Hold On To Spirit Airlines
Lion Fund • 16 Comments
Lion Fund • 16 Comments
Spirit Airlines Could Still Be On Sale
Spirit Airlines: A Solid Derivative Play On The US Airways-American Airlines Deal
Helix Investment Research • 11 Comments
Helix Investment Research • 11 Comments
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. 19, 9:04 AM
- Spirit Airlines (NASDAQ:SAVE) updates guidance in an update to investors.
- Revenue per available seat mile was down 14.3% Y/Y during the quarter to fall on the low end of the company's original guidance. Fare pressure played in to the RASM weakness.
- Capacity was up 23.1% in Q2.
- The company says it recorded adjusted operating margin of approximately 22%. Adjusted cost per available seat mile decreased 8% vs. initial guidance for a drop of 5%.
- Spirit Airlines Investor Update (.pdf)
- SAVE -5.46% premarket to $45.20.
Mon, Jul. 18, 5:35 PM
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%).
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."
Mon, Jun. 20, 9:18 AM
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.
Mon, May 16, 11:57 AM
- U.S. airline stocks track higher after Delta announces a reduction in capacity expectations for the second half of the year.
- Delta's domestic capacity will be cut to +2.5% in Q4, while international capacity is seen as flat to down for the back half of 2016.
- The company also anticipates returning to positive unit revenue growth later this year in what has become the most closely-watched metric in the industry,
- Gainers include SkyWest (SKYW +2.2%), Spirit Airlines (SAVE +2.2%), American Airlines Group (AAL +1.9%), and United Continental (UAL +1.7%).
- The U.S. Global Jets ETF (NYSEARCA:JETS) is up 1.1% on the day.
Tue, Apr. 19, 10:14 AM
- Spirit Airlines (SAVE +6.2%) trades higher after the company issues an investor update.
- Guidance for Q1 operating margin is increased to 21.5% from a prior view of a range for 19.0% to 20.5%.
- Adjusted cost per available seat mile is estimated to be down 2%, also better than the prior forecast.
- "Revenue came in better than expected primarily due to higher than expected ticket revenue per passenger segment," notes the company.
- Now read Spirit Airlines: Ready For Takeoff
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, Feb. 9, 2:18 PM
- Spirit Airlines (SAVE +5.7%) jets higher after reporting a 33% gain in Q4 profit.
- The company realized an 8% reduction in costs per available seat mile to help make up for a lower overall level of fares.
- The average fare during the quarter fell 21% Y/Y to $57.52 per flight segment.
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%).
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)
Spirit Airlines, Inc. is an ultra low-cost, low-fare airline company, which provides affordable travel opportunities principally throughout the domestic U.S., the Caribbean and Latin America. The company manages operations on a system wide basis due to the interdependence of its route structure... More
Industry: Air Services, Other
Country: United States
Other News & PR