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3400.0
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2022-07-14 00:00:00 UTC
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Big Tech, Blue Chip Earnings Highlight Next Week
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AAL
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https://www.nasdaq.com/articles/big-tech-blue-chip-earnings-highlight-next-week
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nan
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nan
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Corporate earnings will be the talk of Wall Street next week, with many companies expected to step into the confessional as the earnings season ramps up, including Big Tech names and Dow members. As if that weren't enough, investors will also be sifting through some key manufacturing and services data.
Some of the top names expected to report results include American Airlines (AAL), AT&T (T), Bank of America (BAC), Biogen (BIIB), Boston Beer (SAM), Cal-Maine Foods (CALM), Dow (DOW), Goldman Sachs (GS), Halliburton (HAL), IBM (IBM), J.B. Hunt Transport (JBHT), Johnson & Johnson (JNJ), Lockheed Martin (LMT), Netflix (NFLX), Snap (SNAP), Tesla (TSLA), Twitter (TWTR), United Airlines (UAL), and Verizon (VZ).
Below is a list of key market events scheduled for the upcoming week. All economic dates listed below are tentative and subject to change.
The National Association of Home Builders (NAHB) home builders' index is scheduled for Monday, July 18.
Tuesday, July 19 will be relatively quiet, other than building permits and housing starts data.
Existing home sales data will highlight Wednesday, July 20.
The usual round of initial and continuing jobless data is due out on Thursday, July 21, in addition to the Philadelphia Federal Reserve manufacturing index and leading economic indicators.
Friday, July 22 brings the S&P Global U.S. manufacturing purchasing managers' index (PMI), as well as the services PMI.
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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Some of the top names expected to report results include American Airlines (AAL), AT&T (T), Bank of America (BAC), Biogen (BIIB), Boston Beer (SAM), Cal-Maine Foods (CALM), Dow (DOW), Goldman Sachs (GS), Halliburton (HAL), IBM (IBM), J.B. Hunt Transport (JBHT), Johnson & Johnson (JNJ), Lockheed Martin (LMT), Netflix (NFLX), Snap (SNAP), Tesla (TSLA), Twitter (TWTR), United Airlines (UAL), and Verizon (VZ). Tuesday, July 19 will be relatively quiet, other than building permits and housing starts data. The usual round of initial and continuing jobless data is due out on Thursday, July 21, in addition to the Philadelphia Federal Reserve manufacturing index and leading economic indicators.
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Some of the top names expected to report results include American Airlines (AAL), AT&T (T), Bank of America (BAC), Biogen (BIIB), Boston Beer (SAM), Cal-Maine Foods (CALM), Dow (DOW), Goldman Sachs (GS), Halliburton (HAL), IBM (IBM), J.B. Hunt Transport (JBHT), Johnson & Johnson (JNJ), Lockheed Martin (LMT), Netflix (NFLX), Snap (SNAP), Tesla (TSLA), Twitter (TWTR), United Airlines (UAL), and Verizon (VZ). As if that weren't enough, investors will also be sifting through some key manufacturing and services data. The National Association of Home Builders (NAHB) home builders' index is scheduled for Monday, July 18.
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Some of the top names expected to report results include American Airlines (AAL), AT&T (T), Bank of America (BAC), Biogen (BIIB), Boston Beer (SAM), Cal-Maine Foods (CALM), Dow (DOW), Goldman Sachs (GS), Halliburton (HAL), IBM (IBM), J.B. Hunt Transport (JBHT), Johnson & Johnson (JNJ), Lockheed Martin (LMT), Netflix (NFLX), Snap (SNAP), Tesla (TSLA), Twitter (TWTR), United Airlines (UAL), and Verizon (VZ). The National Association of Home Builders (NAHB) home builders' index is scheduled for Monday, July 18. The usual round of initial and continuing jobless data is due out on Thursday, July 21, in addition to the Philadelphia Federal Reserve manufacturing index and leading economic indicators.
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Some of the top names expected to report results include American Airlines (AAL), AT&T (T), Bank of America (BAC), Biogen (BIIB), Boston Beer (SAM), Cal-Maine Foods (CALM), Dow (DOW), Goldman Sachs (GS), Halliburton (HAL), IBM (IBM), J.B. Hunt Transport (JBHT), Johnson & Johnson (JNJ), Lockheed Martin (LMT), Netflix (NFLX), Snap (SNAP), Tesla (TSLA), Twitter (TWTR), United Airlines (UAL), and Verizon (VZ). Corporate earnings will be the talk of Wall Street next week, with many companies expected to step into the confessional as the earnings season ramps up, including Big Tech names and Dow members. As if that weren't enough, investors will also be sifting through some key manufacturing and services data.
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3401.0
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2022-07-13 00:00:00 UTC
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United Airlines, pilots' union to restart negotiations for new contract - CNBC
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AAL
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https://www.nasdaq.com/articles/united-airlines-pilots-union-to-restart-negotiations-for-new-contract-cnbc
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nan
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nan
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July 13 (Reuters) - United Airlines Holdings Inc UAL.O and its pilot union are back at the negotiating table for a new contract, after reaching a tentative agreement last month, CNBC reported on Wednesday.
The United branch of the Air Line Pilots Association (ALPA) said the current agreement "fell short" of some pilots' expectations, according to the report. (https://cnb.cx/3AJycsN)
United Airlines and ALPA did not immediately respond to a Reuters' request for comment.
The tentative deal approved last month was set to give pilots a more than 14% pay raise in the next 18 months when calculated from the beginning of the year.
The two-year agreement, previously approved by union leaders, was sent out to members for ratification and expected to settle by July 15.
United was the first major U.S. airline that reached an agreement with its pilots on new contract and was expected to act as a benchmark for contract negotiations at other carriers.
ALPA represents more than 62,000 pilots at 38 U.S. and Canadian airlines, making it the world's largest airline pilot union, according to its website.
Almost all the major airlines have been facing protests from pilots demanding higher pay and improvements in "fatiguing" schedules in their new contracts.
To attract and retain talent, three regional carriers owned by American Airlines AAL.O this month announced hefty pay increases for pilots. Piedmont Airlines increased pay for its pilots by as much as 87%.
(Reporting by Shivani Tanna in Bengaluru; Editing by Rashmi Aich)
((ShivaniJayesh.Tanna@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.
|
To attract and retain talent, three regional carriers owned by American Airlines AAL.O this month announced hefty pay increases for pilots. July 13 (Reuters) - United Airlines Holdings Inc UAL.O and its pilot union are back at the negotiating table for a new contract, after reaching a tentative agreement last month, CNBC reported on Wednesday. Almost all the major airlines have been facing protests from pilots demanding higher pay and improvements in "fatiguing" schedules in their new contracts.
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To attract and retain talent, three regional carriers owned by American Airlines AAL.O this month announced hefty pay increases for pilots. July 13 (Reuters) - United Airlines Holdings Inc UAL.O and its pilot union are back at the negotiating table for a new contract, after reaching a tentative agreement last month, CNBC reported on Wednesday. United was the first major U.S. airline that reached an agreement with its pilots on new contract and was expected to act as a benchmark for contract negotiations at other carriers.
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To attract and retain talent, three regional carriers owned by American Airlines AAL.O this month announced hefty pay increases for pilots. July 13 (Reuters) - United Airlines Holdings Inc UAL.O and its pilot union are back at the negotiating table for a new contract, after reaching a tentative agreement last month, CNBC reported on Wednesday. United was the first major U.S. airline that reached an agreement with its pilots on new contract and was expected to act as a benchmark for contract negotiations at other carriers.
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To attract and retain talent, three regional carriers owned by American Airlines AAL.O this month announced hefty pay increases for pilots. July 13 (Reuters) - United Airlines Holdings Inc UAL.O and its pilot union are back at the negotiating table for a new contract, after reaching a tentative agreement last month, CNBC reported on Wednesday. United was the first major U.S. airline that reached an agreement with its pilots on new contract and was expected to act as a benchmark for contract negotiations at other carriers.
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3402.0
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2022-07-13 00:00:00 UTC
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U.S. OKs American Airlines bid to resume service to some Cuban airports
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AAL
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https://www.nasdaq.com/articles/u.s.-oks-american-airlines-bid-to-resume-service-to-some-cuban-airports
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nan
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nan
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By David Shepardson
WASHINGTON, July 13 (Reuters) - The U.S. Transportation Department (USDOT) on Wednesday approved American Airlines' AAL.O request to resume service to some smaller Cuban airports after President Joe Biden reversed his predecessor's policy.
American sought approval for flights from Miami to Santa Clara, Holguin, Matanzas/Varadero and Santiago de Cuba after the administration of then President Donald Trump barred passenger airline flights between smaller Cuban airports.
The airline said in a filing the flights "will enhance service and access between the U.S. and these non-Havana points, after more than two years during which such service was suspended."
American added it will "fulfill the public interest by offering and maintaining the best connectivity to Cuba via its Miami hub and providing substantial competition to other U.S. carriers serving Cuba."
Last month, USDOT revoked a series of restrictions on flights to Cuba, including ending a prohibition on U.S. airline flights to Cuban airports other than Havana. The Trump administration had issued a series of aviation restrictions in 2019 and 2020 in a bid to increase U.S. economic pressure on the Cuban government.
The USDOT order in June was issued at the request of Secretary of State Antony Blinken, who said the action was "in support of the Cuban people, and in the foreign policy interests of the United States."
The White House in May had signaled the planned move as part of a broader revision of policy toward Cuba.
Under President Donald Trump, USDOT imposed a cap on charter flights to Cuba at 3,600 per year and later suspended private charter flights to the country. The department also barred charter flights to any Cuban airports except Havana.
Then Secretary of State Mike Pompeo said Cuba "uses tourism and travel funds to finance its abuses and interference in Venezuela. Dictators cannot be allowed to benefit from U.S. travel."
(Reporting by David Shepardson; Editing by Kirsten Donovan)
((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, July 13 (Reuters) - The U.S. Transportation Department (USDOT) on Wednesday approved American Airlines' AAL.O request to resume service to some smaller Cuban airports after President Joe Biden reversed his predecessor's policy. The Trump administration had issued a series of aviation restrictions in 2019 and 2020 in a bid to increase U.S. economic pressure on the Cuban government. Then Secretary of State Mike Pompeo said Cuba "uses tourism and travel funds to finance its abuses and interference in Venezuela.
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By David Shepardson WASHINGTON, July 13 (Reuters) - The U.S. Transportation Department (USDOT) on Wednesday approved American Airlines' AAL.O request to resume service to some smaller Cuban airports after President Joe Biden reversed his predecessor's policy. American sought approval for flights from Miami to Santa Clara, Holguin, Matanzas/Varadero and Santiago de Cuba after the administration of then President Donald Trump barred passenger airline flights between smaller Cuban airports. The department also barred charter flights to any Cuban airports except Havana.
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By David Shepardson WASHINGTON, July 13 (Reuters) - The U.S. Transportation Department (USDOT) on Wednesday approved American Airlines' AAL.O request to resume service to some smaller Cuban airports after President Joe Biden reversed his predecessor's policy. American sought approval for flights from Miami to Santa Clara, Holguin, Matanzas/Varadero and Santiago de Cuba after the administration of then President Donald Trump barred passenger airline flights between smaller Cuban airports. Last month, USDOT revoked a series of restrictions on flights to Cuba, including ending a prohibition on U.S. airline flights to Cuban airports other than Havana.
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By David Shepardson WASHINGTON, July 13 (Reuters) - The U.S. Transportation Department (USDOT) on Wednesday approved American Airlines' AAL.O request to resume service to some smaller Cuban airports after President Joe Biden reversed his predecessor's policy. American sought approval for flights from Miami to Santa Clara, Holguin, Matanzas/Varadero and Santiago de Cuba after the administration of then President Donald Trump barred passenger airline flights between smaller Cuban airports. Last month, USDOT revoked a series of restrictions on flights to Cuba, including ending a prohibition on U.S. airline flights to Cuban airports other than Havana.
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3403.0
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2022-07-13 00:00:00 UTC
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Delta misses earnings estimates, shares fall
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AAL
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https://www.nasdaq.com/articles/delta-misses-earnings-estimates-shares-fall
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, July 13 (Reuters) - Delta Air Lines Inc DAL.N on Wednesday posted a lower-than-expected second-quarter profit on higher operating expenses, sending its shares lower in pre-market trade.
The Atlanta-based carrier, however, said a resilient travel demand will result in a solid profit in the quarter through September and a "meaningful" profit for the full-year.
"This is an industry that hasn't seen demand in a material way for two years, and so we have a lot of consumers with a tremendous urge and desire to travel," Chief Executive Ed Bastian said in an interview.
Delta reported an adjusted profit of $1.44 per share for the quarter through June, below analysts' expectations of $1.73 per share, according to Refinitiv.
While the result suffered on account of higher fuel costs and recent flight disruptions, it still marked the carrier's best performance since 2019.
The company's shares were down 2.7% at $30.21 in pre-market trade.
American carriers are enjoying the strongest summer travel season in three years as more people resume regular activities including vacations, and the lifting of pandemic travel restrictions has sent bookings soaring. International traffic is on a rebound, while office reopenings are fueling corporate travel demand.
U.S. passenger traffic is up 18% this summer from a year ago and has been averaging about 89% of the pre-pandemic levels since the Memorial Day holiday weekend in May, according to Transportation Security Administration data, making for a profitable second-quarter for most of the major carriers despite inflationary pressure.
Rival American Airlines AAL.O on Tuesday forecast its first quarterly profit since the onset of the pandemic.
The NYSE Arca Airline index .XAL has fallen 22% since early May on concerns that higher air fares, a worsening economic outlook, persistently high inflation and rising interest rates could dent travel spending in the second half of the year.
Delta, however, said fall travel bookings were strong.
"The demand is going to continue to hold fairly well through the fall and into the winter," Bastian said.
The company's third-quarter operating margin is estimated to be in the range of 11%-13%. It expects revenue for the September quarter to be up as much as 5% from 2019, even as its capacity is projected to be down 15%-17%. Non fuel operating expense for the quarter is estimated to be 22% above the 2019 level.
Delta said restoring operational reliability is its top priority. The carrier's performance in recent weeks has been marred by flight delays and cancellations caused by staffing gaps, weather and air traffic control constraints.
The company said its performance in July, however, is off to a good start. To ease a staffing crunch, the airline has deployed hundreds of employees from its corporate offices at airports in Atlanta and New York to assist with check-in and baggage drop-off.
(Reporting by Rajesh Kumar Singh Editing by Bill Berkrot and David Evans)
((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.
|
Rival American Airlines AAL.O on Tuesday forecast its first quarterly profit since the onset of the pandemic. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines Inc DAL.N on Wednesday posted a lower-than-expected second-quarter profit on higher operating expenses, sending its shares lower in pre-market trade. U.S. passenger traffic is up 18% this summer from a year ago and has been averaging about 89% of the pre-pandemic levels since the Memorial Day holiday weekend in May, according to Transportation Security Administration data, making for a profitable second-quarter for most of the major carriers despite inflationary pressure.
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Rival American Airlines AAL.O on Tuesday forecast its first quarterly profit since the onset of the pandemic. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines Inc DAL.N on Wednesday posted a lower-than-expected second-quarter profit on higher operating expenses, sending its shares lower in pre-market trade. International traffic is on a rebound, while office reopenings are fueling corporate travel demand.
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Rival American Airlines AAL.O on Tuesday forecast its first quarterly profit since the onset of the pandemic. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines Inc DAL.N on Wednesday posted a lower-than-expected second-quarter profit on higher operating expenses, sending its shares lower in pre-market trade. The Atlanta-based carrier, however, said a resilient travel demand will result in a solid profit in the quarter through September and a "meaningful" profit for the full-year.
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Rival American Airlines AAL.O on Tuesday forecast its first quarterly profit since the onset of the pandemic. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines Inc DAL.N on Wednesday posted a lower-than-expected second-quarter profit on higher operating expenses, sending its shares lower in pre-market trade. The Atlanta-based carrier, however, said a resilient travel demand will result in a solid profit in the quarter through September and a "meaningful" profit for the full-year.
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3404.0
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2022-07-13 00:00:00 UTC
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Company News for Jul 13, 2022
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AAL
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https://www.nasdaq.com/articles/company-news-for-jul-13-2022
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nan
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nan
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Shares of The Gap, Inc. GPS plunged 5% following its announcement that its CEO, Sonia Syngal, would be stepping down, and that input costs would keep margins down in the second quarter.
ServiceNow, Inc.’s NOW shares plummeted 12.7% after its CEO made remarks on macro headwinds and international currency pressures.
Shares of The Boeing Company BA surged 7.4% after the company reported a more than three-year high monthly aircraft deliveries.
American Airlines Group Inc.’s AAL shares soared 10% after the company announced that it expects its revenues for the second quarter to be more than the 2019 levels.
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The Boeing Company (BA): Free Stock Analysis Report
The Gap, Inc. (GPS): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
ServiceNow, Inc. (NOW): 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.’s AAL shares soared 10% after the company announced that it expects its revenues for the second quarter to be more than the 2019 levels. American Airlines Group Inc. (AAL): Free Stock Analysis Report Shares of The Gap, Inc. GPS plunged 5% following its announcement that its CEO, Sonia Syngal, would be stepping down, and that input costs would keep margins down in the second quarter.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines Group Inc.’s AAL shares soared 10% after the company announced that it expects its revenues for the second quarter to be more than the 2019 levels. The Boeing Company (BA): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines Group Inc.’s AAL shares soared 10% after the company announced that it expects its revenues for the second quarter to be more than the 2019 levels. The Boeing Company (BA): Free Stock Analysis Report
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American Airlines Group Inc.’s AAL shares soared 10% after the company announced that it expects its revenues for the second quarter to be more than the 2019 levels. American Airlines Group Inc. (AAL): Free Stock Analysis Report Zacks' Top Picks to Cash in on Electric Vehicles Big money has already been made in the Electric Vehicle (EV) industry.
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3405.0
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2022-07-13 00:00:00 UTC
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Delta sees 'meaningful' full-year profit on resilient consumer demand
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AAL
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https://www.nasdaq.com/articles/delta-sees-meaningful-full-year-profit-on-resilient-consumer-demand
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, July 13 (Reuters) - Delta Air Lines Inc DAL.N on Wednesday forecast a "meaningful" profit for the full-year as robust travel demand helped it post its strongest quarterly earnings since the start of the pandemic.
The Atlanta-based carrier expects a solid profit in the third quarter as well, with operating margin estimated to be in the range of 11%-13%. The No 3. U.S. airline by fleet size said there is no evidence of a pullback in consumer demand.
It reported an adjusted profit of $1.44 per share for the second quarter. That was below analysts' expectations of $1.73 per share, according to Refinitiv, yet still marked the carrier's best performance since 2019.
Revenue for the quarter through June came in at $13.8 billion, topping Wall Street estimates.
"This is an industry that hasn't seen demand in a material way for two years, and so we have a lot of consumers with a tremendous urge and desire to travel," Chief Executive Ed Bastian said in an interview.
American carriers are enjoying the strongest summer travel season in three years as more people resume regular activities including vacations, and the lifting of pandemic travel restrictions has sent bookings soaring. International traffic is on a rebound, while office reopenings are fueling corporate travel demand.
U.S. passenger traffic is up 18% this summer from a year ago and has been averaging about 89% of the pre-pandemic levels since the Memorial Day holiday weekend in May, according to Transportation Security Administration data, making for a profitable second-quarter for most of the major carriers despite inflationary pressure.
Rival American Airlines AAL.O on Tuesday forecast its first quarterly profit since the onset of the pandemic.
The NYSE Arca Airline index .XAL has fallen 22% since early May on concerns that higher air fares, a worsening economic outlook, persistently high inflation and rising interest rates could dent travel spending in the second half of the year.
Delta, however, said fall travel bookings were strong.
"The demand is going to continue to hold fairly well through the fall and into the winter," Bastian said.
The company expects third-quarter revenue to be up as much as 5% from 2019, even as its capacity is projected to be down 15%-17%. Non fuel operating expense for the quarter is estimated to be 22% above the 2019 level.
Delta said restoring operational reliability is its top priority. The carrier's performance in recent weeks has been marred by flight delays and cancellations caused by staffing gaps, weather and air traffic control constraints.
The company said its performance in July, however, is off to a good start. To ease a staffing crunch, the airline has deployed hundreds of employees from its corporate offices at airports in Atlanta and New York to assist with check-in and baggage drop-off.
(Reporting by Rajesh Kumar Singh Editing by Bill Berkrot)
((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.
|
Rival American Airlines AAL.O on Tuesday forecast its first quarterly profit since the onset of the pandemic. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines Inc DAL.N on Wednesday forecast a "meaningful" profit for the full-year as robust travel demand helped it post its strongest quarterly earnings since the start of the pandemic. U.S. passenger traffic is up 18% this summer from a year ago and has been averaging about 89% of the pre-pandemic levels since the Memorial Day holiday weekend in May, according to Transportation Security Administration data, making for a profitable second-quarter for most of the major carriers despite inflationary pressure.
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Rival American Airlines AAL.O on Tuesday forecast its first quarterly profit since the onset of the pandemic. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines Inc DAL.N on Wednesday forecast a "meaningful" profit for the full-year as robust travel demand helped it post its strongest quarterly earnings since the start of the pandemic. International traffic is on a rebound, while office reopenings are fueling corporate travel demand.
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Rival American Airlines AAL.O on Tuesday forecast its first quarterly profit since the onset of the pandemic. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines Inc DAL.N on Wednesday forecast a "meaningful" profit for the full-year as robust travel demand helped it post its strongest quarterly earnings since the start of the pandemic. The Atlanta-based carrier expects a solid profit in the third quarter as well, with operating margin estimated to be in the range of 11%-13%.
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Rival American Airlines AAL.O on Tuesday forecast its first quarterly profit since the onset of the pandemic. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines Inc DAL.N on Wednesday forecast a "meaningful" profit for the full-year as robust travel demand helped it post its strongest quarterly earnings since the start of the pandemic. Delta, however, said fall travel bookings were strong.
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3406.0
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2022-07-13 00:00:00 UTC
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American Airlines (AAL) Surges 10%: Is This an Indication of Further Gains?
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-surges-10%3A-is-this-an-indication-of-further-gains
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nan
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American Airlines (AAL) shares rallied 10% in the last trading session to close at $14.77. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.8% gain over the past four weeks.
The uptick was owing to the management's commentary that it expects to report pre-tax profit in second-quarter 2022 (detailed results will be out on Jul 21) for the first time since the inception of the pandemic. Buoyant air-travel demand led to the bullish forecast. AAL expects to earn 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 total revenue to be up approximately 12% versus the second quarter of 2019. Total revenue per available seat miles (TRASM) is expected to be up 22.5% compared with second-quarter 2019 actuals (earlier guidance was for 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% versus second-quarter 2019 (earlier guidance was for 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 is likely to be $997 million.
This world's largest airline is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of +145.6%. Revenues are expected to be $13.34 billion, up 78.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For American Airlines, the consensus EPS estimate for the quarter has been revised 48.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AAL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
American Airlines is part of the Zacks Transportation - Airline industry. Copa Holdings (CPA), another stock in the same industry, closed the last trading session 4.5% higher at $63.31. CPA has returned 3.5% in the past month.
For Copa Holdings, the consensus EPS estimate for the upcoming report has changed -15.9% over the past month to $0.29. This represents a change of +176.3% from what the company reported a year ago. Copa Holdings currently has a Zacks Rank of #4 (Sell).
Zacks Names "Single Best Pick to Double"
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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.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
Copa Holdings, S.A. (CPA): 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) shares rallied 10% in the last trading session to close at $14.77. AAL expects to earn pre-tax income of $585 million during the quarter. AAL expects its second quarter total revenue to be up approximately 12% versus the second quarter of 2019.
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AAL now expects its second quarter cost per available seat miles in the June quarter to be up approximately 12% versus second-quarter 2019 (earlier guidance was for an increase in the 10-11% range). American Airlines (AAL) shares rallied 10% in the last trading session to close at $14.77. AAL expects to earn pre-tax income of $585 million during the quarter.
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AAL now expects its second quarter cost per available seat miles in the June quarter to be up approximately 12% versus second-quarter 2019 (earlier guidance was for an increase in the 10-11% range). American Airlines (AAL) shares rallied 10% in the last trading session to close at $14.77. AAL expects to earn pre-tax income of $585 million during the quarter.
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AAL expects to earn pre-tax income of $585 million during the quarter. American Airlines (AAL) shares rallied 10% in the last trading session to close at $14.77. AAL expects its second quarter total revenue to be up approximately 12% versus the second quarter of 2019.
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3407.0
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2022-07-13 00:00:00 UTC
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Japan's Nikkei gains as chip stocks, airlines boost
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AAL
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https://www.nasdaq.com/articles/japans-nikkei-gains-as-chip-stocks-airlines-boost
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nan
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TOKYO, July 13 (Reuters) - Japan's Nikkei share average rebounded on Wednesday, lifted by chip-related stocks and airlines, although losses in energy shares and worries about a slowing global economy capped gains.
The Nikkei share average .N225 closed up 0.54% at 26,478.77. It slid 1.77% in the previous session and marked its worst day in a month.
Of the benchmark's 225 component stocks, 147 gained, 69 fell and nine were flat.
The broader Topix .TOPX rose 0.29% to 1,888.85, clawing back some of Tuesday's 1.64% decline.
However, worries lingered about the global growth outlook amid heightened uncertainty over Europe's energy crisis and China's renewed struggle to control COVID-19 outbreaks with its draconian zero-COVID policies.
The market's immediate focus is on U.S. consumer price data due later Wednesday, which will show how effective Federal Reserve tightening has been so far and potentially how much more may be needed.
"There's a feeling that the Nikkei has gotten cheap, but with so much uncertainty about the global economic outlook, it is very difficult to buy stocks aggressively," said a market participant at a domestic securities firm.
Worries about demand sent crude oil sliding on Tuesday, making energy the Nikkei's worst performing sector, with a 0.71% decline. O/R
Petrochemical companies Inpex 1605.T JGC Holdings 1963.T were among the biggest decliners on the benchmark index, dropping 1.66% and 1.46%, respectively.
At the other end, startup investor SoftBank Group 9984.T jumped 2.4%, adding an index-leading 26 points to the benchmark, as sources said it was in talks Abu Dhabi's soverign wealth fund for the sale of Fortress Investment Group.
Uniqlo-owner Fast Retailing 9983.T added 24 points with its 1.01% advance, followed by chipmaking-equipment maker Tokyo Electron 8035.T, which added 20 points by rising 1.37%.
Strong gains for American Airlines AAL.O on a revised forecast for second-quarter revenue put wind under Japanese peers ANA Holdings 9202.T and Japan Airlines 9201.T, which rallied 1.08% and 1.43%, respectively.
(Reporting by Tokyo markets team; Editing by Krishna Chandra Eluri and Amy Caren Daniel)
((Kevin.Buckland@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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Strong gains for American Airlines AAL.O on a revised forecast for second-quarter revenue put wind under Japanese peers ANA Holdings 9202.T and Japan Airlines 9201.T, which rallied 1.08% and 1.43%, respectively. However, worries lingered about the global growth outlook amid heightened uncertainty over Europe's energy crisis and China's renewed struggle to control COVID-19 outbreaks with its draconian zero-COVID policies. The market's immediate focus is on U.S. consumer price data due later Wednesday, which will show how effective Federal Reserve tightening has been so far and potentially how much more may be needed.
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Strong gains for American Airlines AAL.O on a revised forecast for second-quarter revenue put wind under Japanese peers ANA Holdings 9202.T and Japan Airlines 9201.T, which rallied 1.08% and 1.43%, respectively. TOKYO, July 13 (Reuters) - Japan's Nikkei share average rebounded on Wednesday, lifted by chip-related stocks and airlines, although losses in energy shares and worries about a slowing global economy capped gains. The Nikkei share average .N225 closed up 0.54% at 26,478.77.
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Strong gains for American Airlines AAL.O on a revised forecast for second-quarter revenue put wind under Japanese peers ANA Holdings 9202.T and Japan Airlines 9201.T, which rallied 1.08% and 1.43%, respectively. TOKYO, July 13 (Reuters) - Japan's Nikkei share average rebounded on Wednesday, lifted by chip-related stocks and airlines, although losses in energy shares and worries about a slowing global economy capped gains. "There's a feeling that the Nikkei has gotten cheap, but with so much uncertainty about the global economic outlook, it is very difficult to buy stocks aggressively," said a market participant at a domestic securities firm.
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Strong gains for American Airlines AAL.O on a revised forecast for second-quarter revenue put wind under Japanese peers ANA Holdings 9202.T and Japan Airlines 9201.T, which rallied 1.08% and 1.43%, respectively. TOKYO, July 13 (Reuters) - Japan's Nikkei share average rebounded on Wednesday, lifted by chip-related stocks and airlines, although losses in energy shares and worries about a slowing global economy capped gains. It slid 1.77% in the previous session and marked its worst day in a month.
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3408.0
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2022-07-13 00:00:00 UTC
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Which Stocks To Buy Now? 4 Travel Stocks For Your Watchlist Today
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AAL
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https://www.nasdaq.com/articles/which-stocks-to-buy-now-4-travel-stocks-for-your-watchlist-today
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Are These The Best Travel Stocks To Invest In Today?
As investors look out for the top stocks to invest in today, travel stocks seem to be in vogue. For one thing, the euro is near parity with the U.S. dollar, which marks a two-decade low. This would be a plus point for Americans traveling to Europe this summer. With this exchange rate, travelers’ dollars will go further when making purchases abroad. As such, it would make sense then that investors would continue to watch the top travel stocks around.
When it comes to investing in travel stocks, aircraft firms like Boeing (NYSE: BA) would come to mind of many. Yesterday, Japanese airline ANA Holdings (OTCMKTS: ALNPY) finalized the order for 20 Boeing 737 MAX jets. As part of its efforts to boost its cargo business, the airline said it would convert two of the 20 777-9 passenger planes it has on order to the 777-8F freighter model. These 737 MAX planes are designed to replace older 737-800 jets on domestic routes. Furthermore, these models will be delivered beginning in the fiscal year that begins in April 2025.
At the same time, there is also no shortage of exciting developments on the airline mergers and acquisitions front as well. Namely, the ongoing push by Frontier (NASDAQ: ULCC) to acquire Spirit Airlines (NYSE: SAVE) would be in the news now. With more consumers flying, travel activity booking firms such as Airbnb (NASDAQ: ABNB) and TripAdvisor (NASDAQ: TRIP) would also come into focus. With all this in mind, here are four more travel stocks to look out for in the stock market now.
Top Travel Stocks To Buy [Or Sell] Today
Royal Caribbean Group Ltd (NYSE: RCL)
Delta Air Lines, Inc. (NYSE: DAL)
Southwest Airlines (NYSE: LUV)
American Airlines Group Inc (NASDAQ: AAL)
Royal Caribbean Group Ltd
Starting us off today, we have Royal Caribbean, a global cruise holding company that is also one of the largest cruise line operators in the world. It has a global fleet of over 60 ships traveling to more than 1,000 destinations around the world. It is also the owner and operator of three award-winning cruise brands. Namely, they are Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. Ever since its Wonder of the Seas began sailing in March 2022, the ship has claimed the title of largest cruise ship in the world as it seeks to up its game in its battle with Carnival (NYSE: CCL).
In May, the company also announced that it has launched an NFT collection in a partnership with acclaimed artist Rubem Robierb. He is a longstanding featured artist with the cruise line. In light of that, Celebrity Cruises has launched the Peacemakers Sunset NFT collection. “Innovation is a pillar of the Celebrity Cruises experience and a distinguishing characteristic of our ships, so it’s only fitting to bring this heritage into the new digital revolution of NFTs and the metaverse,” said Celebrity Cruises Chief Marketing Officer Michael Scheiner. “The scale and scope of what’s possible in this space, and the way we can connect our guests with new immersive and accessible experiences, is really endless. It’s exciting to take this first step with the talents and artistry of Rubem.” Given all of this, is RCL stock worth investing in right now?
Source: TD Ameritrade TOS
[Read More] Stock Market Today: Dow Jones, S&P 500 Tumble On Soaring Inflation; IronSource Surges On Merger With Unity Software
Delta Air Lines Inc.
Following that, we have Delta Air Lines, a legacy carrier in the U.S. In fact, it is one of the world’s oldest airlines in operation. The company claims that more than 4,000 Delta flights take off every day. Also, it connects people across more than 270 destinations on six continents. It also provides award-winning operational excellence, safety, and innovation. Furthermore, it leads the travel industry in building a foundation for sustainable aviation with its Flight to Net Zero policy.
This week, Delta Air Lines has selected Amazon Web Services (AWS), a company of Amazon (NASDAQ: AMZN) to accelerate its digital business transformation. In detail, it announced a multi-year agreement to have AWS serve as its preferred cloud provider. AWS will help Delta unlock technologies and streamline processes that will make the customer experience faster, smoother, and more secure. This would include everything from improving the booking process to the flight experience. The company will build upon AWS’s broad portfolio of cloud technologies and solutions to meet unique industry and regulatory requirements. All things considered, is DAL stock a buy today?
Source: TD Ameritrade TOS
Southwest Airlines
Southwest Airlines is a passenger airline company that offers regularly scheduled flights between domestic and nearby international markets. Moreover, the company provides point-to-point services. According to each policy set forth by Southwest, the company provides supplementary services like EarlyBird Check-In, premium boarding, and transportation for unaccompanied kids and pets. EarlyBird Check-In provides customers with automatic check-in and an assigned boarding position before general boarding positions become available. The company also has approximately 728 Boeing 737 aircraft in its fleet and caters to over 120 destinations in 42 states.
In May, the company announced the launch of Wanna Get Away Plus, a new fare product that adds more flexibility, options, and rewards to the carrier’s fare lineup. In addition to the benefits offered on all Southwest fares, including two free checked bags, no change fees, and free TV/movies/messaging, Wanna Get Away Plus offers transferable flight credit, a new benefit that enables Customers to transfer an eligible unused flight credit to another traveler for future use. The company is also enhancing the benefits to its Anytime and Business Select fares. They will also have the same transferable flight credit benefits as Wanna Get Away Plus. This could spur more consumers to turn to Southwest in the near term, given these perks. With that in mind, should you consider adding LUV stock to your portfolio?
Source: TD Ameritrade TOS
[Read More] 3 Top Electric Vehicle Stocks To Watch Right Now
American Airlines Group Inc.
Another top travel firm to consider in the stock market now would be American Airlines or AAL for short. In essence, AAL, like our previous entries, is another titan in the global airline industry. Through its expansive portfolio, the company offers almost 6,700 flights per day at max capacity. Namely, this would be via its core American Airlines and American Eagle brands. With the return of travel, investors may want to consider AAL stock now as well.
Notably, AAL appears to be confident in its current performance as well. As of earlier this week, the company provided a rosy update on its expectations for its first upcoming quarterly earnings update. According to the press release, AAL is now forecasting its first pandemic-era pre-tax quarterly profit. Overall, the company cites the explosive return in travel demand as a key contributor to this. It is likely doing so by helping to offset AAL’s growing operational costs amidst the global oil shortages. All in all, for investors looking to bet on one of the biggest names in the air travel business, would AAL stock be a top pick for you?
Source: TD Ameritrade TOS
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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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Top Travel Stocks To Buy [Or Sell] Today Royal Caribbean Group Ltd (NYSE: RCL) Delta Air Lines, Inc. (NYSE: DAL) Southwest Airlines (NYSE: LUV) American Airlines Group Inc (NASDAQ: AAL) Royal Caribbean Group Ltd Starting us off today, we have Royal Caribbean, a global cruise holding company that is also one of the largest cruise line operators in the world. Source: TD Ameritrade TOS [Read More] 3 Top Electric Vehicle Stocks To Watch Right Now American Airlines Group Inc. Another top travel firm to consider in the stock market now would be American Airlines or AAL for short. In essence, AAL, like our previous entries, is another titan in the global airline industry.
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Top Travel Stocks To Buy [Or Sell] Today Royal Caribbean Group Ltd (NYSE: RCL) Delta Air Lines, Inc. (NYSE: DAL) Southwest Airlines (NYSE: LUV) American Airlines Group Inc (NASDAQ: AAL) Royal Caribbean Group Ltd Starting us off today, we have Royal Caribbean, a global cruise holding company that is also one of the largest cruise line operators in the world. Source: TD Ameritrade TOS [Read More] 3 Top Electric Vehicle Stocks To Watch Right Now American Airlines Group Inc. Another top travel firm to consider in the stock market now would be American Airlines or AAL for short. In essence, AAL, like our previous entries, is another titan in the global airline industry.
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Top Travel Stocks To Buy [Or Sell] Today Royal Caribbean Group Ltd (NYSE: RCL) Delta Air Lines, Inc. (NYSE: DAL) Southwest Airlines (NYSE: LUV) American Airlines Group Inc (NASDAQ: AAL) Royal Caribbean Group Ltd Starting us off today, we have Royal Caribbean, a global cruise holding company that is also one of the largest cruise line operators in the world. Source: TD Ameritrade TOS [Read More] 3 Top Electric Vehicle Stocks To Watch Right Now American Airlines Group Inc. Another top travel firm to consider in the stock market now would be American Airlines or AAL for short. In essence, AAL, like our previous entries, is another titan in the global airline industry.
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Top Travel Stocks To Buy [Or Sell] Today Royal Caribbean Group Ltd (NYSE: RCL) Delta Air Lines, Inc. (NYSE: DAL) Southwest Airlines (NYSE: LUV) American Airlines Group Inc (NASDAQ: AAL) Royal Caribbean Group Ltd Starting us off today, we have Royal Caribbean, a global cruise holding company that is also one of the largest cruise line operators in the world. Source: TD Ameritrade TOS [Read More] 3 Top Electric Vehicle Stocks To Watch Right Now American Airlines Group Inc. Another top travel firm to consider in the stock market now would be American Airlines or AAL for short. In essence, AAL, like our previous entries, is another titan in the global airline industry.
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3409.0
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2022-07-13 00:00:00 UTC
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Why Delta Air Lines Is Leading the Entire Airline Sector Down Today
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AAL
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https://www.nasdaq.com/articles/why-delta-air-lines-is-leading-the-entire-airline-sector-down-today
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What happened
Delta Air Lines (NYSE: DAL) is the first airline out of the gate with earnings, and the company's disappointing results and tepid guidance are rippling through the entire sector. Shares of Delta fell as much as 8% on Wednesday morning, while shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and JetBlue Airways (NASDAQ: JBLU) all fell as much as 5%.
So what
Airline investors are coming into earnings season not sure what to expect. Strong summer vacation demand is expected to prop up revenue, but those gains are likely to be at least somewhat offset by higher fuel and labor costs. Throw in a shortage of pilots and concerns about summer congestion, and it is hard to predict just how much airlines will be able to benefit from that strong demand.
On Tuesday, American gave the industry a boost when it said that it expects its results from the now-completed quarter to come in within expectations. But on Wednesday, Delta became the first airline to actually publish results, and investors are not pleased with what they are seeing.
Delta earned $1.44 per share in the quarter on revenue of $13.82 billion, missing analyst earnings expectations for a profit of $1.64 per share despite posting better-than-expected revenue. The issue, as expected, was costs, and Delta is not expecting those costs to ease anytime soon.
The airline said it intends to slow capacity growth in the second half of the year in order to improve the reliability of its operations, with capacity expected to be down 15% to 17% in the September quarter compared with the same three months of 2019, prior to the pandemic. Fewer flights by definition means operating costs on a per-flight basis will be higher, and indeed Delta said that nonfuel unit costs will be up more than 20% from 2019.
JetBlue shares are also likely trading down after a slight setback in its campaign to acquire Spirit Airlines (NYSE: SAVE). On Wednesday, Spirit said it remains committed to its deal with Frontier Group Holdings (NASDAQ: ULCC), pushing back its planned shareholder vote on the Frontier deal to July 27 in order to give the two airlines more time to solicit shareholder support for the deal.
Spirit appears to be facing a lot of pressure from shareholders to consider JetBlue's offer, which had led to some speculation that the company might back away from Frontier instead of reasserting its commitment to getting that deal done.
Now what
If there is any silver lining in the results, Delta did offer a decent rebuke of the idea that inflation fears and the potential for a recession would cause travel demand to fall off a cliff in the months to come. On its postearnings callwith investors, the company said that post-Labor Day leisure travel demand is experiencing its typical seasonal decline, but nothing more dramatic. And September international travel bookings are coming in near record levels.
Oil prices are coming down off their highs, and Delta and other airlines are scrambling to hire and train additional pilots and staff in hopes of rebuilding their schedule and adding capacity heading into the holiday season and 2023. The bull case from here is that if the issues are short term and the demand is sustained long term, the recovery is merely delayed, not canceled.
Delta's management has a reputation for being conservative when it comes to guidance and planning, a trait that has served long-term investors well but which can lead to some volatility during earnings season. The outlook is disappointing, but Delta's effort to trim its schedule and try to salvage its on-time statistics fits into the company's strategy to try to offer a premium product that can elicit customer loyalty over time.
For the broader airline sector, Delta's results and outlook are a reminder that there is no quick fix to what currently ails the industry, and a full recovery is likely still some time off. Investors tend not to like turbulence, and the sector sold off on Wednesday morning as a result.
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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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Shares of Delta fell as much as 8% on Wednesday morning, while shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and JetBlue Airways (NASDAQ: JBLU) all fell as much as 5%. Now what If there is any silver lining in the results, Delta did offer a decent rebuke of the idea that inflation fears and the potential for a recession would cause travel demand to fall off a cliff in the months to come. Oil prices are coming down off their highs, and Delta and other airlines are scrambling to hire and train additional pilots and staff in hopes of rebuilding their schedule and adding capacity heading into the holiday season and 2023.
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Shares of Delta fell as much as 8% on Wednesday morning, while shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and JetBlue Airways (NASDAQ: JBLU) all fell as much as 5%. On Wednesday, Spirit said it remains committed to its deal with Frontier Group Holdings (NASDAQ: ULCC), pushing back its planned shareholder vote on the Frontier deal to July 27 in order to give the two airlines more time to solicit shareholder support for the deal. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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Shares of Delta fell as much as 8% on Wednesday morning, while shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and JetBlue Airways (NASDAQ: JBLU) all fell as much as 5%. What happened Delta Air Lines (NYSE: DAL) is the first airline out of the gate with earnings, and the company's disappointing results and tepid guidance are rippling through the entire sector. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines.
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Shares of Delta fell as much as 8% on Wednesday morning, while shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and JetBlue Airways (NASDAQ: JBLU) all fell as much as 5%. So what Airline investors are coming into earnings season not sure what to expect. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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3410.0
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2022-07-12 00:00:00 UTC
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Consumer Sector Update for 07/12/2022: AAL,UAL,DAL,LUV,GOEV,PEP,PSMT,WMT
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-for-07-12-2022%3A-aalualdalluvgoevpeppsmtwmt
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nan
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Consumer stocks weakened considerably during Tuesday trading, with the SPDR Consumer Staples Select Sector ETF (XLP) falling 0.6% and the SPDR Consumer Discretionary Select Sector ETF (XLY) retreating 1.1%.
Data Tuesday showed US same-store sales rose 13% over year-ago levels during the week ended July 9, roughly in line with a 13.1% increase during the prior seven days in the Redbook retail survey.
In company news, American Airlines Group (AAL) flew to a more than 10% gain after Tuesday saying it expects to report a 12% increase in its Q2 revenue compared with pre-pandemic levels in 2019, rising to around $13.4 million and topping the Capital IQ consensus looking for $13.27 billion in revenue for the three months ended June 30. Other air carriers also advanced, with United (UAL) and Delta (DAL) climbing 8.2% and 6.3%, respectively, while Southwest Airlines (LUV) was adding 4.8%.
Canoo (GOEV) was speeding more than 54% higher, earlier topping out with a 111% advance, after Tuesday saying retail giant Walmart (WMT) will buy 4,500 of its all-electric delivery vehicles, with an option to purchase up to 5,500 more vans. The companies expect to start vehicle configurations and mapping out deliveries, beginning in the Dallas-Fort Worth metro area, in coming weeks ahead of the first vehicles hitting the road next year.
PepsiCo (PEP) was slipping 0.5% in late trade, giving back an earlier gain, after the beverages and restaurant company Tuesday reported improved Q2 results exceeding analyst estimates and also raising its forecast for organic revenue growth this year. Excluding one-time items, it earned $1.86 per share during the 12 weeks ended June 11, up from $1.72 per share during the same quarter last year and beating the Capital IQ consensus by $0.12 per share, while revenue increased 5.3% year-over-year to $20.23 billion, also surpassing the $19.51 billion Street view.
PriceSmart (PSMT) dropped 9.5% after the warehouse club retailer overnight reported a fiscal Q3 net income of $0.62 per share, down from $0.73 per share during the same quarter last year and trailing the single-analyst estimate looking for an $0.82 per share profit for the three months ended May 31.
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 company news, American Airlines Group (AAL) flew to a more than 10% gain after Tuesday saying it expects to report a 12% increase in its Q2 revenue compared with pre-pandemic levels in 2019, rising to around $13.4 million and topping the Capital IQ consensus looking for $13.27 billion in revenue for the three months ended June 30. Data Tuesday showed US same-store sales rose 13% over year-ago levels during the week ended July 9, roughly in line with a 13.1% increase during the prior seven days in the Redbook retail survey. Canoo (GOEV) was speeding more than 54% higher, earlier topping out with a 111% advance, after Tuesday saying retail giant Walmart (WMT) will buy 4,500 of its all-electric delivery vehicles, with an option to purchase up to 5,500 more vans.
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In company news, American Airlines Group (AAL) flew to a more than 10% gain after Tuesday saying it expects to report a 12% increase in its Q2 revenue compared with pre-pandemic levels in 2019, rising to around $13.4 million and topping the Capital IQ consensus looking for $13.27 billion in revenue for the three months ended June 30. Consumer stocks weakened considerably during Tuesday trading, with the SPDR Consumer Staples Select Sector ETF (XLP) falling 0.6% and the SPDR Consumer Discretionary Select Sector ETF (XLY) retreating 1.1%. Excluding one-time items, it earned $1.86 per share during the 12 weeks ended June 11, up from $1.72 per share during the same quarter last year and beating the Capital IQ consensus by $0.12 per share, while revenue increased 5.3% year-over-year to $20.23 billion, also surpassing the $19.51 billion Street view.
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In company news, American Airlines Group (AAL) flew to a more than 10% gain after Tuesday saying it expects to report a 12% increase in its Q2 revenue compared with pre-pandemic levels in 2019, rising to around $13.4 million and topping the Capital IQ consensus looking for $13.27 billion in revenue for the three months ended June 30. Excluding one-time items, it earned $1.86 per share during the 12 weeks ended June 11, up from $1.72 per share during the same quarter last year and beating the Capital IQ consensus by $0.12 per share, while revenue increased 5.3% year-over-year to $20.23 billion, also surpassing the $19.51 billion Street view. PriceSmart (PSMT) dropped 9.5% after the warehouse club retailer overnight reported a fiscal Q3 net income of $0.62 per share, down from $0.73 per share during the same quarter last year and trailing the single-analyst estimate looking for an $0.82 per share profit for the three months ended May 31.
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In company news, American Airlines Group (AAL) flew to a more than 10% gain after Tuesday saying it expects to report a 12% increase in its Q2 revenue compared with pre-pandemic levels in 2019, rising to around $13.4 million and topping the Capital IQ consensus looking for $13.27 billion in revenue for the three months ended June 30. Consumer stocks weakened considerably during Tuesday trading, with the SPDR Consumer Staples Select Sector ETF (XLP) falling 0.6% and the SPDR Consumer Discretionary Select Sector ETF (XLY) retreating 1.1%. Excluding one-time items, it earned $1.86 per share during the 12 weeks ended June 11, up from $1.72 per share during the same quarter last year and beating the Capital IQ consensus by $0.12 per share, while revenue increased 5.3% year-over-year to $20.23 billion, also surpassing the $19.51 billion Street view.
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3411.0
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2022-07-12 00:00:00 UTC
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METALS-Copper hits 20-month low on dollar strength, demand worries
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AAL
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https://www.nasdaq.com/articles/metals-copper-hits-20-month-low-on-dollar-strength-demand-worries
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July 13 (Reuters) - London copper prices fell to a near 20-month low on Wednesday, as an elevated U.S. dollar, renewed COVID-19 restrictions in top consumer China and fears of rapid interest rate hikes stifled demand.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange CMCU3 was flat at $7,352.50 a tonne by 0214 GMT, after hitting its lowest since Nov. 23, 2020 at $7,202.50 in early Asian trade.
* The most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 fell 2.7% to 56,400 yuan ($8,386.24) a tonne.
* The dollar =USD held close to its highest in nearly two decades against its rivals, making greenback-priced metals more expensive for other currency holders. USD/
* Multiple Chinese cities are adopting fresh COVID-19 curbs, from business halts to lockdowns, to rein in new infections, while Shanghai residents queued up in sweltering heat for compulsory mass testing for COVID-19 on Tuesday.
* The U.S. economy is slowing as consumers are buffeted by inflation and pandemic-driven demand for goods returns to more normal levels, Richmond Federal Reserve president Thomas Barkin said.
* The U.S. central bank is widely expected to deliver another 75-basis-point rate hike at its policy meeting later this month to combat soaring inflation. FEDWATCH
* The Quellaveco copper mine in Peru, owned by global miner Anglo American AAL.L and Japan's Mitsubishi Corp 8058.T, has started production of copper concentrate, the Japanese trading house said on Tuesday.
MARKETS NEWS
* World stocks traded mixed while oil prices and bond yields dipped on Tuesday, as traders fretted over prospects of further central bank tightening and worries about the health of economies worldwide. MKTS/GLOB
DATA/EVENTS (GMT)
0300 China Exports, Imports YY June
0300 China Trade Balance June
0600 UK GDP Est 3M/3M May
0600 UK GDP Estimate MM, YY May
0600 UK Manufacturing Output MM May
0600 Germany HICP Final YY June
0645 France CPI (EU Norm) Final MM, YY June
1230 US CPI MM, SA June
PRICES Three month LME copper CMCU3
Most active ShFE copper SCFcv1
Three month LME aluminium CMAL3
Most active ShFE aluminium SAFcv1
Three month LME zinc CMZN3
Most active ShFE zinc SZNcv1
Three month LME lead CMPB3
Most active ShFE lead SPBcv1
Three month LME nickel CMNI3
Most active ShFE nickel SNIcv1
Three month LME tin CMSN3 Most active ShFE tin SSNcv1
($1 = 6.7253 Chinese yuan renminbi)
(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)
((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.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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FEDWATCH * The Quellaveco copper mine in Peru, owned by global miner Anglo American AAL.L and Japan's Mitsubishi Corp 8058.T, has started production of copper concentrate, the Japanese trading house said on Tuesday. July 13 (Reuters) - London copper prices fell to a near 20-month low on Wednesday, as an elevated U.S. dollar, renewed COVID-19 restrictions in top consumer China and fears of rapid interest rate hikes stifled demand. USD/ * Multiple Chinese cities are adopting fresh COVID-19 curbs, from business halts to lockdowns, to rein in new infections, while Shanghai residents queued up in sweltering heat for compulsory mass testing for COVID-19 on Tuesday.
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FEDWATCH * The Quellaveco copper mine in Peru, owned by global miner Anglo American AAL.L and Japan's Mitsubishi Corp 8058.T, has started production of copper concentrate, the Japanese trading house said on Tuesday. July 13 (Reuters) - London copper prices fell to a near 20-month low on Wednesday, as an elevated U.S. dollar, renewed COVID-19 restrictions in top consumer China and fears of rapid interest rate hikes stifled demand. * The most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 fell 2.7% to 56,400 yuan ($8,386.24) a tonne.
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FEDWATCH * The Quellaveco copper mine in Peru, owned by global miner Anglo American AAL.L and Japan's Mitsubishi Corp 8058.T, has started production of copper concentrate, the Japanese trading house said on Tuesday. July 13 (Reuters) - London copper prices fell to a near 20-month low on Wednesday, as an elevated U.S. dollar, renewed COVID-19 restrictions in top consumer China and fears of rapid interest rate hikes stifled demand. 0300 China Exports, Imports YY June 0300 China Trade Balance June 0600 UK GDP Est 3M/3M May 0600 UK GDP Estimate MM, YY May 0600 UK Manufacturing Output MM May 0600 Germany HICP Final YY June 0645 France CPI (EU Norm) Final MM, YY June 1230 US CPI MM, SA June PRICES Three month LME copper CMCU3 Most active ShFE copper SCFcv1 Three month LME aluminium CMAL3 Most active ShFE aluminium SAFcv1 Three month LME zinc CMZN3 Most active ShFE zinc SZNcv1 Three month LME lead CMPB3 Most active ShFE lead SPBcv1 Three month LME nickel CMNI3 Most active ShFE nickel SNIcv1 Three month LME tin CMSN3 Most active ShFE tin SSNcv1 ($1 = 6.7253 Chinese yuan renminbi) (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich) ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.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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FEDWATCH * The Quellaveco copper mine in Peru, owned by global miner Anglo American AAL.L and Japan's Mitsubishi Corp 8058.T, has started production of copper concentrate, the Japanese trading house said on Tuesday. July 13 (Reuters) - London copper prices fell to a near 20-month low on Wednesday, as an elevated U.S. dollar, renewed COVID-19 restrictions in top consumer China and fears of rapid interest rate hikes stifled demand. * Three-month copper on the London Metal Exchange CMCU3 was flat at $7,352.50 a tonne by 0214 GMT, after hitting its lowest since Nov. 23, 2020 at $7,202.50 in early Asian trade.
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3412.0
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2022-07-12 00:00:00 UTC
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Should You Buy Boeing Stock At $140?
