Wed, Mar. 11, 7:41 AM
- U.S. airlines expect passenger traffic to increase 2% during March and April.
- The group of major carriers is forecast to show a 3% rise in capacity over the period.
- The industry's net profit margin is expected to improve compared to a year ago due to lower fuel expenses.
- The average price on aviation jet fuel in North America is currently down 36.6% from a year ago, but 25.2% higher than the level from a month ago.
- Airline fares fell 3% in January and are expected to have shown a smaller decline in February. March fares are seen as holding steady due to strong business demand.
- U.S. carriers: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
Tue, Mar. 10, 5:27 PM
- United Continental (NYSE:UAL) has begun evaluations to replace its fleet’s Boeing (NYSE:BA) 757s with the upgraded Airbus (OTCPK:EADSF, OTCPK:EADSY) A321 single-aisle jetliner or a possible new model from Boeing, a senior executive says.
- Ron Baur, UAL’s vice president of fleet, told an industry conference that the evaluations are at the conceptual stage as its 757s are comparatively young, still flying regularly on extended routes across the Atlantic that do not require a larger twin-aisle jetliner.
- Boeing is soliciting views on the capabilities of a conceptual jetliner sized between its single-aisle 737 and long-range twin-aisle 787 Dreamliner; its marketing chief said yesterday that customers were indicating a preference for a jet larger than the discontinued 757 that could fly as far as 4,800 nautical miles.
Mon, Mar. 9, 9:02 AM
Fri, Mar. 6, 10:10 PM
- U.S. air carriers Delta (NYSE:DAL), American (NASDAQ:AAL) and United (NYSE:UAL) are pressing the government to modify "open skies" treaties covering three Middle East-based competitors -- some saying they'd fly direct routes to the East if not for unfair subsidies.
- "We're not really competing against airlines, we're competing against governments," Delta's Trevor Banstetter tells Puget Sound Business Journal, suggesting the airlines have become more of an economic development tool for countries like the United Arab Emirates and Qatar.
- The three have spent two years producing a 55-page report they say shows $42B in subsidies and benefits since 2004 given to Emirates airline, Etihad Airways and Qatar Airways. The U.S. three want agreements modified to curtail further expansion to the U.S. -- or, failing that, for the treaties to be revoked.
- The U.S. has made "open skies" agreements, allowing unfettered routes, with 114 countries since 1992. For its part, the government says it's taking the claim seriously but hasn't decided on any consultations with Eastern governments.
- The three Middle East airlines have denied the unfair subsidies claims but say they'll provide a detailed response after reviewing the report.
Wed, Mar. 4, 9:11 AM
- IATA reports global airliners showed passenger growth of 4.6% in January.
- International flights were up 5.4% on a revenue passenger kilometer basis, while domestic routes increased 3.2%.
- Jan. passenger demand by carrier region: Europe +5.0%, Asia-Pacific +4.7%, North America +2.7%, Middle East +11.4%, Latin America +5.6%, Africa -0.7%.
- The timing of the Chinese New Year (February this year) was a factor, notes IATA. Overseas trips by domestic passengers rose an estimated 10% Y/Y during the Chinese New Year holiday.
- Global airline stocks: AAL, UAL, DAL, RYAAY, OTCPK:CPCAY, OTCPK:SINGY, CEA, ZNH, CPA, GOL, LFL, OTCPK:DLAKF, AIDIF, OTCPK:QUBSF, ALK, HA, OTCPK:AIRYY, OTCPK:MLYAF, OTCPK:AFLYY, VLRS, LUV.
Tue, Mar. 3, 10:42 AM
- United Airlines (UAL +1.8%) has no immediate interest in purchasing 777X aircraft from Boeing (BA +1.4%), but thinks the planemaker's older 777-300ER jets may be a good fit for it, said the carrier's Chief Financial Officer, John Rainey.
- United is currently debating whether to swap Boeing 787 Dreamliners it has on order for its first 777-300ERs.
