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3300.0
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2022-08-19 00:00:00 UTC
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U.S. wants airlines to boost help for stranded, delayed passengers
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AAL
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https://www.nasdaq.com/articles/u.s.-wants-airlines-to-boost-help-for-stranded-delayed-passengers-0
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nan
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nan
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By David Shepardson
WASHINGTON, Aug 19 (Reuters) - U.S. Transportation Secretary Pete Buttigieg has urged the 10 largest U.S. airlines to do more to assist stranded and delayed passengers and warned the government may adopt new regulations.
In letters to major, regional and low-cost carrier chief executives made public Friday, Buttigieg said the department (USDOT) is "contemplating options" to write new rules "that would further expand the rights of airline passengers."
He urged airlines to assess customer service plans to "ensure that (they) guarantee adequate amenities and services to help passengers with expenses and inconveniences due to delays and cancellations." He also asked airlines "at a minimum to provide meal vouchers for delays of 3 hours or more and lodging accommodations for passengers who must wait overnight at an airport because of disruptions within the carrier’s control."
Some airlines provide meals or hotel rooms if they cancel or delay flights if they are to blame for disruptions, but they are not legally required to do so. Passengers are often not aware of airline policies.
Major airlines and an airline trade group did not immediately comment early Friday.
Buttigieg's letter said he appreciated steps airlines had taken to improve service but added "the level of disruption Americans have experienced this summer is unacceptable".
He said that in the first six months, "roughly 24% of the domestic flights of U.S. airlines have been delayed and 3.2% have been canceled".
USDOT plans by Sept. 2 to create an "interactive dashboard" for air travelers to compare "services or amenities that each of the large U.S. airlines provide when the cause of a cancellation or delay was due to circumstances within the airline’s control".
Buttigieg and major U.S. airlines have often clashed this summer over who is responsible for tens of thousands of flight delays and cancellations. He met virtually with airline CEOs ahead of the busy July 4 travel weekend to pressure them to perform better.
Buttigieg has faced pressure from U.S. lawmakers who want him to do more to force airlines to provide better service.
Airlines note they have voluntarily reduced flights to improve service, ramped up hiring and argue that inadequate air traffic control staffing has routinely impacted flights.
On Monday, hundreds of flights were delayed at three major New York City area airports after the Federal Aviation Administration (FAA) reported staffing issues and said delays could "approach two hours".
USDOT is drafting a number of new airline consumer rules, including requiring refunds for delayed baggage.
(Reporting by David Shepardson Editing by Mark Heinrich)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By David Shepardson WASHINGTON, Aug 19 (Reuters) - U.S. Transportation Secretary Pete Buttigieg has urged the 10 largest U.S. airlines to do more to assist stranded and delayed passengers and warned the government may adopt new regulations. In letters to major, regional and low-cost carrier chief executives made public Friday, Buttigieg said the department (USDOT) is "contemplating options" to write new rules "that would further expand the rights of airline passengers." He also asked airlines "at a minimum to provide meal vouchers for delays of 3 hours or more and lodging accommodations for passengers who must wait overnight at an airport because of disruptions within the carrier’s control."
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He urged airlines to assess customer service plans to "ensure that (they) guarantee adequate amenities and services to help passengers with expenses and inconveniences due to delays and cancellations." He also asked airlines "at a minimum to provide meal vouchers for delays of 3 hours or more and lodging accommodations for passengers who must wait overnight at an airport because of disruptions within the carrier’s control." Some airlines provide meals or hotel rooms if they cancel or delay flights if they are to blame for disruptions, but they are not legally required to do so.
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He urged airlines to assess customer service plans to "ensure that (they) guarantee adequate amenities and services to help passengers with expenses and inconveniences due to delays and cancellations." USDOT plans by Sept. 2 to create an "interactive dashboard" for air travelers to compare "services or amenities that each of the large U.S. airlines provide when the cause of a cancellation or delay was due to circumstances within the airline’s control". Buttigieg and major U.S. airlines have often clashed this summer over who is responsible for tens of thousands of flight delays and cancellations.
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He also asked airlines "at a minimum to provide meal vouchers for delays of 3 hours or more and lodging accommodations for passengers who must wait overnight at an airport because of disruptions within the carrier’s control." USDOT plans by Sept. 2 to create an "interactive dashboard" for air travelers to compare "services or amenities that each of the large U.S. airlines provide when the cause of a cancellation or delay was due to circumstances within the airline’s control". Buttigieg and major U.S. airlines have often clashed this summer over who is responsible for tens of thousands of flight delays and cancellations.
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3301.0
|
2022-08-19 00:00:00 UTC
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U.S. wants airlines to boost help for stranded, delayed passengers
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AAL
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https://www.nasdaq.com/articles/u.s.-wants-airlines-to-boost-help-for-stranded-delayed-passengers
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nan
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nan
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WASHINGTON, Aug 19 (Reuters) - U.S. Transportation Secretary Pete Buttigieg has urged the 10 largest U.S. airlines to do more to assist stranded and delayed passengers and warned the government may adopt new regulations.
In letters to major, regional and low-cost carrier chief executives made public Friday, Buttigieg said the department (USDOT) is "contemplating options" to write new rules "that would further expand the rights of airline passengers".
He urged airlines to assess customer service plans to "ensure that (they) guarantee adequate amenities and services to help passengers with expenses and inconveniences due to delays and cancellations." He also asked airlines "at a minimum to provide meal vouchers for delays of 3 hours or more and lodging accommodations for passengers who must wait overnight at an airport because of disruptions within the carrier’s control".
(Reporting by David Shepardson Editing by Mark Heinrich)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, Aug 19 (Reuters) - U.S. Transportation Secretary Pete Buttigieg has urged the 10 largest U.S. airlines to do more to assist stranded and delayed passengers and warned the government may adopt new regulations. In letters to major, regional and low-cost carrier chief executives made public Friday, Buttigieg said the department (USDOT) is "contemplating options" to write new rules "that would further expand the rights of airline passengers". He also asked airlines "at a minimum to provide meal vouchers for delays of 3 hours or more and lodging accommodations for passengers who must wait overnight at an airport because of disruptions within the carrier’s control".
|
WASHINGTON, Aug 19 (Reuters) - U.S. Transportation Secretary Pete Buttigieg has urged the 10 largest U.S. airlines to do more to assist stranded and delayed passengers and warned the government may adopt new regulations. In letters to major, regional and low-cost carrier chief executives made public Friday, Buttigieg said the department (USDOT) is "contemplating options" to write new rules "that would further expand the rights of airline passengers". He urged airlines to assess customer service plans to "ensure that (they) guarantee adequate amenities and services to help passengers with expenses and inconveniences due to delays and cancellations."
|
WASHINGTON, Aug 19 (Reuters) - U.S. Transportation Secretary Pete Buttigieg has urged the 10 largest U.S. airlines to do more to assist stranded and delayed passengers and warned the government may adopt new regulations. In letters to major, regional and low-cost carrier chief executives made public Friday, Buttigieg said the department (USDOT) is "contemplating options" to write new rules "that would further expand the rights of airline passengers". He urged airlines to assess customer service plans to "ensure that (they) guarantee adequate amenities and services to help passengers with expenses and inconveniences due to delays and cancellations."
|
WASHINGTON, Aug 19 (Reuters) - U.S. Transportation Secretary Pete Buttigieg has urged the 10 largest U.S. airlines to do more to assist stranded and delayed passengers and warned the government may adopt new regulations. In letters to major, regional and low-cost carrier chief executives made public Friday, Buttigieg said the department (USDOT) is "contemplating options" to write new rules "that would further expand the rights of airline passengers". He urged airlines to assess customer service plans to "ensure that (they) guarantee adequate amenities and services to help passengers with expenses and inconveniences due to delays and cancellations."
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3302.0
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2022-08-19 00:00:00 UTC
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China demand doubts darken mood as miners baulk at energy costs
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AAL
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https://www.nasdaq.com/articles/china-demand-doubts-darken-mood-as-miners-baulk-at-energy-costs
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nan
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nan
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By Clara Denina
LONDON, Aug 19 (Reuters) - The prospect of a global recession and doubts over economic stimulus in China, the world's biggest user of raw materials, add to the challenges of mining companies as they grapple with energy costs, raising the risk of downsizing and layoffs.
None of the major diversified miners is under financial strain after years of strong commodity prices.
But leading miners Rio Tinto RIO.L, RIO.AX, Anglo American AAL.L and Antofagasta ANTO.L are among many to have posted a fall in half-year earnings and lowered shareholder payouts.
Even those whose profits stayed high, including BHP Group BHP.AX and Glencore GLEN.L, flagged the risk sluggish commodity demand over the coming months could lower returns.
The IMF forecast that global growth could slow to 2.9% in 2023, stalled by higher interest rates, inflation and a prolonged energy crisis.
At the same time, China, the world's second biggest economy that accounts for more than 50% of global demand for raw materials, is sticking to its strict zero-COVID policy, enforced by recurrent lockdowns that slow output and demand.
So far, it has fought shy of the huge amounts of stimulus it introduced when Chinese economic weakness led to a drop in demand and a commodity price crash in 2015-6.
"Many industry players seem to be banking on the fact that China will launch a big stimulus package very soon," said Jean-Sebastian Jacques, former CEO of Rio Tinto, one of the miners most exposed to demand from China, the leading buyer of its iron ore.
"But unless there is an immediate domestic agenda, it is difficult to see why China would launch a large stimulus package that would benefit the world especially in the context of a fragile geopolitical environment."
DARKENING MOOD
Economically interdependent, China and the West saw their relations worsen this year after Russia's invasion of Ukraine began in February.
The mood deteriorated further this month after the U.S. House of Representatives Speaker's visit to Taiwan against Beijing's wishes.
If commodity demand falls and lowers prices, companies could be forced to consider reducing capex, review discretionary spending and slow recruitment, Jacques said.
The next phase would be "restructuring marginal assets that are not making money, be aggressive on headcount reduction and, even more difficult, reopening supply agreements," Jacques said, referring to long-term contracts with clients that may not reflect current costs.
While the miners' profits rise or fall in line with the raw materials they produce, they are mostly punished by higher costs for energy as their own production is not enough to fuel their energy-intensive operations.
The invasion of Ukraine by leading energy producer Russia has driven energy costs for most of the world, pushing inflation to the highest in decades and making global recession ever more likely.
Europe's biggest economy Germany is especially vulnerable because of its high dependence on Russian gas supplies, which Russia has reduced as tensions with the West have risen.
The government's emergency planning would include rationing supplies to industry to protect consumers and emergency services and would be expected to reduce production at major commodity users such as automakers Volkswagen VOWG_p.DE and BMW Group BMWG.DE.
The auto industry is already reporting signs of lower consumer demand as inflation cuts spending power.
"The nightmare scenario would be that due to the energy shortages, some industries, the German car industry and chemical industry for example, are forced to take extended shutdowns," said Ian Woodley, portfolio manager at Old Mutual, which holds shares in Anglo, BHP and others.
"These are huge consumers of commodities, so that would obviously have kick-on effects as well as further impacts on a shaky supply chain."
Energy bills have forced zinc and aluminium smelters in Italy, Norway, Slovakia, Spain and the Netherlands to halt production, and more cutbacks are likely, companies have said.
"There is no point in us producing if there are no automotive producers that want to buy parts," Paal Kildemo, CEO of aluminium maker Norsk Hydro NHY.OL said after earnings in July.
UPDATE 1-China to use effective investment, not flood-like stimulus, to boost economy: state media - Reuters
UPDATE 3-As German gas rationing looms, industry begs exemptions - Reuters News
Nyrstar's shut Dutch smelter invigorates zinc bulls - Reuters News
UPDATE 3-Norsk Hydro offers extra dividend, buybacks despite uncertainty ahead - Reuters News
(Reporting by Clara Denina; editing by Barbara Lewis)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But leading miners Rio Tinto RIO.L, RIO.AX, Anglo American AAL.L and Antofagasta ANTO.L are among many to have posted a fall in half-year earnings and lowered shareholder payouts. "There is no point in us producing if there are no automotive producers that want to buy parts," Paal Kildemo, CEO of aluminium maker Norsk Hydro NHY.OL said after earnings in July. By Clara Denina LONDON, Aug 19 (Reuters) - The prospect of a global recession and doubts over economic stimulus in China, the world's biggest user of raw materials, add to the challenges of mining companies as they grapple with energy costs, raising the risk of downsizing and layoffs.
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But leading miners Rio Tinto RIO.L, RIO.AX, Anglo American AAL.L and Antofagasta ANTO.L are among many to have posted a fall in half-year earnings and lowered shareholder payouts. "There is no point in us producing if there are no automotive producers that want to buy parts," Paal Kildemo, CEO of aluminium maker Norsk Hydro NHY.OL said after earnings in July. By Clara Denina LONDON, Aug 19 (Reuters) - The prospect of a global recession and doubts over economic stimulus in China, the world's biggest user of raw materials, add to the challenges of mining companies as they grapple with energy costs, raising the risk of downsizing and layoffs.
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But leading miners Rio Tinto RIO.L, RIO.AX, Anglo American AAL.L and Antofagasta ANTO.L are among many to have posted a fall in half-year earnings and lowered shareholder payouts. "There is no point in us producing if there are no automotive producers that want to buy parts," Paal Kildemo, CEO of aluminium maker Norsk Hydro NHY.OL said after earnings in July. By Clara Denina LONDON, Aug 19 (Reuters) - The prospect of a global recession and doubts over economic stimulus in China, the world's biggest user of raw materials, add to the challenges of mining companies as they grapple with energy costs, raising the risk of downsizing and layoffs.
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But leading miners Rio Tinto RIO.L, RIO.AX, Anglo American AAL.L and Antofagasta ANTO.L are among many to have posted a fall in half-year earnings and lowered shareholder payouts. "There is no point in us producing if there are no automotive producers that want to buy parts," Paal Kildemo, CEO of aluminium maker Norsk Hydro NHY.OL said after earnings in July. By Clara Denina LONDON, Aug 19 (Reuters) - The prospect of a global recession and doubts over economic stimulus in China, the world's biggest user of raw materials, add to the challenges of mining companies as they grapple with energy costs, raising the risk of downsizing and layoffs.
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3303.0
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2022-08-18 00:00:00 UTC
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Aircraft lessor BOC Aviation says deliveries slipping due to manufacturer delays
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AAL
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https://www.nasdaq.com/articles/aircraft-lessor-boc-aviation-says-deliveries-slipping-due-to-manufacturer-delays
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nan
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nan
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Aug 19 (Reuters) - Asian aircraft lessor BOC Aviation Ltd 2588.HK said nine aircraft deliveries due in the first half had slipped into later periods because of manufacturer delays related to supply-chain and regulatory issues as well as labour shortages.
The lessor said client American Airlines Group Inc AAL.O had received two Boeing Co BA.N 787s this month, the first deliveries globally since May 2021 after the U.S. Federal Aviation Administration approved the resumption of deliveries following production problems.
BOC Aviation, which has a fleet of 390 owned planes, expects to receive seven more 787s this year, Chief Operating Officer David Walton told analysts on anearnings callon Thursday evening.
Other large lessors like AerCap Holdings NV AER.N and Air Lease Corp AL.N have also reported airplane delivery delays.
BOC Aviation swung to a $313 million net loss in the first half, in line with guidance provided last month, due to the $518 million after-tax impact of writedowns of 17 aircraft that remain stuck in Russia.
More than 400 leased planes worth almost $10 billion remain in Russia after sanctions imposed after the invasion of Ukraine forced lessors to cancel their contracts with Russian airlines, which then declined to return most of the planes.
BOC Aviation said it had filed an insurance claim in June.
The lessor had held cash collateral representing 28% of the value of the planes that it was able to draw down when they were not returned, which Walton said he believed was the highest among its peer group.
"You'll tend to find that with emerging markets where we're concerned about the ability to repossess, then we will take more security," BOC Aviation Chief Executive Robert Martin said.
(Reporting by Jamie Freed in Sydney Editing by Matthew Lewis)
((Jamie.Freed@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The lessor said client American Airlines Group Inc AAL.O had received two Boeing Co BA.N 787s this month, the first deliveries globally since May 2021 after the U.S. Federal Aviation Administration approved the resumption of deliveries following production problems. BOC Aviation, which has a fleet of 390 owned planes, expects to receive seven more 787s this year, Chief Operating Officer David Walton told analysts on anearnings callon Thursday evening. The lessor had held cash collateral representing 28% of the value of the planes that it was able to draw down when they were not returned, which Walton said he believed was the highest among its peer group.
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The lessor said client American Airlines Group Inc AAL.O had received two Boeing Co BA.N 787s this month, the first deliveries globally since May 2021 after the U.S. Federal Aviation Administration approved the resumption of deliveries following production problems. Aug 19 (Reuters) - Asian aircraft lessor BOC Aviation Ltd 2588.HK said nine aircraft deliveries due in the first half had slipped into later periods because of manufacturer delays related to supply-chain and regulatory issues as well as labour shortages. BOC Aviation, which has a fleet of 390 owned planes, expects to receive seven more 787s this year, Chief Operating Officer David Walton told analysts on anearnings callon Thursday evening.
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The lessor said client American Airlines Group Inc AAL.O had received two Boeing Co BA.N 787s this month, the first deliveries globally since May 2021 after the U.S. Federal Aviation Administration approved the resumption of deliveries following production problems. Aug 19 (Reuters) - Asian aircraft lessor BOC Aviation Ltd 2588.HK said nine aircraft deliveries due in the first half had slipped into later periods because of manufacturer delays related to supply-chain and regulatory issues as well as labour shortages. BOC Aviation swung to a $313 million net loss in the first half, in line with guidance provided last month, due to the $518 million after-tax impact of writedowns of 17 aircraft that remain stuck in Russia.
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The lessor said client American Airlines Group Inc AAL.O had received two Boeing Co BA.N 787s this month, the first deliveries globally since May 2021 after the U.S. Federal Aviation Administration approved the resumption of deliveries following production problems. Aug 19 (Reuters) - Asian aircraft lessor BOC Aviation Ltd 2588.HK said nine aircraft deliveries due in the first half had slipped into later periods because of manufacturer delays related to supply-chain and regulatory issues as well as labour shortages. BOC Aviation, which has a fleet of 390 owned planes, expects to receive seven more 787s this year, Chief Operating Officer David Walton told analysts on anearnings callon Thursday evening.
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3304.0
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2022-08-18 00:00:00 UTC
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Unum Group and Louisiana-Pacific have been highlighted as Zacks Bull and Bear of the Day
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AAL
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https://www.nasdaq.com/articles/unum-group-and-louisiana-pacific-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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nan
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nan
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For Immediate Release
Chicago, IL – August 18, 2022 – Zacks Equity Research shares Unum Group UNM as the Bull of the Day and Louisiana-Pacific Corp. LPX as the Bear of the Day. In addition, Zacks Equity Research provides analysis on American Airlines AAL, SkyWest SKYW and C.H. Robinson Worldwide CHRW.
Here is a synopsis of all five stocks:
Bull of the Day:
Unum Group, a Zacks Rank #1 (Strong Buy), has weathered the bear market gracefully this year and is currently hitting new 52-week highs. Part of the Zacks Finance sector, the company sports the highest-possible 'A' rating for our Zacks Value Style Score, indicating a strong likelihood that the stock propels higher based on its valuation metrics. The company's longevity and continued stock price ascent speak to management's ability to adapt to the ever-changing market landscape.
UNM is part of the Zacks Insurance – Accident and Health industry, which is currently ranked in the top 5% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months. Digging a bit deeper, this industry has performed very well (+9.8% YTD) versus the S&P 500 (-10.33% YTD).
Quantitative research studies suggest about half of a stock's future price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By targeting stocks contained within leading industry groups, we can dramatically improve our odds of success.
Company Description
Unum Group provides financial protection benefits solutions primarily in the United States, the United Kingdom, and Poland. UNM provides group long-term and short-term disability, group life, and accidental death and dismemberment products. The company also offers cancer and critical illness, dental and vision, group pension, and voluntary life insurance products.
UNM is ranked as the leading disability income writer and second-largest writer of voluntary business in the United States. The company sells its products through field sales personnel, independent brokers, consultants, and independent contractor agencies. Unum Group was founded in 1848 and is headquartered in Chattanooga, TN.
Earnings Trends and Future Estimates
UNM has built up an impressive earnings history, surpassing earnings estimates in three of the last four quarters. Earlier this month, the company reported Q2 EPS of $1.91/share, a 55.28% surprise over the $1.23 consensus estimate. UNM has delivered a +30.13% average earnings surprise over the last four quarters.
Positive earnings estimate revisions are at the heart of the Zacks Rank. Our research shows that rising earnings estimates are the most powerful force impacting stock prices.
In a sign of strength, analysts covering the insurance company have increased their full-year EPS estimates by +11.79% in the past 60 days. The 2022 Zacks Consensus EPS Estimate now stands at $5.69/share, reflecting potential growth of 30.8% relative to last year. It's exactly the type of trend we want to look for when narrowing down our list of potential stocks.
Let's Get Technical
UNM has continued its winning ways this year while the market has been in correction mode. This is the kind of stock we want to include in our portfolio – one with both strong fundamentals as well as technicals. The stock has trended very well year-to-date, advancing over 65%. Only stocks that are in extremely powerful uptrends are able to make this type of price move.
Both the 50-day and 200-day moving average lines are sloping up and the stock continues to make a series of new 52-week highs. Cautious investors may feel hesitant about investing in a stock that has come this far, but the fact is this elite company is still outperforming.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Unum Group has recently witnessed positive revisions. As long as this trend remains intact (and UNM continues to deliver earnings beats), the stock will likely continue its bullish run this year.
Other Factors to Consider
Despite the massive price run, as we can see below UNM is relatively undervalued, irrespective of the metric used.
Unum Group has consistently enhanced shareholders' value through dividend hikes and share buybacks. The board approved a quarterly dividend hike of 10% back in May, marking the 13th dividend hike in the last 12 years. The company currently pays a $1.32 (3.35%) dividend.
In October of last year, the company authorized the repurchase of up to $250 million worth of outstanding shares. Through the first half of 2022, UNM bought back $94.9 million worth of stock and expects a $200 million buyback program annually through 2024.
Bottom Line
Solid institutional buying should continue to provide a tailwind for the stock price. UNM is ranked favorably by our Style Score Categories with an 'A' for Value and an overall 'B' VGM score. Robust fundamentals combined with a strong technical trend certainly justify adding shares to the mix.
Backed by a leading industry group and robust history of earnings beats, it's not difficult to see why this company is a compelling investment. Recent positive earnings estimate revisions should also serve to create a 'floor' regarding any sudden or unexpected downside moves. If you haven't already done so, make sure to put UNM on your shortlist.
Bear of the Day:
Louisiana-Pacific Corp. manufactures and markets building products for the use in new home construction, repair and remodeling, and outdoor structure markets. The company offers trim and siding products, air and water barriers, lumber and sub-flooring, and joists used in commercial floorings and roofing systems.
LPX sells its products primarily to retailers, wholesalers, and homebuilding and industrial businesses. Louisiana-Pacific Corp. was incorporated in 1972 and is based in Nashville, TN.
The Zacks Rundown
LPX, a Zacks Rank #5 (Strong Sell), is a component of the Zacks Building Products – Wood industry group, which ranks in the bottom 6% out of more than 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months.
The group has widely underperformed the market this year with a -18.02% return versus a -10.33% for the S&P 500.
Candidates in the bottom tiers of industries can often be solid potential short candidates. While individual stocks have the ability to outperform even when included in a poor-performing industry group, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much tougher.
LPX is also overvalued relative to its industry group based on the Price/Book ratio.
Weak Foundation: Falling Short on Earnings and Deteriorating Forecasts
Earnings misses have been a sore spot for LPX this year. The building products provider fell short of earnings estimates in second quarter, reporting EPS earlier this month of $4.19/share – a -4.34% surprise versus the $4.38 consensus estimate. Last year, the company reported earnings of $4.74/share during the second quarter. This is the type of negative trend that the bears like to see.
Analysts have been revising earnings estimates downward as of late. For the current quarter, estimates have been slashed -21.12% over the past 60 days. The Q3 Zacks Consensus EPS Estimate now stands at $1.83, translating to a -52.71% earnings regression relative to the same quarter last year.
For the year, analysts have also reduced their EPS estimate by -12.64% in the past 60 days. The 2022 Zacks Consensus EPS Estimate is now $12.99, reflecting a -7.02% decline compared to last year.
Technical Outlook
LPX stock staged a failed breakout late last year and has now entered a sustained downtrend. Both the 50-day and 200-day moving averages are sloping down. Shares have declined more than 23% this year. The stock continues to trade below both averages.
While not the most accurate indicator, LPX has also experienced what is known as a 'death cross', wherein the stock's 50-day moving average crosses below its 200-day moving average. LPX would have to make a serious move to the upside and show increasing earnings estimate revisions to warrant taking any long positions in the stock.
Final Thoughts
Recent earnings misses and an unpredictable equity market don't exactly favor bullish LPX investors. Our Zacks Style Scores depict a weakening outlook for this stock, as LPX is rated a second worst-possible 'D' in our Momentum category. A deteriorating fundamental and technical backdrop show that this stock is fighting an uphill battle.
The fact that LPX is part of one of the worst-performing industry groups simply adds another headwind to a long list of concerns. Potential investors should only think about including this stock in their portfolio as part of a hedge or short strategy. Bulls will want to steer clear of an overvalued LPX until the situation shows major signs of improvement.
Additional content:
American Airlines to Buy Super-Fast Passenger Jets
In a bid to modernize its fleet, American Airlines inked a deal with Boom Supersonic to purchase up to 20 Overture planes from the latter. AAL already made a non-refundable deposit for the fleet. The agreement also includes the option of buying 40 more such high-speed jets for the airline that are expected to carry passengers at twice the speed of the fastest commercial aircraft available currently. Financial details of the deal remain undisclosed.
Boom expects to start rolling out the new super-fast jets in 2025. These planes are anticipated to start ferrying passengers by 2029. They are expected to carry 65-80 passengers on every trip.
Boom is designing the Overture aircraft in such a way that it manages to travel at Mach 1.7, with a range of 4,250 nautical miles. Introducing these planes to AAL's fleet will make travel much faster. For example, passengers can travel on these jets from Miami to London in less than five hours and from Los Angeles to Honolulu in just three hours.
Expressing his delight at the deal win, American Airlines' CFO Derek Kerr said, "Looking to the future, supersonic travel will be an important part of our ability to deliver for our customers. We are excited about how Boom will shape the future of travel both for our company and our customers."
Zacks Rank & Key Picks
American Airlines currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Transportation sector are C.H. Robinson Worldwide and SkyWest, presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
C.H. Robinson is being aided by the improving freight scenario in the United States. Efforts to control costs also bode well. Measures to reward CHRW's shareholders instill further confidence in the stock.
C.H. Robinson has a pleasant earnings track record. The bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark in the remaining one). The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 13.8% upward over the past 60 days.
Continued recovery in air-travel demand bodes well for SkyWest. With improvement in air-travel demand, SkyWest carried 32.7% more passengers in first-half 2022 than the year-ago level. As a result, the passenger load factor (percentage of seats filled by passengers) expanded 1450 basis points to 82.1% in first-half 2022. SKYW's fleet-modernization efforts are commendable as well.
The positivity surrounding the SkyWest stock is evident from the Zacks Consensus Estimate for current-year earnings being revised in excess of 100% upward over the past 60 days. SKYW has a Momentum Style Score of A.
Why Haven't You Looked at Zacks' Top Stocks?
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
Unum Group (UNM): Free Stock Analysis Report
LouisianaPacific Corporation (LPX): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, Zacks Equity Research provides analysis on American Airlines AAL, SkyWest SKYW and C.H. AAL already made a non-refundable deposit for the fleet. Introducing these planes to AAL's fleet will make travel much faster.
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In addition, Zacks Equity Research provides analysis on American Airlines AAL, SkyWest SKYW and C.H. AAL already made a non-refundable deposit for the fleet. Introducing these planes to AAL's fleet will make travel much faster.
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In addition, Zacks Equity Research provides analysis on American Airlines AAL, SkyWest SKYW and C.H. AAL already made a non-refundable deposit for the fleet. Introducing these planes to AAL's fleet will make travel much faster.
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In addition, Zacks Equity Research provides analysis on American Airlines AAL, SkyWest SKYW and C.H. AAL already made a non-refundable deposit for the fleet. Introducing these planes to AAL's fleet will make travel much faster.
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3305.0
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2022-08-17 00:00:00 UTC
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American Airlines (AAL) to Buy Super-Fast Passenger Jets
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-to-buy-super-fast-passenger-jets
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nan
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nan
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In a bid to modernize its fleet, American Airlines AAL inked a deal with Boom Supersonic to purchase up to 20 Overture planes from the latter. AAL already made a non-refundable deposit for the fleet. The agreement also includes the option of buying 40 more such high-speed jets for the airline that are expected to carry passengers at twice the speed of the fastest commercial aircraft available currently. Financial details of the deal remain undisclosed.
Boom expects to start rolling out the new super-fast jets in 2025. These planes are anticipated to start ferrying passengers by 2029. They are expected to carry 65-80 passengers on every trip.
Boom is designing the Overture aircraft in such a way that it manages to travel at Mach 1.7, with a range of 4,250 nautical miles. Introducing these planes to AAL’s fleet will make travel much faster. For example, passengers can travel on these jets from Miami to London in less than five hours and from Los Angeles to Honolulu in just three hours.
Expressing his delight at the deal win, American Airlines’ CFO Derek Kerr said, “Looking to the future, supersonic travel will be an important part of our ability to deliver for our customers. We are excited about how Boom will shape the future of travel both for our company and our customers.”
Zacks Rank & Key Picks
American Airlines currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Transportation sector are C.H. Robinson Worldwide CHRW and SkyWest SKYW, presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
C.H. Robinson is being aided by the improving freight scenario in the United States. Efforts to control costs also bode well. Measures to reward CHRW's shareholders instill further confidence in the stock.
C.H. Robinson has a pleasant earnings track record. The bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark in the remaining one). The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 13.8% upward over the past 60 days.
Continued recovery in air-travel demand bodes well for SkyWest. With improvement in air-travel demand, SkyWest carried 32.7% more passengers in first-half 2022 than the year-ago level. As a result, the passenger load factor (percentage of seats filled by passengers) expanded 1450 basis points to 82.1% in first-half 2022. SKYW’s fleet-modernization efforts are commendable as well.
The positivity surrounding the SkyWest stock is evident from the Zacks Consensus Estimate for current-year earnings being revised in excess of 100% upward over the past 60 days. SKYW has a Momentum Style Score of A.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a bid to modernize its fleet, American Airlines AAL inked a deal with Boom Supersonic to purchase up to 20 Overture planes from the latter. AAL already made a non-refundable deposit for the fleet. Introducing these planes to AAL’s fleet will make travel much faster.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report In a bid to modernize its fleet, American Airlines AAL inked a deal with Boom Supersonic to purchase up to 20 Overture planes from the latter. AAL already made a non-refundable deposit for the fleet.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report In a bid to modernize its fleet, American Airlines AAL inked a deal with Boom Supersonic to purchase up to 20 Overture planes from the latter. AAL already made a non-refundable deposit for the fleet.
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In a bid to modernize its fleet, American Airlines AAL inked a deal with Boom Supersonic to purchase up to 20 Overture planes from the latter. AAL already made a non-refundable deposit for the fleet. Introducing these planes to AAL’s fleet will make travel much faster.
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3306.0
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2022-08-17 00:00:00 UTC
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Why Airline Stocks Are Down Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-down-today-0
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nan
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nan
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What happened
Earnings reports from retailers out this week are raising new questions about the health of the U.S. consumer, with companies including Walmart and Target reporting that people are resilient but focusing more on necessities than on frills in the face of higher inflation.
If so, that's bad news for travel and leisure companies that tend to do best when people have money to spend on extras. Investors are reacting by exiting airline stocks, with shares of JetBlue Airways (NASDAQ: JBLU), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) ending Wednesday down between 2.3% and 4.9%.
So what
Airline investors are already dealing with the lingering effects of the pandemic, a pilot shortage, and higher costs. The last thing they need is for demand to fall off.
But that is exactly what has happened, historically, in times of economic distress. When times are tough, consumers and businesses continue to pay to keep the lights on but tend to defer big-ticket purchases like airline tickets.
The airlines had come into 2022 hoping pent-up demand would lead to a spike in revenue, allowing the industry to pay down some of the debt taken on during the earlier days of the pandemic. The revenue has arrived as expected, but a lack of personnel to fly the planes has limited their ability to take advantage of that demand. Airlines are ramping up staffing as quickly as they can, and can ill-afford a sudden U-turn in demand.
For JetBlue, the threat of a recession is particularly pronounced because the airline has a deal pending to acquire Spirit Airlines, whose stock was down less than 1% today. That deal is predicated on growth, and could turn into a near-term disaster if the economy hits a significant rough patch.
American, as the most indebted major airline, tends to move more than its peers on economic concerns. And United's network is built for corporate and international travel, meaning it could struggle if businesses pull back due to uncertainty.
Now what
It's worth noting that the airlines, along with the broader markets, got a lift midafternoon after the minutes from the latest Federal Reserve meeting were released. The minutes show a Fed that is still concerned about inflation, but seeing signs that some of the rate hikes were beginning to have an impact and that a recession might be avoided.
The so-called "soft landing" scenario, where the Fed can tame inflation without inducing a recession, is the best-case scenario both for airlines and the broader economy. Any sense that government officials have the situation under control is likely to ease investor anxiety, and prevent panic selling.
But no matter what happens from here, there is no quick-fix that will get airlines back to pre-pandemic conditions immediately. It will take time, patience, and the ability to navigate continued headwinds. The debate over airline stocks right now isn't bull vs. bear, but rather how bad things will be and for how long. In such an environment, it is no wonder that the stocks are caught up in a marketwide, inflation-related sell-off.
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Lou Whiteman has positions in Delta Air Lines, Target, and Walmart Inc. The Motley Fool has positions in and recommends Target and Walmart Inc. The Motley Fool recommends Delta Air Lines and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors are reacting by exiting airline stocks, with shares of JetBlue Airways (NASDAQ: JBLU), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) ending Wednesday down between 2.3% and 4.9%. When times are tough, consumers and businesses continue to pay to keep the lights on but tend to defer big-ticket purchases like airline tickets. The airlines had come into 2022 hoping pent-up demand would lead to a spike in revenue, allowing the industry to pay down some of the debt taken on during the earlier days of the pandemic.
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Investors are reacting by exiting airline stocks, with shares of JetBlue Airways (NASDAQ: JBLU), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) ending Wednesday down between 2.3% and 4.9%. See the 10 stocks *Stock Advisor returns as of July 27, 2022 Lou Whiteman has positions in Delta Air Lines, Target, and Walmart Inc. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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Investors are reacting by exiting airline stocks, with shares of JetBlue Airways (NASDAQ: JBLU), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) ending Wednesday down between 2.3% and 4.9%. For JetBlue, the threat of a recession is particularly pronounced because the airline has a deal pending to acquire Spirit Airlines, whose stock was down less than 1% today. See the 10 stocks *Stock Advisor returns as of July 27, 2022 Lou Whiteman has positions in Delta Air Lines, Target, and Walmart Inc.
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Investors are reacting by exiting airline stocks, with shares of JetBlue Airways (NASDAQ: JBLU), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) ending Wednesday down between 2.3% and 4.9%. It will take time, patience, and the ability to navigate continued headwinds. * They just revealed what they believe are the ten best stocks for investors to buy right now... and JetBlue Airways wasn't one of them!
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3307.0
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2022-08-17 00:00:00 UTC
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American Airlines Orders 20 Boom Supersonic Jets
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AAL
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https://www.nasdaq.com/articles/american-airlines-orders-20-boom-supersonic-jets
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nan
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(RTTNews) - American Airlines announced an agreement to purchase up to 20 Overture supersonic jets, the world's fastest airliner, from transportation start-up Boom Supersonic, with an option for an additional 40.
Overture, which is expected to carry passengers at twice the speed of the fastest commercial aircraft available at present, would provide an important new speed advantage to American's fleet.
The company said it has paid a non-refundable deposit on the initial 20 aircraft, but further financial details were not disclosed.
In a tweet, American Airlines said, "Miami ?? London in less than 5hrs? LA ?? Honolulu in 3hrs? Wouldn't that be SUPER? We're here for it and so is @BoomAero. Learn about our partnership with #BoomSupersonic and the #Overture expected to fly 2x the speed of today's fastest commercial jets."
Under the deal terms, Boom must meet industry-standard operating, performance and safety requirements as well as American's other customary conditions before delivery of any Overtures.
Overture, which is optimized for speed, safety, and sustainability, is designed to run on 100% sustainable aviation fuel or SAF.
Overture is being designed to carry 65 to 80 passengers at Mach 1.7 over water, or twice the speed of current fastest commercial aircraft, with a range of 4,250 nautical miles. The airliner is also being designed to fly more than 600 routes around the world in as little as half the time.
Boom is working with Northrop Grumman for government and defense applications. For the Overture program, Boom's suppliers and partners include Collins Aerospace, Eaton, Rolls-Royce, the United States Air Force, American Express, and AWS, among others.
In January, Boom had revealed plans to build a manufacturing facility at the Piedmont Triad International Airport in North Carolina. The Overture Superfactory would employ around 1,750 workers by 2030.
Boom in July revealed the final production design of Overture, which is scheduled to roll out in 2025 and carry its first passengers by 2029.
Currently, Overture's order book stands at 130 aircraft, including purchases and options from American Airlines, United Airlines, and Japan Airlines.
In 2021, United Airlines announced that it would purchase 15 Overture jets once the plane met its safety and operating requirements. The agreement includes an option for United to buy an additional 35 aircraft, for a total of 50 jets.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Under the deal terms, Boom must meet industry-standard operating, performance and safety requirements as well as American's other customary conditions before delivery of any Overtures. Overture is being designed to carry 65 to 80 passengers at Mach 1.7 over water, or twice the speed of current fastest commercial aircraft, with a range of 4,250 nautical miles. For the Overture program, Boom's suppliers and partners include Collins Aerospace, Eaton, Rolls-Royce, the United States Air Force, American Express, and AWS, among others.
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(RTTNews) - American Airlines announced an agreement to purchase up to 20 Overture supersonic jets, the world's fastest airliner, from transportation start-up Boom Supersonic, with an option for an additional 40. Learn about our partnership with #BoomSupersonic and the #Overture expected to fly 2x the speed of today's fastest commercial jets." Currently, Overture's order book stands at 130 aircraft, including purchases and options from American Airlines, United Airlines, and Japan Airlines.
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(RTTNews) - American Airlines announced an agreement to purchase up to 20 Overture supersonic jets, the world's fastest airliner, from transportation start-up Boom Supersonic, with an option for an additional 40. Overture, which is expected to carry passengers at twice the speed of the fastest commercial aircraft available at present, would provide an important new speed advantage to American's fleet. Currently, Overture's order book stands at 130 aircraft, including purchases and options from American Airlines, United Airlines, and Japan Airlines.
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(RTTNews) - American Airlines announced an agreement to purchase up to 20 Overture supersonic jets, the world's fastest airliner, from transportation start-up Boom Supersonic, with an option for an additional 40. Boom in July revealed the final production design of Overture, which is scheduled to roll out in 2025 and carry its first passengers by 2029. Currently, Overture's order book stands at 130 aircraft, including purchases and options from American Airlines, United Airlines, and Japan Airlines.
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3308.0
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2022-08-17 00:00:00 UTC
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Notable Wednesday Option Activity: TPR, FDX, AAL
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AAL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-tpr-fdx-aal
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Tapestry Inc (Symbol: TPR), where a total of 13,522 contracts have traded so far, representing approximately 1.4 million underlying shares. That amounts to about 46.1% of TPR's average daily trading volume over the past month of 2.9 million shares. Especially high volume was seen for the $36 strike call option expiring August 19, 2022, with 3,410 contracts trading so far today, representing approximately 341,000 underlying shares of TPR. Below is a chart showing TPR's trailing twelve month trading history, with the $36 strike highlighted in orange:
FedEx Corp (Symbol: FDX) saw options trading volume of 6,950 contracts, representing approximately 695,000 underlying shares or approximately 44.3% of FDX's average daily trading volume over the past month, of 1.6 million shares. Especially high volume was seen for the $240 strike call option expiring August 19, 2022, with 1,614 contracts trading so far today, representing approximately 161,400 underlying shares of FDX. Below is a chart showing FDX's trailing twelve month trading history, with the $240 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 131,138 contracts, representing approximately 13.1 million underlying shares or approximately 43.4% of AAL's average daily trading volume over the past month, of 30.2 million shares. Especially high volume was seen for the $10 strike put option expiring June 16, 2023, with 18,834 contracts trading so far today, representing approximately 1.9 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange:
For the various different available expirations for TPR options, FDX options, or AAL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $10 strike put option expiring June 16, 2023, with 18,834 contracts trading so far today, representing approximately 1.9 million underlying shares of AAL. Below is a chart showing FDX's trailing twelve month trading history, with the $240 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 131,138 contracts, representing approximately 13.1 million underlying shares or approximately 43.4% of AAL's average daily trading volume over the past month, of 30.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: For the various different available expirations for TPR options, FDX options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing FDX's trailing twelve month trading history, with the $240 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 131,138 contracts, representing approximately 13.1 million underlying shares or approximately 43.4% of AAL's average daily trading volume over the past month, of 30.2 million shares. Especially high volume was seen for the $10 strike put option expiring June 16, 2023, with 18,834 contracts trading so far today, representing approximately 1.9 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: For the various different available expirations for TPR options, FDX options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing FDX's trailing twelve month trading history, with the $240 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 131,138 contracts, representing approximately 13.1 million underlying shares or approximately 43.4% of AAL's average daily trading volume over the past month, of 30.2 million shares. Especially high volume was seen for the $10 strike put option expiring June 16, 2023, with 18,834 contracts trading so far today, representing approximately 1.9 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: For the various different available expirations for TPR options, FDX options, or AAL options, visit StockOptionsChannel.com.
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Especially high volume was seen for the $10 strike put option expiring June 16, 2023, with 18,834 contracts trading so far today, representing approximately 1.9 million underlying shares of AAL. Below is a chart showing FDX's trailing twelve month trading history, with the $240 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 131,138 contracts, representing approximately 13.1 million underlying shares or approximately 43.4% of AAL's average daily trading volume over the past month, of 30.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: For the various different available expirations for TPR options, FDX options, or AAL options, visit StockOptionsChannel.com.
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3309.0
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2022-08-16 00:00:00 UTC
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American Airlines to buy up to 20 Boom Supersonic jets
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-buy-up-to-20-boom-supersonic-jets
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nan
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nan
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Adds details from release
Aug 16 (Reuters) - American Airlines Group Inc AAL.O said on Tuesday it had entered into a deal with Boom Supersonic to buy up to 20 Overture aircraft, with an option to purchase an additional 40 jets.
American added that it had paid a non-refundable deposit on the initial 20 aircraft, but did not disclose the size of the deposit.
Boom's Overture jet is expected to carry passengers at twice the speed of the fastest commercial aircraft available, the company said.
The jet is scheduled to roll out in 2025 and carry its first passengers by 2029, Boom added.
(Reporting by Nathan Gomes in Bengaluru; Editing by Vinay Dwivedi)
((Nathan.Gomes@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from release Aug 16 (Reuters) - American Airlines Group Inc AAL.O said on Tuesday it had entered into a deal with Boom Supersonic to buy up to 20 Overture aircraft, with an option to purchase an additional 40 jets. Boom's Overture jet is expected to carry passengers at twice the speed of the fastest commercial aircraft available, the company said. The jet is scheduled to roll out in 2025 and carry its first passengers by 2029, Boom added.
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Adds details from release Aug 16 (Reuters) - American Airlines Group Inc AAL.O said on Tuesday it had entered into a deal with Boom Supersonic to buy up to 20 Overture aircraft, with an option to purchase an additional 40 jets. Boom's Overture jet is expected to carry passengers at twice the speed of the fastest commercial aircraft available, the company said. The jet is scheduled to roll out in 2025 and carry its first passengers by 2029, Boom added.
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Adds details from release Aug 16 (Reuters) - American Airlines Group Inc AAL.O said on Tuesday it had entered into a deal with Boom Supersonic to buy up to 20 Overture aircraft, with an option to purchase an additional 40 jets. Boom's Overture jet is expected to carry passengers at twice the speed of the fastest commercial aircraft available, the company said. (Reporting by Nathan Gomes in Bengaluru; Editing by Vinay Dwivedi) ((Nathan.Gomes@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from release Aug 16 (Reuters) - American Airlines Group Inc AAL.O said on Tuesday it had entered into a deal with Boom Supersonic to buy up to 20 Overture aircraft, with an option to purchase an additional 40 jets. American added that it had paid a non-refundable deposit on the initial 20 aircraft, but did not disclose the size of the deposit. Boom's Overture jet is expected to carry passengers at twice the speed of the fastest commercial aircraft available, the company said.
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3310.0
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2022-08-16 00:00:00 UTC
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FOCUS-Frontier plans capacity ramp-up in bet on recession-wary American travelers
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AAL
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https://www.nasdaq.com/articles/focus-frontier-plans-capacity-ramp-up-in-bet-on-recession-wary-american-travelers
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nan
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By Rajesh Kumar Singh
CHICAGO, Aug 16 (Reuters) - Frontier Group Holdings Inc ULCC.O is targeting capacity growth of up to 20% through the decade, Chief Executive Barry Biffle told Reuters, as the budget airline pushes to take a bigger share of the U.S. leisure travel market from rivals amid a weakening economy.
From 2024, the Colorado-based carrier is aiming to increase capacity, or the number of seats it offers, by between 10% and 20% a year as it seeks to position itself as America's budget airline after the recent collapse of a deal to merge with rival Spirit Airlines SAVE.N. JetBlue Airways Corp JBLU.O prevailed over Frontier after a months-long bidding war.
Frontier, which is about 82% owned by Bill Franke's Indigo Partners, had previously told investors it would ramp up capacity this year by as much as 15% above the pre-pandemic level and said it would expand 30% year-on-year in 2023.
If Frontier hits the high end of the previously unreported, longer-term growth target, it would emerge as almost the size of 2019-era American Airlines AAL.O, before COVID-19 sent travel into a steep decline.
"We will now be positioned in the market as the only national ultra-low-cost carrier," Franke told Reuters.
Frontier's merger with Spirit would have created a budget airline behemoth and the fifth- largest airline in the United States.
Now the company is putting rivals on notice that it will fight to take share on its own. It will cut basic fares to fire-sale prices, seek to increase nonticket revenue and take advantage of the retreat by some U.S. airlines - and Frontier's own relatively deeper pool of pilots - to open new routes.
Major U.S. carriers have been forced to cut capacity due to staffing shortages. American Airlines, for example, expects its capacity to be down as much as 9.5% this year versus 2019.
WALMART OF THE SKIES
Frontier is betting a business model of low-cost, low-fare will power its growth in a recessionary environment.
"In every recession, Walmart WMT.N does well, and Nordstrom JWN.N has a hard time. So which business model do you want to be in? You want to be in the low cost," Biffle said.
Shares of Frontier have gained nearly 40% following the termination of its merger deal with Spirit in late July.
Immediately after the Spirit deal was called off, Frontier launched a limited-time $19 fare sale for 1 million seats. Biffle said the sale drove a 10 percentage-point jump in reservations from the first half of the year.
Henry Harteveldt, founder of travel consultancy Atmosphere Research Group, said the fare sale shows Frontier to be a "very nimble, and a very aggressive competitor."
Last week, Frontier launched nonstop service to four cities from its Las Vegas base. It is set to start a new nonstop service between Denver and Houston next month with fares as low as $69.
The airline is also seeing opportunities in smaller cities that are losing air service because of pilot shortages at major carriers, Biffle said.
At the same time, Frontier has made clear it will pull service from existing airports if there is a mismatch between what it can charge and costs, as it has done with Los Angeles, Washington-Dulles and Newark where it said airport costs are excessive.
Frontier's strategy hinges on offering ultra-low fares despite elevated fuel and labor costs. It seeks to accomplish this by increasing its nonticket revenue through new ancillary products and services.
The airline charges for extras such as baggage, seat selection and assistance at its ticket counters. But there is a risk of customer pushback if some of nonticket charges come across as "nuisance fees," Harteveldt said.
Similarly, the company could face a challenge in attracting pilots in future if major carriers continue to raise salaries, Harteveldt said.
In response, Frontier pointed to its success in driving up nonticket revenue and said its pilot salaries are competitive with big carriers. To secure pilot supply, the company said it has launched a cadet program through which it expects to source pilots in two years.
Delivery delays at Airbus AIR.PA also run the risk of slowing Frontier's capacity ramp-up. Biffle, however, sees that as a problem only if all of its planes get delayed by five months.
'PATH TO HELL'
Frontier's strategy is rooted in Franke's belief that failure to manage costs is the "path to hell" for airlines.
The 85-year-old entrepreneur, the pioneer of ultra-low-cost air travel, stuck to that view in the bidding war for Spirit and declined to further sweeten his $2.7 billion offer to beat JetBlue's $3.8 billion cash offer.
The decision cost him a deal he had sought for nearly a decade, but Franke said he was fine with the end result.
"It's generally not wise to get emotional about business transactions," he said.
Franke's airline-focused private equity firm, Indigo Partners, also owns stakes in Wizz Air Holdings Plc WIZZ.L, JetSMART of Chile and Mexico's Volaris.
He is open to new investment opportunities in the sector and does not rule out making a fresh bid for Spirit, where he served as chairman from 2006 to 2013, if its transaction with JetBlue fails to close.
Franke insists the focus of ultra-low-cost carriers is leisure travelers, who want "safe, comfortable" air travel at a "very reasonable cost."
He dismissed criticism about the quality of customer service, citing data from Europe where budget carriers like Ryanair Holdings Plc RYA.I and Wizz Air have over 20% of the market share and dominate short-haul leisure travel.
"It's a clear indication that we're providing a service that people want," Franke said.
JetBlue wins Spirit takeover battle with $3.8 billion deal
TIMELINE-Battle for Spirit Airlines enters final stretch
(Reporting by Rajesh Kumar Singh in Chicago Editing by Kevin Krolicki and Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If Frontier hits the high end of the previously unreported, longer-term growth target, it would emerge as almost the size of 2019-era American Airlines AAL.O, before COVID-19 sent travel into a steep decline. It will cut basic fares to fire-sale prices, seek to increase nonticket revenue and take advantage of the retreat by some U.S. airlines - and Frontier's own relatively deeper pool of pilots - to open new routes. Franke's airline-focused private equity firm, Indigo Partners, also owns stakes in Wizz Air Holdings Plc WIZZ.L, JetSMART of Chile and Mexico's Volaris.
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If Frontier hits the high end of the previously unreported, longer-term growth target, it would emerge as almost the size of 2019-era American Airlines AAL.O, before COVID-19 sent travel into a steep decline. By Rajesh Kumar Singh CHICAGO, Aug 16 (Reuters) - Frontier Group Holdings Inc ULCC.O is targeting capacity growth of up to 20% through the decade, Chief Executive Barry Biffle told Reuters, as the budget airline pushes to take a bigger share of the U.S. leisure travel market from rivals amid a weakening economy. "We will now be positioned in the market as the only national ultra-low-cost carrier," Franke told Reuters.
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If Frontier hits the high end of the previously unreported, longer-term growth target, it would emerge as almost the size of 2019-era American Airlines AAL.O, before COVID-19 sent travel into a steep decline. By Rajesh Kumar Singh CHICAGO, Aug 16 (Reuters) - Frontier Group Holdings Inc ULCC.O is targeting capacity growth of up to 20% through the decade, Chief Executive Barry Biffle told Reuters, as the budget airline pushes to take a bigger share of the U.S. leisure travel market from rivals amid a weakening economy. From 2024, the Colorado-based carrier is aiming to increase capacity, or the number of seats it offers, by between 10% and 20% a year as it seeks to position itself as America's budget airline after the recent collapse of a deal to merge with rival Spirit Airlines SAVE.N.
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If Frontier hits the high end of the previously unreported, longer-term growth target, it would emerge as almost the size of 2019-era American Airlines AAL.O, before COVID-19 sent travel into a steep decline. By Rajesh Kumar Singh CHICAGO, Aug 16 (Reuters) - Frontier Group Holdings Inc ULCC.O is targeting capacity growth of up to 20% through the decade, Chief Executive Barry Biffle told Reuters, as the budget airline pushes to take a bigger share of the U.S. leisure travel market from rivals amid a weakening economy. From 2024, the Colorado-based carrier is aiming to increase capacity, or the number of seats it offers, by between 10% and 20% a year as it seeks to position itself as America's budget airline after the recent collapse of a deal to merge with rival Spirit Airlines SAVE.N.
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3311.0
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2022-08-15 00:00:00 UTC
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FAA warns of significant delays at New York area airports
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AAL
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https://www.nasdaq.com/articles/faa-warns-of-significant-delays-at-new-york-area-airports-0
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nan
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nan
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By David Shepardson
WASHINGTON, Aug 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) warned on Monday airline passengers at New York City-area airports could see significant delays in the evening due to air traffic control staffing issues.
The FAA said "departure and arrival delays this evening could approach two hours" at John F. Kennedy (JFK), New York LaGuardia and Newark Liberty airports. The FAA also issued a ground stop at LaGuardia set to last until 6:15 p.m.
FlightAware, a flight tracking website, said just over 600 flights at the three airports had been delayed on Monday, 16% of arriving and 11% of departing flights at Newark, about 18% of both arriving and departing flights at LaGuardia and around 15% of both at JFK.
A person briefed on the matter said the staffing issue was related to sick leave. The New York City area has the most congested airspace in the United States.
U.S. airlines have blamed a significant part of the summer travel disruptions, which have impacted tens of thousands of flights, on a lack of air traffic control staffing. In June, an airline trade group said FAA staffing issues were "crippling" East Coast traffic.
Rich Santa, who heads the National Air Traffic Controllers Association, said in July the FAA needs to do a better job of ensuring adequate staffing to oversee national airspace.
Santa said "unfortunately, FAA staffing is not keeping up with attrition."
Acting FAA Administrator Billy Nolen told Reuters in July the FAA was "on track to hire 1,000 controllers this year." For 1,500 open positions, the FAA accepted 57,956 applications for review.
Air traffic controllers work in control towers, approach control facilities, or route centers, and are essential for coordinating aircraft traffic between the nation's airports.
The FAA said last month "airlines’ data show that the vast majority of delays are not due to air traffic controller staffing. Where demand has increased, the FAA is adding additional controllers."
(Reporting by David Shepardson Editing by Chris Reese and Sam Holmes)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, Aug 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) warned on Monday airline passengers at New York City-area airports could see significant delays in the evening due to air traffic control staffing issues. The FAA said "departure and arrival delays this evening could approach two hours" at John F. Kennedy (JFK), New York LaGuardia and Newark Liberty airports. U.S. airlines have blamed a significant part of the summer travel disruptions, which have impacted tens of thousands of flights, on a lack of air traffic control staffing.
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By David Shepardson WASHINGTON, Aug 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) warned on Monday airline passengers at New York City-area airports could see significant delays in the evening due to air traffic control staffing issues. The FAA also issued a ground stop at LaGuardia set to last until 6:15 p.m. FlightAware, a flight tracking website, said just over 600 flights at the three airports had been delayed on Monday, 16% of arriving and 11% of departing flights at Newark, about 18% of both arriving and departing flights at LaGuardia and around 15% of both at JFK. U.S. airlines have blamed a significant part of the summer travel disruptions, which have impacted tens of thousands of flights, on a lack of air traffic control staffing.
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By David Shepardson WASHINGTON, Aug 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) warned on Monday airline passengers at New York City-area airports could see significant delays in the evening due to air traffic control staffing issues. The FAA also issued a ground stop at LaGuardia set to last until 6:15 p.m. FlightAware, a flight tracking website, said just over 600 flights at the three airports had been delayed on Monday, 16% of arriving and 11% of departing flights at Newark, about 18% of both arriving and departing flights at LaGuardia and around 15% of both at JFK. Air traffic controllers work in control towers, approach control facilities, or route centers, and are essential for coordinating aircraft traffic between the nation's airports.
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By David Shepardson WASHINGTON, Aug 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) warned on Monday airline passengers at New York City-area airports could see significant delays in the evening due to air traffic control staffing issues. A person briefed on the matter said the staffing issue was related to sick leave. Rich Santa, who heads the National Air Traffic Controllers Association, said in July the FAA needs to do a better job of ensuring adequate staffing to oversee national airspace.
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3312.0
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2022-08-15 00:00:00 UTC
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FAA warns of significant delays at New York area airports
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AAL
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https://www.nasdaq.com/articles/faa-warns-of-significant-delays-at-new-york-area-airports
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nan
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nan
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WASHINGTON, Aug 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) said on Monday because of air traffic control staffing issues that airline passengers at New York City area airports could see significant delays on Monday evening.
The FAA said "departure and arrival delays this evening could approach two hours at John F. Kennedy International, New York LaGuardia and Newark Liberty International airports."
A person briefed on the matter said the staffing issue was related to sick leave.
(Reporting by David Shepardson Editing by Chris Reese)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) said on Monday because of air traffic control staffing issues that airline passengers at New York City area airports could see significant delays on Monday evening. The FAA said "departure and arrival delays this evening could approach two hours at John F. Kennedy International, New York LaGuardia and Newark Liberty International airports." A person briefed on the matter said the staffing issue was related to sick leave.
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WASHINGTON, Aug 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) said on Monday because of air traffic control staffing issues that airline passengers at New York City area airports could see significant delays on Monday evening. The FAA said "departure and arrival delays this evening could approach two hours at John F. Kennedy International, New York LaGuardia and Newark Liberty International airports." A person briefed on the matter said the staffing issue was related to sick leave.
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WASHINGTON, Aug 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) said on Monday because of air traffic control staffing issues that airline passengers at New York City area airports could see significant delays on Monday evening. The FAA said "departure and arrival delays this evening could approach two hours at John F. Kennedy International, New York LaGuardia and Newark Liberty International airports." (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) said on Monday because of air traffic control staffing issues that airline passengers at New York City area airports could see significant delays on Monday evening. The FAA said "departure and arrival delays this evening could approach two hours at John F. Kennedy International, New York LaGuardia and Newark Liberty International airports." A person briefed on the matter said the staffing issue was related to sick leave.
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3313.0
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2022-08-15 00:00:00 UTC
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Strong week for American Airlines Group (NASDAQ:AAL) shareholders doesn't alleviate pain of five-year loss
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AAL
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https://www.nasdaq.com/articles/strong-week-for-american-airlines-group-nasdaq%3Aaal-shareholders-doesnt-alleviate-pain-of
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nan
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Statistically speaking, long term investing is a profitable endeavour. But that doesn't mean long term investors can avoid big losses. For example, after five long years the American Airlines Group Inc. (NASDAQ:AAL) share price is a whole 67% lower. We certainly feel for shareholders who bought near the top. And it's not just long term holders hurting, because the stock is down 23% in the last year.
