Mon, Oct. 19, 7:28 AM
- The board at United Continental (NYSE:UAL) can't decide if it needs to appoint an interim CEO or search for a full-time replacement, reports Bloomberg.
- Sources say the company didn't have enough specific medical information on the status of CEO Oscar Munoz to reach a consensus when it met last Friday.
- Previously: United remains silent on CEO's medical condition (Oct. 19 2015)
Mon, Oct. 19, 2:51 AM
- United Continental (NYSE:UAL) is still silent on the medical condition of its new CEO Oscar Munoz, who was admitted to the hospital on Thursday after suffering a heart attack.
- However, investors are questioning who will lead the company in his absence.
- Munoz' health problems come barely a month after he took on the job of improving the profitability and reputation of United, the No. 2 U.S. carrier by capacity.
- Previously: United Continental confirms CEO hospitalized (Oct. 16 2015)
Fri, Oct. 16, 1:42 PM
- United Continental (UAL -2.9%) confirms Oscar Munoz was admitted to the hospital last night. Media reports indicate the newly-appointed exec suffered a heart attack.
- The company says all operations are continuing normally.
- UAL company statement on CEO
- Previously: WSJ: United CEO Munoz suffers heart attack (updated) (Oct. 16 2015)
Fri, Oct. 16, 1:02 PM
- The WSJ reports new United Continental (UAL -1.6%) CEO Oscar Munoz has suffered a heart attack, and is currently in a Chicago hospital. Shares have moved lower.
- Munoz, formerly CSX's COO, was named United's CEO last month.
- Update: United's board is reportedly waiting to hear about the severity of the attack from doctors and Munoz's family, and will then decide if an interim CEO is needed.
Fri, Oct. 9, 2:58 PM
- United Airlines (NYSE:UAL) plans to order a fleet of 100-seat jetliners from either Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) or Embraer (NYSE:ERJ) if it can agree on terms for a two-year contract extension with its pilots union, Bloomberg reports.
- For UAL, reaching a deal would assure labor peace with an important labor union for new CEO Oscar Munoz and bring back some flying now done by regional partners with cramped, less-efficient 50-seat planes.
- For Bombardier or Embraer, a sale to UAL would be a victory as they try to place their biggest narrow-body models at the largest U.S. carriers.
- Buying new 100-seat planes for mainline flying also would be a lure for pilots since it would generate jobs and appeal to their interest in cutting-edge aircraft.
- UAL shares are higher today after raising its Q3 profit forecast and issuing an upbeat traffic report.
Fri, Oct. 9, 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.
Thu, Oct. 8, 11:31 AM
- Credit Suisse is prepping for the airlines earnings season.
- The investment firm recommends holding Southwest Airlines (LUV -0.5%), Delta Air Lines (DAL -0.7%), and United Continental (UAL -0.5%) ahead of their Q3 prints.
- A neutral stance is taken by CS on American Airlines Group (AAL -0.2%) and Spirit Airlines (SAVE -0.2%).
- What to watch: Q3 reports are expected to mark a bottom in unit revenue as booking catch up to capacity increases and costs decline. Many of the comparables for companies will become easier heading into Q4. Also of importance, earnings calls should help clear up some visibility on carriers' 2016 plans.
Tue, Oct. 6, 11:21 AM
- Airline stocks are reacting to a big jump today in oil prices.
- The entire sector is lower, with Alaska Air Group (ALK -2.6%), United Continental (UAL -2.2%), JetBlue (JBLU -2%), and Southwest Airlines (LUV -1.8%) peeling off the most.
- Hedging activity is still a major factor in how oil price swings impact airlines' earnings. Here's a comparison of how Q2 shook out for some players.
Sat, Sep. 26, 6:03 PM
- Oscar Munoz, who became CEO on Sept. 8, in a letter to staff:
- "Gathering with ramp employees at O’Hare last week, I shared my ambition for United. Heads nodded politely, but beneath that I could feel their skepticism. The sideways glances at their friends on the front lines, the whispers. Yeah, great, Oscar, we’ve been here before..."
- Seth Miller has the full letter here.
