Sat, Apr. 25, 5:53 PM
- Airline stocks continue to outperform in 2015 as Q1 reports show strong efficiency gains and significant fuel expense savings.
- Investors get a crack at a sector ETF this week with the launch of the U.S Global Jets ETF (Pending:JETS) on April 30.
- A few tidbits from the fund company on the airline industry are listed below.
- Global ancillary revenue is a major source of growth in the the sector. The add-on sales (a la carte food/drink, advertising, frequent flyer programs, service commissions, baggage fees) are up to $31.5B after airlines only took in about $2.5B in 2007.
- Fleet upgrades and technology initiatives continue to boost efficiency.
- A shortage of pilots could reel in some of the concerns on capacity increases.
- Previously: Fuel savings and earnings give lift to airline stocks (April 24)
- Airline stocks: AAL, UAL, DAL, RYAAY, OTCPK:CPCAY, OTCPK:SINGY, CEA, ZNH, CPA, GOL, LFL, OTCPK:DLAKF, OTCPK:QUBSF, ALK, HA, OTCPK:AIRYY, OTCPK:MLYAF, OTCPK:AFLYY, VLRS, LUV, OTC:RYAOF, RJET, VA, LFL, SAVE, ALGT, CEA, OTC:EJTTF, OTCQX:ESYJY, AVH, OTC:AFRAF, OTCPK:ICAGY, AVH, OTCPK:JAPSY.
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. 23, 11:58 AM
- United Airlines (UAL -1.1%) says it has swapped 10 orders of Boeing (BA -0.5%) 787 Dreamliners for 10 larger 777-300ER jets, following months of speculation that the airline would make the swap which allows it to move aircraft on to different routes to better fit customer demand.
- For Boeing, the deal signals steady demand for its wide-body 777 aircraft before it switches to production of the new 777X model later this decade; the company said yesterday that its 777 production line is sold out for 2016 and half sold out in 2017, with sales extending into 2018.
- Boeing also says it is in final negotiations on the lease of 10-20 used narrow-body aircraft for delivery over the next few years, and says it plans to retire 130 of its 200-plus 50-seat planes by the end of 2015 as part of its fleet reorganization.
Thu, Apr. 23, 7:43 AM
- United Continental (NYSE:UAL) reports passenger revenue per available seat mile rose 0.4% in Q1 as booked revenue outpaced capacity increases.
- The company saw its strongest revenue growth in Latin America with a 9.4% rise to $747M.
- U.S. revenue +1.2% to $2.951B.
- Operating expenses -13.2% to $1.19B with the aircraft fuel expense category down 36% Y/Y during the quarter.
- Previously: United Continental beats by $0.08, misses on revenue
- UAL +0.85% premarket.
Thu, Apr. 23, 7:34 AM| Comment!
Sat, Apr. 18, 10:04 AM
- American Airlines Group (NASDAQ:AAL) won approval from the DOT to take over a Los Angeles-Mexico route from Alaska Airlines (NYSE:ALK).
- The company faced a challenge from Delta Airlines over the valuable route.
- An important note from the DOT is that the agency says it expects "substantial changes" in the market over the next year after advanced trade talks between the U.S. and Mexico.
- United Continental (NYSE:UAL), Volaris (NYSE:VLRS), and Aeromexico (OTC:GRPAF) are also active in the L.A. to Mexico market.
Fri, Apr. 17, 8:40 AM
- Airline fares fell 1.7% M/M in March on a seasonally adjusted basis, according to the Bureau of Labor Statistics.
- The average fare was down 5% from last year on an adjusted basis.
- The decrease in fares is due in part to the lag factor of dropping oil prices from the fall and competitive activity in some key markets.
- Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW.
- BLS CPI data
Wed, Apr. 15, 10:20 AM
- Airlines with a high mix of domestic flights look attractive to Deutsche Bank.
- The investment firm leans on the logic of avoiding some of the F/X traps of international routes with the U.S. dollar a bullying force.
- DB lines up Allegiant Travel (ALGT +0.4%), JetBlue (JBLU +1%), Southwest Airlines (LUV +0.5%), and Spirit Airlines (SAVE +0.7%) as top sector picks.
- An important development in the airline industry occurred earlier today when Delta Air Lines tipped it would cut back international capacity next winter. American Airlines (AAL +2.5%) and United Continental (UAL +1.6%) are on watch to see if they match the more conservative strategy.
