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3500.0
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2022-06-09 00:00:00 UTC
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Should You Pick American Airlines Stock For Near-Term Gains?
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AAL
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https://www.nasdaq.com/articles/should-you-pick-american-airlines-stock-for-near-term-gains
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nan
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nan
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The shares of American Airlines (NASDAQ: AAL) have lost 17% in value since early-April, largely due to skyrocketing inflation and the Fed’s counter measure of 50bps hike in the funds rate – triggering concerns of a slowdown in discretionary spending. As highlighted in our earlier article, Should You Increase Stakes In American Airlines Stock?, the company does not have fuel hedges to assist margins amid the high benchmark oil price environment despite strong passenger numbers assisting the top line. However, the Trefis machine learning engine, which analyzes historical stock price movements, AAL stock has a 65% chance of a rise over the next month (21 trading days). See our analysis American Airlines Stock Chance of Rise for more details.
Five Days: AAL -5.9%, vs. S&P 500 1.3%; Underperformed market (15% event probability)
AAL stock declined 5.9% over a five-day trading period ending 6/6/2022, compared to the broader market (S&P500) which remained fairly stable.
Returns of -5.9% or lower over a five-day period on 309 occasions out of 2130 (15%); Stock rose in the next five days in 154 of these 309 instances (50%).
Ten Days: AAL -3.2%, vs. S&P 500 5.4%; Underperformed market (35% event probability)
AAL stock declined 3.2% over the last ten trading days (two weeks), compared to the broader market (S&P500) which gained 5.4%.
Returns of -3.2% or lower over 10-day period on 747 occasions out of 2126 (35%); Stock rose in the next 10 days in 378 of these 747 instances (51%).
Twenty-One Days: AAL -17%, vs. S&P 500 -4.3%; Underperformed market (6% event probability)
AAL stock lost 17% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which declined 4.3%.
Returns of -17% or lower over 21-day period on 132 occasions out of 2115 (6%); Stock rose in the next 21 days in 86 of these 132 instances (65%).
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 Jun 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
AAL Return -9% -9% -65%
S&P 500 Return 0% -14% 84%
Trefis Multi-Strategy Portfolio 2% -18% 223%
[1] Month-to-date and year-to-date as of 6/7/2022
[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 shares of American Airlines (NASDAQ: AAL) have lost 17% in value since early-April, largely due to skyrocketing inflation and the Fed’s counter measure of 50bps hike in the funds rate – triggering concerns of a slowdown in discretionary spending. However, the Trefis machine learning engine, which analyzes historical stock price movements, AAL stock has a 65% chance of a rise over the next month (21 trading days). Five Days: AAL -5.9%, vs. S&P 500 1.3%; Underperformed market (15% event probability) AAL stock declined 5.9% over a five-day trading period ending 6/6/2022, compared to the broader market (S&P500) which remained fairly stable.
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Five Days: AAL -5.9%, vs. S&P 500 1.3%; Underperformed market (15% event probability) AAL stock declined 5.9% over a five-day trading period ending 6/6/2022, compared to the broader market (S&P500) which remained fairly stable. Ten Days: AAL -3.2%, vs. S&P 500 5.4%; Underperformed market (35% event probability) AAL stock declined 3.2% over the last ten trading days (two weeks), compared to the broader market (S&P500) which gained 5.4%. Twenty-One Days: AAL -17%, vs. S&P 500 -4.3%; Underperformed market (6% event probability) AAL stock lost 17% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which declined 4.3%.
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Ten Days: AAL -3.2%, vs. S&P 500 5.4%; Underperformed market (35% event probability) AAL stock declined 3.2% over the last ten trading days (two weeks), compared to the broader market (S&P500) which gained 5.4%. Twenty-One Days: AAL -17%, vs. S&P 500 -4.3%; Underperformed market (6% event probability) AAL stock lost 17% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which declined 4.3%. Total [2] AAL Return -9% -9% -65% S&P 500 Return 0% -14% 84% Trefis Multi-Strategy Portfolio 2% -18% 223% [1] Month-to-date and year-to-date as of 6/7/2022 [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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However, the Trefis machine learning engine, which analyzes historical stock price movements, AAL stock has a 65% chance of a rise over the next month (21 trading days). Five Days: AAL -5.9%, vs. S&P 500 1.3%; Underperformed market (15% event probability) AAL stock declined 5.9% over a five-day trading period ending 6/6/2022, compared to the broader market (S&P500) which remained fairly stable. The shares of American Airlines (NASDAQ: AAL) have lost 17% in value since early-April, largely due to skyrocketing inflation and the Fed’s counter measure of 50bps hike in the funds rate – triggering concerns of a slowdown in discretionary spending.
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3501.0
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2022-06-07 00:00:00 UTC
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5 Stocks to Avoid During a Recession
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AAL
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https://www.nasdaq.com/articles/5-stocks-to-avoid-during-a-recession
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The equity markets are facing multiple headwinds in the near to medium-term. There has already been a significant correction in growth stocks in the last few months. However, investors should be selective in accumulating stocks. There are several stocks to avoid during a recession.
A Bloomberg Markets survey indicates that nearly 50% of investors expect a recession in the U.S. in 2023. This seems likely considering the fact that the central bank pursuing contractionary monetary policies. Furthermore, geo-political tensions will have an impact on growth in the coming quarters.
Talking about recession and its impact on sectors, there are broadly two types of goods: luxury and necessity. In a recession, luxury goods tend to witness a sharper decline in demand. Also, industrial commodities and energy prices tend to decline on relatively lower demand.
7 Cheap Growth Stocks That Won't Stay That Way for Long
With this overview, let’s talk about five stocks to avoid during a recession.
LCID Lucid $18.92
FCX Freeport-McMoRan $43.19
CVX Chevron $178.58
AAL American Airlines $16.29
CCL Carnival Corporation $13.55
Lucid Group
Source: Tada Images / Shutterstock
I believe that Lucid (NASDAQ:LCID) is attractive for the long-term. However, it would be among the stocks to avoid during a recession.
It’s worth noting that Lucid has lowered its production guidance for 2022. That’s one factor that has already depressed the stock. In a recession scenario, the outlook for 2023 might be subdued.
A key reason is that the company’s first model is a luxury car than a car for the mass market. The demand for the car is therefore elastic in nature.
Lucid had initially guided for cash burn through 2024. A potential recession in 2022 or 2023 would also imply cash burn extending beyond this guidance. That’s another reason to be bearish as it would imply equity dilution.
Overall, the electric vehicle industry is positioned for multi-year growth. However, the outlook for LCID stock is bearish in an economic downturn. A sharp correction from current levels would be attractive for accumulation.
Freeport-McMoRan
Source: 360b / Shutterstock.com
Over a 12-month period, Freeport-McMoRan (NYSE:FCX) stock has been sideways. At a forward price-to-earnings-ratio of 9.69 times, the stock looks attractive.
However, in a recession scenario, I would avoid the stock. In general, a recession is associated with a decline in demand for industrial commodities. This is likely to translate into a correction in copper prices and reduced cash flows for Freeport.
It’s worth mentioning here that FCX stock is attractive for the long-term. The global demand for copper will continue to rise with investment in green energy.
Freeport has also utilized higher copper prices and cash flows to deleverage. For Q1 2022, the company reported net-debt of $1.3 billion. Further, the leverage ratio for the same period was 0.1x.
With ample financial flexibility and visibility for increase in copper and gold production, the long-term outlook is positive. Freeport plans $6.2 billion in capital expenditure for 2022 and 2023.
7 Oversold Value Stocks to Buy for June
Overall, Freeport can comfortably navigate any near-term headwinds. FCX stock might however correct if global demand for commodities declines in a recession scenario.
Chevron Corporation
Source: tishomir / Shutterstock.com
From a fundamental perspective, Chevron (NYSE:CVX) is among the top stocks to consider from the oil and gas sector. With higher oil price, CVX has surged by 54% in the last six-months.
However, I would include it among the stocks to avoid during a recession. With the geo-political risk premium, it’s unlikely that there will be a big correction in oil. Even in a recession scenario. Having said that, even if oil declines to $80 per barrel, oil and gas stocks will witness some correction.
Coming back to the positives, Chevron has a strong balance sheet and significant proved reserves. The company’s reserve replacement ratio has also averaged over 100% in the last few years.
With strong operating cash flows, Chevron is positioned to invest in exploration and renewable energy sector. CVX stock also offers an attractive annualized dividend of $5.68 per share. Dividends are sustainable even in a recession scenario.
Overall, CVX stock can correct by 20% from current levels if there is a recession. I would look at any such correction as a buying opportunity.
American Airlines
Source: GagliardiPhotography / Shutterstock.com
The travel and tourism industry were impacted due to the pandemic. With vaccinations and decline in infections, air travel has gained traction.
However, in a recession scenario, it makes sense to stay away from airline stocks. Consumers tend to cut down on luxury travel during recession and this factor is likely to impact sentiments.
American Airlines (NASDAQ:AAL) has declined by 10% for year-to-date 2022. I believe that there is further downside on the cards if there is a meaningful economic slowdown.
I would also avoid AAL stock considering the fact that the company is significantly leveraged. As of Q1 2022, the airline reported total debt of $37.8 billion. The company plans to repay $15 billion in debt by 2025. However, a potential recession can further stress the balance sheet.
7 Overlooked Value Stocks to Buy Before Wall Street Catches On
It’s also worth noting that Brent oil trades above $110 per barrel. American Airlines will have a negative impact on margin due to rising fuel cost. Considering the near-term headwinds, I would avoid AAL stock during a recession.
Carnival Corporation
Source: Flickr
Another stock from that travel and tourism industry to avoid in a recession scenario is Carnival Corporation (NYSE:CCL).
An interesting point to note is that even with healthy bookings reported during Q1 2022, CCL stock has continued to trend lower. There are two reasons for this downside.
First, Carnival has a stressed balance sheet and it would take years to reduce the debt servicing cost significantly. In an environment of rising interest rates, the company faces higher debt servicing cost on potential debt refinancing.
Further, with fears of recession, cruise travel might again be impacted negatively in 2023. Additionally, Carnival faces margin pressure due to rising fuel and food cost.
It’s therefore not surprising that CCL stock has declined by 27% in the last six-months. Further, correction would present a good trading opportunity. However, I would avoid any long-term exposure to the stock considering the balance sheet health.
On the date of publication, Faisal Humayun did not hold (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 5 Stocks to Avoid During a Recession 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.
|
LCID Lucid $18.92 FCX Freeport-McMoRan $43.19 CVX Chevron $178.58 AAL American Airlines $16.29 CCL Carnival Corporation $13.55 Lucid Group Source: Tada Images / Shutterstock I believe that Lucid (NASDAQ:LCID) is attractive for the long-term. American Airlines (NASDAQ:AAL) has declined by 10% for year-to-date 2022. I would also avoid AAL stock considering the fact that the company is significantly leveraged.
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LCID Lucid $18.92 FCX Freeport-McMoRan $43.19 CVX Chevron $178.58 AAL American Airlines $16.29 CCL Carnival Corporation $13.55 Lucid Group Source: Tada Images / Shutterstock I believe that Lucid (NASDAQ:LCID) is attractive for the long-term. American Airlines (NASDAQ:AAL) has declined by 10% for year-to-date 2022. I would also avoid AAL stock considering the fact that the company is significantly leveraged.
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LCID Lucid $18.92 FCX Freeport-McMoRan $43.19 CVX Chevron $178.58 AAL American Airlines $16.29 CCL Carnival Corporation $13.55 Lucid Group Source: Tada Images / Shutterstock I believe that Lucid (NASDAQ:LCID) is attractive for the long-term. American Airlines (NASDAQ:AAL) has declined by 10% for year-to-date 2022. I would also avoid AAL stock considering the fact that the company is significantly leveraged.
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I would also avoid AAL stock considering the fact that the company is significantly leveraged. LCID Lucid $18.92 FCX Freeport-McMoRan $43.19 CVX Chevron $178.58 AAL American Airlines $16.29 CCL Carnival Corporation $13.55 Lucid Group Source: Tada Images / Shutterstock I believe that Lucid (NASDAQ:LCID) is attractive for the long-term. American Airlines (NASDAQ:AAL) has declined by 10% for year-to-date 2022.
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3502.0
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2022-06-07 00:00:00 UTC
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Airlines ETF Stuck Between Revenue & Cost Increases
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AAL
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https://www.nasdaq.com/articles/airlines-etf-stuck-between-revenue-cost-increases
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nan
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nan
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As the pandemic is slowly turning into an endemic, economic-reopening-friendly stocks, like leisure stocks, have flied higher. Airlines, hotels and resultants stocks caught attention in recent trading as U.S. Global Jets ETF JETS has gained about 3% respectively against a 3.5% decline in the S&P 500. But in the past one month, JETS is off 6.4% while the S&P 500 is up 0.7%.
While ebbing pandemic is resulting into higher revenues (due to higher bookings and higher fares), rising costs (mainly due to higher fuel prices) are also casting a pall over the airlines investing. American Airlines AAL dropped 7.1% on Jun 3 after delivering updated guidance for the second quarter. The company boosted its revenue forecast, as well as its cost forecast per available seat mile. American Airlines said its capacity would be toward the low end of prior guidance, due in part to staffing issues.
Meanwhile, Delta Air Lines DAL said this month that it expects its revenue to return to 2019 levels (as opposed to its previous guidance of as much as 7% off pre-pandemic levels) this quarter thanks to an uptick in travel demand and higher fares that made up for the surge in fuel costs. Delta also boosted its margin outlook for the second quarter despite higher costs for fuel and other expenses.
Despite high inflation, consumers seem willing to spend more for airline tickets after keeping their travel plans on hold for about two years. The summer season has also been propelling them to indulge on such activities. Several companies are also asking employees to return, which in turn, may push up business travels too to some extent.
But then, one can’t ignore cost pressures. Delta’s schedule trims mean the company now expects its non-fuel costs per seat mile to be up as much as 22% compared with 2019, up from its earlier estimate of a 17% increase. Meanwhile, oil prices are soaring higher.
Brent breached $120-a-barrel level after Saudi Arabia hiked prices for its crude sales in July, indicating a supply crunch even after OPEC+ agreed to increase output in July and August by 648,000 barrels per day, or 50% more than previously planned. As summer driving is gaining momentum and jet fuel demand continues to recover, world oil demand is set to rise by 3.6 mb/d from April to August, per IEA.
Against this backdrop, United Airlines UAL has lost 9%, ALL has retreated 12%, DAL is off 8.5%, JBLU is down 4.5% while LUV and ALK have nosedived 6.7% and 4.4%, respectively. Revenue expansion is broad-based, only the airline that can manage costs more efficiently will gain in the medium term. If investors are finding it tough to cherry-pick better airline stock, they can always bet on airlines ETF JETS. A basket approach minimizes the stock-specific concentration risks.
JETS in Focus
The underlying U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines. American Airlines (10.15%), United Airlines (10.06%), Delta Airlines (9.96%), Southwest Airlines (9.88%) and Alaska Air Group (3.06%) hold the top five positions in the fund. The fund charges 60 bps in fees.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
U.S. Global Jets ETF (JETS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL dropped 7.1% on Jun 3 after delivering updated guidance for the second quarter. American Airlines Group Inc. (AAL): Free Stock Analysis Report Despite high inflation, consumers seem willing to spend more for airline tickets after keeping their travel plans on hold for about two years.
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American Airlines AAL dropped 7.1% on Jun 3 after delivering updated guidance for the second quarter. American Airlines Group Inc. (AAL): Free Stock Analysis Report While ebbing pandemic is resulting into higher revenues (due to higher bookings and higher fares), rising costs (mainly due to higher fuel prices) are also casting a pall over the airlines investing.
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American Airlines AAL dropped 7.1% on Jun 3 after delivering updated guidance for the second quarter. American Airlines Group Inc. (AAL): Free Stock Analysis Report While ebbing pandemic is resulting into higher revenues (due to higher bookings and higher fares), rising costs (mainly due to higher fuel prices) are also casting a pall over the airlines investing.
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American Airlines AAL dropped 7.1% on Jun 3 after delivering updated guidance for the second quarter. American Airlines Group Inc. (AAL): Free Stock Analysis Report Meanwhile, Delta Air Lines DAL said this month that it expects its revenue to return to 2019 levels (as opposed to its previous guidance of as much as 7% off pre-pandemic levels) this quarter thanks to an uptick in travel demand and higher fares that made up for the surge in fuel costs.
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3503.0
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2022-06-07 00:00:00 UTC
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The Zacks Analyst Blog Highlights United Airlines, Delta Air Lines, Southwest Airlines, American Airlines, and Ryanair Holdings
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-united-airlines-delta-air-lines-southwest-airlines
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nan
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For Immediate Release
Chicago, IL – June 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: United Airlines UAL, Delta Air Lines DAL, Southwest Airlines LUV, American Airlines AAL, and Ryanair Holdings (RYAAY).
Here are highlights from Monday’s Analyst Blog:
Airlines Looking Good Despite Steep Fuel Costs - Here's Why:
The steep oil price increase (up 33% in first-quarter 2022) does not bode well for the Zacks Airline industry players as far as their bottom-line growth is concerned. This is because fuel expenses form a chunk of the input costs borne by the aviation space.
That the oil price will be high at least in the near term can be gauged from the forecast given by the U.S. Energy Information Administration (EIA). Per EIA, the average Brent crude oil spot price will be $107 a barrel in second-quarter 2022 and $103 in the second half of 2022. Akin to the first quarter, high fuel costs are likely to dent the airlines' bottom-line growth in the June quarter. The spike in a major input cost is likely to shoot up the airfares, thus making air-travel costlier.
Despite the exorbitant air fares, stocks in the industry have gained 17% over the past three months.
Let's delve deep to unearth the reasons for the upbeat stock price performance despite the sharp rally in the bulk input cost for the industry participants.
The sole reason behind this upward stock movement is the buoyancy in demand for air-travel. That the fuel cost-induced hike in air-ticket price is not dampening demand can be figured out from the assertion of United Airlines' CEO Scott Kirby. Per Kirby, there is "not a hint of evidence" that the rising ticket prices are hurting consumer demand.
In response to the bullish demand scenario as highlighted by the healthy trend witnessed with respect to air-travel (mainly for leisure) bookings, the UAL management raised its current-quarter outlook for unit revenues. In an SEC filing dated May 16, UAL's management projected total revenue per available seat miles (TRASM: a measure of unit revenue) for second-quarter 2022 to increase in the 23-25% band from the second-quarter 2019 actuals. Per the previous TRASM forecast, given last month while releasing first-quarter 2022 results, the metric was expected to improve roughly 17% from the second-quarter 2019 actuals.
United Airlines apart, other U.S. carriers, including the likes of Delta Air Lines, Southwest Airlines, American Airlines and others lifted their respective second-quarter views for revenues.
Delta 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. DAL anticipates total unit revenues to rise seven to eight points from its initial expectations.
Operating margin is predicted to be 13-14% compared with the previous guidance of 12-14%. Fuel price per gallon is now estimated to be $3.60-$3.70 in the second quarter, higher than the previous guidance of $3.20-$3.35.
Driven by the continued strength witnessed with respect to passenger yield, Southwest Airlines' management expects second-quarter 2022 operating revenues to increase in the 12-15% band from the earlier estimate of an 8-12% rise. Economic fuel costs per gallon are now forecast in the $3.30-$3.40 range (earlier forecast was in the $3.05-$3.15 band). Management at LUV, which currently sports a Zacks Rank #1 (Strong Buy), said that the yield strength, driven by upbeat demand, more than offset the fuel price increase. You can see the complete list of today's Zacks #1 Rank stocks here.
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). 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. However, like LUV, ALK's management is of the view that the revenue strength is offsetting increases in oil prices.
American Airlines also increased its second-quarter revenue guidance owing to upbeat air-travel demand. AAL 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).
TRASM 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.
The upbeat demand scenario is aiding not only the U.S. carriers. In May, the European carrier Ryanair Holdings stated that load factor is expected to reach the pre-pandemic levels at 94-95% in the months of June-August. The rosy forecast comes on the back of healthy bookings for summer travel.
Per CEO Michael O'Leary, "Bookings over the last number of weeks have continued to strengthen – both the numbers are strengthening and average fares being paid through the summer are rising." O'Leary added that bookings are especially strong to the beaches of Portugal, Spain, Italy and Greece.
Wrapping Up
This optimistic air-travel demand scenario, driven by wide-spread vaccination against COVID-19 and the easing of travel restrictions, is a huge positive for the airlines. As highlighted by the sunny top-line forecasts, passenger revenues, accounting for bulk of an airline's top line, are likely to be strong in the second quarter of 2022. In fact, we expect this favorable top-line scenario to aid the aviation space throughout the ongoing year.
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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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: United Airlines UAL, Delta Air Lines DAL, Southwest Airlines LUV, American Airlines AAL, and Ryanair Holdings (RYAAY). AAL 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). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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Stocks recently featured in the blog include: United Airlines UAL, Delta Air Lines DAL, Southwest Airlines LUV, American Airlines AAL, and Ryanair Holdings (RYAAY). AAL 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). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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Stocks recently featured in the blog include: United Airlines UAL, Delta Air Lines DAL, Southwest Airlines LUV, American Airlines AAL, and Ryanair Holdings (RYAAY). AAL 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). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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Stocks recently featured in the blog include: United Airlines UAL, Delta Air Lines DAL, Southwest Airlines LUV, American Airlines AAL, and Ryanair Holdings (RYAAY). AAL 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). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3504.0
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2022-06-06 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
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nan
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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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3505.0
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2022-06-06 00:00:00 UTC
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Airlines Looking Good Despite Steep Fuel Costs: Here's Why
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AAL
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https://www.nasdaq.com/articles/airlines-looking-good-despite-steep-fuel-costs%3A-heres-why
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nan
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nan
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The steep oil price increase (up 33% in first-quarter 2022) does not bode well for the Zacks Airline industry players as far as their bottom-line growth is concerned. This is because fuel expenses form a chunk of the input costs borne by the aviation space.
That the oil price will be high at least in the near term can be gauged from the forecast given by the U.S. Energy Information Administration (EIA). Per EIA, the average Brent crude oil spot price will be $107 a barrel in second-quarter 2022 and $103 in the second half of 2022. Akin to the first quarter, high fuel costs are likely to dent the airlines’ bottom-line growth in the June quarter. The spike in a major input cost is likely to shoot up the airfares, thus making air-travel costlier.
Despite the exorbitant air fares, stocks in the industry have gained 17% over the past three months.
Image Source: Zacks Investment Research
Let’s delve deep to unearth the reasons for the upbeat stock price performance despite the sharp rally in the bulk input cost for the industry participants.
The sole reason behind this upward stock movement is the buoyancy in demand for air-travel. That the fuel cost-induced hike in air-ticket price is not dampening demand can be figured out from the assertion of United Airlines’UAL CEO Scott Kirby. Per Kirby, there is "not a hint of evidence" that the rising ticket prices are hurting consumer demand.
In response to the bullish demand scenario as highlighted by the healthy trend witnessed with respect to air-travel (mainly for leisure) bookings, the UAL management raised its current-quarter outlook for unit revenues. In an SEC filing dated May 16, UAL’s management projected total revenue per available seat miles (TRASM: a measure of unit revenue) for second-quarter 2022 to increase in the 23-25% band from the second-quarter 2019 actuals. Per the previous TRASM forecast, given last month while releasing first-quarter 2022 results, the metric was expected to improve roughly 17% from the second-quarter 2019 actuals.
United Airlines apart, other U.S. carriers, including the likes of Delta Air Lines DAL, Southwest Airlines LUV, American Airlines AAL and Alaska Air Group ALK lifted their respective second-quarter views for revenues.
Delta 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. DAL anticipates total unit revenues to rise seven to eight points from its initial expectations.
Operating margin is predicted to be 13-14% compared with the previous guidance of 12-14%. Fuel price per gallon is now estimated to be $3.60-$3.70 in the second quarter, higher than the previous guidance of $3.20-$3.35.
Driven by the continued strength witnessed with respect to passenger yield, Southwest Airlines’ management expects second-quarter 2022 operating revenues to increase in the 12-15% band from the earlier estimate of an 8-12% rise. Economic fuel costs per gallon are now forecast in the $3.30-$3.40 range (earlier forecast was in the $3.05-$3.15 band). Management at LUV, which currently sports a Zacks Rank #1 (Strong Buy), said that the yield strength, driven by upbeat demand, more than offset the fuel price increase. You can see the complete list of today’s Zacks #1 Rank stocks here.
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). 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. However, like LUV, ALK’s management is of the view that the revenue strength is offsetting increases in oil prices.
American Airlines also increased its second-quarter revenue guidance owing to upbeat air-travel demand. AAL 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).
