Sep. 23, 2013, 11:15 AM
- Despite cutting global airline profit estimates for 2013, the IATA sees positive signs for 2014.
- Increased business travel and improved consumer confidence should help profits soar to $16.4M, according to the group.
- The IATA taps North American carriers in particular for a strong year.
- IATA press release
- Related stocks: LUV, AAMRQ.PK, UAL, DAL, ALK, HA, JBLU, RJET, LCC, SAVE
Sep. 23, 2013, 10:53 AM
- IATA cuts its estimate for global airline profits in 2013 to $11.7B, a reduction of 8% from a prior forecast.
- The association notes higher oil prices are the main factor for taking a dimmer view of profits for the sector.
- Related stocks: Delta Air Lines (DAL), United Continental (UAL), US Airways (LCC), Ryanair (RYAAY), Cathay Pacific Airways (CPCAY.PK), Singapore Airways (SINGY.PK), China Eastern Airlines (CEA), China Southern Airlines (ZNH), Copa Holdings (CPA), Gol Linhas (GOL), and Latam Airlines (LFL).
Sep. 19, 2013, 1:25 PM
- A new report estimates that global airlines hauled in a record $27.1B in services fees last year.
- United Airline (UAL +1.2%) topped the list with a $5.4B haul in additional fees, whole Delta Air Lines (DAL +0.8%) came in second at $2.6B.
- Bags-Fly-Free carrier Southwest Airlines (LUV +1.4%) only squeezed out $161M in fees, primarily through its "early bird" reservation perk.
Sep. 18, 2013, 7:13 AM
- The FAA could disrupt the commercial airline industry as the agency considers a new round of furloughs beginning in October.
- A budget gap of as much as $700M looms for the FAA's new fiscal year.
- Airliners were looking forward to Q4 as a period where capacity discipline and lower crude oil prices were setting them up for an increase in profits.
- Related stocks: DAL, LUV, RJET, AAMRQ.PK, LCC, UAL, ALK, HA, SAVE, ALGT.
Sep. 17, 2013, 6:54 AM
- The NYSE Arca Airline Index hit a six-year high yesterday after crude oil prices fell again.
- JPMorgan sees clear skies ahead for Delta Air Lines (DAL) and US Airways (LCC), upgrading the pair to Overweight.
- Despite consumer spending restraint in the U.S., demand for air travel has held up. Carriers such as JetBlue (JBLU) and United Continental (UAL) are showing improvement in load revenue and passenger revenue per available seat miles.
Sep. 10, 2013, 2:27 PM
- A drop in oil prices has helped lift airline stocks on the day.
- All in all, it's been a week of good news for the sector with Delta Air Lines being tagged for inclusion in the S&P 500 Index and the latest outlook on the American-US Airways merger leaning favorable again.
- In the bull camp, Cowen analyst Helane Becker think the sector will see strong traffic gains.
- Advancers: UAL +6%, DAL +4.4%, ALK +4.3%, SAVE +3.9%, LUV +3.8%, JBLU +3.7%, RJET +2.9%, LCC +2.8%.
Sep. 6, 2013, 10:40 AM
- Higher crude oil prices continue to tip sentiment on airline stocks.
- The industry was starting to see some traction on global fares and domestic capacity discipline before the recent tension in Syria threw a wildcard in the mix.
- Decliners: HA -3.0%, RJET -2.9%, ALGT -2.3%, DAL -2.0%, JBLU -1.2%, UAL -0.9%.
Sep. 5, 2013, 3:45 PM
Aug. 29, 2013, 11:33 AM
- A research note from Buckingham Research dissects the recent development that the Department of Justice will work toward a settlement with US Airways (LCC +4.2%) and American Airlines (AAMRQ.PK).
- Analyst Dan McKenzie calls a quick deal "highly unlikely" because of the high concessions the DOJ is asking for and the difficulty in getting six state AGs and the District of Columbia to sign off.
- If Buckingham is right, today's airline stock rally (DAL, UAL, LUV, SAVE, ALGT, JBLU) could be a bit hasty.
Aug. 29, 2013, 10:53 AM| Aug. 29, 2013, 10:53 AM | 1 Comment
Aug. 29, 2013, 9:48 AM
- Airline stocks start the day off strong after the DOJ indicates a willingness to settle its suit with American Airlines (AAMRQ.PK) and US Airways if certain concessions are met.
- A combination of American and US Airways is viewed as positive for the sector due to the capacity discipline that fewer carriers would most likely present as opposed to a freestanding post-bankruptcy American.
- Advancers: LCC +5%, UAL +2.4%, DAL +2.3%, SAVE +1.7%, ALGT +1.5%, RJET +1.1%.
Aug. 27, 2013, 10:36 AM
- A surge in oil prices following renewed tension in Syria is wreaking havoc with airline stocks.
- The sector had just gotten itself on firmer footing following the turbulence over the DOJ's suit to block the U.S. Airways-American Airlines merger before the Middle East issues escalated.
- Decliners: UAL -5.9%, DAL -5.5%, ALK -4.4%, RJET -4.2%, LCC -3.1%, LUV -2.6%, SAVE -2.4%, JBLU -1.5%.
Aug. 23, 2013, 2:51 PM
- A good portion of the confusion over the airline industry is the change in direction by the Justice Department after it backed mega-mergers in the past - but became defiant in the face of a American Airlines (AAMRQ.PK) - US Airways combination.
- Despite the jolt to the sector delivered by the DOJ, some enthusiasm is starting to build back up again as more analysts see capacity discipline surviving either way the merger battle goes.
- Related stocks: LUV, UAL, DAL, AAMRQ.PK, JBLU, ALK, ALGT, RJET, HA, LCC.
Aug. 19, 2013, 12:25 PM
- Airline stocks continue to suffer as the DOJ's suit to block the merger between American Airlines (AAMRQ.PK) and US Airways (LCC -1%) dominates the landscape for the sector.
- Some analysts think an independent American would add flights in an effort to catch up to the Big Two (UAL, DAL) - a development that could create pricing pressure on the sector for the long-term.
- Decliners: SAVE -2.8%, DAL -2.4%, HA -2.1%, LUV -1.5%, RJET -1.5%.
Aug. 16, 2013, 10:35 AM
- Airline stocks recover some ground lost after the DOJ suit against US Airways and American Airlines rattled the sector.
- The group is still lower for the week as macroeconomic factors and an indication that the American Airlines bankruptcy plan could be altered have also been factored in.
- Advancers: US Airways (LCC) +3.2%, Jet Blue (JBLU) +2.8%, Delta Airlines (DAL) +3.1%, United Continental (UAL) +2.7%, Southwest Airlines (LUV) +1.5%.
Aug. 16, 2013, 7:12 AM
- The wiring fault on fire extinguishers for engines of All Nippon Airways Boeing (BA) 787 aircraft was due to improper assembly of bottles at the supplier, Boeing says.
- The problems, which were discovered on Wednesday, wouldn't have presented a flight-safety issue, as the jet has other means of putting out engine fires, the company says.
- United Continental Holdings (UAL) has also reportedly found at least one instance of the improperly assembled extinguishers.
- Meanwhile, Canada has belatedly ordered an inspection of Honeywell (HON) made emergency beacons on most Boeing and Airbus (EADSF.PK) jets after one of the devices was linked to a fire on an Ethiopian Airways 787. The order comes over two weeks after Boeing recommended such checks on a number of its models.
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