- Previously: Delta Air Lines +1.9% as results impress, capacity control tipped
Fri, Apr. 10, 9:51 AM| 2 Comments
Fri, Apr. 10, 6:23 AM
- The FAA boosted oversight of United Continental Holdings (NYSE:UAL) two months ago, reports the WSJ, citing risks from repeated violations of mandatory pilot qualification and scheduling requirements.
- A Feb. 6 letter from a high-ranking FAA official to United's top safety officer called for a thorough overhaul of parts of the airline's process for qualifying crew members. The regulator's action followed a January safety warning from UAL to its pilots after four recent and separate "safety events and near misses."
- The FAA letter didn't involve those incidents, but instead focused on areas like pilot records and crew-member qualifications.
Thu, Apr. 9, 7:14 AM| Comment!
Wed, Apr. 1, 10:55 AM
- Airline stocks are lower on the day with oil rallying again.
- American Airlines Group (AAL -4.1%), Delta Air Lines (DAL -3.8%), and United Continental (UAL -3.7%) are the leading decliners after taking on a Deutsche Bank downgrades on top of the oil development.
- Allegiant Travel (ALGT -2.1%), Spirit Airlines (SAVE -2.1%), and Alaska Airways Group (ALK -2.4%) are also peeling off share price.
- The sector could see some volatility over the next week as carriers report on their March load factors and passenger revenue metrics.
- Previously: Supply and demand questions in the U.S. airline sector
- Previously: Deutsche Bank warns on international airline sales
Wed, Apr. 1, 6:53 AM
- Deutsche BAnk downgrades three airlines on concerns international sales for the trio will disappoint.
- Delta Air Lines (NYSE:DAL) is moved to Hold from Buy and assigned a price target of $50 from $60.
- American Airlines Group (NASDAQ:AAL) is also cut to Hold and has its PT sliced to $58 from $78.
- United Airlines (NYSE:UAL) goes to Hold from Buy with a price target reduction to $70 from $85.
- The strong U.S. dollar will cut into international passenger revenue per available seat miles, warns DB.
Fri, Mar. 27, 3:10 AM
- Airlines rushed to change their rules yesterday to require a second crew member in the cockpit at all times, just hours after French prosecutors suggested Germanwings co-pilot Andreas Lubitz locked the captain out of the cockpit on flight 4U9525 and crashed the plane on purpose.
- The U.S. has required two crew members to be in the cockpit at all times since the Sept. 11 attacks, but the procedure is not standard in Europe or Canada.
- Airline stocks: AAL, UAL, DAL, RYAAY, OTCPK:CPCAY, OTCPK:SINGY, CEA, ZNH, CPA, GOL, LFL, OTCPK:DLAKF, OTCPK:QUBSF, ALK, HA, OTCPK:AIRYY, OTCPK:MLYAF, OTCPK:AFLYY, VLRS, LUV, OTC:RYAOF, RJET, VA, LFL, SAVE, ALGT, CEA, OTC:EJTTF, OTCQX:ESYJY, AVH, OTC:AFRAF, OTCPK:ICAGY.
Thu, Mar. 26, 8:20 AM
- Airline stocks are reacting to the jump in crude oil prices as would be expected.
- Crude oil is markedly higher off of unrest in Yemen.
- Delta Air Lines (NYSE:DAL) is down 4.1% in premarket action, while United Continental (NYSE:UAL) is off 2.9%.
- Southwest Airlines (NYSE:LUV) and JetBlue (NASDAQ:JBLU) are both down about 3%.
- No-hedging American Airlines Group (NASDAQ:AAL) continues to be a curiosity to some traders with its tendency to move in-line with peers on oil swings - despite having a different fuel pricing strategy. AAL -3.4% premarket.
- A deeper dive into jet fuel prices is available at Platts.
Wed, Mar. 25, 4:56 PM
- China’s Hainan Airlines says it plans to buy 30 Boeing (NYSE:BA) 787 Dreamliner jets, valued at as much as $7.7B at list prices, in a boost for Boeing’s order book of Dreamliners, which after years of growth plateaued as jets were only available in 2020 and beyond.
- Many of the Dreamliners ordered by Hainan are said to come from delivery positions once reserved for United Continental (NYSE:UAL), which is in negotiations with Boeing for some larger 777-300ER jets converted from a portion of its Dreamliner order now going to Hainan.
UAL vs. ETF Alternatives
Other News & PR