TRASM 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.
The upbeat demand scenario is aiding not only the U.S. carriers. In May, the European carrier Ryanair Holdings RYAAY stated that load factor is expected to reach the pre-pandemic levels at 94-95% in the months of June-August. The rosy forecast comes on the back of healthy bookings for summer travel.
Per CEO Michael O'Leary, "Bookings over the last number of weeks have continued to strengthen – both the numbers are strengthening and average fares being paid through the summer are rising." O'Leary added that bookings are especially strong to the beaches of Portugal, Spain, Italy and Greece.
Wrapping Up
This optimistic air-travel demand scenario, driven by wide-spread vaccination against COVID-19 and the easing of travel restrictions, is a huge positive for the airlines. As highlighted by the sunny top-line forecasts, passenger revenues, accounting for bulk of an airline’s top line, are likely to be strong in the second quarter of 2022. In fact, we expect this favorable top-line scenario to aid the aviation space throughout the ongoing year.
Free: Top Stocks for the $30 Trillion Metaverse Boom
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Ryanair Holdings PLC (RYAAY): Free Stock Analysis 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
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines apart, other U.S. carriers, including the likes of Delta Air Lines DAL, Southwest Airlines LUV, American Airlines AAL and Alaska Air Group ALK lifted their respective second-quarter views for revenues. AAL 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). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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United Airlines apart, other U.S. carriers, including the likes of Delta Air Lines DAL, Southwest Airlines LUV, American Airlines AAL and Alaska Air Group ALK lifted their respective second-quarter views for revenues. AAL 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). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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United Airlines apart, other U.S. carriers, including the likes of Delta Air Lines DAL, Southwest Airlines LUV, American Airlines AAL and Alaska Air Group ALK lifted their respective second-quarter views for revenues. AAL 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). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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United Airlines apart, other U.S. carriers, including the likes of Delta Air Lines DAL, Southwest Airlines LUV, American Airlines AAL and Alaska Air Group ALK lifted their respective second-quarter views for revenues. AAL 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). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3506.0
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2022-06-06 00:00:00 UTC
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American Airlines (AAL) Outpaces Stock Market Gains: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-outpaces-stock-market-gains%3A-what-you-should-know-1
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nan
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nan
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American Airlines (AAL) closed the most recent trading day at $16.30, moving +0.49% from the previous trading session. This change outpaced the S&P 500's 0.31% gain on the day. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.
Heading into today, shares of the world's largest airline had lost 9.08% over the past month, lagging the Transportation sector's loss of 0.49% and the S&P 500's loss of 1.38% 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 $0.38 per share, which would represent year-over-year growth of 122.49%. Our most recent consensus estimate is calling for quarterly revenue of $12.84 billion, up 71.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.47 per share and revenue of $46.75 billion. These totals would mark changes of +82.46% and +56.46%, respectively, from last year.
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. Over the past month, the Zacks Consensus EPS estimate has moved 5.69% lower. American Airlines is currently a Zacks Rank #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% 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.
Free: Top Stocks for the $30 Trillion Metaverse Boom
The metaverse is a quantum leap for the internet as we currently know it - and it will make some investors rich. Just like the internet, the metaverse is expected to transform how we live, work and play. Zacks has put together a new special report to help readers like you target big profits. The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks reveals specific stocks set to skyrocket as this emerging technology develops and expands.
Download Zacks’ Metaverse Report 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
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 the most recent trading day at $16.30, moving +0.49% from the previous trading session. American Airlines Group Inc. (AAL): Free Stock Analysis Report On that day, American Airlines is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 122.49%.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed the most recent trading day at $16.30, moving +0.49% from the previous trading session. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.47 per share and revenue of $46.75 billion.
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American Airlines (AAL) closed the most recent trading day at $16.30, moving +0.49% from the previous trading session. American Airlines Group Inc. (AAL): Free Stock Analysis Report Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.47 per share and revenue of $46.75 billion.
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American Airlines (AAL) closed the most recent trading day at $16.30, moving +0.49% from the previous trading session. American Airlines Group Inc. (AAL): Free Stock Analysis Report On that day, American Airlines is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 122.49%.
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3507.0
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2022-06-03 00:00:00 UTC
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Why American Airlines Stock Was Diving Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-stock-was-diving-today
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nan
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nan
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What happened
American Airlines Group (NASDAQ: AAL) was the opposite of a high-flying stock on Friday. At the close of trading, the big carrier's share price was down by 7.1%. Investors were clearly concerned about updated guidance the company issued earlier in the day.
So what
For its current (second) quarter, American upgraded its guidance for several of its key financial metrics.
Image source: Getty Images.
The airline now expects total revenue to rise by 11% to 13% compared to the second quarter of 2019 (i.e., the last second quarter before the start of the pandemic). Previously, it was guiding for only 6% to 8%.
The company also upped its forecast for total revenue per available seat mile -- an important financial yardstick for its business -- to 20% to 22% growth over the 2019 quarter; formerly, this estimate was 14% to 16%.
So far, so good. But one piece of guidance went in the opposite direction, and that's the one that really gave investors pause. American now believes its average fuel price will come in at $3.92 to $3.97 per gallon, higher than its preceding forecast of $3.59 to $3.64.
Now what
The bump in the fuel cost guidance isn't particularly surprising given the general increase in oil prices worldwide. Still, it's unpleasant for a shareholder to see notably higher figures in that line item, and investors were punishing American for that.
They might consider giving the company something of a break, however.
Although the airline didn't proffer any bottom-line guidance, it did write in the update that the anticipated revenue growth "is expected to more than offset these increased costs, resulting in an expected increase in pre-tax margin, excluding net special items, versus prior guidance." Said margin is now expected to be 4% to 6%, against the previous estimate of 3% to 5%.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened American Airlines Group (NASDAQ: AAL) was the opposite of a high-flying stock on Friday. The company also upped its forecast for total revenue per available seat mile -- an important financial yardstick for its business -- to 20% to 22% growth over the 2019 quarter; formerly, this estimate was 14% to 16%. Now what The bump in the fuel cost guidance isn't particularly surprising given the general increase in oil prices worldwide.
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What happened American Airlines Group (NASDAQ: AAL) was the opposite of a high-flying stock on Friday. The airline now expects total revenue to rise by 11% to 13% compared to the second quarter of 2019 (i.e., the last second quarter before the start of the pandemic). After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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What happened American Airlines Group (NASDAQ: AAL) was the opposite of a high-flying stock on Friday. Although the airline didn't proffer any bottom-line guidance, it did write in the update that the anticipated revenue growth "is expected to more than offset these increased costs, resulting in an expected increase in pre-tax margin, excluding net special items, versus prior guidance." 10 stocks we like better than American Airlines Group When our award-winning analyst team has a stock tip, it can pay to listen.
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What happened American Airlines Group (NASDAQ: AAL) was the opposite of a high-flying stock on Friday. Investors were clearly concerned about updated guidance the company issued earlier in the day. Said margin is now expected to be 4% to 6%, against the previous estimate of 3% to 5%.
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3508.0
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2022-06-03 00:00:00 UTC
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Notable Friday Option Activity: AAL, ADBE, AVAV
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AAL
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-aal-adbe-avav
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 152,506 contracts have traded so far, representing approximately 15.3 million underlying shares. That amounts to about 47.9% of AAL's average daily trading volume over the past month of 31.8 million shares. Particularly high volume was seen for the $17.50 strike call option expiring June 24, 2022, with 6,608 contracts trading so far today, representing approximately 660,800 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $17.50 strike highlighted in orange:
Adobe Inc (Symbol: ADBE) saw options trading volume of 16,541 contracts, representing approximately 1.7 million underlying shares or approximately 46.7% of ADBE's average daily trading volume over the past month, of 3.5 million shares. Especially high volume was seen for the $405 strike put option expiring June 17, 2022, with 982 contracts trading so far today, representing approximately 98,200 underlying shares of ADBE. Below is a chart showing ADBE's trailing twelve month trading history, with the $405 strike highlighted in orange:
And AeroVironment, Inc. (Symbol: AVAV) options are showing a volume of 1,155 contracts thus far today. That number of contracts represents approximately 115,500 underlying shares, working out to a sizeable 46.7% of AVAV's average daily trading volume over the past month, of 247,250 shares. Particularly high volume was seen for the $115 strike call option expiring July 15, 2022, with 751 contracts trading so far today, representing approximately 75,100 underlying shares of AVAV. Below is a chart showing AVAV's trailing twelve month trading history, with the $115 strike highlighted in orange:
For the various different available expirations for AAL options, ADBE options, or AVAV 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 $17.50 strike call option expiring June 24, 2022, with 6,608 contracts trading so far today, representing approximately 660,800 underlying shares of AAL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 152,506 contracts have traded so far, representing approximately 15.3 million underlying shares. That amounts to about 47.9% of AAL's average daily trading volume over the past month of 31.8 million shares.
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Particularly high volume was seen for the $17.50 strike call option expiring June 24, 2022, with 6,608 contracts trading so far today, representing approximately 660,800 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $17.50 strike highlighted in orange: Adobe Inc (Symbol: ADBE) saw options trading volume of 16,541 contracts, representing approximately 1.7 million underlying shares or approximately 46.7% of ADBE's average daily trading volume over the past month, of 3.5 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 152,506 contracts have traded so far, representing approximately 15.3 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 152,506 contracts have traded so far, representing approximately 15.3 million underlying shares. Particularly high volume was seen for the $17.50 strike call option expiring June 24, 2022, with 6,608 contracts trading so far today, representing approximately 660,800 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $17.50 strike highlighted in orange: Adobe Inc (Symbol: ADBE) saw options trading volume of 16,541 contracts, representing approximately 1.7 million underlying shares or approximately 46.7% of ADBE's average daily trading volume over the past month, of 3.5 million shares.
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Below is a chart showing AAL's trailing twelve month trading history, with the $17.50 strike highlighted in orange: Adobe Inc (Symbol: ADBE) saw options trading volume of 16,541 contracts, representing approximately 1.7 million underlying shares or approximately 46.7% of ADBE's average daily trading volume over the past month, of 3.5 million shares. Below is a chart showing AVAV's trailing twelve month trading history, with the $115 strike highlighted in orange: For the various different available expirations for AAL options, ADBE options, or AVAV options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 152,506 contracts have traded so far, representing approximately 15.3 million underlying shares.
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3509.0
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2022-06-03 00:00:00 UTC
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Airlines step up push to get U.S. to drop international COVID-19 testing rule
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AAL
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https://www.nasdaq.com/articles/airlines-step-up-push-to-get-u.s.-to-drop-international-covid-19-testing-rule
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nan
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nan
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By David Shepardson
WASHINGTON, June 3 (Reuters) - U.S. airlines are stepping up their efforts to get the Biden administration to end COVID-19 pre-departure testing requirements for international air travel.
American Airlines AAL.O Chief Executive Robert Isom said on Friday at a conference the testing requirements were "nonsensical" and were "depressing" leisure and business travel.
Airlines say many Americans are not traveling internationally because of concerns they will test positive and be stranded abroad. International U.S. air travel remains down about 14% from pre-pandemic levels.
Isom, who met with politicians in Washington on Thursday to discuss the issue, said 75% of countries American serves do not have testing requirements. The Centers for Disease Control and Prevention (CDC) requires travelers to test negative within one day before flights to the United States.
"We're really frustrated and this is something that is damaging not only U.S. travel but it just doesn't make sense," Isom said.
He noted testing rules do not apply to people crossing U.S. land borders and noted the Boston Red Sox baseball team in April flew to Toronto to play the Blue Jays - but rode a bus home to avoid the testing requirements.
White House Press Secretary Karine Jean-Pierre said on Wednesday the administration was "constantly evaluating our policy.... And any decision on pre-departure testing requirement would be made by our health and medical experts."
Delta Air Lines DAL.N Chief Executive Ed Bastian told Reuters on Wednesday that dropping the requirements will boost travel. He said 44 of 50 countries Delta serves do not require testing.
"We know it will help induce and incent travelers to go abroad, bring more commerce in, more business in so hopefully they will get it done soon," Bastian said.
Airlines for America, an industry group representing major carriers, and U.S. Travel met with a deputy White House COVID-19 coordinator Tuesday, who gave no indication of when the Biden administration might rethink the requirement.
(Reporting by David Shepardson Editing by Tomasz Janowski)
((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 on Friday at a conference the testing requirements were "nonsensical" and were "depressing" leisure and business travel. By David Shepardson WASHINGTON, June 3 (Reuters) - U.S. airlines are stepping up their efforts to get the Biden administration to end COVID-19 pre-departure testing requirements for international air travel. White House Press Secretary Karine Jean-Pierre said on Wednesday the administration was "constantly evaluating our policy.... And any decision on pre-departure testing requirement would be made by our health and medical experts."
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American Airlines AAL.O Chief Executive Robert Isom said on Friday at a conference the testing requirements were "nonsensical" and were "depressing" leisure and business travel. By David Shepardson WASHINGTON, June 3 (Reuters) - U.S. airlines are stepping up their efforts to get the Biden administration to end COVID-19 pre-departure testing requirements for international air travel. Delta Air Lines DAL.N Chief Executive Ed Bastian told Reuters on Wednesday that dropping the requirements will boost travel.
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American Airlines AAL.O Chief Executive Robert Isom said on Friday at a conference the testing requirements were "nonsensical" and were "depressing" leisure and business travel. By David Shepardson WASHINGTON, June 3 (Reuters) - U.S. airlines are stepping up their efforts to get the Biden administration to end COVID-19 pre-departure testing requirements for international air travel. He noted testing rules do not apply to people crossing U.S. land borders and noted the Boston Red Sox baseball team in April flew to Toronto to play the Blue Jays - but rode a bus home to avoid the testing requirements.
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American Airlines AAL.O Chief Executive Robert Isom said on Friday at a conference the testing requirements were "nonsensical" and were "depressing" leisure and business travel. By David Shepardson WASHINGTON, June 3 (Reuters) - U.S. airlines are stepping up their efforts to get the Biden administration to end COVID-19 pre-departure testing requirements for international air travel. Airlines say many Americans are not traveling internationally because of concerns they will test positive and be stranded abroad.
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3510.0
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2022-06-03 00:00:00 UTC
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American Airlines raises revenue forecast on robust travel demand
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https://www.nasdaq.com/articles/american-airlines-raises-revenue-forecast-on-robust-travel-demand
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Adds details, background
June 3 (Reuters) - American Airlines Group Inc AAL.O lifted its revenue forecast for the second quarter on Friday, citing the boost from pent-up demand for travel and a strong pricing environment.
Airlines have in recent months enjoyed a surge in bookings as countries ease COVID-19 restrictions, encouraging people to take to the skies after two years of the pandemic-restricted travel.
American Airlines said it now expects revenue for the quarter to rise between 11% and 13% over pre-pandemic levels, compared with its prior view of a 6% to 8% increase.
But the Fort-Worth, Texas-based carrier warned that fuel costs would rise in the period, lifting its expectation for average fuel expenses to between $3.92 and $3.97 per gallon, from its previous forecast of $3.59 to $3.64 per gallon.
Fuel is the industry's second-biggest expense after labor, but major U.S. carries do not hedge against volatile oil prices like most European airlines.
American Airlines also said it expects capacity in the second quarter to be at the low end of its prior guidance range.
The company, however, is confident that higher revenue will offset the rise in costs caused by steeper fuel prices, it said.
(Reporting by Kannaki Deka in Bengaluru; Editing by Aditya Soni)
((Kannaki.Deka@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details, background June 3 (Reuters) - American Airlines Group Inc AAL.O lifted its revenue forecast for the second quarter on Friday, citing the boost from pent-up demand for travel and a strong pricing environment. Airlines have in recent months enjoyed a surge in bookings as countries ease COVID-19 restrictions, encouraging people to take to the skies after two years of the pandemic-restricted travel. Fuel is the industry's second-biggest expense after labor, but major U.S. carries do not hedge against volatile oil prices like most European airlines.
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Adds details, background June 3 (Reuters) - American Airlines Group Inc AAL.O lifted its revenue forecast for the second quarter on Friday, citing the boost from pent-up demand for travel and a strong pricing environment. American Airlines said it now expects revenue for the quarter to rise between 11% and 13% over pre-pandemic levels, compared with its prior view of a 6% to 8% increase. But the Fort-Worth, Texas-based carrier warned that fuel costs would rise in the period, lifting its expectation for average fuel expenses to between $3.92 and $3.97 per gallon, from its previous forecast of $3.59 to $3.64 per gallon.
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Adds details, background June 3 (Reuters) - American Airlines Group Inc AAL.O lifted its revenue forecast for the second quarter on Friday, citing the boost from pent-up demand for travel and a strong pricing environment. American Airlines said it now expects revenue for the quarter to rise between 11% and 13% over pre-pandemic levels, compared with its prior view of a 6% to 8% increase. But the Fort-Worth, Texas-based carrier warned that fuel costs would rise in the period, lifting its expectation for average fuel expenses to between $3.92 and $3.97 per gallon, from its previous forecast of $3.59 to $3.64 per gallon.
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Adds details, background June 3 (Reuters) - American Airlines Group Inc AAL.O lifted its revenue forecast for the second quarter on Friday, citing the boost from pent-up demand for travel and a strong pricing environment. Airlines have in recent months enjoyed a surge in bookings as countries ease COVID-19 restrictions, encouraging people to take to the skies after two years of the pandemic-restricted travel. American Airlines said it now expects revenue for the quarter to rise between 11% and 13% over pre-pandemic levels, compared with its prior view of a 6% to 8% increase.
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3511.0
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2022-06-03 00:00:00 UTC
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American Airlines raises second-quarter revenue forecast
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AAL
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https://www.nasdaq.com/articles/american-airlines-raises-second-quarter-revenue-forecast
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June 3 (Reuters) - American Airlines Group Inc AAL.O lifted its revenue forecast for the second quarter on Friday, citing robust demand and a strong pricing environment.
The airline said it now expects revenue for the period to rise between 11% and 13% over pre-pandemic levels, compared with its prior view of a 6% to 8% increase.
(Reporting by Kannaki Deka in Bengaluru; Editing by Aditya Soni )
((Kannaki.Deka@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 3 (Reuters) - American Airlines Group Inc AAL.O lifted its revenue forecast for the second quarter on Friday, citing robust demand and a strong pricing environment. The airline said it now expects revenue for the period to rise between 11% and 13% over pre-pandemic levels, compared with its prior view of a 6% to 8% increase. (Reporting by Kannaki Deka in Bengaluru; Editing by Aditya Soni ) ((Kannaki.Deka@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 3 (Reuters) - American Airlines Group Inc AAL.O lifted its revenue forecast for the second quarter on Friday, citing robust demand and a strong pricing environment. The airline said it now expects revenue for the period to rise between 11% and 13% over pre-pandemic levels, compared with its prior view of a 6% to 8% increase. (Reporting by Kannaki Deka in Bengaluru; Editing by Aditya Soni ) ((Kannaki.Deka@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 3 (Reuters) - American Airlines Group Inc AAL.O lifted its revenue forecast for the second quarter on Friday, citing robust demand and a strong pricing environment. The airline said it now expects revenue for the period to rise between 11% and 13% over pre-pandemic levels, compared with its prior view of a 6% to 8% increase. (Reporting by Kannaki Deka in Bengaluru; Editing by Aditya Soni ) ((Kannaki.Deka@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 3 (Reuters) - American Airlines Group Inc AAL.O lifted its revenue forecast for the second quarter on Friday, citing robust demand and a strong pricing environment. The airline said it now expects revenue for the period to rise between 11% and 13% over pre-pandemic levels, compared with its prior view of a 6% to 8% increase. (Reporting by Kannaki Deka in Bengaluru; Editing by Aditya Soni ) ((Kannaki.Deka@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3512.0
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2022-06-03 00:00:00 UTC
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Spirit Airlines Bidding War: Is Now Time to Buy?
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-bidding-war%3A-is-now-time-to-buy
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As the pandemic hit in early 2020, airlines cut back staff, current pilots retired, and fewer new pilots started their training . Those shortages have now left carriers scrambling to keep up with rebounding travel demand, and driven smaller airlines to merge with or buy rivals to make the most of a pared-back staff and surging customer base. Both JetBlue (NASDAQ: JBLU) and Frontier (NASDAQ: ULCC) are bidding hard for Spirit Airlines (NYSE: SAVE) in this mad dash for consolidation. This battle between midsize carriers stands to make either of the bidders stronger and more secure in the future -- but now just might be the right time to get in on shares of Spirit before a winner emerges.
Image Source: Getty Images
Intense competition for acquisition
Mid-size carriers lack the soaring market caps and cash reserves of their bigger airline brethren, but the belt-tightening of the past few years has left them running leaner operations with an eye toward expansion on the horizon. Consolidation means a more diverse and numerous fleet, access to additional airports, and a reduction in overall competition in markets where both carriers currently exist.
Spirit agreed to merge with Frontier on Feb. 5, subject to an upcoming shareholder vote on June 10. The deal trades each share of Spirit for 1.9126 shares of the merged company, plus $2.13 in cash. In response, Spirit shares rose from $21.73 to $27.53 over the next few days, approaching the roughly $29.40 Frontier's offer was worth on the day news of the deal broke. Frontier's flight attendant union has already approved the move, but regulators and shareholders still need to follow suit to seal the deal.
In response to the potentially stronger competition, JetBlue's CEO Robin Hayes said on April 6 that the Spirit-Frontier deal "created a window of opportunity that if you don't act in it, it's gone." In early April, JetBlue offered a hostile bid of its own to buy Spirit, leaving airline stock investors uncertain about the eventual victor and hesitant to jump on the Spirit bandwagon.
After their initial uptick from Frontier's offer, Spirit shares have settled lower on uncertainty, and Frontier's stock has fallen from $14.26 to around $10. JetBlue first bid $30 per share for Spirit, but has sweetened that offer to $33 as the shareholder vote approaches -- more than $10 per share ahead of Frontier's, which adds up to $21.60 at the latter company's current prices.
How regulators could derail a done deal
There's more on the table than just the buyout price when it comes to evaluating a JetBlue offer, though. Because a combined JetBlue and Spirit would directly impact markets where JetBlue's partner American Airlines (NASDAQ: AAL) operates, any deal between JetBlue and Spirit may lead antitrust regulators in New York to intervene. The move would reduce the number of competing carriers in shared markets, creating a concern for regulators who seek to prevent monopolies in regional airspace. The Justice Department already filed suit against the JetBlue-American partnership deal, in which JetBlue would service many American flights, sharing terminal space and simplifying transfers with the larger carrier.
JetBlue has yet to complete an attempted merger, losing its bid for Virgin Airlines in 2016 to Alaska Air. JBLU share prices fell by 40% during the competition for Virgin, delivering the stock its biggest recent dip outside of the pandemic shutdown. This could leave investors wary that JetBlue has once again overextended itself in trying to woo existing Spirit shareholders, only to lose footing in key markets if Frontier's bid wins out.
Meanwhile, Frontier only debuted its IPO during the pandemic, making it a relatively new player on the public scene. Its inexperience could prove costly if it fails to secure the merger and the courts side with American and JetBlue in competitive markets.
Blue skies on the horizon
A hypercompetitive discount carrier market means that if either of these two consolidations complete, the emerging carrier likely gains an edge over other airlines in the same regions. The JetBlue takeover could either result in a quick win for investors, or draw out over time amid protracted legal issues. Similarly, those betting on Frontier's offer could see it rejected outright in the next month if JetBlue wins with a direct appeal to shareholders. Frontier looks to be closer to a successful buyout heading into the June 10 vote, while JetBlue likely faces a much more protracted and unlikely road to a successful takeover,.
Still, signs point to the announcement of an eventual winner in the competition, rather than all three carriers remaining separate entities. While wagering on Frontier or JetBlue's success looks risky, investors who get in on Spirit now could be well-positioned to either reinvest buyout funds from JetBlue in a stronger combined carrier, or enjoy immediate shares of a strengthened Frontier if and when consolidation completes. Regardless of the ultimate winner, jumping into Spirit now might offer investors an option to get in on the ground floor of a newly combined carrier before it begins to flex its muscle in the years ahead.
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Motley Fool contributor Nicholas Robbins has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Spirit Airlines. The Motley Fool recommends 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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Because a combined JetBlue and Spirit would directly impact markets where JetBlue's partner American Airlines (NASDAQ: AAL) operates, any deal between JetBlue and Spirit may lead antitrust regulators in New York to intervene. Those shortages have now left carriers scrambling to keep up with rebounding travel demand, and driven smaller airlines to merge with or buy rivals to make the most of a pared-back staff and surging customer base. The Justice Department already filed suit against the JetBlue-American partnership deal, in which JetBlue would service many American flights, sharing terminal space and simplifying transfers with the larger carrier.
