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Fri, Jan. 29, 7:53 PM
- Southwest Airlines (LUV +3.8%) and the union representing its flight instructors have come to a tentative deal, just four weeks after the current contract became amendable.
- The Transport Workers Union Local 557 came to the deal on behalf of the represented instructors. The union will share terms over the next few weeks and if ratified, the new deal would be amendable at the end of 2019.
Wed, Jan. 13, 3:54 PM
- The transportation sector is down sharply across the board on broad macroeconomic concerns.
- Airline decliners include SkyWest (SKYW -6.9%), Spirit Airlines (SAVE -6.1%), United Continental (UAL -5.5%), Southwest Airlines (LUV -5.3%), and American Airlines (AAL -4.6%).
- Railroad movers include CSX (CSX -5.5%), Norfolk Southern (NSC -5.9%), Genesee & Wyoming (GWR -6.3%), Canadian Pacific (CP -5.6%), and Kansas City Southern (KSU -4.1%).
Tue, Jan. 5, 2:42 PM
- Delta Air Lines (DAL +0.2%) launched the first airfare hike of 2016, according to FareCompare.com
- The price-tracking website reports American Airlines (AAL -0.1%), Southwest Airlines (LUV +2%), and United Continental (UAL -0.5%) have all matched the fare boost of up to $4 per one-way flight.
- The match by Southwest is important in particular as the carrier is usually the tipping point for an industry-wide raise.
- The fare increases are most likely outside of the regional pressure that the majors are putting on discounters Spirit Airlines, Frontier, and Virgin America (NASDAQ:VA).
- Airline stocks are mixed bag on the day. Republic Airways (RJET -14.1%) is down sharply due to a Deutschce Bank downgrade, while there is also nervous trading around SkyWest (SKYW -4.4%). Southwest Airlines is rallying, while a CEO swap has given lift to Spirit Airlines (SAVE +5.9%). Add it all up and the U.S. Global Jets ETF (NYSEARCA:JETS) is flat for the day.
Dec. 8, 2015, 1:10 PM
- Southwest Airlines (LUV -8.9%) is down sharply after warning of flat to -1% revenue per available seat mile growth in Q4.
- Despite strong traffic growth from Southwest, lower fares or December bookings activity could be holding back the RASM metric.
- Still, with crude oil reaching new lows today, some analysts see a bit of an over-reaction to the report.
- Previously: Traffic dazzles for Southwest Airlines in November (Dec. 8)
Dec. 4, 2015, 3:58 PM
- OPEC's decision to maintain production levels -- and put more pressure on oil prices -- is boosting a fuel-dependent sector as airline stocks rally.
- Outstripping market gains today: United Continental (UAL +3.8%); Delta Air Lines (DAL +3.2%); and American (AAL +3.9%), as well as smaller carriers. JetBlue (NASDAQ:JBLU) is up 3.4% and Republic Airways (NASDAQ:RJET) is up 3.5%. Hawaiian Holdings rose 2.8% and Spirit (NASDAQ:SAVE) is up 3.4%.
- Meanwhile, Southwest (LUV +4.4%) and Alaska (ALK +5.4%) have hit new all-time highs.
- The airlines are building on some strength from earlier in the week driven by traffic trends.
- Previously: Crude oil closes below $40, no relief in sight for oil industry pain (Dec. 04 2015)
- Previously: Stock futures tilt negative as crude oil slides (Dec. 04 2015)
Dec. 2, 2015, 12:17 PM
- Transportation stocks are lower on the day on some broad macroeconomic concerns. Some BAML downgrades in the sector are also weighing on sentiment.
- Trading is notably weak in CXS Corp (CSX -2.3%), American Railcar Industries (ARII -2.6%), Kansas City Southern (KSU -1.9%), YRC Worldwide (YRCW -5.7%), Heartland Express (HTLD -3.7%), Swift Transportation (SWFT -3%), FedEx (FDX -0.9%), UPS (UPS -0.5%), Air Transport Services (ATSG -1.7%), and Matson (MATX -2.5%).
- A notable exception to the sector slide is airline stocks which are showing strength after Delta Air Lines (DAL +2.7%) reported some eye-opening capacity constraint. The major carrier increased passenger revenue per available seat mile sand load factor during November. A 3% decline in crude oil prices is also factoring in to the rally in airline stocks.
- United Continental (UAL +3.2%), Hawaiian Holdings (HA +2.9%), Southwest Airlines (LUV +2.3%), and Republic Airways Holdings (RJET +4.4%) are all solidly higher.