On a more encouraging note the company has added US$331m to its market cap in just the last 7 days, so let's see if we can determine what's driven the five-year loss for shareholders.
Given that American Airlines Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last five years American Airlines Group saw its revenue shrink by 12% per year. That puts it in an unattractive cohort, to put it mildly. Arguably, the market has responded appropriately to this business performance by sending the share price down 11% (annualized) in the same time period. It's fair to say most investors don't like to invest in loss making companies with falling revenue. You'd want to research this company pretty thoroughly before buying, it looks a bit too risky for us.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
NasdaqGS:AAL Earnings and Revenue Growth August 15th 2022
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free report showing analyst forecasts should help you form a view on American Airlines Group
A Different Perspective
We regret to report that American Airlines Group shareholders are down 23% for the year. Unfortunately, that's worse than the broader market decline of 8.9%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 11% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand American Airlines Group better, we need to consider many other factors. For instance, we've identified 3 warning signs for American Airlines Group (2 are a bit concerning) that you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, after five long years the American Airlines Group Inc. (NASDAQ:AAL) share price is a whole 67% lower. NasdaqGS:AAL Earnings and Revenue Growth August 15th 2022 We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. Given that American Airlines Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development.
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For example, after five long years the American Airlines Group Inc. (NASDAQ:AAL) share price is a whole 67% lower. NasdaqGS:AAL Earnings and Revenue Growth August 15th 2022 We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. This free report showing analyst forecasts should help you form a view on American Airlines Group A Different Perspective We regret to report that American Airlines Group shareholders are down 23% for the year.
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For example, after five long years the American Airlines Group Inc. (NASDAQ:AAL) share price is a whole 67% lower. NasdaqGS:AAL Earnings and Revenue Growth August 15th 2022 We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. Given that American Airlines Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development.
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For example, after five long years the American Airlines Group Inc. (NASDAQ:AAL) share price is a whole 67% lower. NasdaqGS:AAL Earnings and Revenue Growth August 15th 2022 We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. Given that American Airlines Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development.
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3314.0
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2022-08-15 00:00:00 UTC
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Zacks.com featured highlights include C.H. Robinson Worldwide, Covenant Logistics, ArcBest, American Airlines and Bunge
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AAL
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-c.h.-robinson-worldwide-covenant-logistics-arcbest
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For Immediate Release
Chicago, IL – August 15, 2022 – Stocks in this week’s article are C.H. Robinson Worldwide CHRW, Covenant Logistics Group CVLG, ArcBest Corp. ARCB, American Airlines AAL and Bunge Ltd. BG.
5 Stocks Worth a Look After Brokerage Upgrades
The ongoing second-quarter 2022 earnings season, which is in its last leg, has turned out to be quite satisfactory despite sore points like supply-chain woes and red-hot inflation posing a challenge. The pretty decent picture so far has been highlighted by the improvement in the top and the bottom lines of the S&P 500 companies (that already reported), which grew 15.3% and 8.1%, respectively, on a year-over-year basis (data provided by our latest earnings outlook).
While 77.4% companies beat expectations on the revenue front, 68.4% participants outpaced on earnings. Generally, an earnings beat by a company leads to an appreciation in its stock price. Moreover, the fact that inflation in the United States moderated a bit (the consumer price index was up 8.5% year over year in July, down from a 9.1% year-over-year increase in June) brightens the scenario. Against this bullish backdrop, broker-favorite stocks like C.H. Robinson Worldwide,Covenant Logistics Group,ArcBest Corp.,American Airlines andBunge Ltd. should be on investors' watch list.
Why Is Broker Advice Important?
Brokers not only scrutinize the publicly available financial documents but also attend company conference calls and other presentations. Naturally, it is rewarding for investors to adhere to such well-researched information as the same aims to generate maximum returns from their portfolio. The estimate revisions serve as an important pointer regarding the price of a stock.
Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide an unbiased opinion to investors after a thorough research. Buy-side analysts are employed by hedge funds, mutual funds, etc., while the independent ones simply sell their reports to investors.
To take care of the earnings performance, we designed a screen based on improving broker recommendations and upward estimate revisions over the last four weeks.
Do Not Ignore the Top Line
However, designing a strategy based solely on the bottom line is unlikely to result in a winning approach. Actually, according to many market watchers, a revenue beat is more credible for a company than a mere earnings beat. To address the top-line concerns, we included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
Here are five of the 10 stocks that made it through the screen:
C.H. Robinson Worldwide, currently sporting a Zacks Rank #1 (Strong Buy), operates as an asset-light logistics player. The improving freight scenario in the United States is aiding this Minnesota-based freight broker. Efforts to control costs also bode well. Measures to reward CHRW's shareholders instill further confidence in the stock.
C.H. Robinson has an encouraging earnings track record. The bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark in the remaining one). CHRW has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 14.1% upward over the past 60 days.
You can see the complete list of today's Zacks #1 Rank stocks
Covenant Logistics offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, as well as asset-light warehousing, transportation management and freight brokerage capability.
The gradually improving freight market scenario is a tailwind to Covenant. CVLG's cost-control efforts are encouraging as well. CVLG currently flaunts a Zacks Rank of 1. CVLG has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 14.3% upward over the past 60 days.
ArcBest: Based in Fort Smith, AK, ARCB provides freight transportation services and solutions. Strong freight demand and favorable pricing are driving growth across ArcBest's Asset-Based and Asset-Light segments.
The Zacks Consensus Estimate for ArcBest's 2022 earnings has been revised 4.7% upward in the past 60 days. ARCB currently carries a Zacks Rank #2 (Buy).
American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.
Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 7.8% upward. AAL currently carries a Zacks Rank #3 (Hold).
Bunge Limited: Headquartered in St. Louis, MO, Bunge operates as an agribusiness firm, delivering essential food, feed and fuel across the globe. BG is reportedly the world's leader in oilseed processing, and a leading producer and supplier of specialty plant-based oils and fats.
Bunge delivered a trailing four-quarter earnings surprise of 50.7%, on average. BG has a long-term earnings growth expectation of 6.7%. It currently carries a Zacks Rank of 3.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1967672/5-stocks-worth-a-look-following-upgrade-by-brokers
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
Bunge Limited (BG): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
ArcBest Corporation (ARCB): Free Stock Analysis Report
Covenant Logistics Group, Inc. (CVLG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Robinson Worldwide CHRW, Covenant Logistics Group CVLG, ArcBest Corp. ARCB, American Airlines AAL and Bunge Ltd. BG. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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Robinson Worldwide CHRW, Covenant Logistics Group CVLG, ArcBest Corp. ARCB, American Airlines AAL and Bunge Ltd. BG. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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Robinson Worldwide CHRW, Covenant Logistics Group CVLG, ArcBest Corp. ARCB, American Airlines AAL and Bunge Ltd. BG. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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Robinson Worldwide CHRW, Covenant Logistics Group CVLG, ArcBest Corp. ARCB, American Airlines AAL and Bunge Ltd. BG. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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3315.0
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2022-08-15 00:00:00 UTC
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S.Africa's Thungela half-year profit surges on higher coal prices
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AAL
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https://www.nasdaq.com/articles/s.africas-thungela-half-year-profit-surges-on-higher-coal-prices
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nan
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Adds detail
Aug 15 (Reuters) - South Africa's Thungela Resources TGAJ.J on Monday reported a half-year profit more than 20 times that of the year before buoyed by soaring coal prices although it warned that inflationary pressures remain a concern.
Thungela reported headline earnings per share (HEPS) - the main profit measure in South Africa - of 67.23 rand ($4.14) for the six months to June 30, up from 3.05 rand a year earlier.
Coal prices have been driven to record highs by increased gas-to-coal switching especially after Russia, a major gas supplier to Europe, invaded Ukraine in February.
Thungela, which was spun off from global mining giant Anglo American PlcAAL.Lin June 2021, said it would return 8.2 billion rand ($505.30 million) to shareholders after declaring a dividend of 60 rand per share.
($1 = 16.2280 rand)
(Reporting by Nelson Banya; editing by Jason Neely)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Thungela, which was spun off from global mining giant Anglo American PlcAAL.Lin June 2021, said it would return 8.2 billion rand ($505.30 million) to shareholders after declaring a dividend of 60 rand per share. Adds detail Aug 15 (Reuters) - South Africa's Thungela Resources TGAJ.J on Monday reported a half-year profit more than 20 times that of the year before buoyed by soaring coal prices although it warned that inflationary pressures remain a concern. Coal prices have been driven to record highs by increased gas-to-coal switching especially after Russia, a major gas supplier to Europe, invaded Ukraine in February.
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Thungela, which was spun off from global mining giant Anglo American PlcAAL.Lin June 2021, said it would return 8.2 billion rand ($505.30 million) to shareholders after declaring a dividend of 60 rand per share. Adds detail Aug 15 (Reuters) - South Africa's Thungela Resources TGAJ.J on Monday reported a half-year profit more than 20 times that of the year before buoyed by soaring coal prices although it warned that inflationary pressures remain a concern. Thungela reported headline earnings per share (HEPS) - the main profit measure in South Africa - of 67.23 rand ($4.14) for the six months to June 30, up from 3.05 rand a year earlier.
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Thungela, which was spun off from global mining giant Anglo American PlcAAL.Lin June 2021, said it would return 8.2 billion rand ($505.30 million) to shareholders after declaring a dividend of 60 rand per share. Adds detail Aug 15 (Reuters) - South Africa's Thungela Resources TGAJ.J on Monday reported a half-year profit more than 20 times that of the year before buoyed by soaring coal prices although it warned that inflationary pressures remain a concern. Thungela reported headline earnings per share (HEPS) - the main profit measure in South Africa - of 67.23 rand ($4.14) for the six months to June 30, up from 3.05 rand a year earlier.
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Thungela, which was spun off from global mining giant Anglo American PlcAAL.Lin June 2021, said it would return 8.2 billion rand ($505.30 million) to shareholders after declaring a dividend of 60 rand per share. Adds detail Aug 15 (Reuters) - South Africa's Thungela Resources TGAJ.J on Monday reported a half-year profit more than 20 times that of the year before buoyed by soaring coal prices although it warned that inflationary pressures remain a concern. Thungela reported headline earnings per share (HEPS) - the main profit measure in South Africa - of 67.23 rand ($4.14) for the six months to June 30, up from 3.05 rand a year earlier.
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3316.0
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2022-08-14 00:00:00 UTC
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The 5 Best Airline Stocks to Buy Now
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AAL
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https://www.nasdaq.com/articles/the-5-best-airline-stocks-to-buy-now
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airliners are on the up again. Factors such as easing pandemic lockdowns and proliferating summer travel have coalesced to form an exponentially growing air travel market. For investors, that creates an opportunity in some of the best airline stocks to buy.
Earlier this month, the Bureau of Transportation Statistics revealed that U.S. airfares soared by 34.1% in June, adding to an array of strong year-to-date numbers for the industry.
Furthermore, there seems to be intra-industry optimism. United Airlines (NASDAQ:UAL) CEO Scott Kirby recently opined the following:
If you look at fares, while they’re up a lot from pre-pandemic lows, in real terms, our fares in the second quarter are going to be back to about where they were in 2014. So we’re back to kind of a normal pricing environment. We’re just returning to normal.
It’s clear that there’s no dearth of indicators supporting a surge in the airline industry. So, which airline stocks should you invest in? Consider these seven best-in-class assets.
Best Airline Stocks: Southwest Airlines (LUV)
Source: Carlos E. Santa Maria / Shutterstock.com
Southwest Airlines (NYSE:LUV) has been one of the top industrial gainers after Susquehanna upgraded the stock to a positive rating earlier this month. According to the brokerage firm, LUV stock is an outlier due to the company’s successful revenue initiatives and its break into the corporate space.
Investors have the opportunity to snap up LUV stock at a normalized price-sales discount. Additionally, the stock is trading above its 10- and 50-day moving averages, implying that a momentum pattern has formed.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
Capacity concerns have overshadowed American Airlines’ (NASDAQ:AAL) 80% year-over-year revenue surge, reported in its second-quarter earnings release. Although the company’s third-quarter revenue is expected to land between 10% to 12% higher than in 2019, American Airlines anticipates capacity to recede by 8% to 10%.
I don’t see capacity issues as a long-run implication. In fact, I believe American Airlines’ approximate 18.6% market share and its loyal consumer base provides it with pricing power that few airlines have. As such, the company could likely counteract any capacity issues with higher fare prices.
Best Airline Stocks: Delta Air Lines (DAL)
Source: Markus Mainka / Shutterstock.com
Delta Air Lines (NYSE:DAL) stock is supported by a variety of buy signals. For instance, company director, David Taylor recently opted to buy an additional 10,000 shares, suggesting that internal management holds confidence in the firm’s near-term financial performance.
Furthermore, Delta recently ordered 12 A220 aircraft from Airbus (OTCMKTS:EADSY) and 100 737 Max jets from Boeing (NYSE:BA), conveying the firm’s confident outlook.
The stock’s trading at a 2.08x discount to its sales, meaning that DAL stock is on the cheap.
Hawaiian Holdings (HA)
Source: Markus Mainka / Shutterstock.com
Hawaiian Holdings (NASDAQ:HA) is an earnings momentum play. The company reported its second-quarter financial results late in July and revealed revenue of $691 million (up 68.2% year over year), beating estimates by $21.03 million.
With a beta coefficient of 1.53, this is considered a high-risk asset. However, HA stock could be an excellent high-beta play for all types of investors during an airline bull market, especially as it’s trading at a 2.44x discount to its sales.
Best Airline Stocks: Air Canada (ACDVF)
Source: Vytautas Kielaitis / Shutterstock
Air Canada (OTCMKTS:ACDVF) is another airliner that recently earned recognition from Wall Street analysts. According to Matthew Lee of Canaccord Genuity, Air Canada’s “28% decline over the prior three months has created an attractive buying opportunity not seen since the heart of the pandemic.”
Furthermore, the company recently established an exciting codeshare initiative with Emirates to drive passenger growth. The agreement includes additional customer travel choices as well as reciprocal lounge access and flyer miles.
Air Canada exhibits robust top-line growth with a year-over-year revenue surge of 2.6x. In addition, the stock is trading at a 1.4x discount to its sales, suggesting that market participants have yet to price in the stock’s full potential.
On the date of publication, Steve Booyens held indirect long positions in AAL, DAL, and LUV. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Steve co-founded Pearl Gray Equity and Research in 2020 and has been responsible for institutional equity research and PR ever since. Before founding the firm, Steve spent time working in various finance roles in London and South Africa. He holds an MSc in Investment Banking from Queen Mary – University of London and is working towards his Ph.D. in Finance, in which he’s attempting to challenge the renowned Fama-French 5-factor pricing model by incorporating ESG factors. His articles are published on various reputable web pages such as Seeking Alpha, TipRanks, Yahoo Finance, and Benzinga. Steve’s articles on InvestorPlace form an interesting juxtaposition between mainstream opinion and objective theory. Readers can expect coverage on frequently traded stocks, cryptocurrencies, crowdfunding, and ETFs.
The post The 5 Best Airline Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Capacity concerns have overshadowed American Airlines’ (NASDAQ:AAL) 80% year-over-year revenue surge, reported in its second-quarter earnings release. On the date of publication, Steve Booyens held indirect long positions in AAL, DAL, and LUV. For instance, company director, David Taylor recently opted to buy an additional 10,000 shares, suggesting that internal management holds confidence in the firm’s near-term financial performance.
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American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Capacity concerns have overshadowed American Airlines’ (NASDAQ:AAL) 80% year-over-year revenue surge, reported in its second-quarter earnings release. On the date of publication, Steve Booyens held indirect long positions in AAL, DAL, and LUV. Best Airline Stocks: Delta Air Lines (DAL) Source: Markus Mainka / Shutterstock.com Delta Air Lines (NYSE:DAL) stock is supported by a variety of buy signals.
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American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Capacity concerns have overshadowed American Airlines’ (NASDAQ:AAL) 80% year-over-year revenue surge, reported in its second-quarter earnings release. On the date of publication, Steve Booyens held indirect long positions in AAL, DAL, and LUV. Best Airline Stocks: Southwest Airlines (LUV) Source: Carlos E. Santa Maria / Shutterstock.com Southwest Airlines (NYSE:LUV) has been one of the top industrial gainers after Susquehanna upgraded the stock to a positive rating earlier this month.
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American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Capacity concerns have overshadowed American Airlines’ (NASDAQ:AAL) 80% year-over-year revenue surge, reported in its second-quarter earnings release. On the date of publication, Steve Booyens held indirect long positions in AAL, DAL, and LUV. Best Airline Stocks: Southwest Airlines (LUV) Source: Carlos E. Santa Maria / Shutterstock.com Southwest Airlines (NYSE:LUV) has been one of the top industrial gainers after Susquehanna upgraded the stock to a positive rating earlier this month.
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3317.0
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2022-08-12 00:00:00 UTC
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5 Stocks Worth a Look Following Upgrade by Brokers
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https://www.nasdaq.com/articles/5-stocks-worth-a-look-following-upgrade-by-brokers
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The ongoing second-quarter 2022 earnings season, which is in its last leg, has turned out to be quite satisfactory despite sore points like supply-chain woes and red-hot inflation posing a challenge. The pretty decent picture so far has been highlighted by the improvement in the top and the bottom lines of the S&P 500 companies (that already reported), which grew 15.3% and 8.1%, respectively, on a year-over-year basis (data provided by our latest earnings outlook).
While 77.4% companies beat expectations on the revenue front, 68.4% participants outpaced on earnings. Generally, an earnings beat by a company leads to an appreciation in its stock price. Moreover, the fact that inflation in the United States moderated a bit (the consumer price index was up 8.5% year over year in July, down from a 9.1% year-over-year increase in June) brightens the scenario. Against this bullish backdrop, broker-favorite stocks like C.H. Robinson Worldwide CHRW,Covenant Logistics Group CVLG, ArcBest Corporation ARCB, American Airlines AAL and Bunge Limited BG should be on investors’ watch list.
Why is Broker Advice Important?
Brokers not only scrutinize the publicly available financial documents but also attend company conference calls and other presentations. Naturally, it is rewarding for investors to adhere to such well-researched information as the same aims to generate maximum returns from their portfolio. The estimate revisions serve as an important pointer regarding the price of a stock.
Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide an unbiased opinion to investors after a thorough research. Buy-side analysts are employed by hedge funds, mutual funds, etc., while the independent ones simply sell their reports to investors.
To take care of the earnings performance, we designed a screen based on improving broker recommendations and upward estimate revisions over the last four weeks.
Do Not Ignore the Top Line
However, designing a strategy based solely on the bottom line is unlikely to result in a winning approach. Actually, according to many market watchers, a revenue beat is more creditable for a company than a mere earnings beat. To address the top-line concerns, we included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
We have also added the following screening parameters to ensure that the strategy is a winning one:
Price-to-Sales = Bot%10(The lower the ratio the better, companies meeting this criteria are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio).
Price greater than 5(as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com (This takes out the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
C.H. Robinson Worldwide, currently sporting a Zacks Rank #1 (Strong Buy), operates as an asset-light logistics player. The improving freight scenario in the United States is aiding this Minnesota-based freight broker. Efforts to control costs also bode well. Measures to reward CHRW's shareholders instill further confidence in the stock.
C.H. Robinson has an encouraging earnings track record. The bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark in the remaining one). CHRW has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 14.1% upward over the past 60 days.
You can see the complete list of today's Zacks #1 Rank stocks
Covenant Logistics offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, as well as asset-light warehousing, transportation management and freight brokerage capability.
The gradually improving freight market scenario is a tailwind to Covenant. CVLG’s cost-control efforts are encouraging as well. CVLG currently flaunts a Zacks Rank of 1. CVLG has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 14.3% upward over the past 60 days.
ArcBest: Based in Fort Smith, AK, ARCB provides freight transportation services and solutions. Strong freight demand and favorable pricing are driving growth across ArcBest’s Asset-Based and Asset-Light segments.
The Zacks Consensus Estimate for ArcBest’s 2022 earnings has been revised 4.7% upward in the past 60 days. ARCB currently carries a Zacks Rank #2 (Buy).
American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.
Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 7.8% upward. AAL currently carries a Zacks Rank #3 (Hold).
Bunge Limited: Headquartered in St. Louis, MO, Bunge operates as an agribusiness firm, delivering essential food, feed and fuel across the globe. BG is reportedly the world’s leader in oilseed processing, and a leading producer and supplier of specialty plant-based oils and fats.
Bunge delivered a trailing four-quarter earnings surprise of 50.7%, on average. BG has a long-term earnings growth expectation of 6.7%. It currently carries a Zacks Rank of 3.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
Bunge Limited (BG): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
ArcBest Corporation (ARCB): Free Stock Analysis Report
Covenant Logistics Group, Inc. (CVLG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Robinson Worldwide CHRW,Covenant Logistics Group CVLG, ArcBest Corporation ARCB, American Airlines AAL and Bunge Limited BG should be on investors’ watch list. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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Robinson Worldwide CHRW,Covenant Logistics Group CVLG, ArcBest Corporation ARCB, American Airlines AAL and Bunge Limited BG should be on investors’ watch list. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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Robinson Worldwide CHRW,Covenant Logistics Group CVLG, ArcBest Corporation ARCB, American Airlines AAL and Bunge Limited BG should be on investors’ watch list. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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Robinson Worldwide CHRW,Covenant Logistics Group CVLG, ArcBest Corporation ARCB, American Airlines AAL and Bunge Limited BG should be on investors’ watch list. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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3318.0
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2022-08-12 00:00:00 UTC
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Airlines Earnings Mixed: What Lies ahead of ETF?
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AAL
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https://www.nasdaq.com/articles/airlines-earnings-mixed%3A-what-lies-ahead-of-etf
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It’s been more than three weeks since Delta Air Lines Inc. DAL kick started the second-quarter earnings season for the airline space. Overall, the season has been mixed for the industry. The sector still has to traverse a long way before it can reach the pre-pandemic level.
However, the pureplay airlines ETF U.S. Global Jets ETF JETS has gained 8.4% past month (as of Aug 3, 2022). In fact, the fund beat the S&P 500 (up 8.6%) in the past one-month period.
This makes JETS a great bet for vaccine rollout and economic optimism. Still, we need to pay attention to the earnings picture of the industry. Let’s delve a little deeper.
Inside the Headlines
Delta Air Lines’ DAL second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71. Escalated operating expenses induced the earnings miss.
Delta’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million but also soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows.The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
United Airlines’ UAL second-quarter 2022 earnings (excluding 43 cents from non-recurring items) of $1.43 per share fell short of the Zacks Consensus Estimate of $1.86. Operating revenues of $12,112 million marginally beat the Zacks Consensus Estimate of $12,033.7 million. Revenues increased more than 100% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 6.2% from second-quarter 2019 (pre-coronavirus) levels.
American Airlines’ AAL second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. Escalated operating expenses induced the earnings miss. Operating revenues of $13,422 million skyrocketed 79.5% year over year and also surpassed the Zacks Consensus Estimate of $13,409.8 million. This massive year-over-year jump reflects upbeat air-travel demand. Buoyant air-travel demand is also reflected by the fact that total operating revenues increased 12.2% from the second-quarter 2019 (pre-coronavirus) levels despite operating at an 8.5% lower capacity.
Low-cost carrier Southwest Airlines Co. LUV reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate. Quarterly earnings of $1.30 outpaced the Zacks Consensus Estimate of $1.17. Moreover, the bottom line improved by more than 100% year over year. Operating revenues of $6,728 million outperformed the Zacks Consensus Estimate of $6,719.1 million and jumped 67.9% year over year..
JetBlue Airways JBLU incurred a second-quarter 2021 loss (excluding 11 cents from non-recurring items) of 47 cents per share, comparing unfavorably with the Zacks Consensus Estimate of a loss of 11 cents. Higher operating expenses hurt the bottom line. This wider-than-expected loss disappointed investors. Consequently, shares of JBLU declined 6.4% on Aug 2.
Operating revenues of $2,445 million surged 63.1% year over year but fell short of the Zacks Consensus Estimate of $2,468.3 million. This massive year-over-year jump reflects improving air-travel demand.
Alaska Air Group ALK reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate. Quarterly earnings of $2.19 per share (excluding $1.10 from non-recurring items) beat the Zacks Consensus Estimate of $1.94. The bottom line surged more than 100% year over year.
Operating revenues of $2,658 million outperformed the Zacks Consensus Estimate of $2,590.3 million. The top line surged 74% year over year with passenger revenues accounting for 90.9% of the top line and soaring 79% owing to continued recovery in air-travel demand.
ETF in Focus
The $2.55-billion-fund holds about 30 stocks in its portfolio and is concentrated on a few individual securities. All the above-mentioned stocks get a place in the portfolio. The product charges 60 bps in fees.
Bottom Line
While the earnings picture is still moderately gloomy, some companies beat on estimates. This shows a feeble hope for recovery in the coming days. If there is a steady improvement in the coronavirus scenario globally, one can surely see a jump in this otherwise-undervalued product JETS. However, any kind of worsening in the COVID situation may harm the fund over the medium term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
U.S. Global Jets ETF (JETS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines’ AAL second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. American Airlines Group Inc. (AAL): Free Stock Analysis Report Inside the Headlines Delta Air Lines’ DAL second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71.
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American Airlines’ AAL second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. American Airlines Group Inc. (AAL): Free Stock Analysis Report Inside the Headlines Delta Air Lines’ DAL second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71.
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American Airlines’ AAL second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million but also soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows.The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
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American Airlines’ AAL second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million but also soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows.The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
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3319.0
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2022-08-12 00:00:00 UTC
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U.S. flight cancellations, delays this year surpass 2019 levels - data
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https://www.nasdaq.com/articles/u.s.-flight-cancellations-delays-this-year-surpass-2019-levels-data
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By Nathan Gomes
Aug 12 (Reuters) - Flight cancellations and delays by U.S. airlines in the first seven months of the year have surpassed the comparable 2019 period, data showed, as staff shortages and adverse weather pummel operations.
U.S.-based carriers scrapped 128,934 flights from January to July, up about 11% from pre-pandemic levels, according to data from flight-tracking website FlightAware. Flight delays have also reached nearly a million this year.
American Airlines Group Inc AAL.O canceled 19,717 flights, the most among big U.S. carriers, followed by Southwest Airlines Co LUV.N at 17,381 flights. Delta Air Lines Inc DAL.N reported the least cancellations at roughly 10,000 flights.
Airlines have faced a turbulent year, attracting intense regulatory scrutiny as their capacity to run flights was challenged by a shortage of pilots and unexpected storms.
Carriers have raised fares to cater to a surge in domestic travel that is fast approaching pre-pandemic levels, but have been unable to fly all the passengers they book, drawing ire from lawmakers.
Last month, two U.S. senators urged the U.S. Transportation Department to fine airlines that delay or cancel flights because of staffing or operational issues, while Transportation Secretary Pete Buttigieg has called for a refresh of rules that govern airlines.
Airlines say they are making every effort, including ramping up staffing, to accommodate a rapid recovery in air travel. They have also blamed a significant part of summer travel disruptions on a lack of air traffic control staffing.
Flight delays from U.S airlines rose to 993,841 this year from 922,400 in the first seven months of 2019, according to FlightAware.
However, some respite seems to be in sight.
"With increased capacity, higher fares, and lessened demand, the traveling public can expect more on-time flights and fewer cancellations in the fall, at least until the holidays," said Ken Quinn, partner at law firm Clyde & Co US LLP.
U.S. flight cancellations over the yearshttps://tmsnrt.rs/3JXoHZx
(Reporting by Nathan Gomes and Abhijith Ganapavaram in Bengaluru; Editing by Devika Syamnath)
((Nathan.Gomes@thomsonreuters.com;Abhijith.G@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O canceled 19,717 flights, the most among big U.S. carriers, followed by Southwest Airlines Co LUV.N at 17,381 flights. By Nathan Gomes Aug 12 (Reuters) - Flight cancellations and delays by U.S. airlines in the first seven months of the year have surpassed the comparable 2019 period, data showed, as staff shortages and adverse weather pummel operations. Carriers have raised fares to cater to a surge in domestic travel that is fast approaching pre-pandemic levels, but have been unable to fly all the passengers they book, drawing ire from lawmakers.
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American Airlines Group Inc AAL.O canceled 19,717 flights, the most among big U.S. carriers, followed by Southwest Airlines Co LUV.N at 17,381 flights. By Nathan Gomes Aug 12 (Reuters) - Flight cancellations and delays by U.S. airlines in the first seven months of the year have surpassed the comparable 2019 period, data showed, as staff shortages and adverse weather pummel operations. Last month, two U.S. senators urged the U.S. Transportation Department to fine airlines that delay or cancel flights because of staffing or operational issues, while Transportation Secretary Pete Buttigieg has called for a refresh of rules that govern airlines.
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American Airlines Group Inc AAL.O canceled 19,717 flights, the most among big U.S. carriers, followed by Southwest Airlines Co LUV.N at 17,381 flights. By Nathan Gomes Aug 12 (Reuters) - Flight cancellations and delays by U.S. airlines in the first seven months of the year have surpassed the comparable 2019 period, data showed, as staff shortages and adverse weather pummel operations. Last month, two U.S. senators urged the U.S. Transportation Department to fine airlines that delay or cancel flights because of staffing or operational issues, while Transportation Secretary Pete Buttigieg has called for a refresh of rules that govern airlines.
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American Airlines Group Inc AAL.O canceled 19,717 flights, the most among big U.S. carriers, followed by Southwest Airlines Co LUV.N at 17,381 flights. U.S.-based carriers scrapped 128,934 flights from January to July, up about 11% from pre-pandemic levels, according to data from flight-tracking website FlightAware. Flight delays from U.S airlines rose to 993,841 this year from 922,400 in the first seven months of 2019, according to FlightAware.
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3320.0
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2022-08-11 00:00:00 UTC
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American Airlines says operations hit by unexpected storms
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AAL
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https://www.nasdaq.com/articles/american-airlines-says-operations-hit-by-unexpected-storms
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Aug 11 (Reuters) - American Airlines Group Inc AAL.O said "unexpected and heavy" thunderstorms had hit operations at its largest hub at the Dallas Fort Worth International Airport, leading to the cancellation of many flights on Wednesday and Thursday, according to an internal memo seen by Reuters.
The airline has canceled nearly 300 flights as of 9 a.m. ET on Thursday, according to flight tracking website FlightAware.com. (https://bit.ly/3SIKLLj)
(Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath)
((Nathan.Gomes@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 11 (Reuters) - American Airlines Group Inc AAL.O said "unexpected and heavy" thunderstorms had hit operations at its largest hub at the Dallas Fort Worth International Airport, leading to the cancellation of many flights on Wednesday and Thursday, according to an internal memo seen by Reuters. ET on Thursday, according to flight tracking website FlightAware.com. (https://bit.ly/3SIKLLj) (Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath) ((Nathan.Gomes@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 11 (Reuters) - American Airlines Group Inc AAL.O said "unexpected and heavy" thunderstorms had hit operations at its largest hub at the Dallas Fort Worth International Airport, leading to the cancellation of many flights on Wednesday and Thursday, according to an internal memo seen by Reuters. The airline has canceled nearly 300 flights as of 9 a.m. (https://bit.ly/3SIKLLj) (Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath) ((Nathan.Gomes@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 11 (Reuters) - American Airlines Group Inc AAL.O said "unexpected and heavy" thunderstorms had hit operations at its largest hub at the Dallas Fort Worth International Airport, leading to the cancellation of many flights on Wednesday and Thursday, according to an internal memo seen by Reuters. The airline has canceled nearly 300 flights as of 9 a.m. (https://bit.ly/3SIKLLj) (Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath) ((Nathan.Gomes@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 11 (Reuters) - American Airlines Group Inc AAL.O said "unexpected and heavy" thunderstorms had hit operations at its largest hub at the Dallas Fort Worth International Airport, leading to the cancellation of many flights on Wednesday and Thursday, according to an internal memo seen by Reuters. The airline has canceled nearly 300 flights as of 9 a.m. ET on Thursday, according to flight tracking website FlightAware.com.
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3321.0
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2022-08-11 00:00:00 UTC
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Analysts See 14% Gains Ahead For The Holdings of IVV
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AAL
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https://www.nasdaq.com/articles/analysts-see-14-gains-ahead-for-the-holdings-of-ivv
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Core S&P 500 ETF (Symbol: IVV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $480.97 per unit.
With IVV trading at a recent price near $422.10 per unit, that means that analysts see 13.95% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IVV's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), First Republic Bank (Symbol: FRC), and Smith (A O) Corp (Symbol: AOS). Although AAL has traded at a recent price of $15.07/share, the average analyst target is 19.44% higher at $18.00/share. Similarly, FRC has 15.42% upside from the recent share price of $162.83 if the average analyst target price of $187.93/share is reached, and analysts on average are expecting AOS to reach a target price of $70.33/share, which is 13.99% above the recent price of $61.70. Below is a twelve month price history chart comparing the stock performance of AAL, FRC, and AOS:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares Core S&P 500 ETF IVV $422.10 $480.97 13.95%
American Airlines Group Inc AAL $15.07 $18.00 19.44%
First Republic Bank FRC $162.83 $187.93 15.42%
Smith (A O) Corp AOS $61.70 $70.33 13.99%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although AAL has traded at a recent price of $15.07/share, the average analyst target is 19.44% higher at $18.00/share. iShares Core S&P 500 ETF IVV $422.10 $480.97 13.95% American Airlines Group Inc AAL $15.07 $18.00 19.44% First Republic Bank FRC $162.83 $187.93 15.42% Smith (A O) Corp AOS $61.70 $70.33 13.99% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IVV's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), First Republic Bank (Symbol: FRC), and Smith (A O) Corp (Symbol: AOS).
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Three of IVV's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), First Republic Bank (Symbol: FRC), and Smith (A O) Corp (Symbol: AOS). iShares Core S&P 500 ETF IVV $422.10 $480.97 13.95% American Airlines Group Inc AAL $15.07 $18.00 19.44% First Republic Bank FRC $162.83 $187.93 15.42% Smith (A O) Corp AOS $61.70 $70.33 13.99% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although AAL has traded at a recent price of $15.07/share, the average analyst target is 19.44% higher at $18.00/share.
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Three of IVV's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), First Republic Bank (Symbol: FRC), and Smith (A O) Corp (Symbol: AOS). Although AAL has traded at a recent price of $15.07/share, the average analyst target is 19.44% higher at $18.00/share. Below is a twelve month price history chart comparing the stock performance of AAL, FRC, and AOS: Below is a summary table of the current analyst target prices discussed above:
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iShares Core S&P 500 ETF IVV $422.10 $480.97 13.95% American Airlines Group Inc AAL $15.07 $18.00 19.44% First Republic Bank FRC $162.83 $187.93 15.42% Smith (A O) Corp AOS $61.70 $70.33 13.99% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IVV's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), First Republic Bank (Symbol: FRC), and Smith (A O) Corp (Symbol: AOS). Although AAL has traded at a recent price of $15.07/share, the average analyst target is 19.44% higher at $18.00/share.
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3322.0
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2022-08-11 00:00:00 UTC
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Miner Antofagasta's profit slumps on costs, drought
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AAL
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https://www.nasdaq.com/articles/miner-antofagastas-profit-slumps-on-costs-drought
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nan
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nan
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By Clara Denina
LONDON, Aug 11 (Reuters) - Antofagasta ANTO.L posted a fall in half-year profit on Thursday, as higher costs, lower grades and a persistent drought in Chile hit the miner's copper production.
It said it would slash its interim dividend to 9.2 cents per share from a record 23.6 cents last year, joining fellow miners including Rio Tinto RIO.L, RIO.AX and Anglo American AAL.L in lowering payouts after last year's bonanza.
Mining firms have also warned about future returns on fears that slower growth or recession in key markets could dent commodity demand in the next few months.
London-listed Antofagasta, majority owned by Chile's wealthy Luksic family, saw its earnings before interest, tax, depreciation, and amortisation (EBITDA) for the first six months fall to $1.24 billion, compared with $2.4 billion last year.
Antofagasta's profit surged to its highest ever in 2021 when copper prices reached record levels, allowing it to make a record shareholder payout of $1.4 billion for the year.
It said it remains on track to produce its revised guidance of 640,000-660,000 tonnes of copper for the full year.
"We expect the remainder of the year to look very different from the first half - as production improves quarter-on-quarter," Chief Executive Iván Arriagada said.
(Reporting by Clara Denina and Muhammed Husain; Editing by Shailesh Kuber and Alexander Smith)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It said it would slash its interim dividend to 9.2 cents per share from a record 23.6 cents last year, joining fellow miners including Rio Tinto RIO.L, RIO.AX and Anglo American AAL.L in lowering payouts after last year's bonanza. By Clara Denina LONDON, Aug 11 (Reuters) - Antofagasta ANTO.L posted a fall in half-year profit on Thursday, as higher costs, lower grades and a persistent drought in Chile hit the miner's copper production. Mining firms have also warned about future returns on fears that slower growth or recession in key markets could dent commodity demand in the next few months.
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It said it would slash its interim dividend to 9.2 cents per share from a record 23.6 cents last year, joining fellow miners including Rio Tinto RIO.L, RIO.AX and Anglo American AAL.L in lowering payouts after last year's bonanza. By Clara Denina LONDON, Aug 11 (Reuters) - Antofagasta ANTO.L posted a fall in half-year profit on Thursday, as higher costs, lower grades and a persistent drought in Chile hit the miner's copper production. London-listed Antofagasta, majority owned by Chile's wealthy Luksic family, saw its earnings before interest, tax, depreciation, and amortisation (EBITDA) for the first six months fall to $1.24 billion, compared with $2.4 billion last year.
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It said it would slash its interim dividend to 9.2 cents per share from a record 23.6 cents last year, joining fellow miners including Rio Tinto RIO.L, RIO.AX and Anglo American AAL.L in lowering payouts after last year's bonanza. London-listed Antofagasta, majority owned by Chile's wealthy Luksic family, saw its earnings before interest, tax, depreciation, and amortisation (EBITDA) for the first six months fall to $1.24 billion, compared with $2.4 billion last year. Antofagasta's profit surged to its highest ever in 2021 when copper prices reached record levels, allowing it to make a record shareholder payout of $1.4 billion for the year.
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It said it would slash its interim dividend to 9.2 cents per share from a record 23.6 cents last year, joining fellow miners including Rio Tinto RIO.L, RIO.AX and Anglo American AAL.L in lowering payouts after last year's bonanza. By Clara Denina LONDON, Aug 11 (Reuters) - Antofagasta ANTO.L posted a fall in half-year profit on Thursday, as higher costs, lower grades and a persistent drought in Chile hit the miner's copper production. Mining firms have also warned about future returns on fears that slower growth or recession in key markets could dent commodity demand in the next few months.
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3323.0
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2022-08-11 00:00:00 UTC
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September 30th Options Now Available For American Airlines Group (AAL)
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AAL
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https://www.nasdaq.com/articles/september-30th-options-now-available-for-american-airlines-group-aal
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 30th contracts and identified one put and one call contract of particular interest.
The put contract at the $13.50 strike price has a current bid of 48 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $13.50, but will also collect the premium, putting the cost basis of the shares at $13.02 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $15.20/share today.
Because the $13.50 strike represents an approximate 11% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.56% return on the cash commitment, or 25.96% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $13.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $15.50 strike price has a current bid of 99 cents. If an investor was to purchase shares of AAL stock at the current price level of $15.20/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $15.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.49% if the stock gets called away at the September 30th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $15.50 strike highlighted in red:
Considering the fact that the $15.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 6.51% boost of extra return to the investor, or 47.55% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $15.20) to be 56%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $15.50 strike highlighted in red: Considering the fact that the $15.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 30th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $15.50 strike highlighted in red: Considering the fact that the $15.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 30th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $15.50 strike highlighted in red: Considering the fact that the $15.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 30th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $15.50 strike highlighted in red: Considering the fact that the $15.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 30th contracts and identified one put and one call contract of particular interest.
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3324.0
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2022-08-11 00:00:00 UTC
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Airlines cancel about 600 flights in U.S. as thunderstorms hit operations
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AAL
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https://www.nasdaq.com/articles/airlines-cancel-about-600-flights-in-u.s.-as-thunderstorms-hit-operations
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nan
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nan
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Recasts, adds detail, quote from memo
Aug 11 (Reuters) - Airlines canceled about 600 flights in the United States on Thursday morning after calling off hundreds of flights the previous day, as thunderstorms in Dallas hit operations at one of the busiest airports in the country.
A total of 1,213 flights were canceled across the country on Wednesday, according to flight-tracking website Flightaware.com.
American Airlines Group Inc AAL.O said "unexpected and heavy" thunderstorms had hit operations at its largest hub at the Dallas Fort Worth International Airport, leading to the cancellation of many flights on Wednesday and Thursday, according to an internal memo seen by Reuters.
The airline canceled 368 flights on Wednesday and had called off nearly 300 more as of Thursday morning, Flightaware.com data showed.
"This was the worst storm we've seen at DFW this summer," American Airlines Chief Operating Officer David Seymour said.
In June, adverse weather conditions and labor shortages had forced several U.S. carriers to cut thousands of flights.
(Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath and Shinjini Ganguli)
((Nathan.Gomes@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O said "unexpected and heavy" thunderstorms had hit operations at its largest hub at the Dallas Fort Worth International Airport, leading to the cancellation of many flights on Wednesday and Thursday, according to an internal memo seen by Reuters. Recasts, adds detail, quote from memo Aug 11 (Reuters) - Airlines canceled about 600 flights in the United States on Thursday morning after calling off hundreds of flights the previous day, as thunderstorms in Dallas hit operations at one of the busiest airports in the country. "This was the worst storm we've seen at DFW this summer," American Airlines Chief Operating Officer David Seymour said.
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American Airlines Group Inc AAL.O said "unexpected and heavy" thunderstorms had hit operations at its largest hub at the Dallas Fort Worth International Airport, leading to the cancellation of many flights on Wednesday and Thursday, according to an internal memo seen by Reuters. Recasts, adds detail, quote from memo Aug 11 (Reuters) - Airlines canceled about 600 flights in the United States on Thursday morning after calling off hundreds of flights the previous day, as thunderstorms in Dallas hit operations at one of the busiest airports in the country. The airline canceled 368 flights on Wednesday and had called off nearly 300 more as of Thursday morning, Flightaware.com data showed.
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American Airlines Group Inc AAL.O said "unexpected and heavy" thunderstorms had hit operations at its largest hub at the Dallas Fort Worth International Airport, leading to the cancellation of many flights on Wednesday and Thursday, according to an internal memo seen by Reuters. Recasts, adds detail, quote from memo Aug 11 (Reuters) - Airlines canceled about 600 flights in the United States on Thursday morning after calling off hundreds of flights the previous day, as thunderstorms in Dallas hit operations at one of the busiest airports in the country. (Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath and Shinjini Ganguli) ((Nathan.Gomes@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O said "unexpected and heavy" thunderstorms had hit operations at its largest hub at the Dallas Fort Worth International Airport, leading to the cancellation of many flights on Wednesday and Thursday, according to an internal memo seen by Reuters. Recasts, adds detail, quote from memo Aug 11 (Reuters) - Airlines canceled about 600 flights in the United States on Thursday morning after calling off hundreds of flights the previous day, as thunderstorms in Dallas hit operations at one of the busiest airports in the country. A total of 1,213 flights were canceled across the country on Wednesday, according to flight-tracking website Flightaware.com.
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3325.0
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2022-08-10 00:00:00 UTC
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Boeing makes first 787 Dreamliner delivery since May 2021
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AAL
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https://www.nasdaq.com/articles/boeing-makes-first-787-dreamliner-delivery-since-may-2021-0
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nan
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nan
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By David Shepardson
WASHINGTON, Aug 10 (Reuters) - Boeing BA.N on Wednesday delivered its first 787 Dreamliner since May 2021, a milestone for the planemaker that has faced production problems with its widebody jet.
American Airlines AAL.O said it had taken delivery of its first Boeing 787 Dreamliner since April 2021, sending shares up 4.5%. American Airlines Chief Executive Robert Isom in an Instagram post reiterated the airline expects to receive nine 787s in 2022.
Boeing confirmed Wednesday it resumed deliveries following "thorough engineering analysis, verification and rework activities to ensure all airplanes conform to Boeing’s exacting specifications and regulatory requirements." Boeing shares were up 3.3% in trading.
Reuters first reported on Monday that the Federal Aviation Administration (FAA) had cleared the way for the delivery of the first plane. Last month, the FAA approved Boeing's inspection and retrofit plan needed to meet certification standards.
In the aftermath of two fatal 737 MAX crashes in 2018 and 2019, the FAA pledged to more closely scrutinize Boeing and delegate fewer responsibilities to Boeing for aircraft certification. In September 2020, the FAA said it was investigating manufacturing flaws in some 787 jetliners.
Boeing has about 120 787s awaiting delivery. The FAA said it "will inspect each aircraft before an airworthiness certificate is issued and cleared for delivery." Typically, the FAA delegates airplane ticketing authority to the manufacturer, but in some instances, like the 737 MAX, it has retained responsibility for approving each new airplane.
Boeing Commercial Airplanes Chief Executive Stan Deal told employees in an email seen by Reuters the planemaker will "continue to take the time needed to ensure each one meets our highest quality standards."
American Airlines has 42 additional 787s on order.
In January, Boeing disclosed a $3.5 billion charge due to 787 delivery delays and customer concessions, and another $1 billion in abnormal production costs stemming from production flaws and related repairs and inspections.
U.S. okays first Boeing 787 Dreamliner delivery since '21 -sources
U.S. approves Boeing inspection, rework plan to resume 787 deliveries
(Reporting by David Shepardson; Editing by Mark Porter and Lisa Shumaker)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O said it had taken delivery of its first Boeing 787 Dreamliner since April 2021, sending shares up 4.5%. By David Shepardson WASHINGTON, Aug 10 (Reuters) - Boeing BA.N on Wednesday delivered its first 787 Dreamliner since May 2021, a milestone for the planemaker that has faced production problems with its widebody jet. Boeing Commercial Airplanes Chief Executive Stan Deal told employees in an email seen by Reuters the planemaker will "continue to take the time needed to ensure each one meets our highest quality standards."
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American Airlines AAL.O said it had taken delivery of its first Boeing 787 Dreamliner since April 2021, sending shares up 4.5%. American Airlines Chief Executive Robert Isom in an Instagram post reiterated the airline expects to receive nine 787s in 2022. Last month, the FAA approved Boeing's inspection and retrofit plan needed to meet certification standards.
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American Airlines AAL.O said it had taken delivery of its first Boeing 787 Dreamliner since April 2021, sending shares up 4.5%. Boeing confirmed Wednesday it resumed deliveries following "thorough engineering analysis, verification and rework activities to ensure all airplanes conform to Boeing’s exacting specifications and regulatory requirements." In the aftermath of two fatal 737 MAX crashes in 2018 and 2019, the FAA pledged to more closely scrutinize Boeing and delegate fewer responsibilities to Boeing for aircraft certification.
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American Airlines AAL.O said it had taken delivery of its first Boeing 787 Dreamliner since April 2021, sending shares up 4.5%. American Airlines Chief Executive Robert Isom in an Instagram post reiterated the airline expects to receive nine 787s in 2022. The FAA said it "will inspect each aircraft before an airworthiness certificate is issued and cleared for delivery."
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3326.0
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2022-08-10 00:00:00 UTC
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Boeing makes first 787 Dreamliner delivery since May 2021
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AAL
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https://www.nasdaq.com/articles/boeing-makes-first-787-dreamliner-delivery-since-may-2021
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nan
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nan
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Aug 10 (Reuters) - American Airlines AAL.O on Wednesday said it had taken delivery of its first Boeing BA.N 787 Dreamliner since April 2021, a milestone for the planemaker.
American Airlines Chief Executive Robert Isom confirmed the delivery in an Instagram post, saying, "This is the first of nine 787s we expect to receive this year."
Reuters first reported on Monday that the Federal Aviation Administration (FAA) had cleared the way for the delivery of the first plane after Boeing halted deliveries in May 2021 after the FAA raised concerns about its proposed inspection method. In September 2020, the FAA said it was investigating manufacturing flaws in some 787 jetliners..
(Reporting by David Shepardson; Editing by Mark Porter)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Aug 10 (Reuters) - American Airlines AAL.O on Wednesday said it had taken delivery of its first Boeing BA.N 787 Dreamliner since April 2021, a milestone for the planemaker. American Airlines Chief Executive Robert Isom confirmed the delivery in an Instagram post, saying, "This is the first of nine 787s we expect to receive this year." In September 2020, the FAA said it was investigating manufacturing flaws in some 787 jetliners.. (Reporting by David Shepardson; Editing by Mark Porter) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 10 (Reuters) - American Airlines AAL.O on Wednesday said it had taken delivery of its first Boeing BA.N 787 Dreamliner since April 2021, a milestone for the planemaker. American Airlines Chief Executive Robert Isom confirmed the delivery in an Instagram post, saying, "This is the first of nine 787s we expect to receive this year." Reuters first reported on Monday that the Federal Aviation Administration (FAA) had cleared the way for the delivery of the first plane after Boeing halted deliveries in May 2021 after the FAA raised concerns about its proposed inspection method.
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Aug 10 (Reuters) - American Airlines AAL.O on Wednesday said it had taken delivery of its first Boeing BA.N 787 Dreamliner since April 2021, a milestone for the planemaker. Reuters first reported on Monday that the Federal Aviation Administration (FAA) had cleared the way for the delivery of the first plane after Boeing halted deliveries in May 2021 after the FAA raised concerns about its proposed inspection method. In September 2020, the FAA said it was investigating manufacturing flaws in some 787 jetliners.. (Reporting by David Shepardson; Editing by Mark Porter) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 10 (Reuters) - American Airlines AAL.O on Wednesday said it had taken delivery of its first Boeing BA.N 787 Dreamliner since April 2021, a milestone for the planemaker. American Airlines Chief Executive Robert Isom confirmed the delivery in an Instagram post, saying, "This is the first of nine 787s we expect to receive this year." Reuters first reported on Monday that the Federal Aviation Administration (FAA) had cleared the way for the delivery of the first plane after Boeing halted deliveries in May 2021 after the FAA raised concerns about its proposed inspection method.
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3327.0
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2022-08-09 00:00:00 UTC
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Stock Market Today: S&P, Nasdaq Extend Losing Streaks on Micron Demand Woes
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-sp-nasdaq-extend-losing-streaks-on-micron-demand-woes
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nan
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nan
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The latest batch of corporate earnings updates sparked a selloff in stocks on Tuesday, with the tech-heavy Nasdaq leading the path lower.
Travel stocks were hit particularly hard after Norwegian Cruise Lines (NCLH) reported its second-quarter results. For the three-month period, the cruise operator brought in revenue of $1.2 billion and recorded a per-share loss of $1.14, missing analysts' consensus estimates. And in the company'searnings call CEO Frank Del Rio said that bookings in the second half remain below the "extraordinarily strong" levels they were at in 2019. This sparked a 10.6% drop in NCLH stock to a point not much above its pandemic lows. Other travel-related names like Royal Caribbean Cruises (RCL, -5.6%) and American Airlines (AAL, -2.7%) fell as well.
SEE MORE 10 Metaverse Stocks for the Future of Technology
Meanwhile, Micron Technology (MU, -3.7%) followed in the footsteps of fellow chipmaker Nvidia (NVDA, -4.0%), whose revenue warning on Monday put pressure on tech stocks. This morning, MU said it anticipates challenging market conditions to last through its next fiscal year, sparked by lower demand for its memory chips.
"[The] memory industry, including Micron, is in the midst of a meaningful inventory correction by customers," says Susquehanna Financial Group analyst Mehdi Hosseini – who adds that the issue will likely not be resolved until at least mid-2023. Other semiconductor stocks closed lower on the news, including Advanced Micro Devices (AMD, -4.5%) and Applied Materials (AMAT, -7.6%).
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Against this backdrop, the tech-heavy Nasdaq Composite slid 1.2% to 12,493 – marking its third straight loss – while the S&P 500 Index shed 0.4% to 4,122, its fourth consecutive decline. The Dow Jones Industrial Average gave back 0.2% to 32,774.
YCharts
Other news in the stock market today:
The small-cap Russell 2000 shed 1.5% to 1,912.
U.S. crude futures slipped 0.3% to $90.50 per barrel.
Gold futures gained 0.4% to finish at $1,812.30 an ounce.
Bitcoin fell 3.6% to $23,064.60. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
Novavax (NVAX) plunged 29.6% after the vaccine maker reported a per-share loss of $6.53 in its second quarter on revenue of $185.9 million. Analysts, on average, were expecting earnings of $5.54 per share on $1.0 billion in revenue. The company also slashed its full-year revenue forecast to a range of $2 billion to $3 billion (down from previous guidance for revenue of $4 billion to $5 billion), "to account for several evolving market dynamics," NVAX executives said.
Signet Jewelers (SIG) plunged 11.7% after the jewelry retailer cut its second-quarter and full-year financial forecasts, citing a slowdown in consumer spending in July. SIG also said it is acquiring online jewelry retailer Blue Nile for $360 million in cash.
America's Most Expensive Cities
Tomorrow we'll get the latest update on inflation, with the consumer price index (CPI) slated for release at 8:30 a.m. Eastern time. "Investors are laser-focused on Wednesday's CPI data, as they hunt for signs of U.S. inflation levels, whether those levels have peaked and, ultimately, how the latest figures will impact the Fed's immediate and medium-term rate policy decisions," says Greg Bassuk, CEO at asset management firm AXS Investments.
SEE MORE 12 Cheapest Small Towns in America
June's CPI report showed inflation had not yet peaked, with significant price increases seen in food (+10.4% year-over year), energy (+41.6% YoY) and shelter (+ 5.6% YoY). And while it's possible that July's data could show moderation in cost increases – particularly given the recent drop in oil – higher prices remain a hot topic.
With that in mind, we decided to take a closer look at the most expensive U.S. cities. Whether it be gas prices, housing costs or groceries, this list is made up of the priciest American cities to call home.
SEE MORE Biden's Inflation Reduction Act: Investing Winners and Losers
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other travel-related names like Royal Caribbean Cruises (RCL, -5.6%) and American Airlines (AAL, -2.7%) fell as well. "[The] memory industry, including Micron, is in the midst of a meaningful inventory correction by customers," says Susquehanna Financial Group analyst Mehdi Hosseini – who adds that the issue will likely not be resolved until at least mid-2023. Signet Jewelers (SIG) plunged 11.7% after the jewelry retailer cut its second-quarter and full-year financial forecasts, citing a slowdown in consumer spending in July.
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Other travel-related names like Royal Caribbean Cruises (RCL, -5.6%) and American Airlines (AAL, -2.7%) fell as well. Signet Jewelers (SIG) plunged 11.7% after the jewelry retailer cut its second-quarter and full-year financial forecasts, citing a slowdown in consumer spending in July. America's Most Expensive Cities Tomorrow we'll get the latest update on inflation, with the consumer price index (CPI) slated for release at 8:30 a.m. Eastern time.
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Other travel-related names like Royal Caribbean Cruises (RCL, -5.6%) and American Airlines (AAL, -2.7%) fell as well. SEE MORE 10 Metaverse Stocks for the Future of Technology Meanwhile, Micron Technology (MU, -3.7%) followed in the footsteps of fellow chipmaker Nvidia (NVDA, -4.0%), whose revenue warning on Monday put pressure on tech stocks. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) Novavax (NVAX) plunged 29.6% after the vaccine maker reported a per-share loss of $6.53 in its second quarter on revenue of $185.9 million.
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Other travel-related names like Royal Caribbean Cruises (RCL, -5.6%) and American Airlines (AAL, -2.7%) fell as well. The latest batch of corporate earnings updates sparked a selloff in stocks on Tuesday, with the tech-heavy Nasdaq leading the path lower. Analysts, on average, were expecting earnings of $5.54 per share on $1.0 billion in revenue.
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3328.0
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2022-08-09 00:00:00 UTC
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LATAM Airlines posts second-quarter loss as high fuel costs felt
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https://www.nasdaq.com/articles/latam-airlines-posts-second-quarter-loss-as-high-fuel-costs-felt
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Adds context
SANTIAGO, Aug 9 (Reuters) - LATAM Airlines LTM.SN, Latin America's largest regional airline, reported a second-quarter net loss of $523.2 million on Tuesday, the company said in a statement, partially hurt by the high increase in fuel costs.
The Chile-based airline's quarterly loss compares to a loss of $769.6 million during the same three-month period last year.
LATAM's second-quarter revenue rose 150.5% to $2.226 billion from the year-ago period.
The airline, born in 2012 from the merger of Chile's LAN with Brazilian rival TAM, has operating units in Chile,
Brazil, Colombia and Peru.
Last month, LATAM shareholders approved a reorganization plan as part of the company's bankruptcy proceeding in the United States in the wake of pandemic-related restrictions.
(Reporting by Fabian Cambero)
((Carolina.Pulice@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds context SANTIAGO, Aug 9 (Reuters) - LATAM Airlines LTM.SN, Latin America's largest regional airline, reported a second-quarter net loss of $523.2 million on Tuesday, the company said in a statement, partially hurt by the high increase in fuel costs. LATAM's second-quarter revenue rose 150.5% to $2.226 billion from the year-ago period. Last month, LATAM shareholders approved a reorganization plan as part of the company's bankruptcy proceeding in the United States in the wake of pandemic-related restrictions.
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Adds context SANTIAGO, Aug 9 (Reuters) - LATAM Airlines LTM.SN, Latin America's largest regional airline, reported a second-quarter net loss of $523.2 million on Tuesday, the company said in a statement, partially hurt by the high increase in fuel costs. The Chile-based airline's quarterly loss compares to a loss of $769.6 million during the same three-month period last year. LATAM's second-quarter revenue rose 150.5% to $2.226 billion from the year-ago period.
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Adds context SANTIAGO, Aug 9 (Reuters) - LATAM Airlines LTM.SN, Latin America's largest regional airline, reported a second-quarter net loss of $523.2 million on Tuesday, the company said in a statement, partially hurt by the high increase in fuel costs. The Chile-based airline's quarterly loss compares to a loss of $769.6 million during the same three-month period last year. The airline, born in 2012 from the merger of Chile's LAN with Brazilian rival TAM, has operating units in Chile, Brazil, Colombia and Peru.
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Adds context SANTIAGO, Aug 9 (Reuters) - LATAM Airlines LTM.SN, Latin America's largest regional airline, reported a second-quarter net loss of $523.2 million on Tuesday, the company said in a statement, partially hurt by the high increase in fuel costs. The Chile-based airline's quarterly loss compares to a loss of $769.6 million during the same three-month period last year. LATAM's second-quarter revenue rose 150.5% to $2.226 billion from the year-ago period.
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3329.0
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2022-08-09 00:00:00 UTC
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ANALYSIS-BHP needs to pay more for EV, clean energy metals as it returns to dealmaking
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AAL
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https://www.nasdaq.com/articles/analysis-bhp-needs-to-pay-more-for-ev-clean-energy-metals-as-it-returns-to-dealmaking-0
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nan
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By Praveen Menon and Clara Denina
SYDNEY/LONDON, Aug 9 (Reuters) - BHP must shell out more if it wants to snap up assets like those of OZ Minerals - a play on the future of electrification and decarbonisation, analysts and bankers said, after the miner's unsolicited bid for the nickel and copper company was rebuffed.
