Jun. 10, 2014, 11:00 AM
- United Continental (UAL -1.7%) will become the latest airliner to change its frequent-flier award plan to pivot on prices rather than miles.
- The shift is designed to reward the customers that spend the most money on United flights instead of savvy mileage hoppers.
- Airline industry analysts saw the carriers could see a minor margin boost from the initiative.
Jun. 9, 2014, 4:21 PM
Jun. 9, 2014, 6:06 AM
- United Continental (UAL) is still facing a series of challenges nearly four years after the deal between United and Continental closed in October 2010. The company faces an outdated fleet, slipping customer satisfaction and unmatched losses compared to its rivals.
- The company experienced a terrible 2012, after losing a total $723M. Last year, the airline came back with $571M in earnings, but declined again during the first quarter of this year posting a $609M loss.
- Analysts still expect United Continental to report a profit for the current quarter and year, and many have assigned a "buy" rating. The company's stock did climb 28% this year, although it is still has underperformed compared to it's rivals. Delta's (DAL) share price jumped 55% this year, while American Airlines (AAL) stock has climbed 77%.
Jun. 2, 2014, 12:54 PM
- Airline stock break higher again amid more positive news out of the sector.
- Morgan Stanley's John Godyn doesn't think it's too late for investors to catch a ride on the high-flyers.
- The analyst notes channel checks show demand has been strong in Q2 and the underlying capacity trends bode well for profitability.
- Gainers: United Continental (UAL) +3.4%; Hawaiian Holdings (HA) +2.3%; Allegiant Travel (ALGT) +2.5%; Delta Air Lines (DAL) +1.8%.
Jun. 2, 2014, 8:32 AM
- IATA cuts its forecast for airline profits on concerns China's economy will slow down.
- The impact of increased regulatory and infrastructure costs in Europe are also a concern.
- The revised outlook from IATA is for industry profits of $18.0B this year, down from a March estimate of $18.7B.
- Related stocks: AAL, UAL, DAL, RYAAY, CPCAY, SINGY, CEA, ZNH, CPA, GOL, LFL, DLAKF, AIDIF, QUBSF, JBLU,ALK, HA, AIRYY, MLYAF, AFLYY, VLRS, LUV.
May. 28, 2014, 5:22 PM
- The FAA clears Boeing's (BA) 787 Dreamliner to operate on a wider range of routes, enabling the jet to handle longer oceanic and polar crossings as much as five-and-a-half hours from a suitable landing field in the event of an emergency vs. the three-hour limit since its 2011 launch.
- The performance extension is especially important for airlines based in the Southern Hemisphere that fly long routes over water; Air New Zealand is set to take delivery of the first of the larger Dreamliner model in the middle of the year.
- The FAA approval formally applies only to U.S. carriers, and within that group only United Airlines (UAL) now operates the 787, but regulators in other countries typically follow the FAA's lead.
May. 28, 2014, 10:17 AM
- IATA reports a 7.5% Y/Y increase in passenger traffic for April with international routes showing a stronger pace of growth than domestic flights.
- Growth breakdown by geographic region: Asia-Pacific +6.7%; Europe +7.9%; North America +4.9%; Middle East +18.6%; Latin America +8.2%, Africa +3.9%.
- Airline stocks: AAL, UAL, DAL, RYAAY, CPCAY, SINGY, CEA, ZNH, CPA, GOL, LFL, DLAKF, AIDIF, QUBSF, JBLU, SAVE, ALK, HA, AIRYY, MLYAF, AFLYY, VLRS, SKYW, RJET, LUV.
May. 23, 2014, 5:39 PM
- United Continental (UAL) hasn't enjoyed the stock gains of competitors such as American Airlines (AAL) and Delta (DAL), but the company's investor meeting convinces Wolfe Research analysts that UAL understands how to address its problems; shares rose 3.7% in toay's trade.