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AAL
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https://www.nasdaq.com/articles/should-you-buy-boeing-stock-at-%24140
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nan
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nan
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After a 33% fall year-to-date, at the current levels, we believe Boeing stock (NYSE: BA) looks undervalued. BA stock fell from around $208 in early January to under $140 now. The YTD 33% fall for BA is far worse than the -19% return for the broader S&P500 index.
Looking at the longer term, BA stock is down 58% from levels seen in late 2019. This marks an underperformance compared to some of its peers and the broader markets, with Lockheed Martin stock rising 7%, Raytheon stock up 1%, and the S&P500 index rising 20% over this period.
This 58% fall for BA stock since late 2019 was driven by: 1. Boeing revenue, which fell 20% to $61 billion over the last twelve months, compared to $77 billion in 2019, 2. the company’s P/S ratio, which plunged 45% to 1.3x trailing revenues, from 2.5x in 2019, and 3. a 5% rise in its total shares outstanding to 592 million currently. This means the company’s revenue per share declined 24% to $103 now, compared to $135 in 2018.
The revenue decline can primarily be attributed to the impact of the 737 Max grounding in 2019 and the Covid-19 pandemic on the company’s businesses, given that commercial airlines was one of the worst-hit sectors during the coronavirus crisis. Commercial Airplanes was the largest segment for Boeing, accounting for 42% of total sales in 2019, but the contribution dropped to 31% in 2021. Defense, Space & Security Systems is now the largest segment for the company, accounting for 42% of the total sales. Commercial Airplanes sales plunged 39% to $19 billion in 2021, compared to $32 billion in 2019. Even in Q1 2022, the segment sales were down nearly 3%. Boeing is struggling to ramp up its production, impacting its deliveries. Supply chain disruption and labor issues for some of its suppliers further added to its woes.
Earlier this month, China placed a 300 airplane order worth $37 billion with Airbus, raising investor concerns over Boeing’s ability to penetrate further in an important market. This led to a 6% fall in its stock on July 5. Boeing also faces headwinds from the current weakness in broader markets. The S&P500 has now entered near bear market territory with rising concerns of slowing economic growth given the high inflation, Fed action, and supply chain disruptions.
Despite the headwinds stated above, there are some positives to look forward to. With the worst of the pandemic likely behind us, airlines are benefiting from a rebound in travel demand. This should result in an uptick in the company’s Commercial Airplanes business over the coming years. Boeing has a significant backlog of over 4,000 airplanes, and it will likely be able to resolve issues around production, driving its revenue growth over the coming years.
Also, we find BA stock to be undervalued currently and estimate Boeing’s valuation to be $203 per share, reflecting a significant 45% upside from its current market price of $140, implying that investors are likely to be better off buying BA stock in the recent dip for solid gains in the long-term. At its current levels, BA stock is trading at just 1.1x forward revenues, compared to the last three-year average of 2.3x, making the stock attractive from a valuation point of view.
While BA stock looks undervalued, 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 33% 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 Jul 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
BA Return 2% -31% -11%
S&P 500 Return 3% -18% 74%
Trefis Multi-Strategy Portfolio 6% -18% 221%
[1] Month-to-date and year-to-date as of 7/11/2022
[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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The revenue decline can primarily be attributed to the impact of the 737 Max grounding in 2019 and the Covid-19 pandemic on the company’s businesses, given that commercial airlines was one of the worst-hit sectors during the coronavirus crisis. Earlier this month, China placed a 300 airplane order worth $37 billion with Airbus, raising investor concerns over Boeing’s ability to penetrate further in an important market. The S&P500 has now entered near bear market territory with rising concerns of slowing economic growth given the high inflation, Fed action, and supply chain disruptions.
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Also, we find BA stock to be undervalued currently and estimate Boeing’s valuation to be $203 per share, reflecting a significant 45% upside from its current market price of $140, implying that investors are likely to be better off buying BA stock in the recent dip for solid gains in the long-term. At its current levels, BA stock is trading at just 1.1x forward revenues, compared to the last three-year average of 2.3x, making the stock attractive from a valuation point of view. Total [2] BA Return 2% -31% -11% S&P 500 Return 3% -18% 74% Trefis Multi-Strategy Portfolio 6% -18% 221% [1] Month-to-date and year-to-date as of 7/11/2022 [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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Also, we find BA stock to be undervalued currently and estimate Boeing’s valuation to be $203 per share, reflecting a significant 45% upside from its current market price of $140, implying that investors are likely to be better off buying BA stock in the recent dip for solid gains in the long-term. At its current levels, BA stock is trading at just 1.1x forward revenues, compared to the last three-year average of 2.3x, making the stock attractive from a valuation point of view. Total [2] BA Return 2% -31% -11% S&P 500 Return 3% -18% 74% Trefis Multi-Strategy Portfolio 6% -18% 221% [1] Month-to-date and year-to-date as of 7/11/2022 [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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After a 33% fall year-to-date, at the current levels, we believe Boeing stock (NYSE: BA) looks undervalued. Commercial Airplanes was the largest segment for Boeing, accounting for 42% of total sales in 2019, but the contribution dropped to 31% in 2021. At its current levels, BA stock is trading at just 1.1x forward revenues, compared to the last three-year average of 2.3x, making the stock attractive from a valuation point of view.
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3413.0
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2022-07-12 00:00:00 UTC
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Stock Market Today: Stocks End Lower Ahead of Major Inflation Update
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-stocks-end-lower-ahead-of-major-inflation-update
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nan
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nan
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Broader markets bounced around Tuesday as investors waited for guidance from a pair of impending market catalysts: the latest inflation data and the start of second-quarter earnings season.
As for tomorrow morning's release of the June consumer price index (CPI), "it does seem that the market is pretty well prepared for a hot number at least from a headline perspective," says Michael Reinking, senior market strategist for the New York Stock Exchange. "Street estimates are calling for headline CPI to be up more than 1% on a monthly basis, with some calls that the year-over-year increase could be as high as 9%."
SEE MORE Can AI Beat the Market? 10 Stocks to Watch
Reinking adds that a big driver of inflation will likely be oil prices, which peaked in the middle of the month and have moved sharply lower since. Indeed, U.S. crude futures plummeted 7.9% today to settle at $95.84 per barrel as China's latest round of COVID-related restrictions sparked concerns over slowing oil demand, and are now down more than 21% from their June peak above the $122 per-barrel mark.
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Not surprisingly, energy (-2.0%) was the worst performing sector today, with APA (APA, -5.2%) and Occidental Petroleum (OXY, -3.6%) among the biggest decliners.
The weakness in energy stocks weighed on the broader S&P 500 Index (-0.9% at 3,818), while the Nasdaq Composite also finished lower (-1.0% at 11,264). The Dow Jones Industrial Average, meanwhile, spent most of the day higher as blue chip Boeing (BA) jumped 7.4% on solid Q2 delivery data, but ended the day down 0.6% at 30,981.
YCharts
Other news in thestock market today
The small-cap Russell 2000 gave back 0.2% to end at 1,728.
Gold futures shed 0.4% to settle at $1,724.80 an ounce.
The rout in Bitcoin continued, with the cryptocurrency falling 5.3% to $19,397.89. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
Gap (GPS) fell 5.0% today after the retailer said CEO Sonjia Syngal is stepping down, effective immediately. The company also expects its adjusted operating margin percentage to be zero to slightly negative in the second quarter due to higher promotional activity. "While the macro is far from good today, the majority of these issues appear to be self-inflected and centered on Old Navy," says Wells Fargo analyst Ike Boruchow, who downgraded GPS stock to Equalweight from Overweight (the equivalents of Hold and Buy, respectively. "As such, as we remain cautious on our space. We simply cannot continue to recommend a name that is juggling company specific challenges on top of growing macro pressure."
American Airlines Group (AAL) soared 10% after the air carrier said it is guiding for a pretax profit of $585 million in its second quarter. The news created a halo effect for other travel stocks, with Delta Air Lines (DAL, +6.2%) and United Airlines Holdings (UAL, +8.1%) among those gaining ground.
Don't Give Up on Consumer Discretionary Stocks
Higher inflation will likely continue to weigh on how consumers are feeling about the economy – as well as their willingness to open their wallets. While the latest credit and debit card spending data from BofA Data Analytics shows that total retail spending, excluding auto, was up 25% in June over the same period in 2019, it also revealed that most of this rise was due to higher prices. In fact, all categories they track outside of jewelry were down on a month-to-month basis.
SEE MORE The 10 Best High-Growth Stocks to Buy
This, of course, is creating headwinds for many consumer-facing companies, which are only being compounded by dwindling COVID-related stimulus, rising input costs and worker shortages, says Wells Fargo Advisors analyst Brian Postol.
But not all hope is lost, and Postol believes "blue skies are faintly appearing in the distance, and brighter days will return." The analyst sees demand building across many pockets of the consumer discretionary sector, including automotive retail and e-commerce.
And with the sector down more than 30% so far in 2022, investors have plenty of opportunity to find some solid consumer discretionary plays at a bargain. Read on as we explore the best consumer discretionary stocks to buy for the rest of 2022.
SEE MORE The DeFi Dictionary: Your Guide to Decentralized Finance
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 (AAL) soared 10% after the air carrier said it is guiding for a pretax profit of $585 million in its second quarter. Indeed, U.S. crude futures plummeted 7.9% today to settle at $95.84 per barrel as China's latest round of COVID-related restrictions sparked concerns over slowing oil demand, and are now down more than 21% from their June peak above the $122 per-barrel mark. "While the macro is far from good today, the majority of these issues appear to be self-inflected and centered on Old Navy," says Wells Fargo analyst Ike Boruchow, who downgraded GPS stock to Equalweight from Overweight (the equivalents of Hold and Buy, respectively.
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American Airlines Group (AAL) soared 10% after the air carrier said it is guiding for a pretax profit of $585 million in its second quarter. As for tomorrow morning's release of the June consumer price index (CPI), "it does seem that the market is pretty well prepared for a hot number at least from a headline perspective," says Michael Reinking, senior market strategist for the New York Stock Exchange. Not surprisingly, energy (-2.0%) was the worst performing sector today, with APA (APA, -5.2%) and Occidental Petroleum (OXY, -3.6%) among the biggest decliners.
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American Airlines Group (AAL) soared 10% after the air carrier said it is guiding for a pretax profit of $585 million in its second quarter. As for tomorrow morning's release of the June consumer price index (CPI), "it does seem that the market is pretty well prepared for a hot number at least from a headline perspective," says Michael Reinking, senior market strategist for the New York Stock Exchange. Don't Give Up on Consumer Discretionary Stocks Higher inflation will likely continue to weigh on how consumers are feeling about the economy – as well as their willingness to open their wallets.
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American Airlines Group (AAL) soared 10% after the air carrier said it is guiding for a pretax profit of $585 million in its second quarter. "Street estimates are calling for headline CPI to be up more than 1% on a monthly basis, with some calls that the year-over-year increase could be as high as 9%." SEE MORE Can AI Beat the Market?
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3414.0
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2022-07-12 00:00:00 UTC
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Boeing deliveries reach highest monthly level since March 2019
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AAL
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https://www.nasdaq.com/articles/boeing-deliveries-reach-highest-monthly-level-since-march-2019-0
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nan
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nan
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Adds shares, confirmation of production rate
July 12 (Reuters) - Boeing Co BA.N delivered 51 airplanes in June to bring its first-half tally to 216 jets, up 38% from the same period last year, pushing its shares sharply higher on Tuesday.
June's deliveries exceeded the 50 threshold for the first time since March 2019 and included 43 Boeing 737 MAX, which is recovering from a nearly two-year safety crisis, according to new company data.
Boeing's shares rose more than 8% as it also confirmed that monthly MAX production had touched a target of 31 airplanes, while cautioning it had yet to be "stabilised" at that level as aerospace faces worldwide supply chain snags.
Jefferies analyst Sheila Kahyaoglu estimated that the average second-quarter MAX production rate was 28 per month.
June deliveries included six wide-body commercial freighters but, for the 12th consecutive month, no 787 Dreamliners.
Deliveries of the long-haul jet have been halted for a year as Boeing and regulators address production problems.
In new business, Boeing won 50 airplane orders in June, including 49 MAX, of which 48 were sold to customers whose names were not immediately disclosed. The one public purchaser was American Airlines AAL.O
Boeing took cancellations for 35 planes in June, mainly related to airline restructurings, including 29 jets originally earmarked for Norwegian Air NAS.OL.
It also benefited in June from dozens of jets being taken out of limbo and placed back on a list of orders expected to be fulfilled as Boeing reversed some accounting adjustments.
In total during the first half, Boeing booked 286 gross orders and took 100 cancellations, leaving a net total of 186 orders after cancellations and conversions.
Europe's Airbus AIR.PA on Friday posted 259 net orders after cancellations in the first half, up sharply from a year earlier. Deliveries were flat at 297 planes. .
After retrieving a six-month total of 19 jets from an accounting category designed to filter out orders unlikely to be fulfilled, Boeing ended the first half with an adjusted total of 205 net orders as it took a more optimistic view on some deals.
Boeing's undelivered backlog after these so-called ASC-606 accounting adjustments stood at 4,239 units at end-June.
(Reporting by Tim Hepher; editing by Barbara Lewis and Bill Berkrot)
((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 one public purchaser was American Airlines AAL.O Boeing took cancellations for 35 planes in June, mainly related to airline restructurings, including 29 jets originally earmarked for Norwegian Air NAS.OL. June's deliveries exceeded the 50 threshold for the first time since March 2019 and included 43 Boeing 737 MAX, which is recovering from a nearly two-year safety crisis, according to new company data. Boeing's shares rose more than 8% as it also confirmed that monthly MAX production had touched a target of 31 airplanes, while cautioning it had yet to be "stabilised" at that level as aerospace faces worldwide supply chain snags.
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The one public purchaser was American Airlines AAL.O Boeing took cancellations for 35 planes in June, mainly related to airline restructurings, including 29 jets originally earmarked for Norwegian Air NAS.OL. Adds shares, confirmation of production rate July 12 (Reuters) - Boeing Co BA.N delivered 51 airplanes in June to bring its first-half tally to 216 jets, up 38% from the same period last year, pushing its shares sharply higher on Tuesday. In new business, Boeing won 50 airplane orders in June, including 49 MAX, of which 48 were sold to customers whose names were not immediately disclosed.
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The one public purchaser was American Airlines AAL.O Boeing took cancellations for 35 planes in June, mainly related to airline restructurings, including 29 jets originally earmarked for Norwegian Air NAS.OL. Adds shares, confirmation of production rate July 12 (Reuters) - Boeing Co BA.N delivered 51 airplanes in June to bring its first-half tally to 216 jets, up 38% from the same period last year, pushing its shares sharply higher on Tuesday. In total during the first half, Boeing booked 286 gross orders and took 100 cancellations, leaving a net total of 186 orders after cancellations and conversions.
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The one public purchaser was American Airlines AAL.O Boeing took cancellations for 35 planes in June, mainly related to airline restructurings, including 29 jets originally earmarked for Norwegian Air NAS.OL. Adds shares, confirmation of production rate July 12 (Reuters) - Boeing Co BA.N delivered 51 airplanes in June to bring its first-half tally to 216 jets, up 38% from the same period last year, pushing its shares sharply higher on Tuesday. It also benefited in June from dozens of jets being taken out of limbo and placed back on a list of orders expected to be fulfilled as Boeing reversed some accounting adjustments.
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3415.0
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2022-07-12 00:00:00 UTC
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Noteworthy Tuesday Option Activity: NOW, DAL, AAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-now-dal-aal
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in ServiceNow Inc (Symbol: NOW), where a total volume of 22,408 contracts has been traded thus far today, a contract volume which is representative of approximately 2.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 153.1% of NOW's average daily trading volume over the past month, of 1.5 million shares. Particularly high volume was seen for the $400 strike put option expiring July 15, 2022, with 3,786 contracts trading so far today, representing approximately 378,600 underlying shares of NOW. Below is a chart showing NOW's trailing twelve month trading history, with the $400 strike highlighted in orange:
Delta Air Lines Inc (Symbol: DAL) options are showing a volume of 158,368 contracts thus far today. That number of contracts represents approximately 15.8 million underlying shares, working out to a sizeable 98.9% of DAL's average daily trading volume over the past month, of 16.0 million shares. Particularly high volume was seen for the $31 strike call option expiring July 15, 2022, with 13,178 contracts trading so far today, representing approximately 1.3 million underlying shares of DAL. Below is a chart showing DAL's trailing twelve month trading history, with the $31 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 264,861 contracts thus far today. That number of contracts represents approximately 26.5 million underlying shares, working out to a sizeable 67.9% of AAL's average daily trading volume over the past month, of 39.0 million shares. Particularly high volume was seen for the $15 strike call option expiring July 15, 2022, with 29,013 contracts trading so far today, representing approximately 2.9 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 NOW options, DAL 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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Particularly high volume was seen for the $15 strike call option expiring July 15, 2022, with 29,013 contracts trading so far today, representing approximately 2.9 million underlying shares of AAL. Below is a chart showing DAL's trailing twelve month trading history, with the $31 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 264,861 contracts thus far today. That number of contracts represents approximately 26.5 million underlying shares, working out to a sizeable 67.9% of AAL's average daily trading volume over the past month, of 39.0 million shares.
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That number of contracts represents approximately 26.5 million underlying shares, working out to a sizeable 67.9% of AAL's average daily trading volume over the past month, of 39.0 million shares. Below is a chart showing DAL's trailing twelve month trading history, with the $31 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 264,861 contracts thus far today. Particularly high volume was seen for the $15 strike call option expiring July 15, 2022, with 29,013 contracts trading so far today, representing approximately 2.9 million underlying shares of AAL.
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That number of contracts represents approximately 26.5 million underlying shares, working out to a sizeable 67.9% of AAL's average daily trading volume over the past month, of 39.0 million shares. Below is a chart showing DAL's trailing twelve month trading history, with the $31 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 264,861 contracts thus far today. Particularly high volume was seen for the $15 strike call option expiring July 15, 2022, with 29,013 contracts trading so far today, representing approximately 2.9 million underlying shares of AAL.
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That number of contracts represents approximately 26.5 million underlying shares, working out to a sizeable 67.9% of AAL's average daily trading volume over the past month, of 39.0 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 NOW options, DAL options, or AAL options, visit StockOptionsChannel.com. Below is a chart showing DAL's trailing twelve month trading history, with the $31 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 264,861 contracts thus far today.
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3416.0
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2022-07-12 00:00:00 UTC
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ANALYSIS-Spirit Airlines winning bidder may need years to recoup price tag
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AAL
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https://www.nasdaq.com/articles/analysis-spirit-airlines-winning-bidder-may-need-years-to-recoup-price-tag
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nan
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nan
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By Angelique Chen, Anirban Sen and David Carnevali
July 12 (Reuters) - The bidding war for Spirit Airlines Inc SAVE.N between Frontier Group Holdings Inc ULCC.O and JetBlue Airways Corp JBLU.O may leave the acquirer taking years to earn back their investment.
JetBlue's latest cash-and-stock bid values Spirit at $3.7 billion, while Frontier's latest cash-and-stock bid, which Spirit recommends its shareholders should back, is worth $2.4 billion. Spirit has delayed its shareholder vote on the deal for a third time to July 15 to negotiate further with both suitors.
JetBlue and Frontier may have to wait anywhere from three to five years or even longer to recoup their investment if they are successful, according to a dozen investment bankers and analysts interviewed by Reuters.
Frontier expects the combined company to deliver annual synergies of roughly $500 million, most of which will start kicking in roughly three or four years after the deal is completed. JetBlue says a tie-up with Spirit will deliver synergies of $600 million to $700 million the first year after integration is complete.
Airline experts said the long-term synergies cited by both JetBlue and Frontier make it worth the price the companies are willing to pay for Spirit, although some analysts cautioned that the bidding war might strain their finances in the near term.
"We are probably heading into a recession. This is not the right time to borrow a lot of money to buy a competitor," said Israel Shaked, professor emeritus of finance at Boston University.
Spirit, JetBlue and Frontier declined to comment.
For an interactive graphic, click on this link: https://tmsnrt.rs/3AwXtq0
EXPENSIVE BET
The bidding war began in February this year, when Frontier offered to buy Spirit. Two months later, JetBlue swooped in with an all-cash, unsolicited bid worth $3.6 billion for Spirit that was higher than the price Frontier had offered.
Since then, both sides have engaged in a game of one-upmanship and made competing offers for Spirit that have included sweeteners such as higher break-up fees and route divestitures, which were aimed at easing regulatory concerns.
Frontier, which has so far been unable to garner enough shareholder support for its proposal, earlier on Monday urged Spirit to extend the shareholder voting deadline to July 27, saying its last proposal was its "best and final offer" and that it was waiving its right to match JetBlue's most recent offer.
The airline industry is grappling with high fuel prices, pilot shortages and flight cancellations as it tackles a rebound in travel demand more than two years after the onset of the COVID-19 pandemic. A tie-up with Spirit would give the winning suitor more scale and resources to deal with these challenges.
Raymond James & Associates airlines analyst Savanthi Syth said the deal made sense long-term even though it was expensive.
"This is a more expensive deal, at 17 times price-to-earnings, than the deal for Virgin America at 15.5 times," Syth said, referring to the bidding war in 2016 between Alaska Air Group Inc ALK.N and JetBlue that ended with Alaska buying Virgin America in a $2.6 billion deal.
Alaska made its deal work. Since taking over Virgin America, it has won market share against low-cost competitors and paid down debt it raised to finance the acquisition, analysts said.
JetBlue is making the same gamble. It will be assuming $3.5 billion of new debt to finance its bid for Spirit. Analysts and management experts pointed out that in the event of a global recession, a highly levered balance sheet could weigh heavily on JetBlue's financial performance, diminishing its earnings power.
"Recessions are always very tricky environments for airlines," said Florian Ederer, associate professor of economics at the Yale School of Management. "We went through a whole range of bankruptcies in previous recessions for airlines."
Frontier will not be stretching itself as much. It had $727 million in cash and long-term debt of roughly $207 million as of March 31.
It is possible the bidding war reaches price levels that would cause one suitor to bow out, said Helane Becker, managing director and senior research analyst at Cowen.
"At some point, one or the other (Frontier or JetBlue) will drop out because Spirit might become overvalued. We don’t believe it is there yet, but we’ll have to see what happens," Becker said.
Frontier has an advantage in that its bid is seen by Spirit as more likely to be cleared by antitrust regulators than a tie-up with JetBlue. JetBlue's current Northeast Alliance with American Airlines is already in the crosshairs of the regulators - in June, a U.S. judge said the Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue would move forward.
Spirit has, so far, said that a deal is not possible unless JetBlue drops that partnership.
Top U.S. airline acquisitions Top U.S. airline acquisitionshttps://tmsnrt.rs/3ySF7Pa
Top U.S. airline acquisitions Top U.S. airline acquisitionshttps://tmsnrt.rs/3AwXtq0
(Reporting by Anirban Sen, Angelique Chen and David Carnevali in New York Additional reporting by David Shepardson in Washington Editing by Greg Roumeliotis and Matthew Lewis)
((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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JetBlue's current Northeast Alliance with American Airlines is already in the crosshairs of the regulators - in June, a U.S. judge said the Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue would move forward. By Angelique Chen, Anirban Sen and David Carnevali July 12 (Reuters) - The bidding war for Spirit Airlines Inc SAVE.N between Frontier Group Holdings Inc ULCC.O and JetBlue Airways Corp JBLU.O may leave the acquirer taking years to earn back their investment. Airline experts said the long-term synergies cited by both JetBlue and Frontier make it worth the price the companies are willing to pay for Spirit, although some analysts cautioned that the bidding war might strain their finances in the near term.
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JetBlue's current Northeast Alliance with American Airlines is already in the crosshairs of the regulators - in June, a U.S. judge said the Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue would move forward. By Angelique Chen, Anirban Sen and David Carnevali July 12 (Reuters) - The bidding war for Spirit Airlines Inc SAVE.N between Frontier Group Holdings Inc ULCC.O and JetBlue Airways Corp JBLU.O may leave the acquirer taking years to earn back their investment. JetBlue's latest cash-and-stock bid values Spirit at $3.7 billion, while Frontier's latest cash-and-stock bid, which Spirit recommends its shareholders should back, is worth $2.4 billion.
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JetBlue's current Northeast Alliance with American Airlines is already in the crosshairs of the regulators - in June, a U.S. judge said the Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue would move forward. By Angelique Chen, Anirban Sen and David Carnevali July 12 (Reuters) - The bidding war for Spirit Airlines Inc SAVE.N between Frontier Group Holdings Inc ULCC.O and JetBlue Airways Corp JBLU.O may leave the acquirer taking years to earn back their investment. JetBlue's latest cash-and-stock bid values Spirit at $3.7 billion, while Frontier's latest cash-and-stock bid, which Spirit recommends its shareholders should back, is worth $2.4 billion.
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JetBlue's current Northeast Alliance with American Airlines is already in the crosshairs of the regulators - in June, a U.S. judge said the Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue would move forward. Airline experts said the long-term synergies cited by both JetBlue and Frontier make it worth the price the companies are willing to pay for Spirit, although some analysts cautioned that the bidding war might strain their finances in the near term. "This is a more expensive deal, at 17 times price-to-earnings, than the deal for Virgin America at 15.5 times," Syth said, referring to the bidding war in 2016 between Alaska Air Group Inc ALK.N and JetBlue that ended with Alaska buying Virgin America in a $2.6 billion deal.
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3417.0
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2022-07-12 00:00:00 UTC
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American Airlines Boosts Q2 System Capacity Outlook
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AAL
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https://www.nasdaq.com/articles/american-airlines-boosts-q2-system-capacity-outlook
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nan
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) on Tuesday revealed in a Form 8-K filing that it now expects second-quarter system capacity (total available seat miles or ASMs) to be down about 8.5 percent from 2019 to about 66.2 billion ASMs, up from the prior guidance for a decline of about 7 to 8 percent.
Revenues for the second quarter are now projected to grow about 12 percent, compared to the prior forecast for a growth of about 11 to 13 percent from 2019.
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) on Tuesday revealed in a Form 8-K filing that it now expects second-quarter system capacity (total available seat miles or ASMs) to be down about 8.5 percent from 2019 to about 66.2 billion ASMs, up from the prior guidance for a decline of about 7 to 8 percent. Revenues for the second quarter are now projected to grow about 12 percent, compared to the prior forecast for a growth of about 11 to 13 percent from 2019. 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) on Tuesday revealed in a Form 8-K filing that it now expects second-quarter system capacity (total available seat miles or ASMs) to be down about 8.5 percent from 2019 to about 66.2 billion ASMs, up from the prior guidance for a decline of about 7 to 8 percent. Revenues for the second quarter are now projected to grow about 12 percent, compared to the prior forecast for a growth of about 11 to 13 percent from 2019. 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) on Tuesday revealed in a Form 8-K filing that it now expects second-quarter system capacity (total available seat miles or ASMs) to be down about 8.5 percent from 2019 to about 66.2 billion ASMs, up from the prior guidance for a decline of about 7 to 8 percent. Revenues for the second quarter are now projected to grow about 12 percent, compared to the prior forecast for a growth of about 11 to 13 percent from 2019. 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) on Tuesday revealed in a Form 8-K filing that it now expects second-quarter system capacity (total available seat miles or ASMs) to be down about 8.5 percent from 2019 to about 66.2 billion ASMs, up from the prior guidance for a decline of about 7 to 8 percent. Revenues for the second quarter are now projected to grow about 12 percent, compared to the prior forecast for a growth of about 11 to 13 percent from 2019. 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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3418.0
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2022-07-12 00:00:00 UTC
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American Airlines expects to report first quarterly profit since 2019
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AAL
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https://www.nasdaq.com/articles/american-airlines-expects-to-report-first-quarterly-profit-since-2019
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nan
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Recasts first paragraph, add details, background
July 12 (Reuters) - American Airlines Group Inc AAL.O expects to report its first pretax quarterly profit since the onset of the pandemic as booming travel demand helps it offset mounting costs, the carrier said on Tuesday.
Major U.S. airlines are poised to post their strongest earnings starting Wednesday, helped by a surge in bookings driven by pent-up demand even as they grapple with higher jet fuel costs and labor shortages.
The carrier expects total revenue per available seat mile to be up about 22.5% amid a lower-than-planned capacity, as its pricing power gains momentum.
"American Airlines' overall guidance looks modestly positive, with revenue stronger than expected, even though ex-fuel seat mile cost and jet fuel kerosene expense pressure look a little worse than expected," said Citi analyst Stephen Trent
The Fort Worth, Texas-based company expects fuel expenses to average between $4.00 and $4.05 per gallon compared with its previous forecast of $3.92 to $3.97 per gallon.
Revenue in the quarter is expected to rise by about 12% to 13.39 billion from the same period in 2019. The company had earlier forecast second-quarter revenue between 11% and 13%.
The carrier expects to earn a pre-tax income of $585 million in the quarter.
(Reporting by Aishwarya Nair and Kannaki Deka in Bengaluru; Editing by Vinay Dwivedi)
((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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Recasts first paragraph, add details, background July 12 (Reuters) - American Airlines Group Inc AAL.O expects to report its first pretax quarterly profit since the onset of the pandemic as booming travel demand helps it offset mounting costs, the carrier said on Tuesday. Major U.S. airlines are poised to post their strongest earnings starting Wednesday, helped by a surge in bookings driven by pent-up demand even as they grapple with higher jet fuel costs and labor shortages. The carrier expects total revenue per available seat mile to be up about 22.5% amid a lower-than-planned capacity, as its pricing power gains momentum.
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Recasts first paragraph, add details, background July 12 (Reuters) - American Airlines Group Inc AAL.O expects to report its first pretax quarterly profit since the onset of the pandemic as booming travel demand helps it offset mounting costs, the carrier said on Tuesday. Major U.S. airlines are poised to post their strongest earnings starting Wednesday, helped by a surge in bookings driven by pent-up demand even as they grapple with higher jet fuel costs and labor shortages. The carrier expects total revenue per available seat mile to be up about 22.5% amid a lower-than-planned capacity, as its pricing power gains momentum.
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Recasts first paragraph, add details, background July 12 (Reuters) - American Airlines Group Inc AAL.O expects to report its first pretax quarterly profit since the onset of the pandemic as booming travel demand helps it offset mounting costs, the carrier said on Tuesday. "American Airlines' overall guidance looks modestly positive, with revenue stronger than expected, even though ex-fuel seat mile cost and jet fuel kerosene expense pressure look a little worse than expected," said Citi analyst Stephen Trent The Fort Worth, Texas-based company expects fuel expenses to average between $4.00 and $4.05 per gallon compared with its previous forecast of $3.92 to $3.97 per gallon. (Reporting by Aishwarya Nair and Kannaki Deka in Bengaluru; Editing by Vinay Dwivedi) ((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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Recasts first paragraph, add details, background July 12 (Reuters) - American Airlines Group Inc AAL.O expects to report its first pretax quarterly profit since the onset of the pandemic as booming travel demand helps it offset mounting costs, the carrier said on Tuesday. Major U.S. airlines are poised to post their strongest earnings starting Wednesday, helped by a surge in bookings driven by pent-up demand even as they grapple with higher jet fuel costs and labor shortages. The carrier expects total revenue per available seat mile to be up about 22.5% amid a lower-than-planned capacity, as its pricing power gains momentum.
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3419.0
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2022-07-12 00:00:00 UTC
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Demand, costs in focus as U.S. airlines report earnings
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AAL
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https://www.nasdaq.com/articles/demand-costs-in-focus-as-u.s.-airlines-report-earnings
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nan
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By Rajesh Kumar Singh
CHICAGO, July 12 (Reuters) - Major U.S. airlines are poised to post their strongest earnings since the start of the pandemic when they report quarterly results starting on Wednesday.
But mounting economic worries are unsettling their investors, who are looking for clues to gauge the strength of consumer demand beyond the busy summer travel season.
Inflation at a 40-year high and rising interest rates have raised the specter of an economic recession in the United States. With air fares also surging, some analysts are warning of a slowdown in travel spending in the second half of the year.
Those worries have battered airline shares even as booming travel demand is driving up the industry's revenue.
The NYSE Arca Airline index .XAL has fallen 25% since late May. In contrast, U.S. passenger traffic is up 18% this summer from a year ago and has been averaging about 89% of the pre-pandemic levels since the Memorial Day holiday weekend in May, according to Transportation Security Administration (TSA) data.
Analysts at Jefferies are not sure if the demand will remain as strong in the fall. In a note, they said airline revenue is expected to "materially weaken" in September following a moderation in leisure travel demand.
Airline chiefs, however, have played down those concerns. They are betting healthy U.S. household savings as well as strong pent-up demand will help fill flights.
Frontier Airlines ULCC.O Chief Executive Barry Biffle said his company has not seen any "degradation" in the bookings. If anything, he said the travel demand is only getting stronger.
"It's the best environment we've ever had in the industry," Biffle told Reuters.
The industry is counting on an increase in international traffic and corporate bookings to offset any slowdown in leisure bookings, which have been trending above 2019 levels.
Online searches by consumers for international travel from the United States, including to Europe, have gone up following the White House's decision to scrap COVID-19 testing requirements.
Similarly, office reopenings have boosted corporate travel demand. Biffle said the fall bookings for business convention cities like Orlando, Florida, and Las Vegas have picked up.
International as well as corporate travel tends to be higher-margin business for carriers. Any improvement in those segments is expected to give a lift to United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O.
COST PRESSURE
Booming demand, thus far, has been allowing carriers to raise fares and offset their soaring costs. Jet fuel prices, for example, have gone up by more than 80% in the past year.
Fuel is the industry's second-biggest expense after labor, but major U.S. airlines do not hedge against volatile oil prices. They rely on higher fares to offset fuel costs.
While the prices have come down in the past month, some analysts say supply constraints would not allow for a substantial correction. United Airlines, which is due to report second-quarter earnings on July 20, sees high fuel prices as the new normal for the industry.
Carriers are also bracing for an increase in 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, American has also announced hefty pay increases for pilots at its regional carriers.
Those offers are expected to act as a benchmark for contract negotiations at other carriers. Biffle calls it a "challenge" that would compel his airline to be "more efficient."
"It's called pattern bargaining for a reason," he said. "When one airline goes up, other union contracts tend to follow."
(Reporting by Rajesh Kumar Singh in Chicago Editing by 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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Any improvement in those segments is expected to give a lift to United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. But mounting economic worries are unsettling their investors, who are looking for clues to gauge the strength of consumer demand beyond the busy summer travel season. In contrast, U.S. passenger traffic is up 18% this summer from a year ago and has been averaging about 89% of the pre-pandemic levels since the Memorial Day holiday weekend in May, according to Transportation Security Administration (TSA) data.
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Any improvement in those segments is expected to give a lift to United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. By Rajesh Kumar Singh CHICAGO, July 12 (Reuters) - Major U.S. airlines are poised to post their strongest earnings since the start of the pandemic when they report quarterly results starting on Wednesday. The industry is counting on an increase in international traffic and corporate bookings to offset any slowdown in leisure bookings, which have been trending above 2019 levels.
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Any improvement in those segments is expected to give a lift to United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. Those worries have battered airline shares even as booming travel demand is driving up the industry's revenue. United Airlines, which is due to report second-quarter earnings on July 20, sees high fuel prices as the new normal for the industry.
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Any improvement in those segments is expected to give a lift to United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. Analysts at Jefferies are not sure if the demand will remain as strong in the fall. International as well as corporate travel tends to be higher-margin business for carriers.
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3420.0
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2022-07-12 00:00:00 UTC
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Peru's Quellaveco mine begins copper concentrate production, says Mitsubishi
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AAL
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https://www.nasdaq.com/articles/perus-quellaveco-mine-begins-copper-concentrate-production-says-mitsubishi
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nan
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nan
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TOKYO, July 12 (Reuters) - The Quellaveco copper mine in Peru, owned by global miner Anglo American AAL.L and Japan's Mitsubishi Corp 8058.T, has started production of copper concentrate, the Japanese trading house said on Tuesday.
Anglo American, which owns 60% stake in the mine, earlier this year forecast the $5.5 billion Peruvian copper project to come onstream by mid-2022, and that it expected production of 100,000 to 150,000 tonnes this year, down from a previous forecast of 120,000 to 160,000 tonnes.
With an estimated yearly output of 300,000 tonnes, the project, 40% held by Mitsubishi, is one of the few sizable ones in the pipeline in an industry hunting for more of the metal, used in solar panels and electric vehicles, as the world moves to a lower carbon economy.
With the new large copper mining project, Mitsubishi's annual copper production through equity holdings is expected to increase to between 320,000 and 370,000 tonnes from the current 200,000 tonnes, the Japanese company said in a statement.
(Reporting by Yuka Obayashi; Editing by Sherry Jacob-Phillips)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))
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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TOKYO, July 12 (Reuters) - The Quellaveco copper mine in Peru, owned by global miner Anglo American AAL.L and Japan's Mitsubishi Corp 8058.T, has started production of copper concentrate, the Japanese trading house said on Tuesday. Anglo American, which owns 60% stake in the mine, earlier this year forecast the $5.5 billion Peruvian copper project to come onstream by mid-2022, and that it expected production of 100,000 to 150,000 tonnes this year, down from a previous forecast of 120,000 to 160,000 tonnes. With an estimated yearly output of 300,000 tonnes, the project, 40% held by Mitsubishi, is one of the few sizable ones in the pipeline in an industry hunting for more of the metal, used in solar panels and electric vehicles, as the world moves to a lower carbon economy.
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TOKYO, July 12 (Reuters) - The Quellaveco copper mine in Peru, owned by global miner Anglo American AAL.L and Japan's Mitsubishi Corp 8058.T, has started production of copper concentrate, the Japanese trading house said on Tuesday. Anglo American, which owns 60% stake in the mine, earlier this year forecast the $5.5 billion Peruvian copper project to come onstream by mid-2022, and that it expected production of 100,000 to 150,000 tonnes this year, down from a previous forecast of 120,000 to 160,000 tonnes. With the new large copper mining project, Mitsubishi's annual copper production through equity holdings is expected to increase to between 320,000 and 370,000 tonnes from the current 200,000 tonnes, the Japanese company said in a statement.
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TOKYO, July 12 (Reuters) - The Quellaveco copper mine in Peru, owned by global miner Anglo American AAL.L and Japan's Mitsubishi Corp 8058.T, has started production of copper concentrate, the Japanese trading house said on Tuesday. Anglo American, which owns 60% stake in the mine, earlier this year forecast the $5.5 billion Peruvian copper project to come onstream by mid-2022, and that it expected production of 100,000 to 150,000 tonnes this year, down from a previous forecast of 120,000 to 160,000 tonnes. With the new large copper mining project, Mitsubishi's annual copper production through equity holdings is expected to increase to between 320,000 and 370,000 tonnes from the current 200,000 tonnes, the Japanese company said in a statement.
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TOKYO, July 12 (Reuters) - The Quellaveco copper mine in Peru, owned by global miner Anglo American AAL.L and Japan's Mitsubishi Corp 8058.T, has started production of copper concentrate, the Japanese trading house said on Tuesday. Anglo American, which owns 60% stake in the mine, earlier this year forecast the $5.5 billion Peruvian copper project to come onstream by mid-2022, and that it expected production of 100,000 to 150,000 tonnes this year, down from a previous forecast of 120,000 to 160,000 tonnes. With an estimated yearly output of 300,000 tonnes, the project, 40% held by Mitsubishi, is one of the few sizable ones in the pipeline in an industry hunting for more of the metal, used in solar panels and electric vehicles, as the world moves to a lower carbon economy.
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3421.0
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2022-07-12 00:00:00 UTC
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S&P 500 Movers: NOW, AAL
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AAL
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https://www.nasdaq.com/articles/sp-500-movers%3A-now-aal
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nan
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In early trading on Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 6.7%. Year to date, American Airlines Group has lost about 20.2% of its value.
And the worst performing S&P 500 component thus far on the day is ServiceNow, trading down 11.1%. ServiceNow is lower by about 32.9% looking at the year to date performance.
Two other components making moves today are Hess, trading down 6.0%, and Delta Air Lines, trading up 5.3% on the day.
VIDEO: S&P 500 Movers: NOW, 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: NOW, 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 Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 6.7%. Year to date, American Airlines Group has lost about 20.2% of its value.
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VIDEO: S&P 500 Movers: NOW, 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 Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 6.7%. Year to date, American Airlines Group has lost about 20.2% of its value.
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VIDEO: S&P 500 Movers: NOW, 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 Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 6.7%. Two other components making moves today are Hess, trading down 6.0%, and Delta Air Lines, trading up 5.3% on the day.
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VIDEO: S&P 500 Movers: NOW, 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 Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 6.7%. And the worst performing S&P 500 component thus far on the day is ServiceNow, trading down 11.1%.
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3422.0
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2022-07-11 00:00:00 UTC
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7 Blue-Chip Stocks to Buy After Last Month’s Massive Beating
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https://www.nasdaq.com/articles/7-blue-chip-stocks-to-buy-after-last-months-massive-beating
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Overall, blue-chip stocks are ones that are considered to be the most valuable and reliable across the stock market. In turn, investing in blue-chip stocks is a popular way to make money.
There are many reasons for this, one of them being that they have been around for a long time and have been performing well. They also tend to be more stable than other stocks because they’re much less volatile than other companies.
However, the most important aspect of these stocks is that they can withstand any financial storm and continue to provide steady returns for investors.
Furthermore, blue-chip stocks are traditionally considered to have a high market capitalization, strong financial performance and stable growth rates.
So, with all of this in mind, I have selected seven blue-chip stocks that did not perform well in June. But, while having an off month in rough market conditions can be scary, these companies have a great record and tend to bounce back very quickly.
7 Best Biotech Stocks to Buy in July 2022
Now, let’s dive in and take a closer look at each one.
Ticker Company Price
HD Home Depot $288.57
ACN Accenture $275.87
MCD McDonald’s $254.03
DIS Disney $93.95
AAL American Airlines $13.40
SHEL Shell $48.36
MNDY Monday.com $110.76
Blue-Chip Stocks to Buy: Home Depot (HD)
Source: Jonathan Weiss / Shutterstock.com
Home Depot (NYSE:HD) is a retail home improvement store that provides a wide variety of products. The company was founded in 1978 and is one of the largest retail stores in the United States.
Home Depot has more than 2,300 stores in all of North America and employs more than 500,000 associates. Additionally, the company generated more than $150 billion in revenue worldwide last year, good for a 14% boost year-over-year (YOY). This growth comes as the home improvement business has been growing and will continue to grow with the recent rise in work-from-home jobs.
Of course, the recent pessimism surrounding mortgage rates has dampened the stock price, though. Undoubtedly, Home Depot is facing tough YOY comps, and rising interest rates do not help. But the company has shown the fundamentals to withstand tough economic conditions.
It has reported the latest quarterly results and a 3.8% increase in revenues. Net earnings saw a 2.07% rise, too. These are not numbers to write home about. While the company might have a tough year in revenues, investors should expect these numbers because things are returning to normal. People aren’t spending as much time outside their homes; It will be a couple of quarters before things are in balance.
Meanwhile, it has been paying dividends for more than 30 years and hasn’t reduced its dividend rate in those three decades. In turn, that will keep investors happy while they wait for revenues to return.
Accenture (ACN)
Source: Tada Images/ShutterStock.com
Accenture is one of the most highly-respected global management consulting, technology services and outsourcing companies with a long history. Ir provides various value-added solutions for businesses to improve efficiency and innovation.
It is one of the largest consulting firms in the world and has 710,000 employees. The company offers a wide range of services to help organizations improve performance and create a competitive advantage.
Accenture has been providing digital transformation services for various companies across the globe. It has been using its AI-powered platform to help companies with their content marketing strategies.
Furthermore, Accenture is a company with a lot of good qualities to it, such as quickly adjusting to changing trends in the market and showing high consistency in achieving good results. It also has an excellent balance sheet, a testament to the management’s fiscal discipline.
Revenue in the latest quarter was $16.2 billion, way beyond what analysts had expected. With that, Accenture forecasts revenue from $15 billion to $15.5 billion for the current quarter.
7 Best Cheap Stocks Under $10 to Buy in July
Overall, Accenture offers many great services that are crucial to today’s world. And even though the company is doing well now, it will only continue to grow its services — making it a great pick for the future.
Blue-Chip Stocks to Buy: McDonald’s (MCD)
Source: 8th.creator / Shutterstock.com
McDonald’s (NYSE:MCD) is an American fast-food restaurant chain with a worldwide presence.
The company’s history started in 1940 when the first McDonald’s opened in San Bernardino, California. The company’s founder, Ray Kroc, was a salesman from Illinois who had become successful in the restaurant business. He made his way to California and discovered that there were no restaurants that served high-quality burgers and fries at a low price. Kroc soon found out that he could use his experience to open his restaurant that would have some of the features he admired about the drive-in restaurants he had seen on one of his trips to southern California.
McDonald’s has been one of the most successful companies in recent history, and it is one of America’s favorite brands. The success of McDonald’s is largely due to its ability to adapt to changes in society and culture. The company has created new products while keeping its core products on offer, like the Big Mac and fries.
McDonald’s has been successful in the past 50 years because it has managed to keep up with the changing times. Recent investments in technology, such as mobile ordering and delivery, allow the company to focus on bettering its digital offerings.
The increasing popularity of digital orders during the pandemic cannot be ignored by McDonald’s, and it needs to find ways to keep up. Digital sales increased 60% in 2021, which is essential for its future success. Other than that, the brand speaks for itself.
Disney (DIS)
Source: ilikeyellow / Shutterstock.com
Disney (NYSE:DIS) is a world-renowned company that has been around for decades. It is known for its movies, theme parks, and more.
Walt Disney has become one of the world’s most powerful media and entertainment companies. Just some of its great achievements include ABC and ESPN. It owns many other important holdings like Disney World, Disney+, Hulu, etc.
Disney is one of the most diversified companies in the world. It has a portfolio that includes theme parks, television networks, merchandise licensing, video games, and movie studios.
At any particular time, Disney will have one division doing particularly well. During Covid-19, streaming picked up because of people sheltering in. The Walt Disney Company reported that its entertainment and tech platform, Disney+, had 137.7 million subscribers worldwide as of Q2. There are reasons to be cheerful-Disney Plus announced that it gained 7.9 million new subscribers during Q2. At a time when Netflix (NASDAQ:NFLX) is losing subscribers, this is music to investors’ ears.
7 Best Financial Stocks to Buy in July 2022
At the same time, you cannot ignore Disney theme parks, resort hotels, and cruise ships. That business segment will return this year, providing additional cushion to its bottom line.
Blue-Chip Stocks to Buy: American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
American Airlines (NASDAQ:AAL) is an American airline company founded in 1930. The company’s headquarters are located in Fort Worth, Texas.
American Airlines is the world’s largest airline, with a fleet of more than 900 aircraft and counting! Revenue-wise, they are unmatched as well.
American Airlines struggled during the pandemic like the rest of the airline sector. However, things have begun to return to normal, and you can see that in the TSA checkpoint travel numbers. AAL benefits from the trend, and March was the first month since Covid swept through that its revenue surpassed 2019 levels. The airline is flying almost all the flights on its 2019 Q2 schedule. It is doing better than Delta and United Airlines.
However, AAL, one of the largest airlines in the world, has had a tough quarter. Despite doubling revenue from the same time last year, it posted a net loss. American Airlines said it paid $2.80 a gallon for fuel in Q1, a big jump of 65% year on year. So it’s not like AAL is completely out of the rut. However, it is in a much better position than it was just a couple of years back.
Shell (SHEL)
Source: JuliusKielaitis / Shutterstock.com
Shell (NYSE:SHEL) has been a multinational oil and gas company in the industry for over 100 years.
In addition to exploring for and producing crude oil and natural gas, Shell manufactures products such as liquefied natural gas (LNG), gasoline, diesel fuel, jet fuel, petrochemicals, hydrogen, and electricity.
Interestingly, as Shell moves away from fossil fuels, it is now investing in renewables and carbon capture. This requires massive capital investments. Therefore, Shell’s valuation will come under pressure for the foreseeable future. But in the long run, it will help the supermajor energy company because the general trend is toward a carbon-neutral future.
More than 100 countries have signed the newly formed Global Alliance for Zero Emissions by 2050. It’s the largest coalition in this area to date and an important step in working towards achieving net-zero emissions by 2050.
7 Best Renewable Energy Stocks to Buy in July 2022
Companies that align with these goals will be better positioned for the future. Shell is a good example of this.
Blue-Chip Stocks to Buy: Monday.com (MNDY)
Source: shutterstock.com/monticello
Monday.com (NASDAQ:MNDY) is a project management software for teams of all sizes. It is designed to help teams work together more efficiently and get more done in less time. The platform helps with collaboration and communication, making it easy for teams to plan, manage, and track progress on any project or initiative.
With Monday.com you can create custom templates that allow you to focus on the things that matter most to your team while letting Monday take care of the rest. Users can collaborate with their team members in real-time across different devices and work seamlessly with clients, vendors, and partners through secure access without any IT headaches.
Monday.com is a project management software that helps teams collaborate and manage projects. It provides tasks and time management software, Gantt charts, Kanban boards, calendar integration, etc.
On May 16, the project management company announced a healthy 84% increase in revenue. Revenue of top-tier customers increased 2 fold, while Net Dollar Retention (NDR) grew 150% year over year among customers with more than $50K ARR.
For the fiscal year 2022, Monday.com has projected total revenue between $488 million and $492 million. This represents year-over-year growth of 58% to 60%.
Monday.com is one of the fastest-growing B2B brands as it has barely scratched its potential as a revenue-generating brand. It sees an addressable market size of $87.6 billion by 2024 making it a great pick for the future.
On the publication date, Faizan Farooque 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 Blue-Chip Stocks to Buy After Last Month’s Massive Beating 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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Ticker Company Price HD Home Depot $288.57 ACN Accenture $275.87 MCD McDonald’s $254.03 DIS Disney $93.95 AAL American Airlines $13.40 SHEL Shell $48.36 MNDY Monday.com $110.76 Blue-Chip Stocks to Buy: Home Depot (HD) Source: Jonathan Weiss / Shutterstock.com Home Depot (NYSE:HD) is a retail home improvement store that provides a wide variety of products. Blue-Chip Stocks to Buy: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) is an American airline company founded in 1930. AAL benefits from the trend, and March was the first month since Covid swept through that its revenue surpassed 2019 levels.
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Ticker Company Price HD Home Depot $288.57 ACN Accenture $275.87 MCD McDonald’s $254.03 DIS Disney $93.95 AAL American Airlines $13.40 SHEL Shell $48.36 MNDY Monday.com $110.76 Blue-Chip Stocks to Buy: Home Depot (HD) Source: Jonathan Weiss / Shutterstock.com Home Depot (NYSE:HD) is a retail home improvement store that provides a wide variety of products. Blue-Chip Stocks to Buy: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) is an American airline company founded in 1930. AAL benefits from the trend, and March was the first month since Covid swept through that its revenue surpassed 2019 levels.
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Ticker Company Price HD Home Depot $288.57 ACN Accenture $275.87 MCD McDonald’s $254.03 DIS Disney $93.95 AAL American Airlines $13.40 SHEL Shell $48.36 MNDY Monday.com $110.76 Blue-Chip Stocks to Buy: Home Depot (HD) Source: Jonathan Weiss / Shutterstock.com Home Depot (NYSE:HD) is a retail home improvement store that provides a wide variety of products. Blue-Chip Stocks to Buy: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) is an American airline company founded in 1930. AAL benefits from the trend, and March was the first month since Covid swept through that its revenue surpassed 2019 levels.
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However, AAL, one of the largest airlines in the world, has had a tough quarter. Ticker Company Price HD Home Depot $288.57 ACN Accenture $275.87 MCD McDonald’s $254.03 DIS Disney $93.95 AAL American Airlines $13.40 SHEL Shell $48.36 MNDY Monday.com $110.76 Blue-Chip Stocks to Buy: Home Depot (HD) Source: Jonathan Weiss / Shutterstock.com Home Depot (NYSE:HD) is a retail home improvement store that provides a wide variety of products. Blue-Chip Stocks to Buy: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) is an American airline company founded in 1930.
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3423.0
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2022-07-11 00:00:00 UTC
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We Did The Math XLI Can Go To $111
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AAL
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https://www.nasdaq.com/articles/we-did-the-math-xli-can-go-to-%24111
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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 The Industrial Select Sector SPDR Fund ETF (Symbol: XLI), we found that the implied analyst target price for the ETF based upon its underlying holdings is $111.00 per unit.
With XLI trading at a recent price near $87.91 per unit, that means that analysts see 26.27% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XLI's underlying holdings with notable upside to their analyst target prices are Southwest Airlines Co (Symbol: LUV), United Rentals Inc (Symbol: URI), and American Airlines Group Inc (Symbol: AAL). Although LUV has traded at a recent price of $36.70/share, the average analyst target is 53.84% higher at $56.46/share. Similarly, URI has 48.60% upside from the recent share price of $248.86 if the average analyst target price of $369.80/share is reached, and analysts on average are expecting AAL to reach a target price of $19.30/share, which is 38.15% above the recent price of $13.97. Below is a twelve month price history chart comparing the stock performance of LUV, URI, and AAL:
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
The Industrial Select Sector SPDR Fund ETF XLI $87.91 $111.00 26.27%
Southwest Airlines Co LUV $36.70 $56.46 53.84%
United Rentals Inc URI $248.86 $369.80 48.60%
American Airlines Group Inc AAL $13.97 $19.30 38.15%
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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The Industrial Select Sector SPDR Fund ETF XLI $87.91 $111.00 26.27% Southwest Airlines Co LUV $36.70 $56.46 53.84% United Rentals Inc URI $248.86 $369.80 48.60% American Airlines Group Inc AAL $13.97 $19.30 38.15% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of XLI's underlying holdings with notable upside to their analyst target prices are Southwest Airlines Co (Symbol: LUV), United Rentals Inc (Symbol: URI), and American Airlines Group Inc (Symbol: AAL). Similarly, URI has 48.60% upside from the recent share price of $248.86 if the average analyst target price of $369.80/share is reached, and analysts on average are expecting AAL to reach a target price of $19.30/share, which is 38.15% above the recent price of $13.97.