BHP Group's BHP.AX, BHPB.L A$8.34 billion ($5.8 billion), or A$25 per share, bid for OZ Minerals OZL.AX does not fully value its assets in light of the global green energy push, according to some analysts.
This is the second rejection that BHP has faced in less than a year, after it backed off from an offer for Canada's nickel miner Noront Resources Ltd NOT.V, making its return to M&A bumpier than it would have wanted.
While BHP has not said if it would sweeten its OZ bid, analysts and bankers think if it did it faces no guarantee of winning over OZ's board as other large miners and metals firms are sitting in the wings flush with cash and confident in the long-term outlook for metals like copper - used in wind turbines, solar power systems and electric cables.
"The underlying belief in this longer-term outlook for copper will make it very hard to transact without paying a substantial premium," said Tyler Broda, an analyst at RBC Capital Markets.
"This appears to remain the case even with falling near-term commodity prices and a very uncertain macro environment impacting both the West and China," he added.
OZ turned away BHP's offer, which was 32% more than the closing price of its shares on Friday last week, saying it was "opportunistic" as copper prices had dropped off peaks.
Jefferies estimates OZ could fetch as much as A$36 per share if a bidder values copper at $4 per pound and offers a 30% premium. The metal is currently around $3.50 CMCU3, while OZ shares are at A$25.66.
Prices of copper and other metals have retreated this year on weak demand from top consumer China, where a zero-COVID policy has curtailed activity, and a global economic slowdown amid rising interest rates.
Long-term prospects, however, stay healthy for commodities like nickel and lithium that are used in batteries for electric vehicles (EVs), uranium that is used to produce nuclear energy, and copper as the world gears up to decarbonise.
'MUCH SWEETER'
The OZ deal is the second time a takeover bid by BHP has failed since it simplified its structure over the past year, unifying its London and Sydney public holdings in a single Australia listing, to become nimble for potential investments in "future facing" commodities.
Last year, BHP sought to buy Noront Resources but backed out after a months-long bidding war as it did not see "adequate long-term value".
"BHP has the most firepower in the sector and should use it," RBC Capital's Broda said.
BHP has more than $15 billion in cash and cash equivalent holdings, recent filings show.
The world's largest miner with $136 billion in market capitalisation makes the bulk of its money from digging iron ore, a raw material used in steelmaking, but it is also a top producer of copper and is looking to plunge into nickel.
The miner said last week it would spend more on nickel exploration over the next two years. An OZ deal would have given it access to projects including West Musgrave in Western Australia, which has nickel-copper deposits.
BHP may make another bid for OZ, a source with direct knowledge of the matter said on condition of anonymity given the details were not public yet. The source added that OZ had received approaches from others but did not disclose names.
Mathew Hodge, director of equity research at Morningstar, named "Glencore, Anglo American, Teck and other large to mid-cap companies" as those that could be potentially interested in Oz.
"They all have rivers of money flowing through them so what are they going to do with it?"
Glencore GLEN.UL declined to comment. Anglo American AAL.L and Teck Resources TECKb.TO could not immediately be reached for comment.
Most analysts agree a bid for OZ would have to be sweeter.
"It's going to have to be much sweeter," Peter O'Connor, mining and metals analyst at Shaw and Partners, said.
"We think the price per share will have to be in the range of lower to mid thirties if BHP wants to get this done."
O'Connor, however, said that BHP was likely to maintain discipline and not overpay. The miner has in the past upset investors with a costly push into U.S. shale that led to billions of dollars in writedowns.
Oz Minerals share price vs U.S. copper futures priceshttps://tmsnrt.rs/3Q3EU1z
Major miner cash & cash equivalent totalshttps://tmsnrt.rs/3BNukHK
BHP is the world’s largest miner by market capitalisationhttps://tmsnrt.rs/3SCZVC0
(Reporting by Clara Denina and Praveen Menon; additional reporting by Scott Murdoch; Editing by Himani Sarkar)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Anglo American AAL.L and Teck Resources TECKb.TO could not immediately be reached for comment. Prices of copper and other metals have retreated this year on weak demand from top consumer China, where a zero-COVID policy has curtailed activity, and a global economic slowdown amid rising interest rates. The OZ deal is the second time a takeover bid by BHP has failed since it simplified its structure over the past year, unifying its London and Sydney public holdings in a single Australia listing, to become nimble for potential investments in "future facing" commodities.
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Anglo American AAL.L and Teck Resources TECKb.TO could not immediately be reached for comment. By Praveen Menon and Clara Denina SYDNEY/LONDON, Aug 9 (Reuters) - BHP must shell out more if it wants to snap up assets like those of OZ Minerals - a play on the future of electrification and decarbonisation, analysts and bankers said, after the miner's unsolicited bid for the nickel and copper company was rebuffed. Mathew Hodge, director of equity research at Morningstar, named "Glencore, Anglo American, Teck and other large to mid-cap companies" as those that could be potentially interested in Oz.
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Anglo American AAL.L and Teck Resources TECKb.TO could not immediately be reached for comment. By Praveen Menon and Clara Denina SYDNEY/LONDON, Aug 9 (Reuters) - BHP must shell out more if it wants to snap up assets like those of OZ Minerals - a play on the future of electrification and decarbonisation, analysts and bankers said, after the miner's unsolicited bid for the nickel and copper company was rebuffed. While BHP has not said if it would sweeten its OZ bid, analysts and bankers think if it did it faces no guarantee of winning over OZ's board as other large miners and metals firms are sitting in the wings flush with cash and confident in the long-term outlook for metals like copper - used in wind turbines, solar power systems and electric cables.
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Anglo American AAL.L and Teck Resources TECKb.TO could not immediately be reached for comment. BHP Group's BHP.AX, BHPB.L A$8.34 billion ($5.8 billion), or A$25 per share, bid for OZ Minerals OZL.AX does not fully value its assets in light of the global green energy push, according to some analysts. The metal is currently around $3.50 CMCU3, while OZ shares are at A$25.66.
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3330.0
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2022-08-09 00:00:00 UTC
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Boeing deliveries slip to five-month low in July
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https://www.nasdaq.com/articles/boeing-deliveries-slip-to-five-month-low-in-july-0
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By Tim Hepher
Aug 9 (Reuters) - Boeing BA.N jetliner deliveries fell to a five-month low of 26 airplanes in July, highlighting pressure on global supply chains as it prepares to resume deliveries of the 787 Dreamliner.
The U.S. planemaker said monthly deliveries included 23 737 MAX jets and three wide-body freighters, bringing MAX deliveries so far this year to 212 jets and total deliveries to 242.
The figures do not include the imminent resumption of 787 Dreamliner deliveries after a year-long suspension over production issues.
Shares of Boeing fell as much as 1.7% before paring losses to trade about flat.
The U.S. government on Monday approved the first 787 delivery since May 2021, people briefed on the matter said.
July's Boeing data does, however, underscore industrial snags testing the aerospace industry after Airbus AIR.PA reported lower July deliveries on Monday.
At roughly half the 51 handovers seen in the previous month, Boeing's July deliveries suffered the sharpest sequential drop since before the 737 MAX was cleared to return to service in December 2020, following a safety grounding.
Deliveries have nonetheless fluctuated significantly this year and June had seen a sharp swing towards the upside.
Chief Financial Officer Brian West anticipated a "light" July when he outlined three worries for the 737 during earnings last week: supply chains, delays in getting planes out of storage and an effective freeze on deliveries to China.
He told analysts that Boeing would not fully make up for lower-than-expected first-half deliveries in the second half and added: "We'll continue to experience monthly variability".
NEW ORDERS
Boeing, meanwhile, saw a surge of new business in July as it officially booked orders announced at the Farnborough Airshow, where it focused on shoring up the 737 MAX 10, as the aircraft faces uncertainty over a certification deadline.
Boeing confirmed orders for a total of 125 MAX from Delta Air Lines and Qatar Airways as well as two 777 freighters for Air Canada. It added fresh orders for two MAX from American Airlines and a 777 freighter from FedEx.
That brings Boeing's gross orders to 130 airplanes for July and 416 for the year so far.
After cancellations of four planes in July, Boeing posted core net orders of 126 planes in July and 312 for the year to date.
Airbus earlier reported comparable year-to-date net orders of 656 airplanes after a major deal with China. .
After further accounting adjustments, Boeing said it had reached adjusted net orders of 362 planes so far this year.
The adjustments reflect a more positive view on some outstanding contracts as travel demand returns.
Boeing restored a net total of 31 planes to its normal operational backlog in July after they had previously been set aside in a category reserved for jets unlikely to be delivered.
Airbus carries out similar quality adjustments to its backlog annually rather than monthly, and logs them in terms of value rather than volume, so a comparison is not available.
Boeing has sold a total of 5,206 jets that are still waiting for delivery in coming years, or 4,370 after including the accounting adjustments for planes seen unlikely to be delivered.
Slowing downhttps://tmsnrt.rs/3SAywR8
Tepid Julyhttps://tmsnrt.rs/3JK6azY
Airbus widens delivery leadhttps://tmsnrt.rs/3PaFd9D
Airbus pulls ahead owing to China ordershttps://tmsnrt.rs/3SP8qtV
Airbus pulls ahead owing to China orders https://tmsnrt.rs/3vPFube
Airbus widens delivery leadhttps://tmsnrt.rs/3A8Cc5h
Tepid Julyhttps://tmsnrt.rs/3A2wwZB
Slowing downhttps://tmsnrt.rs/3p3ikub
(Reporting by Tim Hepher Additional reporting by Abhijith Ganapavaram and David Shepardson Editing by Mark Potter and Krishna Chandra Eluri)
((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters Messaging: tim.hepher.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At roughly half the 51 handovers seen in the previous month, Boeing's July deliveries suffered the sharpest sequential drop since before the 737 MAX was cleared to return to service in December 2020, following a safety grounding. Chief Financial Officer Brian West anticipated a "light" July when he outlined three worries for the 737 during earnings last week: supply chains, delays in getting planes out of storage and an effective freeze on deliveries to China. Boeing, meanwhile, saw a surge of new business in July as it officially booked orders announced at the Farnborough Airshow, where it focused on shoring up the 737 MAX 10, as the aircraft faces uncertainty over a certification deadline.
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The U.S. planemaker said monthly deliveries included 23 737 MAX jets and three wide-body freighters, bringing MAX deliveries so far this year to 212 jets and total deliveries to 242. At roughly half the 51 handovers seen in the previous month, Boeing's July deliveries suffered the sharpest sequential drop since before the 737 MAX was cleared to return to service in December 2020, following a safety grounding. Slowing downhttps://tmsnrt.rs/3SAywR8 Tepid Julyhttps://tmsnrt.rs/3JK6azY Airbus widens delivery leadhttps://tmsnrt.rs/3PaFd9D Airbus pulls ahead owing to China ordershttps://tmsnrt.rs/3SP8qtV Airbus pulls ahead owing to China orders https://tmsnrt.rs/3vPFube Airbus widens delivery leadhttps://tmsnrt.rs/3A8Cc5h Tepid Julyhttps://tmsnrt.rs/3A2wwZB Slowing downhttps://tmsnrt.rs/3p3ikub (Reporting by Tim Hepher Additional reporting by Abhijith Ganapavaram and David Shepardson Editing by Mark Potter and Krishna Chandra Eluri) ((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters Messaging: tim.hepher.thomsonreuters@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Tim Hepher Aug 9 (Reuters) - Boeing BA.N jetliner deliveries fell to a five-month low of 26 airplanes in July, highlighting pressure on global supply chains as it prepares to resume deliveries of the 787 Dreamliner. The U.S. planemaker said monthly deliveries included 23 737 MAX jets and three wide-body freighters, bringing MAX deliveries so far this year to 212 jets and total deliveries to 242. Slowing downhttps://tmsnrt.rs/3SAywR8 Tepid Julyhttps://tmsnrt.rs/3JK6azY Airbus widens delivery leadhttps://tmsnrt.rs/3PaFd9D Airbus pulls ahead owing to China ordershttps://tmsnrt.rs/3SP8qtV Airbus pulls ahead owing to China orders https://tmsnrt.rs/3vPFube Airbus widens delivery leadhttps://tmsnrt.rs/3A8Cc5h Tepid Julyhttps://tmsnrt.rs/3A2wwZB Slowing downhttps://tmsnrt.rs/3p3ikub (Reporting by Tim Hepher Additional reporting by Abhijith Ganapavaram and David Shepardson Editing by Mark Potter and Krishna Chandra Eluri) ((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters Messaging: tim.hepher.thomsonreuters@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The U.S. planemaker said monthly deliveries included 23 737 MAX jets and three wide-body freighters, bringing MAX deliveries so far this year to 212 jets and total deliveries to 242. That brings Boeing's gross orders to 130 airplanes for July and 416 for the year so far. After further accounting adjustments, Boeing said it had reached adjusted net orders of 362 planes so far this year.
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3331.0
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2022-08-09 00:00:00 UTC
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ANALYSIS-BHP needs to pay more for EV, clean energy metals as it returns to dealmaking
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AAL
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https://www.nasdaq.com/articles/analysis-bhp-needs-to-pay-more-for-ev-clean-energy-metals-as-it-returns-to-dealmaking
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nan
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By Praveen Menon and Clara Denina
SYDNEY/LONDON, Aug 9 (Reuters) - BHP must shell out more if it wants to snap up assets like those of OZ Minerals - a play on the future of electrification and decarbonisation, analysts and bankers said, after the miner's unsolicited bid for the nickel and copper company was rebuffed.
BHP Group's BHP.AX, BHPB.L A$8.34 billion ($5.8 billion), or A$25 per share, bid for OZ Minerals OZL.AX does not fully value its assets in light of the global green energy push, according to some analysts.
This is the second rejection that BHP has faced in less than a year, after it backed off from an offer for Canada's nickel miner Noront Resources Ltd NOT.V, making its return to M&A bumpier than it would have wanted.
While BHP has not said if it would sweeten its OZ bid, analysts and bankers think if it did it faces no guarantee of winning over OZ's board as other large miners and metals firms are sitting in the wings flush with cash and confident in the long-term outlook for metals like copper - used in wind turbines, solar power systems and electric cables.
"The underlying belief in this longer-term outlook for copper will make it very hard to transact without paying a substantial premium," said Tyler Broda, an analyst at RBC Capital Markets.
"This appears to remain the case even with falling near-term commodity prices and a very uncertain macro environment impacting both the West and China," he added.
OZ turned away BHP's offer, which was 32% more than the closing price of its shares on Friday last week, saying it was "opportunistic" as copper prices had dropped off peaks.
Jefferies estimates OZ could fetch as much as A$36 per share if a bidder values copper at $4 per pound and offers a 30% premium. The metal is currently around $3.50 CMCU3, while OZ shares are at A$25.66.
Prices of copper and other metals have retreated this year on weak demand from top consumer China, where a zero-COVID policy has curtailed activity, and a global economic slowdown amid rising interest rates.
Long-term prospects, however, stay healthy for commodities like nickel and lithium that are used in batteries for electric vehicles (EVs), uranium that is used to produce nuclear energy, and copper as the world gears up to decarbonise.
'MUCH SWEETER'
The OZ deal is the second time a takeover bid by BHP has failed since it simplified its structure over the past year, unifying its London and Sydney public holdings in a single Australia listing, to become nimble for potential investments in "future facing" commodities.
Last year, BHP sought to buy Noront Resources but backed out after a months-long bidding war as it did not see "adequate long-term value".
"BHP has the most firepower in the sector and should use it," RBC Capital's Broda said.
BHP has more than $15 billion in cash and cash equivalent holdings, recent filings show.
The world's largest miner with $136 billion in market capitalisation makes the bulk of its money from digging iron ore, a raw material used in steelmaking, but it is also a top producer of copper and is looking to plunge into nickel.
The miner said last week it would spend more on nickel exploration over the next two years. An OZ deal would have given it access to projects including West Musgrave in Western Australia, which has nickel-copper deposits.
BHP may make another bid for OZ, a source with direct knowledge of the matter said on condition of anonymity given the details were not public yet. The source added that OZ had received approaches from others but did not disclose names.
Mathew Hodge, director of equity research at Morningstar, named "Glencore, Anglo American, Teck and other large to mid-cap companies" as those that could be potentially interested in Oz.
"They all have rivers of money flowing through them so what are they going to do with it?"
Glencore GLEN.UL declined to comment. Anglo American AAL.L and Teck Resources TECKb.TO could not immediately be reached for comment.
Most analysts agree a bid for OZ would have to be sweeter.
"It's going to have to be much sweeter," Peter O'Connor, mining and metals analyst at Shaw and Partners, said.
"We think the price per share will have to be in the range of lower to mid thirties if BHP wants to get this done."
O'Connor, however, said that BHP was likely to maintain discipline and not overpay. The miner has in the past upset investors with a costly push into U.S. shale that led to billions of dollars in writedowns.
Oz Minerals share price vs U.S. copper futures priceshttps://tmsnrt.rs/3Q3EU1z
Major miner cash & cash equivalent totalshttps://tmsnrt.rs/3BNukHK
BHP is the world’s largest miner by market capitalisationhttps://tmsnrt.rs/3SCZVC0
(Reporting by Clara Denina and Praveen Menon; additional reporting by Scott Murdoch; Editing by Himani Sarkar)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Anglo American AAL.L and Teck Resources TECKb.TO could not immediately be reached for comment. Prices of copper and other metals have retreated this year on weak demand from top consumer China, where a zero-COVID policy has curtailed activity, and a global economic slowdown amid rising interest rates. The OZ deal is the second time a takeover bid by BHP has failed since it simplified its structure over the past year, unifying its London and Sydney public holdings in a single Australia listing, to become nimble for potential investments in "future facing" commodities.
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Anglo American AAL.L and Teck Resources TECKb.TO could not immediately be reached for comment. By Praveen Menon and Clara Denina SYDNEY/LONDON, Aug 9 (Reuters) - BHP must shell out more if it wants to snap up assets like those of OZ Minerals - a play on the future of electrification and decarbonisation, analysts and bankers said, after the miner's unsolicited bid for the nickel and copper company was rebuffed. Mathew Hodge, director of equity research at Morningstar, named "Glencore, Anglo American, Teck and other large to mid-cap companies" as those that could be potentially interested in Oz.
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Anglo American AAL.L and Teck Resources TECKb.TO could not immediately be reached for comment. By Praveen Menon and Clara Denina SYDNEY/LONDON, Aug 9 (Reuters) - BHP must shell out more if it wants to snap up assets like those of OZ Minerals - a play on the future of electrification and decarbonisation, analysts and bankers said, after the miner's unsolicited bid for the nickel and copper company was rebuffed. While BHP has not said if it would sweeten its OZ bid, analysts and bankers think if it did it faces no guarantee of winning over OZ's board as other large miners and metals firms are sitting in the wings flush with cash and confident in the long-term outlook for metals like copper - used in wind turbines, solar power systems and electric cables.
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Anglo American AAL.L and Teck Resources TECKb.TO could not immediately be reached for comment. BHP Group's BHP.AX, BHPB.L A$8.34 billion ($5.8 billion), or A$25 per share, bid for OZ Minerals OZL.AX does not fully value its assets in light of the global green energy push, according to some analysts. The metal is currently around $3.50 CMCU3, while OZ shares are at A$25.66.
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3332.0
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2022-08-09 00:00:00 UTC
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U.S. lawmakers look to crack down on airlines over canceled flights
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AAL
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https://www.nasdaq.com/articles/u.s.-lawmakers-look-to-crack-down-on-airlines-over-canceled-flights
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nan
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nan
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By David Shepardson
WASHINGTON, Aug 9 (Reuters) - Two U.S. House Democrats on Tuesday proposed making it unlawful for airlines to offer flights if they know they lack sufficient staff or to cancel flights close to scheduled departures because of foreseeable staffing issues.
In a summer of growing frustration over tens of thousands of canceled flights, Representatives Jan Schakowsky and David Cicilline said their proposal would give the Federal Trade Commission (FTC) and state attorneys general new powers to act.
"Stronger enforcement of the airline industry is urgently needed," said Schakowsky. "The airline industry must be held accountable for the harm they are causing: the missed life events, time separated from family and friends, and the stress of navigating a travel system that isn’t putting consumers first."
The measure would repeal an exemption passenger airlines received from oversight by the FTC under a 1958 law. It is the latest push by lawmakers to convince regulators to get tough on the aviation industry.
Some lawmakers have said the Transportation Department (USDOT) already has the power to fine airlines who knowingly cancel flights because of foreseeable staffing issues citing USDOT authority to investigate whether airlines are engaged in "unfair or deceptive practice[s]" or "unfair method(s) of competition."
In June, Senators Kirsten Gillibrand, Alex Padilla and
Richard Blumenthal wrote Transportation Secretary Pete Buttigieg and the FTC asking them to investigate "the major airlines to ensure they are not engaging in unfair and exploitative business practices."
Last week, Democratic Senators Edward Markey, Elizabeth Warren, Sheldon Whitehouse and Blumenthal along with nearly 20 House lawmakers introduced legislation to provide consumers an "enforceable right to a full cash refund for flight and ticket cancellations."
Last month, Warren and Padilla urged Buttigieg to fine airlines that delay or cancel flights because of staffing or operational issues "to change airlines' calculus about harming consumers to pad their own profits."
Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines, Southwest Airlines LUV.N and others, said Tuesday "carriers strive to provide a seamless travel experience and are making every effort – including reducing summer schedules by 16 percent and increasing hiring initiatives – to accommodate the unexpectedly rapid recovery of demand for air travel."
Buttigieg, who met virtually with airline CEOs in June to demand better performance, told Reuters Monday airlines have improved but have more to do. He also noted the department was proposing a suite of consumer protection rules.
(Reporting by David Shepardson; Editing by David Gregorio)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a summer of growing frustration over tens of thousands of canceled flights, Representatives Jan Schakowsky and David Cicilline said their proposal would give the Federal Trade Commission (FTC) and state attorneys general new powers to act. In June, Senators Kirsten Gillibrand, Alex Padilla and Richard Blumenthal wrote Transportation Secretary Pete Buttigieg and the FTC asking them to investigate "the major airlines to ensure they are not engaging in unfair and exploitative business practices." Last week, Democratic Senators Edward Markey, Elizabeth Warren, Sheldon Whitehouse and Blumenthal along with nearly 20 House lawmakers introduced legislation to provide consumers an "enforceable right to a full cash refund for flight and ticket cancellations."
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By David Shepardson WASHINGTON, Aug 9 (Reuters) - Two U.S. House Democrats on Tuesday proposed making it unlawful for airlines to offer flights if they know they lack sufficient staff or to cancel flights close to scheduled departures because of foreseeable staffing issues. Some lawmakers have said the Transportation Department (USDOT) already has the power to fine airlines who knowingly cancel flights because of foreseeable staffing issues citing USDOT authority to investigate whether airlines are engaged in "unfair or deceptive practice[s]" or "unfair method(s) of competition." Last month, Warren and Padilla urged Buttigieg to fine airlines that delay or cancel flights because of staffing or operational issues "to change airlines' calculus about harming consumers to pad their own profits."
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Some lawmakers have said the Transportation Department (USDOT) already has the power to fine airlines who knowingly cancel flights because of foreseeable staffing issues citing USDOT authority to investigate whether airlines are engaged in "unfair or deceptive practice[s]" or "unfair method(s) of competition." Last month, Warren and Padilla urged Buttigieg to fine airlines that delay or cancel flights because of staffing or operational issues "to change airlines' calculus about harming consumers to pad their own profits." Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines, Southwest Airlines LUV.N and others, said Tuesday "carriers strive to provide a seamless travel experience and are making every effort – including reducing summer schedules by 16 percent and increasing hiring initiatives – to accommodate the unexpectedly rapid recovery of demand for air travel."
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By David Shepardson WASHINGTON, Aug 9 (Reuters) - Two U.S. House Democrats on Tuesday proposed making it unlawful for airlines to offer flights if they know they lack sufficient staff or to cancel flights close to scheduled departures because of foreseeable staffing issues. In a summer of growing frustration over tens of thousands of canceled flights, Representatives Jan Schakowsky and David Cicilline said their proposal would give the Federal Trade Commission (FTC) and state attorneys general new powers to act. Some lawmakers have said the Transportation Department (USDOT) already has the power to fine airlines who knowingly cancel flights because of foreseeable staffing issues citing USDOT authority to investigate whether airlines are engaged in "unfair or deceptive practice[s]" or "unfair method(s) of competition."
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3333.0
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2022-08-08 00:00:00 UTC
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U.S. FAA approves first 787 Dreamliner for deliver since 2021 -sources
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-approves-first-787-dreamliner-for-deliver-since-2021-sources
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nan
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WASHINGTON, Aug 8 (Reuters) - The Federal Aviation Administration on Monday approved the first Boeing BA.N 787 Dreamliner for delivery since May 2021, sources told Reuters.
The plane is set to be delivered to American Airlines AAL.O as early as Wednesday, the airline confirmed to Reuters. American said the plane "will be delivered from Charleston and is expected to enter commercial service in the coming weeks."
(Reporting by David Shepardson; Editing by Leslie Adler)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The plane is set to be delivered to American Airlines AAL.O as early as Wednesday, the airline confirmed to Reuters. WASHINGTON, Aug 8 (Reuters) - The Federal Aviation Administration on Monday approved the first Boeing BA.N 787 Dreamliner for delivery since May 2021, sources told Reuters. American said the plane "will be delivered from Charleston and is expected to enter commercial service in the coming weeks."
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The plane is set to be delivered to American Airlines AAL.O as early as Wednesday, the airline confirmed to Reuters. American said the plane "will be delivered from Charleston and is expected to enter commercial service in the coming weeks." (Reporting by David Shepardson; Editing by Leslie Adler) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The plane is set to be delivered to American Airlines AAL.O as early as Wednesday, the airline confirmed to Reuters. WASHINGTON, Aug 8 (Reuters) - The Federal Aviation Administration on Monday approved the first Boeing BA.N 787 Dreamliner for delivery since May 2021, sources told Reuters. (Reporting by David Shepardson; Editing by Leslie Adler) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The plane is set to be delivered to American Airlines AAL.O as early as Wednesday, the airline confirmed to Reuters. WASHINGTON, Aug 8 (Reuters) - The Federal Aviation Administration on Monday approved the first Boeing BA.N 787 Dreamliner for delivery since May 2021, sources told Reuters. American said the plane "will be delivered from Charleston and is expected to enter commercial service in the coming weeks."
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3334.0
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2022-08-08 00:00:00 UTC
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BHP likely to raise bid for 'strategically sensible target' OZ - analysts
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AAL
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https://www.nasdaq.com/articles/bhp-likely-to-raise-bid-for-strategically-sensible-target-oz-analysts
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nan
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nan
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By Shashwat Awasthi and Tejaswi Marthi
Aug 9 (Reuters) - BHP Group Ltd BHP.AX will likely raise its A$8.34 billion ($5.82 billion) offer to buy Australia's OZ Minerals OZL.AX, analysts said after the global miner was rebuffed in its pursuit of the nickel-copper miner on Monday.
OZ rejected BHP's A$25 per share offer, terming it undervalued and "opportunistic" as it was tabled when copper prices and its stock price have fallen from recent peaks.
"While OZ's board rejected the offer based on price, this is a strategically sensible target as it would enable BHP to unlock more of the value from (its copper mine) Olympic Dam and would also add to BHP's Western Australian nickel business," Jefferies analysts said in a note.
BHP plans to zero in on battery metals like nickel and copper to align itself with a global push towards electrification and decarbonisation, as firms race to capitalize on burgeoning interest in clean energy and electric vehicles.
While the companies did not say if another bid was in the offing, analysts expect a higher offer and touted the likelihood of a bigger takeover battle.
Brad Smoling, managing director at Smoling Stockbroking, said other players would eye OZ's assets in light of the green energy push, and suggested a new offer could be up to A$30 per share.
"Other buyers may be interested in OZ Minerals with many miners optimistic on the outlook for copper. Potential acquirers such as Glencore GLEN.L, Anglo American AAL.L, Teck Resources TECKb.TO, and so on are in very strong financial shape and able to bid," said Jon Mills, an equity analyst at Morningstar.
Mills added, however, that BHP was likely overpaying for the deal at the current price, though that would not deter it from making another approach.
"If BHP revises its offer price by another 20% to 25% then the OZL board may accept the offer," said Kunal Sawhney, chief executive officer of Kalkine Media.
($1 = 1.4331 Australian dollars)
BHP share price steady while OZ tumbles YTDhttps://tmsnrt.rs/3QgeOIY
(Reporting by Shashwat Awasthi and Tejaswi Marthi; Editing by Maju Samuel)
((Shashwat.Awasthi@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Potential acquirers such as Glencore GLEN.L, Anglo American AAL.L, Teck Resources TECKb.TO, and so on are in very strong financial shape and able to bid," said Jon Mills, an equity analyst at Morningstar. BHP plans to zero in on battery metals like nickel and copper to align itself with a global push towards electrification and decarbonisation, as firms race to capitalize on burgeoning interest in clean energy and electric vehicles. ($1 = 1.4331 Australian dollars) BHP share price steady while OZ tumbles YTDhttps://tmsnrt.rs/3QgeOIY (Reporting by Shashwat Awasthi and Tejaswi Marthi; Editing by Maju Samuel) ((Shashwat.Awasthi@tr.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Potential acquirers such as Glencore GLEN.L, Anglo American AAL.L, Teck Resources TECKb.TO, and so on are in very strong financial shape and able to bid," said Jon Mills, an equity analyst at Morningstar. By Shashwat Awasthi and Tejaswi Marthi Aug 9 (Reuters) - BHP Group Ltd BHP.AX will likely raise its A$8.34 billion ($5.82 billion) offer to buy Australia's OZ Minerals OZL.AX, analysts said after the global miner was rebuffed in its pursuit of the nickel-copper miner on Monday. OZ rejected BHP's A$25 per share offer, terming it undervalued and "opportunistic" as it was tabled when copper prices and its stock price have fallen from recent peaks.
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Potential acquirers such as Glencore GLEN.L, Anglo American AAL.L, Teck Resources TECKb.TO, and so on are in very strong financial shape and able to bid," said Jon Mills, an equity analyst at Morningstar. By Shashwat Awasthi and Tejaswi Marthi Aug 9 (Reuters) - BHP Group Ltd BHP.AX will likely raise its A$8.34 billion ($5.82 billion) offer to buy Australia's OZ Minerals OZL.AX, analysts said after the global miner was rebuffed in its pursuit of the nickel-copper miner on Monday. OZ rejected BHP's A$25 per share offer, terming it undervalued and "opportunistic" as it was tabled when copper prices and its stock price have fallen from recent peaks.
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Potential acquirers such as Glencore GLEN.L, Anglo American AAL.L, Teck Resources TECKb.TO, and so on are in very strong financial shape and able to bid," said Jon Mills, an equity analyst at Morningstar. By Shashwat Awasthi and Tejaswi Marthi Aug 9 (Reuters) - BHP Group Ltd BHP.AX will likely raise its A$8.34 billion ($5.82 billion) offer to buy Australia's OZ Minerals OZL.AX, analysts said after the global miner was rebuffed in its pursuit of the nickel-copper miner on Monday. OZ rejected BHP's A$25 per share offer, terming it undervalued and "opportunistic" as it was tabled when copper prices and its stock price have fallen from recent peaks.
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3335.0
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2022-08-08 00:00:00 UTC
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FAA says it expects Boeing resume 787 deliveries in days
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AAL
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https://www.nasdaq.com/articles/faa-says-it-expects-boeing-resume-787-deliveries-in-days-0
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nan
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nan
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By David Shepardson
WASHINGTON, Aug 8 (Reuters) - The Federal Aviation Administration (FAA) on Monday said that it expects Boeing to resume deliveries of its 787 Dreamliner in the coming days after the regulator found the manufacturer made necessary changes to meet certification standards.
Boeing halted deliveries in May 2021.
American Airlines AAL.O is likely to receive the first 787 airplane delivered by Boeing since the halt, sources said. American Airlines said on a Julyearnings callit expects to receive nine 787s this year, including two in early August.
The FAA had earlier approved Boeing's plan for specific inspections to verify the airplane meets requirements and that all work has been completed.
Boeing has presented to the FAA for approval the first of about 120 787s awaiting delivery. The FAA said it "will inspect each aircraft before an airworthiness certificate is issued and cleared for delivery."
Boeing has faced production issues with the 787 for more than two years. In September 2020, the FAA said it was investigating manufacturing flaws in some 787 jetliners.
Boeing suspended deliveries of the 787 after the FAA raised concerns about its proposed inspection method. The FAA had previously issued two airworthiness directives to address production issues for in-service airplanes and identified a new issue in July 2021.
(Reporting by David Shepardson; Editing by Mark Porter and Cynthia Osterman)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O is likely to receive the first 787 airplane delivered by Boeing since the halt, sources said. By David Shepardson WASHINGTON, Aug 8 (Reuters) - The Federal Aviation Administration (FAA) on Monday said that it expects Boeing to resume deliveries of its 787 Dreamliner in the coming days after the regulator found the manufacturer made necessary changes to meet certification standards. American Airlines said on a Julyearnings callit expects to receive nine 787s this year, including two in early August.
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American Airlines AAL.O is likely to receive the first 787 airplane delivered by Boeing since the halt, sources said. Boeing halted deliveries in May 2021. The FAA had earlier approved Boeing's plan for specific inspections to verify the airplane meets requirements and that all work has been completed.
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American Airlines AAL.O is likely to receive the first 787 airplane delivered by Boeing since the halt, sources said. By David Shepardson WASHINGTON, Aug 8 (Reuters) - The Federal Aviation Administration (FAA) on Monday said that it expects Boeing to resume deliveries of its 787 Dreamliner in the coming days after the regulator found the manufacturer made necessary changes to meet certification standards. The FAA had earlier approved Boeing's plan for specific inspections to verify the airplane meets requirements and that all work has been completed.
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American Airlines AAL.O is likely to receive the first 787 airplane delivered by Boeing since the halt, sources said. Boeing has presented to the FAA for approval the first of about 120 787s awaiting delivery. The FAA said it "will inspect each aircraft before an airworthiness certificate is issued and cleared for delivery."
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3336.0
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2022-08-08 00:00:00 UTC
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What's Next For Boeing Stock After A 20% Rise In A Month?
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AAL
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https://www.nasdaq.com/articles/whats-next-for-boeing-stock-after-a-20-rise-in-a-month
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nan
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Boeing stock (NYSE: BA) reported its Q2 results on July 27, with revenue and earnings falling below the street estimates. However, BA stock has rallied around 7% in a week, while it’s up 21% in a month, partly due to positive news for its 787 airplanes. The U.S. Federal Aviation Administration has reportedly approved Boeing’s plan to resume 787 production. Also, Delta placed a large order of 100 aircraft with Boeing, with a total value north of $13 billion, bolstering Boeing’s stock price growth. Despite the recent rise, we believe BA stock has some more room for growth, as discussed below.
Looking at Q2, the company reported revenue of $16.7 billion (down 2% y-o-y) and EPS of $(0.37) (down from $0.40 in the prior year quarter), compared to the consensus estimates of $17.6 billion and $(0.13), respectively. A 10% rise in Global Services revenue and a 1% growth in Commercial Airplanes sales was more than offset by a 17% decline in Defense, Space & Security business. Our Boeing revenue dashboard has more details on the company’s segments.
Following the company’s recently announced Q2 results, we have revised Boeing’s Valuation to be around $205 per share (in line with our prior estimate of $203), which is 23% above the current market price of $167, implying that BA stock has some more room for growth.
But what about the near term?
Now that BA stock has seen a rise of 21% in a month, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a very low chance of a rise for BA stock over the next month. A move of 21% in a month has occurred 52 times in the past ten years. Of those 52 instances, only 16 resulted in BA stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 16 out of 52, or about a 31% chance of a rise in BA stock over the next month. See our analysis of Boeing’s Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using the last ten years’ data
After moving 7% or more over five days, the stock rose on 54% of the occasions in the next five days.
After moving 5% or more over ten days, the stock rose on 52% of the occasions in the next ten days.
After moving 21% or more over a twenty-one-day period, the stock rose on 31% of the occasions in the next twenty-one days.
This pattern suggests a slightly higher chance of a rise in BA stock over the next five and ten days but a very low chance of an increase in the next twenty-one days.
Boeing (BA) Return (Recent) Comparison With Peers
Five-Day Return: NOC highest at 8.1%; RTX lowest at 4.7%
Ten-Day Return: LMT highest at 8.6%; RTX lowest at -0.3%
Twenty-One Day Return: BA highest at 21.0%; RTX lowest at 1.7%
While BA stock looks like it has more room for growth, it is helpful to see how Boeing’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Vicor vs. Williams Sonoma.
With inflation rising and the Fed raising interest rates, among other factors, Boeing stock has fallen 18% this year. Can it drop more? See how low Boeing stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
BA Return 5% -18% 7%
S&P 500 Return 1% -13% 86%
Trefis Multi-Strategy Portfolio 4% -10% 253%
[1] Month-to-date and year-to-date as of 8/4/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Boeing stock (NYSE: BA) reported its Q2 results on July 27, with revenue and earnings falling below the street estimates. A 10% rise in Global Services revenue and a 1% growth in Commercial Airplanes sales was more than offset by a 17% decline in Defense, Space & Security business. Following the company’s recently announced Q2 results, we have revised Boeing’s Valuation to be around $205 per share (in line with our prior estimate of $203), which is 23% above the current market price of $167, implying that BA stock has some more room for growth.
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Boeing (BA) Return (Recent) Comparison With Peers Five-Day Return: NOC highest at 8.1%; RTX lowest at 4.7% Ten-Day Return: LMT highest at 8.6%; RTX lowest at -0.3% Twenty-One Day Return: BA highest at 21.0%; RTX lowest at 1.7% While BA stock looks like it has more room for growth, it is helpful to see how Boeing’s Peers fare on metrics that matter. See how low Boeing stock can go by comparing its decline in previous market crashes. Total [2] BA Return 5% -18% 7% S&P 500 Return 1% -13% 86% Trefis Multi-Strategy Portfolio 4% -10% 253% [1] Month-to-date and year-to-date as of 8/4/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This pattern suggests a slightly higher chance of a rise in BA stock over the next five and ten days but a very low chance of an increase in the next twenty-one days. Boeing (BA) Return (Recent) Comparison With Peers Five-Day Return: NOC highest at 8.1%; RTX lowest at 4.7% Ten-Day Return: LMT highest at 8.6%; RTX lowest at -0.3% Twenty-One Day Return: BA highest at 21.0%; RTX lowest at 1.7% While BA stock looks like it has more room for growth, it is helpful to see how Boeing’s Peers fare on metrics that matter. Total [2] BA Return 5% -18% 7% S&P 500 Return 1% -13% 86% Trefis Multi-Strategy Portfolio 4% -10% 253% [1] Month-to-date and year-to-date as of 8/4/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Going by historical performance, there is a very low chance of a rise for BA stock over the next month. This historical pattern reflects 16 out of 52, or about a 31% chance of a rise in BA stock over the next month. Total [2] BA Return 5% -18% 7% S&P 500 Return 1% -13% 86% Trefis Multi-Strategy Portfolio 4% -10% 253% [1] Month-to-date and year-to-date as of 8/4/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3337.0
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2022-08-05 00:00:00 UTC
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U.S. hotels spin travel demand into gold as airlines struggle
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AAL
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https://www.nasdaq.com/articles/u.s.-hotels-spin-travel-demand-into-gold-as-airlines-struggle
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nan
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By Gigi Zamora
Aug 5 (Reuters) - Staff shortages, airport chaos and higher fuel costs have caused earnings at U.S. airlines like JetBlue Airways to land below analysts' expectations while hotel chains including Marriott International are reporting double-digit profit growth.
Despite cutbacks in other categories due to recession worries, consumers eager to travel after the pandemic continue to book flights and hotels. Hotels have been able to turn this demand into increased profitability far more effectively than airlines.
David Tarsh, spokesperson for travel data analytics company Forward Keys, said the problems faced by airlines and airports are harder to resolve than those in the lodging industry.
"In the case of labor in hospitality, your shortage is probably more with less-skilled workers than in the case of the aviation industry," he said. "If you're short of cabin crew and you're short of security people in the airport, you can't just increase wages and suddenly fill these roles. People also need to be trained."
U.S. carriers are struggling to offset higher costs such as fuel even as booming travel demand has given them strong pricing power.
JetBlue Airways Corp JBLU.O on Tuesday reported a quarterly adjusted loss of 47 cents per share compared to analysts’ predictions of an 11-cent loss.
United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL last month reported quarterly profits below analysts' expectations.
Meanwhile, hotel bookings are surging. Marriott International Inc MAR.O on Tuesday topped Wall Street estimates for quarterly revenue and profits, helped by higher occupancy levels and room rates as travelers booked more group travel and longer stays.
Last month, Hilton Worldwide Holdings HLT.N saw profit rise above pre-pandemic levels. On Wednesday, MGM Resorts International MGM.N reported profit 25% higher than in the second quarter of 2019 and said staff shortage problems seemed to be easing.
“Generally speaking, we're in decent shape. We are not running around with our hair on fire, if you will, anymore,” said MGM Resorts CEO Bill Hornbuckle in Wednesday'searnings call
Host Hotels & Resorts Inc HST.O, which operates hotels under the Four Seasons, Grand Hyatt and Ritz Carlton brands, reported profits of 36 cents per share, higher than analysts' predictions.
"We're up into the double digits in terms of total revenue (growth) for Thanksgiving. And actually, for Christmas, we are seeing a solid pickup as well,” said Host CEO Jim Risoleo on a call for analysts on Thursday.
(Reporting by Gigi Zamora; Editing by Anna Driver and Cynthia Osterman)
((Gigi.Zamora@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL last month reported quarterly profits below analysts' expectations. By Gigi Zamora Aug 5 (Reuters) - Staff shortages, airport chaos and higher fuel costs have caused earnings at U.S. airlines like JetBlue Airways to land below analysts' expectations while hotel chains including Marriott International are reporting double-digit profit growth. Despite cutbacks in other categories due to recession worries, consumers eager to travel after the pandemic continue to book flights and hotels.
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United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL last month reported quarterly profits below analysts' expectations. By Gigi Zamora Aug 5 (Reuters) - Staff shortages, airport chaos and higher fuel costs have caused earnings at U.S. airlines like JetBlue Airways to land below analysts' expectations while hotel chains including Marriott International are reporting double-digit profit growth. JetBlue Airways Corp JBLU.O on Tuesday reported a quarterly adjusted loss of 47 cents per share compared to analysts’ predictions of an 11-cent loss.
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United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL last month reported quarterly profits below analysts' expectations. By Gigi Zamora Aug 5 (Reuters) - Staff shortages, airport chaos and higher fuel costs have caused earnings at U.S. airlines like JetBlue Airways to land below analysts' expectations while hotel chains including Marriott International are reporting double-digit profit growth. Marriott International Inc MAR.O on Tuesday topped Wall Street estimates for quarterly revenue and profits, helped by higher occupancy levels and room rates as travelers booked more group travel and longer stays.
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United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL last month reported quarterly profits below analysts' expectations. By Gigi Zamora Aug 5 (Reuters) - Staff shortages, airport chaos and higher fuel costs have caused earnings at U.S. airlines like JetBlue Airways to land below analysts' expectations while hotel chains including Marriott International are reporting double-digit profit growth. We are not running around with our hair on fire, if you will, anymore,” said MGM Resorts CEO Bill Hornbuckle in Wednesday'searnings call Host Hotels & Resorts Inc HST.O, which operates hotels under the Four Seasons, Grand Hyatt and Ritz Carlton brands, reported profits of 36 cents per share, higher than analysts' predictions.
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3338.0
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2022-08-04 00:00:00 UTC
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September 23rd Options Now Available For American Airlines Group (AAL)
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AAL
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https://www.nasdaq.com/articles/september-23rd-options-now-available-for-american-airlines-group-aal
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 23rd contracts and identified one put and one call contract of particular interest.
The put contract at the $14.50 strike price has a current bid of $1.04. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $14.50, but will also collect the premium, putting the cost basis of the shares at $13.46 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $14.72/share today.
Because the $14.50 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.17% return on the cash commitment, or 52.36% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $14.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $15.00 strike price has a current bid of $1.05. If an investor was to purchase shares of AAL stock at the current price level of $14.72/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $15.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.04% if the stock gets called away at the September 23rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red:
Considering the fact that the $15.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.13% boost of extra return to the investor, or 52.07% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $14.72) to be 56%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 23rd expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 23rd contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 23rd contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 23rd contracts and identified one put and one call contract of particular interest.
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3339.0
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2022-08-03 00:00:00 UTC
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U.S. proposes new consumer protection rules for airline passengers
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AAL
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https://www.nasdaq.com/articles/u.s.-proposes-new-consumer-protection-rules-for-airline-passengers-0
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nan
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nan
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Adds comments by U.S. Transportation secretary, other details
WASHINGTON, Aug 3 (Reuters) - The U.S. Transportation Department on Wednesday proposed new rules to strengthen airline passenger protection and require airlines to provide vouchers that do not expire when passengers are unable to fly for certain pandemic-related reasons.
The rules would codify the Transportation Department’s longstanding interpretation that failing to provide refunds when an airline cancels or significantly changes a U.S. flight constitutes an unfair practice.
Those requirements would include offering refunds if airlines made changes that impact departure or arrival times by three hours or more for a domestic flight or six hours or more for an international flight if passengers did not accept alternative arrangements.
"This new proposed rule would protect the rights of travelers and help ensure they get the timely refunds they deserve from the airlines," said U.S. Transportation Secretary Pete Buttigieg.
The proposed rules come amid a growing push by lawmakers who have urged Buttigieg to take a tougher stance after airlines this summer have canceled tens of thousands of flights.
Last month, Democratic senators Elizabeth Warren and Alex Padilla asked Buttigieg to fine airlines that delay or cancel flights because of staffing or operational issues.
Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and others, declined to comment on the proposal on Wednesday but noted U.S. airlines have trimmed capacity by 16% and are "ramping up hiring initiatives and increasing communication with travelers" while addressing "a range of challenges, outside carrier control, such as inclement weather."
They also noted that since the onset of the pandemic, U.S. airlines have issued $21 billion in cash refunds.
Buttigieg, who met virtually with airline CEOs in June to demand better performance, said recently that airlines have improved their performance.
The department is also proposing to require U.S. and foreign air carriers and ticket agents to provide refunds for pandemic- related travel cancellations instead of non-expiring travel vouchers or credits "if the carrier or ticket agent received significant financial assistance from the government as a result of a public health emergency."
Taxpayers awarded U.S. airlines $54 billion in COVID-19 government assistance for payroll costs. American and Delta each got around $12 billion, while United received about $11 billion, with 30% repayable to taxpayers.
Those provisions would apply only to airlines receiving new assistance after the rules are finalized.
USDOT has concluded investigations of 10 airlines "and is pursuing enforcement action against them for extreme delays in providing refunds for flights the airlines canceled or significantly changed" and is actively investigating refund practices of more than 10 additional airlines flying to, from, or within the United States, the department said on Wednesday.
(Reporting by David Shepardson in Washington Editing by Matthew Lewis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and others, declined to comment on the proposal on Wednesday but noted U.S. airlines have trimmed capacity by 16% and are "ramping up hiring initiatives and increasing communication with travelers" while addressing "a range of challenges, outside carrier control, such as inclement weather." The rules would codify the Transportation Department’s longstanding interpretation that failing to provide refunds when an airline cancels or significantly changes a U.S. flight constitutes an unfair practice. The proposed rules come amid a growing push by lawmakers who have urged Buttigieg to take a tougher stance after airlines this summer have canceled tens of thousands of flights.
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Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and others, declined to comment on the proposal on Wednesday but noted U.S. airlines have trimmed capacity by 16% and are "ramping up hiring initiatives and increasing communication with travelers" while addressing "a range of challenges, outside carrier control, such as inclement weather." Adds comments by U.S. Transportation secretary, other details WASHINGTON, Aug 3 (Reuters) - The U.S. Transportation Department on Wednesday proposed new rules to strengthen airline passenger protection and require airlines to provide vouchers that do not expire when passengers are unable to fly for certain pandemic-related reasons. The department is also proposing to require U.S. and foreign air carriers and ticket agents to provide refunds for pandemic- related travel cancellations instead of non-expiring travel vouchers or credits "if the carrier or ticket agent received significant financial assistance from the government as a result of a public health emergency."
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Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and others, declined to comment on the proposal on Wednesday but noted U.S. airlines have trimmed capacity by 16% and are "ramping up hiring initiatives and increasing communication with travelers" while addressing "a range of challenges, outside carrier control, such as inclement weather." Adds comments by U.S. Transportation secretary, other details WASHINGTON, Aug 3 (Reuters) - The U.S. Transportation Department on Wednesday proposed new rules to strengthen airline passenger protection and require airlines to provide vouchers that do not expire when passengers are unable to fly for certain pandemic-related reasons. USDOT has concluded investigations of 10 airlines "and is pursuing enforcement action against them for extreme delays in providing refunds for flights the airlines canceled or significantly changed" and is actively investigating refund practices of more than 10 additional airlines flying to, from, or within the United States, the department said on Wednesday.
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Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and others, declined to comment on the proposal on Wednesday but noted U.S. airlines have trimmed capacity by 16% and are "ramping up hiring initiatives and increasing communication with travelers" while addressing "a range of challenges, outside carrier control, such as inclement weather." Adds comments by U.S. Transportation secretary, other details WASHINGTON, Aug 3 (Reuters) - The U.S. Transportation Department on Wednesday proposed new rules to strengthen airline passenger protection and require airlines to provide vouchers that do not expire when passengers are unable to fly for certain pandemic-related reasons. The rules would codify the Transportation Department’s longstanding interpretation that failing to provide refunds when an airline cancels or significantly changes a U.S. flight constitutes an unfair practice.
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3340.0
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2022-08-03 00:00:00 UTC
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U.S. proposes new consumer protection rules for airline passengers
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AAL
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https://www.nasdaq.com/articles/u.s.-proposes-new-consumer-protection-rules-for-airline-passengers
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nan
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nan
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WASHINGTON, Aug 3 (Reuters) - The U.S. Transportation Department on Wednesday proposed new rules to strengthen airline passenger protection rules and require airlines to provide vouchers that do not expire when passengers are unable to fly for some pandemic reasons.
The rules would codify the Transportation Department’s longstanding interpretation that failing to provide refunds when an airline cancels or significantly changes a U.S. flight constitutes an unfair practice.
Those requirements would include changes that impact departure or arrival times by three hours or more for a domestic flight or six hours or more for an international flight.
(Reporting by David Shepardson Editing by Chris Reese)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 3 (Reuters) - The U.S. Transportation Department on Wednesday proposed new rules to strengthen airline passenger protection rules and require airlines to provide vouchers that do not expire when passengers are unable to fly for some pandemic reasons. The rules would codify the Transportation Department’s longstanding interpretation that failing to provide refunds when an airline cancels or significantly changes a U.S. flight constitutes an unfair practice. (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 3 (Reuters) - The U.S. Transportation Department on Wednesday proposed new rules to strengthen airline passenger protection rules and require airlines to provide vouchers that do not expire when passengers are unable to fly for some pandemic reasons. The rules would codify the Transportation Department’s longstanding interpretation that failing to provide refunds when an airline cancels or significantly changes a U.S. flight constitutes an unfair practice. (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 3 (Reuters) - The U.S. Transportation Department on Wednesday proposed new rules to strengthen airline passenger protection rules and require airlines to provide vouchers that do not expire when passengers are unable to fly for some pandemic reasons. The rules would codify the Transportation Department’s longstanding interpretation that failing to provide refunds when an airline cancels or significantly changes a U.S. flight constitutes an unfair practice. (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 3 (Reuters) - The U.S. Transportation Department on Wednesday proposed new rules to strengthen airline passenger protection rules and require airlines to provide vouchers that do not expire when passengers are unable to fly for some pandemic reasons. The rules would codify the Transportation Department’s longstanding interpretation that failing to provide refunds when an airline cancels or significantly changes a U.S. flight constitutes an unfair practice. Those requirements would include changes that impact departure or arrival times by three hours or more for a domestic flight or six hours or more for an international flight.
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3341.0
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2022-08-02 00:00:00 UTC
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Chile's copper production in Codelco and Collahuasi drops in June
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AAL
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https://www.nasdaq.com/articles/chiles-copper-production-in-codelco-and-collahuasi-drops-in-june-0
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nan
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nan
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Adds context, total production
SANTIAGO, Aug 2 (Reuters) - Chile's copper production from state-owned giant Codelco fell 14.3% in June to reach 129,900 tonnes, government body Cochilco said on Tuesday.
Production at Collahuasi, a joint venture of Anglo American AAL.L and Glencore GLEN.N, dipped 6.9% on a year-on-year basis to 50,200 tonnes.
Copper output from Escondida, which is controlled by Australian mining giant , rose 23.6% to 102,500 tonnes, Cochilco said.
The country's total production, weighed down by the weak performance of the state-owned Codelco and the private Collahuasi, fell by 5% in June to 453,300 tonnes.
(Reporting by Fabian Cambero, Writing by Carolina Pulice)
((Carolina.Pulice@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Production at Collahuasi, a joint venture of Anglo American AAL.L and Glencore GLEN.N, dipped 6.9% on a year-on-year basis to 50,200 tonnes. Copper output from Escondida, which is controlled by Australian mining giant , rose 23.6% to 102,500 tonnes, Cochilco said. The country's total production, weighed down by the weak performance of the state-owned Codelco and the private Collahuasi, fell by 5% in June to 453,300 tonnes.
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Production at Collahuasi, a joint venture of Anglo American AAL.L and Glencore GLEN.N, dipped 6.9% on a year-on-year basis to 50,200 tonnes. Adds context, total production SANTIAGO, Aug 2 (Reuters) - Chile's copper production from state-owned giant Codelco fell 14.3% in June to reach 129,900 tonnes, government body Cochilco said on Tuesday. Copper output from Escondida, which is controlled by Australian mining giant , rose 23.6% to 102,500 tonnes, Cochilco said.
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Production at Collahuasi, a joint venture of Anglo American AAL.L and Glencore GLEN.N, dipped 6.9% on a year-on-year basis to 50,200 tonnes. Adds context, total production SANTIAGO, Aug 2 (Reuters) - Chile's copper production from state-owned giant Codelco fell 14.3% in June to reach 129,900 tonnes, government body Cochilco said on Tuesday. The country's total production, weighed down by the weak performance of the state-owned Codelco and the private Collahuasi, fell by 5% in June to 453,300 tonnes.
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Production at Collahuasi, a joint venture of Anglo American AAL.L and Glencore GLEN.N, dipped 6.9% on a year-on-year basis to 50,200 tonnes. Adds context, total production SANTIAGO, Aug 2 (Reuters) - Chile's copper production from state-owned giant Codelco fell 14.3% in June to reach 129,900 tonnes, government body Cochilco said on Tuesday. Copper output from Escondida, which is controlled by Australian mining giant , rose 23.6% to 102,500 tonnes, Cochilco said.
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3342.0
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2022-08-02 00:00:00 UTC
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Chile's copper production in Codelco and Collahuasi drops in June
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AAL
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https://www.nasdaq.com/articles/chiles-copper-production-in-codelco-and-collahuasi-drops-in-june
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nan
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nan
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SANTIAGO, Aug 2 (Reuters) - Chile's copper production from state-owned giant Codelco fell 14.3% in June to reach 129,900 tonnes, government body Cochilco said on Tuesday.
Production at Collahuasi, a joint venture of Anglo American AAL.L and Glencore GLEN.N, dipped 6.9% on a year-on-year basis to 50,200 tonnes.
Copper output from Escondida, which is controlled by Australian mining giant , rose 23.6% to 102,500 tonnes, Cochilco said.
(Reporting by Fabain Cambero, Writing by Carolina Pulice)
((Carolina.Pulice@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Production at Collahuasi, a joint venture of Anglo American AAL.L and Glencore GLEN.N, dipped 6.9% on a year-on-year basis to 50,200 tonnes. SANTIAGO, Aug 2 (Reuters) - Chile's copper production from state-owned giant Codelco fell 14.3% in June to reach 129,900 tonnes, government body Cochilco said on Tuesday. Copper output from Escondida, which is controlled by Australian mining giant , rose 23.6% to 102,500 tonnes, Cochilco said.
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Production at Collahuasi, a joint venture of Anglo American AAL.L and Glencore GLEN.N, dipped 6.9% on a year-on-year basis to 50,200 tonnes. SANTIAGO, Aug 2 (Reuters) - Chile's copper production from state-owned giant Codelco fell 14.3% in June to reach 129,900 tonnes, government body Cochilco said on Tuesday. Copper output from Escondida, which is controlled by Australian mining giant , rose 23.6% to 102,500 tonnes, Cochilco said.
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Production at Collahuasi, a joint venture of Anglo American AAL.L and Glencore GLEN.N, dipped 6.9% on a year-on-year basis to 50,200 tonnes. SANTIAGO, Aug 2 (Reuters) - Chile's copper production from state-owned giant Codelco fell 14.3% in June to reach 129,900 tonnes, government body Cochilco said on Tuesday. Copper output from Escondida, which is controlled by Australian mining giant , rose 23.6% to 102,500 tonnes, Cochilco said.
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Production at Collahuasi, a joint venture of Anglo American AAL.L and Glencore GLEN.N, dipped 6.9% on a year-on-year basis to 50,200 tonnes. SANTIAGO, Aug 2 (Reuters) - Chile's copper production from state-owned giant Codelco fell 14.3% in June to reach 129,900 tonnes, government body Cochilco said on Tuesday. Copper output from Escondida, which is controlled by Australian mining giant , rose 23.6% to 102,500 tonnes, Cochilco said.
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3343.0
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2022-08-01 00:00:00 UTC
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Here's Why American Airlines Stock Has Shed More Than 50% Since Late 2018
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AAL
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https://www.nasdaq.com/articles/heres-why-american-airlines-stock-has-shed-more-than-50-since-late-2018
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nan
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nan
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American Airlines Group Inc. (NASDAQ: AAL) stock price shed around 56% from $32 in 2018 end to $14 currently, primarily due to unfavorable changes in its P/S multiple. Additionally, the company witnessed a drop in its sales over this period, and combined with a rise in the outstanding share count, its revenues per share also decreased. Due to this, the stock has strongly underperformed the S&P, which returned a little over 60% over this timeframe.
In our interactive dashboard, Why American Airlines Stock Moved: AAL Stock Has Lost 56% Since 2018, we break down the factors behind this move.
(A) AAL’s Total Revenue has dropped 8.6% from $44.5 billion in FY 2018 to around $40.7 billion on an LTM basis
AAL’s total revenue first rose from $44.5 billion in FY ’18 to $45.8 billion in FY ’19, before dropping sharply to as low as $17.3 billion in FY ’20 due to the pandemic affecting flight travel.