- The Dow Jones Transportation Average is down 0.8% off the conflicting forces of gravity.
- Related ETFs: IYT, XTN, JETS.
Nov. 24, 2015, 1:49 PM
- A global travel warning issued by the U.S. Department is impacting several sectors. Hotel stocks are notably weaker, while amusement park stocks are also trailing broad market averages. Airlines are feeling a double whammy from travel demand concerns and a 3% rise in crude oil futures.
- In some cases the sell-off appears to be an overreaction with little evidence in that travel habits will change dramatically, according to some analysts.
- Decliners include Hyatt Hotels (H -1.5%), Hilton Worldwide (HLT -1.1%), Marriott International (MAR -1.8%), JetBlue (JBLU -1.7%), Delta Air Lines (DAL -3.3%), American Airlines Group (AAL -2.4%), United Continental (UAL -3.2%), Allegiant Travel (ALGT -5.3%), Spirit Airlines (SAVE -4.1%), Southwest Airlines (LUV -2.7%), Six Flags (SIX -1.0%), Cedar Fair (FUN -1.0%), Disney (DIS -0.9%), and Sabre (SABR -3.9%), Virgin Amerinca (VA -2.5%), Alaska Air Group (ALK -1.5%).
- Previously: PCLN, EXPE, TRIP sell off after State Department issues travel warning (Nov. 24)
Oct. 22, 2015, 9:04 AM
- Southwest Airlines (NYSE:LUV) is higher after the company reported Q3 profit improved 78% from a year ago.
- Revenue passenger miles were up 7.6% to 30.559B, while capacity increased at the same rate to 36.36B available seat miles.
- Southwest's load factor was up 10 bps to 85.4%.
- Costs per available seat mile fell 9.1% to $0.1126 with lower fuel expenses a major factor.
- The company ended the quarter with 692 aircraft in operation, compared to 685 a year ago.
- Previously: Southwest Airlines beats by $0.02, beats on revenue (Oct. 22 2015)
- LUV +3.24% premarket to $42.35.
Oct. 9, 2015, 10:29 AM
- Airline stocks are showing some strength in early trading as investors shrug off another uptick in oil prices.
- Solid traffic reports from United Continental and American Airlines Group are turning attention back to the robust profits being churned up in the sector.
- United raised its Q3 profit forecast, while American saw a big jump in its load factor for September in a positive sign and gave its own favorable estimate on margins.
- Gainers: United Continental (UAL +7.1%), American Airlines Group (AAL +4.4%), Delta Air Lines (DAL +2.5%), Hawaiian Holdings (HA +3.9%), Southwest Airlines (LUV +2.6%), Spirit Airlines (SAVE +4.7%), Virgin America (VA +3%), Allegiant Travel (ALGT +3.1%), Alaska Air Group (ALK +1.8%), JetBlue (JBLU +4.9%).
- Related ETF: JETS.
Aug. 14, 2015, 9:16 AM
- Airline stocks are on watch as U.S. crude oil prices hit their lowest level in six years.
- The sector hasn't rallied with the same vigor as it did with previous swings lower in oil which has some analysts calling for a delayed rally.
- Though many companies left some savings on the table due to hedging activity, fuel cost per mile flown ranged lower by 20% to 45% in the sector during Q2.
- Earlier this week, Raymond James pitched the case that airlines will use fare increases to cover rising labor costs, leaving fuel expense savings for balance sheet moves.
- Related stocks: DAL, UAL, AAL, SAVE, RJET, HA, ALK, JBLU, VA, ALGT, LUV.
- Related ETF: JETS.
Jul. 23, 2015, 9:15 AM
Jul. 23, 2015, 7:31 AM
- Southwest Airlines (NYSE:LUV) says it generated record GAAP operating income of $1.1B in Q2.
- Passenger revenue was up 2.1% to $4.852B, while freight revenue was 4.6% higher at $46M.
- Wages and benefit expenses +14.3% to $1.61B.
- Fuel savings were significant during the quarter with the economic fuel cost dropping 33% to $2.02 per gallon.
- Average passenger fare -3.4% to $157.51.
- Load factor +70 bps to 84.6%.
- Passenger revenue per available seat mile -4.6% to $0.1330.
- Return on invested capital (ex-taxes and special items) jumped to 28.2% from 17.1% a year ago.