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Three of XLI's underlying holdings with notable upside to their analyst target prices are Southwest Airlines Co (Symbol: LUV), United Rentals Inc (Symbol: URI), and American Airlines Group Inc (Symbol: AAL). The Industrial Select Sector SPDR Fund ETF XLI $87.91 $111.00 26.27% Southwest Airlines Co LUV $36.70 $56.46 53.84% United Rentals Inc URI $248.86 $369.80 48.60% American Airlines Group Inc AAL $13.97 $19.30 38.15% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Similarly, URI has 48.60% upside from the recent share price of $248.86 if the average analyst target price of $369.80/share is reached, and analysts on average are expecting AAL to reach a target price of $19.30/share, which is 38.15% above the recent price of $13.97.
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Similarly, URI has 48.60% upside from the recent share price of $248.86 if the average analyst target price of $369.80/share is reached, and analysts on average are expecting AAL to reach a target price of $19.30/share, which is 38.15% above the recent price of $13.97. Three of XLI's underlying holdings with notable upside to their analyst target prices are Southwest Airlines Co (Symbol: LUV), United Rentals Inc (Symbol: URI), and American Airlines Group Inc (Symbol: AAL). Below is a twelve month price history chart comparing the stock performance of LUV, URI, and AAL: Below is a summary table of the current analyst target prices discussed above:
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The Industrial Select Sector SPDR Fund ETF XLI $87.91 $111.00 26.27% Southwest Airlines Co LUV $36.70 $56.46 53.84% United Rentals Inc URI $248.86 $369.80 48.60% American Airlines Group Inc AAL $13.97 $19.30 38.15% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of XLI's underlying holdings with notable upside to their analyst target prices are Southwest Airlines Co (Symbol: LUV), United Rentals Inc (Symbol: URI), and American Airlines Group Inc (Symbol: AAL). Similarly, URI has 48.60% upside from the recent share price of $248.86 if the average analyst target price of $369.80/share is reached, and analysts on average are expecting AAL to reach a target price of $19.30/share, which is 38.15% above the recent price of $13.97.
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3424.0
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2022-07-08 00:00:00 UTC
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Airline Stock Roundup: Pay Hike Likely for AAL Pilots, GOL's June Traffic & More
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-pay-hike-likely-for-aal-pilots-gols-june-traffic-more
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nan
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nan
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With labor problems hurting the U.S. airline industry, there was an encouraging update from American Airlines’ AAL CEO Robert Isom. Per the new proposal made to the Allied Pilots Association, the union representing the pilots, pilot pay is likely to be boosted 17% by 2024 end. European carrier Ryanair Holdings RYAAY also received impressive tidings on the labor front when it reached a pay-related agreement with the British Airline Pilots’ Association (BALPA).
Latin American carrier Gol Linhas’ GOL June traffic measured in revenue passenger kilometers declined 5.5% from the May reading, reflecting the slowdown in air-travel demand in the country. In the latest update on the takeover saga of Spirit Airlines SAVE, management delayed its shareholders’ vote on the buyout offer put forward by Frontier Group Holdings ULCC by a week to Jul 15.
Recap of the Latest Top Stories
1.Per the proposal put forward by AAL’s CEO, pilots will be eligible for a pay hike of 6% on commencement of the contract followed by 5% raises at the start of 2023 and 2024. Moreover, if the deal gets ratified by Sep 30, 2022, there will be other lucrative incentives like retroactive pay. The new offer is being reviewed by the union. American Airlines currently carries a Zacks Rank #3 (Hold). Updates on labor deals at other U.S.-based carriers were mentioned in the previous week’s writeup.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. At Ryanair, the labor deal will accelerate pay restoration of pilots and ensure pay hikes post restoration through 2026. The restoration of pay is necessary as RYAAY intends to expand capacity as much as 115% of the pre-coronavirus levels in the current year itself to meet the demand swell.
Per Ryanair’s people director Darrell Hughes, “While 100% of our pilots across our European network are covered by 2020 Emergency Agreements, we continue to work with our pilots and their unions on new deals, similar to this one concluded with BALPA, and have successfully re-negotiated improved long-term agreements with 70% of our pilots, running until 2026 or 2027 as we prioritize pay restoration.” Naturally, for this capacity expansion, it is imperative to keep RYAAY’s group of pilots satisfied. The pay increments apart, pilots at RYAAY become eligible for other benefits.
3. At Gol Linhas, consolidated capacity (measured in available seat kilometers) expanded 68.6% year over year in June, much higher than the traffic increase of 54%. As a result of capacity expansion outweighing traffic growth, load factor (% of seats filled by passengers) declined 7.2 percentage points to 76.7%. The domestic operations accounted for most of the data as international operations are still minimal.
In the first half of the year, consolidated load factor decreased 2.5 percentage points year over year to 79.3% with capacity expansion (73.2%) outweighing traffic growth (67.9%).
4. To continue talks with Frontier and another bidder JetBlue Airways JBLU, Spirit Airlines postponed its shareholders’ vote, which was scheduled for today. Management at SAVE stated that the shareholders of record as of the close of trading on May 6, 2022, are eligible to vote at the special meeting. Both JetBlue and Frontier are aiming to acquire Spirit Airlines to expand their network and take advantage of the continued improvement in air-travel demand. The takeover battle comes at a time when the airline industry is struggling with staffing and aircraft shortages.
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 almost all airline stocks have traded in the green over the past five trading days. The NYSE ARCA Airline Index has increased 1.3% to $56.46. Over the past six months, the NYSE ARCA Airline Index has plummeted 32.5%.
What's Next in the Airline Space?
Investors will await further updates on the ongoing takeover tussle surrounding Spirit Airlines 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
Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): 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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Recap of the Latest Top Stories 1.Per the proposal put forward by AAL’s CEO, pilots will be eligible for a pay hike of 6% on commencement of the contract followed by 5% raises at the start of 2023 and 2024. With labor problems hurting the U.S. airline industry, there was an encouraging update from American Airlines’ AAL CEO Robert Isom. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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With labor problems hurting the U.S. airline industry, there was an encouraging update from American Airlines’ AAL CEO Robert Isom. Recap of the Latest Top Stories 1.Per the proposal put forward by AAL’s CEO, pilots will be eligible for a pay hike of 6% on commencement of the contract followed by 5% raises at the start of 2023 and 2024. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report With labor problems hurting the U.S. airline industry, there was an encouraging update from American Airlines’ AAL CEO Robert Isom. Recap of the Latest Top Stories 1.Per the proposal put forward by AAL’s CEO, pilots will be eligible for a pay hike of 6% on commencement of the contract followed by 5% raises at the start of 2023 and 2024.
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With labor problems hurting the U.S. airline industry, there was an encouraging update from American Airlines’ AAL CEO Robert Isom. Recap of the Latest Top Stories 1.Per the proposal put forward by AAL’s CEO, pilots will be eligible for a pay hike of 6% on commencement of the contract followed by 5% raises at the start of 2023 and 2024. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3425.0
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2022-07-08 00:00:00 UTC
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UK stocks drop as investors shun risky bets in turbulent week
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AAL
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https://www.nasdaq.com/articles/uk-stocks-drop-as-investors-shun-risky-bets-in-turbulent-week
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nan
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By Sruthi Shankar
July 8 (Reuters) - UK's main stock indexes slipped on Friday as global sentiment soured at the end of a week marked by political turmoil in Britain, soaring energy prices in Europe and hawkish comments from major central banks.
The blue-chip FTSE 100 .FTSE dipped 0.01%, while the domestically oriented FTSE midcap index .FTMC slid 0.4%.
Risk aversion gripped global markets after the shooting of former Japanese Prime Minister Shinzo Abe, while investors awaited U.S. jobs data that could offer clues on the Federal Reserve's rate hike plans. MKTS/GLOB
The pound GBP=, meanwhile, weakened following brief gains made on Thursday after Boris Johnson announced his resignation as British prime minister.
The currency had hit a two-year low versus the dollar earlier this week amid the political chaos as well as worries about economic growth.
"We now see a partial policy vacuum at a time when the economy is stagnating and it's unlikely the Budget will be presented until late in Q4," Javier Corominas, director of global macro strategy at Oxford Economics said in a note.
"This will increase the focus on the Bank of England, further reducing the chances of a step up in the pace of rate hikes as it adopts a wait-and-see approach over weeks ahead."
Meanwhile, a survey showed British employers slowed their hiring via recruitment agencies in June as vacancies increased at the weakest rate in more than a year, adding to signs that the labour market is losing some of its inflationary heat.
Shares of global miners such as Rio Tinto RIO.L and Anglo American AAL.L dragged down the FTSE 100 the most, as metal prices slid on worries about China's COVID-19 flare ups. MET/L
Housebuilder Vistry Group Plc VTYV.L rose 2% after it forecast gross margins to rise significantly in fiscal 2022, riding on strong demand across its businesses.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Amy Caren Daniel and Arun Koyyur)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
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 global miners such as Rio Tinto RIO.L and Anglo American AAL.L dragged down the FTSE 100 the most, as metal prices slid on worries about China's COVID-19 flare ups. By Sruthi Shankar July 8 (Reuters) - UK's main stock indexes slipped on Friday as global sentiment soured at the end of a week marked by political turmoil in Britain, soaring energy prices in Europe and hawkish comments from major central banks. Risk aversion gripped global markets after the shooting of former Japanese Prime Minister Shinzo Abe, while investors awaited U.S. jobs data that could offer clues on the Federal Reserve's rate hike plans.
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Shares of global miners such as Rio Tinto RIO.L and Anglo American AAL.L dragged down the FTSE 100 the most, as metal prices slid on worries about China's COVID-19 flare ups. The blue-chip FTSE 100 .FTSE dipped 0.01%, while the domestically oriented FTSE midcap index .FTMC slid 0.4%. MKTS/GLOB The pound GBP=, meanwhile, weakened following brief gains made on Thursday after Boris Johnson announced his resignation as British prime minister.
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Shares of global miners such as Rio Tinto RIO.L and Anglo American AAL.L dragged down the FTSE 100 the most, as metal prices slid on worries about China's COVID-19 flare ups. By Sruthi Shankar July 8 (Reuters) - UK's main stock indexes slipped on Friday as global sentiment soured at the end of a week marked by political turmoil in Britain, soaring energy prices in Europe and hawkish comments from major central banks. Risk aversion gripped global markets after the shooting of former Japanese Prime Minister Shinzo Abe, while investors awaited U.S. jobs data that could offer clues on the Federal Reserve's rate hike plans.
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Shares of global miners such as Rio Tinto RIO.L and Anglo American AAL.L dragged down the FTSE 100 the most, as metal prices slid on worries about China's COVID-19 flare ups. By Sruthi Shankar July 8 (Reuters) - UK's main stock indexes slipped on Friday as global sentiment soured at the end of a week marked by political turmoil in Britain, soaring energy prices in Europe and hawkish comments from major central banks. The blue-chip FTSE 100 .FTSE dipped 0.01%, while the domestically oriented FTSE midcap index .FTMC slid 0.4%.
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3426.0
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2022-07-08 00:00:00 UTC
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Risk aversion hits UK stocks at the end of a turbulent week
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AAL
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https://www.nasdaq.com/articles/risk-aversion-hits-uk-stocks-at-the-end-of-a-turbulent-week
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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
FTSE 100 and FTSE 250 both down 0.3%
July 8 (Reuters) - UK's main stock indexes slipped on Friday as global sentiment soured at the end of a week marked by political turmoil in Britain, soaring energy prices and hawkish comments from major central banks.
The blue-chip FTSE 100 .FTSE dipped 0.3% by 0708 GMT and the domestically oriented FTSE midcap index .FTMC also slid 0.3%.
Overall, risk aversion crept into global markets after the shooting of former Japanese Prime Minister Shinzo Abe, while investors awaited U.S. jobs data that could offer clues on the Federal Reserve's rate hiking plans. MKTS/GLOB
The pound GBP=, meanwhile, edged towards a two-year low in the wake of Boris Johnson announcing his resignation as British prime minister on Thursday.
Shares of global miners such as Rio Tinto RIO.L and Anglo American AAL.L dragged on the FTSE 100 the most, as metal prices slid on worries about China's COVID-19 flare ups.
Housebuilder Vistry Group Plc VTYV.L rose 1.8% after it forecast "significant margin progression" in fiscal 2022.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Amy Caren Daniel)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
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 global miners such as Rio Tinto RIO.L and Anglo American AAL.L dragged on the FTSE 100 the most, as metal prices slid on worries about China's COVID-19 flare ups. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window FTSE 100 and FTSE 250 both down 0.3% July 8 (Reuters) - UK's main stock indexes slipped on Friday as global sentiment soured at the end of a week marked by political turmoil in Britain, soaring energy prices and hawkish comments from major central banks. Overall, risk aversion crept into global markets after the shooting of former Japanese Prime Minister Shinzo Abe, while investors awaited U.S. jobs data that could offer clues on the Federal Reserve's rate hiking plans.
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Shares of global miners such as Rio Tinto RIO.L and Anglo American AAL.L dragged on the FTSE 100 the most, as metal prices slid on worries about China's COVID-19 flare ups. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window FTSE 100 and FTSE 250 both down 0.3% July 8 (Reuters) - UK's main stock indexes slipped on Friday as global sentiment soured at the end of a week marked by political turmoil in Britain, soaring energy prices and hawkish comments from major central banks. Overall, risk aversion crept into global markets after the shooting of former Japanese Prime Minister Shinzo Abe, while investors awaited U.S. jobs data that could offer clues on the Federal Reserve's rate hiking plans.
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Shares of global miners such as Rio Tinto RIO.L and Anglo American AAL.L dragged on the FTSE 100 the most, as metal prices slid on worries about China's COVID-19 flare ups. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window FTSE 100 and FTSE 250 both down 0.3% July 8 (Reuters) - UK's main stock indexes slipped on Friday as global sentiment soured at the end of a week marked by political turmoil in Britain, soaring energy prices and hawkish comments from major central banks. Overall, risk aversion crept into global markets after the shooting of former Japanese Prime Minister Shinzo Abe, while investors awaited U.S. jobs data that could offer clues on the Federal Reserve's rate hiking plans.
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Shares of global miners such as Rio Tinto RIO.L and Anglo American AAL.L dragged on the FTSE 100 the most, as metal prices slid on worries about China's COVID-19 flare ups. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window FTSE 100 and FTSE 250 both down 0.3% July 8 (Reuters) - UK's main stock indexes slipped on Friday as global sentiment soured at the end of a week marked by political turmoil in Britain, soaring energy prices and hawkish comments from major central banks. The blue-chip FTSE 100 .FTSE dipped 0.3% by 0708 GMT and the domestically oriented FTSE midcap index .FTMC also slid 0.3%.
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3427.0
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2022-07-07 00:00:00 UTC
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U.S. awards $968.6 million for airport terminal projects
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AAL
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https://www.nasdaq.com/articles/u.s.-awards-%24968.6-million-for-airport-terminal-projects-0
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nan
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nan
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By David Shepardson
WASHINGTON, July 7 (Reuters) - The U.S. Transportation Department on Thursday awarded $968.6 million to 85 airport projects to address the country's aging and often mocked aviation infrastructure.
Some projects will fund new terminals, boost gate capacity, add air traffic control towers, jet bridges, new bathrooms, baggage claim belts and reconfigure security checkpoints.
The five-year, $5 billion airport terminal grant program was approved by Congress in November as part of the $1 trillion infrastructure law.
"Airport terminals are not something the federal government has historically invested in. It's typically been local airport owners and airlines that have done that. But the need is evident," White House infrastructure coordinator Mitch Landrieu told reporters.
U.S. airports have often fared poorly in worldwide comparisons and occasionally received ridicule from foreign visitors.
"America is a country that brought modern aviation to the world and yet around the world in most rankings of airport quality, not one of our airports rank among the Top 25," U.S. Transportation Secretary Pete Buttigieg said, adding no one could look at U.S. airports and say "the existing system and existing levels of funding have been adequate."
Among projects set to receive funding: $60 million for a new baggage handling system at Denver's airport, $50 million for Los Angeles to reconstruct its terminal roadway system and reconfigure a central entrance; $62 million for Boston to renovate the existing 1974 Terminal E facilities at Logan International Airport and replace arrival roadways; $50 million for Orlando to build four new gates and $40 million for Atlanta to widen, update and modernize the 40-year-old Concourse D at bustling Hartsfield-Jackson Atlanta International, the busiest U.S. airport.
Detroit Metropolitan Airport will get $49.6 million to fund new restrooms, baggage claim belts and replace some passenger boarding bridges, while airports in Montana serving Yellowstone and Missoula will receive $21 million for replacement terminal building construction and Dallas-Fort Worth Airport is getting $35 million to build a new zero-carbon electrical utility plant.
Trade group Airports Council International – North America noted the Federal Aviation Administration (FAA) had received more than 650 applicants seeking more than $14 billion and could only fund a fraction of requests.
"We will continue to work closely with our federal partners to secure additional funding for these critical infrastructure projects," the group said.
Airport projects are generally funded through a passenger facility charge on airplane tickets. Airlines oppose raising those fees.
U.S. President Joe Biden as vice president in 2014 famously compared New York's LaGuardia Airport to "some third-world country." In June, New York celebrated LaGuardia's six-year, $8 billion reconstruction that was funded in part by American Airlines AAL.O and Delta Air Lines DAL.N.
"Come see this, President Biden, because your jaw is going to drop," New York Governor Kathy Hochul said.
(Reporting by David Shepardson; Editing by Kim Coghill and Bill Berkrot)
((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 June, New York celebrated LaGuardia's six-year, $8 billion reconstruction that was funded in part by American Airlines AAL.O and Delta Air Lines DAL.N. By David Shepardson WASHINGTON, July 7 (Reuters) - The U.S. Transportation Department on Thursday awarded $968.6 million to 85 airport projects to address the country's aging and often mocked aviation infrastructure. Some projects will fund new terminals, boost gate capacity, add air traffic control towers, jet bridges, new bathrooms, baggage claim belts and reconfigure security checkpoints.
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In June, New York celebrated LaGuardia's six-year, $8 billion reconstruction that was funded in part by American Airlines AAL.O and Delta Air Lines DAL.N. Some projects will fund new terminals, boost gate capacity, add air traffic control towers, jet bridges, new bathrooms, baggage claim belts and reconfigure security checkpoints. Among projects set to receive funding: $60 million for a new baggage handling system at Denver's airport, $50 million for Los Angeles to reconstruct its terminal roadway system and reconfigure a central entrance; $62 million for Boston to renovate the existing 1974 Terminal E facilities at Logan International Airport and replace arrival roadways; $50 million for Orlando to build four new gates and $40 million for Atlanta to widen, update and modernize the 40-year-old Concourse D at bustling Hartsfield-Jackson Atlanta International, the busiest U.S. airport.
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In June, New York celebrated LaGuardia's six-year, $8 billion reconstruction that was funded in part by American Airlines AAL.O and Delta Air Lines DAL.N. "America is a country that brought modern aviation to the world and yet around the world in most rankings of airport quality, not one of our airports rank among the Top 25," U.S. Transportation Secretary Pete Buttigieg said, adding no one could look at U.S. airports and say "the existing system and existing levels of funding have been adequate." Among projects set to receive funding: $60 million for a new baggage handling system at Denver's airport, $50 million for Los Angeles to reconstruct its terminal roadway system and reconfigure a central entrance; $62 million for Boston to renovate the existing 1974 Terminal E facilities at Logan International Airport and replace arrival roadways; $50 million for Orlando to build four new gates and $40 million for Atlanta to widen, update and modernize the 40-year-old Concourse D at bustling Hartsfield-Jackson Atlanta International, the busiest U.S. airport.
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In June, New York celebrated LaGuardia's six-year, $8 billion reconstruction that was funded in part by American Airlines AAL.O and Delta Air Lines DAL.N. Among projects set to receive funding: $60 million for a new baggage handling system at Denver's airport, $50 million for Los Angeles to reconstruct its terminal roadway system and reconfigure a central entrance; $62 million for Boston to renovate the existing 1974 Terminal E facilities at Logan International Airport and replace arrival roadways; $50 million for Orlando to build four new gates and $40 million for Atlanta to widen, update and modernize the 40-year-old Concourse D at bustling Hartsfield-Jackson Atlanta International, the busiest U.S. airport. U.S. President Joe Biden as vice president in 2014 famously compared New York's LaGuardia Airport to "some third-world country."
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3428.0
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2022-07-07 00:00:00 UTC
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5 Stocks and Industries That Moved the Market in June
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AAL
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https://www.nasdaq.com/articles/5-stocks-and-industries-that-moved-the-market-in-june
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June was another wild month in the stock market, with some stocks posting big gains while others suffered steep losses. There are a few major themes that are influencing stocks right now, and it's important for investors to understand them as we prepare for the second half of the year. These industries and individual stocks illustrate the important forces that moved the market last month.
1. Travel stocks
June was a rough month for transportation stocks, particularly airlines and cruise operators. Carnival (NYSE: CCL) was down 37%, Royal Caribbean (NYSE: RCL) dropped 39%, and Norwegian Cruise Lines (NYSE: NCLH) fell 30%. Delta Air Lines (NYSE: DAL), Southwest (NYSE: LUV), American (NASDAQ: AAL), and United (NASDAQ: UAL) all dropped 20%-30%, too.
Data by YCharts
Less than two years removed from the unprecedented pandemic travel shutdown, these companies are all dealing with a new perfect storm of threats. Abnormally high fuel and labor costs impact airline and cruise line profit margins. Simultaneously, consumers are getting crushed by high inflation and recession fears related to the Fed's rate hikes.
Many of these companies are ill-equipped to withstand sudden shocks to their cash flows. They have enormous fixed costs, carry a lot of debt, and have to invest heavily in the purchase and upkeep of machinery. That translates to cash flowing to lenders, employees, and suppliers each quarter, rather than to shareholders. This is only going to get more difficult as the cost of capital rises with interest rates.
Image source: Getty Images.
This has Wall Street on edge. These stocks are all fairly cheap compared to their historically normal levels of cash flow, so it could be a bargain based on short-term fears. Still, these are all legitimate threats and there aren't any clear growth catalysts on the immediate horizon. It could get worse before it gets better.
2. Freeport-McMoRan
Freeport-McMoRan (NYSE: FCX) is one of the world's leading producers of copper, and it's also a significant player in the gold mining market. The stock fell 26% in June as commodity prices fell steeply.
Like the transportation stocks, many mining stocks are getting hit by a combination of recession fears, high fixed costs, and debt-heavy balance sheets. Spot prices for copper and other metals are forcing investors to revise their profit forecasts downward for Freeport-McMoRan and other mining companies.
3. Marathon Oil
Marathon Oil (NYSE: MRO) is an oil production and exploration company that fell nearly 28% in June. The energy sector dealt with some of the same issues as mining stocks. Crude oil spot prices tumbled around 17% in the month, and the SPDR Energy Sector ETF was dragged down 19% as a result. Marathon Oil fits the debt-heavy, capital intensive description of other stocks on this list. As crude oil gave back some of its gains from earlier in the year, companies like Marathon are threatened by lower cash flows.
Marathon Oil has the extra drawback of a 1.5% dividend yield, which is lower than many of its peers. That likely takes away momentum from the stock, because there are other options around with similar catalysts and higher dividend returns.
4. Chewy
Chewy (NYSE: CHWY) rose nearly 50% in June. The company started the month with a great earnings report that exceeded estimates. Chewy was among the high-growth pandemic stocks that crashed over the past year after reaching unsustainably high valuation levels. At a more reasonable 1.7 price-to-sales ratio, investors now have a chance to give this e-commerce stock a fair shake.
Many pets were adopted during the pandemic, which should lead to sustainable demand for pet products. Chewy is thriving in that environment, and its sales continue to grow profitably. Even more encouraging, Chewy customers are actually spending more over time. That's a bullish signal for a company that faces stiff competition and high expectations.
5. Veeva Systems
Veeva Systems (NYSE: VEEV) rose 15% in June after it beat Wall Street estimates for quarterly sales and raised full-year forecasts. Veeva dominates the cloud software market for the life sciences industry. Its software supports pharmaceutical and biotech companies in a range of applications such as drug development, regulatory compliances, clinical trial management, marketing, and sales. That creates a tremendous amount of opportunity, but investors still need to maintain reasonable expectations.
Veeva Systems is following a path that's common among many high-growth tech stocks right now. It shot to historically high valuation levels in 2020, and it's endured a volatile period over the past 6-12 months as investor risk appetite normalizes. Growth stocks experienced some relief in June after they took such a beating in the prior months. Veeva itself is dealing with slower sales and some operating margin compression, which is a bad mixture for any growth stock. However, it's got a wide economic moat and looks ready to continue outpacing wider economic growth for the foreseeable future. Investors just need to keep expectations realistic.
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Ryan Downie has positions in Veeva Systems. The Motley Fool has positions in and recommends Chewy, Inc., Energy Select Sector SPDR, and Veeva Systems. The Motley Fool recommends Carnival, Delta Air Lines, 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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Delta Air Lines (NYSE: DAL), Southwest (NYSE: LUV), American (NASDAQ: AAL), and United (NASDAQ: UAL) all dropped 20%-30%, too. These stocks are all fairly cheap compared to their historically normal levels of cash flow, so it could be a bargain based on short-term fears. Its software supports pharmaceutical and biotech companies in a range of applications such as drug development, regulatory compliances, clinical trial management, marketing, and sales.
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Delta Air Lines (NYSE: DAL), Southwest (NYSE: LUV), American (NASDAQ: AAL), and United (NASDAQ: UAL) all dropped 20%-30%, too. Veeva Systems Veeva Systems (NYSE: VEEV) rose 15% in June after it beat Wall Street estimates for quarterly sales and raised full-year forecasts. The Motley Fool has positions in and recommends Chewy, Inc., Energy Select Sector SPDR, and Veeva Systems.
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Delta Air Lines (NYSE: DAL), Southwest (NYSE: LUV), American (NASDAQ: AAL), and United (NASDAQ: UAL) all dropped 20%-30%, too. Travel stocks June was a rough month for transportation stocks, particularly airlines and cruise operators. Like the transportation stocks, many mining stocks are getting hit by a combination of recession fears, high fixed costs, and debt-heavy balance sheets.
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Delta Air Lines (NYSE: DAL), Southwest (NYSE: LUV), American (NASDAQ: AAL), and United (NASDAQ: UAL) all dropped 20%-30%, too. Chewy Chewy (NYSE: CHWY) rose nearly 50% in June. Veeva Systems Veeva Systems (NYSE: VEEV) rose 15% in June after it beat Wall Street estimates for quarterly sales and raised full-year forecasts.
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3429.0
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2022-07-07 00:00:00 UTC
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U.S. awards $968.6 million for airport terminal projects
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AAL
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https://www.nasdaq.com/articles/u.s.-awards-%24968.6-million-for-airport-terminal-projects
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nan
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By David Shepardson
WASHINGTON, July 7 (Reuters) - The U.S. Transportation Department on Thursday awarded $968.6 million to 85 airport projects to address the country's aging and often mocked aviation infrastructure.
Some projects will fund new terminals, boost gate capacity, add air traffic control towers, jet bridges, new bathrooms, baggage claim belts and reconfigure security checkpoints.
The five-year $5 billion airport terminal grant program was approved by Congress in November as part of the $1 trillion infrastructure law.
"Airport terminals are not something the federal government has historically invested in -- it's typically been local airport owners and airlines that have done that. But the need is evident," White House infrastructure coordinator Mitch Landrieu told reporters.
U.S. airports have often fared poorly in worldwide comparisons and occasionally received ridicule from foreign visitors.
"America is a country that brought modern aviation to the world and yet around the world in most rankings of airport quality, not one of our airports rank among the Top 25," U.S. Transportation Secretary Pete Buttigieg said, arguing no one could look at U.S. airports and say "the existing system and existing levels of funding have been adequate."
Among projects getting funding: $50 million for Los Angeles International to reconstruct its terminal roadway system and reconfigure a central entrance; $62 million for Boston to renovate the existing 1974 Terminal E facilities and replace arrival roadways; $50 million for Orlando to build four new gates and $40 million for Atlanta to widen, update and modernize the 40-year-old Concourse D.
Detroit Metropolitan Airport will get $49.6 million to fund new restrooms, baggage claim belts and replace some passenger boarding bridges. Airports in Montana serving Yellowstone and Missoula will receive $21 million for replacement terminal building construction. Dallas-Fort Worth Airport is getting $35 million to build a new zero-carbon electrical utility plant.
Then Vice President Joe Biden in 2014 compared New York's LaGuardia Airport to "some third-world country." In June, New York celebrated LaGuardia's six-year $8 billion reconstruction that was funded in large part by American Airlines AAL.O and Delta Air Lines DAL.N.
"Come see this, President Biden, because your jaw is going to drop," Governor Kathy Hochul said.
(Reporting by David Shepardson; Editing by Kim Coghill)
((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 June, New York celebrated LaGuardia's six-year $8 billion reconstruction that was funded in large part by American Airlines AAL.O and Delta Air Lines DAL.N. By David Shepardson WASHINGTON, July 7 (Reuters) - The U.S. Transportation Department on Thursday awarded $968.6 million to 85 airport projects to address the country's aging and often mocked aviation infrastructure. Some projects will fund new terminals, boost gate capacity, add air traffic control towers, jet bridges, new bathrooms, baggage claim belts and reconfigure security checkpoints.
|
In June, New York celebrated LaGuardia's six-year $8 billion reconstruction that was funded in large part by American Airlines AAL.O and Delta Air Lines DAL.N. Among projects getting funding: $50 million for Los Angeles International to reconstruct its terminal roadway system and reconfigure a central entrance; $62 million for Boston to renovate the existing 1974 Terminal E facilities and replace arrival roadways; $50 million for Orlando to build four new gates and $40 million for Atlanta to widen, update and modernize the 40-year-old Concourse D. Detroit Metropolitan Airport will get $49.6 million to fund new restrooms, baggage claim belts and replace some passenger boarding bridges. Airports in Montana serving Yellowstone and Missoula will receive $21 million for replacement terminal building construction.
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In June, New York celebrated LaGuardia's six-year $8 billion reconstruction that was funded in large part by American Airlines AAL.O and Delta Air Lines DAL.N. By David Shepardson WASHINGTON, July 7 (Reuters) - The U.S. Transportation Department on Thursday awarded $968.6 million to 85 airport projects to address the country's aging and often mocked aviation infrastructure. "America is a country that brought modern aviation to the world and yet around the world in most rankings of airport quality, not one of our airports rank among the Top 25," U.S. Transportation Secretary Pete Buttigieg said, arguing no one could look at U.S. airports and say "the existing system and existing levels of funding have been adequate."
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In June, New York celebrated LaGuardia's six-year $8 billion reconstruction that was funded in large part by American Airlines AAL.O and Delta Air Lines DAL.N. Among projects getting funding: $50 million for Los Angeles International to reconstruct its terminal roadway system and reconfigure a central entrance; $62 million for Boston to renovate the existing 1974 Terminal E facilities and replace arrival roadways; $50 million for Orlando to build four new gates and $40 million for Atlanta to widen, update and modernize the 40-year-old Concourse D. Detroit Metropolitan Airport will get $49.6 million to fund new restrooms, baggage claim belts and replace some passenger boarding bridges. Then Vice President Joe Biden in 2014 compared New York's LaGuardia Airport to "some third-world country."
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3430.0
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2022-07-07 00:00:00 UTC
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Spirit postpones Frontier deal vote, to continue talks with Frontier and JetBlue
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AAL
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https://www.nasdaq.com/articles/spirit-postpones-frontier-deal-vote-to-continue-talks-with-frontier-and-jetblue
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nan
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By Anirban Sen and Svea Herbst-Bayliss
July 7 (Reuters) - Spirit Airlines Inc SAVE.N said it has postponed a shareholder vote scheduled for Friday on its $2.4 billion sale to Frontier Group Holdings Inc ULCC.O so its board can continue discussions with both Frontier and JetBlue Airways.
Reuters first reported the planned delay.
Over the past few months, JetBlue and Frontier, led by influential airline investor Bill Franke, have repeatedly sweentened their bids for Spirit, seeking to create the fifth largest U.S. airline.
The Spirit shareholder vote, which has been delayed twice before, is being pushed back for a third time to give Spirit and JetBlue time to finalize a deal, sources told Reuters, requesting anonymity as the discussions are confidential.
Spirit said it now plans to hold a special meeting on July 15.
JetBlue CEO Robin Hayes said in a statement the airline was "encouraged by our discussions with Spirit and are hopeful they now recognize that Spirit shareholders have indicated their clear, overwhelming preference for an agreement with JetBlue."
JetBlue submitted a sweetened $3.7 billion all-cash bid last month but Spirit has been reluctant to accept JetBlue's much more financially attractive offer due to concerns that antitrust regulators may reject it, according to the sources.
JetBlue is already facing a lawsuit from the U.S. Justice Department over its partnership with American Airlines AAL.O in the New York and Boston areas.
There is no certainty JetBlue will provide Spirit the necessary assurances on the regulatory front to reach a deal and Frontier, which has already improved its offer, may come back with a new bid, the sources added.
The Frontier deal is also expected to face antitrust scrutiny. But Spirit and some analysts say that deal has a better chance of getting a nod from regulators.
Both bidders view Spirit as an opportunity to expand their domestic footprints and reshape the U.S. airline industry, which is largely dominated by four domestic carriers. An acquisition by either bidder would come at a time when the industry is currently grappling with labor and aircraft shortages.
Last week, Spirit was forced to postpone the shareholder vote until July 8. The sources said it did not have enough shareholders to back the Frontier deal at the time.
(Reporting by Anirban Sen and Svea Herbst-Bayliss in New York and David Shepardson in Washington; additional reporting by Rajesh Kumar Singh; Editing by Greg Roumeliotis, Bill Berkrot and Edwina Gibbs)
((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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JetBlue is already facing a lawsuit from the U.S. Justice Department over its partnership with American Airlines AAL.O in the New York and Boston areas. There is no certainty JetBlue will provide Spirit the necessary assurances on the regulatory front to reach a deal and Frontier, which has already improved its offer, may come back with a new bid, the sources added. (Reporting by Anirban Sen and Svea Herbst-Bayliss in New York and David Shepardson in Washington; additional reporting by Rajesh Kumar Singh; Editing by Greg Roumeliotis, Bill Berkrot and Edwina Gibbs) ((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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JetBlue is already facing a lawsuit from the U.S. Justice Department over its partnership with American Airlines AAL.O in the New York and Boston areas. By Anirban Sen and Svea Herbst-Bayliss July 7 (Reuters) - Spirit Airlines Inc SAVE.N said it has postponed a shareholder vote scheduled for Friday on its $2.4 billion sale to Frontier Group Holdings Inc ULCC.O so its board can continue discussions with both Frontier and JetBlue Airways. The Spirit shareholder vote, which has been delayed twice before, is being pushed back for a third time to give Spirit and JetBlue time to finalize a deal, sources told Reuters, requesting anonymity as the discussions are confidential.
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JetBlue is already facing a lawsuit from the U.S. Justice Department over its partnership with American Airlines AAL.O in the New York and Boston areas. By Anirban Sen and Svea Herbst-Bayliss July 7 (Reuters) - Spirit Airlines Inc SAVE.N said it has postponed a shareholder vote scheduled for Friday on its $2.4 billion sale to Frontier Group Holdings Inc ULCC.O so its board can continue discussions with both Frontier and JetBlue Airways. The Spirit shareholder vote, which has been delayed twice before, is being pushed back for a third time to give Spirit and JetBlue time to finalize a deal, sources told Reuters, requesting anonymity as the discussions are confidential.
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JetBlue is already facing a lawsuit from the U.S. Justice Department over its partnership with American Airlines AAL.O in the New York and Boston areas. By Anirban Sen and Svea Herbst-Bayliss July 7 (Reuters) - Spirit Airlines Inc SAVE.N said it has postponed a shareholder vote scheduled for Friday on its $2.4 billion sale to Frontier Group Holdings Inc ULCC.O so its board can continue discussions with both Frontier and JetBlue Airways. The Spirit shareholder vote, which has been delayed twice before, is being pushed back for a third time to give Spirit and JetBlue time to finalize a deal, sources told Reuters, requesting anonymity as the discussions are confidential.
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3431.0
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2022-07-07 00:00:00 UTC
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EXCLUSIVE-Spirit to postpone Frontier deal vote as JetBlue talks progress -sources
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AAL
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https://www.nasdaq.com/articles/exclusive-spirit-to-postpone-frontier-deal-vote-as-jetblue-talks-progress-sources-0
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By Anirban Sen and Svea Herbst-Bayliss
July 7 (Reuters) - Spirit Airlines Inc SAVE.N will postpone a shareholder vote scheduled for Friday on its $2.4 billion sale to Frontier Group Holdings Inc ULCC.O so it can continue negotiations about selling itself to JetBlue Airways Corp JBLU.O instead, according to people familiar with the matter.
The Spirit shareholder vote, which has been delayed twice before, is expected to be pushed back by several days to give Spirit and JetBlue time to finalize a deal, the sources said, requesting anonymity as the discussions are confidential.
The delay is a boon for JetBlue, which submitted a sweetened $3.7 billion all-cash bid to acquire Spirit last month. Spirit has been reluctant to accept JetBlue's offer, even though it is financially more attractive than the proposed Frontier deal, because of concerns that antitrust regulators may reject it, according to the sources.
JetBlue is already facing a lawsuit from the U.S. Justice Department over its partnership with American Airlines AAL.O in the New York and Boston areas.
The Frontier deal is also expected to face antitrust scrutiny. But Spirit and some analysts say that deal has a better chance of getting a nod from regulators.
There is no certainty JetBlue will provide Spirit the necessary assurances on the regulatory front to reach a deal and Frontier, which has already improved its offer, may come back with a new bid, the sources added.
Spokespeople for the companies declined to comment.
Spirit has been the target of a bruising takeover battle between Frontier and JetBlue since it first announced a deal with Frontier in February.
Both bidders view Spirit as an opportunity to expand their domestic footprints and reshape the U.S. airline industry, which is largely dominated by four domestic carriers. An acquisition by either bidder would create the fifth largest U.S. airline, at a time when the industry is currently grappling with labor and aircraft shortages.
Last week, Spirit was forced to postpone the shareholder vote until July 8. The sources said it did not have enough shareholders to back the Frontier deal at the time.
Frontier, led by influential airline investor Bill Franke, and JetBlue have repeatedly tried to outbid each other over the past few months.
(Reporting by Anirban Sen and Svea Herbst-Bayliss in New York; additional reporting by Rajesh Kumar Singh; Editing by Greg Roumeliotis and Bill Berkrot)
((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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JetBlue is already facing a lawsuit from the U.S. Justice Department over its partnership with American Airlines AAL.O in the New York and Boston areas. By Anirban Sen and Svea Herbst-Bayliss July 7 (Reuters) - Spirit Airlines Inc SAVE.N will postpone a shareholder vote scheduled for Friday on its $2.4 billion sale to Frontier Group Holdings Inc ULCC.O so it can continue negotiations about selling itself to JetBlue Airways Corp JBLU.O instead, according to people familiar with the matter. Spirit has been reluctant to accept JetBlue's offer, even though it is financially more attractive than the proposed Frontier deal, because of concerns that antitrust regulators may reject it, according to the sources.
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JetBlue is already facing a lawsuit from the U.S. Justice Department over its partnership with American Airlines AAL.O in the New York and Boston areas. By Anirban Sen and Svea Herbst-Bayliss July 7 (Reuters) - Spirit Airlines Inc SAVE.N will postpone a shareholder vote scheduled for Friday on its $2.4 billion sale to Frontier Group Holdings Inc ULCC.O so it can continue negotiations about selling itself to JetBlue Airways Corp JBLU.O instead, according to people familiar with the matter. The Frontier deal is also expected to face antitrust scrutiny.
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JetBlue is already facing a lawsuit from the U.S. Justice Department over its partnership with American Airlines AAL.O in the New York and Boston areas. By Anirban Sen and Svea Herbst-Bayliss July 7 (Reuters) - Spirit Airlines Inc SAVE.N will postpone a shareholder vote scheduled for Friday on its $2.4 billion sale to Frontier Group Holdings Inc ULCC.O so it can continue negotiations about selling itself to JetBlue Airways Corp JBLU.O instead, according to people familiar with the matter. The Spirit shareholder vote, which has been delayed twice before, is expected to be pushed back by several days to give Spirit and JetBlue time to finalize a deal, the sources said, requesting anonymity as the discussions are confidential.
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JetBlue is already facing a lawsuit from the U.S. Justice Department over its partnership with American Airlines AAL.O in the New York and Boston areas. Spirit has been reluctant to accept JetBlue's offer, even though it is financially more attractive than the proposed Frontier deal, because of concerns that antitrust regulators may reject it, according to the sources. The Frontier deal is also expected to face antitrust scrutiny.
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3432.0
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2022-07-06 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-2
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nan
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American Airlines (AAL) closed at $13.89 in the latest trading session, marking a +0.07% move from the prior day. The stock lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the world's largest airline had lost 16.84% over the past month, lagging the Transportation sector's loss of 8.76% and the S&P 500's loss of 6.59% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. On that day, American Airlines is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 141.42%. Our most recent consensus estimate is calling for quarterly revenue of $13.15 billion, up 75.88% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.34 per share and revenue of $47.35 billion. These results would represent year-over-year changes of +84.01% and +58.46%, respectively.
Investors might also notice recent changes to analyst estimates for American Airlines. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 18.5% lower within the past month. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 228, which puts it in the bottom 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
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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.
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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) closed at $13.89 in the latest trading session, marking a +0.07% move from the prior day. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.34 per share and revenue of $47.35 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 -$1.34 per share and revenue of $47.35 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed at $13.89 in the latest trading session, marking a +0.07% move from the prior day.
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AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.34 per share and revenue of $47.35 billion. American Airlines (AAL) closed at $13.89 in the latest trading session, marking a +0.07% move from the prior day. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed at $13.89 in the latest trading session, marking a +0.07% move from the prior day. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.34 per share and revenue of $47.35 billion.
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3433.0
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2022-07-06 00:00:00 UTC
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1 More Reason to Avoid American Airlines Stock: Surging Costs
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AAL
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https://www.nasdaq.com/articles/1-more-reason-to-avoid-american-airlines-stock%3A-surging-costs
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nan
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For much of last year, American Airlines (NASDAQ: AAL) shares seemed to defy gravity, despite the continuing impact of the COVID-19 pandemic on demand.
Indeed, American posted a pre-tax loss of $2.5 billion in 2021. Excluding special items (most notably, the benefit from government payroll support programs), its pre-tax loss came to nearly $7 billion. Nevertheless, American Airlines stock spent much of last year above $20, putting its market cap roughly in line with pre-pandemic levels and its enterprise value at a multiyear high.
American Airlines Market Cap and Enterprise Value, data by YCharts.
Recently, reality has started to sink in. American Airlines stock has lost more than a quarter of its value since April. Yet the company faces severe profit headwinds that could keep the stock moving lower over time.
High costs offset strong demand
Last month, American Airlines raised its guidance for the second quarter. It now expects to report a 4% to 6% adjusted pre-tax margin: up from an initial forecast of 3% to 5%. That would give the company its first quarterly profit since 2019.
This represents a step in the right direction. However, American needed a huge improvement in demand just to eke out this small guidance increase. American Airlines currently estimates that unit revenue surged 20% to 22% compared to Q2 2019 last quarter: 6 percentage points better than its initial outlook. And even with sales booming, American's updated guidance calls for a quarterly adjusted pre-tax margin well below its Q2 2019 result of 9%.
Moreover, American Airlines lost $1.9 billion before tax in the first quarter, excluding special items. The company's projected profit for the second quarter -- typically the most profitable part of the year -- won't even offset half of its Q1 loss. That leaves American on track for another full-year loss in 2022.
Image source: American Airlines.
More cost increases ahead
Recently, fuel costs have been the biggest pressure point on American Airlines' bottom line. But non-fuel unit costs remain well above 2019 levels, too.
Soaring pilot pay could add to American's earnings woes in the near term. Last month, the company handed out huge pay raises to the thousands of pilots at its wholly owned regional airlines. In addition to permanent raises, the pilots will receive a 50% pay bump through August 2024 as American Airlines looks to address the attrition problem that is roiling the regional airline industry.
American Airlines also recently extended a new contract offer to its mainline pilots. If ratified, the pilots would receive average raises of 6% on the date of signing, additional 5% raises at the beginning of 2023 and 2024, and a one-time retroactive pay bonus.
These pay increases may be necessary to retain and recruit pilots, but they will likely boost annual expenses by $500 million or more over the next few years. That will make it harder for American Airlines to restore its earnings to pre-pandemic levels.
American Airlines stock looks like a value trap
Following its recent slide, American Airlines stock trades for just seven times its projected 2023 earnings and less than four times its projected 2024 earnings. This might make it seem like a terrific bargain.
In reality, American Airlines stock is more likely to be a value trap. Perhaps demand will remain red-hot, enabling the company to recoup rising costs. But there are already signs that inflation is starting to pinch leisure travel budgets. Meanwhile, if the U.S. economy slips into recession, that will undoubtedly lead companies to rein in spending on business travel.
If demand falls short of expectations, American Airlines could struggle to return to consistent profitability over the next couple of years. Unfortunately, American has much less room for error than most of its peers, due to its colossal debt load. The company has $4.2 billion of debt maturing in 2023, $3.5 billion maturing in 2024, and a staggering $9.3 billion maturing in 2025.
For now, American Airlines has plenty of cash to cover near-term debt maturities. But if the company's earnings power doesn't recover soon, the airline giant could find itself in distress a couple of years down the road. As a result, American Airlines stock may look cheap now, but it could keep getting cheaper.
10 stocks we like better than American Airlines Group
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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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For much of last year, American Airlines (NASDAQ: AAL) shares seemed to defy gravity, despite the continuing impact of the COVID-19 pandemic on demand. Nevertheless, American Airlines stock spent much of last year above $20, putting its market cap roughly in line with pre-pandemic levels and its enterprise value at a multiyear high. If demand falls short of expectations, American Airlines could struggle to return to consistent profitability over the next couple of years.
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For much of last year, American Airlines (NASDAQ: AAL) shares seemed to defy gravity, despite the continuing impact of the COVID-19 pandemic on demand. American Airlines Market Cap and Enterprise Value, data by YCharts. High costs offset strong demand Last month, American Airlines raised its guidance for the second quarter.
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For much of last year, American Airlines (NASDAQ: AAL) shares seemed to defy gravity, despite the continuing impact of the COVID-19 pandemic on demand. In addition to permanent raises, the pilots will receive a 50% pay bump through August 2024 as American Airlines looks to address the attrition problem that is roiling the regional airline industry. American Airlines stock looks like a value trap Following its recent slide, American Airlines stock trades for just seven times its projected 2023 earnings and less than four times its projected 2024 earnings.
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For much of last year, American Airlines (NASDAQ: AAL) shares seemed to defy gravity, despite the continuing impact of the COVID-19 pandemic on demand. Indeed, American posted a pre-tax loss of $2.5 billion in 2021. High costs offset strong demand Last month, American Airlines raised its guidance for the second quarter.
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3434.0
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2022-07-05 00:00:00 UTC
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7 Cheap Blue-Chip Stocks Under $15 to Buy Now
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https://www.nasdaq.com/articles/7-cheap-blue-chip-stocks-under-%2415-to-buy-now
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Blue-chip stocks tend to have many positive characteristics. They are often industry leaders with proven, reliable business models. They also usually to deliver strong returns over the long term. And on top of that, they tend to pay dividends with regularly increasing payouts.
So, it isn’t difficult to imagine that stocks like that should command a premium. And that’s generally true.
That’s also what makes this list particularly interesting: The stocks listed here embody all of those characteristics. However, they’re also cheap, all trading below $15 at present — with several trading below $10.
7 Warren Buffett Stocks to Buy and Hold for the Next Decade
Today’s top blue-chip stock picks are:
F Ford $11.31
CCL Carnival $8.82
BASFY BASF $10.89
BCS Barclays $7.61
AAL American Airlines $13.13
AMCR Amcor $12.53
NWBI Northwest Bancshares $13.01
Ford (F)
Source: D K Grove / Shutterstock.com
Ford (NYSE:F) stock has a clear path ahead, though that path is heavily reliant upon a transition from the internal combustion vehicles it’s famous for to electric vehicles. And while it hasn’t had a strong start to 2022, the overall arc of the company remains positive. In fact, the 10-year annual return on F stock averaged 5.79% through the month of June. That means $1,000 invested 10 years ago would have grown to $1,755 today without the inclusion of dividends.
That dividend yields a respectable 3.6%.
But an investor buying Ford shares right now seeks returns greater than 5.79% moving forward. There’s good news and bad news on that front.
Ford is investing $3.7 billion to increase production of both gas vehicles and electric-powered vehicles. The goal is 2 million electric vehicles produced annually by 2026.
At the same time, Ford recently recalled around 49,000 Mustang Mach-E vehicles over a safety issue.
Nevertheless, greater EV production volumes should equate to greater valuations moving forward and thus higher returns.
Carnival (CCL)
Source: Flickr
I’ve generally been hesitant regarding Carnival (NYSE:CCL) stock over the last few months. The problems I see include the notion that inflation affects it worse than many other stocks.
It’s a fairly straightforward premise: The less valuable Americans’ dollars become, the less likely we are to splurge on luxuries including cruises like those Carnival offers.
The Federal Reserve is likely to raise rates by at least another 75 basis points in July. That’s only going to make the American consumer more worried about the risk of a recession. In turn, the American consumer is going to draw their purse strings even tighter, leading to less demand for CCL stock.
7 REITs to Buy for a Bear Market
I still believe all of that, but CCL stock isn’t going to fail. EPS figures are expected to turn positive in 2023. That should correlate with an upward surge in share prices. There will be volatility until then, but there’s a good chance the company will reinstate its dividend at that point, compounding growth in the process.
BASF (BASFY)
Source: nitpicker / Shutterstock
There are multiple catalysts and strong secular trends driving chemicals company BASF (OTCMKTS:BASFY) stock upward in the future.
Before jumping into those, note that BASF stock comes with a very respectable dividend yielding 8.3%. It has been reduced in the past, most recently in 2021, but it’s been in the same 80-to-90-cent range since 2016.
In other words, expect a strong dividend with any BASF purchase.
Fundamentally there’s a lot to like in the fact that sales grew by 19% in the most recent quarter. Net income decreased, but once supply chain disruptions are addressed BASF should be in a much better place.
It is one of the most important firms globally in terms of food production. That can’t be underestimated as global population rises and its important inputs in agricultural production increase in importance.
Barclays (BCS)
Source: chrisdorney / Shutterstock.com
Barclays (NYSE:BCS) stock lets you invest in a premier name in banking that has fallen on difficult times. That could be an opportunity for those willing to take a risk.
The primary benefit I see here relates to the firm’s dividend policy. Barclays U.S. division sold more structured debt notes than it was allowed per Securities and Exchange Commission (SEC) rules over a year period. As it stands now, it looks like it was a simple clerical error rather than anything done with nefarious intent.
Barclays will likely have to buy back the notes at a loss.
The news also caused the company to have to delay a share buyback until it concludes its investigation into what occurred.
The opportunity here lies in the fact that the firm’s semi-annual dividend payment has gone up and down over the last several years.
7 Growth Stocks to Buy for a Rich Retirement
Given that its payout ratio is a very low 17%, it is reasonable to guess that management may reward investors with a larger dividend once all is said and done.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
It’s fair to say that American Airlines (NASDAQ:AAL) has been the weakest performer among the major U.S. air carriers throughout the pandemic. So, it was difficult to recommend it over its peers in any realistic comparison.
But at the same time, its upside simply can’t be denied. AAL stock carries an average target price near $20. That implies well above 50% returns for what’s the biggest or second-biggest airline in the world depending on how you define it.
American Airlines is probably the biggest gamble on this list as well. History isn’t on its side as it has returned a paltry 0.95% annually over the past 10 years. In other words, $1000 invested in AAL stock a decade ago would be worth less than $1,100 today.
Put in those terms, this investment isn’t very persuasive. However, management sees profitability returning as soon as Q2. That will send prices upward quickly.
Amcor (AMCR)
Source: shutterstock.com/zedspider
Amcor (NYSE:AMCR) stock represents a company that produces packaging for consumer goods and healthcare products. The company currently pays a dividend yielding 3.8%. And per its most recent investor overview, it expects to provide shareholders with annual returns between 10% and 15% inclusive of EPS and the aforementioned dividend.
Essentially, Amcor is the company that fulfills the packaging needs of a who’s-who in the CPG industry. Chances are that you’ve touched its packaging at some point, thanks to its global reach. Sales growth is expected to reach 12.2% throughout 2022.
7 Dividend Stocks to Buy and Hold Forever
Amcor might not have a ton of upside built into target prices, but what it lacks there it makes up for in terms of its stability. AMCR stock carries a five-year beta of 0.34. Even when markets fluctuate wildly, Amcor performs steadily as consumers need goods that have been properly packaged no matter the economy.
Northwest Bancshares (NWBI)
Source: YummyBuum / Shutterstock
Northwest Bancshares (NASDAQ:NWBI) is a holding company under Northwest Bank. Northwest Bank was recently named among the world’s best banks in a Forbes survey which should lend some credibility to NWBI stock. In fact, Northwest Bank was ranked 25th best bank in the U.S. among the 75 U.S. banks that made the list.
There are two strong reasons to consider investing in NWBI shares. First, the stock has performed very well over the past 10 years with an annual return of 6.78%. That means money invested a decade ago would have nearly doubled by today without the inclusion of dividends.
That’s the other point: NWBI stock carries a dividend yielding 6.3%. If that were factored in, an investment in the company a decade ago would have easily doubled. And no worries — although 6.5% is a strong dividend, it hasn’t been reduced dating back to 1995.