- The older model "could be a quick fix" for United in markets where the company needs additional seats to satisfy demand, Rainey added.
Fri, Feb. 27, 3:50 PM
- United Continental (NYSE:UAL) is the preferred airline stock of UBS.
- The investment firm thinks United can narrow the margin gap with peers and faces less risk on the labor front.
- Shares of UAL are off 2.3% on the day with crude oil prices up by roughly the same percentage.
- 16 out of 20 Wall Street calls on UAL are bullish (Buy/Overweight).
Thu, Feb. 26, 9:15 AM
- Airline fares fell 3.0% Y/Y in the U.S. during January on an unadjusted basis, according to data from the Bureau of Labor Statistics.
- The average fare was down 1.4% M/M.
- The drop in fares over the last few months lags by a wide margin the fuel expense savings reported by carriers.
- Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW,
Thu, Feb. 19, 9:48 AM
- Strong gains across the airline sector after oil prices move in the right direction after inventories increase.
- What to watch: The West Coast port slowdown is now a factor in the jet fuel market (Platts breakdown).
- Gainers: Republic Airways (NASDAQ:RJET) +4.7%, Delta Air Lines (NYSE:DAL) +4.1%, JetBlue (NASDAQ:JBLU) +3.9%, Southwest Airlines (NYSE:LUV) +2.6%, United Continental (NYSE:UAL) +2.8%, American Airlines Group (NASDAQ:AAL) +2.1%, United Continental (UAL) +2.5%, Spirit Airlines (NASDAQ:SAVE) +2.6%, Virgin America (NASDAQ:VA) +2.1%, Allegiant Travel (NASDAQ:ALGT) +1.8%, Hawaiian Holdings (NASDAQ:HA) +1.2%.
Mon, Feb. 9, 10:37 AM
- It's an anxious time for airline stocks with a number of factors swaying sentiment to start the week.
- Oil prices continue to trek higher after OPEC issued an updated outlook on demand.
- Southwest Airlines (LUV -1.9%) showed a drop in load factor during January as its capacity outran passenger revenue miles.
- Another winter storm on the East Coast is also an operational complexity for the sector.
- Decliners: United Continental (NYSE:UAL) -4.7%, Alaska Air Group (NYSE:ALK) -4.2%, Republic Airways (NASDAQ:RJET) -4.1%, JetBlue Airways (NASDAQ:JBLU) -3.6%, American Airlines (NASDAQ:AAL) -3.4%, Delta Air Lines (NYSE:DAL) -3.2%, Hawaiian Holdings (NASDAQ:HA) -2.1%.
Sat, Feb. 7, 7:00 AM
- Airline stocks have been on a tear over the last six months with plunging oil prices helping to lower costs for carriers.
- A SA scan within the sector of share price gain in relation to Q4 fuel expense declines (Y/Y) is one way to measure which stocks in the sector are getting the biggest boost from the energy market developments (jet fuel price chart).
- Four airlines saw a share price multiplier of over 4X their fuel cost drop-off percentage: Southwest Airlines (NYSE:LUV), Allegiant Travel (NASDAQ:ALGT), JetBlue (NASDAQ:JBLU), and Hawaiian Holdings (NASDAQ:HA).
- United Continental (NYSE:UAL) and Alaska Airlines (NYSE:ALK) were in the next group with a multiple of 3.907 and 3.169, respectively.
- Delta Air Lines (NYSE:DAL) lagged with a multiple of 1.893. Don't blame the company's Trainer refinery which earned a profit of $105M in Q4. Concerns on weak demand in Asia may be the culprit.
- American Airlines Group (NASDAQ:AAL) trailed the sector with a 1.786 multiple, despite a spot-on strategy of scrapping fuel hedging just ahead of the oil market collapse, as integration complexity remains in the background.
- Virgin America, Spirit Airlines, Republic Airways Holdings, and SkyWest Airlines haven't reported Q4 earnings yet, so they weren't included in the comparison.
