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.
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
Wed, May 27, 12:06 PM
- Airline stocks trade higher to help take some of the sting off recent declines generated in the sector.
- Some analysts see the strong free cash flow trends in the industry offsetting concerns over pricing and capacity.
- Hawaiian Holdings (HA +6.7%), United Continental (UAL +3.2%), Spirit Airline (SAVE +2.1%) and JetBlue (JBLU +2.6%) are making the sharpest moves on the day.
- Previously: Airline sector in midst of worst streak in seven months (May 26)
- Related ETFs; JETS.
Tue, May 26, 7:01 PM
Tue, May 26, 5:43 PM
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.
Mon, Apr. 27, 9:40 AM
- Virgin America (NASDAQ:VA) and Hawaiian Holdings (HA +0.6%) are off and running in early trading.
- For Virgin America it's the pulled secondary offering from the company spurring the buying, while Hawaiian Holdings is still riding positive sentiment from last week's earnings report.
- Previously: Hawaiian Holdings beats by $0.05, beats on revenue (Apr. 23 2015)
- Previously: Virgin America pulls secondary offering (Apr. 24 2015)
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.
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%.
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%.
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%.
HA vs. ETF Alternatives
Hawaiian Holdings Inc, through its subsidiaries, is engaged in the scheduled air transportation of passengers and cargo amongst the Hawaiian Islands, between the Hawaiian Islands and certain cities in the United States.
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