On the date of publication, Alex Sirois 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 Cheap Blue-Chip Stocks Under $15 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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BCS Barclays $7.61 AAL American Airlines $13.13 AMCR Amcor $12.53 NWBI Northwest Bancshares $13.01 Ford (F) Source: D K Grove / Shutterstock.com Ford (NYSE:F) stock has a clear path ahead, though that path is heavily reliant upon a transition from the internal combustion vehicles it’s famous for to electric vehicles. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com It’s fair to say that American Airlines (NASDAQ:AAL) has been the weakest performer among the major U.S. air carriers throughout the pandemic. AAL stock carries an average target price near $20.
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BCS Barclays $7.61 AAL American Airlines $13.13 AMCR Amcor $12.53 NWBI Northwest Bancshares $13.01 Ford (F) Source: D K Grove / Shutterstock.com Ford (NYSE:F) stock has a clear path ahead, though that path is heavily reliant upon a transition from the internal combustion vehicles it’s famous for to electric vehicles. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com It’s fair to say that American Airlines (NASDAQ:AAL) has been the weakest performer among the major U.S. air carriers throughout the pandemic. AAL stock carries an average target price near $20.
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BCS Barclays $7.61 AAL American Airlines $13.13 AMCR Amcor $12.53 NWBI Northwest Bancshares $13.01 Ford (F) Source: D K Grove / Shutterstock.com Ford (NYSE:F) stock has a clear path ahead, though that path is heavily reliant upon a transition from the internal combustion vehicles it’s famous for to electric vehicles. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com It’s fair to say that American Airlines (NASDAQ:AAL) has been the weakest performer among the major U.S. air carriers throughout the pandemic. AAL stock carries an average target price near $20.
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BCS Barclays $7.61 AAL American Airlines $13.13 AMCR Amcor $12.53 NWBI Northwest Bancshares $13.01 Ford (F) Source: D K Grove / Shutterstock.com Ford (NYSE:F) stock has a clear path ahead, though that path is heavily reliant upon a transition from the internal combustion vehicles it’s famous for to electric vehicles. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com It’s fair to say that American Airlines (NASDAQ:AAL) has been the weakest performer among the major U.S. air carriers throughout the pandemic. AAL stock carries an average target price near $20.
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3435.0
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2022-07-05 00:00:00 UTC
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Top Stock Market News For Today July 5, 2022
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AAL
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https://www.nasdaq.com/articles/top-stock-market-news-for-today-july-5-2022
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Stock Market Futures Edge Lower Ahead Of Key Economic Data Releases
U.S. stock futures are on the decline in early morning trading on Tuesday this week. As investors return from their 4th of July celebrations, they are looking at another jam-packed week in the stock market. Overall, this would be thanks to two key pieces of economic data being released this week. To begin with, the Bureau of Labor Statistics will be reporting the nonfarm payrolls for June 2022. For now, the current consensus among Dow Jones economists is a 250,000 increase. While this would mark a deceleration from May’s 390,000 jobs added, it still represents commendable growth amidst mentions of recession.
Furthermore, as the Federal Reserve continues to tighten its economic policies, a slow down in employment would not be too surprising. This would be the case as both employers and the economy feel the pinch from rising costs. Another market mover to keep an eye out for is the Fed meeting minutes due Wednesday afternoon. The likes of which would be from the Fed’s June meeting where an interest rate hike of 0.75% took place.
Speaking about the current lineup of economic prints this week is Sam Stovall, the chief investment strategist at CFRA. He argues, “If the employment data is strong, and the Fed officials on paper sound as hawkish as they do verbally, I would think that would continue to put pressure on the market.” While taking all this in, here is how the major U.S. stock futures are doing now. As of 4:44 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading lower by 0.41%, 0.43, and 0.53% respectively.
Warren Buffett Loads Up On Another Round Of Occidental Petroleum Stock
Occidental Petroleum (NYSE: OXY) could once again be in the spotlight in the stock market now. Accordingly, this could stem from yet another share purchase from Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A). Simply put, Berkshire, through an SEC filing last week, revealed that it purchased an additional 9.9 million shares of Occidental Petroleum. According to the disclosure document, the cost of these shares is about $584 million at an average price of $58.98. Also, Berkshire’s transactions span from Wednesday through Friday last week. Overall, Buffett’s firm now owns 163.4 million Occidental shares.
In essence, Berkshire now owns a 17.4% stake in the oil company, further solidifying its position as the largest stakeholder. For those that have not been keeping up with Buffett’s interest in OXY stock, here’s a brief history. Starting in the first quarter of 2022, Berkshire’s total purchases of OXY stock add up to a total of about $7 billion. Over a two-week period, Buffett notes that his firm acquired a 14% stake in the company. Since then, Berkshire has and continues to grow its position in Occidental. Even after its latest purchase, the firm still has options to purchase another 83.9 million shares. Should it decide to do so, Berkshire would have a stake of over 25%. Safe to say, this would put OXY stock on investors’ radars in the stock market this week.
Source: TradingView
[Read More] 4 Top Dividend Stocks To Watch Amid Recession Concerns
Oil Futures Gain As Worker Strike In Norway Emerges And Growing Recession Risks Loom
Speaking of oil prices, Brent crude futures are gaining in the early hours today. In detail, Brent futures hit a high of $114.32 per barrel, marking a 0.7% or $0.82 increase. Notably, this is on top of a 2.4% jump on Monday. Among the possible reasons for this movement could be due to an ongoing strike in Norway. The strike, according to Reuters, is likely to impact oil and gas output, further tightening global supplies.
Meanwhile, U.S. West Texas Intermediate crude jumped by 2.4% to $111.01 a barrel since Friday’s close as well. Because of the 4th of July holiday, the settlement for West Texas Intermediate crude was not available on Monday. Regarding the strike in Norway, local offshore workers are initiating a strike as of earlier today. According to current estimates, the strike could cut oil and gas output in the region by 89,000 barrels of oil equivalent per day (boepd). From which gas output adds up to about 27,500 boepd.
Providing an overview of all this is SPI Asset Management’s head of trading and market strategy, Stephen Innes. He writes, “Oil is still struggling to break out from its current recessionary malaise as the market pivots away from inflation to economic despair.” As a result, some of the top oil stocks around could become more appealing to investors today.
Source: TradingView
[Read More] Top Stocks To Buy Now? 3 Oil Stocks In Focus
U.S. Flight Disruption On The Decline As Airlines Adapt Operations To Meet Growing Demand
In other news, airline operators such as Delta (NYSE: DAL) and American Airlines (NASDAQ: AAL), among other airline operators, seem to be adapting to shifting travel demands accordingly. Namely, according to data from flight-tracking platform FlightAware, U.S. airline delays are decreasing. To be precise, data from the 4th of July records 1,200 delays and 183 cancellations across U.S. flights. In fact, this is versus 4,700 delays and over 300 cancellations from the day before.
For one thing, the efforts from leading airlines like Delta and American continue to show results. To highlight, Delta customers had the option to change their flights outside of the peak July 1-4 period. For travelers willing to fly through July 8, they could do so without paying a difference in ticket prices. At the same time, American-owned Envoy Air is offering triple pay to pilots picking up extra shifts this month. Ideally, all this could build up investor anticipation for airline earnings reports later this month. As such, DAL stock and AAL stock could be among the key names to watch in the stock market this month.
Source: TradingView
[Read More] What Are The Best Stocks To Invest In? 4 Lithium Stocks To Know
Paramount’s Top Gun Cruising To The Top On Box Office Sales
In other news, Paramount’s (NASDAQ: PARAA) latest blockbuster movie Top Gun: Maverick (TGM) seems to be making waves at the box offices. On the whole, this is apparent as the company is now the top movie distributor in dollar terms for 2022 so far thanks to the movie. With Tom Cruise at the forefront of this nostalgia-inducing sequel, Paramount appears to be giving moviegoers what they want. Evidently, TGM is the only movie to cross $1 billion in domestic grosses in 2022. Additionally, the movie is also raking in revenue in international markets as well with gross ticket sales of over $1 billion worldwide. This marks a first for a Tom Cruise movie.
For the most part, Paramount would have the steady return of moviegoers worldwide to thank for this. Nevertheless, this remains an impressive feat seeing as it is competing with the likes of Disney (NYSE: DIS) and Sony (NYSE: SONY). With TGM marking the 8th movie from Paramount this year, the firm, according to industry estimates, has a 25.7% share of the film market. The main question now would be whether Paramount can maintain this performance in the second half of 2022. With all this in mind, it’s likely that PARAA stock would be in focus right now.
Source: TradingView
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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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Flight Disruption On The Decline As Airlines Adapt Operations To Meet Growing Demand In other news, airline operators such as Delta (NYSE: DAL) and American Airlines (NASDAQ: AAL), among other airline operators, seem to be adapting to shifting travel demands accordingly. As such, DAL stock and AAL stock could be among the key names to watch in the stock market this month. He argues, “If the employment data is strong, and the Fed officials on paper sound as hawkish as they do verbally, I would think that would continue to put pressure on the market.” While taking all this in, here is how the major U.S. stock futures are doing now.
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Flight Disruption On The Decline As Airlines Adapt Operations To Meet Growing Demand In other news, airline operators such as Delta (NYSE: DAL) and American Airlines (NASDAQ: AAL), among other airline operators, seem to be adapting to shifting travel demands accordingly. As such, DAL stock and AAL stock could be among the key names to watch in the stock market this month. Source: TradingView [Read More] 4 Top Dividend Stocks To Watch Amid Recession Concerns Oil Futures Gain As Worker Strike In Norway Emerges And Growing Recession Risks Loom Speaking of oil prices, Brent crude futures are gaining in the early hours today.
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Flight Disruption On The Decline As Airlines Adapt Operations To Meet Growing Demand In other news, airline operators such as Delta (NYSE: DAL) and American Airlines (NASDAQ: AAL), among other airline operators, seem to be adapting to shifting travel demands accordingly. As such, DAL stock and AAL stock could be among the key names to watch in the stock market this month. Stock Market Futures Edge Lower Ahead Of Key Economic Data Releases U.S. stock futures are on the decline in early morning trading on Tuesday this week.
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As such, DAL stock and AAL stock could be among the key names to watch in the stock market this month. Flight Disruption On The Decline As Airlines Adapt Operations To Meet Growing Demand In other news, airline operators such as Delta (NYSE: DAL) and American Airlines (NASDAQ: AAL), among other airline operators, seem to be adapting to shifting travel demands accordingly. Since then, Berkshire has and continues to grow its position in Occidental.
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3436.0
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2022-07-04 00:00:00 UTC
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Chile's copper production drops 2.5% in May
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AAL
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https://www.nasdaq.com/articles/chiles-copper-production-drops-2.5-in-may
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nan
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July 4 (Reuters) - Chile's total copper production fell 2.55% in May to reach 478,800 tonnes, government body Cochilco said on Monday.
Production from state-owned giant Codelco fell 6.3% on a year-on-year basis to 142,900 tonnes, while Collahuasi's production dipped 15.4% to a total of 49,000 tonnes.
Copper output from Escondida, which is controlled by Australian mining giant BHP BHP.AX, rose 26% to 106,900 tonnes, Cochilco said.
(Reporting by Peter Frontini Editing by Paul Simao)
((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;))
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 4 (Reuters) - Chile's total copper production fell 2.55% in May to reach 478,800 tonnes, government body Cochilco said on Monday. Copper output from Escondida, which is controlled by Australian mining giant BHP BHP.AX, rose 26% to 106,900 tonnes, Cochilco said. (Reporting by Peter Frontini Editing by Paul Simao) ((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;)) 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 4 (Reuters) - Chile's total copper production fell 2.55% in May to reach 478,800 tonnes, government body Cochilco said on Monday. Production from state-owned giant Codelco fell 6.3% on a year-on-year basis to 142,900 tonnes, while Collahuasi's production dipped 15.4% to a total of 49,000 tonnes. Copper output from Escondida, which is controlled by Australian mining giant BHP BHP.AX, rose 26% to 106,900 tonnes, Cochilco said.
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July 4 (Reuters) - Chile's total copper production fell 2.55% in May to reach 478,800 tonnes, government body Cochilco said on Monday. Production from state-owned giant Codelco fell 6.3% on a year-on-year basis to 142,900 tonnes, while Collahuasi's production dipped 15.4% to a total of 49,000 tonnes. (Reporting by Peter Frontini Editing by Paul Simao) ((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;)) 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 4 (Reuters) - Chile's total copper production fell 2.55% in May to reach 478,800 tonnes, government body Cochilco said on Monday. Production from state-owned giant Codelco fell 6.3% on a year-on-year basis to 142,900 tonnes, while Collahuasi's production dipped 15.4% to a total of 49,000 tonnes. Copper output from Escondida, which is controlled by Australian mining giant BHP BHP.AX, rose 26% to 106,900 tonnes, Cochilco said.
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3437.0
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2022-07-01 00:00:00 UTC
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Major U.S. airlines to let passengers book tickets with gender neutral option
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https://www.nasdaq.com/articles/major-u.s.-airlines-to-let-passengers-book-tickets-with-gender-neutral-option
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nan
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July 1 (Reuters) - Major U.S. airlines have agreed to update computer systems by the end of 2024 to allow travelers to purchase tickets with an X gender marker, an airline trade group confirmed on Friday.
Senator Ron Wyden, in a letter to Airlines for America that was seen by Reuters, said member airlines committed to the change after he had engaged with the group. A spokeswoman for the airline group confirmed that Wyden's letter was accurate.
Airlines for America represents Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and others.
(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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Airlines for America represents Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and others. July 1 (Reuters) - Major U.S. airlines have agreed to update computer systems by the end of 2024 to allow travelers to purchase tickets with an X gender marker, an airline trade group confirmed on Friday. A spokeswoman for the airline group confirmed that Wyden's letter was accurate.
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Airlines for America represents Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and others. July 1 (Reuters) - Major U.S. airlines have agreed to update computer systems by the end of 2024 to allow travelers to purchase tickets with an X gender marker, an airline trade group confirmed on Friday. Senator Ron Wyden, in a letter to Airlines for America that was seen by Reuters, said member airlines committed to the change after he had engaged with the group.
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Airlines for America represents Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and others. July 1 (Reuters) - Major U.S. airlines have agreed to update computer systems by the end of 2024 to allow travelers to purchase tickets with an X gender marker, an airline trade group confirmed on Friday. Senator Ron Wyden, in a letter to Airlines for America that was seen by Reuters, said member airlines committed to the change after he had engaged with the group.
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Airlines for America represents Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and others. July 1 (Reuters) - Major U.S. airlines have agreed to update computer systems by the end of 2024 to allow travelers to purchase tickets with an X gender marker, an airline trade group confirmed on Friday. Senator Ron Wyden, in a letter to Airlines for America that was seen by Reuters, said member airlines committed to the change after he had engaged with the group.
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2022-07-01 00:00:00 UTC
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Major U.S. airlines to allow gender-neutral option on ticket reservations
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AAL
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https://www.nasdaq.com/articles/major-u.s.-airlines-to-allow-gender-neutral-option-on-ticket-reservations
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By David Shepardson
July 1 (Reuters) - Major U.S. airlines have agreed to update computer systems by the end of 2024 to allow travelers to purchase tickets with an "X" gender marker, an airline trade group confirmed on Friday.
U.S. Senator Ron Wyden, in a letter to Airlines for America Chief Executive Nick Calio that was seen by Reuters, said member airlines committed to the change after he had engaged with the group. A spokeswoman for the airline group confirmed that Wyden's letter was accurate.
Airlines for America represents passenger carriers Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N, Alaska Airlines ALK.N, Hawaiian Airlines HA.O and JetBlue Airways JBLU.O.
In March, the Biden administration said Americans would be allowed to choose an "X" for gender on their passport applications and select their sex on Social Security cards.
"Nobody should have to misgender themselves in order to book a flight," Wyden wrote. "And, by forcing travelers to book their ticket with inaccurate gender information, airlines also end up providing inaccurate information to the Transportation Security Administration (TSA)."
Wyden's letter said "member airlines will publish a page on their websites detailing the specific steps that nonbinary individuals can take to obtain tickets that reflect their gender, such as working with a customer service representative who can manually update the gender marker on their ticket."
Wyden's letter noted that United and American Airlines "have already changed their booking process to allow travelers to book tickets with an X gender marker, but not all U.S. airlines have followed their example."
The State Department in June 2021 said U.S. citizens could select their gender on applications without having to submit medical documentation. In October, it issued the first American passport with an "X" gender marker.
The TSA in March said it would implement gender-neutral screening at its checkpoints with changes in imaging technology, reducing the number of pat-down screenings, removing gender identification from checkpoint screenings and updating TSA PreCheck to include an "X" gender marker on its application.
(Reporting by David Shepardson; Editing by Leslie Adler and Jonathan Oatis)
((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 represents passenger carriers Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N, Alaska Airlines ALK.N, Hawaiian Airlines HA.O and JetBlue Airways JBLU.O. In March, the Biden administration said Americans would be allowed to choose an "X" for gender on their passport applications and select their sex on Social Security cards. Wyden's letter said "member airlines will publish a page on their websites detailing the specific steps that nonbinary individuals can take to obtain tickets that reflect their gender, such as working with a customer service representative who can manually update the gender marker on their ticket."
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Airlines for America represents passenger carriers Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N, Alaska Airlines ALK.N, Hawaiian Airlines HA.O and JetBlue Airways JBLU.O. "And, by forcing travelers to book their ticket with inaccurate gender information, airlines also end up providing inaccurate information to the Transportation Security Administration (TSA)." Wyden's letter noted that United and American Airlines "have already changed their booking process to allow travelers to book tickets with an X gender marker, but not all U.S. airlines have followed their example."
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Airlines for America represents passenger carriers Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N, Alaska Airlines ALK.N, Hawaiian Airlines HA.O and JetBlue Airways JBLU.O. Wyden's letter said "member airlines will publish a page on their websites detailing the specific steps that nonbinary individuals can take to obtain tickets that reflect their gender, such as working with a customer service representative who can manually update the gender marker on their ticket." Wyden's letter noted that United and American Airlines "have already changed their booking process to allow travelers to book tickets with an X gender marker, but not all U.S. airlines have followed their example."
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Airlines for America represents passenger carriers Delta Air Lines DAL.N, United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N, Alaska Airlines ALK.N, Hawaiian Airlines HA.O and JetBlue Airways JBLU.O. Senator Ron Wyden, in a letter to Airlines for America Chief Executive Nick Calio that was seen by Reuters, said member airlines committed to the change after he had engaged with the group. In March, the Biden administration said Americans would be allowed to choose an "X" for gender on their passport applications and select their sex on Social Security cards.
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3439.0
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2022-07-01 00:00:00 UTC
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Millions hit the road for U.S. Fourth of July holiday
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AAL
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https://www.nasdaq.com/articles/millions-hit-the-road-for-u.s.-fourth-of-july-holiday
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nan
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nan
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By Doyinsola Oladipo and Gigi Zamora
NEW YORK, July 1 (Reuters) - The number of people traveling by car and airplane for the Fourth of July holiday is expected to climb near pre-pandemic levels, a test for U.S. airlines that have struggled with inadequate staffing and flight cancellations this summer.
The easing of COVID-19 restrictions and bottled-up travel demand are translating into the strongest summer since the pandemic for U.S. carriers.
But so far the season has been marred by chaos, with more than 20,000 flight cancellations as U.S. airlines struggle with pilot staffing shortages that have persisted since 2020.
AAA, an auto membership group, expects 47.9 million people will travel 50 miles or more from home over the holiday weekend spanning June 30 to July 4. That is up 3.7% over 2021 and close to pre-pandemic levels.
The bulk of U.S. travelers will be driving, but 3.55 million are expected to fly, AAA said.
Operations at New York-area airports were so far running relatively smoothly on Friday, with no major disruptions reported.
Airlines so far delayed 1,506 and canceled 238 flights to, from and within the U.S., according to tracking site FlightAware.
The weekend had a busy start. More than 2.4 million travelers on Thursday made their way through the U.S. Transportation Security Agency checkpoints, surpassing 2019 levels and 110% higher when compared to last year's TSA data.
Airlines have taken some measures to improve travel conditions this weekend. Delta Air Lines Inc DAL.N issued a travel waiver to allow passengers to re-book their flights scheduled this weekend free of charge.
Even so, staffing woes have made it tougher for the airline industry to ramp up its capacity. U.S. airlines have slashed 15% of their summer schedules, according to Airlines for America, a trade group.
Some travelers are choosing not to take any risks this weekend.
"In past years we have flown to Mount Rushmore for the Fourth of July but this year we’re just going to watch our hometown parade and fireworks and be thankful that we’re not stuck in an airport," said Missy Buchanan, 70, a resident of Rockwell, Texas.
(Reporting by Doyinsola Oladipo and Gigi Zamora; Editing by Anna Driver and Diane Craft)
((Doyinsola.Oladipo@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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AAA, an auto membership group, expects 47.9 million people will travel 50 miles or more from home over the holiday weekend spanning June 30 to July 4. More than 2.4 million travelers on Thursday made their way through the U.S. Transportation Security Agency checkpoints, surpassing 2019 levels and 110% higher when compared to last year's TSA data. Delta Air Lines Inc DAL.N issued a travel waiver to allow passengers to re-book their flights scheduled this weekend free of charge.
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By Doyinsola Oladipo and Gigi Zamora NEW YORK, July 1 (Reuters) - The number of people traveling by car and airplane for the Fourth of July holiday is expected to climb near pre-pandemic levels, a test for U.S. airlines that have struggled with inadequate staffing and flight cancellations this summer. AAA, an auto membership group, expects 47.9 million people will travel 50 miles or more from home over the holiday weekend spanning June 30 to July 4. (Reporting by Doyinsola Oladipo and Gigi Zamora; Editing by Anna Driver and Diane Craft) ((Doyinsola.Oladipo@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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By Doyinsola Oladipo and Gigi Zamora NEW YORK, July 1 (Reuters) - The number of people traveling by car and airplane for the Fourth of July holiday is expected to climb near pre-pandemic levels, a test for U.S. airlines that have struggled with inadequate staffing and flight cancellations this summer. AAA, an auto membership group, expects 47.9 million people will travel 50 miles or more from home over the holiday weekend spanning June 30 to July 4. Airlines have taken some measures to improve travel conditions this weekend.
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By Doyinsola Oladipo and Gigi Zamora NEW YORK, July 1 (Reuters) - The number of people traveling by car and airplane for the Fourth of July holiday is expected to climb near pre-pandemic levels, a test for U.S. airlines that have struggled with inadequate staffing and flight cancellations this summer. But so far the season has been marred by chaos, with more than 20,000 flight cancellations as U.S. airlines struggle with pilot staffing shortages that have persisted since 2020. Some travelers are choosing not to take any risks this weekend.
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3440.0
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2022-07-01 00:00:00 UTC
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American Airlines (AAL) Pilots Likely to Get Huge Pay Hike
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-pilots-likely-to-get-huge-pay-hike
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nan
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nan
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Labor trouble has emerged as a major sore point for the U.S. aviation industry of late. The pilot scarcity induced delays/cancellations of many flights, thereby disrupting air-travel that rebounded from the pandemic lows. Amid this problem, pilots at American Airlines AAL are likely to get a nearly 17% pay raise per CEO Robert Isom. The new proposal is reportedly made to the union representing the pilots, the Allied Pilots Association.
The proposal includes a pay hike of 6% on commencement of the contract followed by 5% raises at the start of 2023 and 2024. Moreover, if the deal gets ratified by Sep 30, this year, there are other lucrative incentives like retroactive pay. Due to pilot shortage, AAL, currently carrying a Zacks Rank #3 (Hold), recently decided to drop two regional routes from Sep 2022.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In view of this acute crisis, the proposal from the CEO is a very timely and welcoming one. AAL’s proposal comes close on the heels of United Airlines’ UAL pilots, represented by the Air Line Pilots Association, approving a tentative agreement on modified terms for their collective bargaining deal.
The provisional deal, which will now be put to vote, on successful ratification will make the pilots eligible for pay raises, totaling more than 14.5% within 18 months. The same is retroactive to the commencement of the current year. Apart from the increment, UAL pilots will get other benefits in the event of their deal materializing.
Coming back to the American Airlines story, the new offer is being reviewed by the Allied Pilots Association. Per Isom, “United put forth industry leading pay, and we matched that for our team”.
AAL and UAL apart, pilots of other U.S. airlines continue to protest against lack of remuneration and below-par working conditions. For example, pilots of Delta Air Lines DAL picketed at airports throughout the country on Jun 30.
The protests by Delta’s pilots erupted as talks between the union and DAL on a fresh contract were stalled. Pilots at DAL are still being covered under the collective labor agreement inked in 2016.
Watch this space for further updates on the issue of pilot crunch that gripped the U.S. airline industry.
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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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Due to pilot shortage, AAL, currently carrying a Zacks Rank #3 (Hold), recently decided to drop two regional routes from Sep 2022. Amid this problem, pilots at American Airlines AAL are likely to get a nearly 17% pay raise per CEO Robert Isom. AAL’s proposal comes close on the heels of United Airlines’ UAL pilots, represented by the Air Line Pilots Association, approving a tentative agreement on modified terms for their collective bargaining deal.
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AAL’s proposal comes close on the heels of United Airlines’ UAL pilots, represented by the Air Line Pilots Association, approving a tentative agreement on modified terms for their collective bargaining deal. Amid this problem, pilots at American Airlines AAL are likely to get a nearly 17% pay raise per CEO Robert Isom. Due to pilot shortage, AAL, currently carrying a Zacks Rank #3 (Hold), recently decided to drop two regional routes from Sep 2022.
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Amid this problem, pilots at American Airlines AAL are likely to get a nearly 17% pay raise per CEO Robert Isom. AAL’s proposal comes close on the heels of United Airlines’ UAL pilots, represented by the Air Line Pilots Association, approving a tentative agreement on modified terms for their collective bargaining deal. Due to pilot shortage, AAL, currently carrying a Zacks Rank #3 (Hold), recently decided to drop two regional routes from Sep 2022.
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Amid this problem, pilots at American Airlines AAL are likely to get a nearly 17% pay raise per CEO Robert Isom. AAL’s proposal comes close on the heels of United Airlines’ UAL pilots, represented by the Air Line Pilots Association, approving a tentative agreement on modified terms for their collective bargaining deal. Due to pilot shortage, AAL, currently carrying a Zacks Rank #3 (Hold), recently decided to drop two regional routes from Sep 2022.
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3441.0
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2022-07-01 00:00:00 UTC
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Chile plans to raise copper mining royalties and reform tax system
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AAL
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https://www.nasdaq.com/articles/chile-plans-to-raise-copper-mining-royalties-and-reform-tax-system-0
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nan
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Adds details from press release and press conference
SANTIAGO, July 1 (Reuters) - Chile's finance minister, Mario Marcel, on Friday introduced a tax reform bill that increases copper mining royalties on companies that produce more than 50,000 tonnes a year and raises taxes on high-income earners to fund the government's proposed social programs and reforms.
Chile is the world's top copper producer and is home to global copper giants like Codelco, BHP, Anglo American Glencore and Antofagasta.
"This means an increase in revenue from royalties, an increase in state participation in mining income," Marcel said. "But also ensuring the mining sector has enough income to encourage investment."
A press release from the treasury department says the plan has two components. One is an ad valorem tax between 1% and 2% for companies that produce between 50,000 and 200,000 tonnes of fine copper a year and a rate between 1% and 4% for those that produce more than 200,000.
The other component is a rate between 2% and 32% on profits for copper prices between $2 and $5. Both components vary based on the price of copper.
Smaller copper producers will continue with the current system, Marcel added.
The bill aims to raise 4.1% of GDP over four years, with 0.7% going to a new guaranteed minimum pension fund.
The proposal also raises taxes on high-income earners, capital gains and introduces a new wealth tax for citizens with more than $5 million in assets.
Marcel noted Chile, with a tax collection rate of 20.7% of GDP, is below the OECD median of 34.7%.
"Historically, few countries have reached economic prosperity with a low tax load," Marcel said, adding that 97 percent of taxpayers won't be affected by the proposal.
The bill also tries to reduce tax exemption and evasion while giving tax breaks for rent and care for children under 2 and the severely dependent.
(Reporting by Natalia Ramos and Alexander Villegas Editing by David Goodman)
((Alexander.Villegas@thomsonreuters.com; +56 9 9818 8538;))
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 press release and press conference SANTIAGO, July 1 (Reuters) - Chile's finance minister, Mario Marcel, on Friday introduced a tax reform bill that increases copper mining royalties on companies that produce more than 50,000 tonnes a year and raises taxes on high-income earners to fund the government's proposed social programs and reforms. The bill aims to raise 4.1% of GDP over four years, with 0.7% going to a new guaranteed minimum pension fund. "Historically, few countries have reached economic prosperity with a low tax load," Marcel said, adding that 97 percent of taxpayers won't be affected by the proposal.
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Adds details from press release and press conference SANTIAGO, July 1 (Reuters) - Chile's finance minister, Mario Marcel, on Friday introduced a tax reform bill that increases copper mining royalties on companies that produce more than 50,000 tonnes a year and raises taxes on high-income earners to fund the government's proposed social programs and reforms. One is an ad valorem tax between 1% and 2% for companies that produce between 50,000 and 200,000 tonnes of fine copper a year and a rate between 1% and 4% for those that produce more than 200,000. The proposal also raises taxes on high-income earners, capital gains and introduces a new wealth tax for citizens with more than $5 million in assets.
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Adds details from press release and press conference SANTIAGO, July 1 (Reuters) - Chile's finance minister, Mario Marcel, on Friday introduced a tax reform bill that increases copper mining royalties on companies that produce more than 50,000 tonnes a year and raises taxes on high-income earners to fund the government's proposed social programs and reforms. One is an ad valorem tax between 1% and 2% for companies that produce between 50,000 and 200,000 tonnes of fine copper a year and a rate between 1% and 4% for those that produce more than 200,000. The proposal also raises taxes on high-income earners, capital gains and introduces a new wealth tax for citizens with more than $5 million in assets.
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Adds details from press release and press conference SANTIAGO, July 1 (Reuters) - Chile's finance minister, Mario Marcel, on Friday introduced a tax reform bill that increases copper mining royalties on companies that produce more than 50,000 tonnes a year and raises taxes on high-income earners to fund the government's proposed social programs and reforms. One is an ad valorem tax between 1% and 2% for companies that produce between 50,000 and 200,000 tonnes of fine copper a year and a rate between 1% and 4% for those that produce more than 200,000. The other component is a rate between 2% and 32% on profits for copper prices between $2 and $5.
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3442.0
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2022-06-30 00:00:00 UTC
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Air Canada shares fall after carrier cuts domestic flight schedule
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AAL
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https://www.nasdaq.com/articles/air-canada-shares-fall-after-carrier-cuts-domestic-flight-schedule-0
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nan
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nan
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Adds comments from WestJet Airlines and Pearson Airport, context
June 30 (Reuters) - Shares of Air Canada AC.TO closed down 6% on Thursday after the carrier trimmed its domestic flight schedule this summer, as North American airlines wrestle with labor shortages, delays and cancellations as travel rebounds.
Canada's largest carrier said late on Wednesday it would cut its schedule to reduce passenger flows to manageable levels, while Delta Air Lines' DAL.N chief executive on Thursday apologized for flight cancellations that have disrupted travel plans.
Persistent staffing shortages, fewer flights and booming demand following a pandemic-induced slump have cast a shadow ahead of the busy U.S. July Fourth holiday weekend.
Airports in Canada and Europe are also wrestling with missing luggage as passengers shared pictures of luggage stranded beside baggage belts on social media.
Analysts and some industry executives don't see a meaningful improvement in conditions before fall, when travel demand tends to slow down.
"With the changes started yesterday we are reducing our schedule, on average, by 77 round trips (or 154 flights) per day in total for July and August. Prior to this, Air Canada operated on average about 1,000 flights a day," the airline said.
The Greater Toronto Airports Authority (GTAA), which manages Pearson International Airport, praised Air Canada's decision to scale back flights.
"In making this announcement, Air Canada is following the example of other major airlines worldwide, who have also recognized the need to adjust schedules," the GTAA said.
Shares of American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Delta were down between 1% and 3%, amid a fall in broader U.S. markets on worries that the U.S. Federal Reserve's determination to tame inflation would hamper global economic growth.
On Monday airlines canceled over 700 flights in the United States, after adverse weather conditions and staffing shortages limited operations.
Air Canada's smaller privately held rival, WestJet Airlines, said it already planned to operate 25% fewer flights than in the summer of 2019.
Luggage piles join long airport lines in fresh woes for summer travel
ANALYSIS-Flight delays, cancellations mar U.S. summer travel
Delta Air Lines CEO apologizes for flight disruptions
Airlines cancel over 700 U.S. flights as labor crunch, bad weather weigh
(Reporting by Nathan Gomes in Bengaluru and Allison Lampert in Montreal; Editing by Vinay Dwivedi and Jonathan Oatis)
((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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Shares of American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Delta were down between 1% and 3%, amid a fall in broader U.S. markets on worries that the U.S. Federal Reserve's determination to tame inflation would hamper global economic growth. Canada's largest carrier said late on Wednesday it would cut its schedule to reduce passenger flows to manageable levels, while Delta Air Lines' DAL.N chief executive on Thursday apologized for flight cancellations that have disrupted travel plans. Persistent staffing shortages, fewer flights and booming demand following a pandemic-induced slump have cast a shadow ahead of the busy U.S. July Fourth holiday weekend.
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Shares of American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Delta were down between 1% and 3%, amid a fall in broader U.S. markets on worries that the U.S. Federal Reserve's determination to tame inflation would hamper global economic growth. Adds comments from WestJet Airlines and Pearson Airport, context June 30 (Reuters) - Shares of Air Canada AC.TO closed down 6% on Thursday after the carrier trimmed its domestic flight schedule this summer, as North American airlines wrestle with labor shortages, delays and cancellations as travel rebounds. Canada's largest carrier said late on Wednesday it would cut its schedule to reduce passenger flows to manageable levels, while Delta Air Lines' DAL.N chief executive on Thursday apologized for flight cancellations that have disrupted travel plans.
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Shares of American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Delta were down between 1% and 3%, amid a fall in broader U.S. markets on worries that the U.S. Federal Reserve's determination to tame inflation would hamper global economic growth. Adds comments from WestJet Airlines and Pearson Airport, context June 30 (Reuters) - Shares of Air Canada AC.TO closed down 6% on Thursday after the carrier trimmed its domestic flight schedule this summer, as North American airlines wrestle with labor shortages, delays and cancellations as travel rebounds. Canada's largest carrier said late on Wednesday it would cut its schedule to reduce passenger flows to manageable levels, while Delta Air Lines' DAL.N chief executive on Thursday apologized for flight cancellations that have disrupted travel plans.
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Shares of American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Delta were down between 1% and 3%, amid a fall in broader U.S. markets on worries that the U.S. Federal Reserve's determination to tame inflation would hamper global economic growth. Adds comments from WestJet Airlines and Pearson Airport, context June 30 (Reuters) - Shares of Air Canada AC.TO closed down 6% on Thursday after the carrier trimmed its domestic flight schedule this summer, as North American airlines wrestle with labor shortages, delays and cancellations as travel rebounds. Prior to this, Air Canada operated on average about 1,000 flights a day," the airline said.
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3443.0
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2022-06-30 00:00:00 UTC
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Why Airlines Are Down Today, but Spirit Is Flying in the Opposite Direction
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AAL
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https://www.nasdaq.com/articles/why-airlines-are-down-today-but-spirit-is-flying-in-the-opposite-direction
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nan
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nan
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What happened
Stocks are under pressure on Thursday due to continued concerns about the impact of higher inflation rates on the economy, and airlines, as is typically the case, were down more than the broader markets. Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded down as much as 5%.
One notable exception is Spirit Airlines (NYSE: SAVE), the subject of a bidding war between two rival would-be buyers. Shares of Spirit climbed about 5% on new hope that a higher offer is under consideration.
So what
Airline stocks have been hit hard by inflation fears. The sector had hoped robust summer vacation demand would help lift it out of its pandemic-induced slump, but a combination of higher fuel and labor costs and an uncertain demand picture past August has instead put the stocks under pressure.
For now, there is more demand than the airlines can handle. The industry will likely cancel more than 1,500 domestic flights over the Fourth of July weekend to try to prevent system meltdowns as airports prepare to welcome passenger volumes unseen since pre-COVID days.
But most of those tickets were bought earlier in the year, before inflation spiked. The worry among investors now is that households that are suddenly facing higher prices for essential items like food and gas will defer nonessential purchases like airline tickets, causing demand to fall off in the second half of the year.
Airlines can ill afford a drop in leisure demand, as business and international travel has still not recovered to prepandemic levels.
Spirit, by contrast, is trading based on an update to the bidding war going on between JetBlue and Frontier Group Holdings (NASDAQ: ULCC). Spirit shareholders had been scheduled to vote today on a proposed merger with Frontier that is recommended by the Spirit board after the board dismissed a higher offer from JetBlue due to regulatory risk.
But late Wednesday, Spirit postponed the shareholder meeting until July 8 to give the board more time "to continue discussions with Frontier and JetBlue." The decision implies that either Spirit did not believe it had the votes to get the Frontier deal over the line or the board is either reconsidering its opposition to the JetBlue offer or at least trying to negotiate a higher price from Frontier.
Whatever the reasoning, investors are taking it as a sign the deal price could go up and are sending the shares higher.
Now what
Though the stocks are heading in opposite directions, the fate of Spirit Airlines is closely tied to the issues the other carriers face. The airlines are unsure about future demand and are therefore unsure about what their future outlook for organic growth will look like. Throw in a lack of available pilots and rising labor costs, and consolidation as a path for growth would seem to make a lot of sense.
The other thing that unites these two stories is uncertainty. Spirit still trades well below the $33.50-per-share cash price JetBlue is offering, reflecting continued doubt over whether the board will throw its support to JetBlue and face a prolonged regulatory review. But given the economic climate, a deal with Frontier is no regulatory slam dunk either, and Spirit is taking some risk in prolonging the process.
For the broader sector, Spirit included, there appears to be a lot more that can go wrong in the months to come in terms of demand than there is unexpected upside. That's putting pressure on all the carriers that are not subject to a takeover offer, and investors should expect that pressure to continue until there is more clarity about where the economy is heading.
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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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Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded down as much as 5%. What happened Stocks are under pressure on Thursday due to continued concerns about the impact of higher inflation rates on the economy, and airlines, as is typically the case, were down more than the broader markets. The industry will likely cancel more than 1,500 domestic flights over the Fourth of July weekend to try to prevent system meltdowns as airports prepare to welcome passenger volumes unseen since pre-COVID days.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded down as much as 5%. Spirit shareholders had been scheduled to vote today on a proposed merger with Frontier that is recommended by the Spirit board after the board dismissed a higher offer from JetBlue due to regulatory risk. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded down as much as 5%. Spirit shareholders had been scheduled to vote today on a proposed merger with Frontier that is recommended by the Spirit board after the board dismissed a higher offer from JetBlue due to regulatory risk. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded down as much as 5%. The sector had hoped robust summer vacation demand would help lift it out of its pandemic-induced slump, but a combination of higher fuel and labor costs and an uncertain demand picture past August has instead put the stocks under pressure. For now, there is more demand than the airlines can handle.
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3444.0
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2022-06-30 00:00:00 UTC
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Is WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) a Strong ETF Right Now?
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AAL
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https://www.nasdaq.com/articles/is-wisdomtree-international-hedged-quality-dividend-growth-etf-ihdg-a-strong-etf-right-25
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nan
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nan
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Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) is a smart beta exchange traded fund launched on 05/07/2014.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Wisdomtree, and has been able to amass over $1.11 billion, which makes it one of the larger ETFs in the Broad Developed World ETFs. IHDG, before fees and expenses, seeks to match the performance of the WisdomTree International Hedged Quality Dividend Growth Index.
The WisdomTree International Hedged Quality Dividend Growth Index is designed to provide exposure to the developed market companies while at the same time neutralizing exposure to fluctuations between the value of foreign currencies and the U.S. dollar.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.58% for IHDG, making it on par with most peer products in the space.
IHDG's 12-month trailing dividend yield is 4.63%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Anglo American Plc (AAL) accounts for about 5.86% of total assets, followed by Bhp Group Ltd (BHP) and Rio Tinto Plc (RIO).
The top 10 holdings account for about 42.21% of total assets under management.
Performance and Risk
So far this year, IHDG has lost about -15.66%, and is down about -10.71% in the last one year (as of 06/30/2022). During this past 52-week period, the fund has traded between $37.68 and $46.44.
The ETF has a beta of 0.70 and standard deviation of 20.39% for the trailing three-year period, making it a medium risk choice in the space. With about 241 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree International Hedged Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $21.90 billion in assets, Vanguard Dividend Appreciation ETF has $59.80 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree International Hedged Quality Dividend Growth ETF (IHDG): ETF Research Reports
BHP Group Limited Sponsored ADR (BHP): Free Stock Analysis Report
Rio Tinto PLC (RIO): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
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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Looking at individual holdings, Anglo American Plc (AAL) accounts for about 5.86% of total assets, followed by Bhp Group Ltd (BHP) and Rio Tinto Plc (RIO). American Airlines Group Inc. (AAL): Free Stock Analysis Report By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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Looking at individual holdings, Anglo American Plc (AAL) accounts for about 5.86% of total assets, followed by Bhp Group Ltd (BHP) and Rio Tinto Plc (RIO). American Airlines Group Inc. (AAL): Free Stock Analysis Report Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) is a smart beta exchange traded fund launched on 05/07/2014.
|
Looking at individual holdings, Anglo American Plc (AAL) accounts for about 5.86% of total assets, followed by Bhp Group Ltd (BHP) and Rio Tinto Plc (RIO). American Airlines Group Inc. (AAL): Free Stock Analysis Report Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) is a smart beta exchange traded fund launched on 05/07/2014.
|
Looking at individual holdings, Anglo American Plc (AAL) accounts for about 5.86% of total assets, followed by Bhp Group Ltd (BHP) and Rio Tinto Plc (RIO). American Airlines Group Inc. (AAL): Free Stock Analysis Report Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) is a smart beta exchange traded fund launched on 05/07/2014.
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3445.0
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2022-06-29 00:00:00 UTC
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Spirit Airlines again delays shareholder vote on Frontier deal
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-again-delays-shareholder-vote-on-frontier-deal
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, June 29 (Reuters) - Spirit Airlines Inc SAVE.N on Wednesday deferred a shareholder vote on Frontier Group Holdings Inc's ULCC.O merger offer for the budget carrier until next week.
Its shareholders had been scheduled to finalize their vote at a special meeting on Thursday. The Florida-based carrier said the meeting will now reconvene on July 8.
This was the second time Spirit has delayed the vote, suggesting it had not convinced enough shareholders to back the deal, which is being contested by JetBlue Airways Corp JBLU.O.
Spirit signed a cash-and-stock deal with rival Frontier in February to form a new no-frills airline and compete against big national carriers. In April, JetBlue jumped into the fray with an all cash offer.
Since then JetBlue and Frontier have waged a bidding war. JetBlue's bid is higher, but Spirit has said U.S. regulators would stop that deal. Frontier has expressed confidence the escalated price would not hurt its balance sheet.
"We have one of the cleanest balance sheets in the business," Frontier Chief Executive Barry Biffle told Reuters. "This is not going to make a material difference to our leverage."
A deal with Spirit would allow either bidder to create the fifth-largest U.S. airline and expand its domestic footprint at a time when the U.S. airline industry is dogged by labor and aircraft shortages.
Spirit has repeatedly rejected JetBlue's offer, citing the regulatory issues. Still, New York-based JetBlue has been urging Spirit shareholders to vote against the Frontier deal. Its campaign forced Spirit to defer the shareholder meeting, originally scheduled for June 10.
On Wednesday, Spirit said its board would engage with both the bidders about their offers.
Shareholder advisory firms Institutional Shareholder Services (ISS) and Glass Lewis have recommended voting for the Frontier deal, despite JetBlue's higher offer price.
If shareholders reject the Frontier deal, Spirit has said it intends to remain independent. JetBlue also plans to pursue organic growth if its bid fails.
"With or without Spirit, our future is bright and at the core of our business we have a strong organic plan that will help us win in this changing world," JetBlue Chief Executive Robin Hayes said in a letter to the airline's crewmembers.
REGULATORY HURDLES
Either proposed deal will likely face intense regulatory scrutiny. Spirit's concerns about JetBlue's offer stem in part from a U.S. Justice Department lawsuit over JetBlue's partnership with American Airlines AAL.O in the New York and Boston areas.
That partnership, announced in July 2020, allows the carriers to sell each other's flights and link frequent flyer programs, a move aimed at helping them compete with United Airlines UAL.O and Delta Air Lines DAL.N in the Northeast.
Spirit has criticized that partnership. Some see it as a potential witness for the Justice Department in the antitrust lawsuit that goes to trial in September.
JetBlue has shrugged off Spirit's antitrust concerns as an excuse, saying the Spirit Board has not acted in the best interests of its shareholders. It cited "significant" ties of multiple directors to Frontier's chairman and veteran budget airline investor Bill Franke. A former chairman of Spirit, Franke masterminded the Frontier-Spirit deal.
Frontier has dismissed JetBlue's allegations as "sore loser" talk.
"If we were so cozy, we wouldn't have to up the consideration and pay as much as we have," Biffle said.
(Reporting by Rajesh Kumar Singh; Editing by David Gregorio)
((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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Spirit's concerns about JetBlue's offer stem in part from a U.S. Justice Department lawsuit over JetBlue's partnership with American Airlines AAL.O in the New York and Boston areas. By Rajesh Kumar Singh CHICAGO, June 29 (Reuters) - Spirit Airlines Inc SAVE.N on Wednesday deferred a shareholder vote on Frontier Group Holdings Inc's ULCC.O merger offer for the budget carrier until next week. "With or without Spirit, our future is bright and at the core of our business we have a strong organic plan that will help us win in this changing world," JetBlue Chief Executive Robin Hayes said in a letter to the airline's crewmembers.
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Spirit's concerns about JetBlue's offer stem in part from a U.S. Justice Department lawsuit over JetBlue's partnership with American Airlines AAL.O in the New York and Boston areas. By Rajesh Kumar Singh CHICAGO, June 29 (Reuters) - Spirit Airlines Inc SAVE.N on Wednesday deferred a shareholder vote on Frontier Group Holdings Inc's ULCC.O merger offer for the budget carrier until next week. "We have one of the cleanest balance sheets in the business," Frontier Chief Executive Barry Biffle told Reuters.
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Spirit's concerns about JetBlue's offer stem in part from a U.S. Justice Department lawsuit over JetBlue's partnership with American Airlines AAL.O in the New York and Boston areas. By Rajesh Kumar Singh CHICAGO, June 29 (Reuters) - Spirit Airlines Inc SAVE.N on Wednesday deferred a shareholder vote on Frontier Group Holdings Inc's ULCC.O merger offer for the budget carrier until next week. Still, New York-based JetBlue has been urging Spirit shareholders to vote against the Frontier deal.
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Spirit's concerns about JetBlue's offer stem in part from a U.S. Justice Department lawsuit over JetBlue's partnership with American Airlines AAL.O in the New York and Boston areas. By Rajesh Kumar Singh CHICAGO, June 29 (Reuters) - Spirit Airlines Inc SAVE.N on Wednesday deferred a shareholder vote on Frontier Group Holdings Inc's ULCC.O merger offer for the budget carrier until next week. "We have one of the cleanest balance sheets in the business," Frontier Chief Executive Barry Biffle told Reuters.
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3446.0
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2022-06-29 00:00:00 UTC
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ANALYSIS-Flight delays, cancellations mar U.S. summer travel
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AAL
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https://www.nasdaq.com/articles/analysis-flight-delays-cancellations-mar-u.s.-summer-travel-0
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, June 29 (Reuters) - Persistent staffing shortages, fewer flights and booming demand have cast a shadow on the busy July Fourth holiday weekend and the entire summer travel season.
While the lifting of COVID-19 curbs and bottled-up travel demand are translating into the strongest summer since the pandemic for American carriers, frequent mass flight cancellations are creating chaos for their customers.
U.S. airlines have canceled more than 21,000 flights, or about 2.7% of the scheduled total since the Memorial Day holiday weekend in May, almost double last year's rate, according to flight-tracking service FlightAware. Flight delays are also higher than in 2021.
Analysts and some industry executives don't see a meaningful improvement before fall when travel demand tends to slow down.
On Tuesday, Delta Air Lines DAL.N warned of another round of disruptions during the July Fourth weekend when passenger traffic is projected to be the highest since before the pandemic. To mitigate the impact, it is allowing customers to rebook their trip for free.
The Atlanta-based carrier has canceled about 5% of its scheduled flights in the past two weeks due to staffing, weather and air traffic control (ATC) issues.
The industry's struggle to ensure operational reliability despite repeated assurances shows the issues, which hobbled air travel last summer, have yet to be fixed.
Carriers are still grappling with staffing shortages after letting go thousands of pilots at the height of the coronavirus pandemic in 2020.
Now, they have been aggressively hiring, with both Delta and United Airlines UAL.N, for example, hiring 200 pilots a month.
Still, some industry experts expect a pilot shortage for years because of limited training capacity.
"They have brought back people... but getting those people to be productive in the operation is a very difficult task," said aviation analyst Robert Mann. "You can't just bring somebody in off the street and put them to work. You have to train them."
Staffing woes have made it tougher for the industry to ramp up its capacity. U.S. airlines have slashed 15% of their summer schedules, according to Airlines for America, a trade group.
To be sure, this is not just a U.S. phenomenon. Airlines across the globe are battling a labor crisis, which is threatening to restrict post-pandemic recovery.
"Airlines are flying planes that they can staff, not necessarily the most profitable or most popular routes," said Peter McNally, Global Sector Lead for Industrials Materials and Energy at research firm Third Bridge.
LIMITED CAPACITY, LESS MARGIN
Meanwhile, air travel demand is surging despite growing risk of a U.S. economic recession. Passenger traffic in the United States has been averaging about 89% of the pre-pandemic levels since the Memorial Day holiday, according to Transportation Security Administration (TSA) data.
Airlines expect a further increase in the traffic this holiday weekend. United Airlines UAL.O estimates its passenger volumes to be at 94% of the 2019 level. Budget carrier Frontier ULCC.O expects to have the highest traffic in its history.
Robust demand and limited capacity are driving up both fares and airline revenue. But with most planes operating near full capacity, carriers have less margin to address flight disruptions.
Industry experts say the high summer travel season tends to be stressful for airline operations. But staff cuts at the height of the pandemic have made the problem "more acute", said aviation analyst Robert Mann.
BLAME GAME
American Airlines AAL.O said it has added 12,000 new employees in preparation for the summer travel rush. It is also operating fewer flights than last summer.
Yet, its cancellation rate is higher than last summer. The airline blames air traffic control and weather for its troubles.
"American's largest and busiest hubs have been affected, which has a ripple effect throughout our operation," a spokesperson for the airline said.
Frontier Airlines Chief Executive Barry Biffle also attributed flight delays and cancellations to inadequate ATC staffing and an increase in the Federal Aviation Administration's (FAA) ground-delay programs, which is used to regulate air traffic volume.
Biffle said there has been an up to ten-fold increase in the program compared to 2019.
In a letter to U.S. Transportation Secretary Pete Buttigieg last week, Airlines for America said ATC's staffing challenges are disrupting flights even in good weather. It asked the FAA to ensure adequate staffing and to reduce airspace closures.
The FAA said it has added alternate routes, placed more controllers in high demand areas, and increased data sharing. In order to avoid airspace closures, it said no space launches have been scheduled during the July Fourth holiday.
The agency, however, shot back at airlines for reducing headcount during the height of the pandemic.
"People expect when they buy an airline ticket that they'll get where they need to go safely, efficiently, reliably and affordably," the FAA said in a statement.
"After receiving $54 billion in pandemic relief to help save the airlines from mass layoffs and bankruptcy, the American people deserve to have their expectations met."
FACTBOX-U.S. airline disruptions create summer of travel chaos
(Reporting by Rajesh Kumar Singh; editing by Diane Craft)
((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.
|
American Airlines AAL.O said it has added 12,000 new employees in preparation for the summer travel rush. By Rajesh Kumar Singh CHICAGO, June 29 (Reuters) - Persistent staffing shortages, fewer flights and booming demand have cast a shadow on the busy July Fourth holiday weekend and the entire summer travel season. "Airlines are flying planes that they can staff, not necessarily the most profitable or most popular routes," said Peter McNally, Global Sector Lead for Industrials Materials and Energy at research firm Third Bridge.
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American Airlines AAL.O said it has added 12,000 new employees in preparation for the summer travel rush. Still, some industry experts expect a pilot shortage for years because of limited training capacity. Frontier Airlines Chief Executive Barry Biffle also attributed flight delays and cancellations to inadequate ATC staffing and an increase in the Federal Aviation Administration's (FAA) ground-delay programs, which is used to regulate air traffic volume.
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American Airlines AAL.O said it has added 12,000 new employees in preparation for the summer travel rush. By Rajesh Kumar Singh CHICAGO, June 29 (Reuters) - Persistent staffing shortages, fewer flights and booming demand have cast a shadow on the busy July Fourth holiday weekend and the entire summer travel season. While the lifting of COVID-19 curbs and bottled-up travel demand are translating into the strongest summer since the pandemic for American carriers, frequent mass flight cancellations are creating chaos for their customers.
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American Airlines AAL.O said it has added 12,000 new employees in preparation for the summer travel rush. Still, some industry experts expect a pilot shortage for years because of limited training capacity. Airlines expect a further increase in the traffic this holiday weekend.
