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%.
Wed, Jul. 20, 10:59 AM
- United Continental (UAL +3.6%) tracks higher after management delivered what investors wanted to hear during this morning's post-earnings conference call.
- The company confirmed it will trim capacity in the back half of the year to adjust to demand. The tightened capacity should help improve the closely-watched revenue per available seat mile metric.
- Shares of UAL are threatening to eclipse $50 for the first time since late April.
- UAL conference call webcast
- Previously: United Continental tracks higher after earnings top estimates (July 19)
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%).
Wed, Jul. 6, 8:53 AM
- American Airlines Group (NASDAQ:AAL) is moved straight to Underperform from Outperform by Credit Suisse on a raised level of concern over European travel and PRASM marks in the U.S. Analyst Julie Yates also points to the "abysmal" cash flow at the company. AAL -4.01% premarket to $27.77.
- United Continental (NYSE:UAL) is lowered to Neutral from Outperform by the firm. The price target on UAL is chopped to $42 from $64 due to a reset on earnings expectations and appropriate valuation. UAL -2.21% premarket to $39.40.
- Related ETF: JETS.
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."
Fri, Jun. 24, 10:31 AM
- United Continental (UAL -4.9%) reaches a tentative deal on a collective bargaining agreement that brings together 25K flight attendants under a single labor contract, the Association of Flight Attendants union announces.
- If the union’s membership ultimately approves the deal, it would unite three employee groups that currently work under three separate contracts, closing out one of the biggest stumbling blocks of the carrier’s five-year-old merger.
- New UAL CEO Oscar Munoz has said his priority was reaching a deal with the attendants and the airline's mechanics, who recently rejected a tentative deal in a membership vote; all of UAL’s other unionized groups have joint, post-merger agreements.
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.
Thu, Jun. 2, 7:21 PM
- Panama-based air carrier Avianca (NYSE:AVH) is up 4.1% after hours on news that all or part of the airline will be sold, with interest from the big U.S. carriers, The Wall Street Journal reports.
- United Continental (NYSE:UAL) and Delta Air Lines (NYSE:DAL) are named as possible suitors for the carrier.
- Avianca is one of the continent's biggest carriers, and was established as a strategic alliance between Aerovias del Continente Americano and Grupo TACA Holdings Limited.
- Updated: Avianca Holdings ended after-hours trading at 8 p.m. up 33%.
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. 26, 11:07 AM
- Airline stocks are slumping as they take their cues from the tone on capacity coming from JetBlue (NASDAQ:JBLU).
- JetBlue guided for a Q2 drop of 7% for the closely-watched revenue per available seat mile metric. Capacity is seen rising 9.5% to 11.% during the quarter. During the earnings call, execs tipped off some mild back-half capacity constraint with the full-year forecast for capacity growth standing at 8.5% to 10.5%.
- Shares of JetBlue are down 3.4%, while Southwest Airlines (LUV -1.6%), United Continental (UAL -1.4%), and American Airlines Group (AAL -1.1%) are all falling off sharper than the broad market.
- JetBlue earnings call webcast
Fri, Apr. 22, 4:44 PM
- United Continental (NYSE:UAL) chief Oscar Munoz may have bought the dip today.
- A Form 4 filing shows that Munoz acquired 19,800 shares at $50.53 -- just over $1M worth of stock, and bringing his ownership to 163,675 shares (about $8.3M worth).
- The stock fell 3.9% today and has dropped 12.6% over the past couple of days, after earnings showed passenger revenue/available seat mils on the decline. The company beat profit expectations.
- Shares are up 0.4% after hours.
- Now read New Competition Poses Challenges For United Continental »
Wed, Apr. 20, 4:28 PM
Mon, Feb. 22, 12:37 PM
- United Continental (UAL +2.9%) is finalizing a second deal with Boeing (BA +1.9%) for new single-aisle jets that would block smaller rivals Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) and Embraer (NYSE:ERJ) from gaining a coveted spot in the airline’s fleet, WSJ reports.
- Boeing last month won a deal to sell 40 737-700s to United, which utilizes the 118-seat jet as a staple in its fleet.
- The number of planes in the second order is not known, but any such deal would be a blow for Bombardier, which has sought to build momentum for its new CSeries jets.
United Continental Holdings, Inc. is a holding company and its principal, wholly-owned subsidiaries are United Airlines, Inc. It transport people and cargo through their mainline operations. The company offers satellite based Wi-Fi, including on long-haul overseas routes. United Continental... More
Industry: Major Airlines
Country: United States
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