (UAL +1.6%) are on watch to see if they match the more conservative strategy.
- Previously: Delta Air Lines +1.9% as results impress, capacity control tipped
Thu, Apr. 9, 11:55 AM
- Airlines stocks are making their typical strong move opposite the direction of oil prices.
- The wild gyrations in the sector appear to be overdone to some analysts and industry watchers as developments in the oil patch crowd out capacity, demand, and pricing trends.
- Fuel costs only accounted for 30% of the operating expenses for U.S. carriers last year, notes U.S. Global Investors CEO Frank Holmes.
- He points out that airlines have also become more rational and are increasing the mix of fuel efficient planes.
- There's also the disparity of airline stocks moving roughly in tandem despite different levels of jet fuel price exposure.
- Previously: Fueling around with airline stocks (Feb. 07 2015)
- Airline stocks on the move today: Hawaiian Holdings (NASDAQ:HA) -3.4%, Republic Airways (NASDAQ:RJET) -1.8%, Virgin America (NASDAQ:VA) -1.5%, American Airlines Group (NASDAQ:AAL) -1.5%, JetBlue (NASDAQ:JBLU) -1.5%, Spirit Airlines (NASDAQ:SAVE) -1.4%, Southwest Airlines (NYSE:LUV) -1.3%, Alaska Air Group (NYSE:ALK) -1.2%.
Thu, Apr. 9, 9:07 AM
- Southwest Airlines (NYSE:LUV) reports revenue passenger miles rose 6.7% Y/Y to 9.6B in March.
- Capacity was up 4.4% to 12.1B available seat miles during the month.
- The carrier's load factor improved 180 bps to 84.5% for March and was up 80 bps to 80.1% for Q1.
- Southwest flew less flights this March, but stretched out the average haul by 0.9% to 988 miles. The average trip length was up 1.5% for Q1 to 978 miles.
- Most of Southwest's airline peers became less efficient during the quarter and month on capacity gains.
- LUV +1.42% premarket to $43.46.
Mon, Apr. 6, 10:10 AM
- Airline stocks trade lower after crude oil prices make a significant move higher.
- Recent capacity increases by global carriers has also reset expectations on some airlines.
- Southwest Airlines (LUV -3%), Virgin America (VA -1.7%), Delta Air Lines (DAL -1.7%), and Spirit Airlines (SAVE -1.3%) have made the biggest downward moves.
Tue, Mar. 31, 3:25 PM
- Airline stocks are on watch this week and next with the new round of monthly traffic and sales reports due out.
- UBS and Credit Suisse both think passenger revenue per available seat mile fell during Q1.
- Fares have been strong for the early part of the year, but capacity gains in some key markets is chipping away at efficiency.
- JetBlue (NASDAQ:JBLU), Alaska Airlines (NYSE:ALK), and Southwest Airlines (NYSE:LUV) have added the most capacity on a percentage basis of the major carriers.
- American Airlines Group (NASDAQ:AAL) has held capacity level.
- Previously: U.S. airlines fares rise in February (Mar. 24 2015)
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