Wed, Feb. 4, 3:09 PM
- The sharp move lower in crude oil prices isn't going unnoticed by airline investors.
- Wild daily gyrations in airline stocks have become the norm due to the lack of consensus over the direction of jet fuel prices from current levels and the implications on travel demand from a low oil price environment.
- Airline stocks making the most dramatic moves: United Continental (UAL +5.8%), American Airlines Group (AAL +4.3%), Spirit Airlines (SAVE +4.3%), Republic Airways (RJET +4.0%).
- Also rallying: Southwest Airlines (LUV +3.6%), JetBlue (JBLU +3.9%), Allegiant Travel (ALGT +3.6%), Hawaiian Holdings (HA +3%), Delta Air Lines (DAL +2.5%), Alaska Air Group (ALK +2.4%).
- Virgin American (VA +0.4%) is snoozing the news.
Tue, Feb. 3, 2:46 PM
- Another strong jump in oil prices has tripped up airline stocks again.
- The outlier in the group is Virgin America (NASDAQ:VA) which has managed a 0.2% gain.
- The sector is coming off a Q4 where most companies realized a double-digit decline in fuel expenses with no give back on airfares.
- Decliners: Republic Airways (NASDAQ:RJET) -1.1%, Delta Air Lines (NYSE:DAL) -1.1%, Hawaiian Holdings (NASDAQ:HA) -1.0%, Southwest Airlines (NYSE:LUV) -3.1%, Alaska Air Group (NYSE:ALK) -3.0%, American Airlines Group (NASDAQ:AAL) -2.4%, Allegiant Travel (NASDAQ:ALGT) -3.2%, JetBlue (NASDAQ:JBLU) -2.1%, United Continential (NYSE:UAL) -2.3%.
Mon, Feb. 2, 3:02 PM
- Airline stocks retreat after oil prices make a strong move higher.
- Despite the ups and downs in the sector as developments with the oil market dominates headlines, more analysts are jumping aboard the long-term story on airlines on earnings growth potential and cash flow allocation plans.
- Today it was Raymond James coming in with upgrades on Delta Air Lines , Spirit Airlines (SAVE +1%), and United Continental to a Strong Buy.
- Decliners: Republic Airways (NASDAQ:RJET) -3.8%, Delta Air Lines (NYSE:DAL) -3.0%, Hawaiian Holdings (NASDAQ:HA) -2.7%, Southwest Airlines (NYSE:LUV) -2.5%, Alaska Air Group (NYSE:ALK) -1.9%, American Airlines Group (NASDAQ:AAL) -1.7%, Allegiant Travel (NASDAQ:ALGT) -1.5%, JetBlue (NASDAQ:JBLU) -1.4%, United Continential (NYSE:UAL) -1.2%.
Fri, Jan. 30, 6:58 PM
- Airline stocks took a beating in late trading today as crude oil futures surged 8% to pass $48/bbl, caused by a big drop in U.S. working rigs in the past week and a spike in ISIS attacks on oil-rich northern Iraq.
- SKYW -7.8%, VA -7.6%, SAVE -7.1%, AAL -6%, DAL -5.8%, RJET -5.7%, UAL -5.6%, ALK -4.5%, LUV -3.8%, LFL -3.6%, JBLU -2.1%.
Fri, Jan. 30, 9:24 AM
- Airfares for flights out of Dallas Love Field and DFW are expected to increase this year, despite the lower fuel costs for airlines across the sector.
- Though the end of the protective Wright Amendment on October 13 brought in some promotional fares to Love Field, those deals are expected to fall by the wayside amid strong demand.
- DFW is the 3rd busiest airport in the U.S. and Love Field ranks in the top 40.
- Carriers impacted by the expected lift in Dallas fares include Virgin America (NASDAQ:VA), American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), United Continental (NYSE:UAL), and private SeaPort Airlines.
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