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Because a combined JetBlue and Spirit would directly impact markets where JetBlue's partner American Airlines (NASDAQ: AAL) operates, any deal between JetBlue and Spirit may lead antitrust regulators in New York to intervene. Both JetBlue (NASDAQ: JBLU) and Frontier (NASDAQ: ULCC) are bidding hard for Spirit Airlines (NYSE: SAVE) in this mad dash for consolidation. The Motley Fool recommends JetBlue Airways.
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Because a combined JetBlue and Spirit would directly impact markets where JetBlue's partner American Airlines (NASDAQ: AAL) operates, any deal between JetBlue and Spirit may lead antitrust regulators in New York to intervene. In early April, JetBlue offered a hostile bid of its own to buy Spirit, leaving airline stock investors uncertain about the eventual victor and hesitant to jump on the Spirit bandwagon. While wagering on Frontier or JetBlue's success looks risky, investors who get in on Spirit now could be well-positioned to either reinvest buyout funds from JetBlue in a stronger combined carrier, or enjoy immediate shares of a strengthened Frontier if and when consolidation completes.
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Because a combined JetBlue and Spirit would directly impact markets where JetBlue's partner American Airlines (NASDAQ: AAL) operates, any deal between JetBlue and Spirit may lead antitrust regulators in New York to intervene. JetBlue first bid $30 per share for Spirit, but has sweetened that offer to $33 as the shareholder vote approaches -- more than $10 per share ahead of Frontier's, which adds up to $21.60 at the latter company's current prices. This could leave investors wary that JetBlue has once again overextended itself in trying to woo existing Spirit shareholders, only to lose footing in key markets if Frontier's bid wins out.
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3513.0
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2022-06-02 00:00:00 UTC
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U.S. senators press U.S. airlines, USDOT on flight cancellations
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https://www.nasdaq.com/articles/u.s.-senators-press-u.s.-airlines-usdot-on-flight-cancellations
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By David Shepardson
WASHINGTON, June 2 (Reuters) - Two U.S. senators on Thursday urged airlines and regulators to take steps to reduce flight cancellations and delays after more than 2,700 Memorial Day weekend flights were cancelled.
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.
Democratic Senators Richard Blumenthal and Edward Markey asked Transportation Secretary Pete Buttigieg in a letter to detail steps the U.S. Department of Transportation (USDOT) "is taking to hold airlines accountable for serious disruptions and to ensure consumers are wholly and justly compensated."
They added: "While some flight cancellations are unavoidable, the sheer number of delays and cancellations this past weekend raises questions about airline decision-making."
They wrote Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others seeking an "update on airlines' plans to reduce and minimize the impact of such delays and cancellations going forward."
The group declined to comment Thursday.
Airlines are working to hire and train more workers to accommodate the growing demand. Delta Chief Executive Officer Ed Bastian told reporters Wednesday in New York the airline is working to train new employees "as we're seeing historic surging demand."
Lawmakers want USDOT to complete action on a number of rules to improve airline consumer protections.
Senate Commerce Committee chair Maria Cantwell, Blumenthal and Markey have asked Buttigieg to "define the timeframe for an eligible refund, and make the refund request process more transparent."
Buttigieg said in May USDOT is "actively working on a rulemaking that would address protections for consumers unable to travel due to restrictions or concerns related to serious communicable disease" and set a standard for when delays are long enough to trigger refunds. A Buttigieg spokeswoman said he would respond directly to the senators.
In January, USDOT issued a final rule to make it easier for regulators to move faster to protect airline customers from deceptive practices.
USDOT also plans to issue separate rules to require upfront disclosure of baggage fees, change fees and cancellation fees and proposed new rules to require passenger airlines to refund fees for significantly delayed bags and refunds for inoperative services like onboard Wi-Fi.
(Reporting by David Shepardson; editing by Bernard Orr)
((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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They wrote Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others seeking an "update on airlines' plans to reduce and minimize the impact of such delays and cancellations going forward." 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. Delta Chief Executive Officer Ed Bastian told reporters Wednesday in New York the airline is working to train new employees "as we're seeing historic surging demand."
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They wrote Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others seeking an "update on airlines' plans to reduce and minimize the impact of such delays and cancellations going forward." By David Shepardson WASHINGTON, June 2 (Reuters) - Two U.S. senators on Thursday urged airlines and regulators to take steps to reduce flight cancellations and delays after more than 2,700 Memorial Day weekend flights were cancelled. Democratic Senators Richard Blumenthal and Edward Markey asked Transportation Secretary Pete Buttigieg in a letter to detail steps the U.S. Department of Transportation (USDOT) "is taking to hold airlines accountable for serious disruptions and to ensure consumers are wholly and justly compensated."
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They wrote Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others seeking an "update on airlines' plans to reduce and minimize the impact of such delays and cancellations going forward." By David Shepardson WASHINGTON, June 2 (Reuters) - Two U.S. senators on Thursday urged airlines and regulators to take steps to reduce flight cancellations and delays after more than 2,700 Memorial Day weekend flights were cancelled. USDOT also plans to issue separate rules to require upfront disclosure of baggage fees, change fees and cancellation fees and proposed new rules to require passenger airlines to refund fees for significantly delayed bags and refunds for inoperative services like onboard Wi-Fi.
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They wrote Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others seeking an "update on airlines' plans to reduce and minimize the impact of such delays and cancellations going forward." By David Shepardson WASHINGTON, June 2 (Reuters) - Two U.S. senators on Thursday urged airlines and regulators to take steps to reduce flight cancellations and delays after more than 2,700 Memorial Day weekend flights were cancelled. Airlines are working to hire and train more workers to accommodate the growing demand.
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3514.0
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2022-06-02 00:00:00 UTC
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Chile copper output dragged down by Codelco, Collahuasi in April
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https://www.nasdaq.com/articles/chile-copper-output-dragged-down-by-codelco-collahuasi-in-april
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SANTIAGO, June 2 (Reuters) - Chile's copper production fell in April, government body Cochilco said on Thursday, with state-owned giant Codelco seeing output down 6.1% year-on-year to 116,000 tonnes and Collahuasi's production dropping by a sharp 26.5%.
Collahuasi, a venture involving Glencore GLEN.N and Anglo American AAL.L, produced 42,000 tonnes in the period, while output from another major mine, Escondida - which is controlled by BHP BHP.AX - rose 2.6% to 88,000 tonnes.
Chile's total copper production in the month fell 8.9% to 420,000 tonnes, Cochilco said in a report. The Andean country is the world's top copper producer.
(Reporting by Fabian Andres Cambro; Writing by Gabriel Araujo)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Collahuasi, a venture involving Glencore GLEN.N and Anglo American AAL.L, produced 42,000 tonnes in the period, while output from another major mine, Escondida - which is controlled by BHP BHP.AX - rose 2.6% to 88,000 tonnes. SANTIAGO, June 2 (Reuters) - Chile's copper production fell in April, government body Cochilco said on Thursday, with state-owned giant Codelco seeing output down 6.1% year-on-year to 116,000 tonnes and Collahuasi's production dropping by a sharp 26.5%. Chile's total copper production in the month fell 8.9% to 420,000 tonnes, Cochilco said in a report.
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Collahuasi, a venture involving Glencore GLEN.N and Anglo American AAL.L, produced 42,000 tonnes in the period, while output from another major mine, Escondida - which is controlled by BHP BHP.AX - rose 2.6% to 88,000 tonnes. SANTIAGO, June 2 (Reuters) - Chile's copper production fell in April, government body Cochilco said on Thursday, with state-owned giant Codelco seeing output down 6.1% year-on-year to 116,000 tonnes and Collahuasi's production dropping by a sharp 26.5%. Chile's total copper production in the month fell 8.9% to 420,000 tonnes, Cochilco said in a report.
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Collahuasi, a venture involving Glencore GLEN.N and Anglo American AAL.L, produced 42,000 tonnes in the period, while output from another major mine, Escondida - which is controlled by BHP BHP.AX - rose 2.6% to 88,000 tonnes. SANTIAGO, June 2 (Reuters) - Chile's copper production fell in April, government body Cochilco said on Thursday, with state-owned giant Codelco seeing output down 6.1% year-on-year to 116,000 tonnes and Collahuasi's production dropping by a sharp 26.5%. Chile's total copper production in the month fell 8.9% to 420,000 tonnes, Cochilco said in a report.
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Collahuasi, a venture involving Glencore GLEN.N and Anglo American AAL.L, produced 42,000 tonnes in the period, while output from another major mine, Escondida - which is controlled by BHP BHP.AX - rose 2.6% to 88,000 tonnes. SANTIAGO, June 2 (Reuters) - Chile's copper production fell in April, government body Cochilco said on Thursday, with state-owned giant Codelco seeing output down 6.1% year-on-year to 116,000 tonnes and Collahuasi's production dropping by a sharp 26.5%. Chile's total copper production in the month fell 8.9% to 420,000 tonnes, Cochilco said in a report.
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3515.0
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2022-06-01 00:00:00 UTC
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Why Airline Stocks Are Losing Altitude Today
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https://www.nasdaq.com/articles/why-airline-stocks-are-losing-altitude-today
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What happened
Airline stocks started Wednesday on an up note, fueled by positive commentary from Delta Air Lines (NYSE: DAL). But a grim forecast from JPMorgan Chase CEO Jamie Dimon gave rise to fresh recession fears, causing shares of Delta, American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) to all trade down 5% or more.
So what
As we've noted before, airline stocks are stuck in a holding pattern right now. Strong demand and pricing power is leading to higher-than-expected revenue growth throughout the industry, but that is being offset by higher costs. And with significant uncertainty surrounding issues ranging from a new COVID wave to a falloff in consumer demand, the stocks have had trouble climbing higher.
Image source: Delta Air Lines.
Delta got the trading day off to a positive start, releasing updated guidance that called for stronger revenue and operating margins than initially expected. Total revenue is expected to be 7% to 8% better than initially expected, and a forecasted operating margin of 13% to 14% would be at the high end of the initial guidance despite fuel prices that are up more than 70% from 2019.
Investors are well aware of the cost issues, but Delta's apparent ability to pass those costs on to consumers in the form of higher ticket prices is a positive sign. As a result, Delta initially traded up 1.8% on Wednesday morning, with other airline stocks following its lead.
The rally turned south along with the broader market after Dimon, speaking at an investor conference, said the U.S. economy faces a "hurricane" as the Federal Reserve attempts to battle rising inflation. Dimon is one of the most respected CEOs on Wall Street, and his bank's massive size and exposure to different markets give him a good view of how the economy is shifting.
The health of the economy is weighing on airline investors because airline tickets, by and large, are a discretionary spending item. If consumers are feeling the pinch of inflation, or worried about the direction that the economy is heading, it could cause them to postpone travel plans. Delta and other airlines have made it clear that the second quarter will come in strong, but many of those tickets were bought months ago. It is far less certain how sustainable this strong demand is, or what will happen to airlines once the summer vacation season ends.
Now what
There were other glimmers of hope out of Delta that should not be ignored. CEO Ed Bastian said during a presentation at an investor conference that corporate travel remains depressed in part because business flyers right now must "fight to get back on the airplane," a comment on just how strong leisure demand is right now. The implication is there are no seats left for last-minute business travel.
Business travel has been sluggish since the onset of the pandemic, and a recovery in corporate travel would go a long way toward filling the seats when the summer ends. Of course, those economic factors that Dimon mentioned could put a lid on business travel as well, but airline investors will be happy to know that demand for business tickets is on the upswing.
The issue, as it has been for a while, is that this recovery will take time. And with so much uncertainty about the economy and the pandemic, there is probably more risk to the downside than potential for a dramatic rise in the months to come.
Delta's update is a reminder that it is a well-run airline that seems likely to recover before some of the competition, but in this macro environment there is only so much any individual company can do. Thursday's trading action is a reminder to investors how much airline stocks right now are tied to conditions beyond their control.
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*Stock Advisor returns as of April 27, 2022
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Lou Whiteman has positions in Delta Air Lines. 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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But a grim forecast from JPMorgan Chase CEO Jamie Dimon gave rise to fresh recession fears, causing shares of Delta, American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) to all trade down 5% or more. Delta got the trading day off to a positive start, releasing updated guidance that called for stronger revenue and operating margins than initially expected. The rally turned south along with the broader market after Dimon, speaking at an investor conference, said the U.S. economy faces a "hurricane" as the Federal Reserve attempts to battle rising inflation.
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But a grim forecast from JPMorgan Chase CEO Jamie Dimon gave rise to fresh recession fears, causing shares of Delta, American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) to all trade down 5% or more. What happened Airline stocks started Wednesday on an up note, fueled by positive commentary from Delta Air Lines (NYSE: DAL). The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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But a grim forecast from JPMorgan Chase CEO Jamie Dimon gave rise to fresh recession fears, causing shares of Delta, American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) to all trade down 5% or more. What happened Airline stocks started Wednesday on an up note, fueled by positive commentary from Delta Air Lines (NYSE: DAL). 10 stocks we like better than Delta Air Lines When our award-winning analyst team has a stock tip, it can pay to listen.
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But a grim forecast from JPMorgan Chase CEO Jamie Dimon gave rise to fresh recession fears, causing shares of Delta, American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) to all trade down 5% or more. What happened Airline stocks started Wednesday on an up note, fueled by positive commentary from Delta Air Lines (NYSE: DAL). Business travel has been sluggish since the onset of the pandemic, and a recovery in corporate travel would go a long way toward filling the seats when the summer ends.
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3516.0
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2022-06-01 00:00:00 UTC
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New York LaGuardia airport reveals $8 bln makeover
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AAL
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https://www.nasdaq.com/articles/new-york-laguardia-airport-reveals-%248-bln-makeover
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nan
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nan
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By David Shepardson
NEW YORK, June 1 (Reuters) - New York officials on Wednesday celebrated the six-year $8 billion reconstruction of the city's long-derided LaGuardia airport with a brand new Delta Air Lines DAL.N terminal.
Delta's glittering 1.3 million-square foot $4 billion Terminal C will begin flights on Saturday at nine of the 37 new gates. Delta, the largest carrier at LaGuardia, is flying 255 flights daily to 70 cities this summer.
New York and airlines spent $8 billion to reconstruct the airport that then-Vice President Joe Biden in 2014 dubbed "some third-world country."
New York Governor Kathy Hochul did not forget Biden's earlier assessment. "Come see this, President Biden, because your jaw is going to drop," Hochul said at a grand opening event.
Rick Cotton, executive director of the Port Authority of New York and New Jersey, said LaGuardia had transformed from the "most reviled airport in the nation" into a world-class facility.
Airlines provided about two-thirds of the cost, with about $3.4 billion from Delta, New York said.
American Airlines AAL.O in 2020 opened its new arrivals and departures hall at LaGuardia Terminal B. In January, the $4 billion terminal redevelopment project was completed.
In 2017, New York and Delta broke ground to consolidate Terminals C and D into a single terminal across four concourses and a centralized departures and arrivals hall. The terminal features high-tech art work, power outlets at all seats and fancy new restaurants.
Delta Chief Executive Ed Bastian said that in 2017 "it was the single biggest investment decision" in the airline's history. Delta is investing more than $6 billion in New York's LaGuardia and John F. Kennedy International Airport, he added.
The new LaGuardia terminal includes Delta's largest airport lounge, a 34,000-square foot Sky Club with panoramic views that when finished can accommodate nearly 600 people.
In 2021, LaGuardia was the 25th busiest U.S. airport serving 7.8 million passengers. The New York City area, with three major airports, is the most congested airspace in the United states.
Airlines are forecasting record travel demand this summer as Americans who delayed trips during COVID-19 return to the skies.
(Reporting by David Shepardson; Editing by Richard Chang)
((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 in 2020 opened its new arrivals and departures hall at LaGuardia Terminal B. New York and airlines spent $8 billion to reconstruct the airport that then-Vice President Joe Biden in 2014 dubbed "some third-world country." Rick Cotton, executive director of the Port Authority of New York and New Jersey, said LaGuardia had transformed from the "most reviled airport in the nation" into a world-class facility.
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American Airlines AAL.O in 2020 opened its new arrivals and departures hall at LaGuardia Terminal B. New York and airlines spent $8 billion to reconstruct the airport that then-Vice President Joe Biden in 2014 dubbed "some third-world country." The new LaGuardia terminal includes Delta's largest airport lounge, a 34,000-square foot Sky Club with panoramic views that when finished can accommodate nearly 600 people.
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American Airlines AAL.O in 2020 opened its new arrivals and departures hall at LaGuardia Terminal B. By David Shepardson NEW YORK, June 1 (Reuters) - New York officials on Wednesday celebrated the six-year $8 billion reconstruction of the city's long-derided LaGuardia airport with a brand new Delta Air Lines DAL.N terminal. In 2017, New York and Delta broke ground to consolidate Terminals C and D into a single terminal across four concourses and a centralized departures and arrivals hall.
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American Airlines AAL.O in 2020 opened its new arrivals and departures hall at LaGuardia Terminal B. New York and airlines spent $8 billion to reconstruct the airport that then-Vice President Joe Biden in 2014 dubbed "some third-world country." The new LaGuardia terminal includes Delta's largest airport lounge, a 34,000-square foot Sky Club with panoramic views that when finished can accommodate nearly 600 people.
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3517.0
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2022-05-31 00:00:00 UTC
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Down 27% In A Month, Will Boeing Stock See Even Lower Levels?
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AAL
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https://www.nasdaq.com/articles/down-27-in-a-month-will-boeing-stock-see-even-lower-levels
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nan
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nan
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Boeing stock (NYSE: BA) has fallen 27% in a month, while it’s down 39% YTD. Much of this fall came after the company reported downbeat Q1 results earlier this month. The company reported an 8% y-o-y decline in sales, and its loss widened. Both – commercial airplanes, and defense and space businesses – saw lower sales compared to the prior-year quarter. Furthermore, recently the stock came under pressure after a media report on a delay of six to eight weeks due to supply chain disruptions and labor issues from jet engine maker CFM International surfaced.
Boeing needs to ramp up its deliveries, which fell to 35 in April from the 41 jets it handed over in March, and investors are concerned about ramping up the jet deliveries in the near future. BA stock got some respite in yesterday’s trading session. The stock rose 5% after it brought the Starliner space capsule safely back to Earth, raising optimism for its space business among investors.
Now that BA has seen a fall of 27% in a month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a slightly higher chance of a fall for BA stock over the next month. It’s uncommon for BA stock to fall at this pace. Of 23 instances in the last ten years that BA stock saw a twenty-one-day fall of 27% or more, only 11 resulted in BA stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 11 out of 23, or about a 48% chance of a rise in BA stock over the next month. See our analysis of Boeing Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years’ data
After moving -3% or more over five days, the stock rose on 56% of the occasions in the next five days.
After moving -6% or more over ten days, the stock rose on 57% of the occasions in the next ten days.
After moving -27% or more over a twenty-one-day period, the stock rose on 48% of the occasions in the next twenty-one days.
This pattern suggests a slightly higher chance of a rise in BA stock over the next five days and the next ten days, but it may see lower levels over the next month.
Boeing (BA) Stock Return (Recent) Comparison With Peers
Five-Day Return: LMT highest at 3.0%; BA lowest at -2.8%
Ten-Day Return: NOC highest at 4.7%; BA lowest at -5.7%
Twenty-One Day Return: NOC highest at 5.7%; BA lowest at -26.9%
may have moved, 2020 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 Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While BA stock may see lower levels, 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 Honeywell vs. NiSource.
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 May 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
BA Return -14% -37% -18%
S&P 500 Return -2% -15% 81%
Trefis Multi-Strategy Portfolio -3% -19% 218%
[1] Month-to-date and year-to-date as of 5/27/2022
[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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Both – commercial airplanes, and defense and space businesses – saw lower sales compared to the prior-year quarter. Furthermore, recently the stock came under pressure after a media report on a delay of six to eight weeks due to supply chain disruptions and labor issues from jet engine maker CFM International surfaced. Going by historical performance, there is a slightly higher chance of a fall for BA stock over the next month.
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Boeing (BA) Stock Return (Recent) Comparison With Peers Five-Day Return: LMT highest at 3.0%; BA lowest at -2.8% Ten-Day Return: NOC highest at 4.7%; BA lowest at -5.7% Twenty-One Day Return: NOC highest at 5.7%; BA lowest at -26.9% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While BA stock may see lower levels, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. Total [2] BA Return -14% -37% -18% S&P 500 Return -2% -15% 81% Trefis Multi-Strategy Portfolio -3% -19% 218% [1] Month-to-date and year-to-date as of 5/27/2022 [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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Of 23 instances in the last ten years that BA stock saw a twenty-one-day fall of 27% or more, only 11 resulted in BA stock rising over the subsequent one-month period (twenty-one trading days). Boeing (BA) Stock Return (Recent) Comparison With Peers Five-Day Return: LMT highest at 3.0%; BA lowest at -2.8% Ten-Day Return: NOC highest at 4.7%; BA lowest at -5.7% Twenty-One Day Return: NOC highest at 5.7%; BA lowest at -26.9% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. Total [2] BA Return -14% -37% -18% S&P 500 Return -2% -15% 81% Trefis Multi-Strategy Portfolio -3% -19% 218% [1] Month-to-date and year-to-date as of 5/27/2022 [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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Of 23 instances in the last ten years that BA stock saw a twenty-one-day fall of 27% or more, only 11 resulted in BA stock rising over the subsequent one-month period (twenty-one trading days). This pattern suggests a slightly higher chance of a rise in BA stock over the next five days and the next ten days, but it may see lower levels over the next month. Total [2] BA Return -14% -37% -18% S&P 500 Return -2% -15% 81% Trefis Multi-Strategy Portfolio -3% -19% 218% [1] Month-to-date and year-to-date as of 5/27/2022 [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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3518.0
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2022-05-31 00:00:00 UTC
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Is United Airlines Stock On The Move?
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AAL
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https://www.nasdaq.com/articles/is-united-airlines-stock-on-the-move
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nan
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nan
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The shares of United Airlines (NASDAQ: UAL) have remained relatively flat since April despite a sizable contraction in broader markets. Rising energy costs and skyrocketing inflation have taken a toll on growth and profitability metrics of the transportation industry, but strong air travel demand is likely to drive UAL stock as macroeconomic tensions ease. While the geopolitical uncertainty due to the Russia-Ukraine war is jeopardizing global economic growth and triggering measures such as new energy security alliances, passenger numbers at TSA checkpoints is a positive indicator for the airline industry. Moreover, United Airlines incurred $4 billion of operating cash burn in the last two years which stands lower than the $10 billion contraction in its market capitalization. Our interactive dashboard on United Airlines valuation highlights the historical trends in revenues, earnings, valuation multiple, and forecast for FY2022.
How did United Airlines perform in 2021 and Q1 2022?
In 2021, United Airlines reported $24.6 billion of total revenues and $2 billion of operating cash assisted by PSP-2 and PSP-3 (payroll support program) proceeds. The company’s operating metrics reached pre-pandemic levels during the latter part of the year as declining infection rates pushed travel demand. In H1 2021, the company’s ASMs (available seat miles), occupancy rate, and yield (cents) were 70k, 65.4%, and 14.60, respectively. For the full-year, ASMs (available seat miles), occupancy rate, and yield (cents) reached 178k, 72.2%, and 15.66, respectively. While the demand factors improved during fall and winter, inflationary pressures from the Russia-Ukraine war and supply chain hurdles created macroeconomic headwinds for the airline industry.
In Q1 2022, the company reported $7.5 billion in revenues – just 21% lower than Q1 2019. Rising benchmark prices, staffing issues, and the Omicron wave augmented operational challenges. Notably, CASM-Ex (cost per available seat miles excluding fuel expense) surged by 18% when compared to Q1 2019, largely due to comparable overall costs and lower aircraft utilization rate. Thus, United booked a net loss of $1.4 billion for the quarter.
Inflation moving in sync with benchmark oil prices
The consumer price index for urban consumers (CPI-U) observed an 8.3% (y-o-y) jump in April 2022, primarily from rising energy costs which are having ripple effects across the economy. Inflation in key items such as food, energy, other commodities, shelter, medical services, and airline fares was 9.4%, 30.3%, 9.7%, 5.1%, 3.5%, and 33.3%, respectively. Given the 40% increase in benchmark oil prices in the past year, increasing airfares is the only option for airlines to bolster their bottom line. Interestingly, the Brent benchmark is likely to trend downward from $103 in 2022 to $97 in 2023 according to EIA. Similarly, the World Bank expects Brent crude to observe a decline from $100 in 2022 to $92 in 2023 and $80 in 2024 – raising hopes of a return to normalcy as geopolitical tensions ease in various parts of the world.
