Wed, May 20, 10:42 AM
- Airline stocks are making a strong move lower after oil prices react to supply data out of the U.S. and Japan along with renewed tension in Yemen.
- Some sector analysts have noted the swings in airline share prices (up/down) are outsized compared to the impact on jet fuel prices of daily developments in the crude oil market.
- Platts has a breakdown of how supply and demand forces in the jet fuel market bring other factors into play.
- Leading airline decliners: Southwest Airlines (LUV -6.8%), American Airlines Group (AAL -6.1%), JetBlue (JBLU -6.3%), United Continental (UAL -6%), Spirit Airline (SAVE -5.3%), Delta Air Lines (DAL -4.9%), Alaska Air Group (ALK -3.9%), Hawaiian Holdings (HA -4.6%), Republic Airways (RJET -3.5%), Allegiant Travel (ALGT -3.8%).
- Related ETFs: JETS.
Fri, Apr. 24, 11:10 AM
- The airline stocks sector is active today as oil prices retreat and the first batch of Q1 earnings reports come in promising.
- Fuel costs at American Airlines (AAL +2.7%) fell 42% during Q1, while the expense was down 34% at Hawaiian Holdings (HA +11.4%).
- Efficiency metrics in the sector have also impressed for the most part if F/X swings are backed out.
- United Continental (UAL +3.1%), Alaska Air Group (ALK +2.8%), Delta Air Lines (DAL +1.9%), and Virgin America (VA +2.2%) are all showing strength.
Fri, Apr. 24, 7:27 AM
- American Airlines (NASDAQ:AAL) reports profit rose to a record $1.2B in Q1 despite some F/X challenges.
- Total operating expenses fell 7.1% Y/Y to $8.6B off a powerful 42.2% drop in fuel costs.
- Domestic passenger revenue per available seat mile fell 1% to $0.1310 during the quarter on a load factor of 82.9%.
- Total international passenger revenue per available seat mile decreased 4.1% to $0.1147 off a load factor of 75.6%.
- AAL +1.26% premarket.
Thu, Apr. 9, 11:55 AM
- Airlines stocks are making their typical strong move opposite the direction of oil prices.
- The wild gyrations in the sector appear to be overdone to some analysts and industry watchers as developments in the oil patch crowd out capacity, demand, and pricing trends.
- Fuel costs only accounted for 30% of the operating expenses for U.S. carriers last year, notes U.S. Global Investors CEO Frank Holmes.
- He points out that airlines have also become more rational and are increasing the mix of fuel efficient planes.
- There's also the disparity of airline stocks moving roughly in tandem despite different levels of jet fuel price exposure.
- Previously: Fueling around with airline stocks (Feb. 07 2015)
- Airline stocks on the move today: Hawaiian Holdings (NASDAQ:HA) -3.4%, Republic Airways (NASDAQ:RJET) -1.8%, Virgin America (NASDAQ:VA) -1.5%, American Airlines Group (NASDAQ:AAL) -1.5%, JetBlue (NASDAQ:JBLU) -1.5%, Spirit Airlines (NASDAQ:SAVE) -1.4%, Southwest Airlines (NYSE:LUV) -1.3%, Alaska Air Group (NYSE:ALK) -1.2%.
Wed, Apr. 1, 10:55 AM
- Airline stocks are lower on the day with oil rallying again.
- American Airlines Group (AAL -4.1%), Delta Air Lines (DAL -3.8%), and United Continental (UAL -3.7%) are the leading decliners after taking on a Deutsche Bank downgrades on top of the oil development.
- Allegiant Travel (ALGT -2.1%), Spirit Airlines (SAVE -2.1%), and Alaska Airways Group (ALK -2.4%) are also peeling off share price.
- The sector could see some volatility over the next week as carriers report on their March load factors and passenger revenue metrics.
- Previously: Supply and demand questions in the U.S. airline sector
- Previously: Deutsche Bank warns on international airline sales
Thu, Mar. 26, 8:20 AM
- Airline stocks are reacting to the jump in crude oil prices as would be expected.
- Crude oil is markedly higher off of unrest in Yemen.
- Delta Air Lines (NYSE:DAL) is down 4.1% in premarket action, while United Continental (NYSE:UAL) is off 2.9%.
- Southwest Airlines (NYSE:LUV) and JetBlue (NASDAQ:JBLU) are both down about 3%.
- No-hedging American Airlines Group (NASDAQ:AAL) continues to be a curiosity to some traders with its tendency to move in-line with peers on oil swings - despite having a different fuel pricing strategy. AAL -3.4% premarket.
- A deeper dive into jet fuel prices is available at Platts.
Tue, Mar. 17, 8:22 AM
- The airline sector is lined up for a big day with oil prices pointing lower again in early trading.
- American Airlines Group (NASDAQ:AAL) is out in front of peers with an early 5% pop.
- The company continues to get the most bang out of the oil buck in the sector from lower jet fuel prices due to its no-hedge strategy, although capex concerns have kept some investors from jumping in.
- AAL +5.34% to $52.88.
Mon, Mar. 16, 5:21 PM
Wed, Mar. 11, 2:12 PM
- Airline stocks are taking back some ground with oil prices peeling off 1.3%.
- The sector also got a lift when Southwest Airlines topped analyst estimates for revenue passenger miles for February.
- Gainers: United Continental (NYSE:UAL) +2.4%, Southwest Airlines (NYSE:LUV) +1.9%, Virgin America (NASDAQ:VA) +1.6%, Spirit Airlines (NASDAQ:SAVE) +1.5%, American Airlines Group (NASDAQ:AAL) +1.5%, Delta Air Lines (NYSE:DAL) +1.2%.
- Related: Spring preview on U.S. airlines
- Previously: Load factor on the rise at Southwest Airlines
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%.
Mon, Feb. 9, 8:13 AM
- American Airlines (NASDAQ:AAL) reports total revenue passenger miles for January fell 2.8% to 16.8B.
- The carrier's load factor slipped 210 bps to 78.2% as weak demand in the Pacific region contributed.
- Q1 PRASM is forecast to be down 2% to 4%.
- American sees Q1 fuel costs of $1.81 per gallon and pretax margin of 12%-14% vs. 13%-15% prior guidance.
- AAL -1.76% premarket.
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%.
Wed, Jan. 28, 7:41 AM| 10 Comments
Tue, Jan. 27, 11:21 AM
- Execs with American Airlines Group (AAL -3%) said the company will save as much as $5B in 2015 due to a lower level of jet fuel prices.
- That benefit works out to ~$6.97 per outstanding share.
- CEO Douglas Parker took a victory lap on the firm's earnings conference call for his decision to forsake hedging and buy fuel at market prices.
- American thinks it will accelerate aircraft orders with the extra cash in order to take advantage of good financing terms. Shareholders might also see some higher dividend payouts or enjoy increased buybacks.
- Earnings call transcript, webcast
- Previously: American Airlines beats by $0.01, misses on revenue
- Previously: Fuel costs down 17% for American Airlines in Q4
AAL vs. ETF Alternatives
American Airlines Group Inc, through its subsidiaries, operates in the airline industry. The Company has hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York City, Philadelphia, Phoenix and Washington, D.C.
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