However, the company’s sales have since recovered, rising steadily to almost $30 billion in FY ’21, and currently stand at $40.7 billion on an LTM basis.
As of FY ’21, AAL’s largest segment is the Passenger segment, making up around 87% of the company’s net sales, with Cargo and Other sales bringing in the remaining 13%.
For details about AAL revenues and comparison to peers, see American Airlines (AAL) Revenue Comparison
(B) Revenue per share (RPS) decreased 24% from $81.67 in 2018 to $62.44 currently
AAL revenue dropped from $44.5 billion in 2018 to $40.7 billion currently, while the outstanding share count increased from 545.4 million in 2018 to 652.1 million currently.
Due to this, RPS has declined from $81.67 in FY ’18 to $62.44 currently.
(C) Price-To-Sales (P/S) multiple for AAL rose from 0.5x in 2018 to 0.6x by 2020 end, but has pulled back to 0.2x currently, less than half its 2018 level
Despite AAL’s weak performance in FY ’20, its P/S multiple rose from 0.5x in 2018 to 0.6x in 2020, on the back of rising investor expectations surrounding a revival in demand for the company’s services.
However, due to the increased economic uncertainty weighing on the broader markets and rising crude prices expected to weigh on margins, the P/S multiple has pulled back, currently standing at around 0.2x.
For additional details about the company stock returns and comparison to peers, see American Airlines (AAL) Stock Return Comparison.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Jul 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
AAL Return 10% -22% -70%
S&P 500 Return 6% -16% 80%
Trefis Multi-Strategy Portfolio 9% -16% 232%
[1] Month-to-date and year-to-date as of 7/28/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. (NASDAQ: AAL) stock price shed around 56% from $32 in 2018 end to $14 currently, primarily due to unfavorable changes in its P/S multiple. (C) Price-To-Sales (P/S) multiple for AAL rose from 0.5x in 2018 to 0.6x by 2020 end, but has pulled back to 0.2x currently, less than half its 2018 level Despite AAL’s weak performance in FY ’20, its P/S multiple rose from 0.5x in 2018 to 0.6x in 2020, on the back of rising investor expectations surrounding a revival in demand for the company’s services. Total [2] AAL Return 10% -22% -70% S&P 500 Return 6% -16% 80% Trefis Multi-Strategy Portfolio 9% -16% 232% [1] Month-to-date and year-to-date as of 7/28/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(A) AAL’s Total Revenue has dropped 8.6% from $44.5 billion in FY 2018 to around $40.7 billion on an LTM basis AAL’s total revenue first rose from $44.5 billion in FY ’18 to $45.8 billion in FY ’19, before dropping sharply to as low as $17.3 billion in FY ’20 due to the pandemic affecting flight travel. For details about AAL revenues and comparison to peers, see American Airlines (AAL) Revenue Comparison (B) Revenue per share (RPS) decreased 24% from $81.67 in 2018 to $62.44 currently AAL revenue dropped from $44.5 billion in 2018 to $40.7 billion currently, while the outstanding share count increased from 545.4 million in 2018 to 652.1 million currently. For additional details about the company stock returns and comparison to peers, see American Airlines (AAL) Stock Return Comparison.
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(A) AAL’s Total Revenue has dropped 8.6% from $44.5 billion in FY 2018 to around $40.7 billion on an LTM basis AAL’s total revenue first rose from $44.5 billion in FY ’18 to $45.8 billion in FY ’19, before dropping sharply to as low as $17.3 billion in FY ’20 due to the pandemic affecting flight travel. For details about AAL revenues and comparison to peers, see American Airlines (AAL) Revenue Comparison (B) Revenue per share (RPS) decreased 24% from $81.67 in 2018 to $62.44 currently AAL revenue dropped from $44.5 billion in 2018 to $40.7 billion currently, while the outstanding share count increased from 545.4 million in 2018 to 652.1 million currently. Total [2] AAL Return 10% -22% -70% S&P 500 Return 6% -16% 80% Trefis Multi-Strategy Portfolio 9% -16% 232% [1] Month-to-date and year-to-date as of 7/28/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. (NASDAQ: AAL) stock price shed around 56% from $32 in 2018 end to $14 currently, primarily due to unfavorable changes in its P/S multiple. (A) AAL’s Total Revenue has dropped 8.6% from $44.5 billion in FY 2018 to around $40.7 billion on an LTM basis AAL’s total revenue first rose from $44.5 billion in FY ’18 to $45.8 billion in FY ’19, before dropping sharply to as low as $17.3 billion in FY ’20 due to the pandemic affecting flight travel. For additional details about the company stock returns and comparison to peers, see American Airlines (AAL) Stock Return Comparison.
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3344.0
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2022-07-29 00:00:00 UTC
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Miners' profits face an unusual foe: extreme weather
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AAL
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https://www.nasdaq.com/articles/miners-profits-face-an-unusual-foe%3A-extreme-weather
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nan
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nan
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July 29 (Reuters) - Heavy rainfalls, withering droughts and other extreme weather patterns across the globe are denting miners' profits and crimping supply of iron ore, copper and other widely-used minerals as climate change roils yet another industry.
It is an unusual situation for companies that have experience operating anywhere in the world, include miles underground and at the tops of mountains and in places where temperatures often range from 100 degrees Fahrenheit (38°C) to 0F (minus 18°C).
But the first part of 2022 saw the mining industry - parts of which have long faced criticism for how coal production affects climate patterns - contend with a raft of weather-related incidents entirely outside its playbook. Executives detailed their weather-related troubles in earnings reports this week and warned they are likely to continue.
"We are reviewing a few different scenarios to adjust to the likelihood that there are further strange weather patterns," said Lundin Mining Corp LUN.TO Chief Executive Peter Rockandel.
Lundin cut its 2022 copper production forecast after heavy rains dented production at its Chapada mine in Brazil, a facility that as recently as 2019 was contending with drought.
Anglo American Plc AAL.Lslashed its dividend after torrid rains hurt its iron ore production in Brazil during the first half of the year, coal mining in Australia and platinum mining in South Africa.
"The extremes that we saw in quarter one of this year outpaced all reasonable forecasting ability that we had," said Anglo CEO Duncan Wanbald.
Rio Tinto Ltd's RIO.LRIO.AX iron ore shipments from Australia's Pilbara region fell 2% in the first half of the year compared with the same period in 2021, partly due to "significantly higher than average rainfall in May."
Rio also said titanium dioxide production slipped in Madagascar amid one of the worst cyclone seasons in that country since 2008.
With inflation and high energy costs already biting into companies' cash reserves, the disruptions caused by extreme weather are even more evident.
"When markets are tight, these things just become a lot more material ... but there is not a lot you can do," analyst Ben Davis at broker Liberum said.
The cost of weather extremes is also measured in human lives. In Burkina Faso, unexpectedly heavy rains during the dry season caused flash floods at Trevali Mining Corp's TV.TOzinc mine in April, killing eight miners who were trapped underground.
Brazil's Vale SA VALE3.SA, one of the world's largest iron ore miners, said its output of the steel-producing mineral dropped in the first three months of the year due to torrential rains. Glencore GLEN.Lwarned that flooding could dent its Australian coal production this year.
Sibanye Stillwater Ltd SSWJ.J shuttered its Montana platinum mines last month after mountain snow rapidly melted amid unusually warm weather, causing runoff that took out several key roads and bridges.
ArcelorMittal SA MT.LU said steel production at its South Africa's unit ACLJ.J fell nearly a third during the first half after severe flooding in the KwaZulu-Natal province damaged rail lines.
DROUGHT
In Chile, the world's largest copper producer, miners have faced an ongoing water crisis due to historic drought that has lasted more than a decade and only grown worse this year. Antofagasta Plc ANTO.L, one of the country's largest copper miners, expects its production of the red metal to fall this year due to that drought.
Water is essential in copper production, used abundantly to separate the mineral from its ore and in subsequent steps. To counter water shortages, many mining companies desalinate ocean water and use it in their processes.
Earthworks, an environmental group that tracks the mining industry, said mining companies must do more to fund infrastructure improvements amid the changing climate.
"Mining companies have been prioritizing their bottom line over investing in safety and resiliency for too long," said Jan Morrill of Earthworks.
Anglo American cuts dividend as inflation, extreme weather erode earnings
ArcelorMittal South Africa shares drop after power cuts, rail issues dent production
Sibanye-Stillwater says Montana mines to remain suspended for 4-6 weeks
Antofagasta sees lower 2022 copper production on water shortage
Brazil's Vale posts 50% decline in quarterly profit
EXPLAINER-Why Australia is battling floods again
Glencore lowers full-year copper output guidance
Eighth and last missing miner found dead in flooded Burkina Faso mine
(Reporting by Clara Denina, Helen Reid, Nelson Banya, Gabriel Araujo, Ernest Scheyder and Praveen Menon; writing by Ernest Scheyder Editing by Marguerita Choy)
((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Anglo American Plc AAL.Lslashed its dividend after torrid rains hurt its iron ore production in Brazil during the first half of the year, coal mining in Australia and platinum mining in South Africa. Rio Tinto Ltd's RIO.LRIO.AX iron ore shipments from Australia's Pilbara region fell 2% in the first half of the year compared with the same period in 2021, partly due to "significantly higher than average rainfall in May." Sibanye Stillwater Ltd SSWJ.J shuttered its Montana platinum mines last month after mountain snow rapidly melted amid unusually warm weather, causing runoff that took out several key roads and bridges.
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Anglo American Plc AAL.Lslashed its dividend after torrid rains hurt its iron ore production in Brazil during the first half of the year, coal mining in Australia and platinum mining in South Africa. Lundin cut its 2022 copper production forecast after heavy rains dented production at its Chapada mine in Brazil, a facility that as recently as 2019 was contending with drought. Anglo American cuts dividend as inflation, extreme weather erode earnings ArcelorMittal South Africa shares drop after power cuts, rail issues dent production Sibanye-Stillwater says Montana mines to remain suspended for 4-6 weeks Antofagasta sees lower 2022 copper production on water shortage Brazil's Vale posts 50% decline in quarterly profit EXPLAINER-Why Australia is battling floods again Glencore lowers full-year copper output guidance Eighth and last missing miner found dead in flooded Burkina Faso mine (Reporting by Clara Denina, Helen Reid, Nelson Banya, Gabriel Araujo, Ernest Scheyder and Praveen Menon; writing by Ernest Scheyder Editing by Marguerita Choy) ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Anglo American Plc AAL.Lslashed its dividend after torrid rains hurt its iron ore production in Brazil during the first half of the year, coal mining in Australia and platinum mining in South Africa. July 29 (Reuters) - Heavy rainfalls, withering droughts and other extreme weather patterns across the globe are denting miners' profits and crimping supply of iron ore, copper and other widely-used minerals as climate change roils yet another industry. Anglo American cuts dividend as inflation, extreme weather erode earnings ArcelorMittal South Africa shares drop after power cuts, rail issues dent production Sibanye-Stillwater says Montana mines to remain suspended for 4-6 weeks Antofagasta sees lower 2022 copper production on water shortage Brazil's Vale posts 50% decline in quarterly profit EXPLAINER-Why Australia is battling floods again Glencore lowers full-year copper output guidance Eighth and last missing miner found dead in flooded Burkina Faso mine (Reporting by Clara Denina, Helen Reid, Nelson Banya, Gabriel Araujo, Ernest Scheyder and Praveen Menon; writing by Ernest Scheyder Editing by Marguerita Choy) ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Anglo American Plc AAL.Lslashed its dividend after torrid rains hurt its iron ore production in Brazil during the first half of the year, coal mining in Australia and platinum mining in South Africa. Lundin cut its 2022 copper production forecast after heavy rains dented production at its Chapada mine in Brazil, a facility that as recently as 2019 was contending with drought. Brazil's Vale SA VALE3.SA, one of the world's largest iron ore miners, said its output of the steel-producing mineral dropped in the first three months of the year due to torrential rains.
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3345.0
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2022-07-29 00:00:00 UTC
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Botswana's Debswana diamond sales jump 54% in first half of 2022
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AAL
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https://www.nasdaq.com/articles/botswanas-debswana-diamond-sales-jump-54-in-first-half-of-2022
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nan
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nan
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GABORONE, July 29 (Reuters) - Sales of rough diamonds by Debswana Diamond Company jumped 54% in the first six months of 2022, Bank of Botswana statistics showed on Friday, driven by strong jewellery demand in the key U.S. market as well tight global rough diamond supply.
Debswana, a joint venture between Anglo American unit AAL.L De Beers and Botswana's government sells 75% of its output to De Beers, with the balance taken up by the state-owned Okavango Diamond Company.
According to data published by the central bank, sales of diamonds from Debswana stood at $2.622 billion in the six months to June compared to $1.703 billion in the same period last year.
In local currency terms, rough sales jumped 68.4% to 31 billion pula due to a stronger dollar in the period. Central bank data shows the pula has depreciated by around 5% against the U.S. dollar in the six months to June 2022.
Debswana accounts for almost all Botswana's diamond exports, with Lucara Diamond Corp's LUC.TO Karowe mine being the only other operating diamond mine in the country.
Botswana gets about 30% of its revenue and 70% of its foreign exchange earnings from diamonds.
The country's finance minister Peggy Serame said on Wednesday that a 1.8-billion-pula inflation-relief package, which will be introduced in August, will not widen the annual budget deficit due to the extra revenue from the stronger than anticipated diamond sales in the first half of the year.
(Reporting Brian Benza in Gaborone; Editing by Anait Miridzhanian and David Evans)
((Anait.Miridzhanian@thomsonreuters.com; +48 58 769 66 05;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Debswana, a joint venture between Anglo American unit AAL.L De Beers and Botswana's government sells 75% of its output to De Beers, with the balance taken up by the state-owned Okavango Diamond Company. In local currency terms, rough sales jumped 68.4% to 31 billion pula due to a stronger dollar in the period. Central bank data shows the pula has depreciated by around 5% against the U.S. dollar in the six months to June 2022.
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Debswana, a joint venture between Anglo American unit AAL.L De Beers and Botswana's government sells 75% of its output to De Beers, with the balance taken up by the state-owned Okavango Diamond Company. GABORONE, July 29 (Reuters) - Sales of rough diamonds by Debswana Diamond Company jumped 54% in the first six months of 2022, Bank of Botswana statistics showed on Friday, driven by strong jewellery demand in the key U.S. market as well tight global rough diamond supply. According to data published by the central bank, sales of diamonds from Debswana stood at $2.622 billion in the six months to June compared to $1.703 billion in the same period last year.
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Debswana, a joint venture between Anglo American unit AAL.L De Beers and Botswana's government sells 75% of its output to De Beers, with the balance taken up by the state-owned Okavango Diamond Company. GABORONE, July 29 (Reuters) - Sales of rough diamonds by Debswana Diamond Company jumped 54% in the first six months of 2022, Bank of Botswana statistics showed on Friday, driven by strong jewellery demand in the key U.S. market as well tight global rough diamond supply. According to data published by the central bank, sales of diamonds from Debswana stood at $2.622 billion in the six months to June compared to $1.703 billion in the same period last year.
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Debswana, a joint venture between Anglo American unit AAL.L De Beers and Botswana's government sells 75% of its output to De Beers, with the balance taken up by the state-owned Okavango Diamond Company. In local currency terms, rough sales jumped 68.4% to 31 billion pula due to a stronger dollar in the period. Central bank data shows the pula has depreciated by around 5% against the U.S. dollar in the six months to June 2022.
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3346.0
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2022-07-28 00:00:00 UTC
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Why American Airlines Shares Are Down Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-shares-are-down-today
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nan
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nan
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What happened
Since the start of the pandemic, airline stocks have tended to move together, going up and down more due to macro issues like travel demand and the price of oil instead of company-specific news. But American Airlines Group (NASDAQ: AAL) is an outlier today, down as much as 5% even as rivals Delta Air Lines and United Airlines Holdings are basically flat.
The reason is likely the potential blowback from a transaction that does not directly involve American Airlines, but could leave the its competitive position in the U.S. Eastern Seaboard challenged in the years to come.
So what
American has been a laggard among airline stocks in recent years. The company was the last of the so-called "Big Three" with Delta and United to go through bankruptcy last decade, and the last to find a merger partner. It came into the pandemic relatively weak compared to those rivals, and it's still trying to sort out its competitive position in an industry that has rapidly consolidated.
JetBlue Airways' (NASDAQ: JBLU) planned acquisition of Spirit Airlines could present a new challenge to American's positioning. Regulators appear certain to take a hard look at JetBlue's merger plans, and they could require significant conditions in order for the deal to win antitrust approval.
That's where American Airlines comes in. In 2021, American and JetBlue announced a partnership to coordinate schedules in crowded Northeast markets in the U.S., with each airline filling gaps in the other's schedule and JetBlue feeding American international flights via its domestic service.
The partnership has helped to boost American's presence in important corporate markets where the airline trailed Delta and United. Earlier this year, American Airlines President Robert Isom said alliances "allow us to create an industry-leading presence in markets that have historically been difficult for American."
The Department of Justice is skeptical, late last year filing suit to block the partnership that it claims "harms air travelers nationwide."
Add it all up, and it is easy to see how the DOJ might make JetBlue ending its American Airlines relationship a key part of any settlement that allows the airline to acquire Spirit.
Now what
The threat is real, but investors should not get too far ahead of themselves. JetBlue, for what it is worth, has signaled a willingness to make some concessions in order to buy Spirit but so far it says an end to the alliance is off the table. The alliance is arguably as important to JetBlue's industry position as the Spirit deal would be, and JetBlue is unlikely to abandon it without a fight.
Second, even if the partnership were to fall, there is no guarantee the Spirit deal will be approved, and it is quite possible the status quo will continue indefinitely. At the very least, American has a lot of time to think up and implement a plan B while the JetBlue partnership remains in place.
American has a lot of issues, and for investors looking to buy into an airline, Delta or Southwest Airlines look like better choices for the foreseeable future. JetBlue's move creates yet another potential obstacle that American will have to overcome, but it does not meaningfully change the outlook for the stock.
10 stocks we like better than American Airlines Group
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 27, 2022
Lou Whiteman has positions in Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But American Airlines Group (NASDAQ: AAL) is an outlier today, down as much as 5% even as rivals Delta Air Lines and United Airlines Holdings are basically flat. What happened Since the start of the pandemic, airline stocks have tended to move together, going up and down more due to macro issues like travel demand and the price of oil instead of company-specific news. The reason is likely the potential blowback from a transaction that does not directly involve American Airlines, but could leave the its competitive position in the U.S. Eastern Seaboard challenged in the years to come.
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But American Airlines Group (NASDAQ: AAL) is an outlier today, down as much as 5% even as rivals Delta Air Lines and United Airlines Holdings are basically flat. See the 10 stocks *Stock Advisor returns as of July 27, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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But American Airlines Group (NASDAQ: AAL) is an outlier today, down as much as 5% even as rivals Delta Air Lines and United Airlines Holdings are basically flat. In 2021, American and JetBlue announced a partnership to coordinate schedules in crowded Northeast markets in the U.S., with each airline filling gaps in the other's schedule and JetBlue feeding American international flights via its domestic service. American has a lot of issues, and for investors looking to buy into an airline, Delta or Southwest Airlines look like better choices for the foreseeable future.
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But American Airlines Group (NASDAQ: AAL) is an outlier today, down as much as 5% even as rivals Delta Air Lines and United Airlines Holdings are basically flat. That's where American Airlines comes in. The alliance is arguably as important to JetBlue's industry position as the Spirit deal would be, and JetBlue is unlikely to abandon it without a fight.
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3347.0
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2022-07-28 00:00:00 UTC
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Is JetBlue Stock a Buy After Spirit Deal?
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AAL
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https://www.nasdaq.com/articles/is-jetblue-stock-a-buy-after-spirit-deal
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nan
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nan
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JetBlue Airways (NASDAQ: JBLU) has a deal to buy Spirit Airlines (NYSE: SAVE), emerging victorious after a six-month bidding war against Frontier Group Holdings (NASDAQ: ULCC).
JetBlue won the battle, but now the real fight begins. Investors have every reason to be excited about the prospects of a combined JetBlue/Spirit, but it will likely take years for the deal to live up to its potential, if it ever does.
A quick connection
Frontier put Spirit in play back in February, announcing a cash-and-stock deal that would have created the nation's fifth-largest carrier. JetBlue came forward with a rival, higher, bid a month later, but Spirit's board remained loyal to Frontier in part due to fears that antitrust authorities would quash any JetBlue merger effort.
JetBlue remained steadfast in its offer, and its persistence paid off. On Wednesday, Spirit and Frontier announced they were terminating their agreement after Spirit failed to win shareholder support for the deal.
It took less than 24 hours for JetBlue to secure a deal. Terms of the deal call for JetBlue to pay $33.50 per share in cash for Spirit, including a prepayment of $2.50 per share payable once Spirit shareholders sign off on the deal. To address regulatory concerns JetBlue has also agreed to pay a $0.10-per-month "ticking fee" starting in January until the deal closes, and a $400 million breakup fee if the merger is rejected.
A chance to "turbocharge" growth
For both Frontier and JetBlue, buying Spirit was a unique opportunity to springboard growth in a difficult operating environment. Airlines have seen demand rebound from pandemic lows, but a shortage of pilots and planes has put a cap on organic growth.
Smaller carriers like JetBlue have been hit harder by the pilot shortage because they tend to pay less than larger rivals like Delta Air Lines (NYSE: DAL) or United Airlines Holdings (NASDAQ: UAL), meaning those titans can poach pilots to fill their own needs
Buying Spirit would give JetBlue a much larger pilot roster, and a huge order book of new jets. The combination would have more than 1,700 daily flights to more than 125 destinations in 30 countries, with a fleet of 458 aircraft and more than 300 Airbus (OTC: EADSY) jets on order.
"We are excited to deliver this compelling combination that turbocharges our strategic growth, enabling JetBlue to bring our unique blend of low fares and exceptional service to more customers, on more routes," JetBlue CEO Robin Hayes said in a statement. "This combination is an exciting opportunity to diversify and expand our network, add jobs and new possibilities for crew members, and expand our platform for profitable growth."
Not an easy sell to regulators
For Hayes to gain control of Spirit, he will have to convince a skeptical audience in Washington that the deal is pro-consumer. Spirit's board was not incorrect in its original conclusion that JetBlue likely will face an uphill battle winning over regulators.
Spirit, like Frontier, operates an "ultra-low-cost" model that offers low base fares but charges for extras that other airlines include in their fares. JetBlue has always been more of a hybrid, selling a premium experience at a somewhat higher price. JetBlue has said it intends to shift Spirit's operations to its model, which would mean removing seats from Spirit planes and reconfiguring the cabins to provide more premium seating.
Fewer discounted seats would likely mean higher prices, a sticking point for regulators. JetBlue and Spirit also both primarily fly around the East Coast and the Caribbean, meaning more overlap and the elimination of a competitor on a lot of routes.
JetBlue is already in the regulatory crosshairs due to its close partnership with American Airlines Group (NASDAQ: AAL). The Department of Justice has voiced concerns about an arrangement that allows the two airlines to coordinate operations in the U.S. Northeast, and is unlikely to look favorably on JetBlue's bid to consolidate the industry.
JetBlue has offered to divest gates at crowded airports to appease regulators, but has shown no indication it is willing to give up the American partnership.
JetBlue shareholders need to buckle up
Spirit shares are up on the JetBlue deal, but still trade at a 25% discount to JetBlue's offer price. That wide gap indicates how skeptical the markets are that JetBlue will actually close the deal.
The caution is justified. At best, JetBlue investors are facing a bruising Capitol Hill battle that is likely to drag on for months, after which JetBlue would face a long and costly integration to bring Spirit up to its standards. Airlines historically have struggled to merge union seniority lists following a merger, and almost inevitably resolve issues with pay raises and other perks.
At worst, JetBlue's management will be distracted for months, pay out some cash to Spirit shareholders, but not be able to close the merger. Management already has a lot to deal with even without that distraction, with fuel costs soaring and the prospect of softening demand due to inflation and the threat of a recession.
There's great potential in the JetBlue/Spirit deal, but given the risks and the extended timetable there is no reason for investors to buy in right now.
10 stocks we like better than JetBlue Airways
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and JetBlue Airways wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 27, 2022
Lou Whiteman has positions in Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JetBlue is already in the regulatory crosshairs due to its close partnership with American Airlines Group (NASDAQ: AAL). A quick connection Frontier put Spirit in play back in February, announcing a cash-and-stock deal that would have created the nation's fifth-largest carrier. The Department of Justice has voiced concerns about an arrangement that allows the two airlines to coordinate operations in the U.S. Northeast, and is unlikely to look favorably on JetBlue's bid to consolidate the industry.
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JetBlue is already in the regulatory crosshairs due to its close partnership with American Airlines Group (NASDAQ: AAL). JetBlue Airways (NASDAQ: JBLU) has a deal to buy Spirit Airlines (NYSE: SAVE), emerging victorious after a six-month bidding war against Frontier Group Holdings (NASDAQ: ULCC). Smaller carriers like JetBlue have been hit harder by the pilot shortage because they tend to pay less than larger rivals like Delta Air Lines (NYSE: DAL) or United Airlines Holdings (NASDAQ: UAL), meaning those titans can poach pilots to fill their own needs Buying Spirit would give JetBlue a much larger pilot roster, and a huge order book of new jets.
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JetBlue is already in the regulatory crosshairs due to its close partnership with American Airlines Group (NASDAQ: AAL). Terms of the deal call for JetBlue to pay $33.50 per share in cash for Spirit, including a prepayment of $2.50 per share payable once Spirit shareholders sign off on the deal. Smaller carriers like JetBlue have been hit harder by the pilot shortage because they tend to pay less than larger rivals like Delta Air Lines (NYSE: DAL) or United Airlines Holdings (NASDAQ: UAL), meaning those titans can poach pilots to fill their own needs Buying Spirit would give JetBlue a much larger pilot roster, and a huge order book of new jets.
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JetBlue is already in the regulatory crosshairs due to its close partnership with American Airlines Group (NASDAQ: AAL). Spirit's board was not incorrect in its original conclusion that JetBlue likely will face an uphill battle winning over regulators. JetBlue shareholders need to buckle up Spirit shares are up on the JetBlue deal, but still trade at a 25% discount to JetBlue's offer price.
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3348.0
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2022-07-28 00:00:00 UTC
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5 Broker-Friendly Stocks to Bank on as Market Upheavals Stay
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AAL
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https://www.nasdaq.com/articles/5-broker-friendly-stocks-to-bank-on-as-market-upheavals-stay
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nan
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nan
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With inflation being sky-high in the United States, the Fed adopted a hawkish stance to reduce prices. After hiking the benchmark interest rate by 25, 50 and 75 basis points in March, May and June, respectively, the Federal Reserve officials raised interest rates by another 75 basis points in July, in a desperate bid to tame inflation.
Rising energy and food prices apart, supply-chain disruptions are rendering stock market volatility. Supply-demand imbalance is a major headwind in the present scenario. The S&P 500, the tech-heavy Nasdaq and the Dow Jones Industrial Average have declined in double-digits on a year-to-date basis.
However, this unstable scenario in no way implies that investors should shun equities. In fact, broker-friendly stocks like C.H. Robinson Worldwide CHRW,Bunge Limited BG, American Airlines AAL, Bread Financial BFH and AutoNation AN should be on investors’ watch list.
Why Broker Advice is the Need of the Hour
Brokers, irrespective of their types (sell-side, buy-side or independent), undertake thorough research of the stocks in their coverage. They go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Therefore, the brokers’ opinion can be a valuable guide for investors.
Since brokers indulge in thorough research, the question of their actions being arbitrary does not arise. Estimate revisions also serve as an important pointer regarding the price of a stock. In fact, northbound estimates normally lead to stock price appreciation and vice versa.
One of the well-accepted investment strategies is to maintain a diversified portfolio to generate handsome returns, irrespective of the market conditions. For instance, in the face of extremely low oil prices, analysts adopt a bullish stance on airline stocks and raise estimates. Naturally, adding such stocks to one’s portfolio in such a scenario might prove to be a winning strategy.
Similarly, analysts might turn bearish and trim estimates, thus downgrading a stock, following adverse events like lackluster earnings or a pipeline failure (for a biotech player). Consequently, investors would want to get rid of such stocks from their portfolio on the basis of broker advice.
To take care of the earnings performance, we designed a screen based on improving broker recommendations and upward estimate revisions over the last four weeks.
Do not Ignore the Top Line
However, designing a strategy based solely on the bottom line is unlikely to result in a winning approach. Actually, according to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance. To address top-line concerns, we included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75(This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10(This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
We have also added the following screening parameters to ensure that the strategy is a winning one:
Price-to-Sales = Bot%10(The lower the ratio the better, companies meeting this criteria are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio).
Price greater than 5(as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days(Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000(This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com(This takes out the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
C.H. Robinson Worldwide, currently carrying a Zacks Rank #2 (Buy), operates as an asset-light logistics player. The improving freight scenario in the United States is aiding this Minnesota-based freight broker. Efforts to control costs also bode well. Measures to reward CHRW's shareholders instill further confidence in the stock.
C.H. Robinson has a pleasant earnings track record. The bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark in the remaining one). CHRW has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 1% upward over the past 60 days.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks
Bunge Limited: Headquartered in St. Louis, MO, Bunge operates as an agribusiness firm, delivering essential food, feed and fuel across the globe. BG is reportedly the world’s leader in oilseed processing, and a leading producer and supplier of specialty plant-based oils and fats.
BG delivered a trailing four-quarter earnings surprise of 69.7%, on average. It has a long-term earnings growth expectation of 6.7% and a Zacks Rank #3 (Hold) at present.
American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.
Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 19.2% upward. AAL currently carries a Zacks Rank of 3.
Bread Financial iscurrently Zacks #3 Ranked. Organic growth, higher average loan balances, improved loan yields and a solid cash position, reflecting balance sheet strength, are key positives for BFH.
Bread Financial has an encouraging earnings track record. The bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark in the remaining one), the average surprise being 58.7%.
AutoNation: Incorporated in Delaware in 1991, AutoNation is the largest automotive retailer in the United States. AN’s wide dealer network, aggressive store expansion efforts, brand extension strategy and alliances are praiseworthy.
AutoNation currently has a Zacks Rank #3. Over the past 60 days, the stock has seen the Zacks Consensus Estimate for current-year earnings being revised 4% upward.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
AutoNation, Inc. (AN): Free Stock Analysis Report
Bunge Limited (BG): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Bread Financial Holdings, Inc. (BFH): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Robinson Worldwide CHRW,Bunge Limited BG, American Airlines AAL, Bread Financial BFH and AutoNation AN should be on investors’ watch list. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank of 3.
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Robinson Worldwide CHRW,Bunge Limited BG, American Airlines AAL, Bread Financial BFH and AutoNation AN should be on investors’ watch list. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank of 3.
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Robinson Worldwide CHRW,Bunge Limited BG, American Airlines AAL, Bread Financial BFH and AutoNation AN should be on investors’ watch list. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank of 3.
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Robinson Worldwide CHRW,Bunge Limited BG, American Airlines AAL, Bread Financial BFH and AutoNation AN should be on investors’ watch list. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank of 3.
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3349.0
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2022-07-28 00:00:00 UTC
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European stocks trim gains on some downbeat earnings
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AAL
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https://www.nasdaq.com/articles/european-stocks-trim-gains-on-some-downbeat-earnings
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nan
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By Susan Mathew
July 28 (Reuters) - European shares came off session highs on Thursday, as a slew of downbeat earnings including from Santander took the shine off a global rally driven by easing worries about the future pace of U.S. interest rate hikes.
The U.S. Federal Reserve raised its main interest rate by 75 basis points as expected and reiterated inflation control as priority, but dropped guidance on the size of its next rate hike and noted that "at some point" it would be appropriate to slow down.
"The Fed was quite cautious that things could continue to get harder before we see some sort of recovery, and I think markets at least had some clarity there," said David Jones, chief market strategist at Capital.com.
"The Fed also saying we're not in recession yet is something that perhaps helped market outlook."
The pan-European STOXX 600 index .STOXX rose 0.2%, trimming some gains that took it to seven-week highs.
Investors this year have been beset with worries that aggressive central bank attempts at controlling surging inflation could tip economies into recession. The energy crisis in Europe, stoked by the Russia-Ukraine war, has added to worries.
While euro zone inflation is at a record high of 8.6%, investors eye German consumer prices, due later in the day, which are seen cooling further on the year in July.
"The macro picture is still bad, but markets perhaps think we're past the top of the inflation peak," Jones said, pointing to the recent downtrend in commodity prices.
Milan's main stock index .FTMIB jumped 1.2% as upbeat results lifted carmaker Stellantis STLA.MI and chipmaker STMicroelectronics STM.MI.
Luxury stocks got a boost from puffer jacket maker Moncler's MONC.MI sales beat. Moncler rose 5.1%, while Louis Vuitton owner LVMH LVMH.PA gained 1.6%, providing the biggest boost to the STOXX 600.
Shell SHEL.L gained 0.8% after the oil major posted its biggest quarterly profit ever.
Europe's mining index .SXPP jumped 3.2% to hit four-week highs as base metals and iron ore prices rose on Fed relief. This helped Anglo American AAL.L rise 5.0% despite posting downbeat results. MET/LIRONORE/
Spain's IBEX .IBEX slumped 1.4% as the euro zone's second-biggest lender, Santander SAN.MC, fell on missing profit estimates.
Planemaker Airbus AIR.PA and consumer company Nestle NEST.NS were among other heavyweights that fell after reporting their results.
(Reporting by Susan Mathew in Bengaluru; Editing by Subhranshu Sahu)
((susan.mathew@thomsonreuters.com; +91-80-6287-2704))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This helped Anglo American AAL.L rise 5.0% despite posting downbeat results. By Susan Mathew July 28 (Reuters) - European shares came off session highs on Thursday, as a slew of downbeat earnings including from Santander took the shine off a global rally driven by easing worries about the future pace of U.S. interest rate hikes. While euro zone inflation is at a record high of 8.6%, investors eye German consumer prices, due later in the day, which are seen cooling further on the year in July.
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This helped Anglo American AAL.L rise 5.0% despite posting downbeat results. By Susan Mathew July 28 (Reuters) - European shares came off session highs on Thursday, as a slew of downbeat earnings including from Santander took the shine off a global rally driven by easing worries about the future pace of U.S. interest rate hikes. While euro zone inflation is at a record high of 8.6%, investors eye German consumer prices, due later in the day, which are seen cooling further on the year in July.
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This helped Anglo American AAL.L rise 5.0% despite posting downbeat results. By Susan Mathew July 28 (Reuters) - European shares came off session highs on Thursday, as a slew of downbeat earnings including from Santander took the shine off a global rally driven by easing worries about the future pace of U.S. interest rate hikes. The U.S. Federal Reserve raised its main interest rate by 75 basis points as expected and reiterated inflation control as priority, but dropped guidance on the size of its next rate hike and noted that "at some point" it would be appropriate to slow down.
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This helped Anglo American AAL.L rise 5.0% despite posting downbeat results. The U.S. Federal Reserve raised its main interest rate by 75 basis points as expected and reiterated inflation control as priority, but dropped guidance on the size of its next rate hike and noted that "at some point" it would be appropriate to slow down. "The Fed also saying we're not in recession yet is something that perhaps helped market outlook."
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3350.0
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2022-07-28 00:00:00 UTC
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Anglo American slashes dividend after earnings dive
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AAL
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https://www.nasdaq.com/articles/anglo-american-slashes-dividend-after-earnings-dive
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nan
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Adds detail
LONDON, July 28 (Reuters) - Global miner Anglo American AAL.L slashed payouts to shareholders after first-half earnings fell 28% due to lower production and higher costs.
Anglo joins rival miners Rio Tinto RIO.LRIO.AX and Freeport-McMoRan FCX.N in reporting a profit slump, partly blaming a tight labour market, supply chain snags and inflationary pressures.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $8.7 billion for the six months to the end of June, down from $12.1 billion for the same period last year, but beating an average forecast of $8.56 billion from 10 analysts compiled by research firm Vuma.
Anglo declared an interim dividend of $1.24 per share, down 27% from last year's $1.71 per share interim payout. Over 2021 as a whole, Anglo declared a record $6.2 billion in payouts, including a $1 billion share buyback in August.
Capital expenditure increased 13% from the same period last year, to $2.6 billion, which Anglo put down to spending normalising after deferrals due to the pandemic.
(Reporting by Clara Denina and Helen Reid; editing by Jason Neely and Carmel Crimmins)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail LONDON, July 28 (Reuters) - Global miner Anglo American AAL.L slashed payouts to shareholders after first-half earnings fell 28% due to lower production and higher costs. Anglo joins rival miners Rio Tinto RIO.LRIO.AX and Freeport-McMoRan FCX.N in reporting a profit slump, partly blaming a tight labour market, supply chain snags and inflationary pressures. Capital expenditure increased 13% from the same period last year, to $2.6 billion, which Anglo put down to spending normalising after deferrals due to the pandemic.
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Adds detail LONDON, July 28 (Reuters) - Global miner Anglo American AAL.L slashed payouts to shareholders after first-half earnings fell 28% due to lower production and higher costs. Anglo declared an interim dividend of $1.24 per share, down 27% from last year's $1.71 per share interim payout. Over 2021 as a whole, Anglo declared a record $6.2 billion in payouts, including a $1 billion share buyback in August.
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Adds detail LONDON, July 28 (Reuters) - Global miner Anglo American AAL.L slashed payouts to shareholders after first-half earnings fell 28% due to lower production and higher costs. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $8.7 billion for the six months to the end of June, down from $12.1 billion for the same period last year, but beating an average forecast of $8.56 billion from 10 analysts compiled by research firm Vuma. Over 2021 as a whole, Anglo declared a record $6.2 billion in payouts, including a $1 billion share buyback in August.
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Adds detail LONDON, July 28 (Reuters) - Global miner Anglo American AAL.L slashed payouts to shareholders after first-half earnings fell 28% due to lower production and higher costs. Anglo joins rival miners Rio Tinto RIO.LRIO.AX and Freeport-McMoRan FCX.N in reporting a profit slump, partly blaming a tight labour market, supply chain snags and inflationary pressures. Over 2021 as a whole, Anglo declared a record $6.2 billion in payouts, including a $1 billion share buyback in August.
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3351.0
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2022-07-27 00:00:00 UTC
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EXCLUSIVE-Spirit vote on Frontier deal to proceed; vote set to fail, sources say
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AAL
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https://www.nasdaq.com/articles/exclusive-spirit-vote-on-frontier-deal-to-proceed-vote-set-to-fail-sources-say
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By Anirban Sen and Greg Roumeliotis
July 27 (Reuters) - Spirit Airlines Inc SAVE.N will go ahead with a vote on its sale to Frontier Group Holdings Inc ULCC.O on Wednesday, with its shareholders expected to shoot it down, according to people familiar with the matter.
Frontier had declined to further raise its sweetened $2.7 billion bid, saying that Spirit should consider last month's revised merger agreement as its "last, best and final offer." JetBlue submitted a sweetened offer worth $3.7 billion this month.
Once the shareholder vote fails, Spirit would be forced to call off the deal with Frontier.
Spirit had previously pushed back the vote four times, hoping it could muster support for the Frontier deal. It will now continue discussions to sell itself to JetBlue Airways Corp JBLU.O, the sources said. The negotiations are progressing favorably, the sources added.
The sources, speaking on condition of anonymity, said that it remains possible that Frontier comes back with a new offer for Spirit.
Spirit, JetBlue and Frontier did not immediately respond to requests for comment.
The latest development represents a setback for Frontier and its chairman Bill Franke, who was instrumental in kicking off the talks between the two sides last year. Franke's airline-focused buyout firm Indigo Partners is a major shareholder in Frontier.
If talks with JetBlue continue to progress favorably, a deal could be announced in the coming weeks, the sources said.
So far, Spirit has rebuffed JetBlue, citing regulatory concerns over the company's Northeast Alliance (NEA) partnership with American Airlines AAL.O, which is already in the crosshairs of the Justice Department. JetBlue so far has refused to pull out of the NEA and instead offered other sweeteners like a higher break-up fee and route divestments.
Spirit could eventually choose not to do a deal with JetBlue and stay independent, the sources added.
Influential proxy advisory firm Institutional Shareholder Services (ISS) this month recommended that Spirit shareholders vote against the proposed deal with Frontier and said JetBlue's sweetened offer was "more favorable" for shareholders.
ISS recommends Spirit shareholders vote against Frontier offer
Spirit Airlines to delay vote on Frontier deal for fourth time
(Reporting by Anirban Sen and Greg Roumeliotis in New York; Editing by Chizu Nomiyama and Will Dunham)
((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So far, Spirit has rebuffed JetBlue, citing regulatory concerns over the company's Northeast Alliance (NEA) partnership with American Airlines AAL.O, which is already in the crosshairs of the Justice Department. By Anirban Sen and Greg Roumeliotis July 27 (Reuters) - Spirit Airlines Inc SAVE.N will go ahead with a vote on its sale to Frontier Group Holdings Inc ULCC.O on Wednesday, with its shareholders expected to shoot it down, according to people familiar with the matter. ISS recommends Spirit shareholders vote against Frontier offer Spirit Airlines to delay vote on Frontier deal for fourth time (Reporting by Anirban Sen and Greg Roumeliotis in New York; Editing by Chizu Nomiyama and Will Dunham) ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So far, Spirit has rebuffed JetBlue, citing regulatory concerns over the company's Northeast Alliance (NEA) partnership with American Airlines AAL.O, which is already in the crosshairs of the Justice Department. By Anirban Sen and Greg Roumeliotis July 27 (Reuters) - Spirit Airlines Inc SAVE.N will go ahead with a vote on its sale to Frontier Group Holdings Inc ULCC.O on Wednesday, with its shareholders expected to shoot it down, according to people familiar with the matter. Influential proxy advisory firm Institutional Shareholder Services (ISS) this month recommended that Spirit shareholders vote against the proposed deal with Frontier and said JetBlue's sweetened offer was "more favorable" for shareholders.
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So far, Spirit has rebuffed JetBlue, citing regulatory concerns over the company's Northeast Alliance (NEA) partnership with American Airlines AAL.O, which is already in the crosshairs of the Justice Department. By Anirban Sen and Greg Roumeliotis July 27 (Reuters) - Spirit Airlines Inc SAVE.N will go ahead with a vote on its sale to Frontier Group Holdings Inc ULCC.O on Wednesday, with its shareholders expected to shoot it down, according to people familiar with the matter. Influential proxy advisory firm Institutional Shareholder Services (ISS) this month recommended that Spirit shareholders vote against the proposed deal with Frontier and said JetBlue's sweetened offer was "more favorable" for shareholders.
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So far, Spirit has rebuffed JetBlue, citing regulatory concerns over the company's Northeast Alliance (NEA) partnership with American Airlines AAL.O, which is already in the crosshairs of the Justice Department. JetBlue submitted a sweetened offer worth $3.7 billion this month. Influential proxy advisory firm Institutional Shareholder Services (ISS) this month recommended that Spirit shareholders vote against the proposed deal with Frontier and said JetBlue's sweetened offer was "more favorable" for shareholders.
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3352.0
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2022-07-27 00:00:00 UTC
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ANALYSIS-Peru's mining execs 'lose faith' in gov't despite moderate shift
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AAL
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https://www.nasdaq.com/articles/analysis-perus-mining-execs-lose-faith-in-govt-despite-moderate-shift
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By Marco Aquino
LIMA, July 27 (Reuters) - Peruvian mining executives who oversee some of the world's largest copper mines are losing whatever slim thread of faith they may have had in left-wing President Pedro Castillo's ability to boost the sector, even after his shift away from early proposals to sharply raise taxes on the industry.
Mining executives interviewed by Reuters pointed to social protests by Castillo supporters that led to month-long production halts at two major copper mines. They said his failure to quell social uprisings also delayed a pipeline of new mining projects worth $53 billion at a time of high copper prices.
Castillo, who took office a year ago this week, was elected with overwhelming support in mining districts, as he pledged to redistribute Peru's mineral wealth. On the campaign trail, he accused corporations of "plundering" resources instead of sharing with local communities.
Since then, he has moderated his position toward the industry that accounts for 60% of the country's exports, appointing an orthodox economy ministry and meeting with executives both in Peru and on trips abroad.
Still, industry executives complained that he has not reined in supporters who protest that they still are not seeing a trickle-down effect from mining to their communities. Peru's mines are concentrated in remote Andean regions, among the country's poorest.
"Foreign investors have lost faith in Peru's ability to move mining projects forward," Southern Copper Corp SCCO.N Chief Financial Officer Raul Jacob told Reuters. The Grupo Mexico unit's Cuajone mine halted copper production for over a month due to a community protest.
Copper production in Peru, the world's No. 2 producer of the red metal, has fallen 10% so far this year from pre-pandemic levels, dragged down by Cuajone and MMG Ltd's 1208.HK Las Bambas, which also suspended operations.
Copper prices have fallen 30% since March but remain relatively high, boosting tax coffers under an administration eager to fund social programs.
Communities are "seeing a newly elected government giving them a supported platform to protest in a way where (they thought) there would be no repercussions," MMG Executive General Manager Troy Hey said in a call with analysts this week.
Still, at least three large mines in Peru are close to finalizing expansion plans, although long-term perspectives look cloudier.
Antamina, Peru's largest copper mine owned by Glencore GLEN.L and BHP BLT.L, is waiting on approval for a $1.6 billion expansion.
Newmont NEM.N is close to making a final decision on its $2.5 billion Yanacocha Sulfides project. President Tom Palmer this week called it an "exciting chapter in Newmont's long and profitable journey in Peru."
On Tuesday, the company said "The Sulfides project is expected to provide profitable production for years to come".
Las Bambas has received permits to build its new Chalcobamba pit on land once owned by the indigenous Huancuire community, but still faces stiff opposition from the local group.
'WE SHOULDN'T BE IMPROVISING'
Peru's coffers received a record amount in mining taxes in 2021 with the economy ministry expecting another record in 2022. The ministry expects higher metals prices to help fuel 3.6% GDP growth this year.
"Despite everything, the price of copper has sort of contained this political uncertainty," said Eduardo Jimenez of consulting firm Macroconsult.
But sustaining high mining tax revenue requires new projects as older mines run out. Anglo American AAL.L recently opened its $5.3 billion Quellaveco mine.
"For more than 20 years, we have had two or three projects (like Quellaveco) being developed simultaneously in Peru," said Jacob, who is also the President of Peru's mining chamber.
"But we now don't see new ones, at least for now," he added.
Southern Copper itself has delayed its controversial $1.4 billion Tia Maria site due to community opposition.
"To get (mining projects) up and running, the government should generate stability, fast-track permits and beef up conflict-resolution offices," Compania de Minas Buenaventura BUEv.LM Chairman Roque Benavides told Reuters.
Peru's top conflict-resolution office has cycled through four different heads under Castillo, as has the Mining Ministry itself. Current minister Alessandra Herrera is in her second stint.
"We shouldn't be improvising in the sector," said Victor Gobitz, Antamina's CEO.
Castillo also tried and failed to raise taxes on the mining sector, due to significant opposition from the industry.
"Paying more in taxes means putting new projects at risk," Gobitz added.
(Reporting by Marco Aquino; Editing by Marcelo Rochabrun, Christian Plumb and David Gregorio)
((marcelo.rochabrun@thomsonreuters.com; +55 11 5644 7768;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Anglo American AAL.L recently opened its $5.3 billion Quellaveco mine. "Foreign investors have lost faith in Peru's ability to move mining projects forward," Southern Copper Corp SCCO.N Chief Financial Officer Raul Jacob told Reuters. Communities are "seeing a newly elected government giving them a supported platform to protest in a way where (they thought) there would be no repercussions," MMG Executive General Manager Troy Hey said in a call with analysts this week.
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Anglo American AAL.L recently opened its $5.3 billion Quellaveco mine. "Foreign investors have lost faith in Peru's ability to move mining projects forward," Southern Copper Corp SCCO.N Chief Financial Officer Raul Jacob told Reuters. Antamina, Peru's largest copper mine owned by Glencore GLEN.L and BHP BLT.L, is waiting on approval for a $1.6 billion expansion.
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Anglo American AAL.L recently opened its $5.3 billion Quellaveco mine. By Marco Aquino LIMA, July 27 (Reuters) - Peruvian mining executives who oversee some of the world's largest copper mines are losing whatever slim thread of faith they may have had in left-wing President Pedro Castillo's ability to boost the sector, even after his shift away from early proposals to sharply raise taxes on the industry. Mining executives interviewed by Reuters pointed to social protests by Castillo supporters that led to month-long production halts at two major copper mines.
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Anglo American AAL.L recently opened its $5.3 billion Quellaveco mine. Communities are "seeing a newly elected government giving them a supported platform to protest in a way where (they thought) there would be no repercussions," MMG Executive General Manager Troy Hey said in a call with analysts this week. "For more than 20 years, we have had two or three projects (like Quellaveco) being developed simultaneously in Peru," said Jacob, who is also the President of Peru's mining chamber.
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3353.0
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2022-07-26 00:00:00 UTC
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If Warren Buffett Isn't Afraid to Cut His Losses, Then You Shouldn't Be Either
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AAL
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https://www.nasdaq.com/articles/if-warren-buffett-isnt-afraid-to-cut-his-losses-then-you-shouldnt-be-either
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nan
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Although it isn't a competition, many would consider Warren Buffett the Michael Jordan of investing, and for good reason. The Oracle of Omaha has invested his way to a $100 billion fortune (it was $120 billion in April 2022). But just as Michael Jordan has taken losses, so has Warren Buffett. Even with all the success Buffett has had in investing, he's made many mistakes along the way.
When you invest in a stock, your plan should always be to hold it long term. Buffett himself once said, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." However, there may come a point where holding onto a failing stock may do you more harm than good, and you're better off cutting your losses before they get worse.
Image source: Getty Images.
Going against conventional wisdom
It's not always easy to spot a failing business. If it was, nobody would invest in (or hold onto) them. However, according to Buffett, there are warning signs, including when a business is getting bad results while being run by great management. His position is that great management will never win over bad economics. Buffett's company, Berkshire Hathaway, once owned a stake in all four major airlines:
Delta Air Lines (11%)
American Airlines (10%)
Southwest Airlines (10%)
United Airlines (9%)
Berkshire had paid between $7 billion and $8 billion for its stakes in the companies beginning in 2016, but it sold them for far less than that in 2020. Buffett himself took the blame, saying he was the one who made the decision. This short ownership stint goes against Buffett's traditional philosophy of holding onto stocks long term, but it shows how sometimes going against conventional wisdom is a better business decision.
In the past five years, Delta stock has declined over 40%, American Airlines is down almost 75%, Southwest fell over 33%, and United has shed 49%. Does that mean airline stocks won't bounce back? Of course not; they may make a great comeback, but that also doesn't make them great investments either.
It's always good to keep in mind the opportunity cost of money, which is the value you're missing out on by having money in one investment instead of another. There's no need to stay invested in a stagnant business when there are many other options likely to produce superior returns.
Selling can be a blessing in disguise
If you've truly lost hope in the potential of one of your investments, there's no need to delay the inevitable. Having it in your portfolio can do more harm than good the longer you hold onto it. Selling a particular stock at a loss can have some benefits too because of tax-loss harvesting.
Just like capital gains increase your tax bill, capital losses can lower it. Any capital losses, up to $3,000, can either offset any capital gains you have for the year or lower your taxable income.
If you're going to cut your losses short -- which sometimes is the best option -- you might as well get some tax relief for doing so.
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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Delta Air Lines and Southwest Airlines and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, according to Buffett, there are warning signs, including when a business is getting bad results while being run by great management. This short ownership stint goes against Buffett's traditional philosophy of holding onto stocks long term, but it shows how sometimes going against conventional wisdom is a better business decision. In the past five years, Delta stock has declined over 40%, American Airlines is down almost 75%, Southwest fell over 33%, and United has shed 49%.
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Buffett's company, Berkshire Hathaway, once owned a stake in all four major airlines: Delta Air Lines (11%) American Airlines (10%) Southwest Airlines (10%) United Airlines (9%) Berkshire had paid between $7 billion and $8 billion for its stakes in the companies beginning in 2016, but it sold them for far less than that in 2020. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Delta Air Lines and Southwest Airlines and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares).
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Buffett's company, Berkshire Hathaway, once owned a stake in all four major airlines: Delta Air Lines (11%) American Airlines (10%) Southwest Airlines (10%) United Airlines (9%) Berkshire had paid between $7 billion and $8 billion for its stakes in the companies beginning in 2016, but it sold them for far less than that in 2020. See the 10 stocks Stock Advisor returns as of 2/14/21 Stefon Walters has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines and Southwest Airlines and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares).
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Buffett's company, Berkshire Hathaway, once owned a stake in all four major airlines: Delta Air Lines (11%) American Airlines (10%) Southwest Airlines (10%) United Airlines (9%) Berkshire had paid between $7 billion and $8 billion for its stakes in the companies beginning in 2016, but it sold them for far less than that in 2020. * They just revealed what they believe are the ten best stocks for investors to buy right now… and Walmart wasn't one of them! The Motley Fool has positions in and recommends Berkshire Hathaway (B shares).
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3354.0
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2022-07-26 00:00:00 UTC
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American Airlines’ Website Traffic Hinted at Upbeat Q2 Results
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AAL
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https://www.nasdaq.com/articles/american-airlines-website-traffic-hinted-at-upbeat-q2-results
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nan
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nan
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Airline major American Airlines, Inc. (NASDAQ: AAL) recently reported impressive results for the second quarter. However, the upbeat results should not have come as a surprise to users who have been keeping a keen eye on the company’s website traffic, through TipRanks’ Website Traffic Tool.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into the airline giant’s performance this quarter and provides a hint of its future prospects.
According to the tool, the American Airlines website recorded a 40.07% monthly rise in global visits in June, compared to the same period last year. Moreover, year-to-date, American Airlines website traffic increased by 30.50%, compared to the previous year.
The spike in website visits hints at the fact that even in the face of an impending recession, demand for the company’s services remains robust.
A Look at the Q2 Numbers
American Airlines’ revenue jumped 79.5% from the prior year to $13.42 billion. Moreover, the company reported adjusted earnings per share (EPS) of $0.76, which compares favorably to a loss of $1.69 per share reported in the prior year.
Meanwhile, the company and its partners flew more than 500,000 flights in the quarter. This represents an increase of 8% from the prior year. Further, the load factor also improved from 77% in the previous year to 87%.
What is the Company Looking Forward to?
In the third quarter, American Airlines expects revenue to be higher by 10% to 12%. Moreover, the increased revenues are expected to be on a lower capacity of 8% to 10%.
Investors Remain Optimistic About American Airlines Stock
TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on AAL. Further, 12.5% of the top portfolios tracked by TipRanks, increased their exposure to AAL stock over the past 30 days.
Wall Street’s Take
Overall, the consensus among analysts is a Hold based on six Holds and two Sells. The AAL average price target of $15.29 implies upside potential of 11.2% from current levels. Shares have declined 37.7% over the past year.
Key Takeaways
The rebound in air traffic and higher bookings act as positive signs for the airline industry. Notably, American Airlines’ solid website traffic growth and the ensuing impressive results, along with higher revenue guidance for the third quarter, allude to the fact that the company remains on a strong footing.
However, prevailing economic headwinds and an impending recession can derail this growth.
Read full Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airline major American Airlines, Inc. (NASDAQ: AAL) recently reported impressive results for the second quarter. Investors Remain Optimistic About American Airlines Stock TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on AAL. Further, 12.5% of the top portfolios tracked by TipRanks, increased their exposure to AAL stock over the past 30 days.
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Airline major American Airlines, Inc. (NASDAQ: AAL) recently reported impressive results for the second quarter. Investors Remain Optimistic About American Airlines Stock TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on AAL. Further, 12.5% of the top portfolios tracked by TipRanks, increased their exposure to AAL stock over the past 30 days.
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Airline major American Airlines, Inc. (NASDAQ: AAL) recently reported impressive results for the second quarter. Investors Remain Optimistic About American Airlines Stock TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on AAL. Further, 12.5% of the top portfolios tracked by TipRanks, increased their exposure to AAL stock over the past 30 days.
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Airline major American Airlines, Inc. (NASDAQ: AAL) recently reported impressive results for the second quarter. Investors Remain Optimistic About American Airlines Stock TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on AAL. Further, 12.5% of the top portfolios tracked by TipRanks, increased their exposure to AAL stock over the past 30 days.
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3355.0
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2022-07-26 00:00:00 UTC
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GCMD to start $18 mln global biofuels bunkering pilot project
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AAL
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https://www.nasdaq.com/articles/gcmd-to-start-%2418-mln-global-biofuels-bunkering-pilot-project
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nan
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nan
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Adds company involved in pilot project
SINGAPORE, July 26 (Reuters) - The Global Centre for Maritime Decarbonisation (GCMD) is working with 18 companies to launch an $18 million biofuels bunkering pilot project, the organisation said on Tuesday.
The pilot will start on Aug. 1 and is expected to take 12 to 18 months to complete, with trials at the ports of Singapore, Rotterdam and Houston.
Companies involved in the pilot will include major miners and shipowners, such as Anglo American AAL.L, BHP Singapore, CMA CGM SA, Hapag-Lloyd AG HLAG.DE and Ocean Network Express.
The pilot will start with the use of existing biofuels including hydrotreated vegetable oil (HVO) and fatty acid methyl esters (FAME).
These will be blended with very low sulphur fuel oil (VLSFO), high-sulphur fuel oil or marine gas oil, in blends which will have up to 30% biofuels (B30).
The pilot can address uncertainties around how these fuels work in practice, said Unni Einemo, director of the International Bunker Industry Association.
GCMD will be the first to trial and assess the use of crude algae oil (CAO) as a marine fuel in this pilot. Unlike HVO and FAME, the use of CAO for bunkering has yet to be tested, while its supply chain is also yet to be established.
The maritime industry has been gearing up with the purchase and use of green fuels to reduce greenhouse gas emissions ahead of the International Maritime Organisation's 2030 and 2050 decarbonisation targets.
The International Maritime Organisation earlier in June lowered regulatory hurdles for adopting biofuels by eliminating the need to apply for waivers to use B30 fuel blends, according to its website.
GCMD was formed in August 2021 with funding from Singapore's Maritime and Port Authority and six founding industry partners with the aim of helping the maritime industry eliminate greenhouse gas emissions.
(Reporting by Jeslyn Lerh; Editing by Shounak Dasgupta)
((Jeslyn.Lerh@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Companies involved in the pilot will include major miners and shipowners, such as Anglo American AAL.L, BHP Singapore, CMA CGM SA, Hapag-Lloyd AG HLAG.DE and Ocean Network Express. The pilot will start with the use of existing biofuels including hydrotreated vegetable oil (HVO) and fatty acid methyl esters (FAME). The International Maritime Organisation earlier in June lowered regulatory hurdles for adopting biofuels by eliminating the need to apply for waivers to use B30 fuel blends, according to its website.