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 May 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
UAL Return -9% 5% -37%
S&P 500 Return -2% -15% 81%
Trefis Multi-Strategy Portfolio -3% -19% 218%
[1] Month-to-date and year-to-date as of 5/27/2022
[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.
|
Rising energy costs and skyrocketing inflation have taken a toll on growth and profitability metrics of the transportation industry, but strong air travel demand is likely to drive UAL stock as macroeconomic tensions ease. While the geopolitical uncertainty due to the Russia-Ukraine war is jeopardizing global economic growth and triggering measures such as new energy security alliances, passenger numbers at TSA checkpoints is a positive indicator for the airline industry. While the demand factors improved during fall and winter, inflationary pressures from the Russia-Ukraine war and supply chain hurdles created macroeconomic headwinds for the airline industry.
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In 2021, United Airlines reported $24.6 billion of total revenues and $2 billion of operating cash assisted by PSP-2 and PSP-3 (payroll support program) proceeds. In H1 2021, the company’s ASMs (available seat miles), occupancy rate, and yield (cents) were 70k, 65.4%, and 14.60, respectively. For the full-year, ASMs (available seat miles), occupancy rate, and yield (cents) reached 178k, 72.2%, and 15.66, respectively.
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Moreover, United Airlines incurred $4 billion of operating cash burn in the last two years which stands lower than the $10 billion contraction in its market capitalization. In 2021, United Airlines reported $24.6 billion of total revenues and $2 billion of operating cash assisted by PSP-2 and PSP-3 (payroll support program) proceeds. Total [2] UAL Return -9% 5% -37% S&P 500 Return -2% -15% 81% Trefis Multi-Strategy Portfolio -3% -19% 218% [1] Month-to-date and year-to-date as of 5/27/2022 [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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Moreover, United Airlines incurred $4 billion of operating cash burn in the last two years which stands lower than the $10 billion contraction in its market capitalization. The company’s operating metrics reached pre-pandemic levels during the latter part of the year as declining infection rates pushed travel demand. Inflation moving in sync with benchmark oil prices The consumer price index for urban consumers (CPI-U) observed an 8.3% (y-o-y) jump in April 2022, primarily from rising energy costs which are having ripple effects across the economy.
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3519.0
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2022-05-30 00:00:00 UTC
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U.S airlines cancel 2,500 flights over Memorial holiday weekend
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AAL
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https://www.nasdaq.com/articles/u.s-airlines-cancel-2500-flights-over-memorial-holiday-weekend
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nan
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nan
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By David Shepardson
WASHINGTON, May 30 (Reuters) - U.S. airlines, which are still rebuilding flight crews after the COVID-19 pandemic travel slowdown, canceled more than2,500 flights over the four-day Memorial Day holiday that marks the traditional start of the busy summer travel season.
Airlines worldwide canceled more than 1,500 flights on Monday, according to FlightAware, after cancelling 1,642 on Sunday. On Monday, there were about 400 U.S. flights canceled and 2,400 delayed, the flight tracking website said.
Thunderstorms in Florida, New York and the mid-Atlantic were a factor in this weekend's flight delays and cancellations, airlines said.
Airlines have attributed recent flight cancellations to weather, air traffic control, COVID-19 cases among employees and other staffing issues.
At the same time, airlines are working to ramp up staffing to handle expected record summer travel demand. A total of 6.5 million air passengers were screened by the U.S. Transportation Security Administration during the first three days of the holiday travel period, down about 10% over the same period in 2019, but up over 2021 levels.
Delta Air Lines DAL.N canceled about 700 flights over the four-day period, according to FlightAware, including 134 flights on Monday, or about 4% of scheduled trips. On Monday, Delta delayed 9% of its flights.
Delta said Monday that over the weekend it had been working to cancel flights "at least 24 hours in advance of departure time wherever possible." The airline said 94% of passengers on Sunday were accommodated on alternative flights within an average of 10 hours of their original departure time.
On Thursday, Delta said it was trimming some flights over the Memorial Day weekend and into early August to improve operational reliability.
Severe thunderstorms in Miami were a significant factor in flight cancellations and delays, American Airlines AAL.O said. The airline canceled 119 flights on Monday and 74 on Sunday, or about 2% of scheduled trips. It also delayed 11% of flights on Monday.
A growing percentage of U.S. flights fly through Florida. In total, 45% of JetBlue JBLU.O flights touch Florida, while 40-50% of Southwest Airlines LUV.N touch Florida on any given day.
JetBlue Airways JBLU.O delayed 18% of its flights on Monday after delaying 30% on Sunday but canceled only 1% on Monday. Last month, JetBlue said it was reducing its originally planned summer schedule by more than 10%.
(Reporting by David Shepardson; Editing by David Gregorio)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Severe thunderstorms in Miami were a significant factor in flight cancellations and delays, American Airlines AAL.O said. Airlines have attributed recent flight cancellations to weather, air traffic control, COVID-19 cases among employees and other staffing issues. At the same time, airlines are working to ramp up staffing to handle expected record summer travel demand.
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Severe thunderstorms in Miami were a significant factor in flight cancellations and delays, American Airlines AAL.O said. By David Shepardson WASHINGTON, May 30 (Reuters) - U.S. airlines, which are still rebuilding flight crews after the COVID-19 pandemic travel slowdown, canceled more than2,500 flights over the four-day Memorial Day holiday that marks the traditional start of the busy summer travel season. Delta Air Lines DAL.N canceled about 700 flights over the four-day period, according to FlightAware, including 134 flights on Monday, or about 4% of scheduled trips.
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Severe thunderstorms in Miami were a significant factor in flight cancellations and delays, American Airlines AAL.O said. By David Shepardson WASHINGTON, May 30 (Reuters) - U.S. airlines, which are still rebuilding flight crews after the COVID-19 pandemic travel slowdown, canceled more than2,500 flights over the four-day Memorial Day holiday that marks the traditional start of the busy summer travel season. On Monday, there were about 400 U.S. flights canceled and 2,400 delayed, the flight tracking website said.
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Severe thunderstorms in Miami were a significant factor in flight cancellations and delays, American Airlines AAL.O said. On Monday, Delta delayed 9% of its flights. Delta said Monday that over the weekend it had been working to cancel flights "at least 24 hours in advance of departure time wherever possible."
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3520.0
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2022-05-27 00:00:00 UTC
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Why Airline Stocks Flew Higher Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-flew-higher-today
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nan
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nan
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What happened
On Friday, investors were digesting fresh data that suggested a "Goldilocks" economy -- not too hot, but not too cold -- is still a reasonable forecast for the quarters ahead. That would be good news for a whole range of industries including airlines, a sector that could be at risk of seeing demand dry up if consumers are feeling stressed.
Airline investors reacted to the latest data with a cheer, sending shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) up 5% apiece on Friday.
So what
Airline investors are doing their best to be economic forecasters right now. The airlines came into 2022 hoping for a year of recovery, with strong pent-up demand giving revenues a boost and helping carriers rejuvenate balance sheets that were bruised during the pandemic. The summer demand has developed as expected, but airlines have been forced to deal with unexpected headwinds including higher labor and fuel costs.
Image source: Getty Images.
On Thursday, several airlines provided updated guidance suggesting that although costs are higher, strong pricing power is helping them to offset those elevated costs. That's good news for the time being, but it could change on a dime if rising inflation diminishes consumer confidence and spending and causes that strong pricing power to evaporate overnight.
That's why the sector reacted so favorably to Friday's macroeconomic data. The closely watched core personal consumption expenditures (PCE) provided a hint that inflationary pressures might be easing. Headline PCE increased by 6.3% in April over a year ago, down from 6.6% in March. And separate data showed that personal spending, adjusted for inflation, accelerated in April.
It's certainly not data that suggests the battle against inflation is over, but it does at least provide a glimmer of hope that the rate of increase is slowing. And the personal spending data indicates that Americans are not yet changing their habits due to inflation -- good news for big-ticket, nonessential items like airplane tickets.
For the airlines, such an outcome would likely be viewed as good enough. The hoped-for 2022 recovery is now unlikely since so much of the added revenue is going to offset costs instead of to pay down debt. But the airlines can survive the status quo, and investors are reacting positively to the data suggesting that conditions are not deteriorating.
Now what
Of course, there are limits to the good news. The airlines will continue to face cost pressures for the foreseeable future. Even if fuel costs fall back to 2021 levels, the airlines are struggling to find enough flight crews to complete their schedules, let alone think of expansion, so labor costs are likely to be on the rise for some time to come.
The risk in investing in airlines has come down substantially, but the upside still remains a long way off. Investors buying in today should be warned that a full recovery, including a return of international and business travel, could take until the second half of the decade. And there are still potential downside risks that have to be considered, including the threat of a new pandemic wave that could at least temporarily tamper travel demand.
Investors should resist the temptation of buying into the rally. If recent history is a guide, these airline stocks will continue to trade based on overall market sentiment and the latest reads on the economy. There is likely limited downside to waiting to see what bookings look like past Labor Day before climbing on board.
10 stocks we like better than American Airlines Group
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Lou Whiteman has positions in Spirit Airlines. The Motley Fool has positions in and recommends Spirit 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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Airline investors reacted to the latest data with a cheer, sending shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) up 5% apiece on Friday. What happened On Friday, investors were digesting fresh data that suggested a "Goldilocks" economy -- not too hot, but not too cold -- is still a reasonable forecast for the quarters ahead. The airlines came into 2022 hoping for a year of recovery, with strong pent-up demand giving revenues a boost and helping carriers rejuvenate balance sheets that were bruised during the pandemic.
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Airline investors reacted to the latest data with a cheer, sending shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) up 5% apiece on Friday. On Thursday, several airlines provided updated guidance suggesting that although costs are higher, strong pricing power is helping them to offset those elevated costs. See the 10 stocks *Stock Advisor returns as of April 27, 2022 Lou Whiteman has positions in Spirit Airlines.
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Airline investors reacted to the latest data with a cheer, sending shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) up 5% apiece on Friday. On Thursday, several airlines provided updated guidance suggesting that although costs are higher, strong pricing power is helping them to offset those elevated costs. See the 10 stocks *Stock Advisor returns as of April 27, 2022 Lou Whiteman has positions in Spirit Airlines.
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Airline investors reacted to the latest data with a cheer, sending shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) up 5% apiece on Friday. On Thursday, several airlines provided updated guidance suggesting that although costs are higher, strong pricing power is helping them to offset those elevated costs. Now what Of course, there are limits to the good news.
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3521.0
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2022-05-26 00:00:00 UTC
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Why Airline Stocks Are Soaring Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-soaring-today-2
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nan
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nan
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What happened
U.S. airlines are presenting at an industry conference on Thursday, and investors are excited about what they are saying. Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded up more than 5% on Thursday afternoon on optimism about their outlook for the year.
So what
It's a confusing time to be an airline investor. After two years of depressed revenue due to the pandemic, demand is strong heading into the important summer tourism season. But higher fuel and labor costs threaten to eat into that summer surge, and the growing threat of inflation eating into consumer spending as investors wondering how long the upswing can last.
On Thursday, a number of airlines updated their outlook for the current quarter, and investors seemed relieved with what they heard. Southwest said that demand continues to be strong, despite rising inflation, and said that although fuel costs will come in well above expectations, strong pricing power will more than offset the higher expense.
Image source: Getty Images.
JetBlue wasn't quite as upbeat, but did say that it remains confident it will be able to pass on higher fuel costs to customers in the near term due to strong demand.
Part of the reason pricing remains strong is that airlines are resisting the temptation to flood the market with additional flights. On Thursday, Delta provided a fresh indication that discipline is holding. In a memo to employees obtained by the media, the company said it would trim about 100 flights a day in the U.S. and Latin America in July and early August to help ensure the reliability of its schedule.
Weather delays tend to wreak havoc on summer schedules even in the best of times, and with the lingering threat of COVID-19 cases causing disruptions, Delta has decided not to push its schedule too tight. The airlines are also dealing with labor shortages, which are providing a cap on how quickly they could expand even if they want to.
Now what
The good news is demand is strong enough to offset cost pressures. The bad news is that these conditions are causing the airlines to leave a lot of money on the table. As Cowen analyst Helene Becker put it in a Thursday note to investors, JetBlue is really saying that its higher revenue won't lead to a smaller loss.
This status quo is a lot better than in the spring of 2020, when no one was flying. And the airlines have the wherewithal to navigate current conditions for a long time. The issue for investors is that the constraints caused by cost headwinds are likely to put a near-term cap on how high the sector can soar as well.
For those willing to ride through the turbulence, Delta's proactive trimming is a reminder of why it is a best-of-class carrier. Since the start of the pandemic, the company has tried to position itself as the carrier of choice for travelers through more reliable scheduling and keeping safety requirements in place well past when they were required. In a business where for decades the airlines chased the extra dollar of revenue even at the expense of profitability, it is encouraging to see capacity discipline holding up during the busy summer months.
10 stocks we like better than Delta Air Lines
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*Stock Advisor returns as of April 27, 2022
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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Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded up more than 5% on Thursday afternoon on optimism about their outlook for the year. JetBlue wasn't quite as upbeat, but did say that it remains confident it will be able to pass on higher fuel costs to customers in the near term due to strong demand. In a memo to employees obtained by the media, the company said it would trim about 100 flights a day in the U.S. and Latin America in July and early August to help ensure the reliability of its schedule.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded up more than 5% on Thursday afternoon on optimism about their outlook for the year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded up more than 5% on Thursday afternoon on optimism about their outlook for the year. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded up more than 5% on Thursday afternoon on optimism about their outlook for the year. So what It's a confusing time to be an airline investor. JetBlue wasn't quite as upbeat, but did say that it remains confident it will be able to pass on higher fuel costs to customers in the near term due to strong demand.
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3522.0
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2022-05-25 00:00:00 UTC
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5 Broker-Friendly Stocks to Tide Over the Market Doldrums
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AAL
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https://www.nasdaq.com/articles/5-broker-friendly-stocks-to-tide-over-the-market-doldrums
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nan
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nan
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The S&P 500 Index has lost 17.3% of its value so far this year amid massive market volatility. The other two major stock indexes, namely the Dow Jones Industrial Average and the tech-heavy Nasdaq composite have also been in the red with a decline of 12.1% and 28%, respectively, year to date. After robust returns during 2021, Wall Street experienced a slowdown in 2022.
A spate of headwinds, ranging from the prolonged Russia-Ukraine war, record-high inflation and a higher interest rate environment rendered extreme market volatility, thus inducing the current sorry state of affairs. Despite the current turmoil, shunning equities is an absolute no-no for investors. So what’s the way forward to reap handsome returns from one’s portfolio even during the current uncertainty?
One way to proceed in this scenario is by adhering to broker advice. By following this method, broker-friendly stocks like, Cross Country Healthcare CCRN, American Airlines AAL, ArcBest Corporation (ARCB), ClearwaterPaper CLW and Avnet AVT should be included in an investor’s watchlist for healthy returns.
As brokers indulge in extensive research of stocks under their coverage, they have access to much detailed information on a company. To this end, they attend company conference calls/presentations and scrutinize every piece of information available in the public domain before advising investors. Naturally, broker advice acts as an invaluable guide for investors in their bid to garner the maximum from their portfolios.
Direction of Earnings Estimates: A Good Pointer
Since brokers follow the stocks in their coverage with great detail, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. The estimate revisions serve as an important pointer regarding the price of a stock.
For example, an earnings outperformance by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings often cause stock price depreciation. Investors tend to be guided by the direction of estimate revisions and the stock price while formulating their investment strategy.
Making the Most of Broker Aid
The above write-up clearly suggests that by following broker actions, one can arrive at a promising portfolio of stocks. Keeping this in mind, we designed a screen to shortlist stocks based on improving analyst recommendations and upward earnings estimate revisions over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is taken into consideration. The price/sales ratio takes care of the company’s top line, making the strategy effective.
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.
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks.
Price greater than 5: A stock trading below $5 will not likely be of significant interest to most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 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 passed the screen:
Cross Country Healthcare is currently benefiting from the pandemic-led rise in demand for healthcare staffing, investments in headcount and technology, and higher operational effectiveness. Digital transformation and operational efficiency are enabling CCRN to cater to the continuous buoyancy in demand in specialties, such as emergency room, operating room, labor, pediatrics, and delivery and medical-surgical services.
The Zacks Consensus Estimate for Cross Country Healthcare’s 2022 earnings has been revised 83.66% upward in the past 60 days. CCRN currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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 56.91% upward. AAL currently carries a Zacks Rank of 3.
ArcBest Corporation currently carries a Zacks Rank #3 (Hold). ARCB’s earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 25.58%. The Zacks Consensus Estimate for ARCB’s 2022 earnings has been revised 23.73% upward in the past 60 days.
Improving freight conditions in the United States bode well for ArcBest. Solid customer demand and higher market rates are supporting ARCB.
Clearwater Paper is being aided by robust packaging demand. CLW’s commitment to reducing its debt levels and deploying a prudent capital structure provides ample liquidity. Continued focus on operational execution will drive margins.
The Zacks Consensus Estimate for Clearwater Paper’s 2022 earnings has been revised 18.42% upward in the past 60 days. CLW, currently carrying a Zacks Rank #2 (Buy), has an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 37.76%.
Avnet is benefiting from robust demand for its products across Asia, Europe, the Middle East and Africa (EMEA) regions. Improvement in the Americas also served as a tailwind. Its continued focus on boosting the IoT capabilities is helping it expand in the newer markets and win customers. Moreover, cost-saving efforts are aiding profitability.
Avnet, currently sporting a Zacks Rank of 1, has an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 21.22%. The AVT stock has appreciated 2.3% in a year’s time.
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.
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’ Top Picks to Cash in on Artificial Intelligence
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Avnet, Inc. (AVT): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Clearwater Paper Corporation (CLW): Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN): Free Stock Analysis Report
ArcBest Corporation (ARCB): 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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By following this method, broker-friendly stocks like, Cross Country Healthcare CCRN, American Airlines AAL, ArcBest Corporation (ARCB), ClearwaterPaper CLW and Avnet AVT should be included in an investor’s watchlist for healthy returns. 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 56.91% upward.
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By following this method, broker-friendly stocks like, Cross Country Healthcare CCRN, American Airlines AAL, ArcBest Corporation (ARCB), ClearwaterPaper CLW and Avnet AVT should be included in an investor’s watchlist for healthy returns. 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 56.91% upward.
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Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 56.91% upward. By following this method, broker-friendly stocks like, Cross Country Healthcare CCRN, American Airlines AAL, ArcBest Corporation (ARCB), ClearwaterPaper CLW and Avnet AVT should be included in an investor’s watchlist for healthy returns. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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By following this method, broker-friendly stocks like, Cross Country Healthcare CCRN, American Airlines AAL, ArcBest Corporation (ARCB), ClearwaterPaper CLW and Avnet AVT should be included in an investor’s watchlist for healthy returns. 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 56.91% upward.
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3523.0
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2022-05-24 00:00:00 UTC
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Tuesday Sector Laggards: Services, Industrial
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AAL
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https://www.nasdaq.com/articles/tuesday-sector-laggards%3A-services-industrial
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nan
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nan
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Looking at the sectors faring worst as of midday Tuesday, shares of Services companies are underperforming other sectors, showing a 3.0% loss. Within the sector, Carnival Corp (Symbol: CCL) and Caesars Entertainment Inc (Symbol: CZR) are two large stocks that are lagging, showing a loss of 10.9% and 9.8%, respectively. Among the largest ETFs, one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is down 2.9% on the day, and down 31.57% year-to-date. Carnival Corp, meanwhile, is down 41.97% year-to-date, and Caesars Entertainment Inc, is down 53.49% year-to-date. Combined, CCL and CZR make up approximately 0.5% of the underlying holdings of IYC.
The next worst performing sector is the Industrial sector, showing a 1.8% loss. Among large Industrial stocks, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a loss of 11.9% and 7.6%, respectively. One ETF closely tracking Industrial stocks is the Industrial Select Sector SPDR ETF (XLI), which is down 1.0% in midday trading, and down 14.37% on a year-to-date basis. Norwegian Cruise Line Holdings Ltd, meanwhile, is down 35.85% year-to-date, and American Airlines Group Inc, is down 13.81% year-to-date. AAL makes up approximately 0.4% of the underlying holdings of XLI.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday. As you can see, one sector is up on the day, while eight sectors are down.
SECTOR % CHANGE
Utilities +0.9%
Energy -0.7%
Consumer Products -0.9%
Healthcare -1.1%
Financial -1.2%
Materials -1.5%
Technology & Communications -1.7%
Industrial -1.8%
Services -3.0%
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among large Industrial stocks, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a loss of 11.9% and 7.6%, respectively. AAL makes up approximately 0.4% of the underlying holdings of XLI. Combined, CCL and CZR make up approximately 0.5% of the underlying holdings of IYC.
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Among large Industrial stocks, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a loss of 11.9% and 7.6%, respectively. AAL makes up approximately 0.4% of the underlying holdings of XLI. Within the sector, Carnival Corp (Symbol: CCL) and Caesars Entertainment Inc (Symbol: CZR) are two large stocks that are lagging, showing a loss of 10.9% and 9.8%, respectively.
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Among large Industrial stocks, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a loss of 11.9% and 7.6%, respectively. AAL makes up approximately 0.4% of the underlying holdings of XLI. Among the largest ETFs, one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is down 2.9% on the day, and down 31.57% year-to-date.
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Among large Industrial stocks, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a loss of 11.9% and 7.6%, respectively. AAL makes up approximately 0.4% of the underlying holdings of XLI. Looking at the sectors faring worst as of midday Tuesday, shares of Services companies are underperforming other sectors, showing a 3.0% loss.
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3524.0
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2022-05-24 00:00:00 UTC
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Why Airline Shares Are Losing Altitude Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-losing-altitude-today
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nan
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nan
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What happened
Investors are increasingly growing fearful that the economy is slowing, leading to yet another day where markets are in the red. Airline stocks are getting caught up in the sell-off, with a basket of carriers including Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and JetBlue Airways (NASDAQ: JBLU) all down about 5% in midday trading Tuesday.
So what
2022 has been a year of changing expectations for airline investors. Coming into the year, investors were hopeful that strong demand would help the industry make up for losses sustained during the height of the pandemic, when few were traveling. But an eager consumer has been at least partially offset by higher fuel and labor costs.
Image source: Getty Images.
Investors are now becoming worried that the demand side of the equation might not be sustainable. Earnings season has brought a handful of surprises from retailers, seemingly indicating that inflation is eating into consumer spending.
Airlines by and large were bullish on how the second quarter was going when they last updated investors, but travel tends to be booked well in advance and a lot of that demand likely came in before inflation became a hot topic. Retailers would likely see the impact of a consumer pullback almost immediately in their results, and weakness there can be seen as an indication that airlines might not enjoy as much pricing power in the back half of the summer and heading into the fall.
JetBlue could be under added pressure today due to a small development in its ongoing campaign to acquire Spirit Airlines. Spirit CEO Ted Christie said it was "unlikely" the airline's shareholders would reject Spirit's proposed merger with Frontier Group Holdings, a necessary step in JetBlue's plan to snatch Spirit for itself. Spirit will hold a shareholder meeting on June 10 to vote on the Frontier transaction.
Now what
It's hard to say anything definitive on inflation or how airline demand will hold up in the second half of the year. In one sense, after a couple of years stuck at home, there is clearly pent-up demand for travel and experiences. But potential threats including inflation, new COVID-19 waves, and anemic business travel demand weigh heavily on investors.
In times of great uncertainty, it really isn't a surprise to see investors sitting on the sidelines and for there to be a lack of buyers of these stocks. All of the airlines should have balance sheets healthy enough to survive whatever comes their way, but it could take years before their businesses fully recover and the sector can really push higher.
For those willing to buy in today and ride through the turbulence, Delta is a best-in-class operator that is set up well to recover ahead of some of its peers. But given how long this journey is likely to take, there isn't a reason for investors to jump on board right now.
10 stocks we like better than Delta Air Lines
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 27, 2022
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 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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Airline stocks are getting caught up in the sell-off, with a basket of carriers including Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and JetBlue Airways (NASDAQ: JBLU) all down about 5% in midday trading Tuesday. Coming into the year, investors were hopeful that strong demand would help the industry make up for losses sustained during the height of the pandemic, when few were traveling. Airlines by and large were bullish on how the second quarter was going when they last updated investors, but travel tends to be booked well in advance and a lot of that demand likely came in before inflation became a hot topic.