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3447.0
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2022-06-29 00:00:00 UTC
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ANALYSIS-Flight delays, cancellations mar U.S. summer travel
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AAL
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https://www.nasdaq.com/articles/analysis-flight-delays-cancellations-mar-u.s.-summer-travel
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, June 29 (Reuters) - Persistent staffing shortages, fewer flights and booming demand have cast a shadow on the busy July Fourth holiday weekend and the entire summer travel season.
While the lifting of COVID-19 curbs and bottled-up travel demand are translating into the strongest summer since the pandemic for American carriers, frequent mass flight cancellations are creating chaos for their customers.
U.S. airlines have canceled more than 21,000 flights, or about 2.7% of the scheduled total since the Memorial Day holiday weekend in May, almost double last year's rate, according to flight-tracking service FlightAware. Flight delays are also higher than in 2021.
Analysts and some industry executives don't see a meaningful improvement before fall when travel demand tends to slow down.
On Tuesday, Delta Air Lines DAL.N warned of another round of disruptions during the July Fourth weekend when passenger traffic is projected to be the highest since before the pandemic. To mitigate the impact, it is allowing customers to rebook their trip for free.
The Atlanta-based carrier has canceled about 5% of its scheduled flights in the past two weeks due to staffing, weather and air traffic control (ATC) issues.
The industry's struggle to ensure operational reliability despite repeated assurances shows the issues, which hobbled air travel last summer, have yet to be fixed.
Carriers are still grappling with staffing shortages after letting go thousands of pilots at the height of the coronavirus pandemic in 2020.
Now, they have been aggressively hiring, with both Delta and United Airlines UAL.N, for example, hiring 200 pilots a month.
Still, some industry experts expect a pilot shortage for years because of limited training capacity.
"They have brought back people... but getting those people to be productive in the operation is a very difficult task," said aviation analyst Robert Mann. "You can't just bring somebody in off the street and put them to work. You have to train them."
Staffing woes have made it tougher for the industry to ramp up its capacity. U.S. airlines have slashed 15% of their summer schedules, according to Airlines for America, a trade group.
To be sure, this is not just a U.S. phenomenon. Airlines across the globe are battling a labor crisis, which is threatening to restrict post-pandemic recovery.
"Airlines are flying planes that they can staff, not necessarily the most profitable or most popular routes," said Peter McNally, Global Sector Lead for Industrials Materials and Energy at research firm Third Bridge.
LIMITED CAPACITY, LESS MARGIN
Meanwhile, air travel demand is surging despite growing risk of a U.S. economic recession. Passenger traffic in the United States has been averaging about 89% of the pre-pandemic levels since the Memorial Day holiday, according to Transportation Security Administration (TSA) data.
Airlines expect a further increase in the traffic this holiday weekend. United Airlines UAL.O estimates its passenger volumes to be at 94% of the 2019 level. Budget carrier Frontier ULCC.O expects to have the highest traffic in its history.
Robust demand and limited capacity are driving up both fares and airline revenue. But with most planes operating near full capacity, carriers have less margin to address flight disruptions.
Industry experts say the high summer travel season tends to be stressful for airline operations. But staff cuts at the height of the pandemic have made the problem "more acute", said aviation analyst Robert Mann.
BLAME GAME
American Airlines AAL.O said it has added 12,000 new employees in preparation for the summer travel rush. It is also operating fewer flights than last summer.
Yet, its cancellation rate is higher than last summer. The airline blames air traffic control and weather for its troubles.
"American's largest and busiest hubs have been affected, which has a ripple effect throughout our operation," a spokesperson for the airline said.
Frontier Airlines Chief Executive Barry Biffle also attributed flight delays and cancellations to inadequate ATC staffing and an increase in the Federal Aviation Administration's (FAA) ground-delay programs, which is used to regulate air traffic volume.
Biffle said there has been an up to ten-fold increase in the program compared to 2019.
In a letter to U.S. Transportation Secretary Pete Buttigieg last week, Airlines for America said ATC's staffing challenges are disrupting flights even in good weather. It asked the FAA to ensure adequate staffing and to reduce airspace closures.
The FAA said it has added alternate routes, placed more controllers in high demand areas, and increased data sharing. In order to avoid airspace closures, it said no space launches have been scheduled during the July Fourth holiday.
The agency, however, shot back at airlines for reducing headcount during the height of the pandemic.
"People expect when they buy an airline ticket that they'll get where they need to go safely, efficiently, reliably and affordably," the FAA said in a statement.
"After receiving $54 billion in pandemic relief to help save the airlines from mass layoffs and bankruptcy, the American people deserve to have their expectations met."
(Reporting by Rajesh Kumar Singh; editing by Diane Craft)
((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.
|
American Airlines AAL.O said it has added 12,000 new employees in preparation for the summer travel rush. By Rajesh Kumar Singh CHICAGO, June 29 (Reuters) - Persistent staffing shortages, fewer flights and booming demand have cast a shadow on the busy July Fourth holiday weekend and the entire summer travel season. "Airlines are flying planes that they can staff, not necessarily the most profitable or most popular routes," said Peter McNally, Global Sector Lead for Industrials Materials and Energy at research firm Third Bridge.
|
American Airlines AAL.O said it has added 12,000 new employees in preparation for the summer travel rush. The Atlanta-based carrier has canceled about 5% of its scheduled flights in the past two weeks due to staffing, weather and air traffic control (ATC) issues. Still, some industry experts expect a pilot shortage for years because of limited training capacity.
|
American Airlines AAL.O said it has added 12,000 new employees in preparation for the summer travel rush. By Rajesh Kumar Singh CHICAGO, June 29 (Reuters) - Persistent staffing shortages, fewer flights and booming demand have cast a shadow on the busy July Fourth holiday weekend and the entire summer travel season. While the lifting of COVID-19 curbs and bottled-up travel demand are translating into the strongest summer since the pandemic for American carriers, frequent mass flight cancellations are creating chaos for their customers.
|
American Airlines AAL.O said it has added 12,000 new employees in preparation for the summer travel rush. Still, some industry experts expect a pilot shortage for years because of limited training capacity. Airlines expect a further increase in the traffic this holiday weekend.
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3448.0
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2022-06-29 00:00:00 UTC
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De Beers, Botswana extend diamond sales deal by a year
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AAL
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https://www.nasdaq.com/articles/de-beers-botswana-extend-diamond-sales-deal-by-a-year
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nan
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nan
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Adds detail from statement
June 29 (Reuters) - De Beers Group said on Wednesday that it had agreed with the government of Botswana to extend by one year an agreement for the sale of rough diamonds from their joint venture, Debswana.
The 2011 rough diamond sales agreement in which the venture sells 75% of its output to De Beers was set to expire in 2020, but was extended for a year till last December and then again for six more months.
The Anglo American AAL.Lunit said in a statement that the parties had agreed to the one-year extension to enable the finalisation of discussions towards a new agreement.
Diamond sales account for a large share of Botswana's foreign currency earnings.
The extension of the agreement for the sale of Debswana's diamond output runs until June 30, 2023.
(Reporting by Bhargav Acharya and Aby Jose Koilparambil in Bengaluru Editing by Alexander Winning)
((Bhargav.Acharya@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 Anglo American AAL.Lunit said in a statement that the parties had agreed to the one-year extension to enable the finalisation of discussions towards a new agreement. Adds detail from statement June 29 (Reuters) - De Beers Group said on Wednesday that it had agreed with the government of Botswana to extend by one year an agreement for the sale of rough diamonds from their joint venture, Debswana. The 2011 rough diamond sales agreement in which the venture sells 75% of its output to De Beers was set to expire in 2020, but was extended for a year till last December and then again for six more months.
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The Anglo American AAL.Lunit said in a statement that the parties had agreed to the one-year extension to enable the finalisation of discussions towards a new agreement. Adds detail from statement June 29 (Reuters) - De Beers Group said on Wednesday that it had agreed with the government of Botswana to extend by one year an agreement for the sale of rough diamonds from their joint venture, Debswana. The 2011 rough diamond sales agreement in which the venture sells 75% of its output to De Beers was set to expire in 2020, but was extended for a year till last December and then again for six more months.
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The Anglo American AAL.Lunit said in a statement that the parties had agreed to the one-year extension to enable the finalisation of discussions towards a new agreement. Adds detail from statement June 29 (Reuters) - De Beers Group said on Wednesday that it had agreed with the government of Botswana to extend by one year an agreement for the sale of rough diamonds from their joint venture, Debswana. The 2011 rough diamond sales agreement in which the venture sells 75% of its output to De Beers was set to expire in 2020, but was extended for a year till last December and then again for six more months.
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The Anglo American AAL.Lunit said in a statement that the parties had agreed to the one-year extension to enable the finalisation of discussions towards a new agreement. Adds detail from statement June 29 (Reuters) - De Beers Group said on Wednesday that it had agreed with the government of Botswana to extend by one year an agreement for the sale of rough diamonds from their joint venture, Debswana. Diamond sales account for a large share of Botswana's foreign currency earnings.
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3449.0
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2022-06-28 00:00:00 UTC
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Why Airline Stocks Took Off This Morning
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-took-off-this-morning
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nan
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nan
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What happened
A pair of headlines gave airline stocks a lift on Tuesday morning, with shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all up between 5% and 7% soon after the open. The shares have lost altitude in the hours since, but as of the early afternoon remain in the green on a day when the broader markets are down.
So what
It's a tough day for stocks in general, but airlines are flying higher than most. The so-called "legacy" carriers -- United, American, and Delta -- are also the nation's primary international airlines, and pre-pandemic China was an important growth market for international traffic.
China has been largely shut down since the onset of the pandemic, but the country is gradually moving to reopen its travel market. Overnight, China reduced the quarantine time for inbound passengers from two weeks to seven days. While still more restrictive than most markets, it is viewed as a sign that the all-important transpacific market could reopen to U.S. carriers in the months to come.
JetBlue was up on a development in its effort to wrestle Spirit Airlines (NYSE: SAVE) from merger partner Frontier Group Holdings (NASDAQ: ULCC). On Monday, Spirit said it still favored Frontier's cash and stock offer over a rival offer from JetBlue. But after markets closed JetBlue once again sweetened its bid, giving Spirit shareholders a lot to think about ahead of a planned Thursday vote on the Frontier deal.
With airlines scrambling to find pilots, JetBlue sees mergers and acquisitions as its best path for growth in the years to come. Although airline mergers are fraught with regulatory and integration risk, investors have warmed to the idea of JetBlue acquiring Spirit and transforming the ultra-discount brand into JetBlue's more premium, and higher-margin, profile.
Now what
The airline rally faded as broader market losses deepened, and indeed neither of these headlines offer a lot of near-term good news for the airlines involved. The "big three" of United, American, and Delta would benefit from a return of the pre-COVID-19 world, where business travel to China boosted margins. But there are myriad reasons, from COVID to geopolitical tensions to shifts in global supply chains, to question how quickly, or if at all, that business will return.
For JetBlue, there is no easy route forward. A deal for Spirit still seems a long shot, given the reluctance of Spirit's board to engage and the serious questions about how a JetBlue/Spirit deal would be received in Washington, D.C. But JetBlue's near-term outlook absent a deal is anemic, and there are few other potential merger partners out there.
The airlines were hit hard by the pandemic, and investors have known for some time now that it would likely take years for the businesses to recover. High fuel prices and the threat of a recession have only further clouded the outlook. The industry is generally moving in the right direction, but it is moving very slowly. Investors would be wise to resist the temptation to buy in for now.
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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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What happened A pair of headlines gave airline stocks a lift on Tuesday morning, with shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all up between 5% and 7% soon after the open. JetBlue was up on a development in its effort to wrestle Spirit Airlines (NYSE: SAVE) from merger partner Frontier Group Holdings (NASDAQ: ULCC). But after markets closed JetBlue once again sweetened its bid, giving Spirit shareholders a lot to think about ahead of a planned Thursday vote on the Frontier deal.
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What happened A pair of headlines gave airline stocks a lift on Tuesday morning, with shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all up between 5% and 7% soon after the open. JetBlue was up on a development in its effort to wrestle Spirit Airlines (NYSE: SAVE) from merger partner Frontier Group Holdings (NASDAQ: ULCC). The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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What happened A pair of headlines gave airline stocks a lift on Tuesday morning, with shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all up between 5% and 7% soon after the open. Although airline mergers are fraught with regulatory and integration risk, investors have warmed to the idea of JetBlue acquiring Spirit and transforming the ultra-discount brand into JetBlue's more premium, and higher-margin, profile. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines.
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What happened A pair of headlines gave airline stocks a lift on Tuesday morning, with shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all up between 5% and 7% soon after the open. While still more restrictive than most markets, it is viewed as a sign that the all-important transpacific market could reopen to U.S. carriers in the months to come. The "big three" of United, American, and Delta would benefit from a return of the pre-COVID-19 world, where business travel to China boosted margins.
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3450.0
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2022-06-28 00:00:00 UTC
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Why Spirit Airlines is the Fairest of Them All
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AAL
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https://www.nasdaq.com/articles/why-spirit-airlines-is-the-fairest-of-them-all
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Spirit Airlines (NASDAQ:SAVE), the ugly duckling among airlines, and a punchline on late night comedy, is suddenly the belle of the industry ball.
Spirit is the only airline stock that is up for 2022, recently posting a gain of 9%. Every other airline has followed the market lower.
Spirit is attractive because rival Frontier Airlines (NASDAQ:ULCC) offered to buy it in February for stock then worth $3.3 billion. JetBlue (NASDAQ:JBLU) topped that with an all-cash offer of $3.6 billion. That offer has since sent JetBlue stock down more than 40%.
It’s all playing out against a backdrop of disruptions and cancellations that have consumers complaining and investors fleeing the sector.
Ticker Company Price
SAVE Spirit Airlines $22.75
Why Buy SAVE Stock?
Beyond its route system and valuable landing “slots,” Spirit is seen as a potential turnaround story. It’s worthwhile because it’s worth less, currently valued at 25% less than its annual revenue. Southwest Airlines (NYSE:LUV), which also began as a budget carrier, is now worth $21 billion on revenue of $16 billion.
There’s also the fact that even minimal improvement would bring Spirit into line with the other carriers. Over 5,000 formal complaints were lodged against U.S. airlines in April. Spirit led the pack, but larger American Airlines (NYSE:AAL) was right behind it. No one is covering themselves in glory.
7 Dividend Stocks to Buy and Hold Forever
It’s not too late for investors to get in on this action. Sprit’s market cap of $2.6 billion is still below both the Frontier and JetBlue offers. Frontier recently offered a $250 million “reverse breakup fee,” cash that will flow directly to Spirit if regulators reject the merger. (JetBlue has offered a $200 million fee.)
Spirit management wants shareholders to support the Frontier deal, although the meeting to approve it was postponed until June 30 after JetBlue sweetened its offer.
Airline Potential
Either merger would create the industry’s fifth-largest carrier. Consumer advocates fear this consolidation will lead to even-higher fares and even-lower standards for service.
Airlines long-ago replaced buses and trains as the primary method for travel. Fares have been rising as consumers lock-in post-pandemic plans, and the Ukraine war keeps fuel costs high.
The hope in airline stocks was always that, when travel levels returned to pre-pandemic levels, profits would flow. This hasn’t happened. Most airline stocks are still down 40% to 50% from where they were five years ago. Even with the recent tech wreck, the average Nasdaq stock is up 76% in that time.
But still, well-run airlines like Delta Airlines (NYSE:DAL) were recording 10% of their revenue as net income before the pandemic. Speculators believe that if the airlines can hire and train more staff, and if the government can get more air traffic controllers, those profitable days will return.
Despite Spirit’s continuing problems people are still booking flights on it, attracted by its low prices, willing to suffer extra fees for nearly any service. Slightly improved performance could bring big rewards.
The Bottom Line
My late mother liked to say that “if wishes were horses, beggars would ride.”
Investors may wish for better performance from airlines, but post-pandemic profit promises have not been kept.
With so many great companies selling for a fraction of their real value, it seems silly to speculate on a return to glory for the industry. Even a 25% gain on Spirit once either Frontier or JetBlue gets the go-ahead to buy seems modest.
Still, this is a gamble a young speculator can take. I doubt regulators would scuttle either deal. Five strong carriers make more sense than four strong ones and a few weak hands. If things work out, you should have a fat gain this time next year. The key word in that sentence is if.
On the date of publication, Dana Blankenhorn held no shares in any company mentioned in this story. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.
The post Why Spirit Airlines is the Fairest of Them All 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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Spirit led the pack, but larger American Airlines (NYSE:AAL) was right behind it. Spirit is attractive because rival Frontier Airlines (NASDAQ:ULCC) offered to buy it in February for stock then worth $3.3 billion. Frontier recently offered a $250 million “reverse breakup fee,” cash that will flow directly to Spirit if regulators reject the merger.
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Spirit led the pack, but larger American Airlines (NYSE:AAL) was right behind it. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Spirit Airlines (NASDAQ:SAVE), the ugly duckling among airlines, and a punchline on late night comedy, is suddenly the belle of the industry ball. Spirit is attractive because rival Frontier Airlines (NASDAQ:ULCC) offered to buy it in February for stock then worth $3.3 billion.
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Spirit led the pack, but larger American Airlines (NYSE:AAL) was right behind it. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Spirit Airlines (NASDAQ:SAVE), the ugly duckling among airlines, and a punchline on late night comedy, is suddenly the belle of the industry ball. Spirit is attractive because rival Frontier Airlines (NASDAQ:ULCC) offered to buy it in February for stock then worth $3.3 billion.
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Spirit led the pack, but larger American Airlines (NYSE:AAL) was right behind it. Spirit is the only airline stock that is up for 2022, recently posting a gain of 9%. Spirit is attractive because rival Frontier Airlines (NASDAQ:ULCC) offered to buy it in February for stock then worth $3.3 billion.
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3451.0
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2022-06-28 00:00:00 UTC
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US STOCKS-Futures rise as easing China COVID curbs lift travel, leisure stocks
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AAL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-as-easing-china-covid-curbs-lift-travel-leisure-stocks
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nan
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By Shreyashi Sanyal
June 28 (Reuters) - Travel and leisure shares propped up U.S. stock index futures after China relaxed some COVID-19 quarantine requirements for international travelers, raising hopes of a revival in global growth.
Airlines, cruises, casinos and hotels were among the gainers in premarket trading after China's slashing of the quarantine time for inbound travelers by half boosted hopes of a big jump in international travel and spending.
Shares of Walt Disney Inc DIS.N rose 2.5% to top the list of gainers on the Dow Jones Industrial Average .DJI, after the company's Shanghai Disney Resort said it would reopen the Disneyland theme park on June 30 after being shut for more than three months.
Spirit Airlines SAVE.N and American Airlines Group Inc AAL.O were the biggest gainers in the sector, rising 4% and 2% respectively.
Melco Resorts MLCO.O jumped 10% and led the rise in the casino sector, closely followed by Wynn Resorts WYNN.O, MGM Resorts International MGM.N.
Wall Street's main indexes started the week on soft footing after worries of surging inflation and an aggressive Federal Reserve dominated sentiment amid few market moving catalysts till the start of earnings season in two weeks.
Investors are now looking at data to determine whether the economy can withstand large interest rate hikes by the U.S. central bank to stamp out inflation.
A survey from the Conference Board is expected to show its consumer confidence index slipped to a reading of 100.4 in June, from 106.4 in May, at 10 a.m. ET.
The S&P 500 .SPX and the Nasdaq .IXIC are set to post losses in June and are on course to log two straight quarterly declines for the first time since 2015.
At 6:49 a.m. ET, Dow e-minis 1YMcv1 were up 175 points, or 0.56%, S&P 500 e-minis EScv1 were up 20 points, or 0.51%, and Nasdaq 100 e-minis NQcv1 were up 52.25 points, or 0.43%.
Nike Inc NKE.N shed 2.8% as it forecast first-quarter revenue below estimates on expectations of more discounts and pandemic-related disruptions in China, its most profitable market.
Occidental Petroleum Corp OXY.N climbed 3.1% after top investor Warren Buffett raised stake in the shale producer.
China ADRs also rose on Beijing easing its COVID curbs, with e-commerce firms Alibaba.com BABA.N, JD.com JD.O and Pinduoduo PDD.O up between 1.2% and 1.4%
(Reporting by Shreyashi Sanyal and Amruta Khandekar in Bengaluru; Editing by Anil D'Silva)
((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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Spirit Airlines SAVE.N and American Airlines Group Inc AAL.O were the biggest gainers in the sector, rising 4% and 2% respectively. Investors are now looking at data to determine whether the economy can withstand large interest rate hikes by the U.S. central bank to stamp out inflation. Nike Inc NKE.N shed 2.8% as it forecast first-quarter revenue below estimates on expectations of more discounts and pandemic-related disruptions in China, its most profitable market.
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Spirit Airlines SAVE.N and American Airlines Group Inc AAL.O were the biggest gainers in the sector, rising 4% and 2% respectively. By Shreyashi Sanyal June 28 (Reuters) - Travel and leisure shares propped up U.S. stock index futures after China relaxed some COVID-19 quarantine requirements for international travelers, raising hopes of a revival in global growth. Airlines, cruises, casinos and hotels were among the gainers in premarket trading after China's slashing of the quarantine time for inbound travelers by half boosted hopes of a big jump in international travel and spending.
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Spirit Airlines SAVE.N and American Airlines Group Inc AAL.O were the biggest gainers in the sector, rising 4% and 2% respectively. By Shreyashi Sanyal June 28 (Reuters) - Travel and leisure shares propped up U.S. stock index futures after China relaxed some COVID-19 quarantine requirements for international travelers, raising hopes of a revival in global growth. Airlines, cruises, casinos and hotels were among the gainers in premarket trading after China's slashing of the quarantine time for inbound travelers by half boosted hopes of a big jump in international travel and spending.
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Spirit Airlines SAVE.N and American Airlines Group Inc AAL.O were the biggest gainers in the sector, rising 4% and 2% respectively. Airlines, cruises, casinos and hotels were among the gainers in premarket trading after China's slashing of the quarantine time for inbound travelers by half boosted hopes of a big jump in international travel and spending. Melco Resorts MLCO.O jumped 10% and led the rise in the casino sector, closely followed by Wynn Resorts WYNN.O, MGM Resorts International MGM.N.
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3452.0
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2022-06-28 00:00:00 UTC
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Wall St to open higher as easing China COVID curbs lift travel, leisure stocks
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AAL
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https://www.nasdaq.com/articles/wall-st-to-open-higher-as-easing-china-covid-curbs-lift-travel-leisure-stocks
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nan
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nan
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By Shreyashi Sanyal and Amruta Khandekar
June 28 (Reuters) - Travel and leisure shares positioned U.S. stock indexes for a higher open on Tuesday after China relaxed some COVID-19 quarantine requirements for international travelers, raising hopes of a revival in global growth.
Airlines, cruises, casinos and hotels were among the gainers in premarket trading after China's slashing of the quarantine time for inbound travelers by half boosted hopes of a big jump in international travel and spending.
Shares of Walt Disney Inc DIS.N rose 1.7% to top the list of gainers on the Dow Jones Industrial Average .DJI, after the company's Shanghai Disney Resort said it would reopen the Disneyland theme park on June 30 after being shut for more than three months.
Spirit Airlines SAVE.N and American Airlines Group Inc AAL.O were the biggest gainers in the sector, rising 4.2% and 1.1% respectively.
Melco Resorts MLCO.O jumped 12.4% and led the rise in the casino sector, closely followed by Wynn Resorts WYNN.O and MGM Resorts International MGM.N.
Wall Street's main indexes started the week on soft footing after worries of surging inflation and an aggressive Federal Reserve dominated sentiment amid few market moving catalysts till the start of earnings season in two weeks.
Investors are now looking at data to determine whether the economy can withstand large interest rate hikes by the U.S. central bank to stamp out inflation.
"People are coming into the end of the quarter with a little bit more stability than they had certainly a month ago and have digested that the Fed may need to use recession as a policy tool," said David Waddell, chief executive officer at investment advisory firm Waddell & Associates.
"You also have a lot of position squaring, allocation and right sizing going into the end of the quarter, which create a little bit of uplift."
A survey from the Conference Board, due at 10 a.m. ET, is expected to show its consumer confidence index slipped to a reading of 100.4 in June, from 106.4 in May.
The S&P 500 .SPX and the Nasdaq .IXIC are set to post losses in June and are on course to log two straight quarterly declines for the first time since 2015.
At 8:29 a.m. ET, Dow e-minis 1YMcv1were up 95 points, or 0.3%, S&P 500 e-minis EScv1were up 9.25 points, or 0.24% and Nasdaq 100 e-minis NQcv1were up 13 points, or 0.11%.
Nike Inc NKE.N shed 2.8% as it forecast first-quarter revenue below estimates on expectations of more discounts and pandemic-related disruptions in China, its most profitable market.
Occidental Petroleum Corp OXY.N climbed 3.7% after Warren Buffett's Berkshire Hathaway Inc BRKa.N raised its stake in the shale producer.
(Reporting by Shreyashi Sanyal and Amruta Khandekar in Bengaluru; Editing by Anil D'Silva and Maju Samuel)
((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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Spirit Airlines SAVE.N and American Airlines Group Inc AAL.O were the biggest gainers in the sector, rising 4.2% and 1.1% respectively. Investors are now looking at data to determine whether the economy can withstand large interest rate hikes by the U.S. central bank to stamp out inflation. Nike Inc NKE.N shed 2.8% as it forecast first-quarter revenue below estimates on expectations of more discounts and pandemic-related disruptions in China, its most profitable market.
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Spirit Airlines SAVE.N and American Airlines Group Inc AAL.O were the biggest gainers in the sector, rising 4.2% and 1.1% respectively. By Shreyashi Sanyal and Amruta Khandekar June 28 (Reuters) - Travel and leisure shares positioned U.S. stock indexes for a higher open on Tuesday after China relaxed some COVID-19 quarantine requirements for international travelers, raising hopes of a revival in global growth. Airlines, cruises, casinos and hotels were among the gainers in premarket trading after China's slashing of the quarantine time for inbound travelers by half boosted hopes of a big jump in international travel and spending.
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Spirit Airlines SAVE.N and American Airlines Group Inc AAL.O were the biggest gainers in the sector, rising 4.2% and 1.1% respectively. By Shreyashi Sanyal and Amruta Khandekar June 28 (Reuters) - Travel and leisure shares positioned U.S. stock indexes for a higher open on Tuesday after China relaxed some COVID-19 quarantine requirements for international travelers, raising hopes of a revival in global growth. Airlines, cruises, casinos and hotels were among the gainers in premarket trading after China's slashing of the quarantine time for inbound travelers by half boosted hopes of a big jump in international travel and spending.
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Spirit Airlines SAVE.N and American Airlines Group Inc AAL.O were the biggest gainers in the sector, rising 4.2% and 1.1% respectively. By Shreyashi Sanyal and Amruta Khandekar June 28 (Reuters) - Travel and leisure shares positioned U.S. stock indexes for a higher open on Tuesday after China relaxed some COVID-19 quarantine requirements for international travelers, raising hopes of a revival in global growth. Airlines, cruises, casinos and hotels were among the gainers in premarket trading after China's slashing of the quarantine time for inbound travelers by half boosted hopes of a big jump in international travel and spending.
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3453.0
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2022-06-27 00:00:00 UTC
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Airlines cancel over 700 U.S. flights as labor crunch weighs
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AAL
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https://www.nasdaq.com/articles/airlines-cancel-over-700-u.s.-flights-as-labor-crunch-weighs
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nan
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nan
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Adds American Airlines statement, details, background
June 27 (Reuters) - Airlines canceled over 700 flights in the United States on Monday, as adverse weather and a shortage of staff hurt their ability to keep up with a surge in summer travel demand.
Total flight cancellations within, into, or out of the United States as of 11.45 a.m. ET were 728, as per flight-tracking website Flightaware.com. Nearly 860 flights were canceled on Sunday.
Delta Air Lines DAL.N had over 200 cancellations, United Airlines Holdings Inc UAL.O and Republic Airlines Inc faced 195 and 122 flight cancellations, respectively, while American Airlines Group Inc AAL.O canceled 61 flights as of Monday.
American Airlines said the cancellations were largely due to weather and air traffic control initiatives designed to regulate traffic.
Delta, United and Republic did not respond to Reuters requests for comment.
In Europe, recent airport snarls have been blamed on a shortage of employees, as many workers, who were laid off during the pandemic, desert airport work for flexible working practices and other occupations.
Even the U.S. regulator Federal Aviation Administration (FAA) faces staff shortages.
The FAA last week granted United approval to temporarily cut Newark flights after the Chicago-based carrier petitioned for a waiver, citing airport construction and air traffic control staffing.
Airlines for America, a trade group, said on Friday the FAA must ensure adequate air traffic control staffing to avoid further summer travel disruptions.
(Reporting by Nathan Gomes in Bengaluru)
((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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Delta Air Lines DAL.N had over 200 cancellations, United Airlines Holdings Inc UAL.O and Republic Airlines Inc faced 195 and 122 flight cancellations, respectively, while American Airlines Group Inc AAL.O canceled 61 flights as of Monday. Adds American Airlines statement, details, background June 27 (Reuters) - Airlines canceled over 700 flights in the United States on Monday, as adverse weather and a shortage of staff hurt their ability to keep up with a surge in summer travel demand. The FAA last week granted United approval to temporarily cut Newark flights after the Chicago-based carrier petitioned for a waiver, citing airport construction and air traffic control staffing.
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Delta Air Lines DAL.N had over 200 cancellations, United Airlines Holdings Inc UAL.O and Republic Airlines Inc faced 195 and 122 flight cancellations, respectively, while American Airlines Group Inc AAL.O canceled 61 flights as of Monday. Adds American Airlines statement, details, background June 27 (Reuters) - Airlines canceled over 700 flights in the United States on Monday, as adverse weather and a shortage of staff hurt their ability to keep up with a surge in summer travel demand. Airlines for America, a trade group, said on Friday the FAA must ensure adequate air traffic control staffing to avoid further summer travel disruptions.
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Delta Air Lines DAL.N had over 200 cancellations, United Airlines Holdings Inc UAL.O and Republic Airlines Inc faced 195 and 122 flight cancellations, respectively, while American Airlines Group Inc AAL.O canceled 61 flights as of Monday. Adds American Airlines statement, details, background June 27 (Reuters) - Airlines canceled over 700 flights in the United States on Monday, as adverse weather and a shortage of staff hurt their ability to keep up with a surge in summer travel demand. The FAA last week granted United approval to temporarily cut Newark flights after the Chicago-based carrier petitioned for a waiver, citing airport construction and air traffic control staffing.
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Delta Air Lines DAL.N had over 200 cancellations, United Airlines Holdings Inc UAL.O and Republic Airlines Inc faced 195 and 122 flight cancellations, respectively, while American Airlines Group Inc AAL.O canceled 61 flights as of Monday. Adds American Airlines statement, details, background June 27 (Reuters) - Airlines canceled over 700 flights in the United States on Monday, as adverse weather and a shortage of staff hurt their ability to keep up with a surge in summer travel demand. American Airlines said the cancellations were largely due to weather and air traffic control initiatives designed to regulate traffic.
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3454.0
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2022-06-27 00:00:00 UTC
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5 Stocks to Seek Refuge in Amid Current Market Bloodbath
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AAL
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https://www.nasdaq.com/articles/5-stocks-to-seek-refuge-in-amid-current-market-bloodbath
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nan
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nan
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Fears of a recession in the second half of 2022 have already rattled the U.S. markets. The pain of the pandemic is hitting investors hard with regular economic activities resuming normalcy and the fiscal and monetary sops drying up. Inflation is sky-high. U.S. consumer prices have escalated at the fastest pace in May 2022 since 1981 with the U.S. consumer price index rising 8.6% in the month.
To combat the four-decade high inflation, the Federal Reserve recently announced a 75-bps raise in interest rates (to the 1.50-1.75% range), the biggest interest-rate increase since 1994. Similar hikes in the remainder of the year are not ruled out.
Headwinds like rising energy and inflated food prices in addition to supply-chain disruptions are inducing extreme volatility as far as the stock market is concerned. The S&P 500, the teach-heavy Nasdaq and the Dow Jones Industrial Average have all declined in double-digits on a year-to-date basis.
However, this free fall of the U.S. stock markets does not mean that investors should dodge stocks. In fact, broker-friendly stocks like American Airlines AAL, PBF Energy PBF, McKesson Corporation MCK, Commercial Metals Company CMC and American Axle & Manufacturing Holdings AXL should be on investors’ watchlist.
Why Following Broker Advice Works Wonders?
Brokers have an in-depth understanding of stocks, great knowledge of the industry and a strong grasp over the broader economy. They scrutinize a company’s fundamentals and weight the same against the prevalent economic scenario to find out how attractive or creditworthy a stock is as an investment bet.
After thorough research work, brokers recommend (buy, sell or hold) a stock. Such well-researched information is not available to individual investors. So in the absence of proper guidance, they may select the wrong stocks for their portfolio. This might waste their hard-earned money, which they invested in the stock markets. To avoid such an unfortunate scenario, it is advisable for investors to be guided by brokers’ advice while deciding their course of action on a particular stock.
Formulating a Winning Portfolio
We designed a screener to zero in on stocks based on improving analyst recommendations and upward earnings estimate revisions over the last four weeks. However, considering only these factors does not make our strategy foolproof as the top line is not considered.
According to many market watchers, a top-line outperformance is more creditable for a company than a mere earnings outperformance. To address top-line concerns, we included the price/sales ratio in our screener, 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:
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 AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward. AAL currently carries a Zacks Rank #3 (Hold).
PBF Energy, based in Parsippany, NJ, is a leading refiner of crude. Through five oil refineries and associated infrastructure in the United States, PBF provides end products that comprise heating oil, transportation fuels, lubricants and many related products.
Over the past 60 days, the PBF stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 103.3% upward.The stock sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
McKesson Corporation is a healthcare services and information technology company, based in San Francisco, CA. McKesson is a major player in the pharmaceutical and medical supplies distribution market. The Distribution Solutions segment of MCK caters to a wide range of customers and businesses. It stands to benefit from increased generic utilization, inflation in generics caused by several patent expirations in the next few years, and an aging population.
McKesson carries a Zacks Rank #3, currently. Over the past 60 days, the MCK stock has seen the Zacks Consensus Estimate for current-year earnings being revised 2.6% upward.
Commercial Metals presently has a Zacks Rank of 1 and an expected earnings growth rate of 152.9% for the current fiscal year. The consensus estimate for CMC's current-quarter earnings has been revised 54.9% upward over the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the mark once. CMC has a trailing four-quarter earnings surprise of roughly 16%, on average. Shares of CMC have gained 19% in a year’s time.
American Axle is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market. AXL aims to become carbon neutral by 2040 and intends to strengthen the electric propulsion product portfolio, emphasizing more on e-Beam axles and next-generation 3-in-1 electric drive units. AXL is making considerable progress toward diversifying its business, products and customer base as well as creating a sustainable supply-chain system.
The Zacks Consensus Estimate for its current-year earnings has moved up 24.2% over the past 60 days. American Axle currently carries a Zacks Rank of 3.
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McKesson Corporation (MCK): Free Stock Analysis Report
American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report
Commercial Metals Company (CMC): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
PBF Energy Inc. (PBF): 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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In fact, broker-friendly stocks like American Airlines AAL, PBF Energy PBF, McKesson Corporation MCK, Commercial Metals Company CMC and American Axle & Manufacturing Holdings AXL should be on investors’ watchlist. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward.
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In fact, broker-friendly stocks like American Airlines AAL, PBF Energy PBF, McKesson Corporation MCK, Commercial Metals Company CMC and American Axle & Manufacturing Holdings AXL should be on investors’ watchlist. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward.
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In fact, broker-friendly stocks like American Airlines AAL, PBF Energy PBF, McKesson Corporation MCK, Commercial Metals Company CMC and American Axle & Manufacturing Holdings AXL should be on investors’ watchlist. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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In fact, broker-friendly stocks like American Airlines AAL, PBF Energy PBF, McKesson Corporation MCK, Commercial Metals Company CMC and American Axle & Manufacturing Holdings AXL should be on investors’ watchlist. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward.
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3455.0
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2022-06-27 00:00:00 UTC
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Airlines cancel nearly 700 U.S. flights as labor crunch weighs
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AAL
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https://www.nasdaq.com/articles/airlines-cancel-nearly-700-u.s.-flights-as-labor-crunch-weighs
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nan
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nan
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June 27 (Reuters) - Airlines canceled nearly 700 flights in the United States early Monday, as they struggled to keep up with a surge in summer travel demand due to a shortage of staff ranging from pilots to crew members.
Total flight cancellations within, into, or out of the United States as of 6.07 am ET were 669, as per flight-tracking website Flightaware.com. Nearly 860 flights were canceled on Sunday.
Delta Air Lines DAL.N, United Airlines Holdings Inc UAL.O and Republic Airlines Inc had over 100 cancellations each, while American Airlines Group Inc AAL.O canceled 51 flights as of early Monday.
The companies did not immediately respond to a request for comment.
In Europe, recent airport snarls have been blamed on a shortage of employees, as many workers, who were laid off during the pandemic, desert airport work for flexible working practices and other occupations.
Even the U.S. regulator Federal Aviation Administration (FAA) faces staff shortages.
The FAA last week granted United approval to temporarily cut Newark flights after the Chicago-based carrier petitioned for a waiver, citing airport construction and air traffic control staffing.
Airlines for America, a trade group, said on Friday the FAA must ensure adequate air traffic control staffing to avoid further summer travel disruptions.
(Reporting by Nathan Gomes in Bengaluru)
((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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Delta Air Lines DAL.N, United Airlines Holdings Inc UAL.O and Republic Airlines Inc had over 100 cancellations each, while American Airlines Group Inc AAL.O canceled 51 flights as of early Monday. June 27 (Reuters) - Airlines canceled nearly 700 flights in the United States early Monday, as they struggled to keep up with a surge in summer travel demand due to a shortage of staff ranging from pilots to crew members. The FAA last week granted United approval to temporarily cut Newark flights after the Chicago-based carrier petitioned for a waiver, citing airport construction and air traffic control staffing.
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Delta Air Lines DAL.N, United Airlines Holdings Inc UAL.O and Republic Airlines Inc had over 100 cancellations each, while American Airlines Group Inc AAL.O canceled 51 flights as of early Monday. June 27 (Reuters) - Airlines canceled nearly 700 flights in the United States early Monday, as they struggled to keep up with a surge in summer travel demand due to a shortage of staff ranging from pilots to crew members. Airlines for America, a trade group, said on Friday the FAA must ensure adequate air traffic control staffing to avoid further summer travel disruptions.
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Delta Air Lines DAL.N, United Airlines Holdings Inc UAL.O and Republic Airlines Inc had over 100 cancellations each, while American Airlines Group Inc AAL.O canceled 51 flights as of early Monday. June 27 (Reuters) - Airlines canceled nearly 700 flights in the United States early Monday, as they struggled to keep up with a surge in summer travel demand due to a shortage of staff ranging from pilots to crew members. The FAA last week granted United approval to temporarily cut Newark flights after the Chicago-based carrier petitioned for a waiver, citing airport construction and air traffic control staffing.
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Delta Air Lines DAL.N, United Airlines Holdings Inc UAL.O and Republic Airlines Inc had over 100 cancellations each, while American Airlines Group Inc AAL.O canceled 51 flights as of early Monday. June 27 (Reuters) - Airlines canceled nearly 700 flights in the United States early Monday, as they struggled to keep up with a surge in summer travel demand due to a shortage of staff ranging from pilots to crew members. Airlines for America, a trade group, said on Friday the FAA must ensure adequate air traffic control staffing to avoid further summer travel disruptions.
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3456.0
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2022-06-27 00:00:00 UTC
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Chile copper giant Codelco eyes green shift as environment pressure grows
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AAL
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https://www.nasdaq.com/articles/chile-copper-giant-codelco-eyes-green-shift-as-environment-pressure-grows
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nan
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nan
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By Fabian Cambero
SANTIAGO, June 27 (Reuters) - Chilean state-owned Codelco, the world's largest copper producer, will adjust its strategy to produce more sustainable copper and meet the Andean country's growing environmental demands, the chairman of the board Maximo Pacheco told Reuters in an interview in Santiago.
The mining firm is facing global clients and investors increasingly focused on environmental concerns while new leftist President Gabriel Boric has trained his focus on toughening regulation around water, glaciers and pollution.
"It is not only complying with the new regulations, but also having a true, sincere commitment to that environmental objective," said Pacheco, a former minister who was appointed chairman by Boric in March.
Pacheco, who sees the global electrification push holding up copper prices CMCU3over the long run despite a recent drop, said the firm’s priorities include recirculating water in tailings dams and shifting to renewable energy.
"No one consumes more electricity than us and we have to reach 2026 without electricity from fossil sources," Pacheco said.
The company hopes to reduce its emissions by two-thirds, lower particulate matter emitted by 25% and recycle more than half of its industrial waste by 2026.
The company recently closed its Ventanas smelter, located in a saturated industrial area of the central coast that's been the site of multiple pollution-related health incidents. The closure led to a brief strike by workers.
Increasing environmental regulations and pressure have also affected some of the company's partnerships. Anglo American's AAL.Lextended mining permit for its Los Bronces mine was rejected by the government earlier this year.
While Codelco is a partner in the Los Bronces mine, Pacheco said that Anglo American is responsible for guaranteeing the project complies with standards, obtains environmental permits and complies with regulations.
"It seems to me that it is part of what they have committed to and I hope they do it and do it well," Pacheco said.
Aside from strengthening regulations, a proposed new constitution that citizens will vote on in September could impact the company's future projects. A proposed law expanding protection for glaciers could impact Codelco's Andina mine, but Pacheco said the mine will "strictly" comply with any new regulations.
Pacheco said that some of the objectives will need additional investment in contracting services but did not quantify the magnitude of the necessary contributions.
Aside from regulations, Chile is also facing an ongoing water crisis due to an historic ongoing drought that's lasted more than a decade and has impacted copper output.
"We already have the desalination project in its final phase for the north," Pacheco said. "But the challenges of the water crisis cannot be solved with just this desalination plant."
Pacheco said the model needs to be replicated for parched mines in central Chile, adding that the company needs to more precisely define the investment needed to develop these desalination projects.
EXCLUSIVE-Copper giant Codelco sees 'very firm' copper price ahead despite recent drop - chairman
Chile's Codelco and workers reach agreement to end strike
(Reporting by Fabian Cambero; Editing by Alexander Villegas and Lisa Shumaker)
((Alexander.Villegas@thomsonreuters.com; +56 9 9818 8538;))
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's AAL.Lextended mining permit for its Los Bronces mine was rejected by the government earlier this year. Pacheco, who sees the global electrification push holding up copper prices CMCU3over the long run despite a recent drop, said the firm’s priorities include recirculating water in tailings dams and shifting to renewable energy. The company recently closed its Ventanas smelter, located in a saturated industrial area of the central coast that's been the site of multiple pollution-related health incidents.
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Anglo American's AAL.Lextended mining permit for its Los Bronces mine was rejected by the government earlier this year. While Codelco is a partner in the Los Bronces mine, Pacheco said that Anglo American is responsible for guaranteeing the project complies with standards, obtains environmental permits and complies with regulations. EXCLUSIVE-Copper giant Codelco sees 'very firm' copper price ahead despite recent drop - chairman Chile's Codelco and workers reach agreement to end strike (Reporting by Fabian Cambero; Editing by Alexander Villegas and Lisa Shumaker) ((Alexander.Villegas@thomsonreuters.com; +56 9 9818 8538;)) 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's AAL.Lextended mining permit for its Los Bronces mine was rejected by the government earlier this year. While Codelco is a partner in the Los Bronces mine, Pacheco said that Anglo American is responsible for guaranteeing the project complies with standards, obtains environmental permits and complies with regulations. A proposed law expanding protection for glaciers could impact Codelco's Andina mine, but Pacheco said the mine will "strictly" comply with any new regulations.
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Anglo American's AAL.Lextended mining permit for its Los Bronces mine was rejected by the government earlier this year. "It seems to me that it is part of what they have committed to and I hope they do it and do it well," Pacheco said. A proposed law expanding protection for glaciers could impact Codelco's Andina mine, but Pacheco said the mine will "strictly" comply with any new regulations.
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3457.0
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2022-06-27 00:00:00 UTC
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Flight Cancellations, Delays On The Rise In US
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AAL
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https://www.nasdaq.com/articles/flight-cancellations-delays-on-the-rise-in-us
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nan
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nan
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(RTTNews) - The U.S. air travel industry is going through its worst crisis since the troubled travel time during the peek pandemic struggles, with thousands of flights across the country being cancelled or getting delayed.
The aviation crisis, as millions are preparing to travel during the upcoming July 4th holiday weekend, is mainly attributed to the staffing issues at airlines, the Federal Aviation Administration or FAA, which manages the nation's airspace, as well as bad weather conditions, and increasing covid-19 cases among airline staff.
The issues are similar in Europe and other regions as travel demand was returning to its peak during the summer 2022 travel season, following two years of pandemic restrictions that caused airlines to report billions of losses due to worst demand.
According to the flight-tracking website FlightAware, at least 730 flights were canceled across the country on Sunday. Among major airlines, Delta Air Lines canceled at least 224 flights on Sunday, while United Airlines canceled 71 flights and American Airlines canceled 66 flights.
The cancellations on Saturday were 634 flights, including United Airlines' 56 flights, while Friday's cancellations were 711 flights. United reportedly had said last week that it would cut 12% of its daily domestic flights from its busy Newark hub, representing about 50 daily flights, starting in July.
CNN reported citing an Delta Air Lines spokesperson that compounding factors such as higher-than-planned unscheduled absences in some work groups, weather, and air traffic control constraints are also among the issues.
According to reports, Airlines for America, which represents the largest U.S. carriers, last week sought information about FAA's staffing plans for the July Fourth holiday weekend, in order to plan their operations accordingly.
The FAA as well as airlines are facing severe shortage of staff, and are rebuilding their structure for smooth operations amid the significant growth in travelers after the COVID-19 protocols were dispensed with recently.
During the pandemic travel restriction period, hundreds of thousands of aviation workers with years of experience across the world were laid off or terminated to tackle the worst demand.
Meanwhile, the FAA last week issued a notice inviting applications to hire the next generation of air traffic controllers. According to the agency, controllers will be handling an average of 45,000 flights a day and more than 5,000 aircraft traversing the skies at once during peak times.
Transportation Secretary Pete Buttigieg recently also urged airlines to hire more staff ahead of July Fourth holiday weekend, and threatened to punish carriers that fail to meet consumer-protection standards.
Earlier, during the Memorial Day holiday, which marks the traditional start of the summer travel season, U.S. Airlines had canceled more than 2,700 flights in a five-day stretch and thousands got delayed mainly due to thunderstorms in certain areas, along with air traffic control issues and increasing COVID-19 cases.
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 FAA as well as airlines are facing severe shortage of staff, and are rebuilding their structure for smooth operations amid the significant growth in travelers after the COVID-19 protocols were dispensed with recently. Transportation Secretary Pete Buttigieg recently also urged airlines to hire more staff ahead of July Fourth holiday weekend, and threatened to punish carriers that fail to meet consumer-protection standards. Earlier, during the Memorial Day holiday, which marks the traditional start of the summer travel season, U.S. Airlines had canceled more than 2,700 flights in a five-day stretch and thousands got delayed mainly due to thunderstorms in certain areas, along with air traffic control issues and increasing COVID-19 cases.
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The issues are similar in Europe and other regions as travel demand was returning to its peak during the summer 2022 travel season, following two years of pandemic restrictions that caused airlines to report billions of losses due to worst demand. Among major airlines, Delta Air Lines canceled at least 224 flights on Sunday, while United Airlines canceled 71 flights and American Airlines canceled 66 flights. According to reports, Airlines for America, which represents the largest U.S. carriers, last week sought information about FAA's staffing plans for the July Fourth holiday weekend, in order to plan their operations accordingly.
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Among major airlines, Delta Air Lines canceled at least 224 flights on Sunday, while United Airlines canceled 71 flights and American Airlines canceled 66 flights. The cancellations on Saturday were 634 flights, including United Airlines' 56 flights, while Friday's cancellations were 711 flights. Earlier, during the Memorial Day holiday, which marks the traditional start of the summer travel season, U.S. Airlines had canceled more than 2,700 flights in a five-day stretch and thousands got delayed mainly due to thunderstorms in certain areas, along with air traffic control issues and increasing COVID-19 cases.
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(RTTNews) - The U.S. air travel industry is going through its worst crisis since the troubled travel time during the peek pandemic struggles, with thousands of flights across the country being cancelled or getting delayed. Among major airlines, Delta Air Lines canceled at least 224 flights on Sunday, while United Airlines canceled 71 flights and American Airlines canceled 66 flights. Earlier, during the Memorial Day holiday, which marks the traditional start of the summer travel season, U.S. Airlines had canceled more than 2,700 flights in a five-day stretch and thousands got delayed mainly due to thunderstorms in certain areas, along with air traffic control issues and increasing COVID-19 cases.
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3458.0
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2022-06-24 00:00:00 UTC
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Why Delta, United, and American Airlines Surged Today
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AAL
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https://www.nasdaq.com/articles/why-delta-united-and-american-airlines-surged-today
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nan
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nan
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What happened
Shares of Delta (NYSE: DAL), United Airlines (NASDAQ: UAL), and American Airlines (NASDAQ: AAL) each surged on Friday, up 5.2%, 6.8%, and 7%, respectively, as of 3:02 p.m. ET.
There wasn't much in the way of company-specific news today, but virtually all economically sensitive stocks, like airlines, were surging higher today after recession fears had caused a big sell-off over the past week. But there may be more to this than just an oversold bounce, as some macroeconomic data showed inflation expectations may not be as bad as feared.
So what
Ever since the market got June inflation data, as well as results of the preliminary University of Michigan consumer-sentiment readings earlier this month, the market has taken another leg down. That's because the official Consumer Price Index (CPI) report showed higher-than-expected core inflation, and the University of Michigan survey showed inflation expectations over the next five years ticking up, possibly becoming "un-tethered" to the long-run targets set by the Federal Reserve.
This caused investors to panic that inflation was becoming more entrenched, which would mean the Federal Reserve might have to hike interest rates faster and cause a bigger slowdown or recession to get things under control. Recessions are never good for stocks like airlines, which depend on having capacity as full as possible in order to be profitable.
However, the Michigan consumer survey was just a preliminary report, and the final version came out today, showing long-run expectations of inflation at just 3.1%, down from the 3.3% reading in the preliminary results. Expectations for inflation for the upcoming year ahead was also revised down to 5.3% from the initial reading of 5.4%.
After markets sold off so much based on the preliminary survey earlier this month, the cyclical stocks that sold off especially hard rallied harder in response today, including airlines. Earlier this week, Citi analyst Stephen Trent published a note saying the sell-off in airlines had gone too far, reflecting fears over a 2008-to-2009-type financial downturn. Trent made the point that airline capacity is still below that of 2019, adding that airlines have more pricing power as people still wish to travel. While oil and labor issues are a concern, they could be relieved from current levels going forward.
On that note, the union representing United Airlines pilots approved a new contract negotiation today, settling on a 14% pay raise. There may also be some additional relief for United since this issue is now behind the company. Still, it was likely that macroeconomic data fueled today's rise, given the broad-based increases in airlines and cyclicals more broadly.
Image source: Getty Images.
Now what
I'm not the biggest fan of airline stocks as investments. In terms of cyclical stocks, both banks and semiconductor manufacturers seem more attractive since they have less debt, and banks may actually benefit from higher rates, while semiconductors seem set to grow over the long term due to increased automation and digitization. Remember, while airlines look quite cheap on a price-to-earnings (P/E) basis, they still have to work down the significant debt they took on during the pandemic. That will take a few years even if operating results remain robust.
That being said, there is a price at which even unattractive businesses like airlines become attractive. So, if you think the airlines have become cheap enough, they could be attractive trades as long as we don't have another 2008-like downturn or another global pandemic.
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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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What happened Shares of Delta (NYSE: DAL), United Airlines (NASDAQ: UAL), and American Airlines (NASDAQ: AAL) each surged on Friday, up 5.2%, 6.8%, and 7%, respectively, as of 3:02 p.m. That's because the official Consumer Price Index (CPI) report showed higher-than-expected core inflation, and the University of Michigan survey showed inflation expectations over the next five years ticking up, possibly becoming "un-tethered" to the long-run targets set by the Federal Reserve. Earlier this week, Citi analyst Stephen Trent published a note saying the sell-off in airlines had gone too far, reflecting fears over a 2008-to-2009-type financial downturn.
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What happened Shares of Delta (NYSE: DAL), United Airlines (NASDAQ: UAL), and American Airlines (NASDAQ: AAL) each surged on Friday, up 5.2%, 6.8%, and 7%, respectively, as of 3:02 p.m. There wasn't much in the way of company-specific news today, but virtually all economically sensitive stocks, like airlines, were surging higher today after recession fears had caused a big sell-off over the past week. So what Ever since the market got June inflation data, as well as results of the preliminary University of Michigan consumer-sentiment readings earlier this month, the market has taken another leg down.
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What happened Shares of Delta (NYSE: DAL), United Airlines (NASDAQ: UAL), and American Airlines (NASDAQ: AAL) each surged on Friday, up 5.2%, 6.8%, and 7%, respectively, as of 3:02 p.m. There wasn't much in the way of company-specific news today, but virtually all economically sensitive stocks, like airlines, were surging higher today after recession fears had caused a big sell-off over the past week. After markets sold off so much based on the preliminary survey earlier this month, the cyclical stocks that sold off especially hard rallied harder in response today, including airlines.
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What happened Shares of Delta (NYSE: DAL), United Airlines (NASDAQ: UAL), and American Airlines (NASDAQ: AAL) each surged on Friday, up 5.2%, 6.8%, and 7%, respectively, as of 3:02 p.m. Trent made the point that airline capacity is still below that of 2019, adding that airlines have more pricing power as people still wish to travel. So, if you think the airlines have become cheap enough, they could be attractive trades as long as we don't have another 2008-like downturn or another global pandemic.