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Companies involved in the pilot will include major miners and shipowners, such as Anglo American AAL.L, BHP Singapore, CMA CGM SA, Hapag-Lloyd AG HLAG.DE and Ocean Network Express. These will be blended with very low sulphur fuel oil (VLSFO), high-sulphur fuel oil or marine gas oil, in blends which will have up to 30% biofuels (B30). The maritime industry has been gearing up with the purchase and use of green fuels to reduce greenhouse gas emissions ahead of the International Maritime Organisation's 2030 and 2050 decarbonisation targets.
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Companies involved in the pilot will include major miners and shipowners, such as Anglo American AAL.L, BHP Singapore, CMA CGM SA, Hapag-Lloyd AG HLAG.DE and Ocean Network Express. Adds company involved in pilot project SINGAPORE, July 26 (Reuters) - The Global Centre for Maritime Decarbonisation (GCMD) is working with 18 companies to launch an $18 million biofuels bunkering pilot project, the organisation said on Tuesday. These will be blended with very low sulphur fuel oil (VLSFO), high-sulphur fuel oil or marine gas oil, in blends which will have up to 30% biofuels (B30).
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Companies involved in the pilot will include major miners and shipowners, such as Anglo American AAL.L, BHP Singapore, CMA CGM SA, Hapag-Lloyd AG HLAG.DE and Ocean Network Express. Adds company involved in pilot project SINGAPORE, July 26 (Reuters) - The Global Centre for Maritime Decarbonisation (GCMD) is working with 18 companies to launch an $18 million biofuels bunkering pilot project, the organisation said on Tuesday. These will be blended with very low sulphur fuel oil (VLSFO), high-sulphur fuel oil or marine gas oil, in blends which will have up to 30% biofuels (B30).
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3356.0
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2022-07-26 00:00:00 UTC
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S.Africa's Kumba Iron Ore half-year profit falls 50%
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AAL
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https://www.nasdaq.com/articles/s.africas-kumba-iron-ore-half-year-profit-falls-50
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nan
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nan
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Adds details
July 26 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 50% decline in half-year profit, mainly attributed to lower iron ore prices.
Kumba's headline earnings per share (HEPS) - the main profit measure for South African companies - stood at 36.13 rand ($2.16) for the six months to June 30, compared with 72.82 rand last year.
Production at Kumba's two mines declined 13% to 17.8 million tonnes, largely due to excessive rains which impacted mining operations in the Northern Cape during the first quarter.
Kumba, which is 70% owned by Anglo American Plc AAL.L, declared an interim dividend of 28.70 rand.
($1 = 16.7401 rand)
(Reporting by Nelson Banya; Editing by Christopher Cushing and Subhranshu Sahu)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Kumba, which is 70% owned by Anglo American Plc AAL.L, declared an interim dividend of 28.70 rand. Adds details July 26 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 50% decline in half-year profit, mainly attributed to lower iron ore prices. ($1 = 16.7401 rand) (Reporting by Nelson Banya; Editing by Christopher Cushing and Subhranshu Sahu) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Kumba, which is 70% owned by Anglo American Plc AAL.L, declared an interim dividend of 28.70 rand. Adds details July 26 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 50% decline in half-year profit, mainly attributed to lower iron ore prices. Production at Kumba's two mines declined 13% to 17.8 million tonnes, largely due to excessive rains which impacted mining operations in the Northern Cape during the first quarter.
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Kumba, which is 70% owned by Anglo American Plc AAL.L, declared an interim dividend of 28.70 rand. Adds details July 26 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 50% decline in half-year profit, mainly attributed to lower iron ore prices. Kumba's headline earnings per share (HEPS) - the main profit measure for South African companies - stood at 36.13 rand ($2.16) for the six months to June 30, compared with 72.82 rand last year.
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Kumba, which is 70% owned by Anglo American Plc AAL.L, declared an interim dividend of 28.70 rand. Adds details July 26 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 50% decline in half-year profit, mainly attributed to lower iron ore prices. Kumba's headline earnings per share (HEPS) - the main profit measure for South African companies - stood at 36.13 rand ($2.16) for the six months to June 30, compared with 72.82 rand last year.
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3357.0
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2022-07-26 00:00:00 UTC
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S.Africa's Kumba Iron Ore half-year profit down 50%
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AAL
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https://www.nasdaq.com/articles/s.africas-kumba-iron-ore-half-year-profit-down-50
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nan
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nan
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July 26 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 50% decline in half-year profit, mainly attributed to lower iron ore prices.
Kumba's headline earnings per share (HEPS) - the main profit measure for South African companies - was 36.13 rand ($2.16) for the six months to June 30, compared with 72.82 rand last year.
($1 = 16.7401 rand)
(Reporting by Nelson Banya; Editing by Christopher Cushing)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 26 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 50% decline in half-year profit, mainly attributed to lower iron ore prices. Kumba's headline earnings per share (HEPS) - the main profit measure for South African companies - was 36.13 rand ($2.16) for the six months to June 30, compared with 72.82 rand last year. ($1 = 16.7401 rand) (Reporting by Nelson Banya; Editing by Christopher Cushing) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 26 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 50% decline in half-year profit, mainly attributed to lower iron ore prices. Kumba's headline earnings per share (HEPS) - the main profit measure for South African companies - was 36.13 rand ($2.16) for the six months to June 30, compared with 72.82 rand last year. ($1 = 16.7401 rand) (Reporting by Nelson Banya; Editing by Christopher Cushing) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 26 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 50% decline in half-year profit, mainly attributed to lower iron ore prices. Kumba's headline earnings per share (HEPS) - the main profit measure for South African companies - was 36.13 rand ($2.16) for the six months to June 30, compared with 72.82 rand last year. ($1 = 16.7401 rand) (Reporting by Nelson Banya; Editing by Christopher Cushing) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 26 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 50% decline in half-year profit, mainly attributed to lower iron ore prices. Kumba's headline earnings per share (HEPS) - the main profit measure for South African companies - was 36.13 rand ($2.16) for the six months to June 30, compared with 72.82 rand last year. ($1 = 16.7401 rand) (Reporting by Nelson Banya; Editing by Christopher Cushing) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3358.0
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2022-07-25 00:00:00 UTC
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The Zacks Analyst Blog Highlights United Airlines, American Airlines and Alaska Air Group and Delta Air Lines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-united-airlines-american-airlines-and-alaska-air-group
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nan
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nan
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For Immediate Release
Chicago, IL – July 25, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: United Airlines UAL, American Airlines AAL and Alaska Air Group ALK and Delta Air Lines DAL.
Here are highlights from Friday’s Analyst Blog:
Airline Stock Roundup: Q2 Earnings Season Edition
In the past week, sectoral heavyweights United Airlines, American Airlines and Alaska Air Group reported earnings for second-quarter 2022. Even though robust air-travel demand boosted the top lines of these airline operators, high fuel costs limited bottom-line growth. UAL and AAL reported quarterly profits for the first time since the inception of the pandemic.
Delta Air Lines announced plans to expand and further modernize its fleet at the Farnborough International Airshow. DAL was also in the news recently when it kickstarted the second-quarter 2022 earnings season for airlines on Jul 13. The story was reported in detail in the previous week's write up.
Recap of the Latest Top Stories
1. American Airlines' second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. Escalated operating expenses induced the earnings miss. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
Operating revenues of $13,422 million skyrocketed 79.5% year over year and also surpassed the Zacks Consensus Estimate of $13,409.8 million. This massive year-over-year jump reflects upbeat air-travel demand. AAL, currently carrying a Zacks Rank #3 (Hold), exited the quarter with $15.6 billion of total available liquidity.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
2. United Airlines' second-quarter 2022 earnings (excluding 43 cents from non-recurring items) of $1.43 per share fell short of the Zacks Consensus Estimate of $1.86. Escalated operating expenses induced the earnings miss. Consequently, shares declined in after-market trading on Jul 20. In the year-ago quarter, UAL incurred a loss of $3.91 per share when air-travel demand was not as buoyant as in the current scenario. The second quarter of 2022 was the first profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,112 million beat the Zacks Consensus Estimate of $12,033.7 million. Revenues increased more than 100% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 6.2% from the second-quarter 2019 (pre-coronavirus) levels. For the third quarter, United Airlines expects capacity to decline around 11% from the third-quarter level of 2019.
3. At Alaska Air, quarterly earnings of $2.19 per share (excluding $1.10 from non-recurring items) beat the Zacks Consensus Estimate of $1.94. The bottom line surged more than 100% year over year.
Operating revenues of $2,658 million outperformed the Zacks Consensus Estimate of $2,590.3 million. The top line surged 74% year over year with passenger revenues accounting for 90.9% of the top line and soaring 79% owing to continued recovery in air-travel demand. Passenger revenues totaled $2,418 million in the reported quarter.
On a year-over-year basis, cargo and other revenues rose 14% to $65 million. Mileage plan other revenues grew 48% to $175 million. Alaska Air expects third-quarter 2022 total revenues to increase 16-19% from the third-quarter 2019 actuals.
4. Delta ordered 12 A220-300 aircraft from European planemaker Airbus. As a result, DAL's firm order for A220s increased to 107 (45 A220-100s and 62 A220-300s).
Per Mahendra Nair, S.V.P., Fleet & TechOps Supply Chain, Delta, "The A220-300 is economical, efficient and delivers superior performance. These additional aircraft in the A220 Family are an excellent investment for our customers and employees and will be fundamental as we work toward a more sustainable future for air travel."
The A220s will be powered by the highly efficient Pratt & Whitney GTF engines. DAL took delivery of its first Airbus A220 in October 2018. As of Jun 30, 2022, DAL operated a fleet of 388 Airbus planes, including 56 A220s, 249 A320 family planes, 57 A330s and 26 A350-900s.
Performance
Most airline stocks traded in the green over the past five trading days. The NYSE ARCA Airline Index increased 2.8% to $58.91. Over the course of the past six months, the NYSE ARCA Airline Index plummeted 25.8%.
What's Next in the Airline Space?
The second-quarter earnings reports from other carriers are scheduled to be out in the coming days.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: United Airlines UAL, American Airlines AAL and Alaska Air Group ALK and Delta Air Lines DAL. UAL and AAL reported quarterly profits for the first time since the inception of the pandemic. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
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Stocks recently featured in the blog include: United Airlines UAL, American Airlines AAL and Alaska Air Group ALK and Delta Air Lines DAL. UAL and AAL reported quarterly profits for the first time since the inception of the pandemic. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
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Stocks recently featured in the blog include: United Airlines UAL, American Airlines AAL and Alaska Air Group ALK and Delta Air Lines DAL. UAL and AAL reported quarterly profits for the first time since the inception of the pandemic. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
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Stocks recently featured in the blog include: United Airlines UAL, American Airlines AAL and Alaska Air Group ALK and Delta Air Lines DAL. UAL and AAL reported quarterly profits for the first time since the inception of the pandemic. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
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3359.0
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2022-07-25 00:00:00 UTC
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South Africa's Amplats reports 43% drop in half-year profit
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AAL
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https://www.nasdaq.com/articles/south-africas-amplats-reports-43-drop-in-half-year-profit
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nan
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nan
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July 25 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday reported a 43% fall in half-year profit, due to weaker platinum group metal (PGM) prices and lower volumes compared to record sales a year ago when the global economy started to emerge from Covid-19 lockdowns.
Amplats' headline earnings per share (HEPS) - the main profit measure in South Africa - fell to 101.4 rand ($6.02) for the half-year that ended June 30, from 176.47 rand a year ago.
($1 = 16.8452 rand)
(Reporting by Nelson Banya, Editing by Helen Reid)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 25 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday reported a 43% fall in half-year profit, due to weaker platinum group metal (PGM) prices and lower volumes compared to record sales a year ago when the global economy started to emerge from Covid-19 lockdowns. Amplats' headline earnings per share (HEPS) - the main profit measure in South Africa - fell to 101.4 rand ($6.02) for the half-year that ended June 30, from 176.47 rand a year ago. ($1 = 16.8452 rand) (Reporting by Nelson Banya, Editing by Helen Reid) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 25 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday reported a 43% fall in half-year profit, due to weaker platinum group metal (PGM) prices and lower volumes compared to record sales a year ago when the global economy started to emerge from Covid-19 lockdowns. Amplats' headline earnings per share (HEPS) - the main profit measure in South Africa - fell to 101.4 rand ($6.02) for the half-year that ended June 30, from 176.47 rand a year ago. ($1 = 16.8452 rand) (Reporting by Nelson Banya, Editing by Helen Reid) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 25 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday reported a 43% fall in half-year profit, due to weaker platinum group metal (PGM) prices and lower volumes compared to record sales a year ago when the global economy started to emerge from Covid-19 lockdowns. Amplats' headline earnings per share (HEPS) - the main profit measure in South Africa - fell to 101.4 rand ($6.02) for the half-year that ended June 30, from 176.47 rand a year ago. ($1 = 16.8452 rand) (Reporting by Nelson Banya, Editing by Helen Reid) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 25 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday reported a 43% fall in half-year profit, due to weaker platinum group metal (PGM) prices and lower volumes compared to record sales a year ago when the global economy started to emerge from Covid-19 lockdowns. Amplats' headline earnings per share (HEPS) - the main profit measure in South Africa - fell to 101.4 rand ($6.02) for the half-year that ended June 30, from 176.47 rand a year ago. ($1 = 16.8452 rand) (Reporting by Nelson Banya, Editing by Helen Reid) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3360.0
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2022-07-25 00:00:00 UTC
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American Airlines: More Profitability to Come, Favorable Industry Outlook
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AAL
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https://www.nasdaq.com/articles/american-airlines%3A-more-profitability-to-come-favorable-industry-outlook
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nan
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nan
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American Airlines (AAL) reported its second-quarter earnings on July 21. Its results showed a massive bump in sales from the prior-year period despite inflation, network disruptions, and labor shortages. Moreover, it expects to post a profit during the third quarter. Hence, due to its profitability prospects and the broad-based recovery in travel demand, we are bullish on AAL stock.
American Airlines Operates in a Risky Industry
Airline investors have been through a lot in recent years. First, the industry witnessed a significant fall in revenue during the peak of the pandemic when travel demand ceased to exist. Then, this year was supposed to kickstart a rebound, but macroeconomic instability has brought up more complications than imagined.
Inflation, in particular, has resulted in high fuel and labor costs, leading to lower profit margins for airline companies. Moreover, the same issue has chipped away at household budgets, which means fewer consumers are willing to book flights.
Airline stocks plummeted soon after the June inflation data was published, which showed higher-than-expected core inflation. Furthermore, American Airlines' stock fell by more than 3% on June 13 when its competitor Delta Airlines (DAL) missed analysts' earnings expectations for its second quarter.
However, it isn't all that bad for American Airlines. A much stronger rebound in travel could potentially materialize in the upcoming quarters and help the company generate more revenue.
AAL's Q2 Saw Profitability and a Strong Recovery
American Airlines' second quarter results weren't perfect, but they were positive overall. Non-GAAP earnings per share of $0.76 missed estimates by $0.01, but sales beat estimates by $20 million. The colossal ~80% year-over-year jump in sales to $13.42 billion was a record for the airliner.
Additionally, AAL's EPS was the first positive EPS figure it had reported in close to nine quarters.
The company's CEO, Robert Isom, stated, "We are very pleased to report a quarterly profit, excluding net special items, for the first time since the start of the pandemic, driven by the strong demand environment and the hard work of our team."
Based on its robust second quarter, the carrier expects third-quarter sales to surpass 10% to 12% of pre-pandemic levels. Moreover, these results are based on 8% to 10% lower capacity. Also, the company made $1 billion in debt and finance payments during the second quarter.
It narrowed down its debt by a hefty $5.2 billion from its peak in mid-2021. As we advance, it expects to cut its debt by $15 billion by the conclusion of 2025.
Strong Industry Outlook Ahead
The International Air Transport Association (IATA) expects traveler numbers to rise to four billion by the end of 2024, which would finally surpass pre-pandemic levels.
Furthermore, the IATA said that traveler numbers will increase to 83% of 2019 numbers in 2022, 94% in 2023, and a whopping 103% in 2024. This is good news for airline stockholders because their holdings should bear fruit in the not-so-distant future.
The airline industry probably needs at least a year to recover from the pandemic, and, quite frankly, a lot can go wrong in the meantime. However, American Airlines looks like a solid candidate considering its strong performances of late. Moreover, increasing air travel and the company's pricing power will help it offset higher fuel costs and labor costs. Hence, AAL finds itself in a relatively solid position.
Wall Street's Take on American Airlines Stock
Turning to Wall Street, AAL stock maintains a Hold consensus rating. Out of eight total analyst ratings, zero Buys, six Holds, and two Sell ratings were given over the past three months.
The average AAL price target is $15.29, implying 11.2% upside potential. Analyst price targets range from a low of $13 per share to a high of $18 per share.
Conclusion: AAL's Encouraging Outlook Gives It Life
The airline industry is dealing with plenty of issues at this time. Labor shortages, high fuel costs, and recession fears have left the market feeling pessimistic. However, American Airlines' encouraging outlook for the future, pent-up travel demand, and its track record of resilience over the years will likely steer the business out of harm's way.
It seems that the airliner can effectively tackle future headwinds. Moreover, its solid second quarter results have shown that it's likely an incredible investment for the long haul. It should turn a profit in the upcoming quarter, which could potentially spark a rally in its share price. For long-term investors, it's imperative to monitor if AAL succeeds in reducing its debt.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) reported its second-quarter earnings on July 21. Hence, due to its profitability prospects and the broad-based recovery in travel demand, we are bullish on AAL stock. AAL's Q2 Saw Profitability and a Strong Recovery American Airlines' second quarter results weren't perfect, but they were positive overall.
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AAL's Q2 Saw Profitability and a Strong Recovery American Airlines' second quarter results weren't perfect, but they were positive overall. Wall Street's Take on American Airlines Stock Turning to Wall Street, AAL stock maintains a Hold consensus rating. American Airlines (AAL) reported its second-quarter earnings on July 21.
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AAL's Q2 Saw Profitability and a Strong Recovery American Airlines' second quarter results weren't perfect, but they were positive overall. American Airlines (AAL) reported its second-quarter earnings on July 21. Hence, due to its profitability prospects and the broad-based recovery in travel demand, we are bullish on AAL stock.
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AAL's Q2 Saw Profitability and a Strong Recovery American Airlines' second quarter results weren't perfect, but they were positive overall. American Airlines (AAL) reported its second-quarter earnings on July 21. Hence, due to its profitability prospects and the broad-based recovery in travel demand, we are bullish on AAL stock.
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3361.0
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2022-07-22 00:00:00 UTC
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Airline Stock Roundup: UAL, ALK & AAL's Q2 Earnings, DAL in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-ual-alk-aals-q2-earnings-dal-in-focus
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nan
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nan
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In the past week, sectoral heavyweights United Airlines UAL, American Airlines AAL and Alaska Air Group ALK reported earnings for second-quarter 2022. Even though robust air-travel demand boosted the top lines of these airline operators, high fuel costs limited bottom-line growth. UAL and AAL reported quarterly profits for the first time since the inception of the pandemic.
Delta Air Lines DAL announced plans to expand and further modernize its fleet at the Farnborough International Airshow. DAL was also in the news recently when it kickstarted the second-quarter 2022 earnings season for airlines on Jul 13. The story was reported in detail in the previous week’s write up.
Recap of the Latest Top Stories
1. American Airlines’ second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. Escalated operating expenses induced the earnings miss. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario. Operating revenues of $13,422 million skyrocketed 79.5% year over year and also surpassed the Zacks Consensus Estimate of $13,409.8 million. This massive year-over-year jump reflects upbeat air-travel demand. AAL, currently carrying a Zacks Rank #3 (Hold), exited the quarter with $15.6 billion of total available liquidity.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. United Airlines’ second-quarter 2022 earnings (excluding 43 cents from non-recurring items) of $1.43 per share fell short of the Zacks Consensus Estimate of $1.86. Escalated operating expenses induced the earnings miss. Consequently, shares declined in after-market trading on Jul 20. In the year-ago quarter, UAL incurred a loss of $3.91 per share when air-travel demand was not as buoyant as in the current scenario. The second quarter of 2022 was the first profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,112 million beat the Zacks Consensus Estimate of $12,033.7 million. Revenues increased more than 100% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 6.2% from the second-quarter 2019 (pre-coronavirus) levels. For the third quarter, United Airlines expects capacity to decline around 11% from the third-quarter level of 2019.
3. At Alaska Air, quarterly earnings of $2.19 per share (excluding $1.10 from non-recurring items) beat the Zacks Consensus Estimate of $1.94. The bottom line surged more than 100% year over year.
Operating revenues of $2,658 million outperformed the Zacks Consensus Estimate of $2,590.3 million. The top line surged 74% year over year with passenger revenues accounting for 90.9% of the top line and soaring 79% owing to continued recovery in air-travel demand. Passenger revenues totaled $2,418 million in the reported quarter. On a year-over-year basis, cargo and other revenues rose 14% to $65 million. Mileage plan other revenues grew 48% to $175 million. Alaska Air expects third-quarter 2022 total revenues to increase 16-19% from the third-quarter 2019 actuals.
4. Delta ordered 12 A220-300 aircraft from European planemaker Airbus. As a result, DAL's firm order for A220s increases to 107 (45 A220-100s and 62 A220-300s).
Per Mahendra Nair, S.V.P., Fleet & TechOps Supply Chain, Delta, “The A220-300 is economical, efficient and delivers superior performance. These additional aircraft in the A220 Family are an excellent investment for our customers and employees and will be fundamental as we work toward a more sustainable future for air travel.”
The A220s will be powered by the highly efficient Pratt & Whitney GTF engines. DAL took delivery of its first Airbus A220 in October 2018. As of Jun 30, 2022, DAL operated a fleet of 388 Airbus planes, including 56 A220s, 249 A320 family planes, 57 A330s and 26 A350-900s.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that most airline stocks traded in the green over the five trading days. The NYSE ARCA Airline Index increased 2.8% to $58.91. Over the course of the past six months, the NYSE ARCA Airline Index plummeted 25.8%.
What's Next in the Airline Space?
The second-quarter earnings reports from other carriers are scheduled to be out in the coming days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past week, sectoral heavyweights United Airlines UAL, American Airlines AAL and Alaska Air Group ALK reported earnings for second-quarter 2022. UAL and AAL reported quarterly profits for the first time since the inception of the pandemic. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
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In the past week, sectoral heavyweights United Airlines UAL, American Airlines AAL and Alaska Air Group ALK reported earnings for second-quarter 2022. UAL and AAL reported quarterly profits for the first time since the inception of the pandemic. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
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In the past week, sectoral heavyweights United Airlines UAL, American Airlines AAL and Alaska Air Group ALK reported earnings for second-quarter 2022. UAL and AAL reported quarterly profits for the first time since the inception of the pandemic. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
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In the past week, sectoral heavyweights United Airlines UAL, American Airlines AAL and Alaska Air Group ALK reported earnings for second-quarter 2022. UAL and AAL reported quarterly profits for the first time since the inception of the pandemic. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
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3362.0
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2022-07-22 00:00:00 UTC
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Company News for Jul 22, 2022
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AAL
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https://www.nasdaq.com/articles/company-news-for-jul-22-2022
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nan
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nan
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Shares of Philip Morris International Inc. PM gained 4.2% after the company reported second-quarter 2022 earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.24 per share.
American Airlines Group Inc.’s AAL shares plummeted 7.4% after the company reported second-quarter 2022 earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.79 cents.
Shares of Nucor Corporation NUE jumped 9.2% after the company reported second-quarter earnings of $9.67 per share, outpacing the Zacks Consensus Estimate of $8.91 per share.
Domino's Pizza, Inc.’s DPZ shares declined 1.3% after the company reported second-quarter fiscal 2022 earnings of $2.82 per share, missing the Zacks Consensus Estimate of $2.88 per share.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nucor Corporation (NUE): Free Stock Analysis Report
Domino's Pizza Inc (DPZ): Free Stock Analysis Report
Philip Morris International Inc. (PM): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines Group Inc.’s AAL shares plummeted 7.4% after the company reported second-quarter 2022 earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.79 cents. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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American Airlines Group Inc.’s AAL shares plummeted 7.4% after the company reported second-quarter 2022 earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.79 cents. American Airlines Group Inc. (AAL): Free Stock Analysis Report Shares of Philip Morris International Inc. PM gained 4.2% after the company reported second-quarter 2022 earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.24 per share.
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American Airlines Group Inc.’s AAL shares plummeted 7.4% after the company reported second-quarter 2022 earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.79 cents. American Airlines Group Inc. (AAL): Free Stock Analysis Report Shares of Philip Morris International Inc. PM gained 4.2% after the company reported second-quarter 2022 earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.24 per share.
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American Airlines Group Inc.’s AAL shares plummeted 7.4% after the company reported second-quarter 2022 earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.79 cents. American Airlines Group Inc. (AAL): Free Stock Analysis Report This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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3363.0
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2022-07-21 00:00:00 UTC
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US STOCKS-Tesla keeps Nasdaq afloat, AT&T forecast weighs on S&P 500
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AAL
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https://www.nasdaq.com/articles/us-stocks-tesla-keeps-nasdaq-afloat-att-forecast-weighs-on-sp-500
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Tesla shares rise as profit tops expectations
Airlines slide after United, American report earnings
Energy stocks lead sectoral declines
AT&T drags down communication services sector
Indexes: Dow down 0.49%, S&P off 0.16%, Nasdaq up 0.14%
Updates to open
By Shreyashi Sanyal
July 21 (Reuters) - The Nasdaq rose on Thursday as electric automaker Tesla topped Wall Street's profit target, while the benchmark S&P 500 edged lower due to losses in telecom stocks after AT&T cut its cash flow forecast.
Tesla TSLA.O rose 5.5% as its quarterly profit benefited from a string of price increases for its cars and helped offset production challenges.
Positive earnings reports from Tesla and streaming giant Netflix Inc NFLX.O have of late boosted megacap growth stocks, which have been under pressure from rising interest rates. Shares of Netflix rose 0.3%.
"Is it possible that Tesla provides a short term rally? Yes, absolutely," said Giuseppe Sette, president of the quantitative research firm Toggle.
"However, it seems likely that if we are truly in an age of liquidity withdrawal and quantitative tightening, rallies on high-momentum stocks like Tesla might not be secular or cyclical, but just rather short-term."
The S&P 500 communication services index .SPLRCL fell 1.5% and weighed on the benchmark index as AT&T Inc T.N cut its annual cash flow expectations by about $2 billion.
AT&T shares plunged 10%, and rivals Verizon Communications Inc VZ.N and T-Mobile US Inc TMUS.O dropped nearly 4% each.
Market participants continue to await anxiously for the Federal Reserve meeting next week where policymakers are expected to raise interest rates by 75 basis points to curb runaway inflation.
The rate decision will be followed by the crucial second-quarter U.S. gross domestic product data, which is likely to be negative again.
By one common rule of thumb, two quarters of negative GDP growth would mean the United States is already in a recession.
"The backdrop for U.S. corporate earnings looks challenging. With slowing economic growth, a strong US dollar and margins looking stretched, we suspect S&P 500 companies will struggle to meet the optimistic expectations embedded in analyst forecasts," said Thomas Mathews, markets economist at Capital Economics.
Analysts expect aggregate year-on-year S&P 500 profit to grow 6.3% for the second quarter, down from the 6.8% estimate at the start of the three-month period, according to Refinitiv data.
Meanwhile, tighter monetary policy and financial conditions appears to have led to a cooling in labor market as data showed the number of Americans filing new claims for unemployment benefits rose to the highest in eight months.
At 9:49 a.m. ET the Dow Jones Industrial Average .DJI was down 155.17 points, or 0.49%, at 31,719.67, the S&P 500 .SPX was down 6.23 points, or 0.16%, at 3,953.67 and the Nasdaq Composite .IXIC was up 16.50 points, or 0.14%, at 11,914.15.
Falling oil prices hit the S&P 500 energy sector .SPNY, which fell 3.7%.
United Airlines Holdings UAL.O fell 8.2% after posting a lower-than-expected quarterly profit, while American Airlines AAL.O dropped 6.2% after flagging cost pressures.
Declining issues outnumbered advancers for a 1.87-to-1 ratio on the NYSE and for a 1.21-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 29 new lows, while the Nasdaq recorded five new high and 16 new lows.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Additional reporting by Medha Singh Editing by Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines Holdings UAL.O fell 8.2% after posting a lower-than-expected quarterly profit, while American Airlines AAL.O dropped 6.2% after flagging cost pressures. Tesla shares rise as profit tops expectations Airlines slide after United, American report earnings Energy stocks lead sectoral declines AT&T drags down communication services sector Indexes: Dow down 0.49%, S&P off 0.16%, Nasdaq up 0.14% Updates to open By Shreyashi Sanyal July 21 (Reuters) - The Nasdaq rose on Thursday as electric automaker Tesla topped Wall Street's profit target, while the benchmark S&P 500 edged lower due to losses in telecom stocks after AT&T cut its cash flow forecast. Market participants continue to await anxiously for the Federal Reserve meeting next week where policymakers are expected to raise interest rates by 75 basis points to curb runaway inflation.
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United Airlines Holdings UAL.O fell 8.2% after posting a lower-than-expected quarterly profit, while American Airlines AAL.O dropped 6.2% after flagging cost pressures. Tesla shares rise as profit tops expectations Airlines slide after United, American report earnings Energy stocks lead sectoral declines AT&T drags down communication services sector Indexes: Dow down 0.49%, S&P off 0.16%, Nasdaq up 0.14% Updates to open By Shreyashi Sanyal July 21 (Reuters) - The Nasdaq rose on Thursday as electric automaker Tesla topped Wall Street's profit target, while the benchmark S&P 500 edged lower due to losses in telecom stocks after AT&T cut its cash flow forecast. The S&P 500 communication services index .SPLRCL fell 1.5% and weighed on the benchmark index as AT&T Inc T.N cut its annual cash flow expectations by about $2 billion.
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United Airlines Holdings UAL.O fell 8.2% after posting a lower-than-expected quarterly profit, while American Airlines AAL.O dropped 6.2% after flagging cost pressures. Tesla shares rise as profit tops expectations Airlines slide after United, American report earnings Energy stocks lead sectoral declines AT&T drags down communication services sector Indexes: Dow down 0.49%, S&P off 0.16%, Nasdaq up 0.14% Updates to open By Shreyashi Sanyal July 21 (Reuters) - The Nasdaq rose on Thursday as electric automaker Tesla topped Wall Street's profit target, while the benchmark S&P 500 edged lower due to losses in telecom stocks after AT&T cut its cash flow forecast. Tesla TSLA.O rose 5.5% as its quarterly profit benefited from a string of price increases for its cars and helped offset production challenges.
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United Airlines Holdings UAL.O fell 8.2% after posting a lower-than-expected quarterly profit, while American Airlines AAL.O dropped 6.2% after flagging cost pressures. Tesla shares rise as profit tops expectations Airlines slide after United, American report earnings Energy stocks lead sectoral declines AT&T drags down communication services sector Indexes: Dow down 0.49%, S&P off 0.16%, Nasdaq up 0.14% Updates to open By Shreyashi Sanyal July 21 (Reuters) - The Nasdaq rose on Thursday as electric automaker Tesla topped Wall Street's profit target, while the benchmark S&P 500 edged lower due to losses in telecom stocks after AT&T cut its cash flow forecast. Tesla TSLA.O rose 5.5% as its quarterly profit benefited from a string of price increases for its cars and helped offset production challenges.
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3364.0
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2022-07-21 00:00:00 UTC
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Stock Market Today: Nasdaq Leads Again as Tesla Stock Pops
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-nasdaq-leads-again-as-tesla-stock-pops
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nan
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nan
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Investors sifted through a busy news cycle on Thursday and decided they liked what they saw, with stocks ending higher for a third straight day.
Things got started early this morning on word that the European Central Bank (ECB) lifted interest rates by a higher-than-expected 50 basis points (a basis point is one-one hundredth of a percentage point). The rate hike marks the first for the ECB in 11 years, and comes as the central bank attempts to battle sizzling inflation and slowing economic growth across the eurozone.
SEE MORE European Dividend Aristocrats: 40 Top International Dividend Stocks
Back at home, the earnings calendar remained in focus, with the latest quarterly results from Tesla (TSLA) garnering notable attention. The maker of electric vehicles reported second-quarter earnings that beat analysts' consensus estimate, though they fell short on revenue.
"The company was clearly profitable this quarter," says Wes Gottesman, market advisor at Web3 trading platform TradeZing. "However relative to other quarters, the automotive revenue was down to $14.6 billion, as compared to the previous quarter's $16.9 billion. The culprit clearly being the shutdowns in Shanghai, and cutbacks in production/deliveries. That was the issue for this quarter, at no fault of their own. Their gross margins are at 25%, which means they have significant pricing power, while increasing production. Tesla also has a strong solar energy component which will continue to prosper as the world transitions to solar energy."
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In addition, TSLA sold roughly three-quarters of its Bitcoin purchases in Q2. The move was made to "maximize" the company's cash position, CEO Elon Musk said in the earnings call. He added that Tesla is "open to increasing" its Bitcoin holdings in the future, and that "this should not be taken as some verdict" on the cryptocurrency. TSLA did not sell any of its Dogecoin, according to Musk.
Still, Bitcoin fell 2.0% to 23,197 on that news (Bitcoin markets don't close; price taken at 4 p.m. ET.), while TSLA shares soared 9.8%. Tesla's rally helped the broader stock market brush off news that President Joe Biden tested positive for COVID-19, with the Nasdaq Composite gaining 1.4% to 12,059. The S&P 500 Index rose 1.0% to 3,998, while the Dow ended up 0.5% at 32,036.
YCharts
Other news in thestock market today
The small-cap Russell 2000 added 0.5% to 1,836.
U.S. crude futures shed 3.5% to settle at $96.35 per barrel.
Gold futures rose 0.8% to end at $1,713.40 an ounce.
AT&T (T) plunged 7.6% after the telecom firm lowered its full-year free cash flow guidance to $14 billion from $16 billion, "to reflect heavy investment in growth and working capital impacts related to timing of collections," the company said in its press release. This overshadowed T's higher-than-expected adjusted earnings of 65 cents per share and revenue of $29.6 billion in the second quarter.
Travel stocks struggled today following negative earnings reactions for American Airlines (AAL, -7.4%) and United Airlines (UAL, -10.2%). While AAL posted its in-line earnings per share of 76 cents on higher-than-expected revenue of $13.42 billion, it cut third-quarter capacity, now expecting to fly 8%-10% below what it did in Q3 2019. And UAL recorded a slimmer-than-anticipated second-quarter loss of $1.43 per share, but revenue of $12.11 billion fell short of the cosensus estimate.
Data from the Labor Department showed jobless claims rose 7,000 on a weekly basis to 251,000 – the most since last November. Still, this did little to move markets today. "With earnings season in full swing and the ECB announcing its first-rate hike in more than a decade, the slight tick up in jobless claims may take a backseat in investors' minds," says Mike Loewengart, managing director of investment strategy at E*Trade. "But with jobless claims on an upward trend over the last month, some may question if the labor market will start to factor in more to the Fed's plan as it works aggressively to tame inflation."
A "Best-of-Both-Worlds" Scenario for Investors
Mid-cap stocks were another area of the market where investors found green ink today. This group of equities (typically firms with market capitalizations that fall between $2 billion and $10 billion) have been quietly holding their own in recent weeks, up 0.8% today and 6.7% so far this quarter.
SEE MORE 65 Best Dividend Stocks You Can Count On in 2022
Often, mid caps are overlooked by those seeking out larger-cap names for stability or small-cap stocks for growth. Yet, this area of the market can provide investors a "best-of-both-worlds" scenario: higher growth potential than large caps and less volatility than smaller cap names.
And in the current backdrop of "a fast-moving business cycle and global central bank tightening," investors should consider mid-cap stocks, say Wells Fargo Investment Institute strategists; specifically, those with "the potential to post stable, high-quality earnings." Here, we've put together a list of the best mid-cap stocks to buy for these very qualities. What's more, each enjoys top ratings from Wall Street's pros.
SEE MORE 10 Best Green Energy Stocks for the Rest of 2022
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Travel stocks struggled today following negative earnings reactions for American Airlines (AAL, -7.4%) and United Airlines (UAL, -10.2%). While AAL posted its in-line earnings per share of 76 cents on higher-than-expected revenue of $13.42 billion, it cut third-quarter capacity, now expecting to fly 8%-10% below what it did in Q3 2019. Tesla's rally helped the broader stock market brush off news that President Joe Biden tested positive for COVID-19, with the Nasdaq Composite gaining 1.4% to 12,059.
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Travel stocks struggled today following negative earnings reactions for American Airlines (AAL, -7.4%) and United Airlines (UAL, -10.2%). While AAL posted its in-line earnings per share of 76 cents on higher-than-expected revenue of $13.42 billion, it cut third-quarter capacity, now expecting to fly 8%-10% below what it did in Q3 2019. Things got started early this morning on word that the European Central Bank (ECB) lifted interest rates by a higher-than-expected 50 basis points (a basis point is one-one hundredth of a percentage point).
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Travel stocks struggled today following negative earnings reactions for American Airlines (AAL, -7.4%) and United Airlines (UAL, -10.2%). While AAL posted its in-line earnings per share of 76 cents on higher-than-expected revenue of $13.42 billion, it cut third-quarter capacity, now expecting to fly 8%-10% below what it did in Q3 2019. SEE MORE European Dividend Aristocrats: 40 Top International Dividend Stocks Back at home, the earnings calendar remained in focus, with the latest quarterly results from Tesla (TSLA) garnering notable attention.
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Travel stocks struggled today following negative earnings reactions for American Airlines (AAL, -7.4%) and United Airlines (UAL, -10.2%). While AAL posted its in-line earnings per share of 76 cents on higher-than-expected revenue of $13.42 billion, it cut third-quarter capacity, now expecting to fly 8%-10% below what it did in Q3 2019. "However relative to other quarters, the automotive revenue was down to $14.6 billion, as compared to the previous quarter's $16.9 billion.
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3365.0
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2022-07-21 00:00:00 UTC
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American Airlines (AAL) Stock Slips Post Q2 Earnings Miss
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-stock-slips-post-q2-earnings-miss
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nan
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American Airlines’ AAL second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. Escalated operating expenses induced the earnings miss. Consequently, shares declined in early trading. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario. The second quarter of 2022 was the first profitable quarter, excluding net special items, at AAL since the onset of the pandemic.
Operating revenues of $13,422 million skyrocketed 79.5% year over year and also surpassed the Zacks Consensus Estimate of $13,409.8 million. This massive year-over-year jump reflects upbeat air-travel demand. Buoyant air-travel demand is also reflected by the fact that total operating revenues increased 12.2% from the second-quarter 2019 (pre-coronavirus) levels despite operating at an 8.5% lower capacity.
In the June quarter, passenger revenues, which accounted for the bulk of the top line (91.1%), increased to $12,223 million from a mere $6,545 million a year ago, driven by strong summer-travel demand, mainly on the domestic front. Cargo revenues inched up 0.5% to $328 million, driven by the carrier’s focus on its cargo unit in the coronavirus era. Cargo yield per ton mile rose 11.4% in the second quarter of 2022. Other revenues climbed 43.5%.
Total revenue per available seat miles (a key measure of unit revenue: TRASM) increased to 20.29 cents from 13.71 cents a year ago. Passenger revenue per available seat miles (PRASM) surged 54% to 18.47 cents, driven by buoyant air-travel demand. Consolidated yield increased 36.4%.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) rose to 57.516 million from 42,022 million a year ago. To cater to this buoyant demand, capacity (measured in average seat miles) expanded to 66,163 million from 54,555 million. Consolidated load factor (percentage of seats filled by passengers) increased 9.9 percentage points to 86.9%.
Total operating costs (on a reported basis) surged 76.3% year over year to $12,405 million with aircraft fuel expenses and related taxes skyrocketing to $4,020 million from $1,611 million a year ago. Average fuel price per gallon (including related taxes) climbed to $4.03 from $1.91 a year ago. Consolidated operating costs per available seat mile (CASM: excluding fuel and special items) inched up 0.5% to 12.68 cents. Fuel gallon consumption increased 18.1% to $997 million in second-quarter 2022. American Airlines, currently carrying a Zacks Rank #3 (Hold), exited the quarter with $15.6 billion of total available liquidity.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
Driven by soaring demand as evidenced by the healthy scenario with respect to bookings, management expects AAL to report profit in the September quarter too. The top-line guidance is naturally very bullish. Total revenues in the third quarter of 2022 are anticipated to be roughly 10-12% higher than the level recorded in third-quarter 2019. Management expects TRASM to be 20-24% higher than the third-quarter 2019 actuals.
American Airlines expects system capacity for the September quarter to decline in the 8-10% range from the figure reported in third-quarter 2019. Fuel cost per gallon in third-quarter 2022 is expected in the $3.73-$3.78 band. Fuel gallon consumption is expected to be $1,040 million. CASM excluding fuel and special items is expected to increase in the 12-14% range in the third quarter of 2022 from the number reported in third-quarter 2019.
Effective tax rate is anticipated to be 22%. Pre-tax margin (excluding net special items) is expected in the 2-4% range in the September quarter. Basic and diluted weighted average shares outstanding are likely to be approximately 650.6 million and 721.7 million, respectively, in the September quarter.
American Airlines expects 2022 capacity to decline 7.5-9.5% from the 2019 levels. CASM, excluding fuel and special items, is expected to increase between 10% and 12% from the 2019 actuals. AAL expects capex in 2022 and 2023 to be $2.6 billion and $2.7 billion, respectively. AAL still anticipates paying down approximately $15 billion of total debt by the end of 2025.
A Peek Into Other Notable Airline Results
Let’s look at the second-quarter 2022 results of American Airlines’ rivals Delta Air Lines DAL and United Airlines UAL.
Delta’s second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share lagged the Zacks Consensus Estimate of $1.71. Escalated operating expenses caused this earnings miss. Multiple flight cancellations in May and June also hurt results. In the year-ago quarter, DAL incurred a loss of $1.07 per share when air-travel demand was not as buoyant as at present.
Delta’s revenues came in at $13,824 million, beating the Zacks Consensus Estimate of $13,608.9 million and soaring 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic slumps.
United Airlines’ second-quarter 2022 earnings (excluding 43 cents from non-recurring items) of $1.443 per share fell short of the Zacks Consensus Estimate of $1.86. Escalated operating expenses induced the earnings miss. In the year-ago quarter, UAL incurred a loss of $3.91 per share when air-travel demand was not as buoyant as in the current scenario. The second quarter of 2022 was the first profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,112 million beat the Zacks Consensus Estimate of $12,033.7 million. Revenues increased more than 100% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 6.2% from the second-quarter 2019 (pre-coronavirus) levels.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Outlook Driven by soaring demand as evidenced by the healthy scenario with respect to bookings, management expects AAL to report profit in the September quarter too. American Airlines’ AAL second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
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American Airlines’ AAL second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario. The second quarter of 2022 was the first profitable quarter, excluding net special items, at AAL since the onset of the pandemic.
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American Airlines’ AAL second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario. The second quarter of 2022 was the first profitable quarter, excluding net special items, at AAL since the onset of the pandemic.
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American Airlines’ AAL second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario. The second quarter of 2022 was the first profitable quarter, excluding net special items, at AAL since the onset of the pandemic.
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U.S. carriers' cost struggle overshadows travel demand surge
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https://www.nasdaq.com/articles/u.s.-carriers-cost-struggle-overshadows-travel-demand-surge
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By Rajesh Kumar Singh
CHICAGO, July 21 (Reuters) - U.S. carriers are struggling to offset higher costs even as booming travel demand has given them strong pricing power, raising questions about their ability to shield profit once consumer demand softens.
Those worries are battering airline shares, taking the focus away from what is shaping up to be the industry's strongest earnings season in three years.
Shares of American Airlines Group Inc AAL.O and United Airlines UAL.O fell more than 9% on Thursday even after both carriers posted their first quarterly profit without U.S. government aid since the COVID-19 pandemic began.
Airlines expect travel demand to hold up even in the second half of the year as there is little evidence of higher fares, persistently high inflation and rising interest rates curbing consumer spending.
But staffing gaps and aircraft shortages have made it tougher to ramp up capacity and fully tap booming demand. In fact, carriers have been forced to cut flights and make costly staffing adjustments to avoid cancellations and delays, driving up operating costs.
American, United and Delta Air Lines DAL.N see no let up in cost pressure this year as capacity constraints are not allowing them to operate as many flights as they did before the pandemic.
Delta doesn't plan to add more flights for the rest of the year. Similarly, United intends to keep its capacity below the pre-pandemic level in the current and fourth quarters.
To ensure adequate staffing, they are being forced to spend more. Delta, for example, expects to spend over $700 million this year in overtime and premium pay, 50% higher than in 2019.
Carriers are also hamstrung by construction projects at airports and staffing gaps among air-traffic controllers. United said it will cut 200 flights a day in Newark in September as a result of runway construction.
United Chief Executive Scott Kirby said the company will prioritize operational reliability by overstaffing until the entire aviation infrastructure returns to normal.
"It means that there will be cost pressures," Kirby told investors on an earnings call.
Labor unions and some analysts blame the industry's decision to let go thousands of workers at the height of the coronavirus pandemic in 2020 for its staffing challenges. Carriers have been aggressively hiring, but training backlogs have left them still short-staffed.
Meanwhile, a rush to staff up is driving up labor costs.
American has offered its pilots a base pay increase of about 17% after United agreed to a double-digit pay hike for its pilots. To attract and retain talent, the Texas-based carrier has also announced hefty pay increases for pilots at its regional carriers.
"As an industry, pilot wages are going to increase," said American Chief Executive Robert Isom. "And that's something that the industry as a whole is going to have to digest."
Airlines are also facing higher fuel costs, but a decline in global prices is expected to offer some relief. Yet, United warned that higher fuel prices would be the new normal for the industry. It expects its fuel bill this year to be $9 billion higher than in 2019.
Strong consumer demand, thus far, has allowed carriers to mitigate inflationary pressure with higher fares. Analysts, however, are not sure they will have the same pricing power in the fall when leisure travel bookings tend to slow down.
Christopher Raite, senior analyst at Third Bridge, said business travel spending will have to pick up the slack.
But the industry's struggle to get operations back on a smoother track as well as a worsening economy have cast a shadow on business travel demand. Many companies have already started tightening their purse strings.
"The airline industry is fundamentally less profitable than it was pre-pandemic," Raite said. "If we are to see corporations cut back, that would be a bad sign for airlines."
(Reporting by Rajesh Kumar Singh in Chicago; Additional reporting by Aishwarya Nair in Bengaluru; Editing by Nick Zieminski)
((rajeshkumar.singh@thomsonreuters.com ; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines Group Inc AAL.O and United Airlines UAL.O fell more than 9% on Thursday even after both carriers posted their first quarterly profit without U.S. government aid since the COVID-19 pandemic began. Airlines expect travel demand to hold up even in the second half of the year as there is little evidence of higher fares, persistently high inflation and rising interest rates curbing consumer spending. American, United and Delta Air Lines DAL.N see no let up in cost pressure this year as capacity constraints are not allowing them to operate as many flights as they did before the pandemic.
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Shares of American Airlines Group Inc AAL.O and United Airlines UAL.O fell more than 9% on Thursday even after both carriers posted their first quarterly profit without U.S. government aid since the COVID-19 pandemic began. By Rajesh Kumar Singh CHICAGO, July 21 (Reuters) - U.S. carriers are struggling to offset higher costs even as booming travel demand has given them strong pricing power, raising questions about their ability to shield profit once consumer demand softens. Airlines expect travel demand to hold up even in the second half of the year as there is little evidence of higher fares, persistently high inflation and rising interest rates curbing consumer spending.
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Shares of American Airlines Group Inc AAL.O and United Airlines UAL.O fell more than 9% on Thursday even after both carriers posted their first quarterly profit without U.S. government aid since the COVID-19 pandemic began. By Rajesh Kumar Singh CHICAGO, July 21 (Reuters) - U.S. carriers are struggling to offset higher costs even as booming travel demand has given them strong pricing power, raising questions about their ability to shield profit once consumer demand softens. In fact, carriers have been forced to cut flights and make costly staffing adjustments to avoid cancellations and delays, driving up operating costs.
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Shares of American Airlines Group Inc AAL.O and United Airlines UAL.O fell more than 9% on Thursday even after both carriers posted their first quarterly profit without U.S. government aid since the COVID-19 pandemic began. By Rajesh Kumar Singh CHICAGO, July 21 (Reuters) - U.S. carriers are struggling to offset higher costs even as booming travel demand has given them strong pricing power, raising questions about their ability to shield profit once consumer demand softens. American, United and Delta Air Lines DAL.N see no let up in cost pressure this year as capacity constraints are not allowing them to operate as many flights as they did before the pandemic.
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2022-07-21 00:00:00 UTC
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American Airlines Group (AAL) Q2 2022 Earnings Call Transcript
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https://www.nasdaq.com/articles/american-airlines-group-aal-q2-2022-earnings-call-transcript
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Image source: The Motley Fool.
American Airlines Group (NASDAQ: AAL)
Q2 2022 Earnings Call
Jul 21, 2022, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the American Airlines Group second quarter 2022earnings conference call Today's call is being recorded. [Operator instructions] And now I would like to turn the conference over to your moderator, head of investor relations, Mr. Scott Long.
Scott Long -- Head of Investor Relations
Thank you, Olivia. Good morning, everyone, and welcome to the American Airlines Group second quarter 2022earnings conference call On the call this morning, we have our CEO, Robert Isom, and our vice chair and CFO and president of American Eagle, Derek Kerr. Also on the call for Q&A are David Seymour, Vasu Raja, and a number of other senior executives.
Robert will start the call this morning with an overview of the second quarter. Derek will follow with details on the quarter and our operating plans and outlook going forward. After Derek's comments, we'll open the call for analyst questions, followed by questions from the media. [Operator instructions] And before we begin today, we must state that today's call contains forward-looking statements, including statements concerning future revenues, costs, forecast of capacity and fleet plans.
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These statements represent our predictions and expectations of future events, but numerous risks and uncertainties could cause actual results to differ from those projected. Information about some of these risks and uncertainties can be found in our earnings press release, which was issued this morning, as well as our Form 10-Q for the quarter ended June 30th, 2022. In addition, we'll be discussing certain non-GAAP financial measures this morning, which exclude the impact of unusual items. A reconciliation of those numbers to the GAAP financial measures is included in the earnings press release, which can be found on the Investor Relations section of our website.
A webcast of this call will also be archived on our website. The information we're giving you on the call this morning is as of today's date, and we undertake no obligation to update the information subsequently. Thank you for your interest and for joining us this morning. With that, I'll turn the call over to our CEO, Robert Isom.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Thanks, Scott, and good morning, everyone. Thanks for joining us. I want to start by thanking the American Airlines team, which has done an amazing job of running our airline, especially during very challenging operating conditions in the past few months. They managed significant weather, both thunderstorms, and extreme heat in many parts of the country.
Customers continue to come back to travel in record numbers, and our team has adapted to one of the busiest summers that we've ever experienced and then done so with grace, professionalism, and a level of commitment to our customers and each other. It is second to none. Every single day, I hear from our customers about something incredible that our team has done. We're so proud of their work and grateful for their support.
I also want to thank and acknowledge our key partners in the U.S. government. Secretary Mayorkas, Secretary Buttigieg, and their teams at the FAA, TSA, CBP as well as the air traffic controllers at NATCA. They've been right there with us and have worked through these difficult operating conditions.
The extraordinary surge in demand for air travel has significantly impacted them as well, and we appreciate their consistency and professionalism. All of us have to acknowledge that there are challenges in the national airspace, particularly in high-traffic locations like Florida and the Northeast, but I'm grateful for the sheer commitment that we have in the public and private sectors and management on the front line to facilitate the efficient return of travel. American served 53 million customers in the quarter, and we couldn't have done that without everyone pulling together. As we have shared previously, we have two primary goals this year: running a reliable operation, and returning to profitability, and that's the entirety of our focus.
We've made a lot of progress on running a reliable airline, but we have still some work to do, and I'll touch up on that more in a moment. The big news is this, we're really pleased to report a quarterly profit for the first time since the start of the pandemic, that's two and a half years, that's driven by the strong demand environment and the hard work of our team. We're also pleased to have hit our pre-tax margin guidance, despite a challenging end of the quarter and a significant run-up in oil prices. American reported second quarter GAAP net income of $476 million.
Excluding net special items, we reported a second quarter net income of $533 million. American produced revenues of $13.4 billion in the second quarter, and that's an increase of 12.2% versus 2019 and a record for any quarter in the company's history. And let me repeat that, that's a record for any quarter in our company's history. These results were achieved while flying 8.5% less capacity than we did in 2019.
Importantly, these results are an indication that our actions are producing the expected results. Early in the pandemic, we made a conscious decision to simplify our fleet network, focusing our flying where we could create outsized customer value and using partnerships to augment that service. In the second quarter, some 70% of our flying was in American's areas of strength, our Sunbelt hubs, Mexico, Caribbean, Latin America, and London. This flying outperformed the industry as we offer customers more options than any other airline.
Our domestic partnerships are also producing for our customers and for us. As a matter of fact, our unit revenue performance in JFK and Los Angeles outperformed the system in the second quarter. Customers are flying in different patterns than they have previously, and that's creating opportunities for us. System business revenue is now fully recovered compared to 2019, with revenue from small and medium businesses and customers exhibiting a blended behaviors that were traditionally associated with both business and leisure continuing to outpace the recovery of our managed corporate revenue.
The majority of this revenue growth has come directly through our website, bypassing traditional channels. Further, leisure demand surpassed 2019 levels in the second quarter, and customers continue to see us through increasing appetite for travel. Enrollments in our loyalty program continue at record levels, and spend on our co-brand cards is growing at a greater rate than ever before. Looking forward, we will limit capacity to the resources we have and the operating conditions we face.
We will continue to orient our flying to create value for our customers. And as always, we will remain nimble to ensure that we are best positioned to capitalize on continued demand strength. Now turning back to reliability. After running a solid operation in April and May, headlined by a strong Memorial Day, we had challenges in June.
June was a difficult month for the entire industry from an operational perspective, with extreme weather impacting every major hub and air traffic control challenges in certain parts of the country. At American, we encountered significant weather on 27 of the 30 days in June. That weather resulted in ramp closures, ground stops, ground delay programs, airspace flow programs, which had a ripple effect throughout our operations. Despite the challenging operating environment in June, our D0, that's departures on time, made 14 arrivals within 14 minutes.
And completion factor for the full quarter were better than the second quarter of 2019. Our team achieved this while flying a second quarter schedule that was more than 25% larger than our closest competitor on a departure basis. American operated more than 0.5 million flights in the quarter. That's an 8% increase over the second quarter of 2021, with a load factor of 87%, which is 10 points higher than the second quarter of 2021.
While June was challenging, we have seen improvements so far in July, including over the busy Independence Day weekend. American finished the holiday period with a combined D0 A14 in completion factor, all above goal and in line with our pre-pandemic performance, while operating a July 4th holiday schedule that was 30% larger than our competitors as measured by total departures. Our operational performance for the full quarter and the results we have delivered in the first few weeks of July give us confidence moving forward, but we still aren't where we need to be. And we have a lot of flying ahead of us still in the summer, so we are investing in our operation to ensure we meet our reliability goals and deliver for our customers.
We've taken proactive steps to build additional buffer into our schedule for the rest of the year. As I said a minute ago, we're sizing the airline for the resources we have available and the operating conditions we face, and we will make other changes as needed. Even with these adjustments, American still offers customers the largest network of any U.S. airline with an average of more than 5,400 daily departures.
So I want to close by reiterating that I'm tremendously excited about what lies ahead for American. We're encouraged by the trends we're seeing across the business, and we've built an airline that can be successful in a number of different demand and economic environments. Our second quarter results and strong revenue production, despite challenging conditions, demonstrates that our plan to return to profitability and deliver a good operation for our customers is working. We have the strongest assets in the industry, and the work that our team has accomplished to build and deliver the most comprehensive network in the business is paying off.
And with that, I'll turn it over to Derek.
Derek Kerr -- Vice Chairman, Chief Financial Officer
Thanks, Robert, and good morning, everyone. Before I begin, I want to thank the American Airlines team for their continued dedication to our customers during this busy summer travel season. This morning, we reported a second quarter GAAP net income of $476 million or earnings of $0.68 per diluted share. Excluding net special items, we reported a net income of $533 million or earnings of $0.76 per diluted share.
We talk a lot about our goal of returning the airline to profitability, and our second quarter performance is a result of that focus. Profitability in the quarter was driven by record revenue performance. As Robert noted, our second quarter revenue was $13.4 billion, was 12.2% higher, despite flying 8.5% less capacity than the same period in 2019. Leisure demand continued to lead the way, but the acceleration of business and long-haul international demand contributed to the strength we saw in the quarter.
Operating earnings improved sequentially through the quarter, in line with the growth in revenue, despite rising fuel costs. We continue to reap the benefit of the past investments in our fleet and are well positioned for the future. In the second quarter, we took delivery of five A321neos and reactivated nine Boeing 737-800s from long-term storage. We continue to work closely with Boeing and the timing of our delayed 788s, and we expect to begin taking delivery of those aircraft this quarter.
We now expect to receive 9 788s this quarter and four this year and four in the first part of 2023. Lastly, based on our latest guidance from Airbus, we are now expecting our A321XLRs to be delivered starting in the first quarter of 2024, instead of the third quarter of 2023. This will shift planned aircraft capacity out of 2023 into future years. Our 2023 aircraft capex is now expected to be $1.9 billion.
We ended the second quarter with $15.6 billion of total available liquidity. During the quarter, we generated operating cash flow of $1.7 billion and free cash flow of more than $800 million. Total debt reduction remains a top priority. We remain on track with our target of reducing overall debt levels by $15 billion by the end of 2025.
In the near term, we will continue to keep up -- keep our liquidity at elevated levels, with a plan to step down to $10 billion to $12 billion when we are confident the recovery has fully taken hold. At that time, any excess liquidity will be prioritized to reduce debt. During the quarter, we made $1 billion in scheduled debt and finance lease payments, including paying off the remaining outstanding balance of our $750 million unsecured senior notes that matured in June. To date, we have reduced overall debt levels by $5.2 billion from peak levels in the second quarter of 2021.
This means that after only 12 months, we have completed more than one-third of our $15 billion total debt reduction target. This progress affords us tremendous flexibility as to when and how we bring down the remaining $10 billion in total debt by the end of 2025. As we have said previously, moving forward, we will continue to balance our total liquidity with the expected demand recovery, debt reduction opportunities, and investment in the business. We expect to make $375 million of scheduled debt payments in the third quarter, which includes the scheduled payoff and unencumbering of eight CRJ-700 aircraft.
As we look to the remainder of the year, we are making targeted investments to ensure operational reliability. With recent schedule adjustments, we now expect full year 2022 capacity to be recovered to 90.5% of 2019 levels. Consequently, we now expect our full year CASM, excluding fuel and net special items, to be up between 10% and 12% versus 2019. The increase in unit cost is driven by lower planned capacity and other investments to support the operation, including wage premiums and regional pilot pay.