- Related: Why And Where To Invest In The Airline Industry (Sep. 24)
- Related: How A Scandal Has Given New Life To United Airlines (Sep. 18)
- Related: United Airlines: A CEO Change Is Not The Worse Move (Sep. 10)
Tue, Sep. 22, 9:29 AM
- United Airlines (NYSE:UAL) is looking to become the first carrier to run flights between the U.S. and Xian, China, according to Reuters.
- The carrier will apply to the DOT to start service to the tourist destination next May.
- The aggressive move by UAL in China follows Delta's purchase of a stake in China Eastern.
Mon, Sep. 21, 6:52 PM
- Wynn Resorts (NASDAQ:WYNN), Viacom (NASDAQ:VIAB) and Dollar Tree (NASDAQ:DLTR) headline Goldman Sachs' list of 25 companies that could post outsized returns even as more and more stocks are moving in lock-step.
- Goldman’s picks come as return dispersion - the performance gap among stocks - has sunk lately amid turmoil in China and concerns about when the Fed will raise interest rates that has pushed stock correlations to their highest level since 2011.
- Given the low-dispersion setting, Goldman says investors should focus on these 25 stocks that have high “dispersion scores” and 15%-plus upside to the firm’s targets: WYNN, VIAB, DLTR, UAL, LUV, URBN, CBG, JNPR, MPC, NFLX, HBI, SIG, CRM, CERN, VLO, KMX, ENDP, CTSH, ISRG, ETFC, TSN, CCE, CI, REGN, GT
Thu, Sep. 17, 11:47 AM
- United Continental (UAL +6.3%) trades higher after working out a credit card deal with Visa and Chase Card Services to extend a current partnership,
- The new agreement is forecast by Cowen and Company to add a dollar to UAL's 2016 EPS. UBS thinks the arrangement adds $5 to shares on a longer view.
- Last year, United brought in $2.9B in sales of miles to banks.
Wed, Sep. 16, 9:38 AM
- Airline fares fell 3.1% M/M in August to follow up on a 5.6% decline in July, according to the Bureau of Labor Statistics.
- The average fare was 6.0% lower than the level from a year ago on an unadjusted basis.
- The drop in fares was expected with jet fuel prices dramatically lower. In some cases, carriers are spending 30% to 45% less on fuel per mile compared to a year ago.
- Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW.
- Related ETF: JETS.
- BLS CPI data
Fri, Sep. 11, 10:33 AM
- Hedging fuel costs in the airline industry is a complex exercise, notes CAPA.
- CAPA has a breakdown of how the average fuel costs at majors Delta Air Lines (DAL +0.1%), American Airlines Group (AAL +1%), and United Continental (UAL -0.1%) compare over the first two quarters and to the previous year.
- Delta's fuel cost per gallon: $2.40 in Q2 of 2015 vs. $2.93 in 2014. $2.93 in Q1 of 2015 vs. $3.03 in 2014
- United's fuel cost per gallon: $2.17 in Q2 of 2015 vs. $3.08 in 2015. $2.12 in Q1 of 2015 vs. $3.18 in 2014.
- American's fuel cost per gallon: $1.90 in Q2 of 2015 vs. $3.03 in 2014. $1.83 in Q1 of 2015 vs. $3.10 in 2014.
- Looking ahead, American appears to be sticking to a plan to forego hedging, while Delta and United are looking to refine their strategy to combat increased volatility with jet fuel prices.
- Previously: Airline stocks react to move in oil
Wed, Sep. 9, 4:42 PM
- United Continental (NYSE:UAL) reports revenue passenger miles increased 1.5% to 19.832B in August. International RPMs were up 3.5%.
- Capacity rose 2.3% to 22.901B during the month.
- August load factor -70 bps to 86.6%. Domestic load factor led the way at 88.5%.
- YTD load factor -50 bps to 83.8%.
- The company estimates Q3 fuel cost per gallon of $1.96-$2.01, inclusive of hedging activity.
Wed, Sep. 9, 11:16 AM
- A management shakeup at United Continental (UAL +0.2%) isn't causing any sense of panic with investors or analysts as most are taking an optimistic view the reset could improve the company's financial performance.
- Investment firms Cowen, Raymond James, and Credit Suisse have all issued positive comments on the long-term impact of the development.
- Shares of UAL are +0.31% today to trail most airline peers by a bit.
- Previously: United Airlines CEO Smisek resigns; CSX exec named successor (Sept. 8)
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