Fri, Oct. 2, 10:24 AM
- Airline stocks are weaker than broad market averages on heightened concerns of a weak U.S. economy and in reaction to guidance from Delta.
- The slide in the sector comes even with crude oil dropping back below $45.
- In a new SEC filing, Delta says it sees Q3 operating margin of 20% to 21% and passenger unit revenue growth of -4.5% to -5.5%.
- Leading decliners in the sector in early trading are Delta Air Lines (DAL -3.5%), JetBlue Airways (JBLU -3%), Hawaiian Holdings (HA -3.7%), and American Airlines Group (AAL -2.9%).
Fri, Aug. 28, 12:05 PM
- Airline stocks are holding up pretty well considering the strong breakout in oil prices over the last two days.
- The sector didn't rally in full force as oil broke to multi-year lows earlier this week, giving it some leeway with today's move. The wild swings in oil prices also brings the question of hedging strategy back into play. Strategic bets may prime earnings or be a drag depending on timing. American Airlines Group (NASDAQ:AAL) doesn't hedge and just rolls with the market. Delta Air Lines (NYSE:DAL) and United Continental (NYSE:UAL) prefer to hedge against a sudden spike in oil.
- The U.S. Global Jets ETF (NYSEARCA:JETS) is +0.66% on the day, helped in part by a big rally in UAL after its addition to the S&P 500.
Fri, Aug. 21, 3:31 PM
- Airline stocks fall sharply despite another run lower for oil prices.
- Broader macroeconomic concerns, government probes, and capacity worries are now weighing heavy on the sector.
- It's an odd time for the sector, notes S&P Capital IQ's Jim Corridore. “The airlines are probably doing the best jobs running their businesses in the history of the industry,” notes the analyst.
- Airlines recorded record profit in Q2.
- JetBlue (JBLU -5.4%), American Airlines Group (AAL -4.6%), and Delta Air Lines (DAL -4%) are notable airline decliners today.
- Related ETF: JETS.
Fri, Aug. 14, 9:16 AM
- Airline stocks are on watch as U.S. crude oil prices hit their lowest level in six years.
- The sector hasn't rallied with the same vigor as it did with previous swings lower in oil which has some analysts calling for a delayed rally.
- Though many companies left some savings on the table due to hedging activity, fuel cost per mile flown ranged lower by 20% to 45% in the sector during Q2.
- Earlier this week, Raymond James pitched the case that airlines will use fare increases to cover rising labor costs, leaving fuel expense savings for balance sheet moves.
- Related stocks: DAL, UAL, AAL, SAVE, RJET, HA, ALK, JBLU, VA, ALGT, LUV.
- Related ETF: JETS.
Wed, Jul. 15, 7:57 AM
- Delta Air Lines (NYSE:DAL) beat estimates with its Q3 report even after with revenue getting clipped by 2 percentage points due to F/X swings.
- Domestic revenue rose 4.9% to $4.713B to help offset currency-influenced slides for Atlantic, Pacific, and Latin America routes. The domestic business also had the highest yield for Delta.
- Consolidated capacity was up 3.4% during the quarter.
- Delta's fuel expense was $463M lower than a year ago as reduced fuel prices and a $77M profit bump from the Trainer refinery helped to offset $600M in settled hedging losses.
- Guidance: Delta expects an unit revenue drop of 4.5% to 6.5% in Q3 and operating margin of 19% to 21%. System capacity is seen rising ~3$.
- Previously: Delta Air beats by $0.06, beats on revenue (Jul. 15 2015)
- DAL -0.6% premarket.
Wed, Jul. 15, 7:31 AM
Tue, Jul. 14, 11:04 AM
- It's a topsy-turvy day for the airline sector with JetBlue (JBLU +1.5%) impressing with its June traffic numbers and Spirit Airlines (SAVE -8.5%) disappointing with guidance.
- The bigger story might be the forecast on oil prices after the Iran nuclear deal was hammered out.
- Though oil prices haven't moved off dramatically with the timing of excess supply on the market unknown, the development is a long-term consideration for airlines which are looking for a sustained period of lower jet fuel prices.
- Also on the radar, capacity concerns have been dialed back a bit over the last week, while a report yesterday on booming ancillary revenue in the sector painted a bright picture.
- Trading is mixed on Delta Air Lines (DAL +0.2%), American Airlines Group (AAL -0.8%), United Continental (UAL -0.5%), Virgin America (VA -0.4%), Allegiant Trading (ALGT -0.8%), Hawaiian Holdings (HA -0.5%), Alaska Airl Group (ALK +0.4%), Republic Airway (RJET -1.9%), and Southwest Airlines (LUV -0.4%).
- There's always the U.S. Global Jets ETF (NYSEARCA:JETS) for a broad sector play.
- Previously: Load factor impresses at JetBlue (Jul. 14 2015)
- Previously: Spirit Airlines cuts 2015 op. margin guidance; shares -4.8% (Jul. 13 2015)
Wed, Jul. 1, 2:31 PM
- A DOJ spokeswoman states the agency is probing potential "unlawful coordination" between some airlines. The AP states a document obtained by the news service indicates the DOJ is "investigating whether airlines are colluding to grow at a slower pace as part of an effort to keep airfares high." No word yet on which airlines are being probed.