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3459.0
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2022-06-24 00:00:00 UTC
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United Airlines pilot union votes to approve two-year pay deal
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AAL
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https://www.nasdaq.com/articles/united-airlines-pilot-union-votes-to-approve-two-year-pay-deal
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nan
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nan
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By Rajesh Kumar Singh and Nathan Gomes
June 24 (Reuters) - United Airlines UAL.O pilots will get more than 14% in pay raises in 18 months, and paid maternity leave under a new deal negotiated with the company, demonstrating the bargaining power aviators are enjoying in a short-staffed industry.
The two-year agreement, approved by union leaders on Friday, will now be sent out to members for ratification. Pilots will have until July 15 to vote on the deal.
The contract provides more than 14.5% cumulative pay increases and enhanced overtime and training pay, said the Air Line Pilots Association (ALPA), which represents over 14,000 pilots at the Chicago-based carrier. For the first time, the contract also includes eight weeks of paid maternity leave.
United is the first major U.S. airline that has reached an agreement with its pilots on new contract. It is widely expected to act as a benchmark for contract negotiations at other carriers.
Almost all the major carriers are facing protests from pilots demanding higher pay and improvements in "fatiguing" schedules in their new contracts.
Pilots at rival Delta Air Lines DAL.N plan to picket nationwide on June 30 over "stalled" contract negotiations. Similarly, pilots at Alaska Air Group Inc ALK.N have voted to authorize a strike if agreement on a new contract cannot be reached.
Airlines are grappling with staffing shortages after letting go thousands of pilots when people stopped flying during the depths of the coronavirus pandemic. As traveling picked up, staff shortages have forced several carriers to cut their summer schedules.
Shortages are even more acute at regional airlines, which face soaring attrition rates because of poaching by higher-paying national carriers.
To attract and retain talent, three regional carried owned by American Airlines AAL.O this month announced hefty pay increases for pilots. Piedmont Airlines, for example, increased pay for its pilots by as much as 87%.
(Reporting by Rajesh Kumar Singh in Chicago and Nathan Gomes in Bengaluru; Editing by Shinjini Ganguli, Devika Syamnath and David Gregorio)
((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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To attract and retain talent, three regional carried owned by American Airlines AAL.O this month announced hefty pay increases for pilots. By Rajesh Kumar Singh and Nathan Gomes June 24 (Reuters) - United Airlines UAL.O pilots will get more than 14% in pay raises in 18 months, and paid maternity leave under a new deal negotiated with the company, demonstrating the bargaining power aviators are enjoying in a short-staffed industry. Airlines are grappling with staffing shortages after letting go thousands of pilots when people stopped flying during the depths of the coronavirus pandemic.
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To attract and retain talent, three regional carried owned by American Airlines AAL.O this month announced hefty pay increases for pilots. By Rajesh Kumar Singh and Nathan Gomes June 24 (Reuters) - United Airlines UAL.O pilots will get more than 14% in pay raises in 18 months, and paid maternity leave under a new deal negotiated with the company, demonstrating the bargaining power aviators are enjoying in a short-staffed industry. For the first time, the contract also includes eight weeks of paid maternity leave.
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To attract and retain talent, three regional carried owned by American Airlines AAL.O this month announced hefty pay increases for pilots. By Rajesh Kumar Singh and Nathan Gomes June 24 (Reuters) - United Airlines UAL.O pilots will get more than 14% in pay raises in 18 months, and paid maternity leave under a new deal negotiated with the company, demonstrating the bargaining power aviators are enjoying in a short-staffed industry. The contract provides more than 14.5% cumulative pay increases and enhanced overtime and training pay, said the Air Line Pilots Association (ALPA), which represents over 14,000 pilots at the Chicago-based carrier.
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To attract and retain talent, three regional carried owned by American Airlines AAL.O this month announced hefty pay increases for pilots. By Rajesh Kumar Singh and Nathan Gomes June 24 (Reuters) - United Airlines UAL.O pilots will get more than 14% in pay raises in 18 months, and paid maternity leave under a new deal negotiated with the company, demonstrating the bargaining power aviators are enjoying in a short-staffed industry. The contract provides more than 14.5% cumulative pay increases and enhanced overtime and training pay, said the Air Line Pilots Association (ALPA), which represents over 14,000 pilots at the Chicago-based carrier.
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3460.0
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2022-06-23 00:00:00 UTC
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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-stock-sinks-as-market-gains%3A-what-you-should-know-0
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nan
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nan
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In the latest trading session, American Airlines (AAL) closed at $12.98, marking a -0.92% move from the previous day. This change lagged the S&P 500's 0.95% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.23%.
Coming into today, shares of the world's largest airline had lost 18.79% in the past month. In that same time, the Transportation sector lost 3.6%, while the S&P 500 lost 3.49%.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. On that day, American Airlines is projected to report earnings of $0.67 per share, which would represent year-over-year growth of 139.64%. Our most recent consensus estimate is calling for quarterly revenue of $13.08 billion, up 74.85% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.24 per share and revenue of $47.27 billion. These results would represent year-over-year changes of +85.2% and +58.18%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 9.38% lower. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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In the latest trading session, American Airlines (AAL) closed at $12.98, marking a -0.92% move from the previous day. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.24 per share and revenue of $47.27 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 -$1.24 per share and revenue of $47.27 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report In the latest trading session, American Airlines (AAL) closed at $12.98, marking a -0.92% move from the previous day.
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In the latest trading session, American Airlines (AAL) closed at $12.98, marking a -0.92% move from the previous day. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.24 per share and revenue of $47.27 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report In the latest trading session, American Airlines (AAL) closed at $12.98, marking a -0.92% move from the previous day. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.24 per share and revenue of $47.27 billion.
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3461.0
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2022-06-23 00:00:00 UTC
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Interesting AAL Put And Call Options For August 5th
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-august-5th
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the August 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 5th contracts and identified one put and one call contract of particular interest.
The put contract at the $12.00 strike price has a current bid of 89 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $12.00, but will also collect the premium, putting the cost basis of the shares at $11.11 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $12.77/share today.
Because the $12.00 strike represents an approximate 6% 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 7.42% return on the cash commitment, or 62.96% 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 $12.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $14.00 strike price has a current bid of 73 cents. If an investor was to purchase shares of AAL stock at the current price level of $12.77/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $14.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 15.35% if the stock gets called away at the August 5th 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 $14.00 strike highlighted in red:
Considering the fact that the $14.00 strike represents an approximate 10% 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 5.72% boost of extra return to the investor, or 48.52% 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 $12.77) 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 $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 10% 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 become available today, for the August 5th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 10% 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 become available today, for the August 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 5th 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 $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 10% 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 become available today, for the August 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 5th 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 $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 10% 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 become available today, for the August 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 5th contracts and identified one put and one call contract of particular interest.
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3462.0
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2022-06-22 00:00:00 UTC
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Australian state's coal royalty hike could nudge others to follow suit - analysts
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AAL
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https://www.nasdaq.com/articles/australian-states-coal-royalty-hike-could-nudge-others-to-follow-suit-analysts-0
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nan
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By Harish Sridharan
June 22 (Reuters) - Queensland's bigger-than-expected hike in coal royalties could embolden other Australian states and resources-heavy countries around the world to make similar moves, analysts warned on Wednesday.
Australia's second-largest state, which aims to deliver a budget surplus by 2024-25, said on Tuesday it would increase royalties on coal production after a 10-year freeze, to capture windfall profit from rocketing coal prices.
The move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N.
"We had expected QLD (Queensland) to increase royalties but the magnitude of the increase & the lack of consultation with the mining industry in our opinion sets a concerning precedent, especially when many governments are looking to balance budgets post-COVID," analysts at UBS said in a note.
Resources lobbies in Queensland slammed the move, saying it would compound the tax burden on coal producers who already pay double the royalty rate in Australia's other major coal-producing state, New South Wales (NSW).
"The cost of doing business in Queensland is already high, and further cost pressures will discourage investment, operational growth, job creation and local business spending," Edgar Basto, President Minerals Australia at BHP, said in an emailed statement to Reuters.
While NSW left its rate unchanged, analysts said they would be keeping an eye out for the Commonwealth Budget in October to see if there were any plans to lift rates for iron ore or other miners, considering the boom most commodities saw recently in the wake of the Russia-Ukraine conflict.
"While NSW did not follow the Queensland government's decision to hike royalties, record high commodity prices and ongoing budget deficits could pressure other governments to raise mining taxes," Australian brokerage firm Barrenjoey said.
UBS also flagged the risk of other mining countries like Chile, Peru, Canada and Zambia raising taxes over the next two years after Queensland's move.
Chile, a major copper producer, is already set to push forward its tax reform plans that include a bill on mining royalties, while Indonesia announced plans of raising royalty tariffs on tin production earlier this week.
(Reporting by Harish Sridharan and Sameer Manekar in Bengaluru; Editing by Subhranshu Sahu)
((Harish.Sridharan@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 move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N. By Harish Sridharan June 22 (Reuters) - Queensland's bigger-than-expected hike in coal royalties could embolden other Australian states and resources-heavy countries around the world to make similar moves, analysts warned on Wednesday. Resources lobbies in Queensland slammed the move, saying it would compound the tax burden on coal producers who already pay double the royalty rate in Australia's other major coal-producing state, New South Wales (NSW).
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The move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N. By Harish Sridharan June 22 (Reuters) - Queensland's bigger-than-expected hike in coal royalties could embolden other Australian states and resources-heavy countries around the world to make similar moves, analysts warned on Wednesday. "While NSW did not follow the Queensland government's decision to hike royalties, record high commodity prices and ongoing budget deficits could pressure other governments to raise mining taxes," Australian brokerage firm Barrenjoey said.
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The move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N. "We had expected QLD (Queensland) to increase royalties but the magnitude of the increase & the lack of consultation with the mining industry in our opinion sets a concerning precedent, especially when many governments are looking to balance budgets post-COVID," analysts at UBS said in a note. Resources lobbies in Queensland slammed the move, saying it would compound the tax burden on coal producers who already pay double the royalty rate in Australia's other major coal-producing state, New South Wales (NSW).
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The move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N. By Harish Sridharan June 22 (Reuters) - Queensland's bigger-than-expected hike in coal royalties could embolden other Australian states and resources-heavy countries around the world to make similar moves, analysts warned on Wednesday. "We had expected QLD (Queensland) to increase royalties but the magnitude of the increase & the lack of consultation with the mining industry in our opinion sets a concerning precedent, especially when many governments are looking to balance budgets post-COVID," analysts at UBS said in a note.
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3463.0
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2022-06-22 00:00:00 UTC
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Australian state's coal royalty hike could nudge others to follow suit - analysts
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AAL
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https://www.nasdaq.com/articles/australian-states-coal-royalty-hike-could-nudge-others-to-follow-suit-analysts
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nan
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nan
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By Harish Sridharan
June 22 (Reuters) - Queensland's bigger-than-expected hike in coal royalties could embolden other Australian states and resources-heavy countries around the world to make similar moves, analysts warned on Wednesday.
Australia's second-largest state, which aims to deliver a budget surplus by 2024-25, said on Tuesday it would increase royalties on coal production after a 10-year freeze, to capture windfall profit from rocketing coal prices.
The move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N.
"We had expected QLD (Queensland) to increase royalties but the magnitude of the increase & the lack of consultation with the mining industry in our opinion sets a concerning precedent, especially when many governments are looking to balance budgets post-COVID," analysts at UBS said in a note.
Resources lobbies in Queensland slammed the move, saying it would compound the tax burden on coal producers who already pay double the royalty rate in Australia's other major coal-producing state, New South Wales (NSW).
While NSW left its rate unchanged, analysts said they would be keeping an eye out for the Commonwealth Budget in October to see if there were any plans to lift rates for iron ore or other miners, considering the boom most commodities saw recently in the wake of the Russia-Ukraine conflict.
"While NSW did not follow the Queensland government's decision to hike royalties, record high commodity prices and ongoing budget deficits could pressure other governments to raise mining taxes," Australian brokerage firm Barrenjoey said.
UBS also flagged the risk of other mining countries like Chile, Peru, Canada and Zambia raising taxes over the next two years after Queensland's move.
Chile, a major copper producer, is already set to push forward its tax reform plans that include a bill on mining royalties, while Indonesia announced plans of raising royalty tariffs on tin production earlier this week.
(Reporting by Harish Sridharan in Bengaluru; Editing by Subhranshu Sahu)
((Harish.Sridharan@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 move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N. By Harish Sridharan June 22 (Reuters) - Queensland's bigger-than-expected hike in coal royalties could embolden other Australian states and resources-heavy countries around the world to make similar moves, analysts warned on Wednesday. Resources lobbies in Queensland slammed the move, saying it would compound the tax burden on coal producers who already pay double the royalty rate in Australia's other major coal-producing state, New South Wales (NSW).
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The move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N. By Harish Sridharan June 22 (Reuters) - Queensland's bigger-than-expected hike in coal royalties could embolden other Australian states and resources-heavy countries around the world to make similar moves, analysts warned on Wednesday. Australia's second-largest state, which aims to deliver a budget surplus by 2024-25, said on Tuesday it would increase royalties on coal production after a 10-year freeze, to capture windfall profit from rocketing coal prices.
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The move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N. "We had expected QLD (Queensland) to increase royalties but the magnitude of the increase & the lack of consultation with the mining industry in our opinion sets a concerning precedent, especially when many governments are looking to balance budgets post-COVID," analysts at UBS said in a note. "While NSW did not follow the Queensland government's decision to hike royalties, record high commodity prices and ongoing budget deficits could pressure other governments to raise mining taxes," Australian brokerage firm Barrenjoey said.
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The move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N. By Harish Sridharan June 22 (Reuters) - Queensland's bigger-than-expected hike in coal royalties could embolden other Australian states and resources-heavy countries around the world to make similar moves, analysts warned on Wednesday. Australia's second-largest state, which aims to deliver a budget surplus by 2024-25, said on Tuesday it would increase royalties on coal production after a 10-year freeze, to capture windfall profit from rocketing coal prices.
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3464.0
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2022-06-21 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-1
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nan
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American Airlines (AAL) closed the most recent trading day at $13.04, moving +0.77% from the previous trading session. This change lagged the S&P 500's 2.45% gain on the day. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.18%.
Prior to today's trading, shares of the world's largest airline had lost 22.75% over the past month. This has lagged the Transportation sector's loss of 4.82% and the S&P 500's loss of 5.71% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.67, up 139.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.08 billion, up 74.85% from the prior-year quarter.
AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.24 per share and revenue of $47.27 billion. These results would represent year-over-year changes of +85.2% and +58.18%, respectively.
Investors might also notice recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 9.38% lower. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Zacks Names "Single Best Pick to Double"
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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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AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.24 per share and revenue of $47.27 billion. American Airlines (AAL) closed the most recent trading day at $13.04, moving +0.77% 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 $13.04, moving +0.77% 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 -$1.24 per share and revenue of $47.27 billion.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed the most recent trading day at $13.04, moving +0.77% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.24 per share and revenue of $47.27 billion.
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American Airlines (AAL) closed the most recent trading day at $13.04, moving +0.77% 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 -$1.24 per share and revenue of $47.27 billion.
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3465.0
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2022-06-21 00:00:00 UTC
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Should You Invest in the U.S. Global Jets ETF (JETS)?
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AAL
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https://www.nasdaq.com/articles/should-you-invest-in-the-u.s.-global-jets-etf-jets-2
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nan
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nan
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Launched on 04/30/2015, the U.S. Global Jets ETF (JETS) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $2.48 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market. JETS seeks to match the performance of the U.S. Global Jets Index before fees and expenses.
The U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.85%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, American Airls Group Inc (AAL) accounts for about 10.15% of total assets, followed by United Airls Hldgs Inc (UAL) and Delta Air Lines Inc Del (DAL).
The top 10 holdings account for about 57.97% of total assets under management.
Performance and Risk
The ETF has lost about -23.79% so far this year and is down about -33.66% in the last one year (as of 06/21/2022). In that past 52-week period, it has traded between $16.05 and $25.39.
The ETF has a beta of 1.29 and standard deviation of 47.19% for the trailing three-year period, making it a high risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
U.S. Global Jets ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, JETS is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
SPDR S&P Transportation ETF (XTN) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index. SPDR S&P Transportation ETF has $506.92 million in assets, iShares U.S. Transportation ETF has $769.90 million. XTN has an expense ratio of 0.35% and IYT charges 0.41%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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U.S. Global Jets ETF (JETS): ETF Research Reports
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
iShares U.S. Transportation ETF (IYT): ETF Research Reports
SPDR S&P Transportation ETF (XTN): 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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Looking at individual holdings, American Airls Group Inc (AAL) accounts for about 10.15% of total assets, followed by United Airls Hldgs Inc (UAL) and Delta Air Lines Inc Del (DAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report It has amassed assets over $2.48 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market.
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Looking at individual holdings, American Airls Group Inc (AAL) accounts for about 10.15% of total assets, followed by United Airls Hldgs Inc (UAL) and Delta Air Lines Inc Del (DAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report Global Jets ETF (JETS) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
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Looking at individual holdings, American Airls Group Inc (AAL) accounts for about 10.15% of total assets, followed by United Airls Hldgs Inc (UAL) and Delta Air Lines Inc Del (DAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report SPDR S&P Transportation ETF (XTN) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index.
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Looking at individual holdings, American Airls Group Inc (AAL) accounts for about 10.15% of total assets, followed by United Airls Hldgs Inc (UAL) and Delta Air Lines Inc Del (DAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report Global Jets ETF (JETS) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
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3466.0
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2022-06-21 00:00:00 UTC
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Australian state hikes coal royalties to snare windfall profit
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AAL
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https://www.nasdaq.com/articles/australian-state-hikes-coal-royalties-to-snare-windfall-profit
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nan
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nan
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By Harshita Swaminathan and Sonali Paul
MELBOURNE, June 21 (Reuters) - Australia's Queensland state said on Tuesday it would raise royalties on coal production to capture windfall profit, expecting to raise an extra A$1.2 billion ($836 million) in the 2023 financial year.
The move by the state, home to coal mines owned by majors BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N, comes as coal prices hover at record highs and ends a 10-year freeze on royalty rates.
"With the freeze expiring on 30 June 2022, the existing rates do not account for the unprecedented windfall prices that coal producers are now receiving," Queensland Treasurer Cameron Dick said in a statement.
The government set new progressive rates, effective July 1, at a 20% royalty for coal prices over A$175 a tonne, 30% for prices above A$225 and 40% for prices over A$300.
Previously the top tier was a 15% royalty on prices over A$150 a tonne.
The Queensland Resources Council said miners in the state already pay double the rate in Australia's other major coal-producing state, New South Wales, and would now be paying the highest rate in the world.
"This is a seriously misguided economic policy that will make Queensland's number one export industry and private sector employer less internationally competitive," Queensland Resources Council Chief Executive Ian Macfarlane said in a statement.
Due to booming global coal prices which recently topped A$500 a tonne in the wake of sanctions on Russia, the industry will pay the Queensland government more than A$8 billion in royalties in the year to June 2022, four times what was paid last year, the council said.
Treasurer Dick said the move was fair as metallurgical coal prices have only exceeded the new tier of A$175 a tonne for half the time over the past 10 years while thermal coal prices have averaged more than A$175 only in recent months.
Shares of coal miners fell sharply after the announcement, with Coronado Global Resources Inc CRN.AX slumping as much as 12%, while BHP was up 1.5% after rising as much as 2.9% earlier.
Coronado said it was disappointed by the state's royalty hike, but highlighted that unlike some of its peers, it has metallurgical mines in both Queensland and the United States, and its U.S. mines will not be affected by the increase.
($1 = 1.4347 Australian dollars)
(Reporting by Harshita Swaminathan and Navya Mittal in Bengaluru, and Sonali Paul in Melbourne; Editing by Rashmi Aich and Christopher Cushing)
((Harshita.Swaminathan@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 move by the state, home to coal mines owned by majors BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N, comes as coal prices hover at record highs and ends a 10-year freeze on royalty rates. "With the freeze expiring on 30 June 2022, the existing rates do not account for the unprecedented windfall prices that coal producers are now receiving," Queensland Treasurer Cameron Dick said in a statement. Shares of coal miners fell sharply after the announcement, with Coronado Global Resources Inc CRN.AX slumping as much as 12%, while BHP was up 1.5% after rising as much as 2.9% earlier.
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The move by the state, home to coal mines owned by majors BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N, comes as coal prices hover at record highs and ends a 10-year freeze on royalty rates. By Harshita Swaminathan and Sonali Paul MELBOURNE, June 21 (Reuters) - Australia's Queensland state said on Tuesday it would raise royalties on coal production to capture windfall profit, expecting to raise an extra A$1.2 billion ($836 million) in the 2023 financial year. The Queensland Resources Council said miners in the state already pay double the rate in Australia's other major coal-producing state, New South Wales, and would now be paying the highest rate in the world.
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The move by the state, home to coal mines owned by majors BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N, comes as coal prices hover at record highs and ends a 10-year freeze on royalty rates. Due to booming global coal prices which recently topped A$500 a tonne in the wake of sanctions on Russia, the industry will pay the Queensland government more than A$8 billion in royalties in the year to June 2022, four times what was paid last year, the council said. Treasurer Dick said the move was fair as metallurgical coal prices have only exceeded the new tier of A$175 a tonne for half the time over the past 10 years while thermal coal prices have averaged more than A$175 only in recent months.
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The move by the state, home to coal mines owned by majors BHP Group Ltd BHP.AX, Glencore PLC GLEN.L, Anglo American PLC AAL.L and Peabody Energy Corp BTU.N, comes as coal prices hover at record highs and ends a 10-year freeze on royalty rates. By Harshita Swaminathan and Sonali Paul MELBOURNE, June 21 (Reuters) - Australia's Queensland state said on Tuesday it would raise royalties on coal production to capture windfall profit, expecting to raise an extra A$1.2 billion ($836 million) in the 2023 financial year. Due to booming global coal prices which recently topped A$500 a tonne in the wake of sanctions on Russia, the industry will pay the Queensland government more than A$8 billion in royalties in the year to June 2022, four times what was paid last year, the council said.
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3467.0
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2022-06-20 00:00:00 UTC
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JetBlue sweetens offer for Spirit to $33.50 per share
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AAL
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https://www.nasdaq.com/articles/jetblue-sweetens-offer-for-spirit-to-%2433.50-per-share
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nan
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nan
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Adds details and background
June 20 (Reuters) - JetBlue Airways JBLU.O said Monday it had boosted its takeover offer for Spirit Airlines SAVE.N to $33.50 as it works to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O.
Spirit said last week it was in talks with JetBlue JBLU.O over its offer and expected to decide on the proposal by June 30. JetBlue said its proposal represents a 68% premium to the implied value of the Frontier stock and cash transaction.
The new proposal includes what JetBlue termed a "stronger divestiture commitment" to complete the Spirit deal but does not include abandoning JetBlue's Northeast Alliance with American Airlines AAL.O.
(Reporting by David Shepardson in Washington and Leroy Leo in Bengaluru; Editing by Diane Craft)
((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 new proposal includes what JetBlue termed a "stronger divestiture commitment" to complete the Spirit deal but does not include abandoning JetBlue's Northeast Alliance with American Airlines AAL.O. Adds details and background June 20 (Reuters) - JetBlue Airways JBLU.O said Monday it had boosted its takeover offer for Spirit Airlines SAVE.N to $33.50 as it works to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O. Spirit said last week it was in talks with JetBlue JBLU.O over its offer and expected to decide on the proposal by June 30.
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The new proposal includes what JetBlue termed a "stronger divestiture commitment" to complete the Spirit deal but does not include abandoning JetBlue's Northeast Alliance with American Airlines AAL.O. Adds details and background June 20 (Reuters) - JetBlue Airways JBLU.O said Monday it had boosted its takeover offer for Spirit Airlines SAVE.N to $33.50 as it works to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O. Spirit said last week it was in talks with JetBlue JBLU.O over its offer and expected to decide on the proposal by June 30.
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The new proposal includes what JetBlue termed a "stronger divestiture commitment" to complete the Spirit deal but does not include abandoning JetBlue's Northeast Alliance with American Airlines AAL.O. Adds details and background June 20 (Reuters) - JetBlue Airways JBLU.O said Monday it had boosted its takeover offer for Spirit Airlines SAVE.N to $33.50 as it works to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O. (Reporting by David Shepardson in Washington and Leroy Leo in Bengaluru; Editing by Diane Craft) ((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 new proposal includes what JetBlue termed a "stronger divestiture commitment" to complete the Spirit deal but does not include abandoning JetBlue's Northeast Alliance with American Airlines AAL.O. Adds details and background June 20 (Reuters) - JetBlue Airways JBLU.O said Monday it had boosted its takeover offer for Spirit Airlines SAVE.N to $33.50 as it works to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O. Spirit said last week it was in talks with JetBlue JBLU.O over its offer and expected to decide on the proposal by June 30.
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3468.0
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2022-06-17 00:00:00 UTC
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Just Three Companies Control 97% of This Growing Market
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AAL
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https://www.nasdaq.com/articles/just-three-companies-control-97-of-this-growing-market-0
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Hello, Reader.
Dave Gilbert here, Editor of Smart Money.
Let’s start today’s issue off with a story.
Two men sitting next to each other on a flight started to chat, as is often the case. Except this is back in 1953, these weren’t just any two men, and their conversation ended up changing an entire industry.
One man, C.R. Smith, happened to be the CEO of American Airlines Group Inc. (AAL), which of course was the airline they were flying. The other man was also named Smith, Blair Smith, though they weren’t related. He was a sales executive with International Business Machines (IBM).
The conversation made its way to the frustrations of the day. Blair was having difficulty making a sale, and C.R. was frustrated with the slow pace of the airline reservations process that relied on manual systems and old-fashioned phone calls. A single reservation could take an hour.
The two didn’t stop talking when the flight landed. In fact, C.R. took Blair to the reservation center at the airport. And as they say, the rest is history. American Airlines and IBM soon partnered on what would become the beginning of reservation automation.
Eric Fry: This Is One of the Biggest Megatrends I’ve Seen in My Career
Now, we can do all of this in mere moments. Remembering that might help ease the stress a little bit when your cursor spins for a few seconds and it seems like forever.
With Americans eager to travel and numbers on the rise, there may be an investment opportunity in what is now the backbone of the modern online reservation system. A backbone that is controlled by only a few companies…
Americans Are On the Go
After grinding to a halt in 2020 amid COVID-19 lockdowns, the travel industry has made a sharp recovery.
Higher prices don’t seem to be slowing things either. Gasoline is hitting all-time highs, and yet AAA projected 39.2 million people would travel 50 miles or more over Memorial Day weekend. That would be 8.3% more than last year and in line with 2017 levels. (The final numbers aren’t out yet.)
It bodes well for the rest of the summer, according to AAA Travel Senior Vice President Paula Twidale:
Memorial Day is always a good predictor of what’s to come for summer travel. Based on our projections, summer travel isn’t just heating up, it will be on fire. People are overdue for a vacation and they are looking to catch up on some much-needed R&R in the coming months.
Same for air travel. According to Hopper, a travel data software company, average round trip airfares for Memorial Day increased by $28 to $394. And yet, the number of passengers going through TSA checkpoints Friday through Monday increased 28.5% over last year to 8.8 million.
For perspective, that is also 675% more people passing through checkpoints than Memorial Day weekend of 2020.
This travel rebound trend is something Eric Fry has watched closely for more than a year. With more travelers come increased related bookings, like hotels, rental homes, and rental cars. And with that comes the potential to make money.
All of those bookings, whether made by consumer Carl at his computer or Travel Agent Anna at her office, are done online. Here’s a “who’s who” of travel industry websites…
Booking Holdings Inc. (BKNG): Kayak, Agoda, Priceline, CheapFlights, Momondo, OpenTable, RentalCars
Expedia Group Inc. (EXPE): Orbitz, Travelocity, Hotels.com, TripAdvisor.com, SeatGuru.com, Cheaptickets.com
Alphabet Inc. (GOOGL)
Hilton Worldwide Holdings Inc. (HLT)
Marriott International Inc. (MAR)
Hyatt Hotels Corp. (H)
And on and on.
Those websites are the facing pages we see, but for the reservations to be made and the systems to talk to each other, they all must pass through a global distribution system, or GDS for short.
The Gateway to Reservations… and Profits, Too
Travel is chaotic enough, but without a GDS it would be unbearable. The GDS allows costumers to find availabilities, make reservations, and pay for them. This is one area Eric has focused his research.
Here’s a good definition from siteminder.com:
A GDS is a worldwide conduit between travel bookers and suppliers, such as hotels and other accommodation providers. It communicates live product, price and availability data to travel agents and online booking engines, and allows for automated transactions.
Only three companies dominate the travel industry’s global distributions systems. Spain-based Amadeus IT Group SA (AMADY) is the largest of the three. It processes about 40% of travel bookings worldwide. Dallas area-based Sabre Corp. (SABR) is No. 2, with a 35% market share. And privately held Travelport is No. 3, with a 22% market share.
I’ll save you the trouble of adding those up. Together these three make up 97% of all travel bookings worldwide.
“America’s Top Trader” Says to Make This Move Now
The companies generate revenues from the volume of transactions, not the dollar value of those transactions. So when travel activity increases, revenues also increase.
As Eric has pointed out, Sabre, the U.S.-based GDS, recently reported its first profitable quarter in more than two years, while also reporting the highest sales and profit margins since the pandemic struck.
He also likes the company’s commitment to the future…
The company has not been simply sitting on its hands during the last year, waiting for the inevitable recovery.
Instead, it has taken decisive steps to fortify its competitive moat by expanding its client roster and beefing up its industry-leading IT capabilities.
For example, Sabre has collaborated with Google to migrate its IT infrastructure to Google Cloud. Sabre followed up that initiative by partnering with Google last fall to develop an artificial intelligence (AI)-driven technology platform that is an industry first.
And yet, despite the upbeat results and remarks, the stock has tumbled since the earnings announcement.
Eric admits that the pandemic and its effects “have dragged on far longer than I initially anticipated. And then, just at the moment the clouds finally seemed to be parting, Russia invaded Ukraine and China imposed new COVID lockdowns.”
But keeping his eye on the macro trend, which his track record shows is clearly a profitable thing to do, Eric expects Sabre to “flourish anew… once the travel recovery becomes and undeniable reality.”
Regards,
Dave Gilbert
Editor, Smart Money
P.S. Eric Fry Says This Is the “Trade of the Decade”
Sitting on the sidelines now means you could miss one of the most powerful opportunities he’s seen in years. He was talking about this opportunity in 2021, and the wild events of 2022 have only confirmed his analysis that this could be a rare wealth-building moment.
The post Just Three Companies Control 97% of This Growing Market 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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Smith, happened to be the CEO of American Airlines Group Inc. (AAL), which of course was the airline they were flying. Gasoline is hitting all-time highs, and yet AAA projected 39.2 million people would travel 50 miles or more over Memorial Day weekend. It communicates live product, price and availability data to travel agents and online booking engines, and allows for automated transactions.
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Smith, happened to be the CEO of American Airlines Group Inc. (AAL), which of course was the airline they were flying. For perspective, that is also 675% more people passing through checkpoints than Memorial Day weekend of 2020. It communicates live product, price and availability data to travel agents and online booking engines, and allows for automated transactions.
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Smith, happened to be the CEO of American Airlines Group Inc. (AAL), which of course was the airline they were flying. It bodes well for the rest of the summer, according to AAA Travel Senior Vice President Paula Twidale: Memorial Day is always a good predictor of what’s to come for summer travel. Here’s a “who’s who” of travel industry websites… Booking Holdings Inc. (BKNG): Kayak, Agoda, Priceline, CheapFlights, Momondo, OpenTable, RentalCars Expedia Group Inc. (EXPE): Orbitz, Travelocity, Hotels.com, TripAdvisor.com, SeatGuru.com, Cheaptickets.com Alphabet Inc. (GOOGL) Hilton Worldwide Holdings Inc. (HLT) Marriott International Inc. (MAR) Hyatt Hotels Corp. (H) And on and on.
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Smith, happened to be the CEO of American Airlines Group Inc. (AAL), which of course was the airline they were flying. The other man was also named Smith, Blair Smith, though they weren’t related. For perspective, that is also 675% more people passing through checkpoints than Memorial Day weekend of 2020.
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3469.0
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2022-06-17 00:00:00 UTC
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Verizon, AT&T agree to delay some 5G deployment until mid-2023
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AAL
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https://www.nasdaq.com/articles/verizon-att-agree-to-delay-some-5g-deployment-until-mid-2023
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nan
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nan
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By David Shepardson
WASHINGTON, June 17 (Reuters) - The Federal Aviation Administration said Friday that Verizon Communications VZ.N and AT&T T.N have voluntarily agreed to delay some C-Band 5G usage until July 2023 as air carriers work to retrofit airplanes to ensure they will not face interference.
The two carriers agreed in January to delay through July 5 switching on some wireless towers and depowering others near airports. Verizon said Friday the new agreement will allow it to "lift the voluntary limitations on our 5G network deployment around airports in a staged approach over the coming months meaning even more consumers and businesses will benefit from the tremendous capabilities of 5G technology."
AT&T said with the FAA it had "developed a more tailored approach to controlling signal strength around runways that allows us to activate more towers and increase signal strength." AT&T added that it had voluntarily "chosen in good faith to implement these more tailored precautionary measures so that airlines have additional time to retrofit equipment."
Concerns that the 5G service could interfere with airplane altimeters, which give data on a plane's height above the ground and are crucial for bad-weather landing, led to disruptions at some U.S. airports earlier this year.
In recent months, the Federal Aviation Administration has been urging airlines to complete retrofits of some airplane radio altimeters.
Acting FAA Administrator Billy Nolen on Wednesday urged the chief executives of major U.S. airlines to move quickly to address risks from a 5G wireless rollout by installing filters on radio altimeters, in a bid to avoid potential disruptions at key airports from next month.
Airlines for America, an industry trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said at an FAA meeting Friday they learned "the vast majority" of members fleet of 4,800 total aircraft "would need to be retrofitted by July 2023" and raised questions if that is feasible. "Given that the FAA has not even approved solutions nor have manufacturers manufactured these products for most of this fleet, it is not at all clear that carriers can meet what appears to be an arbitrary deadline."
The FAA said Friday "filters and replacement units for the mainline commercial fleet should be available on a schedule that would permit the work to be largely completed by July 2023. After that time, the wireless companies expect to operate their networks in urban areas with minimal restrictions."
Airlines CEOs on Jan. 17 had warned of an impending "catastrophic" aviation crisis that could have grounded almost all traffic because of the 5G deployment.
(Reporting by David Shepardson; editing by David Evans)
((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, an industry trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said at an FAA meeting Friday they learned "the vast majority" of members fleet of 4,800 total aircraft "would need to be retrofitted by July 2023" and raised questions if that is feasible. By David Shepardson WASHINGTON, June 17 (Reuters) - The Federal Aviation Administration said Friday that Verizon Communications VZ.N and AT&T T.N have voluntarily agreed to delay some C-Band 5G usage until July 2023 as air carriers work to retrofit airplanes to ensure they will not face interference. Verizon said Friday the new agreement will allow it to "lift the voluntary limitations on our 5G network deployment around airports in a staged approach over the coming months meaning even more consumers and businesses will benefit from the tremendous capabilities of 5G technology."
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Airlines for America, an industry trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said at an FAA meeting Friday they learned "the vast majority" of members fleet of 4,800 total aircraft "would need to be retrofitted by July 2023" and raised questions if that is feasible. By David Shepardson WASHINGTON, June 17 (Reuters) - The Federal Aviation Administration said Friday that Verizon Communications VZ.N and AT&T T.N have voluntarily agreed to delay some C-Band 5G usage until July 2023 as air carriers work to retrofit airplanes to ensure they will not face interference. In recent months, the Federal Aviation Administration has been urging airlines to complete retrofits of some airplane radio altimeters.
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Airlines for America, an industry trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said at an FAA meeting Friday they learned "the vast majority" of members fleet of 4,800 total aircraft "would need to be retrofitted by July 2023" and raised questions if that is feasible. By David Shepardson WASHINGTON, June 17 (Reuters) - The Federal Aviation Administration said Friday that Verizon Communications VZ.N and AT&T T.N have voluntarily agreed to delay some C-Band 5G usage until July 2023 as air carriers work to retrofit airplanes to ensure they will not face interference. Acting FAA Administrator Billy Nolen on Wednesday urged the chief executives of major U.S. airlines to move quickly to address risks from a 5G wireless rollout by installing filters on radio altimeters, in a bid to avoid potential disruptions at key airports from next month.
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Airlines for America, an industry trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said at an FAA meeting Friday they learned "the vast majority" of members fleet of 4,800 total aircraft "would need to be retrofitted by July 2023" and raised questions if that is feasible. By David Shepardson WASHINGTON, June 17 (Reuters) - The Federal Aviation Administration said Friday that Verizon Communications VZ.N and AT&T T.N have voluntarily agreed to delay some C-Band 5G usage until July 2023 as air carriers work to retrofit airplanes to ensure they will not face interference. Verizon said Friday the new agreement will allow it to "lift the voluntary limitations on our 5G network deployment around airports in a staged approach over the coming months meaning even more consumers and businesses will benefit from the tremendous capabilities of 5G technology."
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3470.0
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2022-06-17 00:00:00 UTC
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First Week of AAL February 2023 Options Trading
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AAL
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https://www.nasdaq.com/articles/first-week-of-aal-february-2023-options-trading
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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 this week, for the February 2023 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 245 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 2023 contracts and identified one put and one call contract of particular interest.
The put contract at the $11.00 strike price has a current bid of $1.96. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $11.00, but will also collect the premium, putting the cost basis of the shares at $9.04 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $12.46/share today.
Because the $11.00 strike represents an approximate 12% 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 71%. 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 17.82% return on the cash commitment, or 26.54% 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 $11.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $13.00 strike price has a current bid of $2.62. If an investor was to purchase shares of AAL stock at the current price level of $12.46/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $13.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 25.36% if the stock gets called away at the February 2023 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 $13.00 strike highlighted in red:
Considering the fact that the $13.00 strike represents an approximate 4% 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 43%. 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 21.03% boost of extra return to the investor, or 31.32% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 75%, while the implied volatility in the call contract example is 69%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $12.46) to be 55%. 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 $13.00 strike highlighted in red: Considering the fact that the $13.00 strike represents an approximate 4% 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 this week, for the February 2023 expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $13.00 strike highlighted in red: Considering the fact that the $13.00 strike represents an approximate 4% 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 this week, for the February 2023 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 2023 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 $13.00 strike highlighted in red: Considering the fact that the $13.00 strike represents an approximate 4% 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 this week, for the February 2023 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 2023 contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 2023 contracts and identified one put and one call contract of particular interest. Below is a chart showing AAL's trailing twelve month trading history, with the $13.00 strike highlighted in red: Considering the fact that the $13.00 strike represents an approximate 4% 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 this week, for the February 2023 expiration.
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3471.0
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2022-06-17 00:00:00 UTC
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Here's Why Investors Should Retain American Airlines (AAL) Now
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AAL
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https://www.nasdaq.com/articles/heres-why-investors-should-retain-american-airlines-aal-now
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nan
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nan
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The uptick in air-travel demand in the United States (particularly on the leisure front) bodes well for American Airlines AAL. However, escalated fuel costs are limiting bottom-line growth and acting as a primary headwind.
Factors Favoring AAL
The gradual improvement in air-travel demand in the United States is a huge boon for American Airlines, which currently carries a Zacks Rank #3 (Hold). Owing to this tailwind, the carrier upped its revenue outlook for second-quarter 2022.
Backed by upbeat air-travel demand and favorable pricing, American Airlines expects total revenues to rise between 11% and 13% from the second-quarter 2019 actuals (earlier expectation was an increase in the 6- 8% range). Total revenue per available seat miles (TRASM: a measure of unit revenue) is now anticipated to be 20-22% higher than the second-quarter 2019 reading (the earlier estimate was a 14-16% rise). Driven by upbeat demand, the pre-tax margin, excluding net special items, is projected in the 4-6% range compared with the 3-5% band expected earlier.
Betterment of cargo revenues (up 70.8% year over year in 2021) is positive. In first-quarter 2022, cargo revenues improved 15.4% to $364 million. Cargo yield per ton mile rose 14.6% in the first quarter of 2022. AAL's debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion by 2025-end. The company aims to attain this objective through naturally occurring amortization. Also, it intends to utilize surplus cash and free cash flow to pay down prepayable debt. As of Mar 31, 2022, AAL reduced its debt levels by $4.1 billion from peak levels in the second quarter of 2021.
Key Risks
Escalating fuel costs pose a threat to American Airlines’ bottom line. Oil price is moving north, primarily because of supply concerns stemming from Russia's invasion of Ukraine. In first-quarter 2022, fuel price per gallon climbed to $2.80 from $1.70 a year ago. Management expects average fuel cost per gallon in the $3.92-$3.97 range during the June quarter.
AAL’s liquidity position remains a concern. American Airlines’ current ratio (a measure of liquidity) at the end of first-quarter 2022 stood at 0.81. A current ratio of less than 1 is not desirable as it implies that the company doesn't have enough liquid assets to cover its short-term liabilities. High non-fuel unit costs do not bode well.
Stocks to Consider
Some better-ranked stocks in the broader Zacks Transportation sector are Ryder System R, C.H. Robinson Worldwide CHRW and GATX Corporation GATX.
Ryder beat earnings estimates in each of the trailing four quarters, the average surprise being 48.2%. R is benefiting from improving economic and freight conditions in the United States.
Revenues in all segments grew (on higher rental revenues, new business and favorable pricing) in first-quarter 2022. R currently carries a Zacks Rank #2 (Buy).
The expected long-term (three-to-five years) earnings per share (EPS) growth rate for C.H. Robinson is pegged at 9%. Improving freight market conditions is aiding CHRW.
In first-quarter 2022, the top line improved 41.8%, owing to favorable truckload pricing for customers and handsome profits in ocean freight. CHRW currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX beat earnings estimates in each of the trailing four quarters, the average surprise being 40.1%. The gradual improvement in the North American railcar leasing market is a huge positive for GATX.
Driven by the upsides, the stock has risen 7.1% in the past year. GATX currently has a Zacks Rank of 2.
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
Ryder System, Inc. (R): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
GATX Corporation (GATX): 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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Factors Favoring AAL The gradual improvement in air-travel demand in the United States is a huge boon for American Airlines, which currently carries a Zacks Rank #3 (Hold). The uptick in air-travel demand in the United States (particularly on the leisure front) bodes well for American Airlines AAL. AAL's debt-reduction efforts are impressive as well.
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Factors Favoring AAL The gradual improvement in air-travel demand in the United States is a huge boon for American Airlines, which currently carries a Zacks Rank #3 (Hold). The uptick in air-travel demand in the United States (particularly on the leisure front) bodes well for American Airlines AAL. AAL's debt-reduction efforts are impressive as well.
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Factors Favoring AAL The gradual improvement in air-travel demand in the United States is a huge boon for American Airlines, which currently carries a Zacks Rank #3 (Hold). American Airlines Group Inc. (AAL): Free Stock Analysis Report The uptick in air-travel demand in the United States (particularly on the leisure front) bodes well for American Airlines AAL.
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AAL’s liquidity position remains a concern. American Airlines Group Inc. (AAL): Free Stock Analysis Report The uptick in air-travel demand in the United States (particularly on the leisure front) bodes well for American Airlines AAL.
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3472.0
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2022-06-16 00:00:00 UTC
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Stock Market Today: Bears Viciously Repel Post-Fed Rally
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-bears-viciously-repel-post-fed-rally
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nan
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Whatever cheer investors took from yesterday's Federal Reserve policy announcement and Chair Jerome Powell's presser evaporated Thursday, as the major indexes sank and the Dow Jones Industrial Average dropped to within close reach of its own bear market.
Several pieces of data out today hinted at a slowing economy:
SEE MORE The 10 Best Stocks for a Bear Market
The Philadelphia Fed Manufacturing Index dropped to -3.3, versus +5.5 expected, indicating that the region's manufacturing activity was contracting for the first time since May 2020.
Housing starts plunged 14.4% in May to 1.549 million annualized units, the lowest in 13 months.
And while initial unemployment filings for the week ended June 11 were unchanged at 229,000, the prior week's number was revised upward by 3,000 filings, and the four-week moving average of 218,500 was the highest in five months.
"The labor and housing markets are normalizing after running red-hot in 2021," says Bill Adams, Chief Economist for Comerica Bank. "Higher interest rates have broken the fever in housing, with the benchmark survey of homebuilders showing reduced foot traffic at showings. Layoffs are still historically low in the U.S., but rising. A couple of states noted layoffs in the broad industry groups that include retail, e-commerce, and temp services in the latest week's data."
Meanwhile, investors continue to mull the ramifications of the Federal Reserve's 75-basis-point interest-rate cut – and how effective it might be against a major market headwind.
Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
"Perhaps [the rate cut] increases the Fed's credibility, but it remains to be seen whether monetary policy is a sufficient tool to materially impact inflation that is being primarily driven by supply side constraints," says Shawn Snyder, Head of Investment Strategy at Citi Personal Wealth Management.
Every single market sector was lower Thursday, though some had it worse than others. Energy stocks (-5.5%) were the market's worst performer despite a 2.0% improvement in U.S. crude oil futures, to $117.58 per barrel. Tech and tech-esque stocks continued to absorb the brunt of higher-rate fears; Tesla (TSLA, -8.5%), Advanced Micro Devices (AMD, -8.1%) and Charter Communications (CHTR, -7.5%) were among some of the most notable decliners.
SEE MORE The 12 Best ETFs to Battle a Bear Market
Consumer staples (-0.8%) offered the best defense, relatively speaking, thanks to modest gains in the likes of Walmart (WMT, +1.0%) and Procter & Gamble (PG, +0.6%).
The major indexes sustained significant damage. The Nasdaq Composite (-4.1% to 10,646) led the way lower, followed by the S&P 500 (-3.3% to 3,666) and the Dow (-2.4% to 29,927). The industrial average is now just a 2.2% decline away from being 20% below its Jan. 3 closing high and entering its own bear market.
YCharts
Other news in thestock market today
The small-cap Russell 2000 retreated by 4.7% to 1,649.
Gold futures gained 1.7% to finish at $1,849.90 an ounce.
Bitcoin's decline continued, with the cryptocurrency off 3.9% to $20,841.49. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
Fears of a potential recession dragged on a number of travel stocks today. Cruise operators Carnival (CCL, -11.1%) and Royal Caribbean (RCL, -11.4%) were among the biggest decliners, while airlines American Airlines (AAL, -8.6%) and Delta Air Lines (DAL, -7.5%) also plummeted.
Kroger (KR) stock slipped 2.1% after the grocery chain reported earnings. In its first quarter, KR recorded adjusted earnings of $1.45 per share and revenue of $44.6 billion, more than the $1.30 per share and $44.2 billion a nalysts were expecting. Kroger expects full-year earnings to arrive between $3.85 per share and $3.95 per share, a slight (10-cent) improvement on the low end of its previous forecast. CFRA Research analyst Arun Sundaram maintained a Sell rating on KR stock. "Gross margin headwinds could strengthen with price competition increases and continued inflationary pressures," the analyst says. "Lower fuel margins, less COVID-19 vaccine benefits, and moderating food-at-home demand will also likely be headwinds this year. Overall, we think it is a good time for investors to take profits considering KR shares have outperformed peers and the broader market year-to-date."
More Energy in Energy?
Oil and gas stocks might have had a miserable day, but don't assume they're out of fuel either.
SEE MORE Why Are Gas Prices Still Going Up?
"We believe energy prices will remain elevated for the foreseeable future, as demand for fossil fuels is not declining as fast as people think and alternative energy is not as available as people think," says David Trainer, CEO ofinvestment researchfirm New Constructs. "Profits in the energy sector are rising much faster than the sector's overall valuation, so there remains plenty of upside across the sector."
But given energy's still-massive run in 2022 (+41.6% YTD), investors don't have the leeway to buy the sector indiscriminately, unlike earlier in the year.
"Investors need to do their homework in this environment and focus on the most profitable companies trading at the biggest discounts no matter what the sector is," he says.
Investors who want to try to squeeze a little more juice from the oil patch can start their search with our seven best energy picks for the rest of the year. Each of these stocks earns high marks from the analyst community, and we highlight what sets them apart from the pack.
SEE MORE UBS's 43 Top Stocks for a Volatile Market
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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Cruise operators Carnival (CCL, -11.1%) and Royal Caribbean (RCL, -11.4%) were among the biggest decliners, while airlines American Airlines (AAL, -8.6%) and Delta Air Lines (DAL, -7.5%) also plummeted. Whatever cheer investors took from yesterday's Federal Reserve policy announcement and Chair Jerome Powell's presser evaporated Thursday, as the major indexes sank and the Dow Jones Industrial Average dropped to within close reach of its own bear market. "Perhaps [the rate cut] increases the Fed's credibility, but it remains to be seen whether monetary policy is a sufficient tool to materially impact inflation that is being primarily driven by supply side constraints," says Shawn Snyder, Head of Investment Strategy at Citi Personal Wealth Management.
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Cruise operators Carnival (CCL, -11.1%) and Royal Caribbean (RCL, -11.4%) were among the biggest decliners, while airlines American Airlines (AAL, -8.6%) and Delta Air Lines (DAL, -7.5%) also plummeted. Whatever cheer investors took from yesterday's Federal Reserve policy announcement and Chair Jerome Powell's presser evaporated Thursday, as the major indexes sank and the Dow Jones Industrial Average dropped to within close reach of its own bear market. Several pieces of data out today hinted at a slowing economy: SEE MORE The 10 Best Stocks for a Bear Market The Philadelphia Fed Manufacturing Index dropped to -3.3, versus +5.5 expected, indicating that the region's manufacturing activity was contracting for the first time since May 2020.
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Cruise operators Carnival (CCL, -11.1%) and Royal Caribbean (RCL, -11.4%) were among the biggest decliners, while airlines American Airlines (AAL, -8.6%) and Delta Air Lines (DAL, -7.5%) also plummeted. Whatever cheer investors took from yesterday's Federal Reserve policy announcement and Chair Jerome Powell's presser evaporated Thursday, as the major indexes sank and the Dow Jones Industrial Average dropped to within close reach of its own bear market. Several pieces of data out today hinted at a slowing economy: SEE MORE The 10 Best Stocks for a Bear Market The Philadelphia Fed Manufacturing Index dropped to -3.3, versus +5.5 expected, indicating that the region's manufacturing activity was contracting for the first time since May 2020.
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Cruise operators Carnival (CCL, -11.1%) and Royal Caribbean (RCL, -11.4%) were among the biggest decliners, while airlines American Airlines (AAL, -8.6%) and Delta Air Lines (DAL, -7.5%) also plummeted. Whatever cheer investors took from yesterday's Federal Reserve policy announcement and Chair Jerome Powell's presser evaporated Thursday, as the major indexes sank and the Dow Jones Industrial Average dropped to within close reach of its own bear market. Energy stocks (-5.5%) were the market's worst performer despite a 2.0% improvement in U.S. crude oil futures, to $117.58 per barrel.
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3473.0
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2022-06-16 00:00:00 UTC
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Relative Strength Alert For American Airlines Group
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AAL
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https://www.nasdaq.com/articles/relative-strength-alert-for-american-airlines-group
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.7, after changing hands as low as $12.20 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 31.8. A bullish investor could look at AAL's 28.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares:
Looking at the chart above, AAL's low point in its 52 week range is $12.18 per share, with $23.13 as the 52 week high point — that compares with a last trade of $12.24.
Free Report: Top 7%+ Dividends (paid monthly)
Find out what 9 other oversold stocks you need to know about »
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 bullish investor could look at AAL's 28.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $12.18 per share, with $23.13 as the 52 week high point — that compares with a last trade of $12.24. In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.7, after changing hands as low as $12.20 per share.
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A bullish investor could look at AAL's 28.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $12.18 per share, with $23.13 as the 52 week high point — that compares with a last trade of $12.24. In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.7, after changing hands as low as $12.20 per share.
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In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.7, after changing hands as low as $12.20 per share. A bullish investor could look at AAL's 28.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $12.18 per share, with $23.13 as the 52 week high point — that compares with a last trade of $12.24.
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In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.7, after changing hands as low as $12.20 per share. A bullish investor could look at AAL's 28.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $12.18 per share, with $23.13 as the 52 week high point — that compares with a last trade of $12.24.
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3474.0
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2022-06-16 00:00:00 UTC
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ANALYSIS-Air fares and staff gaps cast a shadow on transatlantic travel rebound
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AAL
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https://www.nasdaq.com/articles/analysis-air-fares-and-staff-gaps-cast-a-shadow-on-transatlantic-travel-rebound
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nan
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By Allison Lampert and Rajesh Kumar Singh
MONTREAL/CHICAGO, June 16 (Reuters) - Airlines expect the end of COVID testing requirements in North America to accelerate a rebound in transatlantic traffic - but soaring fares due to surging fuel costs and staffing shortages may slam the brakes on rising demand in the world's largest international travel market.
A U.S. requirement that arriving air travelers test negative for COVID-19 had been blamed by carriers for dampening demand.
But a week after the White House scrapped the rule, airlines are reporting a surge of interest in international travel.
That's a bright spot as the industry prepares an annual meeting of the International Air Transport Association (IATA) in Qatar.
IATA director general and former head of British Airways Willie Walsh expects airlines to prioritize key transatlantic routes that for years drove a big slice of industry profits.
"I think they'll reduce capacity in other areas," Walsh told Reuters ahead of the June 19-21 Doha gathering.
United Airlines UAL.O says searches for international travel from the United States, including Europe, have increased.
Similarly, travel management platform TripActions reported a 23% jump in international flight bookings to the U.S., helped by higher demand from Northern Europe.
