Fri, Jan. 16, 9:43 AM
- The airline fares component of CPI fell 4.7% Y/Y in December after increasing in both October and November.
- The spot price for jet fuel has dropped by more than 30% over the same time period (chart).
- Hedging strategies vary widely by airline and come into play when estimating profits in the sector.
- Previously: Hedge your bets on airliners (Dec. 23 2014)
- Related stocks: VA, LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET.
Tue, Jan. 13, 5:59 PM
- JetBlue's (NASDAQ:JBLU) December revenue passenger miles rose 5.6% Y/Y to 3.41B, a slowdown from November's 10.1%.
- Available seat miles rose 7.2% to 4.18B, and load factor fell 130 bps to 81.6%. Departures rose 6.5% to 26,774, and average stage length fell 0.5% to 1,109. Seat miles rose 6% in November, and load factor was up 310 bps.
- Shares are nearly unchanged AH.
Tue, Jan. 13, 7:58 AM
- Cowen Research's Helane Becker takes a positive view on pricing in the airline sector for 2015 on her view domestic demand will stay strong enough to keep the pressure off of airlines to drop fares.
- A gauge of recent comments by airline execs seems to indicate the analyst is correct and airfares will be held largely level - despite the sharp drop in oil prices.
- Delta Air Lines CEO: "It’s wonderful that fuel has run down–we love it. There’s a $2 billion opportunity out there if we hold fare levels constant."
- American Airlines Group CEO: "...we don’t have plans to go off and just proactively cut fares."
- Southwest Airlines CEO: "What I would not want to do to customers is take them through the same volatile ride with fares [as 2008], lowered in one day, raised in the next day."
- U.S. carriers: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
Wed, Jan. 7, 2:25 PM
- Despite the brisk rally in airline stocks, Credit Suisse thinks there is plenty of upside still left.
- "The market has been hesitant to fully price in benefits from the rapid fuel decline and consensus has yet to fully adjust for lower fuel," reads the optimistic CS note.
- Analysts with the firm tap United Continental (NYSE:UAL) as their top sector pick.
- Airline stocks: LUV, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
Mon, Jan. 5, 3:18 PM
- ETF Series Solutions is planning a new ETF based on the airliner sector.
- The fund will hold 25 to 40 airline stocks and attempt to mirror the U.S. Global Jets Index.
- The development comes with airline stocks on a tear after jet fuel prices dropped sharply.
- Two former airline ETFs (FLYX and FAA) didn't survive long enough to cruise through the rally.
- Airline stocks: RYAAY, OTCPK:CPCAY, OTCPK:SINGY, CEA, ZNH, CPA, GOL, LFL, LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, RYAAY, CPA, GOL, LFL, AVH, SAVE, VLRS.
- SEC Form N-1A
Mon, Jan. 5, 1:39 PM
- JetBlue (NASDAQ:JBLU) says it will add service between San Francisco and Las Vegas this month.
- Management projected in the fall the company would grow capacity from 6% to 8% in 2015.
- JBLU 2015 capacity estimates by region: Transcontinental +15% to +17%, Florida +4% to +6%, Latin America +4% to +6%, U.S. East +4% to +6%, U.S. West +3% to +5%, U.S. Central -5% to -3%.
Dec. 31, 2014, 10:32 AM
- American Airlines (AAL +1.7%) and JetBlue (JBLU +1.6%) could benefit if the U.S. relaxes travel restrictions to Cuba.
- The two carriers already offer services for charters to Cuba out of the Tampa airport.
- Airline passenger traffic to Cuba from the U.S. has risen from 7,775 in 2011 to almost 53K through Q3 in 2014, despite the tight current government restrictions.
- Industry watchers think the route could eventually be very popular due to tourism and demand from Cuban-Americans reconnecting with family.
Dec. 31, 2014, 10:07 AM
- Airline stocks are in rally mode again off of momentum driven by the latest slide in oil prices.
- Southwest Airlines (LUV +2.2%) is poised to end the year as the top performing stock of the S&P 500 Index with a +125% rip.
- Though jet fuel hedging strategies vary widely throughout the sector, a prolonged period of lower oil prices will allow all carriers to realize a benefit.
- Gainers: Republic Airways (NASDAQ:RJET) +4.4%, United Continental (NYSE:UAL) +2.4%, Virgin America (NASDAQ:VA) +1.9%, JetBlue (NASDAQ:JBLU) +1.8%, Alaska Air Group (NYSE:ALK) +1.7%, Allegiant Travel (NASDAQ:ALGT) +1.6%, Delta Air Lines (NYSE:DAL) +1.6%, SkyWest (NASDAQ:SKYW) +1.4%.
- Previous: Hedging strategies by airline
Dec. 23, 2014, 10:06 AM
- The type of hedging strategies used by airliners will play a big part in profitability in the sector after the sharp drop in jet fuel prices.
