Tue, Jun. 30, 4:37 PM
- Southwest Airlines (NYSE:LUV) is now the only option for travelers seeking to fly with a major U.S. carrier without paying extra for checked baggage, as JetBlue (NASDAQ:JBLU) says it will begin charging for the first checked piece of luggage.
- Fliers who booked flights before Tuesday will still check a suitcase for free, but those booking last-minute summer vacations and other trips on or after today must pay up to $25 for their first checked bag.
- "JetBlue sees it as an opportunity to unbundle the fares and offer a lower base fare to certain customers and better monetize the bag fee," a Stifel Financial analyst says.
Tue, Jun. 23, 9:25 AM
- Morgan Stanley digs into the airline sector with a wave of initiations.
- Top sector picks are Spirit Airlines (NASDAQ:SAVE), United Continental (NYSE:UAL), Delta Air Lines (NYSE:DAL), and Alaska Air Group (NYSE:ALK) which are set at Overweight.
- The four companies boast attractive free cash flow and EPS growth potential, according to the investment firm.
- America Airlines Group (NASDAQ:AAL) and JetBlue (NASDAQ:JBLU) are given Equal-weight ratings.
- The bear calls from MS on the group are Southwest Airlines (NYSE:LUV) and Virgin America (NASDAQ:VA), both tagged at Underweight.
- Previously: Value plays all around in the airline sector (Jun. 20 2015)
Sat, Jun. 20, 2:45 PM
- Airlines stocks are poised for a breakout as the reality of improved profits overrides concerns on capacity growth, reasons Barron's Jack Hough.
- The publication mirrors the view of many SA commenters that there's a disconnect between valuations in the sector and the degree to which lower jet fuel prices continue to prime operating earnings.
- Take for example no-hedging American Airlines Group (NASDAQ:AAL) which is estimated to save $4B a year from the lower level of jet fuel prices. Other airlines are peeling off some hedges to reap a bigger fuel benefit each quarter.
- Efficiency for U.S. airlines is still solid with a majority of airlines reporting load factors of 80% or higher, although increased competition in some markets has pushed key metric RASM lower. The most recent read on fares came in positive.
- Also in the mix is the continued growth of service fees and consolidation benefits from mergers by legacy carriers.
- P-E ratios of below 12 (based off of 2015 estimates) are common in the sector giving investors something of a value play. Republic Airways (NASDAQ:RJET) can be nabbed with a forward earnings multiple of 6.48. JetBlue (NASDAQ:JBLU) is up 27% YTD, but only trades with a 10.5 P-E collar.
- Barron's identifies American Airlines Group, Delta Air Lines (NYSE:DAL), United Continental (NYSE:UAL), and Southwest Airlines (NYSE:LUV) as four stocks that could rise 15% to 50% over the next year. If the view on the sector is spot-on - JetBlue, Virgin America (NASDAQ:VA), Hawaiian Holdings (NASDAQ:HA), Spirit Airlines (NASDAQ:SAVE), Republic Airways, Allegiant Travel (NASDAQ:ALGT), SkyWest (NASDAQ:SKYW), and Alaska Airlines Group (NYSE:ALK) should also put in gains.
- Related ETFs: JETS
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%.
Thu, Jun. 18, 9:06 AM
- Airline fares rose 5.7% in May on a seasonally adjusted basis, according to the Bureau of Labor Statistics.
- The average fare was still down 6.6% from last year on an unadjusted basis after the sector ran off a string of months with decreases.
- Fares fell 1.3% in April and 1.7% in March.
- If the bump in fares extends it could alleviate some concerns in the industry over capacity growth.
- Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW.
- BLS CPI data
Tue, Jun. 16, 6:59 AM
- JetBlue (NASDAQ:JBLU) is considering a long-range version of the Airbus A321 that would give it the ability to enter new markets in South America and Western Europe, according to a top exec.
- The company already uses the A320 and A321 for the majority of its fleet.
- Currently, JetBlue flies into Columbia and the Caribbean, but not into Brazil.
Wed, Jun. 10, 4:22 PM
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
Sat, May 30, 10:43 AM
- The airline sector has been rattled this month by an indication from Southwest Airlines of a slight increase in capacity and some RevPAR tallies below expectations.
- Concerns on pricing and capacity have held back some analysts from setting higher price targets on the group for the next year.
- Over the last year, most airline stocks have showed a high degree of correlation with oil prices despite all the other factors that impact profits in the sector.
- Southwest Airlines (NYSE:LUV), United Continental (NYSE:UAL), Alaska Airlines Group (NYSE:ALK), and Allegiant Travel (NASDAQ:ALGT) all had a correlation coefficient of -0.90 or lower between their daily closing share price and the level of oil. A mark of -1.0 indicates perfect negative correlation - while 0.0 indicates no correlation and +1.0 is perfect positive correlation.
- American Airlines Group (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), JetBlue (NASDAQ:JBLU), Republic Airways (NASDAQ:RJET), and Hawaiian Airlines (NASDAQ:HA) were all at -0.80 or lower.
- Over a shorter period due to its IPO launch, the correlation coefficient on Virgin America (NASDAQ:VA) vs. oil came in at -0.733.
- The U.S. carriers marching with the most independence from oil prices were Spirit Airlines (NASDAQ:SAVE) at -0.622 and SkyWest (NASDAQ:SKYW) at -0.701.
- Pricing data and correlation coefficients
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, 9:57 PM
- Airline stocks stretched their losing streak to six sessions today, the longest such stretch since last October and the worst cumulative showing (-8.8%) since shedding 10.9%, also in October.
- Analysts cite pressure from concerns over capacity growth and the resulting lack of pricing power, as well as a May spike in west coast jet fuel prices due to several unscheduled refinery outages; "jet fuel assumptions at airlines may have to be raised due to the high cost of refining jet fuel on the west coast," Cowen's Helane Becker says.
- Even as he remains somewhat bullish on the stocks, UBS analyst Darryl Genovesi today cut his earnings estimates this year and next for American (NASDAQ:AAL), Delta (NYSE:DAL) and Alaska Air (NYSE:ALK), and lowered his estimate for Southwest (NYSE:LUV) earnings this year and United (NYSE:UAL) in 2016.
- Among some of the more active airline stocks, DAL has fallen 11%, JetBlue (NASDAQ:JBLU) has shed 8.7%, AAL has plunged 15%, and LUV has sunk 14% over the past six sessions.
- ETFs: IYT, JETS
Fri, May 22, 9:02 AM
- Airline fares fell 1.3% M/M in April, according to the Bureau of Labor Statistics.
- Fares were 7.5% lower than a year ago during the month on an unadjusted basis.
- Previously: Airline stocks stung by worries on pricing and capacity (May. 20 2015)
- Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW.
- Related ETF: JETS
Wed, May 20, 5:52 PM
- Aggressive positioning by airlines this week has led to some sharp share prices declines.
- American Airlines indicated it would match lower fares from peers, while Southwest Airlines added capacity on some key routes.
- Lower oil prices and stronger demand in the business segment has sparked some of the capacity growth.
- Airline stocks: LUV, AAL, DAL, JBLU, SAVE, ALK, HA, VA, RJET, UAL.
- Related ETF: JETS.
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, May 18, 6:50 AM| Mon, May 18, 6:50 AM | Comment!
JBLU vs. ETF Alternatives
JetBlue Airways Corp is passenger airline company. The Company provides passenger airline services in the United States. Its services includePartner airlines, Getaways, Corporate, Cargo, Travel agents, Special assistance and Travel Insurance.
Other News & PR