These unit cost increases represent near-term investments that will drive long-term value. We are confident that unit costs will improve as we increase asset utilization to historical levels. In the third quarter, we expect to be profitable, despite the continuation of elevated fuel prices. Pretax margins are expected to be between 2% and 4% for the quarter based on the current demand trends and our latest fuel price forecast.
We currently expect total revenue to be 10% to 12% higher versus the third quarter of 2019 on 8% to 10% lower capacity. On this revenue strength, we expect total revenue per ASM to be 20% to 24% higher in the third quarter versus the same period in 2019. We expect our third quarter CASM, excluding fuel and net special items, to be up between 12% and 14% compared to 2019. Lower planned capacity and the investment in the reliability of the operation that I mentioned previously are driving unit costs higher for the quarter.
Our current forecast for the third quarter assumes fuel between $3.73 and $3.78 per gallon, an increase of more than 80% versus the price of fuel in the third quarter of 2019. In conclusion, demand is strong, and we remain focused on our key objectives of operational reliability and profitability. While we've made investments in our operation that will impact near-term costs, we are confident that we're very well positioned as we move into 2023 because of our network, our fleet, our team and the actions we have taken. With that, we will open up the line for analyst questions.
Questions & Answers:
Operator
Thank you [Operator instructions] And our first question coming from the line of Michael Linenberg with Deutsche Bank. Your line is open.
Michael Linenberg -- Deutsche Bank -- Analyst
Yeah. Good morning, everyone. Hey. Good job this quarter and good outlook.
I guess, Derek, first to you on the $5.2 billion debt reduction that you've been able to do thus far, presumably, you're not including any sort of reduction in the pension obligation. And just given the run-up in interest rates and sort of thinking where the discount rate would go, can you just give us a sense of maybe the potential tailwind on that from a deleveraging perspective, sort of where things stand and how you're thinking about that pension obligation? Thanks.
Derek Kerr -- Vice Chairman, Chief Financial Officer
Yeah. Two things. One is that we look at that at the end of the year, so there was some benefit in the pension. The reduction in '21 -- there was a slight reduction in '21 of the pension obligation.
As we look at where we're at now as of June 30th, the actual pension status or funding ratio has gone up to about 81%. The liabilities have dropped over $3.5 billion due to the interest rate change, and it's a higher interest rate, which has more than offset the asset reduction. So it's actually in a much better spot than it was before, not the way we want to get there, without a doubt, but it is in a better spot from a pension liability standpoint. But we have not yet added that in for anything in 2022.
But if we did, it'd be -- right now, it would be about $1 billion lower from a liability perspective, from a debt perspective than it would be before. So we are managing it the way we would any other time, staying very conservative in our pension and watching it. But the interest rate has actually driven the liability much, much lower than what the reduction in the asset class has been.
Michael Linenberg -- Deutsche Bank -- Analyst
OK. That's helpful. And then the second question, and this is probably more for Vasu. Derek, you said that you're going to get 9 787s this quarter, and I know that everybody's been -- that, that has slipped multiple times.
And assuming that it does slip again, when I look in the fourth quarter, it does look like you have the 787 scheduled in -- it's in your timetable. If, for some reason, that were to slip again, like how many points of capacity do those airplanes account for in the back part of the year? Thanks.
Derek Kerr -- Vice Chairman, Chief Financial Officer
Yeah. Well, two things, Mike. I corrected that, I think, in my comments, but it is nine for the year. We will have two coming in, I think, in early August.
The first two will come earlier, and we don't have any of them built into the schedule until November time frame. So if those do slip from August a little bit, we have put in almost a two-month pad in those coming in. But we don't think it will impact the fourth quarter a lot. If they slip a lot further, where the impact is going to be into 2023, not a lot into 2022.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
And Mike, presuming that all 9 do deliver, call that roughly about deploying of capacity in a month.
Michael Linenberg -- Deutsche Bank -- Analyst
OK. Great.
Operator
One moment for our next question. Our next question coming from the line of Helane Becker with Cowen. Your line is open.
Helane Becker -- Cowen and Company -- Analyst
Thanks so much, operator. Morning. Thank you. Hi.
So just two questions. The first question, Robert, I saw you on CNBC this morning, and you talked about the pilot contract. And I know you guys don't like to talk about it, but you did present your pilots with an offer that would increase pay by 17% by 2025, I think. Could you just talk about what happens next and the status of that?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Sure. So Helane, thanks for the questions. Look, it's really important for us to take care of our pilots. You know that throughout the pandemic, we had put an offer on the table that would have made our pilots the most highly paid pilots in the industry.
We never pulled that back, even throughout the pandemic. But United went out and put out a better offer. And we thought it was really important to get to the table and make sure that our pilots know that we were going to take care of them. So we've done that.
And now we are negotiating very closely and actively, and my hope is that we make progress over the coming weeks and months. Now how that bakes into financial forecast, we haven't put anything in yet. We don't know exactly where we'll end up. And then the point I'd just make is that with every contract, not only are there changes to compensation and quality of life, but we think that when we get to a contract, we'll have a contract that is -- that operates very efficiently for the company as well.
Helane Becker -- Cowen and Company -- Analyst
OK. Great. That's really helpful. Thank you.
And then just a follow-up question on London. I know Phil asked you about that, too. And I heard Scott say last night that London operations will call him up and tell him a day or two in advance they're canceling flights. I don't think you guys have as many flights to London as they do, but are you seeing the same issues? And is that -- and maybe how does that get fixed? Or is it more a British Air problem and a partner problem?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
No. Let me start with this. First off, we have a really sizable operation in London Heathrow with our Atlantic joint business partner, BA. We offer the largest schedule into London Heathrow, so it's very important to us.
One of the things that we've done is we've been able to isolate American's operations into T3, and so that has allowed us with our team to make sure that we're doing everything possible. Now all that said, there's so much that you can do with your own team members. There's infrastructure, like bag systems that you're dependent on Heathrow. And then, of course, BA is incredibly dependent on Heathrow as well.
To that end, we're working as a group with our oneworld carriers to make sure that we match our capacity to the resources that are there. That will take some time to work our way through. And to that end, maybe I'll have Nate Gatten, our head of government affairs and corporate real estate add to what's going on and the prognosis for that.
Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer
Yes. Thanks, Robert. Helane, what we worked for the last week on extremely short notice to cancel departing flights as a way to help manage airport crowding. And as Robert said, we've found that request to be quite disappointing and frustrating on many levels mostly because of the significant burn that would put on our customers under short notice with few options for rebooking given the -- some of those.
What we did then was work with how to limit the capacity on our departing flights by capping loads on certain flights. We've rebooked passengers over other European points departure, did things like limit nonrev travel, etc. And as Robert mentioned, we did that in conjunction with our oneworld and JV partners. It's important to understand that these procedures will be in place until the beginning of next week, at which point a new procedure for limiting passengers at Heathrow is going to be instituted this time by the slot coordinators.
And we don't have the full details on how that's going to work yet, but the new arrangement would probably continue to impact all the airlines serving Heathrow through the second week in September. So I would just say we're very disappointed in the circumstances. We have high load factors this summer. Again, we're told by the airport at the very last minute that they can't handle the passengers and that we need to reduce the capacity.
And just final point, fortunately, we don't see these same kinds of caps on the horizon in the United States, but we do expect to face similar issues and challenges that additional international locations through the summer.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
And Helane, I'll just close with this. Look, we're going to put these measures in place, work with the airport authorities. At the end of the day, we've got to match capacity to the resources that are available, and we're going to push hard to make sure that all of the airports that we work with get the resources they need to serve our operations at the size that it should be. So thanks for the question.
Helane Becker -- Cowen and Company -- Analyst
Thanks very much. Have a great day.
Operator
Thank you. One moment for our next question. Our next question coming from the line of Jamie Baker with J.P. Morgan.
Your line is open.
Jamie Baker -- J.P. Morgan -- Analyst
Hey. Good morning. I guess, since Helane brought up London, I flew back on American yesterday, nothing but positive things to say. I'll take that up with Scott offline.
First question for Vasu. So last quarter, you brought up a phenomenon of corporate travelers combining business with pleasure, extending trips, bringing the spouse, that sort of thing. With another 90 days of corporate recovery under your belt now, I mean, is the trend any different? And to the extent that this is sustainable, is there a way to actually monetize it? Or is it just sort of gravy, if it happens, great; if not, no biggie?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Hey, Jamie. Thanks for the question, and this is a topic which is very frequently on our minds here because, indeed, in the last 90 days and be the nine months or 12 months before that, the trends have not abated. In fact, they've grown even stronger. I mentioned in our last call when you asked the question that it used to be as much as 70%, 75% of our revenues could be both identified and would self-classify itself very binary as traveling only for business or only for leisure, and now that's only 50%.
And that other 50% that's there indeed is still there. It tends to be higher yielding. It comes to us directly through our dot-com and mobile. And it's looking for -- and it does that largely because it's looking for travel experiences and journeys and things like that, which the industries haven't been able to make available through the very antiquated technologies and things like that, that we've been prone to using.
So yes, this really has opened our eyes to creating a lot of value for these kinds of customers, who are a growing number. Like all of our advantage enrollments are coming out of that population, they're disproportionately concentrated in places where American has just a lot of natural strength. Think of the Sunbelt, the Midwest, the Southeast. So we're really encouraged by what we see.
And indeed, it's proven through the pandemic to be a very durable source of demand that's both high yielding and wants a lot more in the airline product than just a single transaction. So it is very much on our minds, and it's probably going to shape a lot of view in the months and quarters ahead.
Jamie Baker -- J.P. Morgan -- Analyst
OK. Great. Thanks for that. And then second question, probably for Derek or Robert.
But the demand data is obviously super encouraging. You're smaller than you were pre-COVID, but you're generating more revenue. I mean that's a great strategy for many businesses, I suppose, but your margins aren't recovered, and you weren't satisfied with your pre-COVID margins to begin with. So simple question, what are the drivers of higher margins from here?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Well, Jamie, let me start with just from the top, and then Derek can go into more detail. Look, there's more margin growth at American. We've resourced this airline to fly a larger airline, just plain and simple. We've built in a lot of redundancies.
And even in June, those redundancies weren't enough. But over time, we know that we can utilize our assets a lot harder than we have been able to, to this point. And as you take a look going forward in terms of margins, I know that the third quarter, look, we've pulled out some additional flying, and that's fine that we would rather do. You know that we have regional aircraft that aren't in the air.
And while we may not have the pilots, we have the other resources to actually fly those aircraft. So the key to us is ultimately to be able to use our assets at a higher rate. But Derek, go ahead.
Derek Kerr -- Vice Chairman, Chief Financial Officer
No. I was going to say the exact same things. And Jamie, as we look at the second quarter, we talked about 100 regional aircraft being out on the ground, and we had probably about 40 mainline aircraft -- equivalent aircraft on the ground. So you're talking about 150 -- 140, 150 aircraft that aren't being utilized.
So two things have to happen is the resources come, and we put those aircraft back up in the air. We've got to get out of those aircraft. So we really want to fly all those. We want to get back to the utilization that we were at, and that is where the margin comes because, as Robert said, we are built from a cost perspective to fly those aircraft.
And today, we're not. So that's where it's at, and that's where we believe as we get ourselves back up to ASM levels in the 2019, it comes at a much cheaper cost because the assets are here.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
And Jamie, just to add one other point, just from even a second quarter perspective. The month of June was really hard on the airline. 27 out of 30 days, we had severe weather that resulted in ramp closures, ground staff, ground delay programs, aerospace flow programs. And in some, we flew at least a percentage point or more less than we would have otherwise.
June and the second quarter would have been better had we seen a more normal type close to the quarter. So that gives me optimism that there's not only utilization that we can work our way out of, but also more normal operating conditions are going to benefit us as we go forward as well.
Jamie Baker -- J.P. Morgan -- Analyst
OK. Very helpful. Thank you. Thank you, gentlemen.
Take care.
Operator
One moment for our next question. Our next question coming from the line Savi Syth with Raymond James. Your line is open.
Savi Syth -- Raymond James -- Analyst
Hey. Good morning. If I might on -- just a kind of a follow-up to Jamie's question there. So if you look at versus 2019, just how much has kind of inflation been built in? I know you have kind of this regional pilot pay that's kind of built in there.
So how much of these kind of increases are structural versus what could we -- like if I take your either 3Q or your kind of full year unit cost, like how much is structural versus how much could we see kind of go away as you get back to kind of 2019 level capacity?
Derek Kerr -- Vice Chairman, Chief Financial Officer
Well, I would say as we look at the cost structure, the cost tradings we talked about is built to fly another 150 aircraft. So we did add cost in. So if you take the third quarter over the second quarter, the increase is really driven by three things, which is mainline salaries due to putting in some of the pilot contract issues. The maintenance is up year over year just because of engine overhauls and things that we're seeing throughout the summer and then the regional pilot pay that's put into place.
So the regional pile-up is put into place to get more aircraft up in the air, so that -- hopefully, that is there. It's there to stay. The higher cost to fly regional and the new contract that we put in place regionally is there. That hopefully drives more aircraft back up in the air.
We'll see where that goes. If it doesn't, then that cost doesn't come. So I think those things are built in. They're going to be there as we move forward.
So it's important for us to get the utilization back up and get the aircraft in the air.
Savi Syth -- Raymond James -- Analyst
That makes sense. And if I can ask just a follow-up on that regional pilot pay. The pay was surprising, and I understand that at least part of it is a bonus that supposedly kind of rolls off in 2024. But given how kind of much the gap versus mainline pay has been narrowed or, in some cases, even higher than mainline pay, just -- is that sustainable from an economic standpoint for those markets because you're flying them with small aircraft, fuel is a bigger impact on those smaller markets? Is that sustainable long term? Or is it the right move right now because -- maybe because capacity is out of those markets and fares are high or you just need to get this capacity back up? I was just kind of curious as the kind of thinking behind that big of a pay increase.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Savi, let me start and then I know some others might want to jump in. The answer to that is yes. Look, the regional network to American Airlines is incredibly important. And whether it's 50 or 65 or 76-seat aircraft, being able to serve those markets in a way that connects to our hubs and then unleashes the breadth of the rest of our network, that's a really compelling offering that achieves higher yields.
And so even though pilot expense for those regional aircraft will be going up, we're confident that the yields that will be introduced will take that into account. But one thing I want to make clear, though, is as we take a look at regional pilot pay, but it costs quite a bit of money to become a pilot. And the expectations for a pilot coming out and saying taking that first job, right, they have changed over time. So as we look forward, I do think that as an industry, pilot wages are going to increase.
And that's something that the industry as a whole is going to have to digest. And ultimately, that will show up through our cost structure and be a factor in terms of how we try to monetize our product.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes. This is Vasu. I'll just add that to what Robert said in this, but for our airline in particular, so much of how we create value and drive margins is by creating as many unique O&Ds as we can. And you've seen it through many quarters now where we've flown more capacity in the industry that can produce higher, but there are good nominal PRASM, at least as good, if not better than what our network competitors are, certainly in domestic and short haul.
And a major part of that is the regional jet. In this last quarter, we flew 20% -- we had 20% more O&Ds than what our next largest network competitor did. And in those markets, we are seeing yields that are 25% greater than what happened to the rest of the system. Indeed, that's what's really driving the yield growth that's there.
Many of those markets are where we see the high-value blended demand that Jamie asked about earlier. So indeed, not only is it something sustainable. It's something which is a unique feature of what we do and always will be.
Savi Syth -- Raymond James -- Analyst
Appreciate that. Thank you.
Operator
Thank you. One moment for our next question. And our next question coming from the line of Duane Pfennigwerth with Evercore ISI. Your line is open.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Hey. Thanks. Good morning. Maybe we'll start where Savi just left off.
So I guess, anybody could do what you're doing on the pay side, so it's hard to see how that's a unique benefit. So historically, on the regional side, that pay arbitrage was one of the reasons that profitability worked. So why is -- why are pay increases like this the right answer from a profitability perspective? I understand why they might be the right answer from a small market, market share perspective. But why is that a better answer than your peers from a margin perspective?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Duane, let me start. First off, again, the days of being able to go out and attract a pilot for wages that are $40,000 a year, OK, are gone. I don't think that we're going to return to an environment where that is the type of compensation that regional pilots make. It's a different world.
And for pilots coming in, we're still not talking about exorbitant salaries. And I think that, that is something that, no matter the carrier, they're going to face the issues of having to pay higher rates for pilots. That said, there is a uniqueness about American Airlines network that allows us to use on our regional network and our regional pilots in a fashion that produces outsized yield. That's what will differentiate us.
It's not that, hey, we're going to go out and be able to have a slight difference in terms of pilot wages, and that's going to make the difference in terms of the margin we make as a company. Vasu, do you want to add something?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes. I'll just add to it very simply, Duane, in an industry that has struggled for a long time to be able to pass its cost into revenue, at least for us, what we've seen time and time again with the regionals is anytime there has been a cost increase, that is the one part of the business where we can most consistently pass it through to revenues. And we do it because of what it does. It creates a unique product for customers that increasingly nobody else but American Airlines can go and do.
And when you look through our system, right, there's many of those markets that you simply couldn't upgauge. And even if you did upgauge it, flying to large cities, Birmingham, Alabama, Wilmington, North Carolina, once a day of a 737 doesn't really create a lot of utility for some of those really big metro areas in the U.S. So for us, this is actually a place where by doing it, and frankly, by doing it through our wholly owned regional jets, which themselves are very massive airlines, it creates a lot of unique value for our customers, which turns into revenue for us.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Appreciate that perspective. And then just one thing that's a little confusing to me. Can you clear up the difference in characterization on corporate? A couple of your peers call it sort of 80% recovered. Perhaps, you carried kind of less of that premium traffic going in.
Maybe differences in hub geography explains it. But why do you see it as sort of fully recovered versus the 80%? And if much more of it is coming through your own distribution, how do you know it's corporate?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes. Thanks, Duane, and I think this is an important clarification because I think that, maybe throughout the industry, people use a lot of different words or the same words to mean different things. Let me be really specific about what we do. When we talk about business, we talk about a trip type that is business.
And this is Jamie's question. We're able to go and calibrate it on -- we ask customers, did you actually buy for business, and we can actually go and look at it. Was it a single person in the itinerary? They didn't check a bag. They did a day trip, likely business, right? And so business revenue is that.
And for us, historically, that business revenue has been 40% to 45%. Of that, a component of it, historically, there is a 60-40 split between what we consider unmanaged or small businesses and really managed businesses. These are large corporations that contract travel globally typically, right? They use large travel agencies to help them manage the program. And so for us, what we see is that business revenue is indeed 40% to 45% recovered.
The nature of it has changed materially, though, where that unmanaged business is 125% to 130% recovered. And that managed or contracted corporate business is indeed about 75% to 80% recovered, maybe consistent with other things that you've heard. That, of course -- and that's the thing that we've been seeing for some time. This seems to be a relatively durable trend and one that will continue, which is that there's going to be more and more unmanaged businesses out there.
And indeed, we see even with those accounts that are contracted corporate accounts, as we emerge from the pandemic, fewer and fewer of them are enforcing travel policies, are doing a lot of the things that they contracted to begin with anyway. So that's a trend, which we anticipate will continue. And hopefully, that clarifies the point, too.
Duane Pfennigwerth -- Evercore ISI -- Analyst
It does. Thank you.
Operator
Thank you. And our next question coming from the line of David Vernon with Bernstein. Your line is open.
David Vernon -- AllianceBernstein -- Analyst
Hey. Good morning, guys. So, Robert and Derek, I want to talk a little bit about the rate of recovery in sort of either pre-tax or operating margins. You were down on pre-tax sort of 390 bps closer to '19 in the second quarter.
It looks the same on a September level. And I'm just trying to get a sense for when we should start to expect to see those pre-tax margins kind of recover. And is that all 100% driven by volume recovery? Or is there something to do on the revenue side or the cost side to kind of accelerate the rate of change in the profit margin?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Well, I'll just start, David. Look, this gets back to the question that's asked earlier. We have a lot of redundancy built into the business. Utilization Isn't where we need it.
I think that as we take a look to the future, we're depending on a couple of things. One is, fortunately, we're in a really strong revenue environment. And as we're looking to the third quarter, anticipating [Audio gap] a good revenue environment. And as we're looking to the third quarter, anticipating 20% to 24% increases in TRASM versus 2019.
From a cost perspective, that's where we would like to see unit cost come in lower. And the big driver to that is making sure that we fly a more fulsome schedule and take out the redundancy that we have built in. And it gets back again to how quickly we can get these jets back up, from a regional perspective, get the 787s back in. And my view is that that's the name of the game for us as we go forward.
And as we take a look into the rest of 2022 and 2023, our goal is to make sure that we're utilizing our assets as hard and fast as we can.
David Vernon -- AllianceBernstein -- Analyst
And if I'm going to play devil's advocate and say this isn't necessarily the case that we're thinking about, but in a world where we don't get that capacity recovery, the conversation within the company or the board around maybe restructuring that asset level, that resource level to some new level of lower. Not saying that's the base case, but I'm just wondering, as you guys think about managing the organization through the next couple of years here, if we end up in a world where that next 10% of ASM, the demand just isn't there. What are the levers that you could pull to maybe get the resource level down?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Hey, David. I mean, you've nailed it. We will size the airline for the demand that's out there. So right now, there's more demand than we'd like to be servicing.
We have the capacity to be able to do it. But as time goes forward, if that demand doesn't materialize, what we will do is we will size the airline appropriately. We have flexibility within our fleet to be able to take out, I believe, everything that we would need to in terms of matching demand going forward. And on top of that, then we would size the resources around it, including all of the people resources.
Now on that front, we have great flexibility because we're hiring so many folks just to make sure that we can run the airline as we need to. So whether it's a people perspective, whether it's a fleet perspective, we have the ability to size the airline for the demand that's out there.
Derek Kerr -- Vice Chairman, Chief Financial Officer
Yes. And I'll add some numbers there, David. In 2023, we've got 95 lease renewals; 2024, 72 lease renewals. We have unencumbered aircraft of over 200 aircraft.
We have deliveries coming in, in 2023. We have 31. In 2024, 47. So that is exactly right.
What you said is what we would do. We're not there yet because we believe that the demand is there to get more of these aircraft up. But if we see that, then that is what we would do is not renew leases, push deliveries like we have in the past. You saw us last quarter push out some deliveries on the 789s and make sure that we rightsize those.
And then we would take some of the unencumbered assets, and we would move those and sell those and not put them back up in the air. So that's where we would go. You're exactly right.
David Vernon -- AllianceBernstein -- Analyst
All right. Thank you, guys.
Operator
Thank you. And our next question coming from the line of Daniel McKenzie with Seaport Co. Your line is open.
Daniel McKenzie -- Seaport Global Securities -- Analyst
Hey. good morning. Thanks, guys. Going back to the commentary of more margin growth over time, setting aside market expectations for a recession and just putting a finer point on a prior commentary, all else equal, based on what you see today, are the initiatives in place to offset the structurally higher costs in this next cycle? So just putting a finer point on getting back to margins in the last cycle or actually exceeding those because, in the past, the commentary seemed pretty bullish for doing a little bit better than what you've done on your historical margins.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Daniel, thanks for the question, and others might chime in here, too. I'll bring us back a little bit because I think the -- what we're focusing on right now is getting back to sustained profitability. So we've reported within guide this quarter, despite really challenging operating conditions, we're expecting profitability as we go into the third quarter. And our intent is to stay in the black, OK? That's job No.
1. As we go out, it's still a murky environment out there, right? We're recovering from the pandemic, and we're doing so well. We know that demand now is back and back strong. There are so many constraints out there in terms of aircraft deliveries, in terms of just people and pilots that, look, we think that we're going to be in a position where we have the ability to improve revenue performance and get higher utilization out in the assets that we have.
That bodes well for the future, but I'm reluctant to look too far out into 2023, and say that there are certain margins that we will or will not hit. And I'll leave it at that, unless anybody else wants to chime in.
Derek Kerr -- Vice Chairman, Chief Financial Officer
No. But I would say, yes, that is our goal and that we know where we were in 2019. We know what those pre-tax EBITDA margins are. Getting the asset utilization back up where the demand environment is would get us back to those levels.
So it is all about moving forward, getting the asset utilization where it needs to be, get the aircraft back up in the air, and we can reach those levels for sure.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
And Dan, let me pick up where Derek left off, too. In this way, if you think about American Airlines prior to the pandemic, we flew more capacity than many of our competitors, but we've produced certainly lower nominal PRASM than what many of our -- certainly, what the industry leader at the time was. And through the pandemic, we've done a lot. In fact, this is Robert's commentary really.
We didn't just simplify the fleet. We also concentrated the network where 70% to 75% of it is flying in places where we can create really outsized consumer value, Sunbelt, NC, L.A., Heathrow. And we've really leaned hard into partnerships to create value where we couldn't organically. And now we're in a place where, really for a couple of quarters, we can fly 5% to 15% more capacity than the 2019 PRASM leader, but produced PRASMs that are pretty comparable to that.
So that's when we say getting asset utilization up and running, it's a meaningful thing, but the thing not to be lost is that doesn't mean we're putting back 2019. Like there's not a world where we're going to go back into flying money and losing flights for strategic purposes or things like that. There's not a world where we go and complicate it. But there is one where we've really realized the more unique O&Ds we create, the more that turns into real revenue production for the airline.
And that's the basis to go build off of and, from that, a lot more as possible and will be.
Daniel McKenzie -- Seaport Global Securities -- Analyst
Yes. Understood. Thanks for that. A question on the regional operation.
What does it look like one to three years from now, same size, smaller? And as you look at the percent of the regional network that's competing against mainline aircraft, where is that today? And is -- where would you like to see it? And is that an opportunity for helping to drive margin expansion?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Daniel, it's absolutely been an opportunity to drive margin expansion. First goal is to just get all the aircraft that we have back up and flying. And so our fleet is -- our regional aircraft is roughly 600 aircraft. Love to get those backup.
And over time, there will be changes in terms of mix to that fleet, but it will be based on how effective it supports our hubs and the rest of the mainline operation, too. So first goal and one that I think will take the next couple of years for sure is to get to all 600 back up and flying.
Daniel McKenzie -- Seaport Global Securities -- Analyst
Thanks for the time, guys.
Operator
One moment for our next question. Our next question coming from the line of Sheila Kahyaoglu with Jefferies. Your line is open.
Sheila Kahyaoglu -- Jefferies -- Analyst
Hi. Good morning, guys, and thank you for the time. I echo Jamie's comments. I don't know if you guys were screening for airline analysts going into Heathrow, but my experience of American was pretty good.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
All right. That's what I'd like to hear.
Sheila Kahyaoglu -- Jefferies -- Analyst
Maybe just talking to your other large hubs. If you could talk about unit revenue in JFK and LAX, you mentioned in your prepared remarks it's outperforming the total system. Can you maybe provide some color on that? Is that relative to 2019 or on an absolute unit revenue basis across the system?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Thanks for the question. This is Vasu, and the answer is both. To Robert's specific point, that is compared to our system in absolute, but let me provide a little bit of context behind the point. For us, historically, in New York, especially New York Kennedy, and L.A., American Airlines typically produce unit revenues that were, let's call it, 90% of what the industry produce to its domestic system.
And now those are starting to get -- both in New York Kennedy and in Los Angeles, we're starting to produce unit revenues that are much more in line with the domestic system. This is material for us because our largest hubs where our capacity concentration is still great are able to produce unit revenues at a real advantage to what our competitors are able to do. So we were able to go and serve these markets with higher unit revenues as it bleeds through. It's something that we tend to look at really, really closely.
But what we're really most encouraged about in New York and L.A. is this isn't just a function of going in there and cutting a bunch of flights or growing RASM. We've improved the consumer proposition that's there. In New York, certainly, we -- between American Airlines and JetBlue, our Northeast Alliance has put back more capacity sooner than anybody else.
We've launched new routes. We've taken the American Airlines metal in the market like Doha and India that two or three years ago would have been relatively unthinkable, and our consumers are responding. We're seeing originating market share, both in that partnership and also our West Coast partnership with Alaska. And that's coming directly away from our large network competitors.
So we're encouraged by the whole thing. And really, the context for it is this consumer proposition is starting to bleed its way into the unit revenue results, and that's most encouraging of all.
Sheila Kahyaoglu -- Jefferies -- Analyst
Great. And then maybe just following up on the regional questions. Is there any way to think about the current impact of subdued regional operations on the mainline operation and the traffic you're missing out on?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
I'm sorry. Could you repeat the question, Sheila? We missed a part of it.
Sheila Kahyaoglu -- Jefferies -- Analyst
Sorry. Can you -- just talking about the regional operations, is there any way to quantify how much you're missing out on traffic because of subdued regional operations?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Because of subdued regional operations, got it. It's really difficult to do, and we've actually taken a couple of cuts at it because the reality is that this is such a sort of unprecedented time of the industry where there are so many constraints on the infrastructure, so many issues with aircraft deliveries, resources, things like that, that it's hard to really isolate what affected it . In fact, when we look at it, what we find is through the pandemic, we've been able to sustain a lot more of the connectivity of our system through the regional jets. And those places where we've sustained the connectivity are really what's driving our yield growth.
And it's bringing in new customers that are not in necessarily large coastal metro areas. So it's hard to kind of isolate it just because there are so many variables at play, but from Robert and Derek's commentary, the regional jet, especially the wholly owned regional jet, is really key to helping our mainline fleet grow and recover its utilization.
Sheila Kahyaoglu -- Jefferies -- Analyst
OK. Great. Thank you so much.
Operator
One moment for our next question. And our next question coming from the line of Andrew Didora with Bank of America. Your line is open.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Hey. Good morning, everyone. Vasu, just a question on your 3Q revenue guide. When I look at other airlines, I think you guys are now the one that's not pointing to a sequential acceleration in total revenue growth 2Q to 3Q.
Why do you think that is? And are you just trying to be a little bit more conservative given what's going on out there in the macro environment right now?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Well, let me start by saying we're actually really encouraged by demand. I mean, the demand for our products has been high in like a historical way. That continues. And indeed, the way demand is coming back is both really encouraging and somewhat different than what was there before from my earlier commentary.
But really, when you see when you go from 2Q to 3Q it is, first of all, just a change in capacity production. We're taking a more conservative view of just how we size the airlines and the resources we have, per Robert's comments, and that impacts a lot of it. And then beyond that, really, there's a wide range that we have in unit revenue production because we're really encouraged by the trends that we see. But if we've learned anything over the last couple of quarters, things could go change a lot.
But right now, our optimism -- we see nothing really materially that would dilute our optimism in any way.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
OK. Understood. And then I've just been thinking, given the operational challenges across the entire industry, do you think that all -- that's going to influence the way maybe corporate's willingness to travel come the fall? Have you or Robert have had any conversations with kind of your big managed corporate clients that have maybe expressed concerns over this operational reliability? Just curious your thoughts on that. Thanks.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Look, I'll start and then others can pick up, too. Part of it -- and this kind of goes to some of my earlier commentary. One of the things that we're seeing is that like large corporate -- large contracted corporations are starting to just use different tools than what they had before. Prior to the pandemic, if corporations wanted to go and manage travel behavior, they could create more elaborate travel policies and hire a range of consultants and other firms to help manage that.
But now through the pandemic, video conferencing has become normalized. There's a lot more flexibility in the workplace and things like that. And so what we see actually is, in a lot of cases, corporations, though they may be -- they may not be enforcing travel policies as much as there was before, there is a lot more latitude. And so we'll see customers who will often just fly out of their travel policy, will pay more for a service that might have been there before, but they might be traveling less if they're worried about, for example, issues at London Heathrow.
So at large, we're really encouraged by what we see. But the way corporations are probably going to go and manage as a practical matter, it's probably going to be very different than what was there. And we see that in the data, right? There's fewer people who are very unconforming to a travel policy. It's hard to see how that changes.
But that's not necessarily a bad thing because we continue to see demand come in, and we're encouraged about where it may go, even if it goes to -- if it comes back differently.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
And Andrew, I'll just add one other point, and it's just this. Look, travel is coming back in record numbers, which is fantastic. And we have set really, really high standards for ourselves in terms of operational reliability. We, look, start out every day doing everything we can to get every single passenger, every flight to where it used to go on time.
But if you take a look at really what's going on in the second quarter, OK, we're not that far in terms of overall operating performance from where we have been historically. As a matter of fact, in the second quarter, American did better than it did in 2019. And if you take a look back at prior quarters of history, we're not that far off from other points as well. The fact of the matter is, is that, look, we have operating conditions that we have to be sensitive, too.
I can't nor can anyone else do anything about 27 out of 30 days of really severe weather in a number of our hubs that just ultimately result in flight canceling and that rolling from day to day. And when we talk about weather, please understand this. It's not weather, it's safety, OK? When there are air traffic control programs, when there's weather, when there's -- we're doing -- we're taking access to make sure that we ensure the safety of our folks, of not just our customers, but also the people on the ground. When ramps close, it's due to widening strikes.
And so those kind of things are things that we're always going to take into account. And you know what? There will be seasonal variability to what we do. Everybody is working very hard. I know that our government partners are working very hard.
The airlines are working very hard, and I know that the rest of the world will get to where the United States is, which, in the scheme of things, United States is doing very well compared to the rest of the world.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Very clear. Thank you very much.
Operator
And our next question coming from the line of Stephen Trent from Citi. Your line is open.
Stephen Trent -- Citi -- Analyst
Good morning, everybody, and thanks very much for taking my question. I just wanted to go back to something you mentioned earlier about investments that you've been making that have affected your near-term cost. I think people are pretty aware that you guys are making a big effort on the pilot side, and that makes sense. But could you elaborate maybe outside of crew whether you're making digital-type investments or other processes that can improve your throughput? Thank you.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Yes. Let me ask Maya Leibman, our chief information officer, to step in here.
Maya Leibman -- Executive Vice President, Chief Information Officer
We're super excited about a lot of the digital enhancements that we've been making. I'll separate them, as Robert said, into our main goals of operational reliability and profitability. On the reliability side, we've done so much to really shore up how we're responding in irregular operation to bring our crews back together. We've also really enhanced some focus on how we do gating at some of our larger airports, like Dallas and Charlotte.
And when we get better at that, what happens is we reduce the taxi times. So we save fuel. We dedicate more time to the turn, and we better utilize our assets. We've also done some interesting work in creating algorithms that help us, especially in markets like Charlotte, where we get these pop-up thunderstorms, where we can actually slow down the operation a little bit rather than use sort of a blunt force instrument, like canceling an entire bank.
So while flights may get a little bit delayed, at least they arrive as opposed to what we were doing previously. On the profitability side, we've done so much in terms of putting new products in the market like the ability to upsell to a higher cabin, which gives us -- we'd have more flexibility in how we price that product and the channels that can be purchased in. We've done a lot of improvements in overbooking technology. In a world where there's no change fee, there's a lot more volatility when it comes to cancels, closing cancels, and no-shows, and we have to have a better overbooking strategy for that.
You've heard Vasu mention how important our partnerships are and how we rely on them for revenue generation, where we need to create a much more seamless experience for our customers when they're traveling on us and for example, JetBlue or Alaska. And finally, you also heard Vasu talk about the loyalty program and how we have used it to really grow. Our co-brand spend, our enrollments are up, and engagement with the program is really up. So those are just a few of the things that we're doing.
Stephen Trent -- Citi -- Analyst
I'll bet. That's very helpful. And let me leave it there and then thanks very much.
Operator
Thank you. And I will now turn the call back over to Mr. Isom for any closing remarks.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Well, I'll just -- I'll close with -- pardon me. We're going to go to media next. OK. Great.
Media next. Thank you.
Operator
[Operator instructions] One moment for our next question. First question coming from Alison Sider. Your line is open.
Alison Sider -- Air Travel Reporter
Hi. Thanks so much. Just curious if you could share anything if you're seeing any delay or disruptions that are tied to not having enough spare parts or engines, if there's any kind of supply chain types of issues you're seeing there.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Thanks, Ali. I'll have our chief operating officer, David Seymour, take that one.
David Seymour -- Senior Vice President, Chief Operating Officer
Yes. Ali, appreciate the question there. Yes, that's something throughout the pandemic that we've been monitoring very closely working with our large OEM partners throughout to stay ahead of that. And so we've been doing a lot to provide forward look at what our requirements are.
So while we know the supply chain systems are tight, we've taken a lot of steps throughout the pandemic to stay ahead of that. And so right now, we're not experiencing those. But again, we know that they're not far away, and we're going to continue to monitor the coast.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Yeah. And Ali, I'll just say the biggest supply chain issue has been the aircraft manufacturers themselves. We haven't had the kind of delivery certainty that we'd like. So we know that our friends at Boeing and Airbus are working hard to get that back on track.
Alison Sider -- Air Travel Reporter
And then I guess, just on hiring, do you still have a lot of hiring left to do? Or has it shifted more toward just training and getting everyone up to speed and sort of up to the level of experience?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
So, Ali, I'll start on this. Look, at American Airlines, I know we have 12,000 more team members in position, but that resulted -- is a result of 20,000 team members that we've had to bring on board and get up to speed. We're behind 2,200 pilots, both this year and next year. We've done a great job, I think, in just about every other rank within our team to get the right people on board.
So from an American Airlines perspective, we're doing a good job. Of course, we'd like for the regionals to have more supply of new pilots, but we're working hard on that. Over the long run, though, coming to American Airlines is -- it's not only a great career, great competition, great benefits. The time to get here is now because if you ever want to get in and build seniority or take on a new role and lead, it's a good time to come to America.
Alison Sider -- Air Travel Reporter
Thanks.
Operator
Thank you. One moment for our next question. Our next question coming from the line of Mary Schlangenstein with Bloomberg. Your line is open.
Mary Schlangenstein -- Airline Reporter
Hey. Thank you. Derek, I wanted to see if you could clarify one thing. You said you have 140 to 150 planes on the ground, but you referred to mainline equivalent aircraft.
So can you be a little more specific? You've got 100 regional jets. And then what makes up the rest of that number?
Derek Kerr -- Vice Chairman, Chief Financial Officer
Yes. The mainline equivalent, our mainline aircraft, but what we've done is, instead of pulling aircraft out of the schedule, we lowered the utilization on those aircraft. So if you normally fly 10 hours a day, we now fly 9 hours a day. And if you take that hour across the entire fleet, it's equivalent to about 44, 45 aircraft.
So we haven't really pulled anything out of the schedule. We've floated. Now as we look forward, I think the right answer is we pulled down capacity in the third and fourth quarter, is to probably take some of those aircraft out and utilize them for spares and for maintenance lines and utilize them to make the reliability better in the airline. So I think as we go forward, we'll do it a little bit differently than we have and not -- and we'll raise the utilization on the rest of the fleet, but take some aircraft out to provide relief for David and his operating team to have more aircraft for maintenance and more aircraft for spares.
Mary Schlangenstein -- Airline Reporter
OK. Great. And how long do you expect that conditions in the industry are going to require American to limit its capacity?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Well, look, Mary, if I knew the answer to that one, we're getting really good in position. But look, I think it's dependent on the supply chains, aircraft manufacturers, and, ultimately, pilot supply to get all back in sync. We're doing our part. And as we've talked, we look at, from a mainline perspective, kind of getting everything back fully utilized over the course of this next year or so.
And then from a regional perspective, it's just going to take a little bit longer than that, maybe two or three years, to kind of get the supply chain for pilots back to where we need it to be. So that's the way I look at it. Overall, I am confident that everybody is getting back to work, and the variability will hopefully be reduced. And the kind of operating performance will improve from where it was even pre-pandemic.
Mary Schlangenstein -- Airline Reporter
Right. And when you refer to supply chains, are you actually talking about physical, like assets, like supplies that Ali asked about? Or are you talking more and predominantly about pilots alone?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
So well, pilots are one piece. But what I'm speaking of is, Mary, there's not a day that goes by where we don't have issues with provisioning our aircraft with pillows, blankets, plastic cups, food. At various times, we have issues with fueling. It's just -- the concessionaires at the airport.
It's just a myriad of things that have to -- that all have to come together to put an aircraft in the air. And yes, the supply chain for aircraft parts is one thing that we monitor closely. But it's all these other things that we really are dependent on so many other parts of the system. And then, again, I mentioned our government partners, it's our airport partners, and it's so many others.
We -- aviation touches just a broad swath of the economy. And we need it all to get back to working really well.
Mary Schlangenstein -- Airline Reporter
OK. Thanks very much.
Operator
Thank you. One moment for our next question. And our next question coming from the line of Kyle Arnold with Dallas Morning News. Your line is open.
Kyle Arnold -- Aviation Writer
Hey. Thanks so much. You mentioned the capacity trim in the third and the fourth quarter. Considering that July is almost over and the summer travel season, you have about a month left in it, where are you looking at making those costs? Are they going to be coming after the peak summer demand is over? And what kind of demand, I guess, are you seeing for the fall? And does that play into these capacity-cut decisions?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes. Kyle, thanks. This is Vasu. So first, a number of the cuts that we talked about have already been loaded into our published schedules that are there.
And then as we go into fall, effectively, we're going to take capacity in places where it can create the most operational benefit, which means, one, it can go and turn into the best quality -- the best level of reliability for our customers and also where we can reaccommodate people the best. So we've minimized any passenger disruption. And then as we go forward into later September, October and deeper into the winter, we have time yet to go and figure out how that goes. There's still a number of things that we're looking at before we make that determination.
Next question.
Operator
Our next question is coming from the line of Holden Wilen with Dallas Business Journal. Your line is open.
Holden Wilen -- Transportation Writer
Hi. Thanks for taking my question this morning. I just wanted to, I guess, get your thoughts on elasticity and if you have any concerns about that going forward. We're seeing fares continue to go up.
Do you have any concerns about as shares go up, what effect that might have on elasticity going forward?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Hey. Thanks for the question. This is Vasu. And no, we don't spend a lot of time worrying about it just for one simple reason that what we try to do is create the most value for our customers.
And when they like it, they pay us for it. And so a lot of what you see out there is so much demand that's surging back into travel. As people went through the pandemic, the -- you see in tons of data that consumers create experiences, and there's no experience like the experience of travel. And it's bringing a lot of people back.
And a lot of people are coming back and doing things for very different reasons than before. And so that's what's really driving things as much as anything. And concepts such as the elasticity of our demand, while it's probably intellectually satisfying to talk about it, the reality of it is that consumers really like what they're getting, being able to go and travel the world again, and they're taking advantage of it. And that's turning into relatively higher fares.
Holden Wilen -- Transportation Writer
Thanks. And then just a second -- my other question. You talked earlier about the issues at Heathrow. Just curious about maybe if you could talk about where you're sort of at overall from a recovery standpoint within international travel.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yeah. I can pick that up, too. So look, this -- the second quarter was very robust. Even though we didn't have all of our -- the wide-bodies that we had planned to take, nonetheless, those that we had performed extremely well.
We have -- there's a lot of pent-up demand for people going internationally, wherever that might be, transpacific, transatlantic, and long-haul South America. And we anticipate that that will continue through the year. Now in the summer, the international testing requirement was dropped. And while we saw some benefit of that, it was dropped pretty deep into the booking curve.
We anticipate there will be -- that they'll have a much more significant impact on travel demand as we go into the fall. And already, we're seeing indications of it. And last but not least, short-haul international, Mexico, Central America, the Caribbean, has been and remains extremely strong for American Airlines, and we anticipate that will be the case going forward.
Holden Wilen -- Transportation Writer
Thank you very much.
Operator
One moment for our next question. Our next question coming from the line of Lori Aratani with Washington Post. Your line is open.
Lori Aratani -- Air Travel Reporter
Hi. Thank you for taking the time. I wondered if you could go over the hiring numbers again, how many folks you've brought on, how close that gets you to where you want to be. And as a question on that, how much of the staffing issues are hiring versus training?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Thanks for that question. Look, our staffing issues are really making sure that we can cover the variability that's in the operations today. We have more people per flight hour per flight than we have ever had in our company's history on duty. What we're dealing with right now is just a lot of variability in the operating environment.
To get to the point where we are now, we've added 12,000 positions, gone out, and hired 20,000 people to actually fill those and cover for other attrition. The only shortfall that we have right now is really among our regional pilots. Of course, we're going to do things to make sure that we run the airline as reliably as possible and also take into account more extreme variability in operating conditions. We're doing that by pulling the schedule down a little bit as we go into the third quarter.
But we hope that all the work that we've done puts us in a position where we can restore service, get back up to speed as quickly as possible.
Lori Aratani -- Air Travel Reporter
Great. Thank you.
Operator
Thank you. And that does conclude the media Q&A. I will now turn it back to Mr. Robert Isom for closing remarks.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Thank you so much. And I'll just close with this. I am so proud of our team after fighting through this global pandemic for the last two and a half years, battling every step of the way, persevering, caring for customers and each other every single day. We set a couple of goals.
One is to return to profitability and to run the most reliable airline we could. And I am so pleased to report that we have returned to profitability. We intend to stay that way. And I know that our team is intent on making sure that we produce the kind of products that we're all proud of and that our customers want to fly.
So thanks for listening in, and we'll talk to you next quarter.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Scott Long -- Head of Investor Relations
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Derek Kerr -- Vice Chairman, Chief Financial Officer
Michael Linenberg -- Deutsche Bank -- Analyst
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Helane Becker -- Cowen and Company -- Analyst
Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer
Jamie Baker -- J.P. Morgan -- Analyst
Savi Syth -- Raymond James -- Analyst
Duane Pfennigwerth -- Evercore ISI -- Analyst
David Vernon -- AllianceBernstein -- Analyst
Daniel McKenzie -- Seaport Global Securities -- Analyst
Sheila Kahyaoglu -- Jefferies -- Analyst
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Stephen Trent -- Citi -- Analyst
Maya Leibman -- Executive Vice President, Chief Information Officer
Alison Sider -- Air Travel Reporter
David Seymour -- Senior Vice President, Chief Operating Officer
Mary Schlangenstein -- Airline Reporter
Kyle Arnold -- Aviation Writer
Holden Wilen -- Transportation Writer
Lori Aratani -- Air Travel Reporter
More AAL analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) Q2 2022 Earnings Call Jul 21, 2022, 8:30 a.m. Operator [Operator signoff] Duration: 0 minutes Call participants: Scott Long -- Head of Investor Relations Robert Isom -- Chief Executive Officer and Chief Recruitment Officer Derek Kerr -- Vice Chairman, Chief Financial Officer Michael Linenberg -- Deutsche Bank -- Analyst Vasu Raja -- Senior Vice President, Chief Commercial Officer Helane Becker -- Cowen and Company -- Analyst Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer Jamie Baker -- J.P. Morgan -- Analyst Savi Syth -- Raymond James -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst David Vernon -- AllianceBernstein -- Analyst Daniel McKenzie -- Seaport Global Securities -- Analyst Sheila Kahyaoglu -- Jefferies -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Stephen Trent -- Citi -- Analyst Maya Leibman -- Executive Vice President, Chief Information Officer Alison Sider -- Air Travel Reporter David Seymour -- Senior Vice President, Chief Operating Officer Mary Schlangenstein -- Airline Reporter Kyle Arnold -- Aviation Writer Holden Wilen -- Transportation Writer Lori Aratani -- Air Travel Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. All of us have to acknowledge that there are challenges in the national airspace, particularly in high-traffic locations like Florida and the Northeast, but I'm grateful for the sheer commitment that we have in the public and private sectors and management on the front line to facilitate the efficient return of travel.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Scott Long -- Head of Investor Relations Robert Isom -- Chief Executive Officer and Chief Recruitment Officer Derek Kerr -- Vice Chairman, Chief Financial Officer Michael Linenberg -- Deutsche Bank -- Analyst Vasu Raja -- Senior Vice President, Chief Commercial Officer Helane Becker -- Cowen and Company -- Analyst Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer Jamie Baker -- J.P. Morgan -- Analyst Savi Syth -- Raymond James -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst David Vernon -- AllianceBernstein -- Analyst Daniel McKenzie -- Seaport Global Securities -- Analyst Sheila Kahyaoglu -- Jefferies -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Stephen Trent -- Citi -- Analyst Maya Leibman -- Executive Vice President, Chief Information Officer Alison Sider -- Air Travel Reporter David Seymour -- Senior Vice President, Chief Operating Officer Mary Schlangenstein -- Airline Reporter Kyle Arnold -- Aviation Writer Holden Wilen -- Transportation Writer Lori Aratani -- Air Travel Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q2 2022 Earnings Call Jul 21, 2022, 8:30 a.m. [Operator instructions] And before we begin today, we must state that today's call contains forward-looking statements, including statements concerning future revenues, costs, forecast of capacity and fleet plans.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Scott Long -- Head of Investor Relations Robert Isom -- Chief Executive Officer and Chief Recruitment Officer Derek Kerr -- Vice Chairman, Chief Financial Officer Michael Linenberg -- Deutsche Bank -- Analyst Vasu Raja -- Senior Vice President, Chief Commercial Officer Helane Becker -- Cowen and Company -- Analyst Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer Jamie Baker -- J.P. Morgan -- Analyst Savi Syth -- Raymond James -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst David Vernon -- AllianceBernstein -- Analyst Daniel McKenzie -- Seaport Global Securities -- Analyst Sheila Kahyaoglu -- Jefferies -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Stephen Trent -- Citi -- Analyst Maya Leibman -- Executive Vice President, Chief Information Officer Alison Sider -- Air Travel Reporter David Seymour -- Senior Vice President, Chief Operating Officer Mary Schlangenstein -- Airline Reporter Kyle Arnold -- Aviation Writer Holden Wilen -- Transportation Writer Lori Aratani -- Air Travel Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q2 2022 Earnings Call Jul 21, 2022, 8:30 a.m. As Robert noted, our second quarter revenue was $13.4 billion, was 12.2% higher, despite flying 8.5% less capacity than the same period in 2019. Leisure demand continued to lead the way, but the acceleration of business and long-haul international demand contributed to the strength we saw in the quarter.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Scott Long -- Head of Investor Relations Robert Isom -- Chief Executive Officer and Chief Recruitment Officer Derek Kerr -- Vice Chairman, Chief Financial Officer Michael Linenberg -- Deutsche Bank -- Analyst Vasu Raja -- Senior Vice President, Chief Commercial Officer Helane Becker -- Cowen and Company -- Analyst Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer Jamie Baker -- J.P. Morgan -- Analyst Savi Syth -- Raymond James -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst David Vernon -- AllianceBernstein -- Analyst Daniel McKenzie -- Seaport Global Securities -- Analyst Sheila Kahyaoglu -- Jefferies -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Stephen Trent -- Citi -- Analyst Maya Leibman -- Executive Vice President, Chief Information Officer Alison Sider -- Air Travel Reporter David Seymour -- Senior Vice President, Chief Operating Officer Mary Schlangenstein -- Airline Reporter Kyle Arnold -- Aviation Writer Holden Wilen -- Transportation Writer Lori Aratani -- Air Travel Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q2 2022 Earnings Call Jul 21, 2022, 8:30 a.m. After Derek's comments, we'll open the call for analyst questions, followed by questions from the media.
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3368.0
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2022-07-21 00:00:00 UTC
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Weekly Jobless Claims Jumped to Highest Level in Eight Months
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AAL
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https://www.nasdaq.com/articles/weekly-jobless-claims-jumped-to-highest-level-in-eight-months
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nan
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We begin a new trading day, in what has so far been a successful trading week, seeing the European Central Bank (ECB) raising interest rates for the first time in 11 years. This is the EU’s attempt to catch up to the U.S., Canada and Great Britain in tightening monetary policy in the wake of inflation climbing across the globe.
The ECB had been expected to make this move since ECB President Christine Lagarde signaled tightening was in the forecast, but today’s 50 basis-point (bps) hike wasn’t much considered by analysts until very recently, when bigger moves appeared necessary to keep up with its Western allies. Further, the ECB expected “further normalization” to come in following ECB meetings.
Initial Jobless Claims cracked a psychologically unpleasant milestone this morning, posting 251K new claims last week which mark the highest rate since November 2020. New claims’ four-week moving average swooped up 4500 in just one week, to 240,500. This is a clear sign that the historically robust labor market in the U.S. is beginning to shed some employment, at least on the near term.
Continuing Claims also rose significantly, +51K week over week to 1.384 million — the highest level since the week of April 27th. And because longer-term jobless claims report a week in arrears from initial claims, we may expect these figures to move higher next week as well. That said, sub-1.4 million on longer-term jobless claims is still historically low, and even higher new claims may not result in extended unemployment, especially with so many job openings in the U.S. currently.
The Philly Fed survey for July notched its fourth-straight down month, posting -12.3 from an expected +1.6 and the previous month’s -3.3. This is the lowest read we’ve seen on Philadelphia manufacturing since May 2020 — the early segment of the pandemic. In the report, 24% of survey respondents reported activity decreases, twice as many as reported increases.
In Q2 earnings results, AT&T (T) managed to beat expectations on both top and bottom lines: earnings of 65 cents per share outpaced the Zacks consensus by 5 cents, while revenues of $29.6 billion rose past the expected $29.3 billion. Yet shares are trading down -5% in today’s pre-market, as the company reported a big cash-flow miss from expectations. Shares are still positive year to date.
American Airlines (AAL) posted mixed Q2 results this morning, with earnings of 76 per share missing estimates by 3 cents on $13.42 billion in sales, which marginally topped Zacks consensus estimates. Shares have slid -3% on the news, and are down -15% year to date so far.
Homebuilder D.R. Horton (DHI) was also mixed in its fiscal Q3 earnings report ahead of the bell, with earnings per share of $4.67 beating consensus by +3.55% while revenues of $8.79 billion missed expectations by -1.3%. Shares are down marginally in early trading, but the stock is -33% year to date.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AT&T Inc. (T): Free Stock Analysis Report
D.R. Horton, Inc. (DHI): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) posted mixed Q2 results this morning, with earnings of 76 per share missing estimates by 3 cents on $13.42 billion in sales, which marginally topped Zacks consensus estimates. American Airlines Group Inc. (AAL): Free Stock Analysis Report This is the EU’s attempt to catch up to the U.S., Canada and Great Britain in tightening monetary policy in the wake of inflation climbing across the globe.
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American Airlines (AAL) posted mixed Q2 results this morning, with earnings of 76 per share missing estimates by 3 cents on $13.42 billion in sales, which marginally topped Zacks consensus estimates. American Airlines Group Inc. (AAL): Free Stock Analysis Report In Q2 earnings results, AT&T (T) managed to beat expectations on both top and bottom lines: earnings of 65 cents per share outpaced the Zacks consensus by 5 cents, while revenues of $29.6 billion rose past the expected $29.3 billion.
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American Airlines (AAL) posted mixed Q2 results this morning, with earnings of 76 per share missing estimates by 3 cents on $13.42 billion in sales, which marginally topped Zacks consensus estimates. American Airlines Group Inc. (AAL): Free Stock Analysis Report And because longer-term jobless claims report a week in arrears from initial claims, we may expect these figures to move higher next week as well.
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American Airlines (AAL) posted mixed Q2 results this morning, with earnings of 76 per share missing estimates by 3 cents on $13.42 billion in sales, which marginally topped Zacks consensus estimates. American Airlines Group Inc. (AAL): Free Stock Analysis Report Shares are down marginally in early trading, but the stock is -33% year to date.
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3369.0
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2022-07-21 00:00:00 UTC
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Softness in Econ Reads, ECB Raises Rates; More Mixed Q2
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AAL
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https://www.nasdaq.com/articles/softness-in-econ-reads-ecb-raises-rates-more-mixed-q2
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nan
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Thursday, July 21, 2022
We begin a new trading day, in what has so far been a successful trading week, seeing the European Central Bank (ECB) raising interest rates for the first time in 11 years. This is the EU’s attempt to catch up to the U.S., Canada and Great Britain in tightening monetary policy in the wake of inflation climbing across the globe.
The ECB had been expected to make this move since ECB President Christine Lagarde signaled tightening was in the forecast, but today’s 50 basis-point (bps) hike wasn’t much considered by analysts until very recently, when bigger moves appeared necessary to keep up with its Western allies. Further, the ECB expected “further normalization” to come in following ECB meetings.
Initial Jobless Claims cracked a psychologically unpleasant milestone this morning, posting 251K new claims last week which mark the highest rate since November 2020. New claims’ four-week moving average swooped up 4500 in just one week, to 240,500. This is a clear sign that the historically robust labor market in the U.S. is beginning to shed some employment, at least on the near term.
Continuing Claims also rose significantly, +51K week over week to 1.384 million — the highest level since the week of April 27th. And because longer-term jobless claims report a week in arrears from initial claims, we may expect these figures to move higher next week as well. That said, sub-1.4 million on longer-term jobless claims is still historically low, and even higher new claims may not result in extended unemployment, especially with so many job openings in the U.S. currently.
The Philly Fed survey for July notched its fourth-straight down month, posting -12.3 from an expected +1.6 and the previous month’s -3.3. This is the lowest read we’ve seen on Philadelphia manufacturing since May 2020 — the early segment of the pandemic. In the report, 24% of survey respondents reported activity decreases, twice as many as reported increases.
In Q2 earnings results, AT&T T managed to beat expectations on both top and bottom lines: earnings of 65 cents per share outpaced the Zacks consensus by 5 cents, while revenues of $29.6 billion rose past the expected $29.3 billion. Yet shares are trading down -5% in today’s pre-market, as the company reported a big cash-flow miss from expectations. Shares are still positive year to date.
American Airlines AAL posted mixed Q2 results this morning, with earnings of 76 per share missing estimates by 3 cents on $13.42 billion in sales, which marginally topped Zacks consensus estimates. Shares have slid -3% on the news, and are down -15% year to date so far. For more on AAL's earnings, click here.
Homebuilder D.R. Horton DHI was also mixed in its fiscal Q3 earnings report ahead of the bell, with earnings per share of $4.67 beating consensus by +3.55% while revenues of $8.79 billion missed expectations by -1.3%. Shares are down marginally in early trading, but the stock is -33% year to date. For more on DHI's earnings, click here.
Questions or comments about this article and/or its author? Click here>>
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AT&T Inc. (T): Free Stock Analysis Report
D.R. Horton, Inc. (DHI): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL posted mixed Q2 results this morning, with earnings of 76 per share missing estimates by 3 cents on $13.42 billion in sales, which marginally topped Zacks consensus estimates. For more on AAL's earnings, click here. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines AAL posted mixed Q2 results this morning, with earnings of 76 per share missing estimates by 3 cents on $13.42 billion in sales, which marginally topped Zacks consensus estimates. American Airlines Group Inc. (AAL): Free Stock Analysis Report For more on AAL's earnings, click here.