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Airline stocks are getting caught up in the sell-off, with a basket of carriers including Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and JetBlue Airways (NASDAQ: JBLU) all down about 5% in midday trading Tuesday. See the 10 stocks *Stock Advisor returns as of April 27, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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Airline stocks are getting caught up in the sell-off, with a basket of carriers including Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and JetBlue Airways (NASDAQ: JBLU) all down about 5% in midday trading Tuesday. Spirit CEO Ted Christie said it was "unlikely" the airline's shareholders would reject Spirit's proposed merger with Frontier Group Holdings, a necessary step in JetBlue's plan to snatch Spirit for itself. See the 10 stocks *Stock Advisor returns as of April 27, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines.
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Airline stocks are getting caught up in the sell-off, with a basket of carriers including Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and JetBlue Airways (NASDAQ: JBLU) all down about 5% in midday trading Tuesday. Spirit CEO Ted Christie said it was "unlikely" the airline's shareholders would reject Spirit's proposed merger with Frontier Group Holdings, a necessary step in JetBlue's plan to snatch Spirit for itself. Now what It's hard to say anything definitive on inflation or how airline demand will hold up in the second half of the year.
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3525.0
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2022-05-24 00:00:00 UTC
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Can Southwest Airlines Stock Lead A Bull Market Rally?
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AAL
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https://www.nasdaq.com/articles/can-southwest-airlines-stock-lead-a-bull-market-rally
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nan
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nan
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The shares of Southwest Airlines (NYSE: LUV) observed a just 5% decline since April, much lower than the monumental 15% contraction in broader markets. Rising energy costs coupled with skyrocketing inflation have spooked investors in recent times, but strong air travel demand and Southwest’s high operating margins have been key positives for the stock. The company also has a hedge position on almost 60% of the targeted fuel consumption for 2022. While the geopolitical uncertainty due to the Russia-Ukraine war is jeopardizing global economic growth and triggering measures such as new energy security alliances, passenger numbers at TSA checkpoints are a positive indicator for the airline industry. Our interactive dashboard on Southwest Airlines valuation highlights the historical trends in revenues, earnings, valuation multiple, and forecast for FY2022.
How did Southwest perform in 2021 and Q1 2022?
In 2021, Southwest Airlines reported $15.7 billion of total revenues and $2 billion of operating cash assisted by PSP-2 and PSP-3 (payroll support program) proceeds. Rising air travel demand during the latter part of the year pushed the company’s operating metrics to pre-pandemic levels. In H1 2021, the company’s ASMs (available seat miles), occupancy rate, and yield (cents) were 56k, 75.3%, and 12.41, respectively. For the full-year, ASMs (available seat miles), occupancy rate, and yield (cents) reached 132k, 78.5%, and 13.58, respectively. While the demand factors improved during fall and winter, inflationary pressures from the Russia-Ukraine war and supply chain hurdles created macroeconomic headwinds for the airline industry.
In Q1 2022, the company reported $4.7 billion in revenues – just 8.8% lower than Q1 2019. Rising benchmark prices, staffing issues, and the resurgence of coronavirus infections augmented operational challenges. Notably, CASM-Ex (cost per available seat miles excluding fuel expense) surged by 18% when compared to Q1 2019, largely due to inflation in labor rates and incentive pay offered to operations employees. Thus, Southwest booked a net loss of $278 million for the quarter.
Inflation moving in sync with benchmark oil prices
The consumer price index for urban consumers (CPI-U) observed an 8.3% (y-o-y) jump in April 2022, primarily from rising energy costs, which are having ripple effects across the economy. Inflation in key items such as food, energy, other commodities, shelter, medical services, and airline fares was 9.4%, 30.3%, 9.7%, 5.1%, 3.5%, and 33.3%, respectively. Given the 40% increase in benchmark oil prices in the past year, increasing airfares is the only option for airlines to bolster their bottom line. Interestingly, the Brent benchmark is likely to trend downward from $103 in 2022 to $97 in 2023 according to EIA. Similarly, the World Bank expects Brent crude to observe a decline from $100 in 2022 to $92 in 2023 and $80 in 2024 – raising hopes of a return to normalcy as geopolitical tensions ease in various parts of the world. (related: Pick This Stock Over American Airlines As The Dip Ends)
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 May 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
LUV Return -6% 2% -12%
S&P 500 Return -5% -18% 75%
Trefis Multi-Strategy Portfolio -5% -21% 215%
[1] Month-to-date and year-to-date as of 5/20/2022
[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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Rising energy costs coupled with skyrocketing inflation have spooked investors in recent times, but strong air travel demand and Southwest’s high operating margins have been key positives for the stock. While the geopolitical uncertainty due to the Russia-Ukraine war is jeopardizing global economic growth and triggering measures such as new energy security alliances, passenger numbers at TSA checkpoints are a positive indicator for the airline industry. Notably, CASM-Ex (cost per available seat miles excluding fuel expense) surged by 18% when compared to Q1 2019, largely due to inflation in labor rates and incentive pay offered to operations employees.
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In 2021, Southwest Airlines reported $15.7 billion of total revenues and $2 billion of operating cash assisted by PSP-2 and PSP-3 (payroll support program) proceeds. In H1 2021, the company’s ASMs (available seat miles), occupancy rate, and yield (cents) were 56k, 75.3%, and 12.41, respectively. For the full-year, ASMs (available seat miles), occupancy rate, and yield (cents) reached 132k, 78.5%, and 13.58, respectively.
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Rising energy costs coupled with skyrocketing inflation have spooked investors in recent times, but strong air travel demand and Southwest’s high operating margins have been key positives for the stock. Inflation moving in sync with benchmark oil prices The consumer price index for urban consumers (CPI-U) observed an 8.3% (y-o-y) jump in April 2022, primarily from rising energy costs, which are having ripple effects across the economy. Total [2] LUV Return -6% 2% -12% S&P 500 Return -5% -18% 75% Trefis Multi-Strategy Portfolio -5% -21% 215% [1] Month-to-date and year-to-date as of 5/20/2022 [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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Rising energy costs coupled with skyrocketing inflation have spooked investors in recent times, but strong air travel demand and Southwest’s high operating margins have been key positives for the stock. In Q1 2022, the company reported $4.7 billion in revenues – just 8.8% lower than Q1 2019. Inflation moving in sync with benchmark oil prices The consumer price index for urban consumers (CPI-U) observed an 8.3% (y-o-y) jump in April 2022, primarily from rising energy costs, which are having ripple effects across the economy.
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3526.0
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2022-05-20 00:00:00 UTC
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McDonald's Is Exiting Russia. Will Other Restaurants Follow?
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AAL
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https://www.nasdaq.com/articles/mcdonalds-is-exiting-russia.-will-other-restaurants-follow
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nan
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nan
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In this podcast, Motley Fool analyst Jason Moser discusses:
JetBlue Airways (NASDAQ: JBLU) going hostile in its pursuit of Spirit Airlines (NYSE: SAVE).
McDonald's (NYSE: MCD) leaving a major market for the first time in its history.
The prospect of other major restaurant chains following McDonald's and closing up shop in Russia.
Jason and Motley Fool contributor Matt Frankel take a closer look at how Twilio (NYSE: TWLO) makes money and at one of the company's competitive advantages.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on May 16, 2022.
Chris Hill: [MUSIC] For the first time in its history, McDonald's is leaving a major market. Motley Fool Money starts now. I am Chris Hill and I am joined by Motley Fool senior analyst Jason Moser. Thanks for being here.
Jason Moser: Hey, happy Monday.
Chris Hill: Happy Monday indeed. We're going to get to McDonald's in a second but I want to start very quickly with the airline industry. JetBlue is ramping up its all-cash bid for Spirit Airlines before it was a friendly takeover and now it is officially hostile. [laughs] Which it shouldn't make me happy but it does. Spirit officially rejected the bid from JetBlue earlier this month they said, "We're going ahead with our plans to merge with Frontier, a fellow low-cost airline." I don't have any investing interest into I don't own shares of any of these companies but I look at this, Jason, and beyond just the popcorn entertainment value of a hostile takeover. Am I wrong to think that JetBlue if they go ahead and they make this happen with Spirit that it makes them more competitive with the larger airlines, the Americans that Deltas of the world? Because if that's the case, I feel like that is potentially a win for people who want to fly from one place to the other and not pay a lot of money.
Jason Moser: I feel like you're definitely on the right path. I too, I have no interest in this. No dog in this race so to speak. It's an interesting situation. There is a lot of drama behind us because when you look at the Spirit and Frontier deal is financially it's inferior to the offer that JetBlue made. Jetblue actually made financially a better offer than the Spirit-Frontier deal would be. I certainly can understand why they feel the need to go hostile. I guess they're going to submit this tender offer and they can win over the favor of shareholders there. In theory, yeah you should see this merger in either which way this merger works out, whether it's Spirit and Frontier or JetBlue, it would ultimately I think result in what the fifth-largest carrier in the country. In theory, yes that would mean they should compete a little bit more with the bigs and that make sense.
Now that the reason why this seems to not be happening, the reason why there seems to be so much drama, Spirit they ultimately said no thanks to JetBlue. They have some unserved with JetBlue and the regulatory environment they are feeling like that ultimately combining with JetBlue might actually result in higher prices. Because they feel they're going to be moving away from that low-cost provider into that other echelon of provider like the bigs. You look at JetBlue has a partnership with American, I believe it is some of a relationship with American in some capacity. Maybe that was part of the concern there is the feeling that ultimately this would eliminate competition and ultimately offerings on that low-cost provider side. That's where all the drama comes from and then there's a whole lot of drama with this. It remains to be seen how it ultimately all shakes out. But it doesn't seem like the story is going to end anytime soon and it really does feel like JetBlue knows what it wants, it's trying to figure out exactly how to get it. If the tender offer is something that works, then we'll see how the regulatory side plays out because that's not a hurdle altogether.
Chris Hill: Let's move on to McDonald's. Earlier this year, McDonald's paused its operations in Russia due to its invasion of Ukraine. Today, the company announced it will sell it's business and exit Russia entirely. They've got more than 800 restaurants. Most of those are company-owned. We'll get to the ripple effects in a second but if you're a shareholder of McDonald's, how should you feel about this? Because they're going to take a charge on this somewhere in the neighborhood of probably north of a billion dollars. You don't like to see that. On the flip side, it does provide some certainty in an area that was up in the air.
Jason Moser: To me, this feels like a pretty easy decision. They can make this decision and it appears, it looks like they can take a stance on something that really pretty much the whole world was on board with. I mean, we all feel what's going on over there in Ukraine right now is unacceptable. They don't have to really worry about repercussions there in taking sides, so to speak. Because really it seems like everybody for the most part around the world is on the same side on this one. But also, I mean, you look at it also it's frankly it's not the greatest line of business for them anyway. You referred to the company-owned dynamic there and I think that's important to note because when you look at McDonald's as a business franchise restaurants represent 93 percent of McDonald's restaurants around the world. But if you look at Russia, franchises operate only 15 percent of the Russian locations. The company owns the rest and that matters because ultimately when you look at McDonald's financials, you see how this all breaks down. In 2021, they did $9.8 billion in company-owned restaurant sales. Not systemwide sales. I'm talking about the revenue. The operating expenses involved there were $8 billion. Now if you look at revenue from franchise restaurants, that was closer to $13 billion, and operating expenses there which are primarily just occupancy expenses. Those were $2.3 billion. It feels like they were looking at this from two different angles thing you know what? Maybe they weren't all that thrilled with this line of the business anyway. It's a lower-margin business. Maybe the juice isn't really worth the squeeze anymore given the geopolitical pival that's going on over the past several months. You put all that together, I mean, I look at this and it seems like it's a pretty easy decision for management to make. It is worth noting they're retaining their trademarks there in Russia. I would look at this and say, you know what, they're making this decision now it's probably not a threat or anything like that, they are saying, look we're going to go ahead and do this.
Jason Moser: Now, if the geopolitical environment years from now looks considerably different, they feel like the risk has diminished somewhat than they think what always have that option to consider opening back up there if they were wanted. But it feels like a pretty easy decision for them to make I definitely would not consider this a thesis-changing event by any stretch. When you consider the global nature of McDonald's, in 2021, they did 112 billion dollars in systemwide sales. When you look at Ukraine and Russia, those markets represent in total about two percent of those systemwide sales. Nothing really that's going to hit them in the pocketbook, so to speak. Yes, they'll take a charge. Yes, they'll present adjusted earnings. It ultimately does look like their guidance, for the most part remains the same and they will continue opening stores around the world, just not in Russia.
Chris Hill: Does the spotlight now shifts to businesses like Burger King, Domino's, Starbucks, and others? It seems like a natural question for shareholders and Wall Street Analysts as well. But here's the worldwide leader. They're leaving Russia. What are you going to do?
Jason Moser: Yeah. It's a fair question and that's really anyone's guess as to how companies will ultimately deal with this. You look at Starbucks, for example, I believe they have halted operations at least in Russia for the time being. I don't know that I've seen anything where they said they were actually shutting down. But again, it's difficult in certain instances for companies to take stances. If it's a debatable issue, it becomes a much riskier proposition. This really isn't that risky of a proposition because it's not really a debatable issue. I think most of the world is on board with the notion that this really is unacceptable and Russia shouldn't be doing what it's doing. There isn't that risk and I think that probably gives these leadership teams and all of these different food and beverage operators, it gives them the opportunity to at least examine those lines of business more closely to see really, if, like I said earlier, is the juice really worth the squeeze?
Because if it's not, you know, then they can go ahead and make that business decision while also getting a chance to really stand for the values that they espouse. I think this really falls in line when you look at McDonald's, their core values are serve, inclusion, integrity, community, family. It feels like this one really falls squarely on the integrity value, which for them is ultimately do the right thing. I feel like they feel like they're doing the right thing. I think most people would side with that. For businesses, considering this, I think they're taking a very close look at how McDonald's deals with this. They're taking a very close look at how the investor community and the rest of the world responds and that will probably help dictate the course of action for some of these others in the next several weeks to months, assuming this continues to drag on.
Chris Hill: Thanks for being here. [MUSIC]
Jason Moser: Thank you.
Chris Hill: [MUSIC] Actually, Jason Moser is sticking around because he and Matt Frankel are taking a closer look at Twilio. Now, you may not know Twilio, but if you've ever ordered an Uber, you've experienced its technology. Twilio helps send the notification saying, your ride is here. Shares are down 60 percent year-to-date and the guys are focusing in on how Twilio makes money, the risks for investors moving forward. One of Twilio's underappreciated competitive advantages. [MUSIC]
Jason Moser: We love to dig into companies here. We love to learn a little bit more about what they do and why they pique our interest in this week, we're digging a little bit more into Twilio. This is a company I'm sure many listeners are familiar with in many likely own. I know I own it. Matt, I feel pretty darn good about that even in this market sell-off we're witnessing. Let's take a few minutes to dig into Twilio. Let's learn a little bit more about the business, what it does, and why it might present an opportunity for investors. Just very high level though, to get starting to your what does Twilio do?
Matt Frankel: Yes. This is a stock that's been on my watchlist for a long time now. I don't own it yet, but especially at the current prices, I'm pretty sure I'm going to be a Twilio shareholder before too long. They are a software-as-a-service company. Their mission is to bring the way companies communicate with their customers into the 21st century.
Jason Moser: Yeah.
Matt Frankel: Just to give you a few examples, most people listening have been a user of Twilio's software without even knowing it.
Jason Moser: Right.
Matt Frankel: If you've booked an Uber and you get a little push notification that your driver is arriving, that's something that Twilio has provided them. If you make a restaurant reservation through Yelp, that's something that Twilio does. If you get an automated message from Airbnb confirming your booking, that's a Twilio product. They built out these communications tools designed to help businesses interact with their customers better because quite honestly, people expect more from the companies that they do business with than they ever have before. Nobody wants to pick up the phone and call it Healthline these days. Nobody wants to have to go to a website to see if their pizza is on the way. Nobody wants to have. They want a quick notification on their smartphone. They want, they want something that's automated fast, tells the story, and that they don't have to go out of their way to do and Twilio helps companies fulfill this essential need of their business.
Jason Moser: Yeah. I'm glad you made, I think, a great point there in that a lot of people, most of us, probably all of us, to an extent, are probably using Twilio technology, are benefiting from Twilio technology and never even realizing that's the case. To me those oftentimes are really some of the most compelling investments because we see the convenience at our fingertips yet we don't really understand the infrastructure and the work that's going on behind the scenes. That really is what Twilio is doing. They do this through these APIs these application program interfaces that just enable them to ultimately build out the communications infrastructure for this digital economy that we're really evolving into.
To me, it's always struck me as a necessity at this point. I mean, businesses need to be able to incorporate this technology into their models or they'll fall by the wayside. Then you have the opportunity or the option. You can either try to build that functionality and capability yourself or you can go to expert providers. It feels like Twilio is certainly building up that reputation as an expert provider. We'll talk a little bit more about some of the customers in its universe there. We always like to look at how these businesses make money. I think it's very important to understand how a business makes its money because that can really paint a picture as to what the future may hold. When we look at Twilio, obviously, a lot of customers, a lot of big customers, but how does Twilio make its money?
Matt Frankel: It's a subscription model and the companies that use it pay Twilio for integrating their product into their platform. It's a recurring revenue model, which is like most Software-as-a-Service companies run. Like most Software-as-a-service companies, it's a high-margin revenue stream.
Jason Moser: Yeah.
Matt Frankel: Twilio's gross margin is well over 50 percent and it should get even better as it scales. It's a fee modeling and its fee income that grows with the customers. As customers are growing and are using Twilio more to communicate with our customers, they're actually spending more on Twilio's products and services over time. The average customer that's been with Twilio for a year is spending 30 percent more than they were a year ago on Twilio.
Jason Moser: Yeah.
Matt Frankel: It's a nice not only recurring revenue, but it's a very expandable relationship.
Jason Moser: Well, I think you make an astute observation there and you've got to a dual threat there. There's a subscription side of the business, but there's also that usage-based model. As its relationship grows with its consumers, that usage-based model really comes into play and I think actually the majority of its revenue does come from the usage-based side which to me is encouraging given direction we're headed in this digital economy and communications becoming paramount for so many of these businesses and so the more they're using Twilio's products and services, while the more they're benefiting, and of course the more Twilio is benefiting as well. When we talk about some of these clients, some of these customers that Twilio works with, there's a litany of them. They're over 250,000, I think over 260,000 active customer accounts today now. But some of these clients are massive, Airbnb, Stripes, Salesforce, just to name a few. When companies of that stature start incorporating technology like Twilio's into their models, into their infrastructure, it feels to me like as time goes on, there's a stickiness that develops there where it just becomes less and less likely the companies are going to want to switch over to a different provider, particularly if the services that they're getting from Twilio are delivering and it feels like at this point those services are delivering, so maybe as time goes on that we start to see some switching costs developed there.
Matt Frankel: You made a good point. The counterpoint to that is it makes Twilio's revenue top-heavy. It's like the problem that the S&P index funds rely on Amazon, Microsoft, Apple for a lot of their market cap. Twilio relies on its big customers for an outsized portion of its revenue. Doordash is another one that uses Twilio for customer notifications. The top 10 customers in Twilio's out of those 256,000 account for 12 percent of the revenue. That's a pretty concentrated top 10 out of 256,000. Hopefully some of those other 255,990 [laughs] will become some of these big customers one day. For now, it's a top-heavy business model that creates a little bit of risk.
Jason Moser: Certainly, top-heavy usage-based, it's great when times are good, but it's also worth remembering when times do get tough, if that usage goes down, that definitely it's going to impact Twilio's financials. That's going to impact business performance. I think one of the nice things about that usage-based approach, there is a very low cost of entry for new customers. New customers can try Twilio out without really having to invest much of anything to give it a shot. There is a little time and a lot of work and incorporating it, but ultimately it's a pretty easy entry for new customers. They don't have to commit a lot upfront. Then if they discover that the relationship is working, that they're gaining value from that relationship, then they expand that relationship. They add on services and functionalities and that certainly can grow the relationship there. How do we feel about the leadership here? This is a founder-led business in Twilio. Any things stand out to you in regard to leadership here?
Matt Frankel: Their founders are pretty impressive guy, Jeff Lawson. If you just look at a little bit of his resume, he was a founding executive of StubHub. He was one of the original project managers when Amazon launched AWS. Really high percentage of success in this is high-growth start-up businesses. I just used StubHub yesterday. It's the biggest ticket platform in the world, outside the Ticketmasters. AWS speaks for itself when he was the original product manager on it. He is a highly invested CEO, he owns about 4 percent of the company and his employees like him. One thing that really stands out, people really underestimate. I always get a lot of questions about why do I always mention Glassdoor reviews, when I do, the employee satisfaction reviews.
Especially in the highly competitive tech industry, that's such an underappreciated competitive advantage because, being able to attract and retain top talent is everything. It's not just about pay. Today's tech workers will not put up with a crappy work environment [laughs] in exchange for a great salary. They just won't. Everyone's offering a great salary in tech. There is a 93 percent approval rating among his employees. Many reviews specifically call out the great corporate culture and great benefits and things like that. That's a really overlook competitive advantage that Twilio has going for it. Great leadership team, great board of directors, former Amazon and Oracle executives are on there. Some ex-politicians are on there, really interesting group of people to make decisions behind the scenes.
Jason Moser: Ultimately, it looks like a business with a lot of potential, clearly, the stock has just taken a beating here over the last several weeks as has everything. To me, I don't know, that's not a signal that this is a bad or failing business. Everything is really taking a beating, of course. But when you look at the market opportunity for business like Twilio today, management sees as total addressable market reaching $87 billion by 2023 just next year and business that's chopped up here, I think just a little over $3 billion in revenue over the last 12 months. It's also a team has seized growing organic revenue at 30 percent or better annually here over the next three years. You've got a business with a lot going forward, a tremendous market opportunity, feels like leadership that is committed to building products and services that customers want. I think you know where I stand on this one as an owner of this year has already Matt, it sounds I feel like into the answer, it sounds like you feel pretty good about this one too. Your bottom-line takeaway on this, when you feel bullish, you feel bearish on Twilio, you're still on the fence.
Matt Frankel: All the things you just said, plus the fact that the stock is down about 75 percent from the highs, doesn't hurt [laughs] No, it's toward the top of my watch list. I will probably become a Twilio shareholder once I have some free capital to do so in the next few weeks. I'm a fan of the business and I think we're still in the early stages of the digital transformation and Twilio has a lot to gain from it. [MUSIC]
Chris Hill: As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill, thanks for listening. We'll see you tomorrow. [MUSIC]
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Chris Hill has positions in Amazon, Apple, Microsoft, Starbucks, and Twilio. Jason Moser has positions in Amazon, Apple, Starbucks, and Twilio. Matthew Frankel, CFP® has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, Domino's Pizza, DoorDash, Inc., Microsoft, Spirit Airlines, Starbucks, and Twilio. The Motley Fool recommends JetBlue Airways and Restaurant Brands International Inc. and recommends the following options: long March 2023 $120 calls on Apple, short July 2022 $85 calls on Starbucks, and short March 2023 $130 calls on Apple. 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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In this podcast, Motley Fool analyst Jason Moser discusses: JetBlue Airways (NASDAQ: JBLU) going hostile in its pursuit of Spirit Airlines (NYSE: SAVE). Jason and Motley Fool contributor Matt Frankel take a closer look at how Twilio (NYSE: TWLO) makes money and at one of the company's competitive advantages. They're taking a very close look at how the investor community and the rest of the world responds and that will probably help dictate the course of action for some of these others in the next several weeks to months, assuming this continues to drag on.
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In this podcast, Motley Fool analyst Jason Moser discusses: JetBlue Airways (NASDAQ: JBLU) going hostile in its pursuit of Spirit Airlines (NYSE: SAVE). The Motley Fool has positions in and recommends Amazon, Apple, Domino's Pizza, DoorDash, Inc., Microsoft, Spirit Airlines, Starbucks, and Twilio. The Motley Fool recommends JetBlue Airways and Restaurant Brands International Inc. and recommends the following options: long March 2023 $120 calls on Apple, short July 2022 $85 calls on Starbucks, and short March 2023 $130 calls on Apple.
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When we look at Twilio, obviously, a lot of customers, a lot of big customers, but how does Twilio make its money? As its relationship grows with its consumers, that usage-based model really comes into play and I think actually the majority of its revenue does come from the usage-based side which to me is encouraging given direction we're headed in this digital economy and communications becoming paramount for so many of these businesses and so the more they're using Twilio's products and services, while the more they're benefiting, and of course the more Twilio is benefiting as well. When companies of that stature start incorporating technology like Twilio's into their models, into their infrastructure, it feels to me like as time goes on, there's a stickiness that develops there where it just becomes less and less likely the companies are going to want to switch over to a different provider, particularly if the services that they're getting from Twilio are delivering and it feels like at this point those services are delivering, so maybe as time goes on that we start to see some switching costs developed there.