- Management handled the generally negative tone, Wolfe says, responding with explanations that didn’t sound like excuses - "we left increasingly optimistic that the current management team can turn things around."
- UAL's gap is "temporary or addressable without more drastic steps of hub closures, but it will take some time," the firm says; for example, UAL flies far more 50-seat regional jets than American and Delta, and putting those down can’t be done overnight.
May. 15, 2014, 2:39 PM
- U.S. airliners flew 52.4M passengers in February, flat growth from the year-ago period.
- The group showed greater efficiency this year with fewer flights flown during the month.
- The average flight length also increased during the month which is a boost to profitability for the sector.
- Related stocks: LUV, UAL, DAL, JBLU, ALK, HA, SAVE, ALGT, RJET.
- DOT passenger data
May. 6, 2014, 8:07 AM
- IATA reports revenue passenger kilometers increased 3.1% in March.
- Domestic markets saw a 4% gain, whole international markets rose 2.6%.
- North American airlines saw demand improve 0.6% in March, a deceleration from a growth rate of 2.0% in February.
- European carriers saw a 2.0% rise in traffic, while traffic for Asian carriers was up 1.1%.
- Airline stocks: AAL, UAL, DAL, RYAAY, CPCAY, SINGY, CEA, ZNH, CPA, GOL, LFL, DLAKF, AIDIF, QUBSF, JBLU, RJET, SAVE, ALK, HA, AIRYY, MLYAF, AFLYY
May. 2, 2014, 3:13 PM
- United Continental (UAL -0.7%) might be too big to squeeze out efficiencies easily, warns Wolfe Research.
- The carrier flies over 1600 flights day which is 59% more than Delta Air Lines and 65% more than America Airlines.
- The investment firm recommends UAL retire some planes and reduce its headcount to create a more manageable network.
Apr. 30, 2014, 11:26 AM
- U.S. airliners delivered Q1 profits of $401M, compared to a loss of $553M a year ago.
- JetBlue (JBLU +0.8%) and United Continental (UAL -1.5%) were the only carriers not to improve their profitability from last year. If UAL's results are backed out, the group (ALK, ALGT, AAL, DAL, HA, LUV, SAVE) saw a profit gain of over $1B for the period.
- Improving business demand and solid pricing trends (fares, bags) have helped lift the sector.
Apr. 24, 2014, 2:27 PM
- United Continental (UAL -9.4%) put in a weaker quarter than Delta Air Lines and American Airlines in Q1 with passenger traffic dropping 0.3% and a key revenue metric sliding 2%.
- Of note, the company's higher exposure to Asia was a drag in Q1 and could continue to pull down its overall results.
- The under-performance by UAL in Q1 was enough to prompt Wolfe Research to warn the carrier may face a "significant structural disadvantage" to its peers.
- Investors have some concerns of their own, pushing UAL shares down to below $42.
Apr. 24, 2014, 7:37 AM| 1 Comment
Apr. 3, 2014, 2:29 PM
- IATA reports global passenger traffic rose 5.4% Y/Y in February.
- All regions showed an increase in international traffic with carriers from the Middle East and Europe showing the best growth rates.
- Brazil, China, and Russia all saw double-digit growth for domestic passenger traffic.
- Related stocks: AAL, UAL, DAL, RYAAY, CPCAY, SINGY, CEA, ZNH, CPA, GOL, LFL, DLAKF, AIDIF, QUBSF, JBLU, RJET, SAVE, ALK, HA, AIRYY, MLYAF, AFLYY
Apr. 2, 2014, 10:10 AM
- Shares of United Continental (UAL +2.5%) are outperforming again within the sector and topping broad market averages.
- UAL is now up close to 9% over the last week and appear to closing in on reaching $50 a share for the first time since 2007.
- The general outlook by analysts on UAL is that there is solid upside for the carrier to improve its PRASM metric which should feed into EPS growth. SA contributor Stone Fox Capital was ahead of the curve with its call.
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