U.S. airline executives have been advising customers not to delay their bookings if they are planning to go to Europe as the demand this summer is "on fire".
The surge in demand, however, comes at a time when carriers on both sides of the Atlantic are grappling with staffing shortages, forcing them to cut capacity.
In Europe, widespread labor strife, including short-term strikes by cabin crew over pay, has left passengers facing long-lines and flight cancellations.
That's raising questions over whether airlines and even airports have enough resources to meet increased demand. Transatlantic traffic has already reached 85% of 2019 levels, according to aviation analytics company Cirium.
Amsterdam's Schiphol Airport on Thursday set a cap on the number of passengers it will handle during the summer travel season, citing labor shortages and forcing airlines to cut flights.
The move by one of Europe's busiest airports means that airlines including KLM, the Dutch subsidiary of Air France-KLM AIRF.PA, will have to cancel an unspecified number of flights.
"For consumers, it means higher fares and a travel experience more prone to disruption and frustration," said Peter McNally, Global Sector Lead for Industrials Materials and Energy at research firm Third Bridge.
The transatlantic is the world's most lucrative travel market. In 2019, before the pandemic, transatlantic routes accounted for between 11% and 17% of passenger revenues at the big three U.S. carriers - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O.
Air Canada AC.TO, which indirectly flies U.S. passengers abroad through its Canadian hubs, was witnessing stronger demand for Europe even before Washington rescinded COVID testing requirement. The Montreal-based airline, the largest foreign carrier in the U.S., told Reuters that bookings from some U.S. cities for Europe are above 2019 levels.
For large traditional players like British Airways-owner IAG ICAG.L, Lufthansa LHAG.DE and Air France-KLM, the U.S. market is key to profits as they tend to be more reliant on transatlantic revenues than U.S. competitors.
United Airlines has the biggest exposure to international traffic among major U.S. carriers. It plans to expand its transatlantic network by 25% this summer compared to 2019 levels even as its overall capacity is projected to be lower.
"No airline is flying more across the Atlantic Ocean this summer than us," Chief Executive Scott Kirby said on LinkedIn.
Kirby and other airline CEOs are betting healthy U.S. household savings as well as strong pent-up demand will help fill flights despite rising fares and growing risks of an economic recession in the United States.
SOARING FARES
Inflation is at a record high in both the United States and Europe, with Russia's invasion of Ukraine and China's COVID-related lockdowns worsening price pressures. Central banks are under pressure to raise interest rates at a faster clip, dimming global economic prospects.
Meanwhile, jet fuel costs have more than doubled in the past year. Booming travel demand is helping carriers offset fuel costs with higher fares.
Average economy fares for a return flight from the U.S. to the EU are up 26% from their 2019 levels, TripActions says.
Thus far, there is little evidence of soaring costs hurting travel spending. Delta this month said consumer spending through its co-brand American Express cards is up 140% this year compared to 2019 levels.
Yet, some indicators are flashing warning signs.
A survey of U.S. travelers last month by Cowen and Co. found a slight drop in sentiment on the back of growing macro-economic concerns and rising air fares. An Adobe report this week also showed a slowdown in U.S. airline bookings in May.
"The question is ... if your rent goes, up and your electric and gas bills go up and your fuel goes up, will that impact your disposable income that you can spend on flights," said George Dimitroff, an analyst with Ascend by Cirium.
(Reporting By Allison Lampert in Montreal and Rajesh Kumar Singh in Chicago; Editing by Tim Hepher and Diane Craft)
((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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In 2019, before the pandemic, transatlantic routes accounted for between 11% and 17% of passenger revenues at the big three U.S. carriers - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. By Allison Lampert and Rajesh Kumar Singh MONTREAL/CHICAGO, June 16 (Reuters) - Airlines expect the end of COVID testing requirements in North America to accelerate a rebound in transatlantic traffic - but soaring fares due to surging fuel costs and staffing shortages may slam the brakes on rising demand in the world's largest international travel market. IATA director general and former head of British Airways Willie Walsh expects airlines to prioritize key transatlantic routes that for years drove a big slice of industry profits.
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In 2019, before the pandemic, transatlantic routes accounted for between 11% and 17% of passenger revenues at the big three U.S. carriers - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. By Allison Lampert and Rajesh Kumar Singh MONTREAL/CHICAGO, June 16 (Reuters) - Airlines expect the end of COVID testing requirements in North America to accelerate a rebound in transatlantic traffic - but soaring fares due to surging fuel costs and staffing shortages may slam the brakes on rising demand in the world's largest international travel market. Booming travel demand is helping carriers offset fuel costs with higher fares.
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In 2019, before the pandemic, transatlantic routes accounted for between 11% and 17% of passenger revenues at the big three U.S. carriers - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. By Allison Lampert and Rajesh Kumar Singh MONTREAL/CHICAGO, June 16 (Reuters) - Airlines expect the end of COVID testing requirements in North America to accelerate a rebound in transatlantic traffic - but soaring fares due to surging fuel costs and staffing shortages may slam the brakes on rising demand in the world's largest international travel market. United Airlines UAL.O says searches for international travel from the United States, including Europe, have increased.
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In 2019, before the pandemic, transatlantic routes accounted for between 11% and 17% of passenger revenues at the big three U.S. carriers - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. By Allison Lampert and Rajesh Kumar Singh MONTREAL/CHICAGO, June 16 (Reuters) - Airlines expect the end of COVID testing requirements in North America to accelerate a rebound in transatlantic traffic - but soaring fares due to surging fuel costs and staffing shortages may slam the brakes on rising demand in the world's largest international travel market. United Airlines UAL.O says searches for international travel from the United States, including Europe, have increased.
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3475.0
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2022-06-16 00:00:00 UTC
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Airline CEOs, Buttigieg to hold virtual meeting Thursday -sources
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AAL
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https://www.nasdaq.com/articles/airline-ceos-buttigieg-to-hold-virtual-meeting-thursday-sources
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nan
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nan
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WASHINGTON, June 16 (Reuters) - Major airline chief executives will hold a virtual meeting on Thursday with U.S. Transportation Secretary Pete Buttigieg on the busy travel season and recent flight disruptions, sources told Reuters.
Two U.S. senators recently raised concerns about flight delays and cancellations over the Memorial Day holiday weekend.
Buttigieg wants to discuss with regional and large airline leaders "plans to ensure safe and reliable service this summer, including their plans to ensure this service over" the July 4 holiday, the sources said.
CNBC reported the virtual meeting earlier.
(Reporting by David Shepardson; editing by Jason Neely)
((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, June 16 (Reuters) - Major airline chief executives will hold a virtual meeting on Thursday with U.S. Transportation Secretary Pete Buttigieg on the busy travel season and recent flight disruptions, sources told Reuters. Two U.S. senators recently raised concerns about flight delays and cancellations over the Memorial Day holiday weekend. Buttigieg wants to discuss with regional and large airline leaders "plans to ensure safe and reliable service this summer, including their plans to ensure this service over" the July 4 holiday, the sources said.
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WASHINGTON, June 16 (Reuters) - Major airline chief executives will hold a virtual meeting on Thursday with U.S. Transportation Secretary Pete Buttigieg on the busy travel season and recent flight disruptions, sources told Reuters. Buttigieg wants to discuss with regional and large airline leaders "plans to ensure safe and reliable service this summer, including their plans to ensure this service over" the July 4 holiday, the sources said. CNBC reported the virtual meeting earlier.
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WASHINGTON, June 16 (Reuters) - Major airline chief executives will hold a virtual meeting on Thursday with U.S. Transportation Secretary Pete Buttigieg on the busy travel season and recent flight disruptions, sources told Reuters. Buttigieg wants to discuss with regional and large airline leaders "plans to ensure safe and reliable service this summer, including their plans to ensure this service over" the July 4 holiday, the sources said. (Reporting by David Shepardson; editing by Jason Neely) ((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, June 16 (Reuters) - Major airline chief executives will hold a virtual meeting on Thursday with U.S. Transportation Secretary Pete Buttigieg on the busy travel season and recent flight disruptions, sources told Reuters. Two U.S. senators recently raised concerns about flight delays and cancellations over the Memorial Day holiday weekend. Buttigieg wants to discuss with regional and large airline leaders "plans to ensure safe and reliable service this summer, including their plans to ensure this service over" the July 4 holiday, the sources said.
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3476.0
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2022-06-16 00:00:00 UTC
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ANALYSIS-Air fares and staff gaps threaten transatlantic travel rebound
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AAL
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https://www.nasdaq.com/articles/analysis-air-fares-and-staff-gaps-threaten-transatlantic-travel-rebound
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nan
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nan
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By Allison Lampert and Rajesh Kumar Singh
MONTREAL/CHICAGO, June 16 (Reuters) - Airlines expect the end of COVID testing requirements in North America to accelerate a rebound in transatlantic traffic - but soaring fares due to surging fuel costs and staffing shortages may slam the brakes on rising demand in the world's largest international travel market.
A U.S. requirement that arriving air travelers test negative for COVID-19 had been blamed by carriers for dampening demand.
But a week after the White House scrapped the rule, airlines are reporting a surge of interest in international travel.
That's a bright spot as the industry prepares an annual meeting of the International Air Transport Association (IATA) in Qatar.
IATA director general and former head of British Airways Willie Walsh expects airlines to prioritize key transatlantic routes that for years drove a big slice of industry profits.
"I think they'll reduce capacity in other areas," Walsh told Reuters ahead of the June 19-21 Doha gathering.
United Airlines UAL.O says searches for international travel from the United States, including Europe, have increased.
Similarly, travel management platform TripActions reported a 23% jump in international flight bookings to the U.S., helped by higher demand from Northern Europe.
But that surge in demand comes at a time when carriers on both sides of the Atlantic are grappling with staffing shortages, forcing them to cut capacity.
In Europe, widespread labor strife, including short-term strikes by cabin crew over pay, has left passengers facing long-lines and flight cancellations.
That's raising questions over whether airlines have enough seats and staff to meet increased demand. Transatlantic traffic has already reached 85% of 2019 levels, according to aviation analytics company Cirium.
"For consumers, it means higher fares and a travel experience more prone to disruption and frustration," said Peter McNally, Global Sector Lead for Industrials Materials and Energy at research firm Third Bridge.
The transatlantic is the world's most lucrative travel market. In 2019, before the pandemic, transatlantic routes accounted for between 11% and 17% of passenger revenues at the big three U.S. carriers - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O.
Air Canada AC.TO, which indirectly flies U.S. passengers abroad through its Canadian hubs, was witnessing stronger demand for Europe even before Washington rescinded COVID testing requirement. The Montreal-based airline, the largest foreign carrier in the U.S., told Reuters that bookings from some U.S. cities for Europe are above 2019 levels.
For large traditional players like British Airways-owner IAG ICAG.L, Lufthansa LHAG.DE and Air France-KLM AIRF.PA, the U.S. market is key to profits as they tend to be more reliant on transatlantic revenues than U.S. competitors.
United Airlines has the biggest exposure to international traffic among major U.S. carriers. It plans to expand its transatlantic network by 25% this summer compared to 2019 levels even as its overall capacity is projected to be lower.
"No airline is flying more across the Atlantic Ocean this summer than us," Chief Executive Scott Kirby said on LinkedIn.
Kirby and other airline CEOs are betting healthy U.S. household savings as well as strong pent-up demand will help fill flights despite rising fares and growing risks of an economic recession in the United States.
SOARING FARES
Inflation is at a record high in both the United States and Europe, with Russia's invasion of Ukraine and China's COVID-related lockdowns worsening price pressures. Central banks are under pressure to raise interest rates at a faster clip, dimming global economic prospects.
Meanwhile, jet fuel costs have more than doubled in the past year. Booming travel demand is helping carriers offset fuel costs with higher fares.
Average economy fares for a return flight from the U.S. to the EU are up 26% from their 2019 levels, TripActions says.
Thus far, there is little evidence of soaring costs hurting travel spending. Delta this month said consumer spending through its co-brand American Express cards is up 140% this year compared to 2019 levels.
Yet, some indicators are flashing warning signs.
A survey of U.S. travelers last month by Cowen and Co. found a slight drop in sentiment on the back of growing macro-economic concerns and rising air fares. An Adobe report this week also showed a slowdown in U.S. airline bookings in May.
"The question is ... if your rent goes, up and your electric and gas bills go up and your fuel goes up, will that impact your disposable income that you can spend on flights," said George Dimitroff, an analyst with Ascend by Cirium.
(Reporting By Allison Lampert in Montreal and Rajesh Kumar Singh in Chicago; Editing by Tim Hepher and Diane Craft)
((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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In 2019, before the pandemic, transatlantic routes accounted for between 11% and 17% of passenger revenues at the big three U.S. carriers - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. By Allison Lampert and Rajesh Kumar Singh MONTREAL/CHICAGO, June 16 (Reuters) - Airlines expect the end of COVID testing requirements in North America to accelerate a rebound in transatlantic traffic - but soaring fares due to surging fuel costs and staffing shortages may slam the brakes on rising demand in the world's largest international travel market. IATA director general and former head of British Airways Willie Walsh expects airlines to prioritize key transatlantic routes that for years drove a big slice of industry profits.
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In 2019, before the pandemic, transatlantic routes accounted for between 11% and 17% of passenger revenues at the big three U.S. carriers - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. By Allison Lampert and Rajesh Kumar Singh MONTREAL/CHICAGO, June 16 (Reuters) - Airlines expect the end of COVID testing requirements in North America to accelerate a rebound in transatlantic traffic - but soaring fares due to surging fuel costs and staffing shortages may slam the brakes on rising demand in the world's largest international travel market. Booming travel demand is helping carriers offset fuel costs with higher fares.
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In 2019, before the pandemic, transatlantic routes accounted for between 11% and 17% of passenger revenues at the big three U.S. carriers - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. By Allison Lampert and Rajesh Kumar Singh MONTREAL/CHICAGO, June 16 (Reuters) - Airlines expect the end of COVID testing requirements in North America to accelerate a rebound in transatlantic traffic - but soaring fares due to surging fuel costs and staffing shortages may slam the brakes on rising demand in the world's largest international travel market. United Airlines UAL.O says searches for international travel from the United States, including Europe, have increased.
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In 2019, before the pandemic, transatlantic routes accounted for between 11% and 17% of passenger revenues at the big three U.S. carriers - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O. By Allison Lampert and Rajesh Kumar Singh MONTREAL/CHICAGO, June 16 (Reuters) - Airlines expect the end of COVID testing requirements in North America to accelerate a rebound in transatlantic traffic - but soaring fares due to surging fuel costs and staffing shortages may slam the brakes on rising demand in the world's largest international travel market. United Airlines UAL.O says searches for international travel from the United States, including Europe, have increased.
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3477.0
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2022-06-16 00:00:00 UTC
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Why Airline Stocks Are Falling Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-falling-today-2
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nan
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nan
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What happened
As if airline investors didn't have enough to worry about already, now the federal government is stepping in with some pointed questions about their rising flight delays and cancellations.
Airline shares were on the decline Thursday -- a day when industry leaders were scheduled to hold a virtual meeting with Transportation Secretary Pete Buttigieg. At the close of trading, American Airlines Group (NASDAQ: AAL) was down 8.6%, United Airlines Holdings (NASDAQ: UAL) fell 8.2%, Delta Air Lines (NYSE: DAL) dropped 7.4%, and Southwest Airlines (NYSE: LUV) and JetBlue Airways (NASDAQ: JBLU) were down just over 6%. The S&P 500 finished down 3.3%.
So what
Airline investors have had a rough couple of years. The industry was hit hard in 2020 and 2021 due to the pandemic, and its hoped-for 2022 recovery has been complicated. Pent-up demand for travel is filling planes this summer, but higher labor costs, a pilot shortage, and soaring fuel prices have combined to limit carriers' profitability.
Those factors are also complicating flight scheduling. Airlines canceled more than 2,700 flights over the busy Memorial Day weekend, and schedules continue to be impacted by weather delays, crew shortages, and COVID-mandated crew quarantines.
Lawmakers, regulators, and officials have heard complaints from passengers, and now, they want some answers. Secretary Buttigieg will meet with airline CEOs and senior executives to discuss the flight disruptions and cancellations, and find out how they plan to remedy the situations ahead of the July 4 holiday. It is unlikely that Buttigieg will demand changes to their businesses that will impact near-term profitability. But in an environment where airline margins are already under pressure, close scrutiny from Washington could lead to additional padding of schedules that would mean fewer flights flown and bring down total revenue.
The airlines are expected to push for more investment into the Federal Aviation Administration (FAA), including greater air traffic control capacity, according to a Reuters report. The FAA in May announced plans to add staffing to its Jacksonville, Fla., traffic control center to try to relieve pressure on an area that is particularly vulnerable to delays in the summer due to thunderstorms.
Now what
After airlines weathered the near-death experience of the pandemic and juggled through a period of high costs and uncertain scheduling as air travelers slowly returned, a meeting with Washington officials is unlikely to rattle airline executives. But the complaints and the government's call to action on delays do highlight what a difficult balancing act the airlines are attempting.
The airlines took on a lot of debt earlier during the pandemic, and had hoped to use strong demand this summer to rebuild their balance sheets and begin to shift back toward normalcy. Labor issues and soaring fuel prices have complicated that equation. Airline execs also now need to worry that either high inflation will cut into consumer spending on pricey items like plane tickets, or that the Federal Reserve's efforts to fight inflation will cause a recession. Either of those scenarios would threaten travel demand in the second half of this year.
For investors who are willing to stay patient and look beyond these storm clouds, long-term demand for air travel looks solid, and the industry -- thanks to its consolidation over the last decade -- is better positioned to survive cyclical downturns and reward investors over time. Of the U.S. carriers, Delta and Southwest appear most likely to emerge ahead of the pack, and look like the best choices to invest in.
But be warned that this recovery is going to take years to play out, and if 2022 has taught us anything, it is that there is no shortage of things that can go wrong. Right now, there is no reason to rush in and buy these companies on a dip, which explains why these stocks are underperforming on a day like Thursday, when fear is dominating the market.
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Lou Whiteman has positions in Delta Air Lines. 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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At the close of trading, American Airlines Group (NASDAQ: AAL) was down 8.6%, United Airlines Holdings (NASDAQ: UAL) fell 8.2%, Delta Air Lines (NYSE: DAL) dropped 7.4%, and Southwest Airlines (NYSE: LUV) and JetBlue Airways (NASDAQ: JBLU) were down just over 6%. Pent-up demand for travel is filling planes this summer, but higher labor costs, a pilot shortage, and soaring fuel prices have combined to limit carriers' profitability. Secretary Buttigieg will meet with airline CEOs and senior executives to discuss the flight disruptions and cancellations, and find out how they plan to remedy the situations ahead of the July 4 holiday.
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At the close of trading, American Airlines Group (NASDAQ: AAL) was down 8.6%, United Airlines Holdings (NASDAQ: UAL) fell 8.2%, Delta Air Lines (NYSE: DAL) dropped 7.4%, and Southwest Airlines (NYSE: LUV) and JetBlue Airways (NASDAQ: JBLU) were down just over 6%. Airlines canceled more than 2,700 flights over the busy Memorial Day weekend, and schedules continue to be impacted by weather delays, crew shortages, and COVID-mandated crew quarantines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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At the close of trading, American Airlines Group (NASDAQ: AAL) was down 8.6%, United Airlines Holdings (NASDAQ: UAL) fell 8.2%, Delta Air Lines (NYSE: DAL) dropped 7.4%, and Southwest Airlines (NYSE: LUV) and JetBlue Airways (NASDAQ: JBLU) were down just over 6%. Airlines canceled more than 2,700 flights over the busy Memorial Day weekend, and schedules continue to be impacted by weather delays, crew shortages, and COVID-mandated crew quarantines. Now what After airlines weathered the near-death experience of the pandemic and juggled through a period of high costs and uncertain scheduling as air travelers slowly returned, a meeting with Washington officials is unlikely to rattle airline executives.
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At the close of trading, American Airlines Group (NASDAQ: AAL) was down 8.6%, United Airlines Holdings (NASDAQ: UAL) fell 8.2%, Delta Air Lines (NYSE: DAL) dropped 7.4%, and Southwest Airlines (NYSE: LUV) and JetBlue Airways (NASDAQ: JBLU) were down just over 6%. Those factors are also complicating flight scheduling. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them!
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3478.0
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2022-06-16 00:00:00 UTC
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Airline CEOs, Buttigieg to hold virtual meeting Thursday -sources
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https://www.nasdaq.com/articles/airline-ceos-buttigieg-to-hold-virtual-meeting-thursday-sources-0
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By David Shepardson
WASHINGTON, June 16 (Reuters) - Major airline chief executives and other senior leaders will hold a virtual meeting on Thursday with U.S. Transportation Secretary Pete Buttigieg on the busy travel season and recent flight disruptions, sources told Reuters.
Two U.S. senators recently raised concerns about flight delays and cancellations over the Memorial Day holiday weekend.
Buttigieg wants to discuss with regional and large airline leaders "plans to ensure safe and reliable service this summer, including their plans to ensure this service over" the July 4 holiday, the sources said.
Travelers are bracing for a difficult summer as airlines expect record demand and are still rebuilding staff after thousands of workers left the industry during the COVID-19 pandemic.
On Friday, the U.S. airline industry told Congress the Federal Aviation Administration (FAA) must ensure the nation's airspace can handle rising air travel demand, according to a letter obtained by Reuters earlier this week.
Trade group Airlines for America said that "airlines are aggressively pursuing several options to align schedules with workforce availability" but added "the FAA must also work to ensure that the air traffic control system is capable of meeting demand."
Last month, Democratic Senators Richard Blumenthal and Edward Markey asked A4A, which represents American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others for answers after more than 2,700 Memorial Day weekend flights were canceled.
The senators said "while some flight cancellations are unavoidable, the sheer number of delays and cancellations this past weekend raises questions about airline decision-making."
The FAA declined to comment on whether it will take part in Buttigieg's meeting but in May said it would boost authorized air traffic control staff at its Jacksonville, Florida, center after bad weather and space launches have snarled flights.
The FAA noted that flight operations at many Florida airports have exceeded prepandemic levels and will meet with users of Florida airspace "throughout the summer."
The senators separately asked Buttigieg to detail steps his office was "taking to hold airlines accountable for serious disruptions and to ensure consumers are wholly and justly compensated.
"The flying public deserves the same safety and reliability as before the pandemic, especially since American taxpayers invested $48 billion to keep aviation workers employed so the nation could maintain its high standard of air service," USDOT's Annie Petsonk wrote airlines last week in a June 8 email inviting them to a meeting, seen by Reuters.
"The department stands ready to support your work to address these challenges. In May, the FAA began making changes to its air traffic controller staffing to support the increased demand in the country. The agency is also working with airlines to expand the use of underutilized routes, especially in Florida."
(Reporting by David Shepardson; editing by Jason Neely 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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Last month, Democratic Senators Richard Blumenthal and Edward Markey asked A4A, which represents American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others for answers after more than 2,700 Memorial Day weekend flights were canceled. On Friday, the U.S. airline industry told Congress the Federal Aviation Administration (FAA) must ensure the nation's airspace can handle rising air travel demand, according to a letter obtained by Reuters earlier this week. The FAA declined to comment on whether it will take part in Buttigieg's meeting but in May said it would boost authorized air traffic control staff at its Jacksonville, Florida, center after bad weather and space launches have snarled flights.
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Last month, Democratic Senators Richard Blumenthal and Edward Markey asked A4A, which represents American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others for answers after more than 2,700 Memorial Day weekend flights were canceled. Two U.S. senators recently raised concerns about flight delays and cancellations over the Memorial Day holiday weekend. Buttigieg wants to discuss with regional and large airline leaders "plans to ensure safe and reliable service this summer, including their plans to ensure this service over" the July 4 holiday, the sources said.
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Last month, Democratic Senators Richard Blumenthal and Edward Markey asked A4A, which represents American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others for answers after more than 2,700 Memorial Day weekend flights were canceled. By David Shepardson WASHINGTON, June 16 (Reuters) - Major airline chief executives and other senior leaders will hold a virtual meeting on Thursday with U.S. Transportation Secretary Pete Buttigieg on the busy travel season and recent flight disruptions, sources told Reuters. Trade group Airlines for America said that "airlines are aggressively pursuing several options to align schedules with workforce availability" but added "the FAA must also work to ensure that the air traffic control system is capable of meeting demand."
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Last month, Democratic Senators Richard Blumenthal and Edward Markey asked A4A, which represents American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others for answers after more than 2,700 Memorial Day weekend flights were canceled. On Friday, the U.S. airline industry told Congress the Federal Aviation Administration (FAA) must ensure the nation's airspace can handle rising air travel demand, according to a letter obtained by Reuters earlier this week. The FAA noted that flight operations at many Florida airports have exceeded prepandemic levels and will meet with users of Florida airspace "throughout the summer."
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3479.0
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2022-06-15 00:00:00 UTC
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Airline Stock Roundup: CPA's May Traffic, RYAAY's Air-Fare Update, AAL in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-cpas-may-traffic-ryaays-air-fare-update-aal-in-focus
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With U.S. airlines grappling with pilot shortage, American Airlines AAL has received encouraging tidings on the labor front, in the past week. Two regional carriers, Piedmont Airlines and Envoy Air, owned by AAL will hike the pay of their pilots by 50% through the August end. Latin American carrier Copa Holdings CPA reported a decline in May traffic from the comparable period’s level in 2019.
With air fares moving north as airlines try to cover the increasing fuel expenses, European carrier Ryanair Holdings’ RYAAY CEO expects ticket prices this summer to increase in the 7- 9% range from the pre-pandemic levels. An expansion update was also available from JetBlue Airways JBLU in the past week.
Read the last Airline Roundup here.
Recap of the Latest Top Stories
1.Following the pay hike, hourly wages at Piedmont Airlines for first officers in their first year wil be increased to $90 an hour from $51. For first-year captains, pay will be raised to $146 an hour from $78. Piedmont’s CEO said that the airline could even extend temporary hikes if needed. Piedmont’s pilots are moving to American Airlines’ mainline operations, leaving the carrier with a shortage of 25 pilots each month. Envoy Air reached a similar agreement with its pilots’ union to offer a 50% premium to pilots’ hourly rates through the end of August 2024. Envoy continues seeing about 80 of its pilots quitting every year to take up work in other airlines. The regional carrier has been hiring about 60 pilots a year for a while. On materialization, the increased remuneration will make the pilots of these two airlines the highest paid staff among the U.S. regional airlines.
2. Copa Holdings’ traffic, measured in revenue passenger miles (RPMs), declined 4.2% to 1.72 billion in May 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 3.7% from the 2019 level to 2 billion. With traffic declining more than the amount of capacity contraction, load factor (percentage of seats filled with passengers) deteriorated 40 basis points (bps) to 85.7% in May.
3. To cater to the increasing air-travel demand, JetBlue launched operations in Canada with daily nonstop flights from New York’s John F. Kennedy International Airport (JFK) to Vancouver International Airport. With international travel demand recovering, the service is expected to attract substantial traffic this summer. This expansion is part of JetBlue’s Northeast Alliance with American Airlines. JBLU is also expected to launch service to Vancouver from Boston, MA as part of this partnership. JBLU, currently carrying a Zacks Rank #3 (Hold), is operating this new Vancouver service on an Airbus A320 aircraft featuring more legroom in coach, free broadband internet, and complimentary snacks and soft drinks.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
4. Per a Reuters report, Ryanair’s CEOMichael O'Leary said that with strengthening bookings, management expects summer fares to increase 7-9% from the pre-pandemic levels. O'Leary said that it expects load factor (percentage of seats filled by passengers) to nearly reach the pre-pandemic levels of around 94% in June. "And July, August, and September look very strong with higher load factors and also higher fares," he added. Ryanair expects airport management groups to "iron out" staffing crisis through recruitment to enhance travelers’ experience over the summer.
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 all airline stocks have traded in the red over the past week. The NYSE ARCA Airline Index has declined 13.6% to $57.01. Over the past six months, the NYSE ARCA Airline Index has plummeted 26%.
What's Next in the Airline Space?
With air-travel demand increasing, more expansion-related updates from carriers may be available in the coming days.
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Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Copa Holdings, S.A. (CPA): 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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With U.S. airlines grappling with pilot shortage, American Airlines AAL has received encouraging tidings on the labor front, in the past week. Two regional carriers, Piedmont Airlines and Envoy Air, owned by AAL will hike the pay of their pilots by 50% through the August end. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report With U.S. airlines grappling with pilot shortage, American Airlines AAL has received encouraging tidings on the labor front, in the past week. Two regional carriers, Piedmont Airlines and Envoy Air, owned by AAL will hike the pay of their pilots by 50% through the August end.
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With U.S. airlines grappling with pilot shortage, American Airlines AAL has received encouraging tidings on the labor front, in the past week. American Airlines Group Inc. (AAL): Free Stock Analysis Report Two regional carriers, Piedmont Airlines and Envoy Air, owned by AAL will hike the pay of their pilots by 50% through the August end.
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Two regional carriers, Piedmont Airlines and Envoy Air, owned by AAL will hike the pay of their pilots by 50% through the August end. American Airlines Group Inc. (AAL): Free Stock Analysis Report With U.S. airlines grappling with pilot shortage, American Airlines AAL has received encouraging tidings on the labor front, in the past week.
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3480.0
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2022-06-15 00:00:00 UTC
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Moody's warns Chile constitution uncertainty could hit mining investment
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https://www.nasdaq.com/articles/moodys-warns-chile-constitution-uncertainty-could-hit-mining-investment
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SANTIAGO, June 15 (Reuters) - Investment in Chile's mining sector could face gridlock if political uncertainty over a new constitution is not resolved, ratings agency Moody's said on Wednesday, a reflection of industry concerns in the world's top copper producing nation.
Chile is redrafting its market-orientated constitution which dates back to the military dictatorship of Augusto Pinochet. It will hold a nationwide referendum vote on the new text in September, a process which has been hit by flagging support.
Some of the more contentious proposals around mining have already been rejected by the constitutional assembly, but the text would still likely strengthen environmental regulation, which could impact mining of copper and lithium.
Moody's analyst Barbara Mattos said that without assurances for mining firms, investment may dry up. Global miners like BHP BHP.AX, Anglo American AAL.L and Glencore GLEN.L operate in Chile alongside state mining giant Codelco.
"Unless the rules are clear we won't see an increase in investment in Chile even though the country has some of the best mining deposits in the world, particularly copper," Mattos said.
"A very important factor will be the legislation to regulate all the norms established by the constitution, which will possibly bring about changes in the conditions for making long-term investments."
For example, Mattos explained that a ban on activities around glaciers could potentially impact 20-25% of current copper production and some expansion projects, although the ultimate impact remains unclear.
This and other regulations, such as prioritizing water use for human consumption over mining, will lead to higher costs. Added to planned higher levies on mining, this would reduce cash flows for companies, Mattos added.
(Reporting by Fabián Andrés Cambero; Writing by Carolina Pulice; Editing by Richard Chang)
((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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Global miners like BHP BHP.AX, Anglo American AAL.L and Glencore GLEN.L operate in Chile alongside state mining giant Codelco. SANTIAGO, June 15 (Reuters) - Investment in Chile's mining sector could face gridlock if political uncertainty over a new constitution is not resolved, ratings agency Moody's said on Wednesday, a reflection of industry concerns in the world's top copper producing nation. "Unless the rules are clear we won't see an increase in investment in Chile even though the country has some of the best mining deposits in the world, particularly copper," Mattos said.
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Global miners like BHP BHP.AX, Anglo American AAL.L and Glencore GLEN.L operate in Chile alongside state mining giant Codelco. SANTIAGO, June 15 (Reuters) - Investment in Chile's mining sector could face gridlock if political uncertainty over a new constitution is not resolved, ratings agency Moody's said on Wednesday, a reflection of industry concerns in the world's top copper producing nation. Some of the more contentious proposals around mining have already been rejected by the constitutional assembly, but the text would still likely strengthen environmental regulation, which could impact mining of copper and lithium.
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Global miners like BHP BHP.AX, Anglo American AAL.L and Glencore GLEN.L operate in Chile alongside state mining giant Codelco. SANTIAGO, June 15 (Reuters) - Investment in Chile's mining sector could face gridlock if political uncertainty over a new constitution is not resolved, ratings agency Moody's said on Wednesday, a reflection of industry concerns in the world's top copper producing nation. Some of the more contentious proposals around mining have already been rejected by the constitutional assembly, but the text would still likely strengthen environmental regulation, which could impact mining of copper and lithium.
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Global miners like BHP BHP.AX, Anglo American AAL.L and Glencore GLEN.L operate in Chile alongside state mining giant Codelco. SANTIAGO, June 15 (Reuters) - Investment in Chile's mining sector could face gridlock if political uncertainty over a new constitution is not resolved, ratings agency Moody's said on Wednesday, a reflection of industry concerns in the world's top copper producing nation. Chile is redrafting its market-orientated constitution which dates back to the military dictatorship of Augusto Pinochet.
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3481.0
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2022-06-15 00:00:00 UTC
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Anglo American to stop using fresh water at Los Bronces mine in Chile by 2030
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https://www.nasdaq.com/articles/anglo-american-to-stop-using-fresh-water-at-los-bronces-mine-in-chile-by-2030
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SANTIAGO, June 15 (Reuters) - Mining giant Anglo American AAL.L said on Wednesday that it planned to stop using fresh water at its Los Bronces copper mine in Chile by 2030, instead switching to desalinated and recycled water amid a protracted drought in the Andean country.
The miner is trying to convince a government committee, led by the environment minister, to extend its mining permit at the site near the capital Santiago after being rejected by the country's environmental permit evaluator earlier this year.
The $3.3 billion project has been criticized for its impact on water availability in the populous capital region.
"By the end of the decade and, as I see it, much earlier, more towards the middle of this decade, we will be in the situation of not needing fresh water for Los Bronces," Aaron Puna, Anglo American's Chile chief, said in a statement.
"Not only will there be no impact on the Metropolitan region, but what we will be able to do is meet, perhaps, one of the main objectives of the country."
The firm emphasized it viewed the project in the Andes mountains as viable and said it is willing to work with authorities to implement any environmental measures needed.
Los Bronces is part of Anglo American Sur, majority owned by Anglo American along with a Codelco-Mitsui consortium and Mitsubishi. Chile is the world's top copper producer and Los Bronces has an annual production capacity of over 300,000 tonnes.
Environmental advocates have criticized the Los Bronces project because of its potential impact on a local glacier as well as on water availability for the region. The company is seeking to extend the life of the mine through 2036.
(Report by Fabian Cambero Editing by Alistair Bell)
((fabian.cambero@thomsonreuters.com; twitter: @fab_reuters; +569 62479675;))
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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SANTIAGO, June 15 (Reuters) - Mining giant Anglo American AAL.L said on Wednesday that it planned to stop using fresh water at its Los Bronces copper mine in Chile by 2030, instead switching to desalinated and recycled water amid a protracted drought in the Andean country. The firm emphasized it viewed the project in the Andes mountains as viable and said it is willing to work with authorities to implement any environmental measures needed. Chile is the world's top copper producer and Los Bronces has an annual production capacity of over 300,000 tonnes.
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SANTIAGO, June 15 (Reuters) - Mining giant Anglo American AAL.L said on Wednesday that it planned to stop using fresh water at its Los Bronces copper mine in Chile by 2030, instead switching to desalinated and recycled water amid a protracted drought in the Andean country. The $3.3 billion project has been criticized for its impact on water availability in the populous capital region. "By the end of the decade and, as I see it, much earlier, more towards the middle of this decade, we will be in the situation of not needing fresh water for Los Bronces," Aaron Puna, Anglo American's Chile chief, said in a statement.
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SANTIAGO, June 15 (Reuters) - Mining giant Anglo American AAL.L said on Wednesday that it planned to stop using fresh water at its Los Bronces copper mine in Chile by 2030, instead switching to desalinated and recycled water amid a protracted drought in the Andean country. "By the end of the decade and, as I see it, much earlier, more towards the middle of this decade, we will be in the situation of not needing fresh water for Los Bronces," Aaron Puna, Anglo American's Chile chief, said in a statement. Environmental advocates have criticized the Los Bronces project because of its potential impact on a local glacier as well as on water availability for the region.
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SANTIAGO, June 15 (Reuters) - Mining giant Anglo American AAL.L said on Wednesday that it planned to stop using fresh water at its Los Bronces copper mine in Chile by 2030, instead switching to desalinated and recycled water amid a protracted drought in the Andean country. The miner is trying to convince a government committee, led by the environment minister, to extend its mining permit at the site near the capital Santiago after being rejected by the country's environmental permit evaluator earlier this year. The $3.3 billion project has been criticized for its impact on water availability in the populous capital region.
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3482.0
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2022-06-15 00:00:00 UTC
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EXCLUSIVE-FAA urges airlines to act as wireless carriers plan 5G signal boost
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AAL
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https://www.nasdaq.com/articles/exclusive-faa-urges-airlines-to-act-as-wireless-carriers-plan-5g-signal-boost-0
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By David Shepardson
WASHINGTON, June 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Wednesday urged the chief executives of major U.S. airlines to move quickly to address risks from a 5G wireless rollout, in a bid to avoid potential disruptions at key airports from next month.
Acting FAA Administrator Billy Nolen said in a letter reviewed by Reuters that AT&T T.N and Verizon VZ.N want to boost C-Band 5G services around some airports starting in July after previously delaying their rollout.
Concerns that the 5G service could interfere with airplane altimeters, which give data on a plane's height above the ground and are crucial for bad-weather landing, led to disruptions at some U.S. airports earlier this year.
Nolen urged airlines to urgently press ahead with retrofitting radio altimeters, saying "there are no guarantees that all large markets will retain the current (safeguards)."
He warned that as wireless carriers boost signals some "less capable aircraft" may be unable to access certain airports without altimeter retrofits.
Airlines CEOs on Jan. 17 had warned of an impending "catastrophic" aviation crisis that could have grounded almost all traffic because of the 5G deployment.
Under White House pressure, AT&T and Verizon days later in January agreed to delay through July 5 switching on some wireless towers and depowering others near airports just hours before the planned Jan. 19 deployment.
That date, Nolen wrote Wednesday "is rapidly approaching."
In recent months, the FAA has been urging airlines to complete retrofits of some airplane radio altimeters that could face interference from C-Band 5G wireless service by the end of 2022.
The FAA said it is in the early stages of working with AT&T and Verizon "to identify markets where either a new tower or an increase in signal power will cause the least disruption."
Nolen said in three recent rounds of talks, industry officials identified a pathway to retrofit the first two groups of aircraft with the most vulnerable radio altimeters by the end of 2022. Another round of talks are set for Friday.
"We are working toward an equally aggressive schedule that would necessitate the completion of retrofits for the third and largest group in 2023," Nolen said.
He added that "as the situation stands, Verizon and AT&T plan to pursue a full rollout of their networks by the end of 2023."
Another 19 companies "are expected to enter the market during that timeframe, hopefully employing some level of the voluntary mitigations that have enabled our progress so far," he added.
Verizon said it was working with the FAA, Federal Communications Commission (FCC) and aviation industry, and was confident it would achieve "robust deployment of C-Band without significant disruptions to the traveling public."
Airlines for America, an industry trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said the industry recognized the need "to implement a permanent solution, while continuing to ensure the highest level of safety."
AT&T did not comment.
Some airlines have raised concerns about paying to retrofit altimeters only to face paying for a replacement in a few years.
Nolen said "without additional action by the FCC to cap transmissions at currently attainable power levels, the prospect of additional disruption remains and we are not in any position to offer assurances."
(Reporting by David Shepardson; Editing by Richard Pullin)
((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, an industry trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said the industry recognized the need "to implement a permanent solution, while continuing to ensure the highest level of safety." By David Shepardson WASHINGTON, June 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Wednesday urged the chief executives of major U.S. airlines to move quickly to address risks from a 5G wireless rollout, in a bid to avoid potential disruptions at key airports from next month. Acting FAA Administrator Billy Nolen said in a letter reviewed by Reuters that AT&T T.N and Verizon VZ.N want to boost C-Band 5G services around some airports starting in July after previously delaying their rollout.
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Airlines for America, an industry trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said the industry recognized the need "to implement a permanent solution, while continuing to ensure the highest level of safety." By David Shepardson WASHINGTON, June 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Wednesday urged the chief executives of major U.S. airlines to move quickly to address risks from a 5G wireless rollout, in a bid to avoid potential disruptions at key airports from next month. In recent months, the FAA has been urging airlines to complete retrofits of some airplane radio altimeters that could face interference from C-Band 5G wireless service by the end of 2022.
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Airlines for America, an industry trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said the industry recognized the need "to implement a permanent solution, while continuing to ensure the highest level of safety." By David Shepardson WASHINGTON, June 15 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Wednesday urged the chief executives of major U.S. airlines to move quickly to address risks from a 5G wireless rollout, in a bid to avoid potential disruptions at key airports from next month. In recent months, the FAA has been urging airlines to complete retrofits of some airplane radio altimeters that could face interference from C-Band 5G wireless service by the end of 2022.
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Airlines for America, an industry trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said the industry recognized the need "to implement a permanent solution, while continuing to ensure the highest level of safety." In recent months, the FAA has been urging airlines to complete retrofits of some airplane radio altimeters that could face interference from C-Band 5G wireless service by the end of 2022. Nolen said in three recent rounds of talks, industry officials identified a pathway to retrofit the first two groups of aircraft with the most vulnerable radio altimeters by the end of 2022.
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3483.0
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2022-06-15 00:00:00 UTC
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EXCLUSIVE-FAA urges airlines to act as wireless carriers plan 5G signal boost
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AAL
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https://www.nasdaq.com/articles/exclusive-faa-urges-airlines-to-act-as-wireless-carriers-plan-5g-signal-boost
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WASHINGTON, June 15 (Reuters) - The acting head of the U.S. Federal Aviation Administration (FAA) on Wednesday urged the chief executives of major U.S. airlines to move quickly to address risks of C-Band 5G interference with sensitive airplane electronics.
Acting FAA Administrator Billy Nolen said in a letter seen by Reuters that AT&T T.N and Verizon VZ.N want to boost 5G service around some airports starting next month. He urged airlines to urgently press ahead with retrofitting radio altimeters saying "there are no guarantees that all large markets will retain the current safeguards."
Nolen warned that as wireless carriers boost signals some "less capable aircraft" may be unable to access certain airports without filter retrofits.
(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, June 15 (Reuters) - The acting head of the U.S. Federal Aviation Administration (FAA) on Wednesday urged the chief executives of major U.S. airlines to move quickly to address risks of C-Band 5G interference with sensitive airplane electronics. Acting FAA Administrator Billy Nolen said in a letter seen by Reuters that AT&T T.N and Verizon VZ.N want to boost 5G service around some airports starting next month. He urged airlines to urgently press ahead with retrofitting radio altimeters saying "there are no guarantees that all large markets will retain the current safeguards."
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WASHINGTON, June 15 (Reuters) - The acting head of the U.S. Federal Aviation Administration (FAA) on Wednesday urged the chief executives of major U.S. airlines to move quickly to address risks of C-Band 5G interference with sensitive airplane electronics. Acting FAA Administrator Billy Nolen said in a letter seen by Reuters that AT&T T.N and Verizon VZ.N want to boost 5G service around some airports starting next month. He urged airlines to urgently press ahead with retrofitting radio altimeters saying "there are no guarantees that all large markets will retain the current safeguards."
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WASHINGTON, June 15 (Reuters) - The acting head of the U.S. Federal Aviation Administration (FAA) on Wednesday urged the chief executives of major U.S. airlines to move quickly to address risks of C-Band 5G interference with sensitive airplane electronics. Acting FAA Administrator Billy Nolen said in a letter seen by Reuters that AT&T T.N and Verizon VZ.N want to boost 5G service around some airports starting next month. (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, June 15 (Reuters) - The acting head of the U.S. Federal Aviation Administration (FAA) on Wednesday urged the chief executives of major U.S. airlines to move quickly to address risks of C-Band 5G interference with sensitive airplane electronics. Acting FAA Administrator Billy Nolen said in a letter seen by Reuters that AT&T T.N and Verizon VZ.N want to boost 5G service around some airports starting next month. He urged airlines to urgently press ahead with retrofitting radio altimeters saying "there are no guarantees that all large markets will retain the current safeguards."
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3484.0
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2022-06-14 00:00:00 UTC
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Boeing delivered 29 737 MAX jets in May, notches widebody orders
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AAL
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https://www.nasdaq.com/articles/boeing-delivered-29-737-max-jets-in-may-notches-widebody-orders
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nan
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By Eric M. Johnson
SEATTLE, June 14 (Reuters) - Boeing Co BA.N said on Tuesday it had delivered 29 of its cash-earning 737 MAX single-aisle jets to customers in May, bringing in needed funds as the U.S. planemaker worked through supply chain and regulatory hurdles.
Boeing also handed over to customers the fourth-to-last of its hump-backed 747s, a freighter to Atlas Air AAWW.O, and three 777 freighters, reflecting strong demand for cargo capacity, it said.
The closely watched monthly orders and deliveries snapshot comes as Boeing kicks off media briefings at its Seattle-area facilities this week in preparation for Britain's Farnborough Airshow next month.
As Boeing prepares for the industry's annual showcase, the embattled U.S. planemaker is scrambling to resolve supply chain bottlenecks that have curbed 737 production and to win approval to resume deliveries of its 787 Dreamliner, among other challenges gripping its jet portfolio.
The 35 overall deliveries in May was more than double the 17 jets it handed over in the same month a year ago. That brings the delivery total for the first five months of the year to 165 aircraft, according to the data released on Tuesday.
Deliveries are a closely watched metric for investors since airlines hand over the bulk of the money for an order when they pick up their planes at Boeing.
Boeing booked 23 gross orders, 17 of which were for widebody aircraft. Among those, German carrier Lufthansa LHAG.DE ordered seven 787 Dreamliners and seven 777-8F freighters - the cargo version of its forthcoming 777X.
Aircraft leasing tie-up Bain Capital Griffin ordered five 737 MAX jets for Indian carrier Akasa Air in a sale-leaseback deal that saw Akasa cancel the same number of planes from its initial order, Boeing said. Boeing also sold another 737 MAX to American Airlines AAL.O.
After nine canceled orders, including Norwegian Air scrapping four 787 Dreamliners, and instances where buyers swapped jet models, orders for May stood at 14, Boeing said.
For the year through May, Boeing booked 236 gross orders, or 171 after cancellations and conversions, it said. After accounting adjustments, Boeing recorded 107 net orders for the year so far.
Overall, Boeing's order backlog rose to 4,192, Boeing said.
(Reporting by Eric M. Johnson in Seattle Editing by Chris Reese and Bernadette Baum)
((Eric.m.johnson@thomsonreuters.com; +1 206 707 1218; Follow me on Twitter @ByEricMJohnson;))
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 also sold another 737 MAX to American Airlines AAL.O. By Eric M. Johnson SEATTLE, June 14 (Reuters) - Boeing Co BA.N said on Tuesday it had delivered 29 of its cash-earning 737 MAX single-aisle jets to customers in May, bringing in needed funds as the U.S. planemaker worked through supply chain and regulatory hurdles. As Boeing prepares for the industry's annual showcase, the embattled U.S. planemaker is scrambling to resolve supply chain bottlenecks that have curbed 737 production and to win approval to resume deliveries of its 787 Dreamliner, among other challenges gripping its jet portfolio.
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Boeing also sold another 737 MAX to American Airlines AAL.O. The closely watched monthly orders and deliveries snapshot comes as Boeing kicks off media briefings at its Seattle-area facilities this week in preparation for Britain's Farnborough Airshow next month. Boeing booked 23 gross orders, 17 of which were for widebody aircraft.
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Boeing also sold another 737 MAX to American Airlines AAL.O. Aircraft leasing tie-up Bain Capital Griffin ordered five 737 MAX jets for Indian carrier Akasa Air in a sale-leaseback deal that saw Akasa cancel the same number of planes from its initial order, Boeing said. After nine canceled orders, including Norwegian Air scrapping four 787 Dreamliners, and instances where buyers swapped jet models, orders for May stood at 14, Boeing said.
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Boeing also sold another 737 MAX to American Airlines AAL.O. That brings the delivery total for the first five months of the year to 165 aircraft, according to the data released on Tuesday. Deliveries are a closely watched metric for investors since airlines hand over the bulk of the money for an order when they pick up their planes at Boeing.
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3485.0
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2022-06-14 00:00:00 UTC
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American Airlines' (AAL) Regional Pilots to Get 50% Pay Hike
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-regional-pilots-to-get-50-pay-hike
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Amid continued rise in air-travel demand, airlines are struggling with pilot shortages. To tackle this situation, two American Airlines AAL-owned regional carriers — Piedmont Airlines and Envoy Air — will hike their pilot pays by 50% through the end of August 2024, a CNBC report stated. This would make pilots of these two airlines the highest paid among U.S. regional airlines.
American Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
At Piedmont Airlines, hourly wages for first officers in their first year would be increased to $90 an hour from $51. For first-year captains, pay will be raised to $146 an hour from $78. Piedmont’s CEO said that the airline could even extend temporary hikes if needed.
American Airlines Group Inc. Price
American Airlines Group Inc. price | American Airlines Group Inc. Quote
Piedmont CEO, Eric Morgan, told CNBC, “Attrition of the regional pilots, particularly the captains, has really spiked to the point where we’re not able to put our fleet in the air.”
Piedmont’s pilots are moving to America Airlines’ mainline operations, leaving the carrier with a shortage of 25 pilots each month. Piedmont is also falling short of its target of hiring 40 pilots each month. Piedmont had approached the union for pay increases that were not within normal contract negotiations.
Envoy Air has reached a similar agreement with its pilots’ union to offer a 50% premium to pilots’ hourly rates through the end of August 2024. The CNBC report stated that Envoy has been seeing about 80 of its pilots leave in a year to take up work in other airlines. The regional carrier has been hiring about 60 pilots in a year.
During the peak of the pandemic in 2020, when air-travel demand dropped dramatically, airlines had urged their employees to take up early retirement packages. As a result, once demand started rebounding in 2021, they fell short of workers. Amid continued recovery in air-travel demand, airlines are now aggressively hiring staff.
Major U.S. carriers have lately been in talks with their labor unions regarding pay enhancements and other benefits. Recently Southwest Airlines LUV, sporting a Zacks Rank #1, announced that it has reached a tentative agreement for its Aircraft Appearance Technicians with the Aircraft Mechanics Fraternal Association , the union representing the company’s appearance technicians.
Southwest Airlines has approximately 170 Appearance Technicians. Per Adam Carlisle, vice president, LABOR Relations at Southwest Airlines, “This agreement rewards our Appearance Technicians for the contributions they make to our Company’s success. It’s also a result of the hard work exemplified by both Negotiating Committees, and we appreciate all of their efforts.”
Key Picks
Some stocks apart from the aforementioned LUV within the broader Transportation sector that investors can consider are as follows:
Star Bulk Carriers SBLK sports a Zacks Rank #1. The company's earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average surprise being 7.1%.
Shares of Star Bulk have gained more than 14% in a year.
Golar LNG Limited GLNG carries a Zacks Rank #2 (Buy). The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average surprise being 42.1%.
Shares of Golar LNG have rallied more than 65% in a year.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Star Bulk Carriers Corp. (SBLK): Free Stock Analysis Report
Golar LNG Limited (GLNG): 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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To tackle this situation, two American Airlines AAL-owned regional carriers — Piedmont Airlines and Envoy Air — will hike their pilot pays by 50% through the end of August 2024, a CNBC report stated. American Airlines Group Inc. (AAL): Free Stock Analysis Report Piedmont CEO, Eric Morgan, told CNBC, “Attrition of the regional pilots, particularly the captains, has really spiked to the point where we’re not able to put our fleet in the air.”
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To tackle this situation, two American Airlines AAL-owned regional carriers — Piedmont Airlines and Envoy Air — will hike their pilot pays by 50% through the end of August 2024, a CNBC report stated. American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines Group Inc. Price American Airlines Group Inc. price | American Airlines Group Inc. Quote
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To tackle this situation, two American Airlines AAL-owned regional carriers — Piedmont Airlines and Envoy Air — will hike their pilot pays by 50% through the end of August 2024, a CNBC report stated. American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines Group Inc. Price American Airlines Group Inc. price | American Airlines Group Inc. Quote
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To tackle this situation, two American Airlines AAL-owned regional carriers — Piedmont Airlines and Envoy Air — will hike their pilot pays by 50% through the end of August 2024, a CNBC report stated. American Airlines Group Inc. (AAL): Free Stock Analysis Report The regional carrier has been hiring about 60 pilots in a year.
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3486.0
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2022-06-13 00:00:00 UTC
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Notable Monday Option Activity: AAL, XOM, ADBE
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AAL
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-aal-xom-adbe
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 268,094 contracts has been traded thus far today, a contract volume which is representative of approximately 26.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 85.5% of AAL's average daily trading volume over the past month, of 31.4 million shares. Especially high volume was seen for the $14 strike put option expiring June 17, 2022, with 24,696 contracts trading so far today, representing approximately 2.5 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange:
Exxon Mobil Corp (Symbol: XOM) saw options trading volume of 208,328 contracts, representing approximately 20.8 million underlying shares or approximately 76.7% of XOM's average daily trading volume over the past month, of 27.2 million shares. Especially high volume was seen for the $100 strike call option expiring June 17, 2022, with 15,550 contracts trading so far today, representing approximately 1.6 million underlying shares of XOM. Below is a chart showing XOM's trailing twelve month trading history, with the $100 strike highlighted in orange:
And Adobe Inc (Symbol: ADBE) saw options trading volume of 21,397 contracts, representing approximately 2.1 million underlying shares or approximately 70.7% of ADBE's average daily trading volume over the past month, of 3.0 million shares. Particularly high volume was seen for the $357.50 strike put option expiring June 17, 2022, with 689 contracts trading so far today, representing approximately 68,900 underlying shares of ADBE. Below is a chart showing ADBE's trailing twelve month trading history, with the $357.50 strike highlighted in orange:
For the various different available expirations for AAL options, XOM options, or ADBE 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 $14 strike put option expiring June 17, 2022, with 24,696 contracts trading so far today, representing approximately 2.5 million underlying shares of AAL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 268,094 contracts has been traded thus far today, a contract volume which is representative of approximately 26.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 85.5% of AAL's average daily trading volume over the past month, of 31.4 million shares.