- Airline stocks have sold off in response. Decliners include United Continental (UAL -4.3%), American Airlines (AAL -4.1%), Southwest (LUV -4.5%), Delta (DAL -4.2%), Alaska Air (ALK -1.7%), Hawaiian Holdings (HA -4.8%), JetBlue (JBLU -5%), Spirit Airlines (SAVE -3.1%), SkyWest (SKYW -4.1%), and Virgin America (VA -1.9%).
- The U.S. Global Jets ETF (NYSE:JETS) is down 2.8%.
Fri, Jun. 19, 10:31 AM
- Airline stocks rally off of a drop in oil prices and a week of declining concerns on unrestrained capacity growth.
- JPMorgan added to sentiment with a positive note on airline stocks in which it called the group oversold recently.
- The read on U.S. fares earlier this week was also positive.
- American Airlines Group (AAL +4.3%), United Continental (UAL +3.5%), Delta Air Lines (DAL +3%), JetBlue (JBLU +2.9%), and Hawaiian Holdings (HA +2.5%) are making the strongest gains in the sector.
- The U.S. Global Jets ETF (NYSE:JETS) is up 1.60%.
Wed, Jun. 10, 10:30 AM
- The EPA says greenhouse gases from aircraft endanger human health, a finding that begins a process to regulate greenhouse gas emissions from the aviation industry, the latest sector to be regulated under the Clean Air Act after cars, trucks and power plants.
- The endangerment finding allows the EPA to implement domestically a global carbon dioxide emissions standard being developed by the International Civil Aviation Organization; the airline industry favors a global standard over individual national standards since airlines operate all over the world and want to avoid a patchwork of rules and measures.
- GEVO, which has been working on renewable fuels for airplanes, is +3.5% today and +27% so far this month in anticipation of the EPA findings.
- Also higher are REGI +2%, SZYM +2.5%, AMRS +2%.
- Potential related stocks: AAL, UAL, SAVE, DAL, ALK, HA, SKYW, LUV, JBLU, VA
Tue, Jun. 9, 10:58 AM
- The jittery airline sector is having a volatile day once again.
- Capacity concerns have been the major focus of sellers, although the strong move higher of oil prices today is also in the background.
- American Airlines Group reported a drop in its load factor earlier as capacity growth came in ahead of revenue passenger miles.
- Though Raymond James issued a biting downgrade on American, United Continental, and Delta yesterday - some analysts such as Sterne Agee CRT's Michael Derchin think the pessimism is overdone.
- Q2 conference calls could calm fears on capacity running hot, reasons the analyst.
- A higher level of buybacks in the sector and reasonable valuations based on earnings projections are also factors.
- Sector watch: Alaska Air Group (ALK -6.4%), Southwest Airlines (LUV -5.8%), SkyWest (SKYW -3.4%), Hawaiian Holdings (HA -4.7%), Spirit Airline (SAVE -4.4%), Delta Air Lines (DAL -3.7%), Allegiant Travel (ALGT -3.6%), Republic Airways (RJET -2.9%), Virgin America (VA -2.6%), United Continental (UAL -1.8%), American Airlines Group (AAL -2%), JetBlue (JBLU -1.9%).
- The U.S. Global Jets ETF (NYSE:JETS) is down 2.96% on the day.
- Previously: American Airlines Group's capacity up 2% in May
Mon, Jun. 1, 3:56 PM
- Southwest Airlines (LUV +2.3%) CEO Gary Kelly brought some cheer to the airline sector when he told Bloomberg TV it will increase capacity this year at a 7% rate - instead of the 8% pace tipped off last month.
- "We’re going to make sure we manage accordingly to the low end of the range. That should address some of the concerns of our investors,” said Kelly.
- Alaska Air Group (ALK +2.2%), American Airlines Group (AAL +4.3%), Delta Air Lines (DAL +3.4%), and United Continental (UAL +3.2%) all reacted positively to the cautious stance from Southwest.
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.
Wed, May 13, 7:41 AM
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.
Wed, Apr. 15, 7:49 AM
- Delta Air Lines (NYSE:DAL) reports traffic increased 3.6% in Q1.
- The company's operating margin adjusted for items rose 90 bps to 8.8%.
- Foreign exchange swings lopped off $105M from Delta's revenue during the quarter. Cargo revenue was flat year-over-year.
- Delta's consolidated yield for the period was -0.4% with Pacific routes (-8.2%) and regional carriers (-3.1%) the most inefficient parts of the business.
- The load factor fell 100 bps to 81.7%.
- Number of aircraft in operation +3 Y/Y to 912. Number of employees +3% to 81,055.
- The company saw fuel expenses increase $23M as settled hedging losses offset the impact of lower jet fuel prices. The average fuel cost per gallon was $2.93.
- The Trainer refinery produced a profit of $86M for the three months.
- Guidance: Delta says it plans to reduce international capacity by 3% for the winter schedule with a focus on cutting flights in regions most impacted negatively by a strong U.S. dollar. Operating margin of 16% to 18% is forecast on an assumed fuel price of $2.35-$2.40. System capacity is seen rising 3% next quarter.
- DAL +1.93% premarket to $43.91.
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