- Previously: Southwest Airlines beats by $0.01, misses on revenue
- LUV +3.16% premarket to $36.23.
Jul. 14, 2015, 11:04 AM
- It's a topsy-turvy day for the airline sector with JetBlue (JBLU +1.5%) impressing with its June traffic numbers and Spirit Airlines (SAVE -8.5%) disappointing with guidance.
- The bigger story might be the forecast on oil prices after the Iran nuclear deal was hammered out.
- Though oil prices haven't moved off dramatically with the timing of excess supply on the market unknown, the development is a long-term consideration for airlines which are looking for a sustained period of lower jet fuel prices.
- Also on the radar, capacity concerns have been dialed back a bit over the last week, while a report yesterday on booming ancillary revenue in the sector painted a bright picture.
- Trading is mixed on Delta Air Lines (DAL +0.2%), American Airlines Group (AAL -0.8%), United Continental (UAL -0.5%), Virgin America (VA -0.4%), Allegiant Trading (ALGT -0.8%), Hawaiian Holdings (HA -0.5%), Alaska Airl Group (ALK +0.4%), Republic Airway (RJET -1.9%), and Southwest Airlines (LUV -0.4%).
- There's always the U.S. Global Jets ETF (NYSEARCA:JETS) for a broad sector play.
- Previously: Load factor impresses at JetBlue (Jul. 14 2015)
- Previously: Spirit Airlines cuts 2015 op. margin guidance; shares -4.8% (Jul. 13 2015)
Jul. 1, 2015, 2:31 PM
- A DOJ spokeswoman states the agency is probing potential "unlawful coordination" between some airlines. The AP states a document obtained by the news service indicates the DOJ is "investigating whether airlines are colluding to grow at a slower pace as part of an effort to keep airfares high." No word yet on which airlines are being probed.
- Airline stocks have sold off in response. Decliners include United Continental (UAL -4.3%), American Airlines (AAL -4.1%), Southwest (LUV -4.5%), Delta (DAL -4.2%), Alaska Air (ALK -1.7%), Hawaiian Holdings (HA -4.8%), JetBlue (JBLU -5%), Spirit Airlines (SAVE -3.1%), SkyWest (SKYW -4.1%), and Virgin America (VA -1.9%).
- The U.S. Global Jets ETF (NYSE:JETS) is down 2.8%.
Jun. 10, 2015, 10:30 AM
- The EPA says greenhouse gases from aircraft endanger human health, a finding that begins a process to regulate greenhouse gas emissions from the aviation industry, the latest sector to be regulated under the Clean Air Act after cars, trucks and power plants.
- The endangerment finding allows the EPA to implement domestically a global carbon dioxide emissions standard being developed by the International Civil Aviation Organization; the airline industry favors a global standard over individual national standards since airlines operate all over the world and want to avoid a patchwork of rules and measures.
- GEVO, which has been working on renewable fuels for airplanes, is +3.5% today and +27% so far this month in anticipation of the EPA findings.
- Also higher are REGI +2%, SZYM +2.5%, AMRS +2%.
- Potential related stocks: AAL, UAL, SAVE, DAL, ALK, HA, SKYW, LUV, JBLU, VA
Jun. 9, 2015, 10:58 AM
- The jittery airline sector is having a volatile day once again.
- Capacity concerns have been the major focus of sellers, although the strong move higher of oil prices today is also in the background.
- American Airlines Group reported a drop in its load factor earlier as capacity growth came in ahead of revenue passenger miles.
- Though Raymond James issued a biting downgrade on American, United Continental, and Delta yesterday - some analysts such as Sterne Agee CRT's Michael Derchin think the pessimism is overdone.
- Q2 conference calls could calm fears on capacity running hot, reasons the analyst.
- A higher level of buybacks in the sector and reasonable valuations based on earnings projections are also factors.
- Sector watch: Alaska Air Group (ALK -6.4%), Southwest Airlines (LUV -5.8%), SkyWest (SKYW -3.4%), Hawaiian Holdings (HA -4.7%), Spirit Airline (SAVE -4.4%), Delta Air Lines (DAL -3.7%), Allegiant Travel (ALGT -3.6%), Republic Airways (RJET -2.9%), Virgin America (VA -2.6%), United Continental (UAL -1.8%), American Airlines Group (AAL -2%), JetBlue (JBLU -1.9%).
- The U.S. Global Jets ETF (NYSE:JETS) is down 2.96% on the day.
- Previously: American Airlines Group's capacity up 2% in May
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