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American Airlines AAL posted mixed Q2 results this morning, with earnings of 76 per share missing estimates by 3 cents on $13.42 billion in sales, which marginally topped Zacks consensus estimates. For more on AAL's earnings, click here. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines AAL posted mixed Q2 results this morning, with earnings of 76 per share missing estimates by 3 cents on $13.42 billion in sales, which marginally topped Zacks consensus estimates. For more on AAL's earnings, click here. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3370.0
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2022-07-21 00:00:00 UTC
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Pre-Market Most Active for Jul 21, 2022 : CCL, TQQQ, SQQQ, OLMA, NOK, TSLA, AAL, QQQ, F, T, AMC, NIO
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-jul-21-2022-%3A-ccl-tqqq-sqqq-olma-nok-tsla-aal-qqq-f-t-amc-nio
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The NASDAQ 100 Pre-Market Indicator is up 67.26 to 12,506.94. The total Pre-Market volume is currently 36,989,360 shares traded.
The following are the most active stocks for the pre-market session:
Carnival Corporation (CCL) is -1.4 at $9.69, with 10,163,962 shares traded. CCL's current last sale is 69.21% of the target price of $14.
ProShares UltraPro QQQ (TQQQ) is +0.1 at $29.99, with 3,484,771 shares traded. This represents a 40.67% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -0.15 at $45.61, with 2,535,713 shares traded. This represents a 62.02% increase from its 52 Week Low.
Olema Pharmaceuticals, Inc. (OLMA) is +0.56 at $5.27, with 1,536,550 shares traded. As reported by Zacks, the current mean recommendation for OLMA is in the "strong buy range".
Nokia Corporation (NOK) is +0.36 at $5.06, with 1,475,200 shares traded. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
Tesla, Inc. (TSLA) is +18.49 at $760.99, with 1,014,405 shares traded. TSLA's current last sale is 82.36% of the target price of $924.
American Airlines Group, Inc. (AAL) is -0.54 at $14.67, with 1,013,277 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. The consensus EPS forecast is $0.79. Smarter Analyst Reports: American Airlines Jumps 2% on Lower-than-Feared Quarterly Loss, Revenue Beats
Invesco QQQ Trust, Series 1 (QQQ) is +0.3201 at $303.35, with 1,001,513 shares traded. This represents a 12.65% increase from its 52 Week Low.
Ford Motor Company (F) is +0.42 at $13.15, with 999,309 shares traded.F is scheduled to provide an earnings report on 7/27/2022, for the fiscal quarter ending Jun2022. The consensus earnings per share forecast is 0.43 per share, which represents a 13 percent increase over the EPS one Year Ago
AT&T Inc. (T) is -0.65 at $19.83, with 958,994 shares traded. Smarter Analyst Reports: AT&T Posts Strong Q3 Results on Customer Growth
AMC Entertainment Holdings, Inc. (AMC) is +0.43 at $17.95, with 824,356 shares traded. AMC's current last sale is 359% of the target price of $5.
NIO Inc. (NIO) is -0.27 at $20.10, with 743,683 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is -0.54 at $14.67, with 1,013,277 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. Smarter Analyst Reports: American Airlines Jumps 2% on Lower-than-Feared Quarterly Loss, Revenue Beats
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American Airlines Group, Inc. (AAL) is -0.54 at $14.67, with 1,013,277 shares traded. As reported by Zacks, the current mean recommendation for OLMA is in the "strong buy range". Smarter Analyst Reports: American Airlines Jumps 2% on Lower-than-Feared Quarterly Loss, Revenue Beats
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American Airlines Group, Inc. (AAL) is -0.54 at $14.67, with 1,013,277 shares traded. The consensus earnings per share forecast is 0.43 per share, which represents a 13 percent increase over the EPS one Year Ago AT&T Inc. (T) is -0.65 at $19.83, with 958,994 shares traded.
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American Airlines Group, Inc. (AAL) is -0.54 at $14.67, with 1,013,277 shares traded. As reported by Zacks, the current mean recommendation for OLMA is in the "strong buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022.
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3371.0
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2022-07-21 00:00:00 UTC
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US STOCKS-S&P, 500, Nasdaq set to open higher on upbeat Tesla results
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AAL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-set-to-open-higher-on-upbeat-tesla-results
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nan
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By Shreyashi Sanyal
July 21 (Reuters) - The S&P 500 and the Nasdaq were set to open higher on Thursday as electric automaker Tesla topped Wall Street's profit target, while futures tracking the Dow struggled for direction.
Tesla TSLA.O rose 3% in premarket trading as its quarterly profit benefited from a string of price increases for its cars. That helped offset production challenges.
Positive earnings reports from Tesla and streaming giant Netflix Inc NFLX.O have of late boosted megacap growth stocks, which have been under pressure from rising interest rates.
Shares of Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O also gained between 0.6% and 0.7%.
"Is it possible that Tesla provides a short term rally? Yes, absolutely," said Giuseppe Sette, president of the quantitative research firm Toggle.
"However, it seems likely that if we are truly in an age of liquidity withdrawal and quantitative tightening, rallies on high-momentum stocks like Tesla might not be secular or cyclical, but just rather short-term."
While market participants took comfort in the positive results, they continue to await anxiously a Federal Reserve meeting next week where policymakers are expected to raise interest rates by 75 basis points to curb runaway inflation.
The rate decision will be followed by the crucial second-quarter U.S. gross domestic product data, which is likely to be negative again.
By one common rule of thumb, two quarters of negative GDP growth would mean the United States is already in a recession.
"The backdrop for U.S. corporate earnings looks challenging. With slowing economic growth, a strong US dollar and margins looking stretched, we suspect S&P 500 companies will struggle to meet the optimistic expectations embedded in analyst forecasts," said Thomas Mathews, markets economist at Capital Economics.
Analysts expect aggregate year-on-year S&P 500 profit to grow 5.9% for the second quarter, down from the 6.8% estimate at the start of the three-month period, according to Refinitiv data.
Meanwhile, data showed the number of Americans filing new claims for unemployment benefits rose to the highest in eight months, suggesting some cooling in the labor market amid tighter monetary policy and financial conditions.
At 8:38 a.m. ET, Dow e-minis 1YMcv1 were down 25 points, or 0.08%, S&P 500 e-minis EScv1 were up 5 points, or 0.13%, and Nasdaq 100 e-minis NQcv1 were up 53.25 points, or 0.43%.
Falling oil prices hit Chevron Corp CVX.N, which fell 1.9%, while other energy companies including Marathon Oil Corp MRO.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N dropped between 1.9% and 2.5%.
Shares of U.S. airlines fell, with United Airlines Holdings UAL.O down 6% and American Airlines AAL.O off 3%.
United Airlines posted a lower-than-expected quarterly profit, while American Airlines said cost pressure would remain elevated in the current quarter.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Additional reporting by Medha Singh Editing by Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of U.S. airlines fell, with United Airlines Holdings UAL.O down 6% and American Airlines AAL.O off 3%. By Shreyashi Sanyal July 21 (Reuters) - The S&P 500 and the Nasdaq were set to open higher on Thursday as electric automaker Tesla topped Wall Street's profit target, while futures tracking the Dow struggled for direction. While market participants took comfort in the positive results, they continue to await anxiously a Federal Reserve meeting next week where policymakers are expected to raise interest rates by 75 basis points to curb runaway inflation.
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Shares of U.S. airlines fell, with United Airlines Holdings UAL.O down 6% and American Airlines AAL.O off 3%. Falling oil prices hit Chevron Corp CVX.N, which fell 1.9%, while other energy companies including Marathon Oil Corp MRO.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N dropped between 1.9% and 2.5%. United Airlines posted a lower-than-expected quarterly profit, while American Airlines said cost pressure would remain elevated in the current quarter.
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Shares of U.S. airlines fell, with United Airlines Holdings UAL.O down 6% and American Airlines AAL.O off 3%. Positive earnings reports from Tesla and streaming giant Netflix Inc NFLX.O have of late boosted megacap growth stocks, which have been under pressure from rising interest rates. United Airlines posted a lower-than-expected quarterly profit, while American Airlines said cost pressure would remain elevated in the current quarter.
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Shares of U.S. airlines fell, with United Airlines Holdings UAL.O down 6% and American Airlines AAL.O off 3%. That helped offset production challenges. While market participants took comfort in the positive results, they continue to await anxiously a Federal Reserve meeting next week where policymakers are expected to raise interest rates by 75 basis points to curb runaway inflation.
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3372.0
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2022-07-21 00:00:00 UTC
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American Airlines (AAL) Q2 Earnings Lag Estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-q2-earnings-lag-estimates-0
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American Airlines (AAL) came out with quarterly earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.79 per share. This compares to loss of $1.69 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -3.80%. A quarter ago, it was expected that this world's largest airline would post a loss of $2.43 per share when it actually produced a loss of $2.32, delivering a surprise of 4.53%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $13.42 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 0.09%. This compares to year-ago revenues of $7.48 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
American Airlines shares have lost about 15.3% since the beginning of the year versus the S&P 500's decline of -16.9%.
What's Next for American Airlines?
While American Airlines has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for American Airlines: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.32 on $13.4 billion in revenues for the coming quarter and -$1.02 on $48.3 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Hawaiian Holdings (HA), has yet to report results for the quarter ended June 2022. The results are expected to be released on July 26.
This parent company of Hawaiian Airlines is expected to post quarterly loss of $0.86 per share in its upcoming report, which represents a year-over-year change of +40.3%. The consensus EPS estimate for the quarter has been revised 33.3% lower over the last 30 days to the current level.
Hawaiian Holdings' revenues are expected to be $665.08 million, up 61.9% from the year-ago quarter.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) came out with quarterly earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.79 per share. American Airlines Group Inc. (AAL): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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American Airlines (AAL) came out with quarterly earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.79 per share. American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $13.42 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 0.09%.
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American Airlines (AAL) came out with quarterly earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.79 per share. American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $13.42 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 0.09%.
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American Airlines (AAL) came out with quarterly earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.79 per share. American Airlines Group Inc. (AAL): Free Stock Analysis Report Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
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3373.0
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2022-07-21 00:00:00 UTC
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ANALYSIS-Aviation sector feels heat on emissions at air show
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AAL
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https://www.nasdaq.com/articles/analysis-aviation-sector-feels-heat-on-emissions-at-air-show
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nan
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By David Shepardson and Paul Sandle
FARNBOROUGH, England July 21 (Reuters) - Record temperatures at the Farnborough Airshow this week have ratcheted up pressure on global aviation to shrink airplane emissions and turn a raft of potential solutions - many of which are yet to be proven - into reality.
The airline industry, responsible for nearly 3% of global carbon dioxide emissions, faces formidable challenges to meet ambitious goals to cut emissions. Global airlines and aerospace manufacturers have vowed to be net zero by 2050.
The boss of planemaker Airbus AIR.PA said the heatwave was a strong reminder of the need for urgency.
"I consider there is urgency, speed is of the essence in the transition," Guillaume Faury told Reuters. "And in an industry that is hard to abate ... we need to be moving fast."
Pressure is coming from governments and customers, especially corporate travelers whose companies are looking to reduce carbon footprints.
"We have a basket of opportunities staring us in the face, where we just need to figure out which levers to pull in what timeframe with what economics to enable that transition," United Airlines UAL.O Chief Sustainability Officer Lauren Riley said.
The United States and Europe are trying to boost production of sustainable aviation fuel, or SAF, which is now made in miniscule quantities from feedstocks like used cooking oil, and can be two to five times more expensive than standard jet fuel.
In the United States, Congress has to date failed to approve tax credits that would make SAF cost competitive.
"SAF is the only solution that allows you in the short term to have an impact because you can take an airplane you have operated for the last 10 years and turn it into operating now using SAF," said former Rolls-Royce and Airbus executive Eric Schulz, Chief Executive of SHZ Consulting.
"So if you are talking about a short term solution, that's the only one."
Rolls-Royce RR.L says biofuels cannot not solve the problem alone.
"There's only so much used cooking oil you can synthesize," said the engine maker's Chief Executive Officer Grazia Vittadini.
"If you really don't want to start competing with agriculture, with the use of potable water, you need to go into synthetic fuel."
The problem is there is not much "green" hydrogen - produced using renewable energy - around to combine with captured carbon to make it, she said.
"The uptake of SAF is absolutely a bottleneck we need to work on collectively," she said.
Other short-term options include boosting the efficiency of engines, speeding up the replacement of older less efficient aircraft and improving the routing of airplanes to cut emissions.
International Air Transport Association Director General Willie Walsh said cutting carbon was not free. "There is going to be a cost to the transition to net zero," he said. That will inevitably mean higher air fares, industry leaders say.
LONG FLIGHT PATH
Companies are working on longer-term solutions like electric or hydrogen-powered airplanes, but critics say those are still a long way from reality.
"Hydrogen is absolutely a solution, but it's not for tomorrow morning because the changes to be done in design are so massive that it's going to take more than one generation of airplanes to get there," Schulz said.
Airbus and more than a half dozen airlines said at the show they had signed letters of intent to potentially buy carbon removal credits to offset the emissions from air travel from a planned direct air carbon capture and storage facility in Texas.
The technology has yet to be proven up to scale. And it's expensive, costing hundreds of dollars to capture just a ton of CO2. Several previous carbon capture and storage efforts have failed.
The United Nations' International Civil Aviation Organization (ICAO) is expected to try to reach agreement this year on new rules to cut emissions from international aviation.
Boeing BA.N Commercial Airplanes Chief Executive Stan Deal said it was important new requirements were "underpinned by real technology that can meet the standards."
The prior ICAO standards were criticized by many environmentalists for doing little to cut emissions.
While pros and cons of competing technologies were debated, the need for progress appeared settled.
"The industry doesn't need any more signals," said Embraer Commercial Aviation CEO Arjan Meijer.
"You only have to walk around the air show here to see that sustainability is at the front of everyone's mind. And if you compare what you see today to what you saw three years ago, it's a massive shift."
(Reporting by David Shepardson and Paul Sandle Additional reporting by Nick Carey and Tim Hepher Editing by Mark Potter)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"We have a basket of opportunities staring us in the face, where we just need to figure out which levers to pull in what timeframe with what economics to enable that transition," United Airlines UAL.O Chief Sustainability Officer Lauren Riley said. In the United States, Congress has to date failed to approve tax credits that would make SAF cost competitive. Boeing BA.N Commercial Airplanes Chief Executive Stan Deal said it was important new requirements were "underpinned by real technology that can meet the standards."
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By David Shepardson and Paul Sandle FARNBOROUGH, England July 21 (Reuters) - Record temperatures at the Farnborough Airshow this week have ratcheted up pressure on global aviation to shrink airplane emissions and turn a raft of potential solutions - many of which are yet to be proven - into reality. "We have a basket of opportunities staring us in the face, where we just need to figure out which levers to pull in what timeframe with what economics to enable that transition," United Airlines UAL.O Chief Sustainability Officer Lauren Riley said. "SAF is the only solution that allows you in the short term to have an impact because you can take an airplane you have operated for the last 10 years and turn it into operating now using SAF," said former Rolls-Royce and Airbus executive Eric Schulz, Chief Executive of SHZ Consulting.
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By David Shepardson and Paul Sandle FARNBOROUGH, England July 21 (Reuters) - Record temperatures at the Farnborough Airshow this week have ratcheted up pressure on global aviation to shrink airplane emissions and turn a raft of potential solutions - many of which are yet to be proven - into reality. "SAF is the only solution that allows you in the short term to have an impact because you can take an airplane you have operated for the last 10 years and turn it into operating now using SAF," said former Rolls-Royce and Airbus executive Eric Schulz, Chief Executive of SHZ Consulting. Airbus and more than a half dozen airlines said at the show they had signed letters of intent to potentially buy carbon removal credits to offset the emissions from air travel from a planned direct air carbon capture and storage facility in Texas.
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"SAF is the only solution that allows you in the short term to have an impact because you can take an airplane you have operated for the last 10 years and turn it into operating now using SAF," said former Rolls-Royce and Airbus executive Eric Schulz, Chief Executive of SHZ Consulting. "There is going to be a cost to the transition to net zero," he said. Airbus and more than a half dozen airlines said at the show they had signed letters of intent to potentially buy carbon removal credits to offset the emissions from air travel from a planned direct air carbon capture and storage facility in Texas.
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3374.0
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2022-07-21 00:00:00 UTC
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American Airlines Group Inc Q2 Earnings Summary
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-q2-earnings-summary
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(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL):
Earnings: $476 million in Q2 vs. $19 million in the same period last year. EPS: $0.68 in Q2 vs. $0.03 in the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $533 million or $0.76 per share for the period.
Analysts projected $0.76 per share Revenue: $13.42 billion in Q2 vs. $7.48 billion in the same period last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL): Earnings: $476 million in Q2 vs. $19 million in the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $533 million or $0.76 per share for the period. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL): Earnings: $476 million in Q2 vs. $19 million in the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $533 million or $0.76 per share for the period. Analysts projected $0.76 per share Revenue: $13.42 billion in Q2 vs. $7.48 billion in the same period last year.
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(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL): Earnings: $476 million in Q2 vs. $19 million in the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $533 million or $0.76 per share for the period. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL): Earnings: $476 million in Q2 vs. $19 million in the same period last year. EPS: $0.68 in Q2 vs. $0.03 in the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $533 million or $0.76 per share for the period.
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3375.0
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2022-07-21 00:00:00 UTC
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American Airlines books first adjusted profit since start of pandemic
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AAL
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https://www.nasdaq.com/articles/american-airlines-books-first-adjusted-profit-since-start-of-pandemic
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nan
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Adds background, details from the release
July 21 (Reuters) - American Airlines Group Inc AAL.O on Thursday posted its first adjusted quarterly profit since the onset of the COVID-19 pandemic as a boom in travel demand more than offset higher costs.
The lifting of coronavirus curbs and bottled-up travel demand have sparked the strongest summer for U.S. carriers in three years, putting them on track for a profitable quarter despite a larger fuel bill.
American Airlines reported an adjusted profit of $533 million, or $0.76 per share, for the quarter ended June 30, compared with a loss of $1.09 billion, or $1.69 per share, a year earlier.
The Fort Worth, Texas-based airline's operating revenue rose to about $13.42 billion, from about $7.48 billion a year earlier.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Aditya Soni)
((Aishwarya.Nair@thomsonreuters.com; +91-8067494421;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background, details from the release July 21 (Reuters) - American Airlines Group Inc AAL.O on Thursday posted its first adjusted quarterly profit since the onset of the COVID-19 pandemic as a boom in travel demand more than offset higher costs. The lifting of coronavirus curbs and bottled-up travel demand have sparked the strongest summer for U.S. carriers in three years, putting them on track for a profitable quarter despite a larger fuel bill. (Reporting by Aishwarya Nair in Bengaluru; Editing by Aditya Soni) ((Aishwarya.Nair@thomsonreuters.com; +91-8067494421;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background, details from the release July 21 (Reuters) - American Airlines Group Inc AAL.O on Thursday posted its first adjusted quarterly profit since the onset of the COVID-19 pandemic as a boom in travel demand more than offset higher costs. American Airlines reported an adjusted profit of $533 million, or $0.76 per share, for the quarter ended June 30, compared with a loss of $1.09 billion, or $1.69 per share, a year earlier. The Fort Worth, Texas-based airline's operating revenue rose to about $13.42 billion, from about $7.48 billion a year earlier.
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Adds background, details from the release July 21 (Reuters) - American Airlines Group Inc AAL.O on Thursday posted its first adjusted quarterly profit since the onset of the COVID-19 pandemic as a boom in travel demand more than offset higher costs. American Airlines reported an adjusted profit of $533 million, or $0.76 per share, for the quarter ended June 30, compared with a loss of $1.09 billion, or $1.69 per share, a year earlier. (Reporting by Aishwarya Nair in Bengaluru; Editing by Aditya Soni) ((Aishwarya.Nair@thomsonreuters.com; +91-8067494421;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background, details from the release July 21 (Reuters) - American Airlines Group Inc AAL.O on Thursday posted its first adjusted quarterly profit since the onset of the COVID-19 pandemic as a boom in travel demand more than offset higher costs. The lifting of coronavirus curbs and bottled-up travel demand have sparked the strongest summer for U.S. carriers in three years, putting them on track for a profitable quarter despite a larger fuel bill. American Airlines reported an adjusted profit of $533 million, or $0.76 per share, for the quarter ended June 30, compared with a loss of $1.09 billion, or $1.69 per share, a year earlier.
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3376.0
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2022-07-21 00:00:00 UTC
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American Airlines Group Q2 22 Earnings Conference Call At 8:30 AM ET
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-q2-22-earnings-conference-call-at-8%3A30-am-et
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on July 21, 2022, to discuss Q2 22 earnings results.
To access the live webcast, log on to https://americanairlines.gcs-web.com/events-and-presentations/presentations
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on July 21, 2022, to discuss Q2 22 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events-and-presentations/presentations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on July 21, 2022, to discuss Q2 22 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events-and-presentations/presentations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on July 21, 2022, to discuss Q2 22 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events-and-presentations/presentations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on July 21, 2022, to discuss Q2 22 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events-and-presentations/presentations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3377.0
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2022-07-21 00:00:00 UTC
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Anglo American sees higher annual diamond output amid robust demand
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AAL
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https://www.nasdaq.com/articles/anglo-american-sees-higher-annual-diamond-output-amid-robust-demand
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nan
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nan
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Adds comment, outlook on steelmaking coal, details and background
July 21 (Reuters) - Anglo American AAL.L on Thursday forecast a higher annual output of rough diamonds, driven by demand for diamonds from non-conflict zones amid the Russia-Ukraine crisis, although the miner posted a 9% fall in its quarterly group production.
With Russian gold and diamonds off-limits due to sanctions against companies, including Alrosa ALRS.MM - the world's largest producer of rough diamonds that competes with Anglo American's unit De Beers, demand for rough diamonds has risen this year.
Russia is the world's biggest producer of natural diamonds, according to the World Diamond Council. .
"Combination of sanctions against Russia, decisions from a number of U.S.-based jewellery businesses to apply their own restrictions on purchases of Russian diamonds ... has the potential to underpin continued robust demand for De Beers' rough diamonds," the miner said.
Anglo American said it expects rough diamonds' full-year production to be at 32 million-34 million carats, up from a prior range of 30 million to 33 million carats.
The London-listed miner, however, reported a 9% fall in second-quarter output on lower grades in copper and lack of water availability in Chile, ramp-up of the Aquila longwall in steelmaking coal as well as planned maintenance at the Minas-Rio iron ore mine in Brazil.
Chile, the world's no. 1 copper producer and the no. 2 producer of battery metal lithium, faces drought conditions that have lasted more than a decade and impacted mining output.
(Reporting by Shanima A in Bengaluru; Editing by Vinay Dwivedi and Sherry Jacob-Phillips)
((shanima.a@thomsonreuters.com; (Direct: +91 77 6034 7399 );))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds comment, outlook on steelmaking coal, details and background July 21 (Reuters) - Anglo American AAL.L on Thursday forecast a higher annual output of rough diamonds, driven by demand for diamonds from non-conflict zones amid the Russia-Ukraine crisis, although the miner posted a 9% fall in its quarterly group production. The London-listed miner, however, reported a 9% fall in second-quarter output on lower grades in copper and lack of water availability in Chile, ramp-up of the Aquila longwall in steelmaking coal as well as planned maintenance at the Minas-Rio iron ore mine in Brazil. 2 producer of battery metal lithium, faces drought conditions that have lasted more than a decade and impacted mining output.
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Adds comment, outlook on steelmaking coal, details and background July 21 (Reuters) - Anglo American AAL.L on Thursday forecast a higher annual output of rough diamonds, driven by demand for diamonds from non-conflict zones amid the Russia-Ukraine crisis, although the miner posted a 9% fall in its quarterly group production. With Russian gold and diamonds off-limits due to sanctions against companies, including Alrosa ALRS.MM - the world's largest producer of rough diamonds that competes with Anglo American's unit De Beers, demand for rough diamonds has risen this year. "Combination of sanctions against Russia, decisions from a number of U.S.-based jewellery businesses to apply their own restrictions on purchases of Russian diamonds ... has the potential to underpin continued robust demand for De Beers' rough diamonds," the miner said.
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Adds comment, outlook on steelmaking coal, details and background July 21 (Reuters) - Anglo American AAL.L on Thursday forecast a higher annual output of rough diamonds, driven by demand for diamonds from non-conflict zones amid the Russia-Ukraine crisis, although the miner posted a 9% fall in its quarterly group production. With Russian gold and diamonds off-limits due to sanctions against companies, including Alrosa ALRS.MM - the world's largest producer of rough diamonds that competes with Anglo American's unit De Beers, demand for rough diamonds has risen this year. Russia is the world's biggest producer of natural diamonds, according to the World Diamond Council.
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Adds comment, outlook on steelmaking coal, details and background July 21 (Reuters) - Anglo American AAL.L on Thursday forecast a higher annual output of rough diamonds, driven by demand for diamonds from non-conflict zones amid the Russia-Ukraine crisis, although the miner posted a 9% fall in its quarterly group production. With Russian gold and diamonds off-limits due to sanctions against companies, including Alrosa ALRS.MM - the world's largest producer of rough diamonds that competes with Anglo American's unit De Beers, demand for rough diamonds has risen this year. Russia is the world's biggest producer of natural diamonds, according to the World Diamond Council.
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3378.0
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2022-07-21 00:00:00 UTC
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South Africa's Kumba Iron Ore expects lower half-year earnings
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AAL
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https://www.nasdaq.com/articles/south-africas-kumba-iron-ore-expects-lower-half-year-earnings
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nan
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nan
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July 21 (Reuters) - South African miner Kumba Iron Ore KIOJ.J said on Thursday it expected half-year earnings to drop by as much as 53% as extended COVID-19 lockdowns in China weighed on iron ore prices.
Headline earnings per share (HEPS) - the main profit measure in South Africa - for the six months ending June 30 is expected to be between 33.87 and 37.49 rand per share, down 48%-53% from 72.78 rand per share a year earlier.
"The iron ore market also came under pressure in the second quarter, driven by the extended COVID-19 lockdown in China and weaker global economic prospects as the inflationary effects of the pandemic were compounded by conflict in Ukraine," Kumba CEO Mpumi Zikalala said in a statement.
Kumba is expected to release its half-year results on July 26.
(Reporting by Anait Miridzhanian; editing by Jason Neely)
((Anait.Miridzhanian@thomsonreuters.com; +48 58 769 66 05;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 21 (Reuters) - South African miner Kumba Iron Ore KIOJ.J said on Thursday it expected half-year earnings to drop by as much as 53% as extended COVID-19 lockdowns in China weighed on iron ore prices. "The iron ore market also came under pressure in the second quarter, driven by the extended COVID-19 lockdown in China and weaker global economic prospects as the inflationary effects of the pandemic were compounded by conflict in Ukraine," Kumba CEO Mpumi Zikalala said in a statement. (Reporting by Anait Miridzhanian; editing by Jason Neely) ((Anait.Miridzhanian@thomsonreuters.com; +48 58 769 66 05;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 21 (Reuters) - South African miner Kumba Iron Ore KIOJ.J said on Thursday it expected half-year earnings to drop by as much as 53% as extended COVID-19 lockdowns in China weighed on iron ore prices. Headline earnings per share (HEPS) - the main profit measure in South Africa - for the six months ending June 30 is expected to be between 33.87 and 37.49 rand per share, down 48%-53% from 72.78 rand per share a year earlier. "The iron ore market also came under pressure in the second quarter, driven by the extended COVID-19 lockdown in China and weaker global economic prospects as the inflationary effects of the pandemic were compounded by conflict in Ukraine," Kumba CEO Mpumi Zikalala said in a statement.
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July 21 (Reuters) - South African miner Kumba Iron Ore KIOJ.J said on Thursday it expected half-year earnings to drop by as much as 53% as extended COVID-19 lockdowns in China weighed on iron ore prices. Headline earnings per share (HEPS) - the main profit measure in South Africa - for the six months ending June 30 is expected to be between 33.87 and 37.49 rand per share, down 48%-53% from 72.78 rand per share a year earlier. "The iron ore market also came under pressure in the second quarter, driven by the extended COVID-19 lockdown in China and weaker global economic prospects as the inflationary effects of the pandemic were compounded by conflict in Ukraine," Kumba CEO Mpumi Zikalala said in a statement.
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July 21 (Reuters) - South African miner Kumba Iron Ore KIOJ.J said on Thursday it expected half-year earnings to drop by as much as 53% as extended COVID-19 lockdowns in China weighed on iron ore prices. Headline earnings per share (HEPS) - the main profit measure in South Africa - for the six months ending June 30 is expected to be between 33.87 and 37.49 rand per share, down 48%-53% from 72.78 rand per share a year earlier. (Reporting by Anait Miridzhanian; editing by Jason Neely) ((Anait.Miridzhanian@thomsonreuters.com; +48 58 769 66 05;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3379.0
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2022-07-21 00:00:00 UTC
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AngloAmerican Q2 production falls 9% on lower copper grades
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AAL
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https://www.nasdaq.com/articles/angloamerican-q2-production-falls-9-on-lower-copper-grades
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nan
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nan
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July 21 (Reuters) - Global miner Anglo American AAL.L on Thursday reported a 9% fall in second-quarter output on likely lower grades in copper and lack of water availability in Chile as well as planned maintenance at the Minas-Rio iron ore mine in Brazil.
AngloAmerican said it expects rough diamonds production for 2022 to be at 32-34 million carats amid strong demand, compared with a prior range of 30-33 million carats.
(Reporting by Shanima A in Bengaluru; Editing by Vinay Dwivedi)
((shanima.a@thomsonreuters.com; (Direct: +91 77 6034 7399 );))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 21 (Reuters) - Global miner Anglo American AAL.L on Thursday reported a 9% fall in second-quarter output on likely lower grades in copper and lack of water availability in Chile as well as planned maintenance at the Minas-Rio iron ore mine in Brazil. AngloAmerican said it expects rough diamonds production for 2022 to be at 32-34 million carats amid strong demand, compared with a prior range of 30-33 million carats. (Reporting by Shanima A in Bengaluru; Editing by Vinay Dwivedi) ((shanima.a@thomsonreuters.com; (Direct: +91 77 6034 7399 );)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 21 (Reuters) - Global miner Anglo American AAL.L on Thursday reported a 9% fall in second-quarter output on likely lower grades in copper and lack of water availability in Chile as well as planned maintenance at the Minas-Rio iron ore mine in Brazil. AngloAmerican said it expects rough diamonds production for 2022 to be at 32-34 million carats amid strong demand, compared with a prior range of 30-33 million carats. (Reporting by Shanima A in Bengaluru; Editing by Vinay Dwivedi) ((shanima.a@thomsonreuters.com; (Direct: +91 77 6034 7399 );)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 21 (Reuters) - Global miner Anglo American AAL.L on Thursday reported a 9% fall in second-quarter output on likely lower grades in copper and lack of water availability in Chile as well as planned maintenance at the Minas-Rio iron ore mine in Brazil. AngloAmerican said it expects rough diamonds production for 2022 to be at 32-34 million carats amid strong demand, compared with a prior range of 30-33 million carats. (Reporting by Shanima A in Bengaluru; Editing by Vinay Dwivedi) ((shanima.a@thomsonreuters.com; (Direct: +91 77 6034 7399 );)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 21 (Reuters) - Global miner Anglo American AAL.L on Thursday reported a 9% fall in second-quarter output on likely lower grades in copper and lack of water availability in Chile as well as planned maintenance at the Minas-Rio iron ore mine in Brazil. AngloAmerican said it expects rough diamonds production for 2022 to be at 32-34 million carats amid strong demand, compared with a prior range of 30-33 million carats. (Reporting by Shanima A in Bengaluru; Editing by Vinay Dwivedi) ((shanima.a@thomsonreuters.com; (Direct: +91 77 6034 7399 );)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3380.0
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2022-07-21 00:00:00 UTC
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American Airlines Q2 Profit Matches Estimates; Expects To Be Profitable In Q3
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AAL
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https://www.nasdaq.com/articles/american-airlines-q2-profit-matches-estimates-expects-to-be-profitable-in-q3
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nan
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) reported second quarter profit per share excluding net special items of $0.76 compared to a loss of $1.69, prior year. On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.76, for the quarter. Analysts' estimates typically exclude special items. Net income excluding net special items was $533 million, for the quarter.
American and its regional partners operated more than 500,000 flights in the quarter, up 8% from last year, with an average load factor of 87%, which is 10 points higher than a year ago.
Second quarter earnings was $476 million compared to $19 million, a year ago. EPS was $0.68 compared to $0.03.
Second-quarter revenue was $13.4 billion, a 12.2% increase over the same period in 2019, despite flying 8.5% less capacity. Analysts on average had estimated $13.4 billion in revenue.
American said it will continue to match forward capacity with the resources required to support its operation. The company currently expects third-quarter total revenue to be 10% to 12% higher versus the third quarter of 2019 on 8% to 10% lower capacity. The company expects to be profitable in the third quarter.
The company ended the second quarter with $15.6 billion of total available liquidity. American noted that it remains on track to reduce overall debt levels by $15 billion by the end of 2025.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) reported second quarter profit per share excluding net special items of $0.76 compared to a loss of $1.69, prior year. On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.76, for the quarter. The company currently expects third-quarter total revenue to be 10% to 12% higher versus the third quarter of 2019 on 8% to 10% lower capacity.
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(RTTNews) - American Airlines Group Inc. (AAL) reported second quarter profit per share excluding net special items of $0.76 compared to a loss of $1.69, prior year. Net income excluding net special items was $533 million, for the quarter. Second quarter earnings was $476 million compared to $19 million, a year ago.
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(RTTNews) - American Airlines Group Inc. (AAL) reported second quarter profit per share excluding net special items of $0.76 compared to a loss of $1.69, prior year. American and its regional partners operated more than 500,000 flights in the quarter, up 8% from last year, with an average load factor of 87%, which is 10 points higher than a year ago. Second quarter earnings was $476 million compared to $19 million, a year ago.
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(RTTNews) - American Airlines Group Inc. (AAL) reported second quarter profit per share excluding net special items of $0.76 compared to a loss of $1.69, prior year. Second quarter earnings was $476 million compared to $19 million, a year ago. Analysts on average had estimated $13.4 billion in revenue.
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3381.0
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2022-07-20 00:00:00 UTC
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Acting U.S. FAA chief says air carrier performance improving
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AAL
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https://www.nasdaq.com/articles/acting-u.s.-faa-chief-says-air-carrier-performance-improving
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nan
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nan
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By David Shepardson
FARNBOROUGH, England, July 20 (Reuters) - The acting head of the Federal Aviation Administration (FAA) said on Wednesday that U.S. airlines' travel performance was improving after delays and cancellations snarled traffic and prompted anger from lawmakers and passengers.
"We are keeping our eye on things. We’ve seen good improvements,” Acting FAA Administrator Billy Nolen told Reuters and another news outlet on the sidelines of the Farnborough Airshow. “We can see overall delays are down… The airlines are working to right size their network."
Airlines have pointed the finger at the FAA for air traffic control staffing issues causing delays and cancellations, but Nolen, who has been running the FAA since April, said the "majority" of the problems "are not in any way shape or form related to air traffic (staffing) shortages."
Nolen said he has spoken to all of the airline chief executives about air traffic issues.
Nolen said the FAA was working to hire air traffic controllers. "We are on track to hire 1,000 controllers this year," Nolen said. For 1,500 positions, the FAA accepted 57,956 applications for review. The FAA has said it plans to boost air traffic control staffing in some places that have had issues like Jacksonville, Florida.
Nolen declined to comment on whether there was enough time left this year to complete certification of the 737 MAX 10. "I will just direct you to back to Boeing in terms of what they think their ability to deliver, according to what time," Nolen said.
Boeing BA.N faces a December deadline to win approval for the 737 MAX 10 - the largest member of its best-selling single-aisle airplane family. Otherwise, it must meet new cockpit alerting requirements under a 2020 law, unless Congress waives it.
On Sunday, Boeing Commercial Airplanes Chief Executive Stan Deal said certification "still connects to the end of the year" but acknowledged it might not happen. "The next step of the process is to have the FAA on the airplane," Deal said.
Nolen said the FAA was hiring key positions. "I don’t buy into the notion that there is some sort of brain drain going on at the FAA," Nolen said.
He said the FAA had "created an absolute level of certainty and clarity" for future electric vertical takeoff and landing aircraft (eVTOL).
President Joe Biden nominated Denver Airport Chief Executive Phil Washington to head the FAA but no Senate confirmation hearing has been scheduled.
(Reporting by David Shepardson, Editing by Louise Heavens and Chizu Nomiyama)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson FARNBOROUGH, England, July 20 (Reuters) - The acting head of the Federal Aviation Administration (FAA) said on Wednesday that U.S. airlines' travel performance was improving after delays and cancellations snarled traffic and prompted anger from lawmakers and passengers. We’ve seen good improvements,” Acting FAA Administrator Billy Nolen told Reuters and another news outlet on the sidelines of the Farnborough Airshow. President Joe Biden nominated Denver Airport Chief Executive Phil Washington to head the FAA but no Senate confirmation hearing has been scheduled.
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We’ve seen good improvements,” Acting FAA Administrator Billy Nolen told Reuters and another news outlet on the sidelines of the Farnborough Airshow. Airlines have pointed the finger at the FAA for air traffic control staffing issues causing delays and cancellations, but Nolen, who has been running the FAA since April, said the "majority" of the problems "are not in any way shape or form related to air traffic (staffing) shortages." Nolen said he has spoken to all of the airline chief executives about air traffic issues.
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By David Shepardson FARNBOROUGH, England, July 20 (Reuters) - The acting head of the Federal Aviation Administration (FAA) said on Wednesday that U.S. airlines' travel performance was improving after delays and cancellations snarled traffic and prompted anger from lawmakers and passengers. Airlines have pointed the finger at the FAA for air traffic control staffing issues causing delays and cancellations, but Nolen, who has been running the FAA since April, said the "majority" of the problems "are not in any way shape or form related to air traffic (staffing) shortages." Nolen said the FAA was working to hire air traffic controllers.
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Nolen said he has spoken to all of the airline chief executives about air traffic issues. Nolen said the FAA was working to hire air traffic controllers. Nolen declined to comment on whether there was enough time left this year to complete certification of the 737 MAX 10.
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3382.0
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2022-07-20 00:00:00 UTC
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Is a Surprise Coming for American Airlines (AAL) This Earnings Season?
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AAL
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https://www.nasdaq.com/articles/is-a-surprise-coming-for-american-airlines-aal-this-earnings-season
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nan
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nan
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Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because American Airlines is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 80 cents per share for AAL, compared to a broader Zacks Consensus Estimate of 79 cents per share. This suggests that analysts have very recently bumped up their estimates for AAL, giving the stock a Zacks Earnings ESP of +1.36% heading into earnings season.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that AAL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for American Airlines, and that a beat might be in the cards for the upcoming report.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report. In fact, the Most Accurate Estimate for the current quarter is currently at 80 cents per share for AAL, compared to a broader Zacks Consensus Estimate of 79 cents per share.
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This suggests that analysts have very recently bumped up their estimates for AAL, giving the stock a Zacks Earnings ESP of +1.36% heading into earnings season. American Airlines Group Inc. (AAL): Free Stock Analysis Report Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL may be one such company.
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This suggests that analysts have very recently bumped up their estimates for AAL, giving the stock a Zacks Earnings ESP of +1.36% heading into earnings season. Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report.
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This suggests that analysts have very recently bumped up their estimates for AAL, giving the stock a Zacks Earnings ESP of +1.36% heading into earnings season. Given that AAL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL may be one such company.
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3383.0
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2022-07-20 00:00:00 UTC
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7 Best Travel Stocks to Buy Now
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AAL
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https://www.nasdaq.com/articles/7-best-travel-stocks-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The best travel stocks on the market is our topic for today. Although recent inflation data suggests distressing headwinds for the consumer economy, Americans still seem eager to travel. For the first time since the start of the pandemic, travel spending reached $100 billion in April 2022. Now, it is about 3% above 2019 levels.
Furthermore, Deloitte’s 2022 Summer Travel Survey highlights that despite rising airfares and hotel rates, 46% of Americans are planning a trip that involves paid lodging. In addition, most Americans plan to travel domestically — only 27% of travelers plan to fly internationally.
Meanwhile, Deloitte’s survey also suggests that financial concerns are affecting travel decisions. Put another way, the increase in cost of living is replacing health concerns. So be cautious — it remains to be seen to what extent the ongoing rebound in summer travel may give way to weaker demand in the coming months.
7 Best Small-Cap Growth Stocks to Buy Now
Against this backdrop, here are seven of the best travel stocks that could take off in Q3:
ABNB Airbnb $102.20
AAL American Airlines $15.16
BKNG Booking Holdings $1,834.80
MAR Marriott International $150.92
TRIP TripAdvisor $19.04
UAL United Airlines $41.47
WH Wyndham Hotels & Resorts $69.21
Airbnb (ABNB)
Source: Diego Thomazini / Shutterstock
52-week range: $86.71 – $212.58
First on our list of the best travel stocks is Airbnb (NASDAQ:ABNB), the leader in vacation rental industry. It boasts more than 4 million hosts who have welcomed more than 1 billion guests worldwide.
The home-sharing platform announced first-quarter financials on May 3. Revenue stood at $1.5 billion, up 70% year-over-year (YOY) and 80% above pre-pandemic Q1 FY19. Net loss came in at $19 million, reflecting a substantial improvement from the $1.2 billion from the prior-year quarter.
Wall Street was pleased that Nights and Experiences Booked surpassed pre-pandemic levels and exceeded 100 million for the first time, representing 59% YOY growth. Gross booking value grew 67% YOY. Free cash flow of $1.2 billion was an all-time high, driven by revenue growth and margin expansion.
On May 11, ABNB introduced a new version of its application that includes the most significant changes over the past decade. This new interface comes with new features such as Airbnb Categories, Split Stays, and Aircover for guests, to boost bookings for the remainder of 2022.
ABNB stock lost roughly 39% year-to-date (YTD). Shares are trading at 51 times forward earnings and 8.9 times sales. The 12-month median price forecast for Airbnb stock stands at $174.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
52-week range: $11.93 – $22.35
American Airlines (NASDAQ:AAL) is the largest global airline by a number of metrics. Following a major fleet renewal, it also boasts the youngest fleet of U.S. legacy carriers.
The company released Q1 figures on April 21. Revenue came in at $8.9 billion, an impressive 84% gain from the same quarter of 2019. Adjusted loss per share declined to $2.32, compared to a $4.32 loss per share in the prior-year quarter. The airline ended the quarter with $15.5 billion of liquidity.
Management pointed to solid summer travel demand combined with still-limited capacity. As a result, it has enough pricing power to compensate for rising fuel costs.
Q2 revenue should increase by 6% to 8% compared to the second quarter of 2019. Thus, the airline expects a return to profitability in the second quarter.
7 Best Long-Term Stocks to Buy Now
AAL stock is down 16% YTD. Shares are trading at 7.4 times forward earnings and 0.27 times sales. Wall Street’s 12-month median price forecast for American Airlines stock stands at $16.75. All this makes it one of the best travel stocks.
Booking (BKNG)
Source: Denys Prykhodov / Shutterstock.com
52-week range: $1,669.34 – $2,715.66
Next up is Booking (NASDAQ:BKNG), a global leader in online travel services. The booking platform giant works with local partners globally. Its brands include Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK and OpenTable.
BKNG reported Q1 results in early May. Revenue came in at $2.7 billion, representing an increase of 136% YOY. Non-GAAP net income came in at $3.90 per diluted share, compared with a non-GAAP net loss of $5.26 per diluted share a year ago. Cash and equivalents ended the period at $10.55 billion.
Booking generates the bulk of its revenue from Europe and the Asia Pacific market. Those regions have been slower to emerge from the pandemic due to longer restrictions and lockdowns. Yet, Wall Street is convinced Booking can navigate the current macroeconomic headwinds due to its extensive geographic diversity.
Recently, Priceline, Booking’s travel deal brand, launched the Summer Sale program to attract travelers with better deals even at the last minute. Furthermore, OpenTable formed a strategic partnership with Inline Group, expanding its restaurant services to the East Asia region.
So far in 2022, BKNG stock is down 24%. Shares are changing hands at 18 times forward earnings and 5,6 times sales. The 12-month median price forecast for Booking stock stands at $2,600.
Marriott International (MAR)
Source: DELBO ANDREA / Shutterstock
52-week range: $127.58 – $195.90
Marriott International (NASDAQ:MAR) is the next of our best travel stocks. It’s one of the leading hospitality operators worldwide. The lodging giant operates and licenses many hotels and timeshare properties. According to the “American customer satisfaction index scores for hotel companies,” Marriott holds the second spot stateside.
Management put out Q1 results on May 4. Total revenue came in at $4.2 billion, up 81% YOY. Adjusted diluted earnings per share (EPS) totaled $1.25, compared to 10 cents in the year-ago quarter.
Comparable systemwide revenue per available room in the first quarter increased 96.5% YOY worldwide in constant dollars. The company added roughly 11,800 rooms globally during the first quarter. In addition, Marriott’s worldwide development pipeline totaled nearly 2,900 properties and more than 489,000 rooms at the end of the period.
Recently, Marriott signed an agreement with Vinpearl, Vietnam’s largest hospitality and leisure chain, to add eight Vietnamese hotels. The hospitality behemoth also expects to add 50 more hotels in China in the current year.
The 7 Best Tech Dividend Stocks to Buy Right Now
MAR stock is down 9% YTD. Forward P/E and P/S metrics currently stand at 23.92x and 3.01x, respectively. Analysts’ 12-month median price forecast for Marriott International stock is $172.50.
TripAdvisor (TRIP)
Source: Tero Vesalainen / Shutterstock.com
52-week range: $17.71 – $41.30
TripAdvisor (NASDAQ:TRIP) offers a wide range of travel planning resources. The platform provides online hotel reservations along with other travel-related bookings such as restaurants and transportation.
Management announced Q1 results on May 4. Revenue jumped 113% YOY to $262 million, reaching 70% of the same quarter in 2019. Adjusted net loss narrowed to 9 cents per diluted share, down from 39 cents in the prior-year quarter. Cash and equivalents ended the period at $781 million.
The travel company also generated $72 million in free cash flow. The experiences & dining segment soared by 229% YOY to $92 million. Meanwhile, the hotels, media & platform segment delivered an 82% increase.
So far in 2022, despite being one of the best travel stocks, TRIP stock is down 30%. Shares are trading at 21.3 times forward earnings and 2.3 times sales. The 12-month median price forecast for Tripadvisor stock stands at $28.
United Airlines (UAL)
Source: travelview / Shutterstock.com
52-week range: $30.54 – $54.52
United Airlines (NASDAQ:UAL) operates a hub-and-spoke system more focused on international travel than its peers. In the U.S., its market share is around 10%.
The airline released Q1 financials on April 20. Revenue surged 135% YOY to $7.57 billion, yet still remained 21% below Q1 FY19. As a result, the adjusted loss narrowed to $4.24 per diluted share, down from $7.50 in the prior-year period. Cash and equivalents ended the quarter at $18.5 billion.
Recently, United Airlines has resumed 19 international routes and relaunched service to six cities not served since the start of the pandemic. In addition, in early June, the company announced the expansion of a massive pilot training center to prepare for an increase in pilot hiring. UAL also became the first domestic airline to add new Transpacific destinations after the pandemic.
Management anticipates generating an all-time high Q2 revenue. Despite cost headwinds driven by increasing fuel prices, it should become profitable in the second-quarters. Operating margin should be roughly at 10%, just 2.9 points less than the 2019 operating margin.
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UAL stock is down 6% YTD. Shares are trading at 27.7 times forward earnings and 0.4 times sales. Wall Street’s 12-month median price forecast stands at $54.
Wyndham Hotels & Resorts (WH)
Source: Mihai_Andritoiu / Shutterstock
52-week range: $62.89 – $93.86
The last of today’s best travel stocks is Wyndham Hotels & Resorts (NYSE:WH), one of the largest hotel franchise companies worldwide. The lodging powerhouse operates through 22 brands.
On April 26, Wyndham released Q1 metrics. Revenue increased 22% YOY to $371 million. Adjusted diluted EPS jumped to 95 cents, compared with 36 cents for the year-ago quarter. In addition, the company generated $125 million in free cash flow, up from $59 million a year ago. Cash and equivalents ended the period at $416 million.
Global revenue per available room in the first quarter grew 39% YOY in constant currency. Systemwide rooms increased 2% YOY, including 1.2% growth in the U.S. and 3.3% growth internationally. Management maintained its full-year 2022 outlook of global revenue per available room growth at 12% to 16% YOY.
In early June, the company announced the opening of the first La Quinta and Hawthorn Suites dual-branded hotel concept in Texas. It is the first of 48 dual-brand venues in Wyndham’s pipeline of 1,500 new hotels.
So far in 2022, WH stock is down 23%. The dividend yield currently stands at 1.9%. Shares are changing hands at 19.8 times forward earnings and 3.8 times sales. Lastly, the 12-month median price forecast is $96.
On the date of publication, Tezcan Gecgil,Ph.D., did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Best Travel Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7 Best Small-Cap Growth Stocks to Buy Now Against this backdrop, here are seven of the best travel stocks that could take off in Q3: ABNB Airbnb $102.20 AAL American Airlines $15.16 BKNG Booking Holdings $1,834.80 MAR Marriott International $150.92 TRIP TripAdvisor $19.04 UAL United Airlines $41.47 WH Wyndham Hotels & Resorts $69.21 Airbnb (ABNB) Source: Diego Thomazini / Shutterstock 52-week range: $86.71 – $212.58 First on our list of the best travel stocks is Airbnb (NASDAQ:ABNB), the leader in vacation rental industry. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 52-week range: $11.93 – $22.35 American Airlines (NASDAQ:AAL) is the largest global airline by a number of metrics. 7 Best Long-Term Stocks to Buy Now AAL stock is down 16% YTD.
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7 Best Small-Cap Growth Stocks to Buy Now Against this backdrop, here are seven of the best travel stocks that could take off in Q3: ABNB Airbnb $102.20 AAL American Airlines $15.16 BKNG Booking Holdings $1,834.80 MAR Marriott International $150.92 TRIP TripAdvisor $19.04 UAL United Airlines $41.47 WH Wyndham Hotels & Resorts $69.21 Airbnb (ABNB) Source: Diego Thomazini / Shutterstock 52-week range: $86.71 – $212.58 First on our list of the best travel stocks is Airbnb (NASDAQ:ABNB), the leader in vacation rental industry. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 52-week range: $11.93 – $22.35 American Airlines (NASDAQ:AAL) is the largest global airline by a number of metrics. 7 Best Long-Term Stocks to Buy Now AAL stock is down 16% YTD.
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7 Best Small-Cap Growth Stocks to Buy Now Against this backdrop, here are seven of the best travel stocks that could take off in Q3: ABNB Airbnb $102.20 AAL American Airlines $15.16 BKNG Booking Holdings $1,834.80 MAR Marriott International $150.92 TRIP TripAdvisor $19.04 UAL United Airlines $41.47 WH Wyndham Hotels & Resorts $69.21 Airbnb (ABNB) Source: Diego Thomazini / Shutterstock 52-week range: $86.71 – $212.58 First on our list of the best travel stocks is Airbnb (NASDAQ:ABNB), the leader in vacation rental industry. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 52-week range: $11.93 – $22.35 American Airlines (NASDAQ:AAL) is the largest global airline by a number of metrics. 7 Best Long-Term Stocks to Buy Now AAL stock is down 16% YTD.
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7 Best Small-Cap Growth Stocks to Buy Now Against this backdrop, here are seven of the best travel stocks that could take off in Q3: ABNB Airbnb $102.20 AAL American Airlines $15.16 BKNG Booking Holdings $1,834.80 MAR Marriott International $150.92 TRIP TripAdvisor $19.04 UAL United Airlines $41.47 WH Wyndham Hotels & Resorts $69.21 Airbnb (ABNB) Source: Diego Thomazini / Shutterstock 52-week range: $86.71 – $212.58 First on our list of the best travel stocks is Airbnb (NASDAQ:ABNB), the leader in vacation rental industry. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 52-week range: $11.93 – $22.35 American Airlines (NASDAQ:AAL) is the largest global airline by a number of metrics. 7 Best Long-Term Stocks to Buy Now AAL stock is down 16% YTD.
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3384.0
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2022-07-20 00:00:00 UTC
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Lemonade and MasTec have been highlighted as Zacks Bull and Bear of the Day
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AAL
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https://www.nasdaq.com/articles/lemonade-and-mastec-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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For Immediate Release
Chicago, IL – July 20, 2022 – Zacks Equity Research shares Lemonade, Inc. LMND as the Bull of the Day and MasTec MTZ as the Bear of the Day. In addition, Zacks Equity Research provides analysis on American Airlines AAL, Alaska Air Group ALK and Union Pacific Corp. UNP.
Here is a synopsis of all five stocks:
Bull of the Day:
Lemonade, Inc. is the small-cap insurance platform that offers homeowners and renters insurance principally in the United States, and contents and liability insurance primarily in Germany and the Netherlands, through its full-stack insurance carriers.
In May, the company reported a first-quarter operating loss of $1.21 per share, narrower than the Zacks Consensus Estimate of a loss of $1.43. The loss was however wider than the year-ago loss of 81 cents per share.
The results reflect gross earned premiums improvement, driven by an increase in force premium earned, offset by higher expense.
Fresh Squeezed Premiums
The analyst reactions were typical of many richly-valued software and FinTech companies since the bear market caused a big valuation reset.
JMP Securities analyst Matthew Carletti lowered the firm's price target on Lemonade to $40 from $95 to reflect "broad contraction in multiples across the technology and InsurTech sectors" in recent months. He maintained an Outperform rating on LMND shares.
The analyst observed that recent growth in premium-per-customer and bundling rates show that the company's model is working, but the significant recent changes in market environment that have been punishing growth and tech stocks demonstrate that "investors have become more demanding with regards to paths toward profitability."
And profitability is something that Lemonade is still a long way from squeezing. While the stock has moved into the upper realms of the Zacks Rank because of rising earnings estimates, the consensus for this year projects an EPS loss of $5.40, down 37% from last year.
The good news is on the topline where this year's consensus estimate for revenue of $208 million represents 62% annual growth. And next year is already projected to see a climb above $315 million for a 52% advance.
The recent beat-and-raise quarter gave analysts reasons to boost their outlook. Let's look at the quarter details and the guidance.
Behind the Q1 Headlines
Lemonade revenues increased 88.5% year over year to $44.3 million, driven by an increase in net earned premium, net investment income and commission and other income. The top line beat the Zacks Consensus Estimate by 2.4%.
Gross earned premiums soared 71% year over year to $96 million, driven by an increase in in-force premiums earned. Lemonade's in-force premium of $419 million jumped 66%, driven by a 37% increase in the number of customers as well as a 22% increase in premium per customer.
Premium per customer increased driven by the continued shift of business mix toward products with higher average policy values, increased prevalence of multiple policies per customer, and growth in the overall average policy value.
Total operating expenses, excluding net loss and loss adjustment expense, increased 68% year over year to $92.5 million, attributable to higher sales & marketing, technology development, and general and administrative expenses.
Adjusted EBITDA was negative $57.4 million, wider than negative $41.3 million in the year-ago quarter, attributable to increased operating expenses.
The loss ratio of 89 deteriorated 3100 basis points year over year. Lemonade estimates the loss ratio to be less than 75 in the long term.
Financial Update
Cash, cash equivalents, and investments were $1 billion as of Mar 31, 2022, down from 2021 end level of $1.1 billion, reflecting net proceeds from cash used in operations.
As of Mar 31, 2022, Lemonade had assets worth $1.5 billion, down about 1% from the level at 2021 end.
Shareholder equity at quarter-end was $912.7 billion, down 7.6% from the 2020-end level.
Cash used in operations was $39.5 million, lower than $40.3 million used in the year-ago quarter.
Q2 Guidance
In-force premium at quarter-end is projected between $445 and $450 million. Gross earned premium is expected in the range of $103-$105 million. Lemonade expects revenues between $46 million and $48 million. Adjusted EBITDA loss is expected to be $65-$70 million. Capital expenditure is estimated to be $4 million.
Full-Year 2022 View
Lemonade projects in-force premium between $535 million and $545 million. Gross earned premium is expected in the range of $426 million to $430 million. Revenues are anticipated between $205 million and $208 million.
Adjusted EBITDA loss is expected to be in the range of $265-$280 million and capital expenditure is estimated to be $14 million. Stock-based compensation expense is estimated to be about $60 million.
Bottom line on Lemonade: Insurance is solid business if managed properly. And Lemonade seems to have an angle on growth. It could also be a great acquisition target for a larger player who likes that flavor of growth.
Bear of the Day:
MasTec is a $5 billion provider of building infrastructure and services to North American C&E (construction & engineering) firms. The company engages in the engineering, building, installation, maintenance and upgrade of energy, communication and utility infrastructure.
MasTec reports its results under these four primary segments focused on broad end-user markets...
Communications (for 32% of total 2021 revenues): The segment performs engineering, construction and maintenance of communications infrastructure mainly related to wireless and wireline communications and install-to-the-home.
Oil and Gas (32%): The segment performs engineering, construction and maintenance services on oil and natural gas pipelines and processing facilities.
Power Delivery (12.8%): The segment primarily serves the energy and utility industries through the engineering, construction and maintenance of electrical transmission lines and substations.
Clean Energy and Infrastructure (primarily known as Power Generation and Industrial) (23.5%): The segment primarily serves the energy and utility end-markets and other end-markets through the installation and construction of conventional and renewable power plants, related electrical transmission infrastructure, ethanol facilities and various types of industrial infrastructure.
Why is MTZ in the Cellar of the Zacks Rank?
Since reporting earnings in early May and lowering company guidance, EPS estimates have dropped over 15% from $5.25 to $4.42.
Even next year's EPS estimates have been clipped double digits from $6.86 to $6.12.
MTZ lowered its expectation for 2022, considering project delays owing to supply disruptions. Also, the updated guidance considers restarting a large Oil & Gas project that will move into 2023 from the previously planned second-half 2022 project activity.
Elaborating on the performance and looking ahead, Jose Mas, MasTec's CEO, said, "As we have previously indicated, 2022 will mark an important transition year for MasTec, as our operations evolve to take advantage of end market growth opportunities across Communications, Clean Energy & Infrastructure and our recently expanded Power Delivery segments. Accordingly, we remain bullish on significant growth opportunities in 2023 and beyond. That said, our updated 2022 guidance range reflects project timing risks related to solar panel availability and a large Oil & Gas project restart that will move previously planned second half 2022 project activity into 2023."
Bottom line on MTZ: This is a significant player in energy and telecom infrastructure that will be around growing revenues and earnings for many years to come. There could be a buying opportunity approaching.
For right now, we need to keep an eye on the direction of EPS estimates. The Zacks Rank will let you know.
Additional content:
What to Expect from These 3 Transportation Stocks on Q2 Earnings
The Zacks Transportation sector is widely diversified in nature. It houses airlines, railroads, shipping and trucking companies to name a few.
Only one S&P 500 transportation company has reported second-quarter 2022 numbers so far, as air-travel demand rebounded from the pandemic lows.
The gradual uptick in the economic scenario implies that trading volumes are consistently rising. This bodes well for the entire sector. The latest Earnings Preview indicates that the total earnings of transportation companies belonging to the S&P 500 universe are likely to have increased massively in second-quarter 2022 from the first-quarter reported levels, mainly on ramped-up economic activities. With more and more Americans getting inoculated, people are now more confident of going out and resuming their daily activities.