- Delta Airlines (NYSE:DAL) estimates it keeps about 65% of the drop in fuel costs, but will owe $800M to counterparties (the other side of the hedge) if oil is 20% lower on December 31, 2015 from where it stood on October 1, 2014. By Delta's estimation, a penny drop in oil prices is a net $40M to the good side.
- Southwest Airlines (NYSE:LUV) forecasts it will reap $0.80 for every $1 drop in oil prices, but disclosed a $615M liability to creditors if crude oil prices stay below 25% from the level of September 30.
- American Airlines Group (NASDAQ:AAL) will realize the full impact from the drop in fuel costs on its bottom line due to the decision by the company not to hedge at all.
- Other airliners could also have some hedging exposure, although details are light on the strategies employed in the sector.
- What to watch: Q1 reports and conference calls in the sector could be key in filling in some of the blanks. Related stocks: UAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
Dec. 23, 2014, 8:26 AM
- U.S. airliners as a group showed a 2.6% gain to 16.40 (cents) in fares earned per revenue passenger mile in November, according to data from Airlines for America.
- A 4.0% Y/Y increase for the metric on domestic routes offset a 1.4% decline in international flights.
- The YTD mark is up 2.3% to 16.53.
- Related stocks: ALK, AAL, DAL, JBLU, LUV, UAL.
Dec. 15, 2014, 3:14 PM
- Senator Charles Schumer calls on the DOT to probe the airline industry for the high level of airfares despite the drop in jet fuel costs and booming airliner profits.
- By most tabulations, airfares have held steady over the last few weeks.
- Previously: IATA: Profits to rise 26% for airliners in 2015 (Dec. 10 2014)
- U.S. carriers: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
Dec. 10, 2014, 8:36 AM
- IATA forecasts airline profits will rise 10.6% Y/Y to $19.9B this year.
- The outlook from the research firm for 2015 is for 25.6% jump in profit to $25B.
- Consumers can expect to see a 5.1% decline in airfares next year, while cargo shippers should pay 5.8% less.
- On a per-passenger basis, IATA thinks the the airline industry will show a net profit of $7.08 in 2015 vs. $6.02 in 2014 and $3.38 in 2013.
- The profit gains are tied to lower oil prices and improved GDP numbers across key sections of the globe.
- Airline stocks: AAL, UAL, DAL, RYAAY, OTCPK:CPCAY, OTCPK:SINGY, CEA, ZNH, CPA, GOL, LFL, OTCPK:DLAKF, AIDIF, OTCPK:QUBSF, JBLU,ALK, HA, OTCPK:AIRYY, OTCPK:MLYAF, OTCQX:AFLYY, VLRS, LUV, RJET, SAVE, ALGT, VA.
Dec. 9, 2014, 2:25 PM
Dec. 8, 2014, 7:32 AM| Dec. 8, 2014, 7:32 AM | 7 Comments
Dec. 4, 2014, 10:02 AM
- Another big day for airline stocks is setting up with oil prices losing their footing again.
- A positive note from JPMorgan on sector capacity trends is also helping to boost sentiment.
- Gainers: Delta Air Lines (NYSE:DAL) +2.8%, American Airlines Group (NASDAQ:AAL) +3.2%, Hawaiian Holdings (NASDAQ:HA) +6.5%, United Continental (NYSE:UAL) +5.4%, Alaska Air Group (NYSE:ALK) +2.9%, JetBlue (NASDAQ:JBLU) +2.9%, Southwest Airlines (NYSE:LUV) +2.2%, Spirit Airlines (NASDAQ:SAVE) +1.7%, Republix Airways (NASDAQ:RJET) +0.8%, Virgin America (NASDAQ:VA) +1.6%.
Nov. 29, 2014, 10:29 AM
- Analysts with Gasbuddy.com predict some gas stations in the U.S. will offer $2 per gallon gas by Christmas.
- The last time the average price of gas in the U.S. was below $2 was in March of 2009.
- Forecasts from economists vary widely on the overall gas benefit to consumers for Q4. The high end from the group is an outlook of $300 per household, while the low end is closer to $100.
- Most analysts see an immediate lift for retail chains with large distribution channels. Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST), Dollar General (NYSE:DG), Family Dollar (NYSE:FDO), Dollar Tree (NASDAQ:DLTR), Big Lots (NYSE:BIG), and Five Below (NASDAQ:FIVE) come to mind.
- Airline stocks (JBLU, DAL, UAL, LUV, AAL, RJET, ALK, HA, ALGT, VA) have already ripped strong gains off the OPEC news, although some see even more long-term upside as forward fuel hedges get reworked.
- A sustained period of low gas prices should lift restaurant stocks (CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN) say some analysts.
- The gaming sector is (CZR, PNK, BYD, ISLE, CNTY, MCRI, MGM, NYNY) also an off-the-radar pick to bounce.
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.
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