- The company beat Q2 consensus on the top line, but missed on the bottom line.
- We are still bearish on the company, but note that it has fallen below our price target.
- We felt the company was due to miss expectations, given the weakness in its ExpressJet acquisition.
SkyWest - A Broken Business Provides A Short Opportunity Ahead Of Earnings In May
- SkyWest's heavy reliance on 50-seat jets means that it is a business facing significant threats.
- New rules and regulations, along with low pilot pay, have created a pilot shortage.
- ExpressJet, owned by SKYW, is bleeding money.
- Short interest in SKYW has been increasing.
- SKYW's stock has been downgraded and revenue guidance has been pushed downward.
Mon, Jan. 26, 8:23 AM
- Winter Storm Juno is expected to cause widespread flight cancellations on the East Coast this week.
- JetBlue (NASDAQ:JBLU) has the highest number of cancellations today per FlightAware.com.
- United Continental (NYSE:UAL), Southwest (NYSE:LUV), SkyWest (NASDAQ:SKYW) through ExpressJet, Delta Air Line (NYSE:DAL), and American Airlines Group (NASDAQ:AAL) will also be affected.
- What to watch: The impact of major weather events on the bottom line of airlines can be complicated. Losses can be minimal in some cases as load factors actually improve, but if business travelers don't rebook trips, the loss of revenue can be a negative factor.
Fri, Jan. 9, 12:26 PM
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. 18, 2014, 6:53 AM
Nov. 28, 2014, 8:13 AM
- The OPEC decision to hold oil production levels steady has put a charge into airline stocks in early trading off the prospect for sustained lower jet fuel costs.
- Delta Air Lines (NYSE:DAL) is up 4.1% premarket and United Continental (NYSE:UAL) has already rallied 3.5%. The rest of the group is expected to fall suit.
- Airline stocks on watch: JBLU, AAL, LUV, ALGT, SAVE, HA, ALK, SKYW, VA.
Nov. 25, 2014, 9:17 AM
- Embraer (NYSE:ERJ) and SkyWest (NASDAQ:SKYW) have confirmed a firm order for seven E175 jets, valued at an estimated $301M based on 2014 list prices.
- The aircraft are part of SkyWest's previous order for 100 (40 firm and 60 reconfirmable) E175 current generation E-Jets placed in May 2013, taking the firm order number to a total of 47.
- The order will be included in Embraer's 2014 Q4 backlog.
- ERJ +1.3% premarket
Nov. 19, 2014, 8:25 AM
Nov. 19, 2014, 8:05 AM| Comment!
Oct. 29, 2014, 7:56 AM| Comment!
Oct. 29, 2014, 6:53 AM
Oct. 28, 2014, 5:30 PM
- ACCO, ADP, AIT, ALKS, ALLY, AMED, ARW, AUO, AVX, BAH, BDC, CCJ, CFR, CKSW, CMC, COT, CTCM, DXYN, ETN, EVER, EXC, GHM, GRMN, GT, H, HES, HSY, IACI, ISSI, JLL, LFUS, MHFI, MRGE, MTH, NVMI, OMG, PAG, PB, PSX, PSXP, PX, RES, RL, ROL, RYAM, SEE, SKYW, SO, SODA, SPW, SPWR, STM, TEL, TFX, UAM, UBSI, VLY, WEC, WLP, WM, XRAY
Oct. 24, 2014, 3:19 PM
- Cowen Research says Q3 earnings and guidance from airliners have surprised to the upside.
- The positive comments from airliner management on PRASM and costs coincides with some share price loss in the sector over Ebola fears.
- Q4 margins are forecast to expand as lower fuel prices factor in.
- Domestic airline stocks: DAL, AAL, JBLU, UAL, ALK, HA, RJET, ALGT, LUV, SKYW, SAVE.
Oct. 21, 2014, 1:12 PM
- Airline stocks are putting in another volatile day as the Ebola headlines veer toward the positive side.
- Gainers: Spirit Airlines (NASDAQ:SAVE) +5.0%, American Airlines Group (NASDAQ:AAL) +5.3%, Southwest Airlines (NYSE:LUV) +4.7%, SkyWest (NASDAQ:SKYW) +4.1%, United Continental (NYSE:UAL) +2.9%, Delta Air Lines (NYSE:DAL) +2.5%, Allegiant Travel (NASDAQ:ALGT) +1.9%, JetBlue (NASDAQ:JBLU) +2.3%, Alaska Air Group (NYSE:ALK) +1.9%.
Oct. 20, 2014, 10:03 AM
- Fares on domestic flights are higher this year than a year ago, despite an increase in capacity across the sector, according to a forecast from Expedia EXPE.
- Thanksgiving flights showed a 17% increase on average to $467, while Christmas flights were up 2% to $493.
- A total of 21M Americans are expected to fly between October and December.
- The outlook could calm some fears that bookings or pricing are off with Ebola concerns cropping up in the U.S.
- Related stocks: DAL, AAL, JBLU, UAL, ALK, HA, RJET, ALGT, LUV, SKYW, SAVE.
Oct. 15, 2014, 11:49 AM
- Airline stocks are under pressure again after a report indicates that the second hospital worker to contract Ebola in the Dallas region flew a commercial flight earlier this week.
- The group has been battered around on Ebola fears over the last few weeks, despite little indication of any impact on bookings so far.
- On watch: DAL, AAL, JBLU, UAL, ALK, HA, RJET, ALGT, LUV, SKYW, LFL, GOL, SAVE.
Oct. 15, 2014, 5:25 AM
- A second healthcare worker has contracted Ebola in the U.S.,
- The worker, a staff member at Texas Health Presbyterian Hospital, was among those who looked after Thomas Duncan, who died of the virus earlier this month.
- More on Ebola
- Related health stocks: TKMR, BCRX, HEB, INO, NLNK, NNVC, OTCQB:GOVX, SRPT, CMRX, GSK, IBIO, APT, LAKE, SRPT, PLX, NSPH, SMED, VSR, AHPI
- Airlines: DAL, AAL, UAL, SKYW, ALGT, HA, LUV
- Hotels: MAR, HLT, IHG, STAY, H, HOT, CHH
- Lodging REITS: AHT, SHO, LHO, INN
SKYW vs. ETF Alternatives
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