With economic activities picking up the pace, as highlighted above, the respective June-quarter results of American Airlines, Alaska Air Group and Union Pacific Corp., scheduled to be released on Jul 21, are likely to have been boosted by higher revenues. However, high fuel costs are likely to have hurt all three stocks' bottom-line performances. In the second quarter (Apr-Jun period), oil prices escalated 5.5% year over year, induced by the Russia-Ukraine war.
Our quantitative model predicts an earnings beat for a company if it has a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This combination increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
You can see the complete list of today's Zacks #1 Rank stocks here.
Let's delve deeper.
American Airlines' results are likely to reflect the impacts of upbeat passenger revenues (post the pandemic-led slump), courtesy of strong air-travel demand. The Zacks Consensus Estimate for second-quarter 2022 revenues is expected to grow 79.3% from the year-ago period's reading.
However, due to the Russia-Ukraine war, fuel prices have been soaring ever since. AAL estimates average fuel cost per gallon in the $4.00-4.05 range (prior guidance: $3.59-$3.64 band).
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Our proven model predicts an earnings beat for American Airlines this season as AAL has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.
High fuel costs are likely to have dented Alaska Air's second-quarter performance despite increasing passenger revenues on solid air-travel demand. The carrier expects second-quarter economic fuel costs of $3.66 per gallon, suggesting a rise from $2.62 reported in first-quarter 2022.
Alaska Air Group, Inc. price-eps-surprise | Alaska Air Group, Inc. Quote
Our proven model predicts a bottom-line outperformance for Alaska Air this reporting cycle as ALK has an Earnings ESP of +0.54% and a Zacks Rank of 3 at present.
Union Pacific Corporation price-eps-surprise | Union Pacific Corporation Quote
Strong freight demand is expected to have boosted Union Pacific's freight revenues in the second quarter. Higher volumes, higher fuel surcharge revenue, pricing gains and a favorable business mix are likely to have aided Union Pacific's top-line performance.
Our proven model does not predict a beat for Union Pacific this earnings season as UNP has an Earnings ESP of -0.32% and a Zacks Rank #3 at present. The same was predicted earlier when the second-quarter earnings preview article was issued. At that time, UAL had an Earnings ESP of -1.69% and the same Zacks Rank.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Union Pacific Corporation (UNP): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
MasTec, Inc. (MTZ): Free Stock Analysis Report
Lemonade, Inc. (LMND): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, Zacks Equity Research provides analysis on American Airlines AAL, Alaska Air Group ALK and Union Pacific Corp. UNP. AAL estimates average fuel cost per gallon in the $4.00-4.05 range (prior guidance: $3.59-$3.64 band). American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote Our proven model predicts an earnings beat for American Airlines this season as AAL has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.
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In addition, Zacks Equity Research provides analysis on American Airlines AAL, Alaska Air Group ALK and Union Pacific Corp. UNP. American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote Our proven model predicts an earnings beat for American Airlines this season as AAL has an Earnings ESP of +2.33% and a Zacks Rank #3 at present. AAL estimates average fuel cost per gallon in the $4.00-4.05 range (prior guidance: $3.59-$3.64 band).
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In addition, Zacks Equity Research provides analysis on American Airlines AAL, Alaska Air Group ALK and Union Pacific Corp. UNP. AAL estimates average fuel cost per gallon in the $4.00-4.05 range (prior guidance: $3.59-$3.64 band). American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote Our proven model predicts an earnings beat for American Airlines this season as AAL has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.
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American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote Our proven model predicts an earnings beat for American Airlines this season as AAL has an Earnings ESP of +2.33% and a Zacks Rank #3 at present. In addition, Zacks Equity Research provides analysis on American Airlines AAL, Alaska Air Group ALK and Union Pacific Corp. UNP. AAL estimates average fuel cost per gallon in the $4.00-4.05 range (prior guidance: $3.59-$3.64 band).
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3385.0
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2022-07-19 00:00:00 UTC
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Why Airline Stocks Are Rising Again Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-rising-again-today
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What happened
The early takeaways from earnings season suggest that the economy is not spiraling into an inevitable recession. That sentiment is giving stocks a lift on Tuesday, and airlines are going along for the ride.
Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) all rose as much as 5% on the hope that demand will hold up and the post-pandemic sector recovery can continue.
So what
Airline investors were on edge coming into earnings season, and Delta's move last week to lower expectations for the rest of the year did little to calm those fears. The industry was hit hard by the pandemic, but investors had hoped the worst was now behind us and strong travel demand this year would help the carriers rebuild their balance sheets.
The demand materialized as expected, but it has not resulted in outsized profitability for the sector. The airlines are grappling with issues including a lack of pilots and high fuel prices, meaning that much of the extra revenue they are bringing in selling tickets into a hot market is going out the door in the form of expenses.
The last thing airlines need right now is for inflation or a recession to stunt that demand. Investors realize this, and of late the industry has been trading up and down largely with the broader market sentiment on the health of the economy.
Wall Street was solidly in the green on Tuesday, with the S&P 500 up more than 2.5% in afternoon trading, on analyst commentary that so far earnings season is holding up better than feared.
Now what
Investors will have airline-specific news to trade on in the coming days, as United and American are both expected to release second-quarter results this week. Like with Delta, the focus will not be so much on what United and American did in the second quarter but rather on what management sees happening up ahead.
Most of the travelers flying right now booked their trips months ago, before inflation heated up. Investors should be listening carefully for management commentary on how strong fall bookings are coming in now, and whether or not business travelers are returning to the skies.
The worst is likely over, but the recovery has only begun. Airline stocks have been making oversized moves up and down based on economic sentiment, but the carriers are going to have to post real progress paying down their debt and demonstrate demand is sustainable for the stocks to really take off from here.
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Lou Whiteman has positions in Delta Air Lines. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) all rose as much as 5% on the hope that demand will hold up and the post-pandemic sector recovery can continue. So what Airline investors were on edge coming into earnings season, and Delta's move last week to lower expectations for the rest of the year did little to calm those fears. The industry was hit hard by the pandemic, but investors had hoped the worst was now behind us and strong travel demand this year would help the carriers rebuild their balance sheets.
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Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) all rose as much as 5% on the hope that demand will hold up and the post-pandemic sector recovery can continue. So what Airline investors were on edge coming into earnings season, and Delta's move last week to lower expectations for the rest of the year did little to calm those fears. The Motley Fool recommends Delta Air Lines.
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Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) all rose as much as 5% on the hope that demand will hold up and the post-pandemic sector recovery can continue. Airline stocks have been making oversized moves up and down based on economic sentiment, but the carriers are going to have to post real progress paying down their debt and demonstrate demand is sustainable for the stocks to really take off from here. 10 stocks we like better than American Airlines Group When our award-winning analyst team has a stock tip, it can pay to listen.
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Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) all rose as much as 5% on the hope that demand will hold up and the post-pandemic sector recovery can continue. Wall Street was solidly in the green on Tuesday, with the S&P 500 up more than 2.5% in afternoon trading, on analyst commentary that so far earnings season is holding up better than feared. Now what Investors will have airline-specific news to trade on in the coming days, as United and American are both expected to release second-quarter results this week.
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3386.0
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2022-07-19 00:00:00 UTC
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Notable Tuesday Option Activity: CHPT, IRTC, AAL
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AAL
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https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-chpt-irtc-aal
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in ChargePoint Holdings Inc (Symbol: CHPT), where a total volume of 46,798 contracts has been traded thus far today, a contract volume which is representative of approximately 4.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.5% of CHPT's average daily trading volume over the past month, of 9.9 million shares. Especially high volume was seen for the $13 strike call option expiring July 22, 2022, with 20,870 contracts trading so far today, representing approximately 2.1 million underlying shares of CHPT. Below is a chart showing CHPT's trailing twelve month trading history, with the $13 strike highlighted in orange:
iRhythm Technologies Inc (Symbol: IRTC) saw options trading volume of 2,489 contracts, representing approximately 248,900 underlying shares or approximately 46.6% of IRTC's average daily trading volume over the past month, of 533,890 shares. Especially high volume was seen for the $160 strike call option expiring August 19, 2022, with 901 contracts trading so far today, representing approximately 90,100 underlying shares of IRTC. Below is a chart showing IRTC's trailing twelve month trading history, with the $160 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 172,625 contracts, representing approximately 17.3 million underlying shares or approximately 46% of AAL's average daily trading volume over the past month, of 37.5 million shares. Especially high volume was seen for the $15 strike call option expiring July 22, 2022, with 15,629 contracts trading so far today, representing approximately 1.6 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $15 strike highlighted in orange:
For the various different available expirations for CHPT options, IRTC options, or AAL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $15 strike call option expiring July 22, 2022, with 15,629 contracts trading so far today, representing approximately 1.6 million underlying shares of AAL. Below is a chart showing IRTC's trailing twelve month trading history, with the $160 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 172,625 contracts, representing approximately 17.3 million underlying shares or approximately 46% of AAL's average daily trading volume over the past month, of 37.5 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $15 strike highlighted in orange: For the various different available expirations for CHPT options, IRTC options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing IRTC's trailing twelve month trading history, with the $160 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 172,625 contracts, representing approximately 17.3 million underlying shares or approximately 46% of AAL's average daily trading volume over the past month, of 37.5 million shares. Especially high volume was seen for the $15 strike call option expiring July 22, 2022, with 15,629 contracts trading so far today, representing approximately 1.6 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $15 strike highlighted in orange: For the various different available expirations for CHPT options, IRTC options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing IRTC's trailing twelve month trading history, with the $160 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 172,625 contracts, representing approximately 17.3 million underlying shares or approximately 46% of AAL's average daily trading volume over the past month, of 37.5 million shares. Especially high volume was seen for the $15 strike call option expiring July 22, 2022, with 15,629 contracts trading so far today, representing approximately 1.6 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $15 strike highlighted in orange: For the various different available expirations for CHPT options, IRTC options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing IRTC's trailing twelve month trading history, with the $160 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 172,625 contracts, representing approximately 17.3 million underlying shares or approximately 46% of AAL's average daily trading volume over the past month, of 37.5 million shares. Especially high volume was seen for the $15 strike call option expiring July 22, 2022, with 15,629 contracts trading so far today, representing approximately 1.6 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $15 strike highlighted in orange: For the various different available expirations for CHPT options, IRTC options, or AAL options, visit StockOptionsChannel.com.
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3387.0
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2022-07-19 00:00:00 UTC
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Transportation Stocks' Jul 21 Q2 Earnings List: AAL, ALK & UNP
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AAL
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https://www.nasdaq.com/articles/transportation-stocks-jul-21-q2-earnings-list%3A-aal-alk-unp
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nan
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The Zacks Transportation sector is widely diversified in nature. It houses airlines, railroads, shipping and trucking companies to name a few.
Only one S&P 500 transportation company, namely Delta Air Lines, Inc. DAL has reported second-quarter 2022 numbers so far. Delta’s revenues came in at $13,824 million, which soared 94% from the year-ago quarter’s reported figure, as air-travel demand rebounded from the pandemic lows.
The gradual uptick in the economic scenario implies that trading volumes are consistently rising. This bodes well for the entire sector. The latest Earnings Preview indicates that the total earnings of transportation companies belonging to the S&P 500 universe are likely to have increased massively in second-quarter 2022 from the first-quarter reported levels, mainly on ramped-up economic activities. With more and more Americans getting inoculated, people are now more confident of going out and resuming their daily activities.
With economic activities picking up the pace, as highlighted above, the respective June-quarter results of American Airlines AAL, Alaska Air Group ALK and Union Pacific Corporation UNP, scheduled to be released on Jul 21, are likely to have been boosted by higher revenues. However, high fuel costs are likely to have hurt all three stocks’ bottom-line performances. In the second quarter (Apr-Jun period), oil prices escalated 5.5% year over year, induced by the Russia-Ukraine war.
Our quantitative model predicts an earnings beat for a company if it has a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This combination increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s delve deeper.
American Airlines’ results are likely to reflect the impacts of upbeat passenger revenues (post the pandemic-led slump), courtesy of strong air-travel demand. The Zacks Consensus Estimate for second-quarter 2022 revenues is expected to grow 79.3% from the year-ago period’s reading.
However, due to the Russia-Ukraine war, fuel prices have been soaring ever since. AAL estimates average fuel cost per gallon in the $4.00-4.05 range (prior guidance: $3.59-$3.64 band).
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Our proven model predicts an earnings beat for American Airlines this season as AAL has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.
High fuel costs are likely to have dented Alaska Air’s second-quarter performance despite increasing passenger revenues on solid air-travel demand. The carrier expects second-quarter economic fuel costs of $3.66 per gallon, suggesting a rise from $2.62 reported in first-quarter 2022.
Alaska Air Group, Inc. Price and EPS Surprise
Alaska Air Group, Inc. price-eps-surprise | Alaska Air Group, Inc. Quote
Our proven model predicts a bottom-line outperformance for Alaska Air this reporting cycle as ALK has an Earnings ESP of +0.54% and a Zacks Rank of 3 at present.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation price-eps-surprise | Union Pacific Corporation Quote
Strong freight demand is expected to have boosted Union Pacific’s freight revenues in the second quarter. Higher volumes, higher fuel surcharge revenue, pricing gains and a favorable business mix are likely to have aided Union Pacific’s top-line performance.
Our proven model does not predict a beat for Union Pacific this earnings season as UNP has an Earnings ESP of -0.32% and a Zacks Rank #3 at present. The same was predicted earlier when the second-quarter earnings preview article was issued. At that time, UAL had an Earnings ESP of -1.69% and the same Zacks Rank.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With economic activities picking up the pace, as highlighted above, the respective June-quarter results of American Airlines AAL, Alaska Air Group ALK and Union Pacific Corporation UNP, scheduled to be released on Jul 21, are likely to have been boosted by higher revenues. AAL estimates average fuel cost per gallon in the $4.00-4.05 range (prior guidance: $3.59-$3.64 band). American Airlines Group Inc. Price and EPS Surprise American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote Our proven model predicts an earnings beat for American Airlines this season as AAL has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.
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American Airlines Group Inc. Price and EPS Surprise American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote Our proven model predicts an earnings beat for American Airlines this season as AAL has an Earnings ESP of +2.33% and a Zacks Rank #3 at present. With economic activities picking up the pace, as highlighted above, the respective June-quarter results of American Airlines AAL, Alaska Air Group ALK and Union Pacific Corporation UNP, scheduled to be released on Jul 21, are likely to have been boosted by higher revenues. AAL estimates average fuel cost per gallon in the $4.00-4.05 range (prior guidance: $3.59-$3.64 band).
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American Airlines Group Inc. Price and EPS Surprise American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote Our proven model predicts an earnings beat for American Airlines this season as AAL has an Earnings ESP of +2.33% and a Zacks Rank #3 at present. With economic activities picking up the pace, as highlighted above, the respective June-quarter results of American Airlines AAL, Alaska Air Group ALK and Union Pacific Corporation UNP, scheduled to be released on Jul 21, are likely to have been boosted by higher revenues. AAL estimates average fuel cost per gallon in the $4.00-4.05 range (prior guidance: $3.59-$3.64 band).
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American Airlines Group Inc. (AAL): Free Stock Analysis Report With economic activities picking up the pace, as highlighted above, the respective June-quarter results of American Airlines AAL, Alaska Air Group ALK and Union Pacific Corporation UNP, scheduled to be released on Jul 21, are likely to have been boosted by higher revenues. AAL estimates average fuel cost per gallon in the $4.00-4.05 range (prior guidance: $3.59-$3.64 band).
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3388.0
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2022-07-19 00:00:00 UTC
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The Zacks Analyst Blog Highlights American Airlines, C.H. Robinson Worldwide, Kirby and Southwest Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-american-airlines-c.h.-robinson-worldwide-kirby-and
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For Immediate Release
Chicago, IL – July 19, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: American Airlines AAL, C.H. Robinson Worldwide CHRW, Kirby KEX and Southwest Airlines Co. LUV.
Here are highlights from Monday’s Analyst Blog:
Is a Beat in Store for American Airlines (AAL) in Q2?
American Airlines is scheduled to report second-quarter 2022 results on Jul 21, before market opens.
The Zacks Consensus Estimate for AAL's second-quarter 2022 earnings has been revised upward by 43.6% in the past 60 days. The company also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 5.4%.
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Let's see how things are shaping up for American Airlines this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for American Airlines' second-quarter 2022 revenues is pegged at $13.41 billion, indicating 79.3% growth year over year. The top line is likely to have been aided by solid recovery of air-travel demand (post the pandemic-led slump) and improvement in passenger revenues.
These tailwinds have enabled AAL's management to raise second-quarter revenue guidance. The company now projects total revenues to be up approximately 12% from the second-quarter 2019 figure (prior guidance was an increase in the 6-8% range). Total revenue per available seat miles (TRASM) is expected to be up 22.5% from the second-quarter 2019 actuals (earlier guidance was an increase in the 20-22% range).
On the flip side, increase in oil price (up a massive 48% in first-half 2022) continues to bother AAL's bottom line. Oil price is moving northward, primarily because of the Russia-Ukraine war. For the second quarter, the company estimates average fuel cost per gallon to be in the $4-4.05 range (prior guidance: $3.59-$3.64 band). The Zacks Consensus Estimate for average fuel price per gallon (including related taxes) is pegged at $3.73, indicating growth of 95.2% from the year-ago reported figure.
Further, AAL expects its second-quarter cost per available seat miles in the June quarter to be up approximately 12% from the second-quarter 2019 level (earlier guidance was an increase in the 10-11% range).
What Our Model Says
Our proven model predicts an earnings beat for American Airlines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
American Airlines has an Earnings ESP of +2.33% and a Zacks Rank #3.
Highlights of Q1
American Airlines' first-quarter 2022 loss (excluding 20 cents from non-recurring items) of $2.32 per share compared favorably with the Zacks Consensus Estimate of a loss of $2.43. Quarterly loss per share was also narrower than the year-ago loss of $4.32.
Operating revenues of $8,899 million skyrocketed 122.03% year over year and surpassed the Zacks Consensus Estimate of $8,810.8 million. This massive year-over-year jump reflects improving air-travel demand.
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these too have the right combination of elements to beat on their second-quarter 2022 earnings:
C.H. Robinson Worldwide has an Earnings ESP of +4.20% and a Zacks Rank #1. CHRW will release results on Jul 27. You can see the complete list of today's Zacks #1 Rank stocks here.
C.H. Robinson has an expected earnings growth rate of 16.6% for the current year. CHRW delivered a trailing four-quarter earnings surprise of 17.1%, on average.
C.H. Robinson has a long-term earnings growth rate of 9%. Shares of CHRW have gained 8.8% over the past year.
Kirby has an Earnings ESP of +0.70% and a Zacks Rank #2. KEX will release results on Jul 28.
Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.
KEX has a long-term earnings growth rate of 12%.
Southwest Airlines Co. has an Earnings ESP of +4.00% and a Zacks Rank #3. Improved air-travel demand is likely to aid LUV's results. LUV will release results on Jul 28.
Southwest has an expected earnings growth rate of 226.05% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average.
Southwest has a long-term earnings growth rate of 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Kirby Corporation (KEX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: American Airlines AAL, C.H. Here are highlights from Monday’s Analyst Blog: Is a Beat in Store for American Airlines (AAL) in Q2? The Zacks Consensus Estimate for AAL's second-quarter 2022 earnings has been revised upward by 43.6% in the past 60 days.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report Stocks recently featured in the blog include: American Airlines AAL, C.H. Here are highlights from Monday’s Analyst Blog: Is a Beat in Store for American Airlines (AAL) in Q2?
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Stocks recently featured in the blog include: American Airlines AAL, C.H. Here are highlights from Monday’s Analyst Blog: Is a Beat in Store for American Airlines (AAL) in Q2? The Zacks Consensus Estimate for AAL's second-quarter 2022 earnings has been revised upward by 43.6% in the past 60 days.
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Stocks recently featured in the blog include: American Airlines AAL, C.H. Here are highlights from Monday’s Analyst Blog: Is a Beat in Store for American Airlines (AAL) in Q2? The Zacks Consensus Estimate for AAL's second-quarter 2022 earnings has been revised upward by 43.6% in the past 60 days.
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3389.0
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2022-07-18 00:00:00 UTC
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Why Airline Stocks Are Gaining Altitude Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-gaining-altitude-today-0
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nan
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nan
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What happened
Delta Air Lines (NYSE: DAL) inked a massive new plane deal indicating the company is still bullish about the future of flight demand, and broader markets are rising on investor hope that the Federal Reserve can avoid a recession. The two news items are giving the entire airline sector a lift, with shares of Delta up as much as 6%, and American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) all following close behind.
So what
The biggest industry-specific news item driving airline stocks higher today involves only one airline, but there is a clear read through for the entire industry. Delta announced an order for 100 Boeing airplanes worth upward of $13 billion, a clear indication that the airline remains upbeat on the long-term growth forecast for the industry.
Delta is likely being opportunistic here, as Boeing is eager to move metal. But even when planes are on sale, airlines are reluctant to commit billions if they see too much uncertainty on the horizon. The entire industry was hit hard by the pandemic, and some fear business and international travel might not fully recover until the second half of the decade.
Shares of Delta were hit last week following the airline's release of second-quarter earnings and guidance for the rest of the year. Investors were disappointed to see Delta scaling back capacity.
The new planes will not arrive in Delta's fleet overnight, and the order does little to calm the near-term concerns. But the order is a clear indication Delta is upbeat about its long-term outlook.
Delta is also likely getting a boost thanks to a Citi research note over the weekend that called the market's post-earnings sell-off of the stock overdone. Analyst Stephen Trent notes that Delta shares have fallen back down to mid-2020 levels, a time when airlines were burning through millions daily and COVID-19 vaccines were still months out.
The airline sector is also moving higher along with the broader markets. Investors appear reassured the Federal Reserve isn't hitting the panic button due to inflation, and they seem hopeful that a recession can be avoided. Airlines are sensitive to recession talk because travel is an area consumers and businesses tend to cut back on if times are tough.
Now what
Trent's commentary on Delta can be applied to the broader industry as well. The airlines have issues, and a recovery is still a way off. But things are a lot better now than they were at the start of the pandemic. Delta's new plane order is a clear sign that the industry is planning for the future, and not just scrambling to survive.
American and United are expected to announce second-quarter results this week, giving investors more color about how the industry is forecasting the rest of the year to go. JetBlue, meanwhile, remains engaged in a bidding war for Spirit Airlines (NYSE: SAVE), a clear indication the company is more focused on growth than survival.
For those with a long enough time horizon, there are opportunities in airline stocks today.
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Lou Whiteman has positions in Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The two news items are giving the entire airline sector a lift, with shares of Delta up as much as 6%, and American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) all following close behind. What happened Delta Air Lines (NYSE: DAL) inked a massive new plane deal indicating the company is still bullish about the future of flight demand, and broader markets are rising on investor hope that the Federal Reserve can avoid a recession. Delta announced an order for 100 Boeing airplanes worth upward of $13 billion, a clear indication that the airline remains upbeat on the long-term growth forecast for the industry.
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The two news items are giving the entire airline sector a lift, with shares of Delta up as much as 6%, and American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) all following close behind. Delta announced an order for 100 Boeing airplanes worth upward of $13 billion, a clear indication that the airline remains upbeat on the long-term growth forecast for the industry. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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The two news items are giving the entire airline sector a lift, with shares of Delta up as much as 6%, and American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) all following close behind. So what The biggest industry-specific news item driving airline stocks higher today involves only one airline, but there is a clear read through for the entire industry. Delta announced an order for 100 Boeing airplanes worth upward of $13 billion, a clear indication that the airline remains upbeat on the long-term growth forecast for the industry.
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The two news items are giving the entire airline sector a lift, with shares of Delta up as much as 6%, and American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) all following close behind. Delta announced an order for 100 Boeing airplanes worth upward of $13 billion, a clear indication that the airline remains upbeat on the long-term growth forecast for the industry. The airline sector is also moving higher along with the broader markets.
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3390.0
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2022-07-18 00:00:00 UTC
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Is a Beat Ahead for American Airlines (AAL) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/is-a-beat-ahead-for-american-airlines-aal-in-q2-earnings
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nan
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nan
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American Airlines AAL is scheduled to report second-quarter 2022 results on Jul 21, before market opens.
The Zacks Consensus Estimate for AAL’s second-quarter 2022 earnings has been revised upward by 43.6% in the past 60 days. The company also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 5.4%.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Let’s see how things are shaping up for American Airlines this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for American Airlines’ second-quarter 2022 revenues is pegged at $13.41 billion, indicating 79.3% growth year over year. The top line is likely to have been aided by solid recovery of air-travel demand (post the pandemic-led slump) and improvement in passenger revenues.
These tailwinds have enabled AAL’s management to raise second-quarter revenue guidance. The company now projects total revenues to be up approximately 12% from the second-quarter 2019 figure (prior guidance was an increase in the 6-8% range). Total revenue per available seat miles (TRASM) is expected to be up 22.5% from the second-quarter 2019 actuals (earlier guidance was an increase in the 20-22% range).
On the flip side, increase in oil price (up a massive 48% in first-half 2022) continues to bother AAL’s bottom line. Oil price is moving northward, primarily because of the Russia-Ukraine war. For the second quarter, the company estimates average fuel cost per gallon to be in the $4-4.05 range (prior guidance: $3.59-$3.64 band). The Zacks Consensus Estimate for average fuel price per gallon (including related taxes) is pegged at $3.73, indicating growth of 95.2% from the year-ago reported figure.
Further, AAL expects its second-quarter cost per available seat miles in the June quarter to be up approximately 12% from the second-quarter 2019 level (earlier guidance was an increase in the 10-11% range).
What Our Model Says
Our proven model predicts an earnings beat for American Airlines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
American Airlines has an Earnings ESP of +2.33% and a Zacks Rank #3.
Highlights of Q1
American Airlines' first-quarter 2022 loss (excluding 20 cents from non-recurring items) of $2.32 per share compared favorably with the Zacks Consensus Estimate of a loss of $2.43. Quarterly loss per share was also narrower than the year-ago loss of $4.32.
Operating revenues of $8,899 million skyrocketed 122.03% year over year and surpassed the Zacks Consensus Estimate of $8,810.8 million. This massive year-over-year jump reflects improving air-travel demand.
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these too have the right combination of elements to beat on their second-quarter 2022 earnings:
C.H. Robinson Worldwide CHRW has an Earnings ESP of +4.20% and a Zacks Rank #1. CHRW will release results on Jul 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
C.H. Robinson has an expected earnings growth rate of 16.6% for the current year. CHRW delivered a trailing four-quarter earnings surprise of 17.1%, on average.
C.H. Robinson has a long-term earnings growth rate of 9%. Shares of CHRW have gained 8.8% over the past year.
Kirby KEX has an Earnings ESP of +0.70% and a Zacks Rank #2. KEX will release results on Jul 28.
Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.
KEX has a long-term earnings growth rate of 12%.
Southwest Airlines Co.LUV has an Earnings ESP of +4.00% and a Zacks Rank #3. Improved air-travel demand is likely to aid LUV’s results. LUV will release results on Jul 28.
Southwest has an expected earnings growth rate of 226.05% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average.
Southwest has a long-term earnings growth rate of 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Kirby Corporation (KEX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL is scheduled to report second-quarter 2022 results on Jul 21, before market opens. The Zacks Consensus Estimate for AAL’s second-quarter 2022 earnings has been revised upward by 43.6% in the past 60 days. These tailwinds have enabled AAL’s management to raise second-quarter revenue guidance.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines AAL is scheduled to report second-quarter 2022 results on Jul 21, before market opens. The Zacks Consensus Estimate for AAL’s second-quarter 2022 earnings has been revised upward by 43.6% in the past 60 days.
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American Airlines AAL is scheduled to report second-quarter 2022 results on Jul 21, before market opens. The Zacks Consensus Estimate for AAL’s second-quarter 2022 earnings has been revised upward by 43.6% in the past 60 days. These tailwinds have enabled AAL’s management to raise second-quarter revenue guidance.
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American Airlines AAL is scheduled to report second-quarter 2022 results on Jul 21, before market opens. The Zacks Consensus Estimate for AAL’s second-quarter 2022 earnings has been revised upward by 43.6% in the past 60 days. These tailwinds have enabled AAL’s management to raise second-quarter revenue guidance.
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3391.0
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2022-07-17 00:00:00 UTC
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Miner BHP may reconsider investments in Chile if tax hikes go forward
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AAL
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https://www.nasdaq.com/articles/miner-bhp-may-reconsider-investments-in-chile-if-tax-hikes-go-forward
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nan
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nan
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SANTIAGO, July 17 (Reuters) - Global miner BHP Billiton BHP.AX is likely to reconsider its investment plans in Chile, the world's No. 1 copper producer, if the government moves ahead with mining tax hikes, according to a report on Sunday.
The company was quoted by El Mercurio newspaper as saying in a statement that higher taxes would make Chile more expensive than other top mining jurisdictions like Australia, Canada and neighboring Peru.
"We have serious concerns with regards to the new royalties," the company said. "If the proposed royalty (hike) materializes, we would have to reevaluate our investment plans for Chile."
BHP did not immediately respond to a request for comment.
BHP is a major player in Chile, where it operates the world's largest copper mine, known as Escondida. In April, BHP said it was willing to invest another $10 billion in Chile over the years, but only if the regulatory and fiscal conditions were appropriate.
Chilean Finance Minister Mario Marcel has said that raising mining royalties is his "priority number one" and the top goal of the left-wing administration that was inaugurated earlier this year. The government wants to use the tax income to fund social programs.
The tax reforms, which also include a wealth tax on high earners among other provisions, aim to raise 4.1% of GDP over four years, with 0.7% going to a new guaranteed minimum pension fund.
Other global miners operating in Chile include Glencore GLEN.L, Anglo American AAL.L, Freeport McMoRan FCX.N and Antofagasta ANTO.L.
(Reporting by Fabian Cambero; Editing by Cynthia Osterman)
((marcelo.rochabrun@thomsonreuters.com; +55 11 5644 7768;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other global miners operating in Chile include Glencore GLEN.L, Anglo American AAL.L, Freeport McMoRan FCX.N and Antofagasta ANTO.L. SANTIAGO, July 17 (Reuters) - Global miner BHP Billiton BHP.AX is likely to reconsider its investment plans in Chile, the world's No. The company was quoted by El Mercurio newspaper as saying in a statement that higher taxes would make Chile more expensive than other top mining jurisdictions like Australia, Canada and neighboring Peru.
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Other global miners operating in Chile include Glencore GLEN.L, Anglo American AAL.L, Freeport McMoRan FCX.N and Antofagasta ANTO.L. SANTIAGO, July 17 (Reuters) - Global miner BHP Billiton BHP.AX is likely to reconsider its investment plans in Chile, the world's No. Chilean Finance Minister Mario Marcel has said that raising mining royalties is his "priority number one" and the top goal of the left-wing administration that was inaugurated earlier this year.
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Other global miners operating in Chile include Glencore GLEN.L, Anglo American AAL.L, Freeport McMoRan FCX.N and Antofagasta ANTO.L. SANTIAGO, July 17 (Reuters) - Global miner BHP Billiton BHP.AX is likely to reconsider its investment plans in Chile, the world's No. The company was quoted by El Mercurio newspaper as saying in a statement that higher taxes would make Chile more expensive than other top mining jurisdictions like Australia, Canada and neighboring Peru.
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Other global miners operating in Chile include Glencore GLEN.L, Anglo American AAL.L, Freeport McMoRan FCX.N and Antofagasta ANTO.L. SANTIAGO, July 17 (Reuters) - Global miner BHP Billiton BHP.AX is likely to reconsider its investment plans in Chile, the world's No. 1 copper producer, if the government moves ahead with mining tax hikes, according to a report on Sunday.
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3392.0
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2022-07-15 00:00:00 UTC
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American Airlines (AAL) Gains But Lags Market: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-gains-but-lags-market%3A-what-you-should-know-3
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nan
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nan
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American Airlines (AAL) closed at $14.47 in the latest trading session, marking a +1.54% move from the prior day. This change lagged the S&P 500's 1.92% gain on the day. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.16%.
Heading into today, shares of the world's largest airline had gained 17.19% over the past month, outpacing the Transportation sector's loss of 2.09% and the S&P 500's gain of 1.54% in that time.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. This is expected to be July 21, 2022. In that report, analysts expect American Airlines to post earnings of $0.79 per share. This would mark year-over-year growth of 146.75%. Meanwhile, our latest consensus estimate is calling for revenue of $13.41 billion, up 79.32% from the prior-year quarter.
AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.02 per share and revenue of $48.05 billion. These results would represent year-over-year changes of +87.83% and +60.8%, respectively.
Investors should also note any recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.11% lower. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) closed at $14.47 in the latest trading session, marking a +1.54% move from the prior day. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.02 per share and revenue of $48.05 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.02 per share and revenue of $48.05 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed at $14.47 in the latest trading session, marking a +1.54% move from the prior day.
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AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.02 per share and revenue of $48.05 billion. American Airlines (AAL) closed at $14.47 in the latest trading session, marking a +1.54% move from the prior day. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines (AAL) closed at $14.47 in the latest trading session, marking a +1.54% move from the prior day. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.02 per share and revenue of $48.05 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3393.0
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2022-07-15 00:00:00 UTC
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Previewing The Airliners: Can Shares Take Flight?
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AAL
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https://www.nasdaq.com/articles/previewing-the-airliners%3A-can-shares-take-flight
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nan
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Earnings season kicks off next week. Investors are more than eager for companies to unveil their quarterly results to understand better how they have navigated the rough economic waters we’ve found ourselves in.
A trio of airliners – United Air Lines UAL, American Air Lines AAL, and Southwest Airlines LUV – are all slated to release quarterly results within the next two weeks.
All three companies reside in the Zacks Transportation – Airline Industry, which has tumbled 22% year-to-date. The chart below illustrates the year-to-date performance of all three companies.
Image Source: Zacks Investment Research
It’s worth noting that the COVID-19 pandemic crushed demand but is quickly returning. Additionally, soaring fuel costs have undoubtedly impacted margins, and we saw this in Delta Air Lines’ DAL Q2 report; DAL missed the Zacks Consensus EPS Estimate by a double-digit 16% but posted a 1.6% top-line beat.
Let’s take a closer view of each company to see how they shape up heading into next week.
United Air Lines
United Air Lines UAL is currently a Zacks Rank #3 (Hold) with an overall VGM Score of an A. Over the last 60 days, analysts have substantially raised their earnings outlook across several timeframes.
For the quarter to be reported, the Consensus Estimate Trend has increased by 43%.
Image Source: Zacks Investment Research
The Zacks Consensus EPS Estimate for the upcoming quarter resides at $1.86, penciling in a massive triple-digit increase in earnings of nearly 150% year-over-year.
In addition, the quarterly revenue estimate of $12 billion notches a triple-digit 120% expansion in the top-line from the year-ago quarter.
Image Source: Zacks Investment Research
The company sports a 0.3X forward price-to-sales ratio, nicely below its five-year median value of 0.5X and well underneath highs of 0.9X in 2020. In addition, the value represents an enticing 83% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
UAL’s bottom-line results have primarily been mixed; over its last ten quarterly reports, the airliner has exceeded the Zacks Consensus EPS Estimate five times.
American Air Lines
American Air Lines AAL is a Zacks Rank #3 (Hold) with an overall VGM Score of a B. Analysts have extensively upped their earnings estimates for the current fiscal year and the upcoming quarter over the last 60 days.
The Consensus Estimate Trend for the upcoming quarter has soared by 44%.
Image Source: Zacks Investment Research
Currently, the Zacks Consensus EPS Estimate resides at $0.79, reflecting a triple-digit 145% uptick in quarterly earnings from the year-ago quarter.
Furthermore, the airliner is forecasted to generate $13.4 billion in revenue, good enough for a sizable double-digit 80% increase in quarterly revenue year-over-year.
Image Source: Zacks Investment Research
American Airlines boasts a 0.2X forward price-to-sales ratio, just above its five-year median value of 0.1X and nowhere near highs of 0.6X in 2020. Additionally, the value represents a solid 89% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
AAL has recently displayed consistency within its bottom-line, exceeding the Zacks Consensus EPS Estimate in seven consecutive quarters.
Southwest Airlines
Southwest Airlines LUV is a Zacks Rank #3 (Hold) with an overall VGM Score of an A. Similar to AAL and UAL, analysts have positively revised their earnings estimates substantially across several timeframes.
The Consensus Estimate Trend for the upcoming quarter has climbed 18.5% over the last 60 days.
Image Source: Zacks Investment Research
For the upcoming quarterly release, the Zacks Consensus EPS Estimate resides at $1.15, reflecting a jaw-dropping 430% growth in quarterly earnings year-over-year.
In addition, Southwest is forecasted to rake in $6.7 billion in revenue for the quarter, notching a 70% increase in revenue from the year-ago quarter.
Image Source: Zacks Investment Research
Southwest currently sports a 0.9X forward price-to-sales ratio, which is well below its five-year median value of 1.5X and nowhere near highs of 3.1X in 2020. Furthermore, the value represents a 36% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
The company has primarily reported bottom-line results above expectations; Southwest has exceeded the Zacks Consensus EPS Estimate seven times over its last ten quarterly reports.
Bottom Line
All three companies are expected to register substantial top and bottom-line growth, a reflection of the travel industry recovering following a once-in-a-lifetime pandemic that locked the world inside.
However, soaring costs are expected to weigh heavily on margins, a common theme we will see during the second round of quarterly results in 2022.
Delta Air Lines’ DAL quarterly report revealed that higher fuel costs negatively affected its bottom-line. In addition, shares didn’t react well to the quarterly release; shares lost nearly 5% in value following the report. Investors should be aware of the soaring costs that these airliners have had to face.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A trio of airliners – United Air Lines UAL, American Air Lines AAL, and Southwest Airlines LUV – are all slated to release quarterly results within the next two weeks. American Air Lines American Air Lines AAL is a Zacks Rank #3 (Hold) with an overall VGM Score of a B. Image Source: Zacks Investment Research AAL has recently displayed consistency within its bottom-line, exceeding the Zacks Consensus EPS Estimate in seven consecutive quarters.
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A trio of airliners – United Air Lines UAL, American Air Lines AAL, and Southwest Airlines LUV – are all slated to release quarterly results within the next two weeks. American Air Lines American Air Lines AAL is a Zacks Rank #3 (Hold) with an overall VGM Score of a B. Image Source: Zacks Investment Research AAL has recently displayed consistency within its bottom-line, exceeding the Zacks Consensus EPS Estimate in seven consecutive quarters.
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A trio of airliners – United Air Lines UAL, American Air Lines AAL, and Southwest Airlines LUV – are all slated to release quarterly results within the next two weeks. American Air Lines American Air Lines AAL is a Zacks Rank #3 (Hold) with an overall VGM Score of a B. Image Source: Zacks Investment Research AAL has recently displayed consistency within its bottom-line, exceeding the Zacks Consensus EPS Estimate in seven consecutive quarters.
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A trio of airliners – United Air Lines UAL, American Air Lines AAL, and Southwest Airlines LUV – are all slated to release quarterly results within the next two weeks. American Air Lines American Air Lines AAL is a Zacks Rank #3 (Hold) with an overall VGM Score of a B. Image Source: Zacks Investment Research AAL has recently displayed consistency within its bottom-line, exceeding the Zacks Consensus EPS Estimate in seven consecutive quarters.
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3394.0
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2022-07-15 00:00:00 UTC
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American Airlines to pre-pay for 50 air taxis from Vertical Aerospace
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-pre-pay-for-50-air-taxis-from-vertical-aerospace
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nan
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nan
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July 15 (Reuters) - Air taxi maker Vertical Aerospace M00.F said on Friday that American Airlines Group Inc AAL.O has agreed to make pre-delivery payments for 50 electric vertical takeoff and landing (eVTOL) aircraft, lifting its shares as much as 71%.
Last year, American Airlines had agreed to pre-order up to 250 of UK-based Vertical's eVTOL aircraft in a $1 billion deal, with an option to buy a 100 more.
Vertical's VA-X4 aircraft can carry four passengers and a pilot. It can fly at speeds of more than 200 mph over a range of above 100 miles.
The deal reflects growing interest in battery-powered aircraft that can take off and land vertically, offering a new way for travelers to beat traffic and hop between cities.
Vertical Aerospace had last year reported pre-orders for up to 1,350 aircraft worth $5 billion from customers including American Airlines and Virgin Atlantic.
U.S.-listed shares of Vertical were last up 52% at $4.43 in afternoon trade.
(Reporting by Kannaki Deka in Bengaluru; Editing by Devika Syamnath)
((Kannaki.Deka@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 15 (Reuters) - Air taxi maker Vertical Aerospace M00.F said on Friday that American Airlines Group Inc AAL.O has agreed to make pre-delivery payments for 50 electric vertical takeoff and landing (eVTOL) aircraft, lifting its shares as much as 71%. Last year, American Airlines had agreed to pre-order up to 250 of UK-based Vertical's eVTOL aircraft in a $1 billion deal, with an option to buy a 100 more. The deal reflects growing interest in battery-powered aircraft that can take off and land vertically, offering a new way for travelers to beat traffic and hop between cities.
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July 15 (Reuters) - Air taxi maker Vertical Aerospace M00.F said on Friday that American Airlines Group Inc AAL.O has agreed to make pre-delivery payments for 50 electric vertical takeoff and landing (eVTOL) aircraft, lifting its shares as much as 71%. Last year, American Airlines had agreed to pre-order up to 250 of UK-based Vertical's eVTOL aircraft in a $1 billion deal, with an option to buy a 100 more. Vertical Aerospace had last year reported pre-orders for up to 1,350 aircraft worth $5 billion from customers including American Airlines and Virgin Atlantic.
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July 15 (Reuters) - Air taxi maker Vertical Aerospace M00.F said on Friday that American Airlines Group Inc AAL.O has agreed to make pre-delivery payments for 50 electric vertical takeoff and landing (eVTOL) aircraft, lifting its shares as much as 71%. Last year, American Airlines had agreed to pre-order up to 250 of UK-based Vertical's eVTOL aircraft in a $1 billion deal, with an option to buy a 100 more. Vertical Aerospace had last year reported pre-orders for up to 1,350 aircraft worth $5 billion from customers including American Airlines and Virgin Atlantic.
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July 15 (Reuters) - Air taxi maker Vertical Aerospace M00.F said on Friday that American Airlines Group Inc AAL.O has agreed to make pre-delivery payments for 50 electric vertical takeoff and landing (eVTOL) aircraft, lifting its shares as much as 71%. Last year, American Airlines had agreed to pre-order up to 250 of UK-based Vertical's eVTOL aircraft in a $1 billion deal, with an option to buy a 100 more. Vertical's VA-X4 aircraft can carry four passengers and a pilot.
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3395.0
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2022-07-14 00:00:00 UTC
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Airline Stock Roundup: DAL's Q2 Earnings Miss, AAL's Bullish Q2 Revenue View & More
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-dals-q2-earnings-miss-aals-bullish-q2-revenue-view-more
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nan
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On Jul 13, Delta Air Lines DAL kick-started the second-quarter 2022 earnings season in the airline space. This Atlanta-based carrier reported lower-than-expected earnings per share due to high fuel costs. American Airlines AAL was also in the news when its management stated that it expects to deliver its first quarterly pre-tax profit for the June quarter since the start of the pandemic. AAL expects its second-quarter total revenues to be up approximately 12% from the second-quarter 2019 level. AAL again recently grabbed headlines owing to a positive labor update, reported in detail in the previous week’s roundup.
Copa Holdings CPA reported a 3.4% decline for the June 2022 traffic from the June 2019 actuals. In the latest update on the acquisition saga of Spirit Airlines SAVE, management delayed its shareholders’ vote on the buyout offer put forward by Frontier Group Holdings ULCC to Jul 27.
Recap of the Latest Top Stories
1.Delta’s second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71. Escalated operating expenses induced the earnings miss. Multiple flight cancellations in May and June also hurt results. Delta’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million but also soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows. Total operating expenses, including special items, escalated 18% to $12,305 million. Aircraft fuel expenses and related taxes surged 41% to $3,223 million in the reported quarter. Fuel gallons consumed contracted 22% to $863 million. Average fuel price per gallon (adjusted) surged 85% to $3.82.
Adjusted operating margin was 11.7%. This was the first quarter where DAL, currently carrying a Zacks Rank #3 (Hold), generated a double-digit operating margin since 2019. DAL remains on track to achieve its 2024 targets of more than $7 in adjusted earnings per share and $4 billion of free cash flow.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. American Airlines expects to earn a pre-tax income of $585 million during the quarter. Pre-tax margin (excluding net special items) is expected to be 5%. AAL expects its second-quarter 2022 total revenues to be up approximately 12% from the second-quarter 2019 figure. Total revenue per available seat miles (TRASM) is expected to be up 22.5% from the second-quarter 2019 actuals (earlier guidance was an increase in the 20-22% range). AAL now expects its second-quarter cost per available seat miles in the June quarter to be up approximately 12% from the second-quarter 2019 level (earlier guidance was an increase in the 10-11% range). Average fuel cost per gallon is likely to be in the $4-4.05 range. Fuel gallons consumed are likely to be $997 million. Detailed second-quarter results will be out on Jul 21.
3. Frontier Group Holdings refused to raise its offer price further for taking over SAVE. This means that ULCC will stick to its last month’s offer, whereby per-share cash consideration payable to Spirit Airlines’ shareholders will be $4.13. This is in addition to 1.9126 Frontier shares that ULCC had agreed to pay previously. ULCC will also prepay $2.22 per share to SAVE’s shareholders as a cash dividend if the transaction is approved. The reverse termination fee is $350 million, payable to Spirit Airlines in case the deal fails to materialize due to antitrust concerns. Per ULCC’s CEO Barry Biffle, SAVE should consider last month's revised merger agreement as its "last, best and final offer."
Biffle also requested SAVE management to defer its shareholders’ vote on the buyout offer put forward by ULCC to Jul 27 from Jul 15. He emphasized the need for more time to gather support. SAVE complied with this request, marking the fourth deferment of the meeting date.
4. Copa Holdings’ traffic, measured in revenue passenger miles (RPMs), dipped 3.4% to 1.69 billion in June 2022 from the comparable period’s level in 2019. The downside was primarily due to coronavirus-induced lower air-travel demand than the pre-pandemic levels (2019). Due to tepid demand, capacity — measured in available seat miles (ASMs) — fell 1.8% from the 2019 level to 2 billion. With traffic declining more than the extent of capacity contraction, load factor (percentage of seats filled with passengers) deteriorated 140 basis points (bps) to 83.7% in June.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that airline stocks have exhibited a mixed trend with respect to price over the past five trading days. The NYSE ARCA Airline Index increased marginally to $57.03. Over the past six months, the NYSE ARCA Airline Index has plummeted 32%.
What's Next in the Airline Space?
Q2 earnings reports from the likes of American Airlines are scheduled to be out in the coming days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
Frontier Group Holdings, Inc. (ULCC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL was also in the news when its management stated that it expects to deliver its first quarterly pre-tax profit for the June quarter since the start of the pandemic. AAL expects its second-quarter total revenues to be up approximately 12% from the second-quarter 2019 level. AAL again recently grabbed headlines owing to a positive labor update, reported in detail in the previous week’s roundup.
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American Airlines AAL was also in the news when its management stated that it expects to deliver its first quarterly pre-tax profit for the June quarter since the start of the pandemic. AAL expects its second-quarter total revenues to be up approximately 12% from the second-quarter 2019 level. AAL again recently grabbed headlines owing to a positive labor update, reported in detail in the previous week’s roundup.
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AAL now expects its second-quarter cost per available seat miles in the June quarter to be up approximately 12% from the second-quarter 2019 level (earlier guidance was an increase in the 10-11% range). American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines AAL was also in the news when its management stated that it expects to deliver its first quarterly pre-tax profit for the June quarter since the start of the pandemic.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines AAL was also in the news when its management stated that it expects to deliver its first quarterly pre-tax profit for the June quarter since the start of the pandemic. AAL expects its second-quarter total revenues to be up approximately 12% from the second-quarter 2019 level.
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3396.0
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2022-07-14 00:00:00 UTC
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American Airlines (AAL) Dips More Than Broader Markets: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-dips-more-than-broader-markets%3A-what-you-should-know-1
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nan
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American Airlines (AAL) closed the most recent trading day at $14.25, moving -0.42% from the previous trading session. This change lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Coming into today, shares of the world's largest airline had gained 7.51% in the past month. In that same time, the Transportation sector lost 0.6%, while the S&P 500 gained 1.51%.
American Airlines will be looking to display strength as it nears its next earnings release, which is expected to be July 21, 2022. The company is expected to report EPS of $0.79, up 146.75% from the prior-year quarter.
AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.01 per share and revenue of $48 billion. These results would represent year-over-year changes of +87.95% and +60.63%, respectively.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.41% lower within the past month. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.01 per share and revenue of $48 billion. American Airlines (AAL) closed the most recent trading day at $14.25, moving -0.42% from the previous trading session. To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
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American Airlines (AAL) closed the most recent trading day at $14.25, moving -0.42% from the previous trading session. American Airlines Group Inc. (AAL): Free Stock Analysis Report AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.01 per share and revenue of $48 billion.
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American Airlines (AAL) closed the most recent trading day at $14.25, moving -0.42% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.01 per share and revenue of $48 billion. To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed the most recent trading day at $14.25, moving -0.42% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.01 per share and revenue of $48 billion.
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3397.0
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2022-07-14 00:00:00 UTC
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Peru maintains 3.6% growth forecast for 2022 despite slowdown concerns
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AAL
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https://www.nasdaq.com/articles/peru-maintains-3.6-growth-forecast-for-2022-despite-slowdown-concerns
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nan
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nan
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Adds details and background
LIMA, July 14 (Reuters) - Peruvian Finance Minister Oscar Graham said on Thursday that he still expects the country's economy to grow 3.6% in 2022, reiterating an earlier forecast despite growing concerns about the potential for a worldwide economic slowdown.
"With the information we have from the first four months, we still maintain the 3.6% forecast, however this is a (figure) that is under constant review," Graham said in a conference with the foreign press.
Graham said the figure could be revised in August, when Peru usually updates its multi-annual economic forecasts.
Peru is one of Latin America's most sable economies and the world's No. 2 copper producer. While copper prices have fallen in recent weeks, Graham said they are still within expected parameters.
Anglo American AAL.L has recently opened its large Quellaveco copper mine, which Graham expects will contribute 0.4 percentage points to Peru's gross domestic product this year and 1.0 percent in 2023.
(Reporting by Marco Aquino; Writing by Marcelo Rochabrun; Editing by Sandra Maler)
((marcelo.rochabrun@thomsonreuters.com; +55 11 5644 7768;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Anglo American AAL.L has recently opened its large Quellaveco copper mine, which Graham expects will contribute 0.4 percentage points to Peru's gross domestic product this year and 1.0 percent in 2023. Adds details and background LIMA, July 14 (Reuters) - Peruvian Finance Minister Oscar Graham said on Thursday that he still expects the country's economy to grow 3.6% in 2022, reiterating an earlier forecast despite growing concerns about the potential for a worldwide economic slowdown. "With the information we have from the first four months, we still maintain the 3.6% forecast, however this is a (figure) that is under constant review," Graham said in a conference with the foreign press.
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Anglo American AAL.L has recently opened its large Quellaveco copper mine, which Graham expects will contribute 0.4 percentage points to Peru's gross domestic product this year and 1.0 percent in 2023. Adds details and background LIMA, July 14 (Reuters) - Peruvian Finance Minister Oscar Graham said on Thursday that he still expects the country's economy to grow 3.6% in 2022, reiterating an earlier forecast despite growing concerns about the potential for a worldwide economic slowdown. Graham said the figure could be revised in August, when Peru usually updates its multi-annual economic forecasts.
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Anglo American AAL.L has recently opened its large Quellaveco copper mine, which Graham expects will contribute 0.4 percentage points to Peru's gross domestic product this year and 1.0 percent in 2023. Adds details and background LIMA, July 14 (Reuters) - Peruvian Finance Minister Oscar Graham said on Thursday that he still expects the country's economy to grow 3.6% in 2022, reiterating an earlier forecast despite growing concerns about the potential for a worldwide economic slowdown. Graham said the figure could be revised in August, when Peru usually updates its multi-annual economic forecasts.
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Anglo American AAL.L has recently opened its large Quellaveco copper mine, which Graham expects will contribute 0.4 percentage points to Peru's gross domestic product this year and 1.0 percent in 2023. Adds details and background LIMA, July 14 (Reuters) - Peruvian Finance Minister Oscar Graham said on Thursday that he still expects the country's economy to grow 3.6% in 2022, reiterating an earlier forecast despite growing concerns about the potential for a worldwide economic slowdown. "With the information we have from the first four months, we still maintain the 3.6% forecast, however this is a (figure) that is under constant review," Graham said in a conference with the foreign press.
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3398.0
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2022-07-14 00:00:00 UTC
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S&P 500 Movers: CAG, AAL
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AAL
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https://www.nasdaq.com/articles/sp-500-movers%3A-cag-aal
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nan
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nan
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In early trading on Thursday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 2.7%. Year to date, American Airlines Group has lost about 18.2% of its value.
And the worst performing S&P 500 component thus far on the day is Conagra Brands, trading down 6.5%. Conagra Brands is lower by about 2.1% looking at the year to date performance.
Two other components making moves today are Halliburton, trading down 5.2%, and First Republic Bank, trading up 1.9% on the day.
VIDEO: S&P 500 Movers: CAG, AAL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: S&P 500 Movers: CAG, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, American Airlines Group has lost about 18.2% of its value. And the worst performing S&P 500 component thus far on the day is Conagra Brands, trading down 6.5%.
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VIDEO: S&P 500 Movers: CAG, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 2.7%. Year to date, American Airlines Group has lost about 18.2% of its value.
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VIDEO: S&P 500 Movers: CAG, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 2.7%. And the worst performing S&P 500 component thus far on the day is Conagra Brands, trading down 6.5%.
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VIDEO: S&P 500 Movers: CAG, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 2.7%. And the worst performing S&P 500 component thus far on the day is Conagra Brands, trading down 6.5%.
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3399.0
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2022-07-14 00:00:00 UTC
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Net zero climate target could fail without more copper supply -report
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AAL
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https://www.nasdaq.com/articles/net-zero-climate-target-could-fail-without-more-copper-supply-report
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nan
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nan
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By Ernest Scheyder
July 14 (Reuters) - Efforts to reach carbon neutrality by 2050 are likely to remain out of reach as copper supply fails to match demand amid growing use of solar panels, electric vehicles and other renewable technologies, data from S&P Global showed on Thursday.
The world's appetite for the red metal will reach 53 million tonnes annually by mid-century - more than double current levels - but fall short of supply by 2.7 million tonnes without more recycling and mining, the report forecasts.
"People who say that there's enough copper supply out there are not taking into account the scale of the energy transition," Dan Yergin, S&P's vice chairman, told Reuters. "Without some give, you're not going to be able to achieve those climate goals."
Reaching carbon neutrality by 2050, a goal often described as "net zero," is the central aim of the Paris Climate Accords. Copper is used to make wiring found in a range of electronic devices. Electric vehicles use twice as much copper as internal combustion engines.
U.S. copper imports, the report found, are likely to grow from about 44% of the nation's consumption this year to as much as 67% by 2035. Several proposed copper mines across the country face strong political opposition, which could limit domestic production growth.
The report said more efficient uses of copper through technological innovation are more likely than requiring consumers to use fewer products built with copper.
Teck Resources Ltd TECKb.TO, Glencore Plc GLEN.L and other copper producers helped fund the report. S&P said none of the sponsors had any editorial control or saw the report until it was publicly released.
G7 aims to form 'Climate Club' to pursue net zero by 2050: communique
White House backs 2030 milestone on path to net zero grid
Investor group to pressure utilities on net zero emissions deadline
U.S. no longer 'stable regulatory climate,' miner Antofagasta says
Miners turn to bacteria and other new ways to leach copper from waste rock
U.S. court upholds Arizona land swap deal for Rio Tinto copper mine
(Reporting by Ernest Scheyder; Editing by Sam Holmes)
((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"People who say that there's enough copper supply out there are not taking into account the scale of the energy transition," Dan Yergin, S&P's vice chairman, told Reuters. Several proposed copper mines across the country face strong political opposition, which could limit domestic production growth. G7 aims to form 'Climate Club' to pursue net zero by 2050: communique White House backs 2030 milestone on path to net zero grid Investor group to pressure utilities on net zero emissions deadline U.S. no longer 'stable regulatory climate,' miner Antofagasta says Miners turn to bacteria and other new ways to leach copper from waste rock U.S. court upholds Arizona land swap deal for Rio Tinto copper mine (Reporting by Ernest Scheyder; Editing by Sam Holmes) ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Ernest Scheyder July 14 (Reuters) - Efforts to reach carbon neutrality by 2050 are likely to remain out of reach as copper supply fails to match demand amid growing use of solar panels, electric vehicles and other renewable technologies, data from S&P Global showed on Thursday. The world's appetite for the red metal will reach 53 million tonnes annually by mid-century - more than double current levels - but fall short of supply by 2.7 million tonnes without more recycling and mining, the report forecasts. G7 aims to form 'Climate Club' to pursue net zero by 2050: communique White House backs 2030 milestone on path to net zero grid Investor group to pressure utilities on net zero emissions deadline U.S. no longer 'stable regulatory climate,' miner Antofagasta says Miners turn to bacteria and other new ways to leach copper from waste rock U.S. court upholds Arizona land swap deal for Rio Tinto copper mine (Reporting by Ernest Scheyder; Editing by Sam Holmes) ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Ernest Scheyder July 14 (Reuters) - Efforts to reach carbon neutrality by 2050 are likely to remain out of reach as copper supply fails to match demand amid growing use of solar panels, electric vehicles and other renewable technologies, data from S&P Global showed on Thursday. The report said more efficient uses of copper through technological innovation are more likely than requiring consumers to use fewer products built with copper. G7 aims to form 'Climate Club' to pursue net zero by 2050: communique White House backs 2030 milestone on path to net zero grid Investor group to pressure utilities on net zero emissions deadline U.S. no longer 'stable regulatory climate,' miner Antofagasta says Miners turn to bacteria and other new ways to leach copper from waste rock U.S. court upholds Arizona land swap deal for Rio Tinto copper mine (Reporting by Ernest Scheyder; Editing by Sam Holmes) ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Ernest Scheyder July 14 (Reuters) - Efforts to reach carbon neutrality by 2050 are likely to remain out of reach as copper supply fails to match demand amid growing use of solar panels, electric vehicles and other renewable technologies, data from S&P Global showed on Thursday. The world's appetite for the red metal will reach 53 million tonnes annually by mid-century - more than double current levels - but fall short of supply by 2.7 million tonnes without more recycling and mining, the report forecasts. Reaching carbon neutrality by 2050, a goal often described as "net zero," is the central aim of the Paris Climate Accords.
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