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That really is what Twilio is doing. We always like to look at how these businesses make money. When we look at Twilio, obviously, a lot of customers, a lot of big customers, but how does Twilio make its money?
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3527.0
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2022-05-19 00:00:00 UTC
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American Airlines gets favorable antitrust verdict, and $1 in damages
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AAL
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https://www.nasdaq.com/articles/american-airlines-gets-favorable-antitrust-verdict-and-%241-in-damages
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nan
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By Jonathan Stempel and Mike Scarcella
NEW YORK, May 19 (Reuters) - A federal jury on Thursday ruled in favor of American Airlines Group Inc AAL.O in its long-running lawsuit accusing flight booking service Sabre Corp SABR.O of charging excessive fees and suppressing competition, but awarded the carrier just $1 in damages.
Jurors reached a verdict on their fifth day of deliberations, following a three-week trial in federal court in Manhattan.
Shares of Sabre rose more than 3% in after-hours trading.
The antitrust case had originally been brought by US Airways in 2011, two years before it merged with Fort Worth, Texas-based American.
Sabre, based in Southlake, Texas, operates an electronic network used by travel agents to search for and book flights listed by airlines.
US Airways had alleged that Sabre impeded travel agents and others from using less expense alternatives for booking seats, and imposed an unduly restrictive distribution agreement.
Jurors found that Sabre harmed the carrier by willfully maintaining monopoly power, but found a lack of proof that Sabre unreasonably restrained trade through the challenged contract.
"We are pleased and gratified with this landmark verdict," American said in a statement. "We expect this decision to discourage further misconduct by Sabre and bring needed competition to airline distribution."
Sabre said it was disappointed with the verdict on the monopolization claim, but that the $1 award was "commensurate with the evidence presented." Sabre said it was pleased with the verdict on the distribution agreement.
American had won about $15.3 million from Sabre in a 2016 trial, but an appeals court overturned the award in 2019.
The case is US Airways Inc v. Sabre Holdings Corp, U.S. District Court, Southern District of New York, 11-02725.
(Reporting by Jonathan Stempel and Mike Scarcella in New York; Editing by Leslie Adler)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Jonathan Stempel and Mike Scarcella NEW YORK, May 19 (Reuters) - A federal jury on Thursday ruled in favor of American Airlines Group Inc AAL.O in its long-running lawsuit accusing flight booking service Sabre Corp SABR.O of charging excessive fees and suppressing competition, but awarded the carrier just $1 in damages. Sabre, based in Southlake, Texas, operates an electronic network used by travel agents to search for and book flights listed by airlines. US Airways had alleged that Sabre impeded travel agents and others from using less expense alternatives for booking seats, and imposed an unduly restrictive distribution agreement.
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By Jonathan Stempel and Mike Scarcella NEW YORK, May 19 (Reuters) - A federal jury on Thursday ruled in favor of American Airlines Group Inc AAL.O in its long-running lawsuit accusing flight booking service Sabre Corp SABR.O of charging excessive fees and suppressing competition, but awarded the carrier just $1 in damages. The case is US Airways Inc v. Sabre Holdings Corp, U.S. District Court, Southern District of New York, 11-02725. (Reporting by Jonathan Stempel and Mike Scarcella in New York; Editing by Leslie Adler) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Jonathan Stempel and Mike Scarcella NEW YORK, May 19 (Reuters) - A federal jury on Thursday ruled in favor of American Airlines Group Inc AAL.O in its long-running lawsuit accusing flight booking service Sabre Corp SABR.O of charging excessive fees and suppressing competition, but awarded the carrier just $1 in damages. US Airways had alleged that Sabre impeded travel agents and others from using less expense alternatives for booking seats, and imposed an unduly restrictive distribution agreement. Jurors found that Sabre harmed the carrier by willfully maintaining monopoly power, but found a lack of proof that Sabre unreasonably restrained trade through the challenged contract.
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By Jonathan Stempel and Mike Scarcella NEW YORK, May 19 (Reuters) - A federal jury on Thursday ruled in favor of American Airlines Group Inc AAL.O in its long-running lawsuit accusing flight booking service Sabre Corp SABR.O of charging excessive fees and suppressing competition, but awarded the carrier just $1 in damages. US Airways had alleged that Sabre impeded travel agents and others from using less expense alternatives for booking seats, and imposed an unduly restrictive distribution agreement. Sabre said it was pleased with the verdict on the distribution agreement.
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3528.0
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2022-05-18 00:00:00 UTC
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Why Boeing and Airline Stocks Are Falling Today
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AAL
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https://www.nasdaq.com/articles/why-boeing-and-airline-stocks-are-falling-today
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nan
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What happened
On Tuesday, airline stocks got a lift after United Airlines Holdings (NASDAQ: UAL) said that so far, at least, demand is holding up well in the face of rising inflation. On Wednesday, the focus shifted to fears over how long that can last. Shares of United, American Airlines Holdings (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) all fell about 5%, and planemaker Boeing (NYSE: BA) also traded down by a similar amount.
So what
As I said yesterday, these are volatile times to be investing in airline stocks. The sector took it on the chin during the early days of the pandemic, with airlines scrambling to remain liquid as demand fell to near-zero. Demand has recovered nicely so far in 2022, but now new concerns including higher fuel and labor costs and the impact of soaring inflation are weighing heavily on investors.
Image source: Getty Images.
United remains upbeat, on Tuesday raising its outlook for second-quarter passenger revenue. As expected, costs are going up, too, but United held its margin guidance steady, implying that strong demand is creating enough pricing power to offset the higher expenses.
The question is how long that can last. On Wednesday, the markets sold off following weaker-than-expected earnings from Target. The results suggest that inflation is beginning to have an impact on consumer behavior. It seems likely that if penny-pinching is in order consumers are more likely to rethink a big purchase like a vacation, which could mean there is a limit to how much airfare prices can go up in the months to come.
A potential slowdown comes at a difficult time for Boeing as well. The company stumbled well before the pandemic: Its 737 MAX was grounded for 18 months after a pair of fatal accidents. Post-crash scrutiny has led to regulators taking a fresh look at other Boeing planes as well, leading to delays in its forthcoming 777 widebody update and a suspension of deliveries of its 787 Dreamliner.
Boeing's debt ballooned during the pandemic, when airlines stopped buying new planes to preserve precious cash, and the company's balance sheet recovery has been hindered by a lack of deliveries due to quality concerns. The prospect of consumers tightening their belts would make it less likely that airlines will rush to refresh their fleets in the quarters to come, perhaps further delaying a Boeing recovery.
Now what
The long-term bull case for Boeing and the airlines is similar, and it has a lot of credibility. Global demand for air travel is expected to grow by more than 2% annually over the next two decades. That's going to create a lot of demand for airlines, and the need for a lot of new airplanes.
The problem is in the timing. While those long-term catalysts remain intact, there is a lot of uncertainty on the near-term horizon. Airlines have booked fares through much of the summer, but there is no telling what might happen to demand come Labor Day if inflation remains elevated. Investors also need to factor in what has so far been a sluggish business fare and international recovery, which could be further dented should a new wave of COVID-19 cases arrive in the fall, as some predict.
Add in the damage done by inflation on the cost side, particularly when it comes to labor and fuel costs, and both the airlines and their most important vendor might be stuck in a circling pattern for a lot longer than investors anticipate.
For those interested in buying in and waiting out the headwinds, I'm partial to buying aircraft financing company AerCap Holdings over any individual airline or aircraft manufacturer. AerCap has seen a sell-off because it has planes operating in Russia that might be unrecoverable due to the war, but the company is well capitalized and remains a way to gain exposure to aviation growth trends without betting on an individual vendor.
For those who want to ride the airlines instead, buckle up and be prepared for significant turbulence up ahead.
10 stocks we like better than Boeing
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*Stock Advisor returns as of April 7, 2022
Lou Whiteman has positions in AerCap Holdings and Spirit Airlines. The Motley Fool has positions in and recommends Spirit Airlines. The Motley Fool recommends AerCap Holdings. 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, American Airlines Holdings (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) all fell about 5%, and planemaker Boeing (NYSE: BA) also traded down by a similar amount. As expected, costs are going up, too, but United held its margin guidance steady, implying that strong demand is creating enough pricing power to offset the higher expenses. Boeing's debt ballooned during the pandemic, when airlines stopped buying new planes to preserve precious cash, and the company's balance sheet recovery has been hindered by a lack of deliveries due to quality concerns.
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Shares of United, American Airlines Holdings (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) all fell about 5%, and planemaker Boeing (NYSE: BA) also traded down by a similar amount. For those interested in buying in and waiting out the headwinds, I'm partial to buying aircraft financing company AerCap Holdings over any individual airline or aircraft manufacturer. The Motley Fool recommends AerCap Holdings.
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Shares of United, American Airlines Holdings (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) all fell about 5%, and planemaker Boeing (NYSE: BA) also traded down by a similar amount. What happened On Tuesday, airline stocks got a lift after United Airlines Holdings (NASDAQ: UAL) said that so far, at least, demand is holding up well in the face of rising inflation. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Lou Whiteman has positions in AerCap Holdings and Spirit Airlines.
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Shares of United, American Airlines Holdings (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) all fell about 5%, and planemaker Boeing (NYSE: BA) also traded down by a similar amount. Demand has recovered nicely so far in 2022, but now new concerns including higher fuel and labor costs and the impact of soaring inflation are weighing heavily on investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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3529.0
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2022-05-17 00:00:00 UTC
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US STOCKS-Wall Street rallies, led by Tesla and other growth stocks
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rallies-led-by-tesla-and-other-growth-stocks
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nan
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nan
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By Amruta Khandekar and Noel Randewich
May 17 (Reuters) - Wall Street rallied on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth.
Ten of the 11 major S&P sector indexes advanced, with financials .SPSY, materials .SPLRCM and technology .SPLRCT each up over 2%.
Investors were cheered by data showing U.S. retail sales increased 0.9% in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants.
Recently punished shares of Microsoft Corp MSFT.O, Apple Inc AAPL.O, Tesla Inc TSLA.O and Amazon AMZN.O gained between 1.3% and 4.4%, lifting the S&P 500 and the Nasdaq.
Tuesday's broad rally followed weeks of selling on the U.S. stock market that last week saw the S&P 500 sink to its lowest level since March 2021.
"The largest pockets of stocks that investors tend to buy have been essentially beaten up. They're either in correction or bear market territory," said Sylvia Jablonski, chief investment officer of Defiance ETF. "I think investors are looking at these opportunities to buy on the dip, and I suspect that today is a good day to do that."
The S&P 500 Banks index .SPXBK jumped 3.1%, with Citigroup C.N climbing 7.9% after Warren Buffett's Berkshire Hathaway BRKa.N disclosed a nearly $3 billion investment in the U.S. lender.
Another set of economic data showed industrial production accelerated 1.1% last month, higher than estimates of 0.5%, and faster than a 0.9% advance in March.
"This is consistent with continued economic growth in the second quarter and not a recession underway," said Bill Adams, chief economist for Comerica Bank in Dallas.
The U.S. Federal Reserve will "keep pushing" to tighten U.S. monetary policy until it is clear inflation is declining, Fed Chair Jerome Powell said at an event on Tuesday.
Traders are pricing in an 85% chance of a 50-basis point rate hike in June. FEDWATCH
In afternoon trading, the S&P 500 was up 1.27% at 4,059.02 points.
The Nasdaq gained 1.76% to 11,868.20 points, while Dow Jones Industrial Average was up 0.74% at 32,461.93 points.
Walmart Inc WMT.N tumbled about 11% after the retail giant cut its annual profit forecast, signaling a bigger hit to margins.
Retailers Costco COST.O, Target TGT.N and Dollar Tree DLTR.O fell between 0.9% and 2.1%.
United Airlines Holdings Inc UAL.O gained 7.3% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N.
A positive first-quarter earnings season has been overshadowed by worries about the conflict in Ukraine, soaring inflation, COVID-19 lockdowns in China and aggressive policy tightening by central banks.
The S&P 500 is down about 15% so far in 2022, and the Nasdaq is off 24%, hit by tumbling growth stocks.
U.S.-listed Chinese stocks jumped on hopes that China will ease its crackdown on the technology sector.
Advancing issues outnumbered declining ones on the NYSE by a 3.58-to-1 ratio; on Nasdaq, a 3.15-to-1 ratio favored advancers.
The S&P 500 posted one new 52-week high and 30 new lows; the Nasdaq Composite recorded 21 new highs and 108 new lows.
Strong U.S. retail sales, manufacturing output boost economic outlook
GRAPHIC-S&P 500's busiest tradeshttps://tmsnrt.rs/3lmLfaJ
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru, and Noel Randewich in Oakland, Calif.; Editing by Shounak Dasgupta and Lisa Shumaker)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines Holdings Inc UAL.O gained 7.3% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. Investors were cheered by data showing U.S. retail sales increased 0.9% in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants. The U.S. Federal Reserve will "keep pushing" to tighten U.S. monetary policy until it is clear inflation is declining, Fed Chair Jerome Powell said at an event on Tuesday.
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United Airlines Holdings Inc UAL.O gained 7.3% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Noel Randewich May 17 (Reuters) - Wall Street rallied on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth. Another set of economic data showed industrial production accelerated 1.1% last month, higher than estimates of 0.5%, and faster than a 0.9% advance in March.
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United Airlines Holdings Inc UAL.O gained 7.3% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Noel Randewich May 17 (Reuters) - Wall Street rallied on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth. The Nasdaq gained 1.76% to 11,868.20 points, while Dow Jones Industrial Average was up 0.74% at 32,461.93 points.
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United Airlines Holdings Inc UAL.O gained 7.3% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Noel Randewich May 17 (Reuters) - Wall Street rallied on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth. Ten of the 11 major S&P sector indexes advanced, with financials .SPSY, materials .SPLRCM and technology .SPLRCT each up over 2%.
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3530.0
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2022-05-17 00:00:00 UTC
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Wall Street ends sharply higher, fueled by Apple
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AAL
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https://www.nasdaq.com/articles/wall-street-ends-sharply-higher-fueled-by-apple
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nan
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nan
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By Amruta Khandekar and Noel Randewich
May 17 (Reuters) - Wall Street finished sharply higher on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth.
Ten of the 11 major S&P sector indexes advanced, with financials .SPSY, materials .SPLRCM and technology .SPLRCT among the top performers.
Investors were cheered by data showing U.S. retail sales increased 0.9% in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants.
Recently punished shares of Microsoft Corp MSFT.O, Apple Inc AAPL.O, Tesla Inc TSLA.O and Amazon AMZN.O drove the S&P 500 and the Nasdaq higher.
Tuesday's broad rally followed weeks of selling on the U.S. stock market that last week saw the S&P 500 sink to its lowest level since March 2021.
"The largest pockets of stocks that investors tend to buy have been essentially beaten up. They're either in correction or bear market territory," said Sylvia Jablonski, chief investment officer of Defiance ETF. "I think investors are looking at these opportunities to buy on the dip, and I suspect that today is a good day to do that."
The S&P 500 Banks index .SPXBK jumped, with Citigroup C.N climbing after Warren Buffett's Berkshire Hathaway BRKa.N disclosed a nearly $3 billion investment in the U.S. lender.
Another set of economic data showed industrial production accelerated 1.1% last month, higher than estimates of 0.5%, and faster than a 0.9% advance in March.
"This is consistent with continued economic growth in the second quarter and not a recession underway," said Bill Adams, chief economist for Comerica Bank in Dallas.
The U.S. Federal Reserve will "keep pushing" to tighten U.S. monetary policy until it is clear inflation is declining, Fed Chair Jerome Powell said at an event on Tuesday.
Traders are pricing in an 85% chance of a 50-basis point rate hike in June. FEDWATCH
According to preliminary data, the S&P 500 .SPX gained 81.54 points, or 2.03%, to end at 4,089.55 points, while the Nasdaq Composite .IXIC gained 323.23 points, or 2.77%, to 11,986.02. The Dow Jones Industrial Average .DJI rose 432.62 points, or 1.35%, to 32,659.17.
Walmart Inc WMT.Ntumbled after the retail giant cut its annual profit forecast, signaling a bigger hit to margins.
Retailers Costco COST.O, Target TGT.N and Dollar Tree DLTR.O also fell.
United Airlines Holdings Inc UAL.O gained after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N.
A positive first-quarter earnings season has been overshadowed by worries about the conflict in Ukraine, soaring inflation, COVID-19 lockdowns in China and aggressive policy tightening by central banks.
The S&P 500 is down about 14% so far in 2022, and the Nasdaq is off around 24%, hit by tumbling growth stocks.
U.S.-listed Chinese stocks jumped on hopes that China will ease its crackdown on the technology sector.
Strong U.S. retail sales, manufacturing output boost economic outlook
GRAPHIC-S&P 500's busiest tradeshttps://tmsnrt.rs/3lmLfaJ
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru, and Noel Randewich in Oakland, Calif.; Editing by Shounak Dasgupta and Lisa Shumaker)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines Holdings Inc UAL.O gained after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. Investors were cheered by data showing U.S. retail sales increased 0.9% in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants. The U.S. Federal Reserve will "keep pushing" to tighten U.S. monetary policy until it is clear inflation is declining, Fed Chair Jerome Powell said at an event on Tuesday.
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United Airlines Holdings Inc UAL.O gained after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Noel Randewich May 17 (Reuters) - Wall Street finished sharply higher on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth. Another set of economic data showed industrial production accelerated 1.1% last month, higher than estimates of 0.5%, and faster than a 0.9% advance in March.
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United Airlines Holdings Inc UAL.O gained after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Noel Randewich May 17 (Reuters) - Wall Street finished sharply higher on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth. FEDWATCH According to preliminary data, the S&P 500 .SPX gained 81.54 points, or 2.03%, to end at 4,089.55 points, while the Nasdaq Composite .IXIC gained 323.23 points, or 2.77%, to 11,986.02.
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United Airlines Holdings Inc UAL.O gained after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Noel Randewich May 17 (Reuters) - Wall Street finished sharply higher on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth. FEDWATCH According to preliminary data, the S&P 500 .SPX gained 81.54 points, or 2.03%, to end at 4,089.55 points, while the Nasdaq Composite .IXIC gained 323.23 points, or 2.77%, to 11,986.02.
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3531.0
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2022-05-17 00:00:00 UTC
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US STOCKS-Wall Street ends sharply higher, fueled by Apple
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-sharply-higher-fueled-by-apple
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nan
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nan
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By Noel Randewich and Amruta Khandekar
May 17 (Reuters) - Wall Street finished sharply higher on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth.
Ten of the 11 major S&P sector indexes advanced, with financials .SPSY, materials .SPLRCM, consumer discretionary .SPLRCD and technology .SPLRCT all gaining more than 2%.
Investors were cheered by data showing U.S. retail sales increased 0.9% in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants.
Recently punished shares of Microsoft Corp MSFT.O, Apple Inc AAPL.O, Tesla Inc TSLA.O and Amazon AMZN.O gained between 2% and 5.1%, driving the S&P 500 and the Nasdaq higher.
Tuesday's broad rally followed weeks of selling on the U.S. stock market that last week saw the S&P 500 sink to its lowest level since March 2021.
"The largest pockets of stocks that investors tend to buy have been essentially beaten up. They're either in correction or bear market territory," said Sylvia Jablonski, chief investment officer of Defiance ETF. "I think investors are looking at these opportunities to buy on the dip, and I suspect that today is a good day to do that."
The S&P 500 Banks index .SPXBK jumped 3.8%, with Citigroup C.N climbing almost 8% after Warren Buffett's Berkshire Hathaway BRKa.N disclosed a nearly $3 billion investment in the U.S. lender.
Another set of economic data showed industrial production accelerated 1.1% last month, higher than estimates of 0.5%, and faster than a 0.9% advance in March.
"This is consistent with continued economic growth in the second quarter and not a recession underway," said Bill Adams, chief economist for Comerica Bank in Dallas.
The U.S. Federal Reserve will "keep pushing" to tighten U.S. monetary policy until it is clear inflation is declining, Fed Chair Jerome Powell said at an event on Tuesday.
Traders are pricing in an 85% chance of a 50-basis point rate hike in June. FEDWATCH
The S&P 500 climbed 2.02% to end the session at 4,088.85 points.
The Nasdaq gained 2.76% to 11,984.52 points, while Dow Jones Industrial Average rose 1.34% to 32,654.59 points.
Underscoring Wall Street's recent volatility, the S&P 500 has gained or lost 2% or more in a session some 39 times so far in 2022, compared to 24 times in all of 2021.
Walmart Inc WMT.N tumbled 11.4% after the retail giant cut its annual profit forecast, signaling a hit to its margins. That marked the biggest one-day percentage drop for Walmart's stock since 1987.
Retailers Costco COST.O, Target TGT.N and Dollar Tree DLTR.O fell between 0.8% and 3.2%.
United Airlines Holdings Inc UAL.O gained 7.9% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N.
A positive first-quarter earnings season has been overshadowed by worries about the conflict in Ukraine, soaring inflation, COVID-19 lockdowns in China and aggressive policy tightening by central banks.
The S&P 500 is down about 14% so far in 2022, and the Nasdaq is off around 23%, hit by tumbling growth stocks.
U.S.-listed Chinese stocks jumped on hopes that China will ease its crackdown on the technology sector.
Advancing issues outnumbered declining ones on the NYSE by a 2.92-to-1 ratio; on Nasdaq, a 3.19-to-1 ratio favored advancers.
The S&P 500 posted one new 52-week high and 30 new lows; the Nasdaq Composite recorded 24 new highs and 126 new lows.
Volume on U.S. exchanges was 12.0 billion shares, compared with a 13.3 billion average over the last 20 trading days.
Strong U.S. retail sales, manufacturing output boost economic outlook
GRAPHIC-S&P 500's busiest tradeshttps://tmsnrt.rs/3lmLfaJ
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru, and Noel Randewich in Oakland, Calif.; Editing by Shounak Dasgupta and Lisa Shumaker)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines Holdings Inc UAL.O gained 7.9% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. Investors were cheered by data showing U.S. retail sales increased 0.9% in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants. The U.S. Federal Reserve will "keep pushing" to tighten U.S. monetary policy until it is clear inflation is declining, Fed Chair Jerome Powell said at an event on Tuesday.
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United Airlines Holdings Inc UAL.O gained 7.9% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Noel Randewich and Amruta Khandekar May 17 (Reuters) - Wall Street finished sharply higher on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth. Investors were cheered by data showing U.S. retail sales increased 0.9% in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants.
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United Airlines Holdings Inc UAL.O gained 7.9% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Noel Randewich and Amruta Khandekar May 17 (Reuters) - Wall Street finished sharply higher on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth. The Nasdaq gained 2.76% to 11,984.52 points, while Dow Jones Industrial Average rose 1.34% to 32,654.59 points.
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United Airlines Holdings Inc UAL.O gained 7.9% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Noel Randewich and Amruta Khandekar May 17 (Reuters) - Wall Street finished sharply higher on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth. Ten of the 11 major S&P sector indexes advanced, with financials .SPSY, materials .SPLRCM, consumer discretionary .SPLRCD and technology .SPLRCT all gaining more than 2%.
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3532.0
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2022-05-17 00:00:00 UTC
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Stock Market Today: Wall Street Rallies Around Reassuring Retail Data
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-wall-street-rallies-around-reassuring-retail-data
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nan
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The stock market enjoyed a broad rebound Tuesday as fresh economic data suggested the U.S. consumer is still shopping strong.
The U.S. Census Bureau said today that April retail sales improved by 0.9% over March. Though that was slightly less than the 1.0% expected, there was a show of strength in the significant upward revision to March's numbers, to 1.4% growth from 0.5% originally.
SEE MORE The 22 Best Stocks to Buy for 2022
"To the extent that markets are worried about a growth slowdown, this is good news, but it is also a further catalyst for the Fed to raise rates even higher to get inflation under control," says Chris Zaccarelli, chief investment officer for registered investment advisor Independent Advisor Alliance.
While Zaccarelli joins other names in believing a recession is unlikely in 2022, "the Fed is going to need to raise interest rates to a point where they are likely to cause a recession in 2023 or 2024, and that gives us cause for concern," he says.
Despite the promising retail data, success in retail stocks wasn't a gimme.
Walmart (WMT, -11.4%) plunged after delivering a mixed quarterly report. Revenues improved 2.4% year-over-year to $141.6 billion to easily top expectations, and Walmart lifted its full-year sales outlook. However, that windfall is coming from cost-conscious consumers flocking to its grocery aisle, which has lower margins than its other offerings. This, as well as supply-chain problems and other headwinds, caused Walmart to report profits of $1.30 per share that were well short of estimates, and to lower its income forecast for 2022.
Home Depot (HD, +1.7%) fared better, however, after delivering record fiscal first-quarter sales and upgrading its full-year outlook.
Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
"Walmart's report this week basically confirmed all the negative scenarios that you would expect given inflationary pressures and rising interest rates," says David Keller, chief market strategist at StockCharts.com. But he added that "Home Depot's report had a much more encouraging tone as consumers fueled a strong earnings win for the company."
SEE MORE 37 Ways to Earn Up to 9% Yields on Your Money
Other pockets of strength Tuesday included airline stocks such as American Airlines (AAL, +7.7%) and Delta Air Lines (DAL, +6.7%), which were boosted by United Airlines' (UAL, +7.9%) higher second-quarter revenue outlook. Semiconductor stocks including Micron Technology (MU, +5.7%) and Qualcomm (QCOM, +4.3%) also rallied around Piper Sandler's upgrade of Advanced Micro Devices (AMD, +8.7%).
The Nasdaq Composite was tops among the major indexes Tuesday, up 2.8% to 11,984. The S&P 500 delivered a 2.0% gain to 4,088, while the Dow Jones Industrial Average improved 1.3% to 32,654.
YCharts
Other news in thestock market today
The small-cap Russell 2000 surged 3.2% to 1,840.
U.S. crude oil futures slumped 1.6% to $112.40 per barrel.
A retreat in the U.S. dollar helped gold futures tick 0.3% higher to $1,818.90 per ounce.
Bitcoin improved by 1.7% to $30,058.48. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
Twitter (TWTR, +2.5%) made some gains despite a potential deal with Tesla (TSLA, +5.1%) CEO Elon Musk looking increasingly unlikely. Musk insisted today that he would back out of his $44 billion bid to buy the social platform unless Twitter proved that fewer than 5% of its users are bots. He tweeted that "20% fake/spam accounts, while 4 times what Twitter claims, could be *much* higher" without providing proof. Numerous analysts have now said they believe Musk's sudden interest in Twitter's bot numbers is either an attempt to escape his deal, or lower the $54.20-per-share price tag.
Buffett's Latest Buys Are In!
A number of other stocks were driven higher Tuesday by their newfound inclusion into a prestigious order: the equity portfolio of Warren Buffett's Berkshire Hathaway.
SEE MORE The 15 Best Value Stocks to Buy Right Now
Berkshire filed its quarterly Form 13F with the SEC yesterday afternoon, revealing that after more than a year of heavy selling, Warren Buffett was finally eager to buy. Paramount Global (PARA, +15.4%) and Celanese (CE, +7.5%) were just two of the eight new positions Berkshire entered during the first quarter, and among the top beneficiaries of earning Buffett's seal of approval.
We recently mentioned that inflation has been a major driver of many of Buffett's purchases of the past few months, but it's not the only story.
Read on as we explore each and every one of Buffett's 22 moves from the first quarter of 2022, including what likely drew the Oracle of Omaha (or his lieutenants) to the position.
Kyle Woodley was long AMD as of this writing.
SEE MORE 2022's Best Mutual Funds in 401(k) Retirement Plans
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SEE MORE 37 Ways to Earn Up to 9% Yields on Your Money Other pockets of strength Tuesday included airline stocks such as American Airlines (AAL, +7.7%) and Delta Air Lines (DAL, +6.7%), which were boosted by United Airlines' (UAL, +7.9%) higher second-quarter revenue outlook. "Walmart's report this week basically confirmed all the negative scenarios that you would expect given inflationary pressures and rising interest rates," says David Keller, chief market strategist at StockCharts.com. Semiconductor stocks including Micron Technology (MU, +5.7%) and Qualcomm (QCOM, +4.3%) also rallied around Piper Sandler's upgrade of Advanced Micro Devices (AMD, +8.7%).
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SEE MORE 37 Ways to Earn Up to 9% Yields on Your Money Other pockets of strength Tuesday included airline stocks such as American Airlines (AAL, +7.7%) and Delta Air Lines (DAL, +6.7%), which were boosted by United Airlines' (UAL, +7.9%) higher second-quarter revenue outlook. SEE MORE The 22 Best Stocks to Buy for 2022 "To the extent that markets are worried about a growth slowdown, this is good news, but it is also a further catalyst for the Fed to raise rates even higher to get inflation under control," says Chris Zaccarelli, chief investment officer for registered investment advisor Independent Advisor Alliance. Revenues improved 2.4% year-over-year to $141.6 billion to easily top expectations, and Walmart lifted its full-year sales outlook.
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SEE MORE 37 Ways to Earn Up to 9% Yields on Your Money Other pockets of strength Tuesday included airline stocks such as American Airlines (AAL, +7.7%) and Delta Air Lines (DAL, +6.7%), which were boosted by United Airlines' (UAL, +7.9%) higher second-quarter revenue outlook. SEE MORE The 22 Best Stocks to Buy for 2022 "To the extent that markets are worried about a growth slowdown, this is good news, but it is also a further catalyst for the Fed to raise rates even higher to get inflation under control," says Chris Zaccarelli, chief investment officer for registered investment advisor Independent Advisor Alliance. SEE MORE The 15 Best Value Stocks to Buy Right Now Berkshire filed its quarterly Form 13F with the SEC yesterday afternoon, revealing that after more than a year of heavy selling, Warren Buffett was finally eager to buy.
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SEE MORE 37 Ways to Earn Up to 9% Yields on Your Money Other pockets of strength Tuesday included airline stocks such as American Airlines (AAL, +7.7%) and Delta Air Lines (DAL, +6.7%), which were boosted by United Airlines' (UAL, +7.9%) higher second-quarter revenue outlook. SEE MORE The 22 Best Stocks to Buy for 2022 "To the extent that markets are worried about a growth slowdown, this is good news, but it is also a further catalyst for the Fed to raise rates even higher to get inflation under control," says Chris Zaccarelli, chief investment officer for registered investment advisor Independent Advisor Alliance. Walmart (WMT, -11.4%) plunged after delivering a mixed quarterly report.
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3533.0
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2022-05-17 00:00:00 UTC
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US STOCKS-Wall St climbs on gains in banks, strong retail sales data
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-climbs-on-gains-in-banks-strong-retail-sales-data
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nan
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By Amruta Khandekar and Devik Jain
May 17 (Reuters) - U.S. stocks rose on Tuesday, as Citigroup led a surge in bank shares after Berkshire Hathaway revealed a big stake and strong retail sales in April eased some concerns about slowing economic growth.
Ten of the 11 major S&P sectors advanced, with financials .SPSY and technology .SPLRCT up 2% each.
Microsoft Corp MSFT.O, Apple Inc AAPL.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O gained between 1.5% and 4.8%, providing the biggest boost to the S&P 500 and the Nasdaq.
Banks .SPXBK jumped 3.1%, with Citigroup C.N climbing 7.9%, after Warren Buffett's Berkshire Hathaway BRKa.N disclosed a nearly $3 billion investment in the U.S. lender.
"If you have exhausted sellers, there's no one else left to sell ... the market has really been pummeled," said Mimi Duff, senior client advisor at investment advisory firm GenTrust.
"So at the very sight of any good news you can get a bounce, but what we are really looking for is some consolidation."
U.S. retail sales increased 0.9% in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants.
Another set of data showed industrial production accelerated 1.1% last month, higher than estimates of 0.5%, and followed by a 0.9% advance in March.
"This is consistent with continued economic growth in the second quarter and not a recession underway," said Bill Adams, chief economist for Comerica Bank in Dallas.
"The industrial sector is running too hot and needs to slow for inflation to get under control. The Fed will raise the federal funds target half a percentage point at each of the next two meetings to throw some sand in the economy's gears."
Fed Chair Jerome Powell is scheduled to speak later in the day and his comments would be parsed for clues on the path of future interest rate hikes. Traders are pricing in a 50-basis point rate hike in June. FEDWATCH
At 11:34 a.m. ET, the Dow Jones Industrial Average .DJI was up 273.83 points, or 0.85%, at 32,497.25, the S&P 500 .SPX was up 58.24 points, or 1.45%, at 4,066.25, and the Nasdaq Composite .IXIC was up 224.00 points, or 1.92%, at 11,886.80.
However, rising costs weighed on Dow component Walmart Inc WMT.N, which slid 9.8%, after the retail giant cut its annual profit forecast, signaling a bigger hit to margins.
Retailers Costco COST.O, Target TGT.N and Dollar Tree DLTR.O fell between 1.2% and 2.7%.
United Airlines Holdings Inc UAL.O gained 6.5% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N.
A positive first-quarter earnings season has been overshadowed by worries about the conflict in Ukraine, soaring inflation, COVID-19 lockdowns in China and aggressive policy tightening by central banks.
The S&P 500 is down 1.6% and the Nasdaq off 3.7% so far in May, largely hit by declines in growth stocks.
U.S.-listed Chinese stocks jumped on hopes that China will ease its crackdown on the technology sector.
Advancing issues outnumbered decliners for a 3.77-to-1 ratio on the NYSE and a 3.21-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 29 new lows, while the Nasdaq recorded 18 new highs and 98 new lows.
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((Amruta.Khandekar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines Holdings Inc UAL.O gained 6.5% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Devik Jain May 17 (Reuters) - U.S. stocks rose on Tuesday, as Citigroup led a surge in bank shares after Berkshire Hathaway revealed a big stake and strong retail sales in April eased some concerns about slowing economic growth. However, rising costs weighed on Dow component Walmart Inc WMT.N, which slid 9.8%, after the retail giant cut its annual profit forecast, signaling a bigger hit to margins.
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United Airlines Holdings Inc UAL.O gained 6.5% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Devik Jain May 17 (Reuters) - U.S. stocks rose on Tuesday, as Citigroup led a surge in bank shares after Berkshire Hathaway revealed a big stake and strong retail sales in April eased some concerns about slowing economic growth. The S&P index recorded one new 52-week high and 29 new lows, while the Nasdaq recorded 18 new highs and 98 new lows.
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United Airlines Holdings Inc UAL.O gained 6.5% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Devik Jain May 17 (Reuters) - U.S. stocks rose on Tuesday, as Citigroup led a surge in bank shares after Berkshire Hathaway revealed a big stake and strong retail sales in April eased some concerns about slowing economic growth. ET, the Dow Jones Industrial Average .DJI was up 273.83 points, or 0.85%, at 32,497.25, the S&P 500 .SPX was up 58.24 points, or 1.45%, at 4,066.25, and the Nasdaq Composite .IXIC was up 224.00 points, or 1.92%, at 11,886.80.
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United Airlines Holdings Inc UAL.O gained 6.5% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Devik Jain May 17 (Reuters) - U.S. stocks rose on Tuesday, as Citigroup led a surge in bank shares after Berkshire Hathaway revealed a big stake and strong retail sales in April eased some concerns about slowing economic growth. Traders are pricing in a 50-basis point rate hike in June.
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3534.0
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2022-05-17 00:00:00 UTC
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Peru mining protests risk clogging $53 bln investment pipeline, industry warns
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AAL
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https://www.nasdaq.com/articles/peru-mining-protests-risk-clogging-%2453-bln-investment-pipeline-industry-warns
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nan
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nan
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By Marco Aquino
LIMA, May 17 (Reuters) - Peru, the world's second-largest copper producer, risks losing out on billions of dollars of mining investment if the government fails to defuse protests that are hitting the industry and denting production, analysts and executives said.
Social conflicts have risen in the Andean nation over the past year since socialist President Pedro Castillo came into office, with a spate of protests against mines, including one that has halted production at the huge Las Bambas copper deposit.
With global prices soaring on high demand, that now threatens a mining investment pipeline of some $53 billion and could stall future projects expected by investment bank RBC to make up 12% of the world's copper supply in years to come.
"Without any world-class projects on the horizon, the prospects for sustaining production are not good," said Gonzalo Tamayo, analyst at Macroconsult and a former Peruvian mines and energy minister.
Mining executives and analyst met last week in Peru's capital Lima, where the main concern was falling investment tied to rising social protests. A central bank report shows investment dipping some 1% this year and 15% in 2023.
The conflicts, mainly in poor Andean areas where communities feel bypassed by the huge mineral wealth beneath their soils, have started to bite, with protesters emboldened under Castillo who won election pledging to redistribute mining wealth.
Southern Copper's SCCO.N Cuajone mine was paralyzed for almost two months earlier this year.
Las Bambas, owned by China's MMG Ltd 1208.HK, suspended operations in April after an invasion of the mine by communities demanding what they called ancestral lands. The mine, which produces 2% of the world's copper output, remains offline.
Las Bambas had received government approval in March to expand the mine, a plan which is now under threat.
Álvaro Ossio, vice president of commercial and finance for Las Bambas, said in a presentation at the Lima event, that the country faces a big task to benefit from high global prices.
"The great challenge that remains for all Peruvians is to take advantage of this great opportunity in these future trends," he said.
Peru's last big mining investments were in Anglo American's AAL.L Quellaveco and Minsur's MINSURI1.LM Mina Justa of a combined $6.6 billion. Their operations starting this year will help Peru hit annual output of 3 million tonnes of copper by 2025, experts say.
However, other major projects like Southern Copper's Tia María, Michiquillay and Los Chancas worth some $6.7 billion, Buenaventura's BUENAVC1.LM near billion dollar Trapiche and Rio Tinto's RIO.AX $5 billion La Granja remain up in the air.
Not all was downbeat, however.
The world's largest gold miner, Newmont Mining NEM.N, said at the event that it was considering expanding into copper production in Peru, with a potential future return to the canceled Conga project.
Analyst Tamayo, though, stressed recent protests against mining had become harder to resolve.
"Now there are protests that stop mines in full operation," he said. "The mining firms feel that the State does not support them and that the State has ceased to be the arbiter in conflicts."
(Reporting by Marco Aquino; Editing by Adam Jourdan and Richard Pullin)
((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.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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Peru's last big mining investments were in Anglo American's AAL.L Quellaveco and Minsur's MINSURI1.LM Mina Justa of a combined $6.6 billion. By Marco Aquino LIMA, May 17 (Reuters) - Peru, the world's second-largest copper producer, risks losing out on billions of dollars of mining investment if the government fails to defuse protests that are hitting the industry and denting production, analysts and executives said. Social conflicts have risen in the Andean nation over the past year since socialist President Pedro Castillo came into office, with a spate of protests against mines, including one that has halted production at the huge Las Bambas copper deposit.
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Peru's last big mining investments were in Anglo American's AAL.L Quellaveco and Minsur's MINSURI1.LM Mina Justa of a combined $6.6 billion. By Marco Aquino LIMA, May 17 (Reuters) - Peru, the world's second-largest copper producer, risks losing out on billions of dollars of mining investment if the government fails to defuse protests that are hitting the industry and denting production, analysts and executives said. The mine, which produces 2% of the world's copper output, remains offline.
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Peru's last big mining investments were in Anglo American's AAL.L Quellaveco and Minsur's MINSURI1.LM Mina Justa of a combined $6.6 billion. By Marco Aquino LIMA, May 17 (Reuters) - Peru, the world's second-largest copper producer, risks losing out on billions of dollars of mining investment if the government fails to defuse protests that are hitting the industry and denting production, analysts and executives said. Social conflicts have risen in the Andean nation over the past year since socialist President Pedro Castillo came into office, with a spate of protests against mines, including one that has halted production at the huge Las Bambas copper deposit.
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Peru's last big mining investments were in Anglo American's AAL.L Quellaveco and Minsur's MINSURI1.LM Mina Justa of a combined $6.6 billion. By Marco Aquino LIMA, May 17 (Reuters) - Peru, the world's second-largest copper producer, risks losing out on billions of dollars of mining investment if the government fails to defuse protests that are hitting the industry and denting production, analysts and executives said. With global prices soaring on high demand, that now threatens a mining investment pipeline of some $53 billion and could stall future projects expected by investment bank RBC to make up 12% of the world's copper supply in years to come.
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3535.0
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2022-05-17 00:00:00 UTC
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Why Airline Stocks Are Gaining Altitude Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-gaining-altitude-today
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nan
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nan
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What happened
United Airlines Holdings (NASDAQ: UAL) raised its outlook for the current quarter, and it is giving a lift to the entire airline sector. Shares of United and JetBlue Airways (NASDAQ: JBLU) traded up as much as 7% by midday Tuesday, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Brazilian airline Azul (NYSE: AZUL) were all up 5% or more.
So what
Airline investors are on pins and needles watching to see if high fuel prices, inflation, and other issues will disrupt what is expected to be a strong summer travel season. The airlines had hoped to use 2022 to recoup some of the losses from 2020, when the pandemic reduced travel demand to near-zero and forced airlines to take on loans to stay airborne.
Image source: Getty Images.
United provided a boost to the industry in an after-hours Monday regulatory filing. The airline raised its passenger revenue outlook due to what it called a strong demand environment. United now expects total revenue per available seat mile, a standard industry metric, to be up 23% to 25% compared to the same period of 2019, prior to the pandemic. That's up from United's previous guidance of up 17%.
United also said it is raising its capacity outlook slightly, and did warn that costs are likely to come in slightly higher than expected due to higher oil prices. But the overall message is that ticket demand is holding steady, and giving the industry pricing power. United held its adjusted operating margin guidance steady at 10%, an indication that it has been able to offset fuel costs with higher ticket prices.
"In the period following the company's previous guidance, the demand environment has continued to improve, resulting in a higher unit revenue outlook for the second quarter 2022," United said. "The price of oil has also continued to increase, resulting in a higher expected fuel price for the second quarter 2022."
Now what
Although the guidance is company-specific, it isn't hard to apply what United said to the broader industry. For all of the talk of what inflation might do to consumer confidence, it has apparently not yet caused a change in vacation plans.
The real question now is what happens to demand when the summer is over. Businesses are gradually reopening, and as they do it should mean some sort of rebound in corporate travel. But international and business demand is still likely to lag domestic for the next year or more, limiting the upside to airline revenue growth.
The good news is a strong summer season should give the airlines the wherewithal to withstand any additional headwinds, be it a new wave of the pandemic, or a recession. The bad news is that there are likely limits to how high this sector can go with such uncertainty still lingering. For those who want to buy in, steady performers like Delta and Southwest Airlines are the top picks.
The airlines are enjoying strong gains on a day when the markets are up and investors are hoping for the best, but given the way the last few years have gone there is no reason to believe the turbulence is gone for good.
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Lou Whiteman has positions in Delta Air Lines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, 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 United and JetBlue Airways (NASDAQ: JBLU) traded up as much as 7% by midday Tuesday, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Brazilian airline Azul (NYSE: AZUL) were all up 5% or more. So what Airline investors are on pins and needles watching to see if high fuel prices, inflation, and other issues will disrupt what is expected to be a strong summer travel season. United held its adjusted operating margin guidance steady at 10%, an indication that it has been able to offset fuel costs with higher ticket prices.
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Shares of United and JetBlue Airways (NASDAQ: JBLU) traded up as much as 7% by midday Tuesday, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Brazilian airline Azul (NYSE: AZUL) were all up 5% or more. "In the period following the company's previous guidance, the demand environment has continued to improve, resulting in a higher unit revenue outlook for the second quarter 2022," United said. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines.
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Shares of United and JetBlue Airways (NASDAQ: JBLU) traded up as much as 7% by midday Tuesday, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Brazilian airline Azul (NYSE: AZUL) were all up 5% or more. What happened United Airlines Holdings (NASDAQ: UAL) raised its outlook for the current quarter, and it is giving a lift to the entire airline sector. "In the period following the company's previous guidance, the demand environment has continued to improve, resulting in a higher unit revenue outlook for the second quarter 2022," United said.
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Shares of United and JetBlue Airways (NASDAQ: JBLU) traded up as much as 7% by midday Tuesday, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Brazilian airline Azul (NYSE: AZUL) were all up 5% or more. "In the period following the company's previous guidance, the demand environment has continued to improve, resulting in a higher unit revenue outlook for the second quarter 2022," United said. But international and business demand is still likely to lag domestic for the next year or more, limiting the upside to airline revenue growth.
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3536.0
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2022-05-17 00:00:00 UTC
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US STOCKS-Wall Street set to open higher as technology, growth stocks rebound
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-open-higher-as-technology-growth-stocks-rebound
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nan
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nan
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By Amruta Khandekar and Devik Jain
May 17 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, as strong forecasts from Home Depot and United Airlines added to an upbeat global mood driven by hopes of easing crackdown on tech firms and COVID-19 in China.
Big technology and growth companies led the rebound in premarket trading, with Microsoft Corp MSFT.O, Apple Inc AAPL.O, Nvidia Corp NVDA.O and Tesla Inc TSLA.O up between 1.5% and 2.3%.
Home Depot Inc HD.N added 3.9% after raising its full-year sales forecast on firm demand for home improvement tools and building materials.
United Airlines Holdings Inc UAL.O rose 4% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N.
"If you have exhausted sellers, there is no one else left to sell...the market has really been pummeled," said Mimi Duff, senior client advisor at investment advisory firm GenTrust.
"So at the very sight of any good news you can get a bounce but really what we are looking for is some consolidation."
Meanwhile, U.S. retail sales increased solidly in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants, showing no signs of demand letting up despite high inflation.
But rising costs weighed on Dow component Walmart Inc WMT.N, which fell 6.3% after the retail giant cut its annual profit forecast, signaling a bigger hit to margins.
Shares of rival retailers Costco COST.O, Target TGT.N, Dollar Tree DLTR.O fell between 0.5 and 1.8%.
In Europe and Asia, shares jumped as Shanghai achieved the long-awaited milestone of three straight days with no new COVID-19 cases outside quarantine zones, raising hopes that restrictions might be eased. MKTS/GLOB
Chinese firms listed on the U.S. indexes also rose on signs that China is looking to ease a regulatory crackdown on the tech sector after Vice-Premier Liu He told executives that relations between the government and market need to be "properly managed".
A positive first-quarter earnings season has been overshadowed by worries about the Ukraine war, soaring inflation, COVID-19 lockdown in China and aggressive policy tightening by central banks.
The S&P 500 .SPX has declined 3% and the Nasdaq .IXIC 5.5% so far in May, due to losses in growth stocks.
A slew of Federal Reserve policymakers, including Chair Jerome Powell, are scheduled to speak later in the day and their comments would be parsed for clues on the path of future interest rate hikes.
Traders now see a nearly 80% probability of a 50-basis point rate hike in June. FEDWATCH
At 8:46 a.m. ET, Dow e-minis 1YMcv1 were up 419 points, or 1.3%, S&P 500 e-minis EScv1 were up 62.25 points, or 1.55%, and Nasdaq 100 e-minis NQcv1 were up 221.75 points, or 1.81%.
Among other stocks, Advanced Micro Devices AMD.O gained 3.7% after Piper Sandler upgraded the semiconductor designer's stock to "overweight".
Citigroup C.N jumped 5.2% after Warren Buffett's Berkshire Hathaway BRKa.N disclosed a nearly $3 billion investment in the U.S. lender.
Take-Two Interactive Software TTWO.O gained 5.4% after the Grand Theft Auto" publisher posted upbeat fourth-quarter profit.
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru; Editing by Arun Koyyur)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines Holdings Inc UAL.O rose 4% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Devik Jain May 17 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, as strong forecasts from Home Depot and United Airlines added to an upbeat global mood driven by hopes of easing crackdown on tech firms and COVID-19 in China. Meanwhile, U.S. retail sales increased solidly in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants, showing no signs of demand letting up despite high inflation.
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United Airlines Holdings Inc UAL.O rose 4% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Devik Jain May 17 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, as strong forecasts from Home Depot and United Airlines added to an upbeat global mood driven by hopes of easing crackdown on tech firms and COVID-19 in China. Home Depot Inc HD.N added 3.9% after raising its full-year sales forecast on firm demand for home improvement tools and building materials.
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United Airlines Holdings Inc UAL.O rose 4% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Devik Jain May 17 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, as strong forecasts from Home Depot and United Airlines added to an upbeat global mood driven by hopes of easing crackdown on tech firms and COVID-19 in China. ET, Dow e-minis 1YMcv1 were up 419 points, or 1.3%, S&P 500 e-minis EScv1 were up 62.25 points, or 1.55%, and Nasdaq 100 e-minis NQcv1 were up 221.75 points, or 1.81%.
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United Airlines Holdings Inc UAL.O rose 4% after the carrier lifted its current-quarter revenue forecast, boosting shares of Delta Air DAL.N, American Airlines AAL.O and Spirit Airlines SAVE.N. By Amruta Khandekar and Devik Jain May 17 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, as strong forecasts from Home Depot and United Airlines added to an upbeat global mood driven by hopes of easing crackdown on tech firms and COVID-19 in China. Home Depot Inc HD.N added 3.9% after raising its full-year sales forecast on firm demand for home improvement tools and building materials.