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Especially high volume was seen for the $14 strike put option expiring June 17, 2022, with 24,696 contracts trading so far today, representing approximately 2.5 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange: Exxon Mobil Corp (Symbol: XOM) saw options trading volume of 208,328 contracts, representing approximately 20.8 million underlying shares or approximately 76.7% of XOM's average daily trading volume over the past month, of 27.2 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 268,094 contracts has been traded thus far today, a contract volume which is representative of approximately 26.8 million underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 268,094 contracts has been traded thus far today, a contract volume which is representative of approximately 26.8 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange: Exxon Mobil Corp (Symbol: XOM) saw options trading volume of 208,328 contracts, representing approximately 20.8 million underlying shares or approximately 76.7% of XOM's average daily trading volume over the past month, of 27.2 million shares. That number works out to 85.5% of AAL's average daily trading volume over the past month, of 31.4 million shares.
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Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange: Exxon Mobil Corp (Symbol: XOM) saw options trading volume of 208,328 contracts, representing approximately 20.8 million underlying shares or approximately 76.7% of XOM's average daily trading volume over the past month, of 27.2 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 268,094 contracts has been traded thus far today, a contract volume which is representative of approximately 26.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 85.5% of AAL's average daily trading volume over the past month, of 31.4 million shares.
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3487.0
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2022-06-13 00:00:00 UTC
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Why Airline Stocks Are Falling Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-falling-today-1
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What happened
Wall Street is growing increasingly worried we are headed toward a recession, and stocks are being sold off as a result. Industries that are viewed as discretionary -- and so therefore easy to live without if consumers and businesses need to cut costs -- are getting hit harder than most.
Airlines fall on that list, and their stocks are deeply in the red on Monday. Shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) are each down more than 9% as of midday trading, while shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded down more than 5% apiece.
Brazil's Azul (NYSE: AZUL) also got caught up in the sell-off, down more than 10%.
So what
The best-case scenario that had airline stocks flying high coming into the year has been grounded indefinitely. After two years of losses due to the pandemic, airline investors were excited that pent-up demand for travel would refill carrier cash reserves, allowing the stocks to continue to gain altitude.
The demand has arrived on schedule, but a combination of labor shortages and higher fuel costs have limited airline expansion opportunities and squeezed margins. Planes are full but airlines are largely treading water.
The prospects of either further inflation or the Federal Reserve causing a recession while attempting to tame it creates a whole new level of uncertainty for the sector. Investors were already nervous about what will become of demand in September, when vacation season is largely over. The macroeconomic outlook is a new factor that could limit business travel in the second half of the year, crimping demand ahead of the holiday season.
While Azul is exposed primarily to South America, the stock trades in New York and tends to get caught up in U.S. airline moves. Azul and all of the airlines also face the threat of a new COVID-19 wave, which could lead to fresh restrictions on international travel.
Now what
I'm a big believer in the long-term future of air travel. A growing global middle class and an ever-shrinking world should provide ample demand for airlines in years to come, with the global trade group International Air Transport Association forecasting 2% to 3% annual growth over the next 20 years.
That said, there isn't much reason for investors to buy into these stocks today. The scars of the pandemic will take years to heal even without any added wounds caused by a potential recession. The industry's pilot shortage will lead to contracts with higher wages for years to come. Given the uncertainty about what lies up ahead -- and the extended time frame of a turnaround -- investors have little reason to get excited.
Of these stocks, Delta and Southwest appear the best positioned to complete a recovery ahead of the pack, and Azul is one of the top operators in Latin America. Investors able to buckle up and fly through turbulence will likely do well eventually, but they should plan on a long journey to get there. For most, there is no reason to board at this time.
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Lou Whiteman has positions in Delta Air Lines and Spirit Airlines. The Motley Fool has positions in and recommends 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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Shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) are each down more than 9% as of midday trading, while shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded down more than 5% apiece. After two years of losses due to the pandemic, airline investors were excited that pent-up demand for travel would refill carrier cash reserves, allowing the stocks to continue to gain altitude. The demand has arrived on schedule, but a combination of labor shortages and higher fuel costs have limited airline expansion opportunities and squeezed margins.
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Shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) are each down more than 9% as of midday trading, while shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded down more than 5% apiece. A growing global middle class and an ever-shrinking world should provide ample demand for airlines in years to come, with the global trade group International Air Transport Association forecasting 2% to 3% annual growth over the next 20 years. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) are each down more than 9% as of midday trading, while shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded down more than 5% apiece. After two years of losses due to the pandemic, airline investors were excited that pent-up demand for travel would refill carrier cash reserves, allowing the stocks to continue to gain altitude. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines.
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Shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) are each down more than 9% as of midday trading, while shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded down more than 5% apiece. Investors were already nervous about what will become of demand in September, when vacation season is largely over. That said, there isn't much reason for investors to buy into these stocks today.
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3488.0
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2022-06-13 00:00:00 UTC
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Airlines Get a Boost as U.S. Lifts COVID-19-Test Requirement
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https://www.nasdaq.com/articles/airlines-get-a-boost-as-u.s.-lifts-covid-19-test-requirement
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The Biden administration has dropped its COVID-testing requirement for inbound vaccinated international travelers, effective Jun 12, 12:01 a.m. The move follows pressure from airlines and the travel industry that have blamed testing requirements for suppressed international travel recovery.
The lifting of this last pandemic-related travel restriction (the rule has been in place since January 2021), just in time for the peak summer travel period, is expected to boost traffic for U.S. airlines, including Delta Air Lines DAL, American Airlines AAL, United Airlines UAL and Southwest Airlines LUV.
While the Centers for Disease Control and Prevention (“CDC”) does not find testing requirements necessary as of now, it will re-evaluate its decision after three months and if need be, will reimpose the same.
The CDC, however, recommends that travelers boarding a flight to the United States get tested for any infection no more than three days prior to departure and avoid traveling in case of sickness.
In a statement, Airlines for America president and CEO, Nicholas E. Calio, said, “Lifting this policy will help encourage and restore air travel to the United States, benefiting communities across the country that rely heavily on travel and tourism to support their local economies.”
In a statement, Delta said that it is “prepared to welcome international travelers to the United States this summer” following the lifting of pre-travel testing requirements for international visitors to the United States.
American Airlines said, “With the widespread availability of effective treatment options and vaccines, we believe this is the right time for this decision. We are eager to see more of our customers return to international travel.”
While domestic air-travel demand has nearly reached pre-pandemic levels, international travel is still lagging. The lifting of this pre-departure testing requirement for international visitors is expected to boost business as well as leisure international travel demand.
With upbeat travel demand, primarily on the domestic front, American Airlines recently improved its expectations for the second quarter of 2022. The carrier expects revenues to rise 11-13% from the second-quarter 2019 actuals (earlier expectation was an increase in the 6- 8% range). Total revenue per available seat miles (TRASM: a measure of unit revenue) is now anticipated to be 20-22%, higher than the second-quarter 2019 reading (earlier estimate was a 14-16% rise).
Driven by upbeat demand, American Airlines expects pre-tax margin, excluding net special items, in the 4-6% range compared with the 3-5% band expected earlier.
As air-travel demand continues to rebound, Delta now expects June quarter's adjusted total revenues to be fully restored to the 2019 level. Previously, the airline had expected the same to have recovered 93-97% from the 2019 level.
Delta now anticipates total unit revenues to increase seven to eight points from what it had initially expected. The upside is due to higher travel demand and pricing.
Southwest, sporting a Zacks Rank #1 (Strong Buy), has been seeing continued increase in bookings for the summer and a strong load factor (percentage of seats filled by passengers), owing to which it raised its second-quarter projections. For the second quarter, LUV now expects operating revenues to increase 12-15% from the comparable period in 2019. Previously, the company had expected the same to rise 8-12%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Southwest anticipates capacity, measured in available seat miles (ASMs), to decline 7% in the second quarter. The company expects cost per available seat mile (CASM), excluding fuel, to increase 14-18% in the current quarter from the comparable period in 2019.
United Airlines also improved its projections for the second quarter. UAL expects total revenue per available seat miles (TRASM: a measure of unit revenues) for second-quarter 2022 to increase in the 23-25% band from the second-quarter 2019 actuals. Per the previous forecast, provided while releasing first-quarter 2022 results, the metric was expected to increase roughly 17% from the second-quarter 2019 actuals.
United Airlines anticipates capacity to decline roughly 14% in the current quarter from the second-quarter 2019 levels (the earlier forecast had predicted a contraction of roughly 13%).
Wrapping Up
As coronavirus fears fade and travel restrictions ease, airlines are seeing continued improvement in air-travel demand, especially on the domestic front. The lifting of this last major travel restriction by the United States is expected to accelerate international travel recovery and pave the way for a full rebound in airlines. Despite rising ticket prices, thanks to the spike in fuel prices, consumer demand has remained unhampered.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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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The lifting of this last pandemic-related travel restriction (the rule has been in place since January 2021), just in time for the peak summer travel period, is expected to boost traffic for U.S. airlines, including Delta Air Lines DAL, American Airlines AAL, United Airlines UAL and Southwest Airlines LUV. American Airlines Group Inc. (AAL): Free Stock Analysis Report As air-travel demand continues to rebound, Delta now expects June quarter's adjusted total revenues to be fully restored to the 2019 level.
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The lifting of this last pandemic-related travel restriction (the rule has been in place since January 2021), just in time for the peak summer travel period, is expected to boost traffic for U.S. airlines, including Delta Air Lines DAL, American Airlines AAL, United Airlines UAL and Southwest Airlines LUV. American Airlines Group Inc. (AAL): Free Stock Analysis Report UAL expects total revenue per available seat miles (TRASM: a measure of unit revenues) for second-quarter 2022 to increase in the 23-25% band from the second-quarter 2019 actuals.
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The lifting of this last pandemic-related travel restriction (the rule has been in place since January 2021), just in time for the peak summer travel period, is expected to boost traffic for U.S. airlines, including Delta Air Lines DAL, American Airlines AAL, United Airlines UAL and Southwest Airlines LUV. American Airlines Group Inc. (AAL): Free Stock Analysis Report In a statement, Delta said that it is “prepared to welcome international travelers to the United States this summer” following the lifting of pre-travel testing requirements for international visitors to the United States.
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The lifting of this last pandemic-related travel restriction (the rule has been in place since January 2021), just in time for the peak summer travel period, is expected to boost traffic for U.S. airlines, including Delta Air Lines DAL, American Airlines AAL, United Airlines UAL and Southwest Airlines LUV. American Airlines Group Inc. (AAL): Free Stock Analysis Report Total revenue per available seat miles (TRASM: a measure of unit revenue) is now anticipated to be 20-22%, higher than the second-quarter 2019 reading (earlier estimate was a 14-16% rise).
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3489.0
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2022-06-13 00:00:00 UTC
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Zacks.com featured highlights American Airlines, Builders FirstSource, Caleres, Casey's General Stores and Commercial Metals
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AAL
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-american-airlines-builders-firstsource-caleres-caseys
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nan
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For Immediate Release
Chicago, IL – June 13, 2022 – Stocks in this week’s article are American Airlines AAL, Builders FirstSource BLDR, Caleres CAL, Casey's General Stores CASY and Commercial Metals Co. CMC.
5 Broker-Favorite Stocks to Keep a Close Watch On
That unprecedented volatility has gripped the U.S. market is an understatement. Factors like rising costs and sky-high inflation induced the Fed to aggressively tighten its monetary policy. Moreover, the oil price surge, mainly due to supply concerns emanating from the prolonged Russia-Ukraine war, also contributed to the market rout this year. As a result of the market mayhem, the S&P 500 — regarded as one of the finest reflections of the stock market as a whole — has declined 15.7% so far this year.
However, the erratic market behavior does not mean that investors should shun equities. So what's the way forward? One way is to follow the action of brokers, who are considered experts in the field of investing. In this regard, stocks like American Airlines, Builders FirstSource, Caleres, Casey's General Stores and Commercial Metals Co. should be on an investors' watchlist.
Brokers go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Since brokers follow the stocks under their coverage in great detail, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company.
Estimate revisions serve as an important pointer in determining the stock price. Naturally, paying heed to such well-researched information is a prudent choice for individual investors as they want to generate handsome returns from their portfolio of stocks, irrespective of the surrounding market conditions.
To take care of the earnings performance, we designed a screen based on improving analyst recommendations and upward estimate revisions over the last four weeks.
Revenue Performance Not to Be Overlooked
According to many market watchers, a revenue beat is more credible for a company than a mere earnings outperformance. Therefore, one must take the top-line performance into consideration as well while formulating a winning strategy. 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 passed the screen:
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 AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 61.1% upward. AAL currently carries a Zacks Rank #3 (Hold).
Builders FirstSource, based in Dallas, TX, manufactures and supplies building materials. BLDR has been benefiting from its focus on cost-management practices, strategic acquisitions and robust demand for a while, driven by solid housing, and repair and remodeling activities.
Builders FirstSource continues to focus on investing in innovations and enhancing digital solutions for its customers. BLDR currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for BLDR's current-year earnings has been revised 19.4% upward over the past 60 days.
Caleres : Caleres, currently sporting a Zacks Rank #1 (Strong Buy), is a leading footwear retailer and wholesaler in the United States, China, Canada, China and Guam. CAL operates through Famous Footwear and Brand Portfolio segments. This Saint Louis, MO-based player steadily benefits from positive consumer demand trends and an accelerated recovery in the footwear marketplace, which continue to aid its sales. The momentum in the Famous Footwear brand is expected to contribute meaningfully to sales growth.
Caleres has an excellent surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 62.6%. You can see the complete list of today's Zacks #1 Rank stocks here.
Casey's General Stores is one of the leading convenience store retailers in the United States with a strong brick-and-mortar footprint. The acquisition of Buchanan Energy, completed last year, is an added positive as it supplemented 94 retail stores and 79 dealer locations to CASY's business. CASY's self-distribution model and strength in Prepared Food business also bode well.
Casey's is currently Zacks #3 Ranked. Shares of CASY have gained 11.2% over the past three months. The Zacks Consensus Estimate for CASY's current-quarter earnings has been revised 7.48% upward over the past 60 days.
Commercial Metals presently has a Zacks Rank of 1 and an expected earnings growth rate of 147.9% for the current fiscal year. The consensus estimate for CMC's current-quarter earnings has been revised 7.5% upward over the past 60 days.
Commercial Metals' earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the mark once. CMC has a trailing four-quarter earnings surprise of roughly 16%, on average. Shares of CMC have gained around 20% over the past six months.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
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/1937267/5-broker-favorite-stocks-to-keep-a-close-watch-on
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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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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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
Builders FirstSource, Inc. (BLDR): Free Stock Analysis Report
Commercial Metals Company (CMC): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Casey's General Stores, Inc. (CASY): Free Stock Analysis Report
Caleres, Inc. (CAL): 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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For Immediate Release Chicago, IL – June 13, 2022 – Stocks in this week’s article are American Airlines AAL, Builders FirstSource BLDR, Caleres CAL, Casey's General Stores CASY and Commercial Metals Co. CMC. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 61.1% upward.
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For Immediate Release Chicago, IL – June 13, 2022 – Stocks in this week’s article are American Airlines AAL, Builders FirstSource BLDR, Caleres CAL, Casey's General Stores CASY and Commercial Metals Co. CMC. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 61.1% upward.
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For Immediate Release Chicago, IL – June 13, 2022 – Stocks in this week’s article are American Airlines AAL, Builders FirstSource BLDR, Caleres CAL, Casey's General Stores CASY and Commercial Metals Co. CMC. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 61.1% upward. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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For Immediate Release Chicago, IL – June 13, 2022 – Stocks in this week’s article are American Airlines AAL, Builders FirstSource BLDR, Caleres CAL, Casey's General Stores CASY and Commercial Metals Co. CMC. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 61.1% upward.
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3490.0
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2022-06-10 00:00:00 UTC
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Chile government to consider copper producers' cost variations in new royalty bill -official
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AAL
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https://www.nasdaq.com/articles/chile-government-to-consider-copper-producers-cost-variations-in-new-royalty-bill-official
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nan
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SANTIAGO, June 10 (Reuters) - The disparity in costs faced by different copper mining companies in Chile will be taken into account in an industry-wide royalty planned by the government to help finance its ambitious social agenda, the undersecretary of Mining said on Friday.
A study by the national Chilean Copper Commission (Cochilco) revealed that the cash costs for Chile's largest operators rose by 10 cents per pound in year-on-year terms in 2021, due to the lower quality of the ore as well as higher energy and transportation prices.
The document also states that smaller operators, consisting of those who produce less than 150,000 tonnes annually, have been the most affected by these changes.
"One of the important things that has been salvaged from everything that has been presented is the diversity in the mining sector," Undersecretary Willy Kracht said at a conference while delivering the report.
"It seems to me that it is tremendously relevant to put this on the table when we are in the middle of discussions on the royalty. It seems that it is an element that must be considered," he added.
In addition, Cochilco pointed out costs will likely rise again this year due to the crisis in Ukraine, and due to the persistent drought, which could lower production across some areas in Chile, the world's largest producer of copper.
The government of President Gabriel Boric has made increasing tax collection on mining activity part of its broad tax reform plan, the full details of which should be announced in the coming weeks.
The project could replace or modify a controversial clause being considered in Congress, which the industry has harshly criticized for not considering the operational performance of each site.
In addition to the state-owned Codelco, global mining companies such as BHP BHP.AX, Glencore Plc GLEN.L, Anglo American AAL.L, and Antofagasta Plc ANTO.L operate in Chile.
(Reporting by Fabián Andrés Cambero in Santiago Writing by Isabel Woodford Editing by Matthew Lewis)
((fabian.cambero@thomsonreuters.com; twitter: @fab_reuters; +569 62479675;))
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 to the state-owned Codelco, global mining companies such as BHP BHP.AX, Glencore Plc GLEN.L, Anglo American AAL.L, and Antofagasta Plc ANTO.L operate in Chile. A study by the national Chilean Copper Commission (Cochilco) revealed that the cash costs for Chile's largest operators rose by 10 cents per pound in year-on-year terms in 2021, due to the lower quality of the ore as well as higher energy and transportation prices. The document also states that smaller operators, consisting of those who produce less than 150,000 tonnes annually, have been the most affected by these changes.
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In addition to the state-owned Codelco, global mining companies such as BHP BHP.AX, Glencore Plc GLEN.L, Anglo American AAL.L, and Antofagasta Plc ANTO.L operate in Chile. SANTIAGO, June 10 (Reuters) - The disparity in costs faced by different copper mining companies in Chile will be taken into account in an industry-wide royalty planned by the government to help finance its ambitious social agenda, the undersecretary of Mining said on Friday. A study by the national Chilean Copper Commission (Cochilco) revealed that the cash costs for Chile's largest operators rose by 10 cents per pound in year-on-year terms in 2021, due to the lower quality of the ore as well as higher energy and transportation prices.
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In addition to the state-owned Codelco, global mining companies such as BHP BHP.AX, Glencore Plc GLEN.L, Anglo American AAL.L, and Antofagasta Plc ANTO.L operate in Chile. SANTIAGO, June 10 (Reuters) - The disparity in costs faced by different copper mining companies in Chile will be taken into account in an industry-wide royalty planned by the government to help finance its ambitious social agenda, the undersecretary of Mining said on Friday. A study by the national Chilean Copper Commission (Cochilco) revealed that the cash costs for Chile's largest operators rose by 10 cents per pound in year-on-year terms in 2021, due to the lower quality of the ore as well as higher energy and transportation prices.
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In addition to the state-owned Codelco, global mining companies such as BHP BHP.AX, Glencore Plc GLEN.L, Anglo American AAL.L, and Antofagasta Plc ANTO.L operate in Chile. SANTIAGO, June 10 (Reuters) - The disparity in costs faced by different copper mining companies in Chile will be taken into account in an industry-wide royalty planned by the government to help finance its ambitious social agenda, the undersecretary of Mining said on Friday. A study by the national Chilean Copper Commission (Cochilco) revealed that the cash costs for Chile's largest operators rose by 10 cents per pound in year-on-year terms in 2021, due to the lower quality of the ore as well as higher energy and transportation prices.
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3491.0
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2022-06-10 00:00:00 UTC
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U.S. to drop COVID testing for incoming international air travelers
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AAL
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https://www.nasdaq.com/articles/u.s.-to-drop-covid-testing-for-incoming-international-air-travelers
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nan
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nan
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By David Shepardson
WASHINGTON, June 10 (Reuters) - The United States will drop from Sunday a 17-month-old requirement that people arriving in the country by air test negative for COVID-19, an official said, a move that follows intense lobbying by the airlines and the travel industry.
A formal announcement will be made later on Friday. The step comes as the busy summer travel season is kicking off and air carriers were already preparing for record demand. Airlines have said many Americans are not traveling internationally because of concerns they will test positive and be stranded abroad.
The Centers for Disease Control and Prevention (CDC) has determined that the science and data show the pre-departure COVID tests are no longer necessary, said the official, who declined to be named.
The measure will come into effect at 12:01 a.m. on Sunday and the CDC will reassess the decision in 90 days, the official said.
The United States has required incoming international air travelers to provide pre-departure negative tests since January 2021. In December the CDC tightened the rules to require travelers to test negative within one day before flights to the United States rather than three days.
The CDC has not required testing for land border crossings.
The official said, "If there is a need to reinstate a pre-departure testing requirement -- including due to a new, concerning variant -- CDC will not hesitate to act."
Many countries in Europe and elsewhere have already dropped testing requirements.
The CDC is still requiring most non-U.S. citizens to be vaccinated against COVID to travel to the United States.
Two officials told Reuters the administration had considered lifting the testing rules only for vaccinated travelers.
Airlines for America, a trade group representing major airlines, said "lifting this policy will help encourage and restore air travel to the United States."
IATA, the world's biggest airline trade group, welcomed what it called "great news" that the administration is "removing the ineffective pre-departure COVID test for travel to the US."
In April, a federal judge declared the CDC's requirements that travelers wear masks on airplanes and in transit hubs like airports unlawful and the administration stopped enforcing it. The Justice Department has appealed the order but no decision is likely before fall at the earliest.
'NONSENSICAL'
American Airlines AAL.O Chief Executive Robert Isom said last week at a conference that the testing requirements were "nonsensical" and were depressing leisure and business travel.
Many lawmakers had pressed the Biden administration to lift the testing rules, recently contacting senior White House officials to make the case.
"I’m glad CDC suspended the burdensome coronavirus testing requirement for international travelers," Nevada Senator Catherine Cortez Masto said.
Raymond James said in a research note that lifting the restrictions "is an important catalyst for international travel."
Delta Air Lines DAL.N Chief Executive Ed Bastian told Reuters last week that dropping the requirements will boost travel, noting that 44 of 50 countries Delta serves do not require testing.
U.S. Travel Association CEO Roger Dow said Friday's move will "accelerate the recovery of the U.S. travel industry," which was hard hit by the pandemic.
(Reporting by David Shepardson Editing by Chizu Nomiyama, Mark Porter and Frances Kerry)
((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 Chief Executive Robert Isom said last week at a conference that the testing requirements were "nonsensical" and were depressing leisure and business travel. By David Shepardson WASHINGTON, June 10 (Reuters) - The United States will drop from Sunday a 17-month-old requirement that people arriving in the country by air test negative for COVID-19, an official said, a move that follows intense lobbying by the airlines and the travel industry. IATA, the world's biggest airline trade group, welcomed what it called "great news" that the administration is "removing the ineffective pre-departure COVID test for travel to the US."
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American Airlines AAL.O Chief Executive Robert Isom said last week at a conference that the testing requirements were "nonsensical" and were depressing leisure and business travel. The United States has required incoming international air travelers to provide pre-departure negative tests since January 2021. Two officials told Reuters the administration had considered lifting the testing rules only for vaccinated travelers.
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American Airlines AAL.O Chief Executive Robert Isom said last week at a conference that the testing requirements were "nonsensical" and were depressing leisure and business travel. By David Shepardson WASHINGTON, June 10 (Reuters) - The United States will drop from Sunday a 17-month-old requirement that people arriving in the country by air test negative for COVID-19, an official said, a move that follows intense lobbying by the airlines and the travel industry. In December the CDC tightened the rules to require travelers to test negative within one day before flights to the United States rather than three days.
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American Airlines AAL.O Chief Executive Robert Isom said last week at a conference that the testing requirements were "nonsensical" and were depressing leisure and business travel. By David Shepardson WASHINGTON, June 10 (Reuters) - The United States will drop from Sunday a 17-month-old requirement that people arriving in the country by air test negative for COVID-19, an official said, a move that follows intense lobbying by the airlines and the travel industry. The CDC is still requiring most non-U.S. citizens to be vaccinated against COVID to travel to the United States.
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3492.0
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2022-06-10 00:00:00 UTC
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5 Broker-Favorite Stocks to Keep a Close Watch on
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AAL
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https://www.nasdaq.com/articles/5-broker-favorite-stocks-to-keep-a-close-watch-on
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nan
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nan
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That unprecedented volatility has gripped the U.S. market is an understatement. Factors like rising costs and sky-high inflation induced the Fed to aggressively tighten its monetary policy. Moreover, the oil price surge, mainly due to supply concerns emanating from the prolonged Russia-Ukraine war, also contributed to the market rout this year. As a result of the market mayhem, the S&P 500 — regarded as one of the finest reflections of the stock market as a whole — has declined 15.7% so far this year.
However, the erratic market behavior does not mean that investors should shun equities. So what’s the way forward? One way is to follow the action of brokers, who are considered experts in the field of investing. In this regard, stocks like American Airlines AAL, Builders FirstSource BLDR, Caleres CAL, Casey's General Stores CASY and Commercial Metals Company CMC should be on an investors’ watchlist.
Brokers go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Since brokers follow the stocks under their coverage in great detail, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. Estimate revisions serve as an important pointer in determining the stock price. Naturally, paying heed to such well-researched information is a prudent choice for individual investors as they want to generate handsome returns from their portfolio of stocks, irrespective of the surrounding market conditions.
To take care of the earnings performance, we designed a screen based on improving analyst recommendations and upward estimate revisions over the last four weeks.
Revenue Performance Not to be Overlooked
According to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance. Therefore, one must take the top-line performance into consideration as well while formulating a winning strategy. 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.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
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: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This eliminates the ADR and Canadian stocks.
Here are five of the 10 stocks that passed the screen:
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 AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 61.1% upward. AAL currently carries a Zacks Rank #3 (Hold).
Builders FirstSource, based in Dallas, TX, manufactures and supplies building materials. BLDR has been benefiting from its focus on cost-management practices, strategic acquisitions and robust demand for a while, driven by solid housing, and repair and remodeling activities.
Builders FirstSource continues to focus on investing in innovations and enhancing digital solutions for its customers. BLDR currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for BLDR’s current-year earnings has been revised 19.4% upward over the past 60 days.
Caleres : Caleres, currently sporting a Zacks Rank #1 (Strong Buy), is a leading footwear retailer and wholesaler in the United States, China, Canada, China and Guam. CAL operates through Famous Footwear and Brand Portfolio segments. This Saint Louis, MO-based player steadily benefits from positive consumer demand trends and an accelerated recovery in the footwear marketplace, which continue to aid its sales. The momentum in the Famous Footwear brand is expected to contribute meaningfully to sales growth.
Caleres has an excellent surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 62.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's General Stores is one of the leading convenience store retailers in the United States with a strong brick-and-mortar footprint. The acquisition of Buchanan Energy, completed last year, is an added positive as it supplemented 94 retail stores and 79 dealer locations to CASY's business. CASY’s self-distribution model and strength in Prepared Food business also bode well.
Casey’s is currently Zacks #3 Ranked. Shares of CASY have gained 11.2% over the past three months. The Zacks Consensus Estimate for CASY’s current-quarter earnings has been revised 7.48% upward over the past 60 days.
Commercial Metals presently has a Zacks Rank of 1 and an expected earnings growth rate of 147.9% for the current fiscal year. The consensus estimate for CMC's current-quarter earnings has been revised 7.5% upward over the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the mark once. CMC has a trailing four-quarter earnings surprise of roughly 16%, on average. Shares of CMC have gained around 20% over the past six months.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
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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
Builders FirstSource, Inc. (BLDR): Free Stock Analysis Report
Commercial Metals Company (CMC): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Casey's General Stores, Inc. (CASY): Free Stock Analysis Report
Caleres, Inc. (CAL): 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 this regard, stocks like American Airlines AAL, Builders FirstSource BLDR, Caleres CAL, Casey's General Stores CASY and Commercial Metals Company CMC should be on an investors’ watchlist. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 61.1% upward.
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In this regard, stocks like American Airlines AAL, Builders FirstSource BLDR, Caleres CAL, Casey's General Stores CASY and Commercial Metals Company CMC should be on an investors’ watchlist. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 61.1% upward.
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In this regard, stocks like American Airlines AAL, Builders FirstSource BLDR, Caleres CAL, Casey's General Stores CASY and Commercial Metals Company CMC should be on an investors’ watchlist. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 61.1% upward. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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In this regard, stocks like American Airlines AAL, Builders FirstSource BLDR, Caleres CAL, Casey's General Stores CASY and Commercial Metals Company CMC should be on an investors’ watchlist. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 61.1% upward. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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3493.0
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2022-06-10 00:00:00 UTC
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JetBlue CEO 'optimistic' airline can acquire Spirit
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AAL
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https://www.nasdaq.com/articles/jetblue-ceo-optimistic-airline-can-acquire-spirit
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nan
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nan
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By Rajesh Kumar Singh and David Shepardson
CHICAGO/WASHINGTON, June 10 (Reuters) - JetBlue Airways Corp JBLU.O Chief Executive Robin Hayes said Friday he is "optimistic" he can reach a deal to acquire Spirit Airlines Inc SAVE.N.
"We're pleased that there now seems to be a genuine desire from the Spirit board to engage with us," Hayes told Reuters late Friday in an interview. "We're going to continue to engage with the Spirit board over the next few weeks."
Florida-based ultra-low-cost carrier Spirit is the subject of a bidding war between JetBlue and Frontier Group Holdings Inc ULCC.O. Spirit has repeatedly rejected JetBlue's offer, saying it has a low likelihood of winning approval from U.S. regulators.
Spirit postponed a shareholder vote on its merger with Frontier to June 30 from June 10. Hayes said he thinks the majority of Spirit shareholders believe JetBlue's offer is superior and "that's why they had to delay the vote."
JPMorgan said in an analyst report 'Thursday that a deal by JetBlue to buy Spirit has become a "growing probability."
Both bidders view Spirit as an opportunity to expand their domestic footprints at a time when the U.S. airline industry is dogged by persistent labor and aircraft shortages. Either of the two deals would create the fifth-largest U.S. airline.
JetBlue has sweetened its offer for Spirit by increasing its reverse break-up fee by $150 million to $350 million, raising the overall value of its proposed deal to $3.4 billion. The New York-based airline has offered to pay a portion of the fee upfront after Spirit shareholders approve the deal.
Frontier has agreed to pay Spirit a break-up fee of $250 million but declined to raise its bid of $21.10 a share in cash and stock at Friday's closing price in response to JetBlue's revised offer.
Hayes said the revised offers illustrate "the benefit of the competitive process that the (Spirit) board should have run in the first place. Things that have happened in the last two weeks could have happened months ago."
JetBlue's "Northeast Alliance" (NEA) partnership with American Airlines AAL.O is a sticking point with Spirit.
The Justice Department sued JetBlue and American to unwind the partnership. Spirit has asked JetBlue to drop the partnership if it wants a deal, but JetBlue declined.
JPMorgan said JetBlue would be willing to trade away the NEA partnership for a Spirit merger.
"Mergers are transformational by design," the note said.
(Reporting by Rajesh Kumar Singh and David Shepardson; Editing by Susan Fenton and David Gregorio)
((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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JetBlue's "Northeast Alliance" (NEA) partnership with American Airlines AAL.O is a sticking point with Spirit. By Rajesh Kumar Singh and David Shepardson CHICAGO/WASHINGTON, June 10 (Reuters) - JetBlue Airways Corp JBLU.O Chief Executive Robin Hayes said Friday he is "optimistic" he can reach a deal to acquire Spirit Airlines Inc SAVE.N. Both bidders view Spirit as an opportunity to expand their domestic footprints at a time when the U.S. airline industry is dogged by persistent labor and aircraft shortages.
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JetBlue's "Northeast Alliance" (NEA) partnership with American Airlines AAL.O is a sticking point with Spirit. By Rajesh Kumar Singh and David Shepardson CHICAGO/WASHINGTON, June 10 (Reuters) - JetBlue Airways Corp JBLU.O Chief Executive Robin Hayes said Friday he is "optimistic" he can reach a deal to acquire Spirit Airlines Inc SAVE.N. Frontier has agreed to pay Spirit a break-up fee of $250 million but declined to raise its bid of $21.10 a share in cash and stock at Friday's closing price in response to JetBlue's revised offer.
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JetBlue's "Northeast Alliance" (NEA) partnership with American Airlines AAL.O is a sticking point with Spirit. By Rajesh Kumar Singh and David Shepardson CHICAGO/WASHINGTON, June 10 (Reuters) - JetBlue Airways Corp JBLU.O Chief Executive Robin Hayes said Friday he is "optimistic" he can reach a deal to acquire Spirit Airlines Inc SAVE.N. Frontier has agreed to pay Spirit a break-up fee of $250 million but declined to raise its bid of $21.10 a share in cash and stock at Friday's closing price in response to JetBlue's revised offer.
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JetBlue's "Northeast Alliance" (NEA) partnership with American Airlines AAL.O is a sticking point with Spirit. The New York-based airline has offered to pay a portion of the fee upfront after Spirit shareholders approve the deal. Frontier has agreed to pay Spirit a break-up fee of $250 million but declined to raise its bid of $21.10 a share in cash and stock at Friday's closing price in response to JetBlue's revised offer.
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3494.0
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2022-06-10 00:00:00 UTC
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JPMorgan sees 'growing probability' of a Spirit-JetBlue deal
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AAL
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https://www.nasdaq.com/articles/jpmorgan-sees-growing-probability-of-a-spirit-jetblue-deal
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nan
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By Rajesh Kumar Singh
CHICAGO, June 10 (Reuters) - Spirit Airlines Inc's SAVE.N acquisition by JetBlue Airways Corp JBLU.O has become a "growing probability", according to analysts at JPMorgan.
Florida-based ultra-low-cost carrier Spirit is the subject of a bidding war between JetBlue and Frontier Group Holdings Inc ULCC.O.
Both bidders view Spirit as an opportunity to expand their domestic footprints at a time when the U.S. airline industry is dogged by persistent labor and aircraft shortages. Either of the two deals would create the fifth-largest U.S. airline.
"...a merger outcome between Spirit and JetBlue is a growing probability and may overtake the likelihood of a Frontier deal," the JPMorgan analysts said in a note published on Thursday.
The comments came days after Spirit postponed a shareholder vote on its merger with Frontier to June 30 from June 10.
JetBlue has sweetened its offer for Spirit by increasing its reverse break-up fee by $150 million to $350 million, raising the overall value of its proposed deal to $3.4 billion. The New York-based airline has also offered to pay a portion of the fee upfront after Spirit shareholders approve the deal.
Frontier has agreed to pay Spirit a break-up fee of $250 million. However, it declined to raise its bid in response to JetBlue's revised offer.
Shareholder advisory firm Institutional Shareholder Services (ISS) has urged Spirit shareholders to vote against the deal with Frontier as it reckons JetBlue's deal offers them better value. But if Frontier opts to match JetBlue's break-up fee, ISS said the shareholders can back its deal.
Spirit has repeatedly rejected JetBlue's offer, saying it has a low likelihood of winning approval from U.S. regulators.
JetBlue's "Northeast Alliance" (NEA) partnership with American Airlines AAL.O is a sticking point with Spirit.
The Justice Department has sued JetBlue and American to unwind the partnership. Spirit has asked JetBlue to drop the partnership if it wants a deal, but JetBlue has, thus far, declined.
The JPMorgan analysts said JetBlue would be willing to trade away the NEA partnership for a merger with Spirit.
"Mergers are transformational by design," they said.
(Reporting by Rajesh Kumar Singh; Editing by Susan Fenton)
((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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JetBlue's "Northeast Alliance" (NEA) partnership with American Airlines AAL.O is a sticking point with Spirit. By Rajesh Kumar Singh CHICAGO, June 10 (Reuters) - Spirit Airlines Inc's SAVE.N acquisition by JetBlue Airways Corp JBLU.O has become a "growing probability", according to analysts at JPMorgan. Both bidders view Spirit as an opportunity to expand their domestic footprints at a time when the U.S. airline industry is dogged by persistent labor and aircraft shortages.
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JetBlue's "Northeast Alliance" (NEA) partnership with American Airlines AAL.O is a sticking point with Spirit. By Rajesh Kumar Singh CHICAGO, June 10 (Reuters) - Spirit Airlines Inc's SAVE.N acquisition by JetBlue Airways Corp JBLU.O has become a "growing probability", according to analysts at JPMorgan. JetBlue has sweetened its offer for Spirit by increasing its reverse break-up fee by $150 million to $350 million, raising the overall value of its proposed deal to $3.4 billion.
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JetBlue's "Northeast Alliance" (NEA) partnership with American Airlines AAL.O is a sticking point with Spirit. "...a merger outcome between Spirit and JetBlue is a growing probability and may overtake the likelihood of a Frontier deal," the JPMorgan analysts said in a note published on Thursday. Shareholder advisory firm Institutional Shareholder Services (ISS) has urged Spirit shareholders to vote against the deal with Frontier as it reckons JetBlue's deal offers them better value.
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JetBlue's "Northeast Alliance" (NEA) partnership with American Airlines AAL.O is a sticking point with Spirit. By Rajesh Kumar Singh CHICAGO, June 10 (Reuters) - Spirit Airlines Inc's SAVE.N acquisition by JetBlue Airways Corp JBLU.O has become a "growing probability", according to analysts at JPMorgan. The New York-based airline has also offered to pay a portion of the fee upfront after Spirit shareholders approve the deal.
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3495.0
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2022-06-09 00:00:00 UTC
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Airline Stock Roundup: ALK, AAL's Upbeat Q2 Revenue Views, SAVE, GOL in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-alk-aals-upbeat-q2-revenue-views-save-gol-in-focus
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With air-travel demand increasing by the day as reflected in the northbound trend in bookings, American Airlines AAL and Alaska Air Group ALK provided an improved view for their respective second-quarter 2022 revenues. AAL and ALK thus join other U.S. carriers in raising the second-quarter 2022 revenues as discussed in the previous week’s write-up.
Also, driven by an improved air-travel demand situation, Brazilian carrier Gol Linhas Aéreas Inteligentes GOL reported upbeat traffic numbers for May. In the latest development on the awaited takeover of Spirit Airlines SAVE, SAVE pushed back its shareholders’ vote on the deal with Frontier Group Holdings ULCC to Jun 30 from Jun 10. Per management, "The special meeting was postponed to allow the Spirit Board of Directors to continue discussions with Spirit stockholders, Frontier and JetBlue Airways." Notably, both JetBlue JBLU and Frontier submitted their proposals to take over Spirit.
Recap of the Latest Top Stories
1.On the back of upbeat air-travel demand and favorable pricing, American Airlines, currently carrying a Zacks Rank #3 (Hold), expects total revenues to rise between 11% and 13% from the second-quarter 2019 actuals (earlier expectation was an increase in the 6- 8% range). Total revenue per available seat miles (TRASM: a measure of unit revenue) is now anticipated to be 20-22% higher than the second-quarter 2019 reading (earlier estimate was a 14-16% rise). Driven by upbeat demand, the pre-tax margin, excluding net special items, is anticipated in the 4-6% range compared with the 3-5% band expected earlier. Due to high oil price, the current-quarter average fuel cost per gallon forecast is raised to the $3.92-$3.97 range from the $3.59-$3.64 band expected earlier.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Alaska Air currently expects total revenues to increase 12-14% from the second-quarter 2019 actuals. Earlier expectation was for a 5-8% increase. Driven by upbeat demand, load factor (% of seats filled with passengers) is anticipated in the 87-88% range (earlier expectation was in the 85-88% band). Revenue passengers are likely to be down in the 9-10% band. Earlier expectation was for a 10-12% decrease. Capacity is expected to decline in the 7-9% range (earlier forecast called for a 6-9% fall). Due to high oil price, the current-quarter economic fuel cost per gallon forecast is raised to the $3.65-$3.68 range from the $3.25-$3.30 band expected earlier. ALK’s management is of the view that the revenue strength is offsetting increases in oil prices. Total non-operating expenses in the June quarter are still expected in the $7-9 million range.
3. In May 2022, consolidated traffic at Gol Linhas surged 97.1% year over year. To match the increased demand situation, GOL is expanding capacity. In the same month, capacity grew 124.5% year over year. GOL carried 91% more passengers last month from the year-ago levels. Upbeat traffic in its domestic markets is leading to the rosy scenario on a consolidated basis. In May, domestic traffic and capacity improved 82.3% and 110%, respectively. On the domestic front, 84.3% more passengers boarded GOL’s flights in May.
4. JetBlue continues to pursue its interest in acquiring Spirit Airlines. Despite being turned down twice, JBLU yet again submitted an “improved proposal” to SAVE’s board to acquire the latter’s all outstanding shares. Per the enhanced bid, JetBlue is offering to pay a reverse break-up fee of $350 million ($3.20 per Spirit Airlines share) in case the deal fails to materialize due to antitrust concerns. This is higher than its initial offer of a $200-million reverse break-up fee. It is also more than Frontier’s offer to pay a reverse termination fee of $250 million.
JetBlue also said that it will prepay $1.50 per share in cash (approximately $164 million) of the reverse break-up fee as cash dividend to Spirit Airlines’ shareholders as soon as they vote in favor of the merger deal. With this, SAVE’s shareholders will receive $31.50 per share in cash, consisting of $30 per share in cash at the time of the transaction’s close and the prepayment of $1.50 per share of the reverse break-up fee.
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 have traded in the red over the past week. The NYSE ARCA Airline Index has dipped 2.7% to $68.56. Over the past six months, the NYSE ARCA Airline Index has declined 16.5%.
What's Next in the Airline Space?
Stay tuned for further updates on the impending takeover of Spirit Airlines.
Profiting from the Metaverse, The 3rd Internet Boom (Free Report):
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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
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): 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.
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 air-travel demand increasing by the day as reflected in the northbound trend in bookings, American Airlines AAL and Alaska Air Group ALK provided an improved view for their respective second-quarter 2022 revenues. AAL and ALK thus join other U.S. carriers in raising the second-quarter 2022 revenues as discussed in the previous week’s write-up. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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With air-travel demand increasing by the day as reflected in the northbound trend in bookings, American Airlines AAL and Alaska Air Group ALK provided an improved view for their respective second-quarter 2022 revenues. AAL and ALK thus join other U.S. carriers in raising the second-quarter 2022 revenues as discussed in the previous week’s write-up. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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With air-travel demand increasing by the day as reflected in the northbound trend in bookings, American Airlines AAL and Alaska Air Group ALK provided an improved view for their respective second-quarter 2022 revenues. AAL and ALK thus join other U.S. carriers in raising the second-quarter 2022 revenues as discussed in the previous week’s write-up. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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With air-travel demand increasing by the day as reflected in the northbound trend in bookings, American Airlines AAL and Alaska Air Group ALK provided an improved view for their respective second-quarter 2022 revenues. AAL and ALK thus join other U.S. carriers in raising the second-quarter 2022 revenues as discussed in the previous week’s write-up. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3496.0
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2022-06-09 00:00:00 UTC
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S.Africa's oldest private airline in liquidation after it fails to get funds
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AAL
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https://www.nasdaq.com/articles/s.africas-oldest-private-airline-in-liquidation-after-it-fails-to-get-funds-0
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By Promit Mukherjee
JOHANNESBURG, June 9 (Reuters) - South Africa's oldest private airline Comair will stop operations permanently after its bankruptcy protection lawyers on Thursday filed an application to liquidate the company which had failed to secure funding to stay airborne after being impacted severely by global pandemic-related travel restrictions.
The end of the company, whose neon green aircraft under the low-cost kulula.com carrier had dotted tarmacs across the country's airports, comes after two years of interventions by bankruptcy protection lawyers, investors and employees to save the 75-year old airline.
"We did our utmost to secure the funding, but when we were unable to do so had no option to lodge the application," Richard Ferguson, the company's business rescue practitioner, a category of lawyer hired as administrators to save a company from liquidation, said in a statement.
"It is an extremely sad day for the company, its employees, its customers and South African aviation."
Comair, along with the national carrier South African Airways, were the two hardest hit domestic airlines after the COVID-19 pandemic forced countries to seal international borders.
Tourism minister Lindiwe Sisulu said the airline's closure would have a negative impact on the sector.
"We hope the grounding of Comair flights does not result in other airlines raising their prices," she said in a statement.
In November 2020, its board members and executives agreed to pump in 500 million rand ($32.78 million) of equity as part of a rescue plan.
However, South Africa's 'red listing' by foreign nations due to the Omicron variant of the coronavirus, the suspension of flights in March due to safety reasons and rising crude prices meant a more immediate infusion of funds to keep it flying, its administrator said.
Comair's employees and customers who held bookings or were owed refunds will now become creditors of the company, its administrator said.
($1 = 15.2538 rand)
(Reporting by Promit Mukherjee Additional reporting by Bhargav Acharya Editing by Bernadette Baum)
((promit.mukherjee@thomsonreuters.com; +27 10 346 1093;))
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 Promit Mukherjee JOHANNESBURG, June 9 (Reuters) - South Africa's oldest private airline Comair will stop operations permanently after its bankruptcy protection lawyers on Thursday filed an application to liquidate the company which had failed to secure funding to stay airborne after being impacted severely by global pandemic-related travel restrictions. The end of the company, whose neon green aircraft under the low-cost kulula.com carrier had dotted tarmacs across the country's airports, comes after two years of interventions by bankruptcy protection lawyers, investors and employees to save the 75-year old airline. Comair, along with the national carrier South African Airways, were the two hardest hit domestic airlines after the COVID-19 pandemic forced countries to seal international borders.
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By Promit Mukherjee JOHANNESBURG, June 9 (Reuters) - South Africa's oldest private airline Comair will stop operations permanently after its bankruptcy protection lawyers on Thursday filed an application to liquidate the company which had failed to secure funding to stay airborne after being impacted severely by global pandemic-related travel restrictions. The end of the company, whose neon green aircraft under the low-cost kulula.com carrier had dotted tarmacs across the country's airports, comes after two years of interventions by bankruptcy protection lawyers, investors and employees to save the 75-year old airline. ($1 = 15.2538 rand) (Reporting by Promit Mukherjee Additional reporting by Bhargav Acharya Editing by Bernadette Baum) ((promit.mukherjee@thomsonreuters.com; +27 10 346 1093;)) 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 Promit Mukherjee JOHANNESBURG, June 9 (Reuters) - South Africa's oldest private airline Comair will stop operations permanently after its bankruptcy protection lawyers on Thursday filed an application to liquidate the company which had failed to secure funding to stay airborne after being impacted severely by global pandemic-related travel restrictions. The end of the company, whose neon green aircraft under the low-cost kulula.com carrier had dotted tarmacs across the country's airports, comes after two years of interventions by bankruptcy protection lawyers, investors and employees to save the 75-year old airline. "We did our utmost to secure the funding, but when we were unable to do so had no option to lodge the application," Richard Ferguson, the company's business rescue practitioner, a category of lawyer hired as administrators to save a company from liquidation, said in a statement.
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By Promit Mukherjee JOHANNESBURG, June 9 (Reuters) - South Africa's oldest private airline Comair will stop operations permanently after its bankruptcy protection lawyers on Thursday filed an application to liquidate the company which had failed to secure funding to stay airborne after being impacted severely by global pandemic-related travel restrictions. The end of the company, whose neon green aircraft under the low-cost kulula.com carrier had dotted tarmacs across the country's airports, comes after two years of interventions by bankruptcy protection lawyers, investors and employees to save the 75-year old airline. "We did our utmost to secure the funding, but when we were unable to do so had no option to lodge the application," Richard Ferguson, the company's business rescue practitioner, a category of lawyer hired as administrators to save a company from liquidation, said in a statement.
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3497.0
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2022-06-09 00:00:00 UTC
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Interesting AAL Put And Call Options For July 29th
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-july-29th
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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 July 29th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 29th contracts and identified one put and one call contract of particular interest.
The put contract at the $15.00 strike price has a current bid of $1.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $15.00, but will also collect the premium, putting the cost basis of the shares at $14.00 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $15.79/share today.
Because the $15.00 strike represents an approximate 5% 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 6.67% return on the cash commitment, or 48.67% 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 $15.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $16.50 strike price has a current bid of 89 cents. If an investor was to purchase shares of AAL stock at the current price level of $15.79/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $16.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.13% if the stock gets called away at the July 29th 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 $16.50 strike highlighted in red:
Considering the fact that the $16.50 strike represents an approximate 4% 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 5.64% boost of extra return to the investor, or 41.15% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $15.79) to be 53%. 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 $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 4% 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 July 29th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 4% 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 July 29th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 29th 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 $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 4% 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 July 29th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 29th 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 $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 4% 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 July 29th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 29th contracts and identified one put and one call contract of particular interest.
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3498.0
|
2022-06-09 00:00:00 UTC
|
U.S. government antitrust lawsuit against American Airlines, JetBlue to go forward, judge says
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AAL
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https://www.nasdaq.com/articles/u.s.-government-antitrust-lawsuit-against-american-airlines-jetblue-to-go-forward-judge-0
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nan
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nan
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By Diane Bartz
WASHINGTON, June 9 (Reuters) - A U.S. judge said on Thursday that the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O would go forward.
A trial in the case has been set for Sept. 26.
In its lawsuit filed in September in Boston, the government asked Judge Leo Sorokin to order the airlines to end their "Northeast Alliance" partnership, saying it would lead to higher fares in busy Northeastern airports.
The agreement allows American and JetBlue to sell each other's flights in their New York-area and Boston networks and link frequent flyer programs, giving them more muscle to compete with United Airlines UAL.O and Delta Air Lines DAL.N in the Northeast.
The alliance was announced in July 2020 and approved by the U.S. Transportation Department shortly before the end of the Trump administration.
American and JetBlue denied wrongdoing and asked Sorokin to dismiss the lawsuit.
JetBlue said that it believed that the Northeast Alliance delivered significant benefits to consumers. "We are confident the court will rule in our favor after we present the facts this September," the company said in a statement.
American did not immediately respond to a request for comment on Thursday.
The lawsuit was considered a signal that the Biden administration was determined to inject more competition into the airline industry, where American and three other airlines control 80% of the domestic market.
(Reporting by Diane Bartz; additional reporting by David Shepardson)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Diane Bartz WASHINGTON, June 9 (Reuters) - A U.S. judge said on Thursday that the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O would go forward. In its lawsuit filed in September in Boston, the government asked Judge Leo Sorokin to order the airlines to end their "Northeast Alliance" partnership, saying it would lead to higher fares in busy Northeastern airports. The agreement allows American and JetBlue to sell each other's flights in their New York-area and Boston networks and link frequent flyer programs, giving them more muscle to compete with United Airlines UAL.O and Delta Air Lines DAL.N in the Northeast.
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By Diane Bartz WASHINGTON, June 9 (Reuters) - A U.S. judge said on Thursday that the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O would go forward. In its lawsuit filed in September in Boston, the government asked Judge Leo Sorokin to order the airlines to end their "Northeast Alliance" partnership, saying it would lead to higher fares in busy Northeastern airports. (Reporting by Diane Bartz; additional reporting by David Shepardson) ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Diane Bartz WASHINGTON, June 9 (Reuters) - A U.S. judge said on Thursday that the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O would go forward. In its lawsuit filed in September in Boston, the government asked Judge Leo Sorokin to order the airlines to end their "Northeast Alliance" partnership, saying it would lead to higher fares in busy Northeastern airports. The agreement allows American and JetBlue to sell each other's flights in their New York-area and Boston networks and link frequent flyer programs, giving them more muscle to compete with United Airlines UAL.O and Delta Air Lines DAL.N in the Northeast.
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By Diane Bartz WASHINGTON, June 9 (Reuters) - A U.S. judge said on Thursday that the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O would go forward. A trial in the case has been set for Sept. 26. In its lawsuit filed in September in Boston, the government asked Judge Leo Sorokin to order the airlines to end their "Northeast Alliance" partnership, saying it would lead to higher fares in busy Northeastern airports.
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3499.0
|
2022-06-09 00:00:00 UTC
|
U.S. government antitrust lawsuit against American Airlines, JetBlue to go forward, judge says
|
AAL
|
https://www.nasdaq.com/articles/u.s.-government-antitrust-lawsuit-against-american-airlines-jetblue-to-go-forward-judge
|
nan
|
nan
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WASHINGTON, June 9 (Reuters) - A U.S. judge said on Thursday that the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O would go forward.
(Reporting by Diane Bartz)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, June 9 (Reuters) - A U.S. judge said on Thursday that the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O would go forward. (Reporting by Diane Bartz) ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, June 9 (Reuters) - A U.S. judge said on Thursday that the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O would go forward. (Reporting by Diane Bartz) ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, June 9 (Reuters) - A U.S. judge said on Thursday that the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O would go forward. (Reporting by Diane Bartz) ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, June 9 (Reuters) - A U.S. judge said on Thursday that the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O would go forward. (Reporting by Diane Bartz) ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) 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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