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3537.0
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2022-05-16 00:00:00 UTC
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5 Travel Stocks To Watch After JetBlue Launches Hostile Takeover For Spirit
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AAL
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https://www.nasdaq.com/articles/5-travel-stocks-to-watch-after-jetblue-launches-hostile-takeover-for-spirit
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nan
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5 Travel Stocks For Your Watchlist Today
With summer approaching, travel stocks could be worth paying attention to in the stock market. After a couple of years of staying in, people are likely feeling the pent-up urge to finally travel again. Despite the soaring airfares, Americans seem to be shrugging it off, with demand outstripping the supply of seats. Specifically, flight tickets rose by 18.6% in April from the previous month, according to the U.S. Bureau of Labor Statistics. In fact, airfares were one of the largest contributors to the 8.3% rise in last month’s CPI.
Michelle Meyer, the chief U.S. economist at the Mastercard Economics Institute, said that the strong growth in wages coupled with savings meant that consumers “may be able to tolerate price increases for longer, particularly for a type of spend that they are prioritizing.” Seemingly solid consumer balance sheets aside, there are plenty of exciting developments amongst the top airline stocks around as well. Take Spirit Airlines (NYSE: SAVE) for example. Amidst its ongoing merger talks with Frontier Group (NASDAQ: ULCC), the company’s shareholders are now receiving a tender offer from JetBlue (NASDAQ: JBLU). JetBlue is currently offering $30 per share over Frontier’s $21.66 per share bid. In the larger scheme of things, the travel industry continues to gain momentum. And on that note, here are five other travel stocks to check out in the stock market today.
Travel Stocks To Watch Right Now
Wynn Resorts Ltd. (NASDAQ: WYNN)
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
Booking Holdings Inc. (NASDAQ: BKNG)
Avis Budget Group Inc. (NASDAQ: CAR)
American Airlines Group Inc. (NASDAQ: AAL)
Wynn Resorts
Wynn Resorts is a developer and operator of high-end hotels and casinos. These would include the likes of Wynn Las Vegas, Encore Boston Harbor, Wynn Macau, and Wynn Palace, Cotai. In addition to that, the company also operates via its online gaming division, Wynn Interactive. The likes of which offer world-class online casino and sports betting experiences to consumers across the U.K. and the U.S. Last week, the company reported its financial results for the quarter ended March 31, 2022.
According to the report, operating revenues were $953.3 million for the quarter, representing an increase of over 29% from $736.7 million in the prior year. Besides, Wynn managed to narrow its losses by a considerable amount. Namely, it reported a loss of $183.3 million as compared to $281.0 million in 2021. “Our first-quarter results reflect continued strength at both Wynn Las Vegas and Encore Boston Harbor where our teams’ unrelenting focus on five-star hospitality and world-class experiences combined with very strong customer demand to deliver a new first-quarter record for Adjusted Property EBITDA at both properties,” said CEO Craig Billings. Given the positive development, is WYNN stock a buy?
Source: TD Ameritrade TOS
[Read More] Best Social Media Stocks To Buy Now? 4 To Watch This Week
Norwegian Cruise Line
Another travel stock to consider is Norwegian Cruise Line, or Norwegian for short. Being the third-largest cruise line in the world, the company boasts a combined fleet of 28 ships with nearly 60,000 berths. It operates cruise brands such as Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. Furthermore, these brands offer itineraries to more than 490 destinations worldwide. The company also has nine more ships scheduled for delivery through 2027, comprising approximately 24,000 berths.
On May 10, the company reported its first-quarter financials. Diving in, Norwegian announced that it has become the first major cruise operator to return its entire fleet back to service. The company reported that quarterly revenue increased to $521.9 million compared to $3.1 million last year due to the resumption of its cruises. In the same report, Norwegian said it expects to see pricing strength for all future periods. All in all, should you watch NCLH stock as it sets sail?
Source: TD Ameritrade TOS
[Read More] Stock Market Today: Dow Jones, S&P 500 Opens Lower; Spirit Airlines Soars On JetBlue Hostile Takeover Bid
Booking Holdings
Booking Holdings is the world’s leading provider of online travel and related services. The company renders its services to consumers and local partners in more than 200 countries and territories through its notable brands. These include the likes of Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK, and OpenTable. In 2019, consumers booked 845 million room nights of accommodation, 77 million rental car days, and 7 million airplane tickets using its websites.
Earlier in the month, it posted its first-quarter earnings results for the year. According to the press release, the company’s revenue saw an increase of 136% to $2.7 billion compared to the year before. Moving on, non-GAAP net income came in at $161 million, compared to a net loss of $215 million last year. Impressively, the company also reported $27 billion in gross booking in the past quarter, the highest quarterly amount in its history. Given this, should you invest in BKNG stock?
Source: TD Ameritrade TOS
Avis Budget Group
Avis Budget is a vehicle rental company with operations around the world. In fact, it is a leading global provider of mobility solutions through its portfolio of brands and has over 10,000 rental locations. Its Zipcar brand is a leading car-sharing network as well. Through all of this, the company continues to reinvent the car rental experience, using data-driven intelligence and company digitization.
In the company’s latest earnings report, Avis saw quarterly revenue increase by 77% year-over-year to $2.43 billion. Notably, this figure was already higher compared to pre-pandemic levels. Along with that, net income for the quarter came in at $527 million and its adjusted EBITDA was $810 million, the best first-quarter adjusted EBITDA in its history. Finally, Avis also ended the quarter with $550 million in cash and cash equivalents. Thanks to diligent fleet management and continued cost optimization, the company was able to bring in strong numbers this past quarter. And with that, should you add CAR stock to your watchlist?
Source: TD Ameritrade TOS
[Read More] Top Stock Market News For Today May 16, 2022
American Airlines
Last but not least, we have American Airlines or American for short. As a leading name in the global air travel industry, the company operates nearly 6,700 daily flights to almost 350 destinations across 50 countries. On top of that, AAL is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. Last month, the company posted its first-quarter 2022 earnings.
In it, American reported revenues of $8.9 billion, representing an impressive recovery to 84% of the revenue generated in the same period in 2019. In the same report, American shared its forecasts for the second quarter. Namely, the company expects revenues to grow by 6% to 8% compared to 2019. In fact, March has been the first month since the pandemic where its revenues surpassed 2019 levels. Besides that, capacity is forecasted to be approximately 92% to 94% of its second-quarter 2019 figures. All things considered, could you see AAL stock-taking off?
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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Travel Stocks To Watch Right Now Wynn Resorts Ltd. (NASDAQ: WYNN) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Booking Holdings Inc. (NASDAQ: BKNG) Avis Budget Group Inc. (NASDAQ: CAR) American Airlines Group Inc. (NASDAQ: AAL) Wynn Resorts Wynn Resorts is a developer and operator of high-end hotels and casinos. On top of that, AAL is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. All things considered, could you see AAL stock-taking off?
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Travel Stocks To Watch Right Now Wynn Resorts Ltd. (NASDAQ: WYNN) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Booking Holdings Inc. (NASDAQ: BKNG) Avis Budget Group Inc. (NASDAQ: CAR) American Airlines Group Inc. (NASDAQ: AAL) Wynn Resorts Wynn Resorts is a developer and operator of high-end hotels and casinos. On top of that, AAL is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. All things considered, could you see AAL stock-taking off?
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Travel Stocks To Watch Right Now Wynn Resorts Ltd. (NASDAQ: WYNN) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Booking Holdings Inc. (NASDAQ: BKNG) Avis Budget Group Inc. (NASDAQ: CAR) American Airlines Group Inc. (NASDAQ: AAL) Wynn Resorts Wynn Resorts is a developer and operator of high-end hotels and casinos. On top of that, AAL is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. All things considered, could you see AAL stock-taking off?
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Travel Stocks To Watch Right Now Wynn Resorts Ltd. (NASDAQ: WYNN) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Booking Holdings Inc. (NASDAQ: BKNG) Avis Budget Group Inc. (NASDAQ: CAR) American Airlines Group Inc. (NASDAQ: AAL) Wynn Resorts Wynn Resorts is a developer and operator of high-end hotels and casinos. On top of that, AAL is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. All things considered, could you see AAL stock-taking off?
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3538.0
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2022-05-16 00:00:00 UTC
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Botswana sees Russian diamond ban opening door to synthetic gems
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AAL
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https://www.nasdaq.com/articles/botswana-sees-russian-diamond-ban-opening-door-to-synthetic-gems
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nan
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nan
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GABORONE, May 16 (Reuters) - Botswana, Africa's top diamond producer, sees a prolonged ban on Russian diamonds opening the way for synthetic gems to expand market share, the country's minister told a mining conference on Monday.
The United States, the world largest market for natural diamonds, imposed sanctions on Russia's state-controlled Alrosa ALRS.MM in April, aiming to cut off a source of revenue for Moscow after its February invasion of Ukraine.
Alrosa, the world's largest producer of rough diamonds, accounted for about 30% of global output in 2021.
Botswana's Minister of Minerals and Energy Lefoko Moagi said the ban on Russia diamonds might push prices up to the benefit of rival producers but he also said the gap would be hard to fill.
"We see the 30% gap that will be left by the ban being plugged by something else that is not natural. And for us that will be a challenge," he said.
Jacob Thamage, head of Botswana's Diamond Hub, said uncertainty over the Ukraine conflict makes it difficult for Botswana and other natural diamond miners to fill the supply gap as ramping up operations requires significant investment.
"You don't want to invest a lot of money to up-scale and then the war ends the next day," Thamage said. "We also see the higher prices pushing consumers to substitutes such as the synthetics and this can cause problems for us if we cede the market to unnatural stones."
Sales at Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, accounts for almost all of Botswana diamonds exports. These stood at $3.466 billion in 2021 compared with $2.120 billion in 2020.
Thamage also fears that consumers might start to shun natural diamonds due to traceability issues.
"There is an increased fear that buyers of diamonds will begin to treat all natural diamonds as conflict diamonds and therefore shift to unnatural diamonds," he said.
(Reporting by Brian Benza, Editing by Nelson Banya and Jane Merriman)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sales at Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, accounts for almost all of Botswana diamonds exports. The United States, the world largest market for natural diamonds, imposed sanctions on Russia's state-controlled Alrosa ALRS.MM in April, aiming to cut off a source of revenue for Moscow after its February invasion of Ukraine. Botswana's Minister of Minerals and Energy Lefoko Moagi said the ban on Russia diamonds might push prices up to the benefit of rival producers but he also said the gap would be hard to fill.
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Sales at Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, accounts for almost all of Botswana diamonds exports. The United States, the world largest market for natural diamonds, imposed sanctions on Russia's state-controlled Alrosa ALRS.MM in April, aiming to cut off a source of revenue for Moscow after its February invasion of Ukraine. Alrosa, the world's largest producer of rough diamonds, accounted for about 30% of global output in 2021.
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Sales at Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, accounts for almost all of Botswana diamonds exports. GABORONE, May 16 (Reuters) - Botswana, Africa's top diamond producer, sees a prolonged ban on Russian diamonds opening the way for synthetic gems to expand market share, the country's minister told a mining conference on Monday. Jacob Thamage, head of Botswana's Diamond Hub, said uncertainty over the Ukraine conflict makes it difficult for Botswana and other natural diamond miners to fill the supply gap as ramping up operations requires significant investment.
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Sales at Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, accounts for almost all of Botswana diamonds exports. The United States, the world largest market for natural diamonds, imposed sanctions on Russia's state-controlled Alrosa ALRS.MM in April, aiming to cut off a source of revenue for Moscow after its February invasion of Ukraine. Botswana's Minister of Minerals and Energy Lefoko Moagi said the ban on Russia diamonds might push prices up to the benefit of rival producers but he also said the gap would be hard to fill.
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3539.0
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2022-05-13 00:00:00 UTC
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Airlines press U.S. to lift pre-departure testing requirements
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AAL
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https://www.nasdaq.com/articles/airlines-press-u.s.-to-lift-pre-departure-testing-requirements
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nan
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nan
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By David Shepardson
WASHINGTON, May 13 (Reuters) - U.S. airlines are pressing the Biden administration to lift a 16-month-old rule requiring nearly all international air passengers with some exceptions to test negative for COVID-19 before entering the country.
Airline executives say many Americans are not traveling internationally because of concerns they will test positive in a foreign country and then be stranded abroad. International U.S. air travel remains down about 15% from pre-pandemic levels.
Airlines for America, an industry group, said Friday a survey of its carriers estimated that dropping testing rules would bring in an additional 4.3 million international passengers and $1.7 billion in incremental revenue - and could result in an incremental 1.075 million foreign visitors and $2.1 billion in visitor spending.
Crain's Chicago Business reported Thursday that Transportation Secretary Pete Buttigieg said he did not think pre-departure rules "will be there forever" but added lifting them would require the Centers for Disease Control & Prevention (CDC) to be confident "relaxing it would not harm the progress that we’ve made against the virus."
CDC declined to comment.
Britain's Transport Secretary Grant Shapps told Reuters and other reporters in Washington on Thursday he discussed the issue with Buttigieg and some U.S. lawmakers.
Shapps said dropping requirements have boosted the British economy and not impacted COVID-19 cases.
"It works to get rid of it. It's been a massive boost for our tourism, travel industry," Shapps said.
He thinks the United States is moving toward lifting the rules, but U.S. officials offered no firm indications.
"My sense is that it's moving towards endgame. I think they realize that it needs to go," Shapps said. "My sense is that by the summer."
The United Kingdom, Germany, Canada and many other countries have eliminated pre-departure testing requirements for vaccinated travelers.
(Reporting by David Shepardson; editing by Bernard Orr)
((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, May 13 (Reuters) - U.S. airlines are pressing the Biden administration to lift a 16-month-old rule requiring nearly all international air passengers with some exceptions to test negative for COVID-19 before entering the country. Crain's Chicago Business reported Thursday that Transportation Secretary Pete Buttigieg said he did not think pre-departure rules "will be there forever" but added lifting them would require the Centers for Disease Control & Prevention (CDC) to be confident "relaxing it would not harm the progress that we’ve made against the virus." Britain's Transport Secretary Grant Shapps told Reuters and other reporters in Washington on Thursday he discussed the issue with Buttigieg and some U.S. lawmakers.
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By David Shepardson WASHINGTON, May 13 (Reuters) - U.S. airlines are pressing the Biden administration to lift a 16-month-old rule requiring nearly all international air passengers with some exceptions to test negative for COVID-19 before entering the country. Airlines for America, an industry group, said Friday a survey of its carriers estimated that dropping testing rules would bring in an additional 4.3 million international passengers and $1.7 billion in incremental revenue - and could result in an incremental 1.075 million foreign visitors and $2.1 billion in visitor spending. Britain's Transport Secretary Grant Shapps told Reuters and other reporters in Washington on Thursday he discussed the issue with Buttigieg and some U.S. lawmakers.
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By David Shepardson WASHINGTON, May 13 (Reuters) - U.S. airlines are pressing the Biden administration to lift a 16-month-old rule requiring nearly all international air passengers with some exceptions to test negative for COVID-19 before entering the country. Airlines for America, an industry group, said Friday a survey of its carriers estimated that dropping testing rules would bring in an additional 4.3 million international passengers and $1.7 billion in incremental revenue - and could result in an incremental 1.075 million foreign visitors and $2.1 billion in visitor spending. Crain's Chicago Business reported Thursday that Transportation Secretary Pete Buttigieg said he did not think pre-departure rules "will be there forever" but added lifting them would require the Centers for Disease Control & Prevention (CDC) to be confident "relaxing it would not harm the progress that we’ve made against the virus."
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By David Shepardson WASHINGTON, May 13 (Reuters) - U.S. airlines are pressing the Biden administration to lift a 16-month-old rule requiring nearly all international air passengers with some exceptions to test negative for COVID-19 before entering the country. Airline executives say many Americans are not traveling internationally because of concerns they will test positive in a foreign country and then be stranded abroad. "My sense is that it's moving towards endgame.
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3540.0
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2022-05-13 00:00:00 UTC
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Why Airline Stocks Are on the Rise Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-on-the-rise-today
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nan
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nan
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What happened
Stocks rallied on Friday, and airline stocks went along for the ride. Shares of American Airlines Group (NASDAQ: AAL) led the march higher, up as much as 7.5% in midday trading, and shares of United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all gained as much as 5% apiece.
So what
Wall Street ended a gloomy week with a ray of sunshine, with markets shooting higher on Friday after comments from Federal Reserve Chair Jerome Powell reaffirming the Fed's proactive but not panicked approach to rising levels of inflation. Markets are hoping for a so-called "soft landing," where the Fed is able to tame inflation without sending the economy into a recession.
Image source: Getty Images.
For airline stocks, the talk of a slowdown couldn't come at a worse time. The airlines were hit hard by the pandemic, and had hoped to use surging demand in 2022 to rebuild their balance sheets. Higher fuel and labor costs have already eaten into the recovery somewhat, but if inflation or an economic slowdown were to cause travelers to stay at home in the months to come that would at best push back the airline industry's rebound.
United also gave the sector a spark by announcing it has a new contract deal with its pilot union. A wave of buyouts and early retirements in the early days of the pandemic has left most airlines short-staffed, and gives pilots a lot of leverage heading to the bargaining table. Investors will hope that United's deal, which still needs to be ratified by membership, will pave the way for other carriers including Delta, American, and Southwest Airlines, which are currently in negotiations with their pilots unions.
Spirit and JetBlue are facing a different kind of face-off. On June 10, Spirit shareholders are scheduled to vote on the airline's proposed acquisition by Frontier Group Holdings. JetBlue has submitted a rival bid for Spirit that Spirit's board rejected due to antitrust concerns.
Now what
Friday's push higher was a rare respite for airline investors, but even after the jump this group of stocks is still all in the red for the year. The airlines are making a gradual recovery, but with headwinds including labor and fuel costs coupled with an uncertain economic situation there is likely only so much altitude to be gained right now.
For long-term, patient investors, there is likely opportunity here, but given the risks ahead investors should remain cautious. Top fliers like Delta and Southwest, with track records of recent outperformance in good times and bad, appear better positioned to recover sooner than some of the other names in the sector.
10 stocks we like better than Spirit Airlines
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Spirit Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 7, 2022
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) led the march higher, up as much as 7.5% in midday trading, and shares of United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all gained as much as 5% apiece. So what Wall Street ended a gloomy week with a ray of sunshine, with markets shooting higher on Friday after comments from Federal Reserve Chair Jerome Powell reaffirming the Fed's proactive but not panicked approach to rising levels of inflation. Higher fuel and labor costs have already eaten into the recovery somewhat, but if inflation or an economic slowdown were to cause travelers to stay at home in the months to come that would at best push back the airline industry's rebound.
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Shares of American Airlines Group (NASDAQ: AAL) led the march higher, up as much as 7.5% in midday trading, and shares of United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all gained as much as 5% apiece. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Shares of American Airlines Group (NASDAQ: AAL) led the march higher, up as much as 7.5% in midday trading, and shares of United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all gained as much as 5% apiece. 10 stocks we like better than Spirit Airlines When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines.
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Shares of American Airlines Group (NASDAQ: AAL) led the march higher, up as much as 7.5% in midday trading, and shares of United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all gained as much as 5% apiece. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Spirit Airlines wasn't one of them! See the 10 stocks *Stock Advisor returns as of April 7, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines.
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3541.0
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2022-05-13 00:00:00 UTC
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First Week of July 1st Options Trading For American Airlines Group (AAL)
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AAL
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https://www.nasdaq.com/articles/first-week-of-july-1st-options-trading-for-american-airlines-group-aal
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the July 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 1st contracts and identified one put and one call contract of particular interest.
The put contract at the $15.50 strike price has a current bid of $1.22. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $15.50, but will also collect the premium, putting the cost basis of the shares at $14.28 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $16.04/share today.
Because the $15.50 strike represents an approximate 3% 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 61%. 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 7.87% return on the cash commitment, or 58.63% 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 $15.50 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 $1.26. If an investor was to purchase shares of AAL stock at the current price level of $16.04/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 10.72% if the stock gets called away at the July 1st 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 3% 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 52%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.86% boost of extra return to the investor, or 58.51% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 66%, while the implied volatility in the call contract example is 65%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $16.04) to be 50%. 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 3% 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 July 1st 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 3% 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 July 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 1st 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 3% 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 July 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 1st 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 July 1st 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 $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 3% 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 July 1st expiration.
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3542.0
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2022-05-12 00:00:00 UTC
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Anglo American to return to Zambia with Arc Minerals copper deal
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AAL
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https://www.nasdaq.com/articles/anglo-american-to-return-to-zambia-with-arc-minerals-copper-deal
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nan
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nan
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By Helen Reid
CAPE TOWN, May 12 (Reuters) - Arc Minerals ARCMA.L said on Thursday that Anglo American AAL.L will take majority control of its Zambia copper-cobalt exploration licences. It marks the first new investment by Anglo in Zambia in 20 years.
Under the deal, which was first reported by Reuters, Anglo will take 70% of a joint venture with Arc that will own licenses to explore Zambia's copper-rich North-Western province, an area that Anglo previously explored in the late 1990s.
Major mining firms are searching for new sources of the battery metals copper and cobalt, especially in the wake of the war in Ukraine and sanctions on Russia which has sent metal prices soaring.
Anglo American will pay $3.5 million into the joint venture upon signing. It will be able to retain its stake by spending $74 million on exploration within seven years of signing and making cash payments of $11 million into the JV, according to terms of the deal.
Arc Minerals previously had an exclusivity agreement with Anglo from July 2020 to July 2021, and when that lapsed Arc Minerals said it would start talks with other major miners which had approached it.
Zambia, Africa's second-largest copper producer, has become a more attractive investment proposition for mining companies since the election last August of business-friendly President Hakainde Hichilema and a subsequent mining tax reform.
The country aims to more than triple its annual copper output within the next decade to 3 million tonnes a year.
(Reporting by Helen Reid; Additional reporting by Clara Denina; Editing by Christian Schmollinger and Edwina Gibbs)
((Helen.Reid@thomsonreuters.com; +27 66 156 5214;))
The views and 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 Helen Reid CAPE TOWN, May 12 (Reuters) - Arc Minerals ARCMA.L said on Thursday that Anglo American AAL.L will take majority control of its Zambia copper-cobalt exploration licences. The country aims to more than triple its annual copper output within the next decade to 3 million tonnes a year. (Reporting by Helen Reid; Additional reporting by Clara Denina; Editing by Christian Schmollinger and Edwina Gibbs) ((Helen.Reid@thomsonreuters.com; +27 66 156 5214;)) The views and 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 Helen Reid CAPE TOWN, May 12 (Reuters) - Arc Minerals ARCMA.L said on Thursday that Anglo American AAL.L will take majority control of its Zambia copper-cobalt exploration licences. Under the deal, which was first reported by Reuters, Anglo will take 70% of a joint venture with Arc that will own licenses to explore Zambia's copper-rich North-Western province, an area that Anglo previously explored in the late 1990s. Anglo American will pay $3.5 million into the joint venture upon signing.
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By Helen Reid CAPE TOWN, May 12 (Reuters) - Arc Minerals ARCMA.L said on Thursday that Anglo American AAL.L will take majority control of its Zambia copper-cobalt exploration licences. Under the deal, which was first reported by Reuters, Anglo will take 70% of a joint venture with Arc that will own licenses to explore Zambia's copper-rich North-Western province, an area that Anglo previously explored in the late 1990s. Arc Minerals previously had an exclusivity agreement with Anglo from July 2020 to July 2021, and when that lapsed Arc Minerals said it would start talks with other major miners which had approached it.
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By Helen Reid CAPE TOWN, May 12 (Reuters) - Arc Minerals ARCMA.L said on Thursday that Anglo American AAL.L will take majority control of its Zambia copper-cobalt exploration licences. It marks the first new investment by Anglo in Zambia in 20 years. It will be able to retain its stake by spending $74 million on exploration within seven years of signing and making cash payments of $11 million into the JV, according to terms of the deal.
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3543.0
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2022-05-12 00:00:00 UTC
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EXCLUSIVE-Anglo American to return to Zambia with Arc Minerals copper deal
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AAL
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https://www.nasdaq.com/articles/exclusive-anglo-american-to-return-to-zambia-with-arc-minerals-copper-deal
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nan
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nan
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By Helen Reid
CAPE TOWN, May 12 (Reuters) - Anglo American AAL.L has agreed a deal to take majority control of Arc Minerals' Zambia copper-cobalt exploration licences, a source with direct knowledge of the matter said, which is Anglo's first investment in Zambia in 20 years.
The joint venture deal would give Anglo a 70% interest in London-listed exploration firm Arc Minerals' ARCMA.L licenses in Zambia's copper-rich North-Western province, covering an area which Anglo previously explored in the late 1990s.
Major mining firms are searching for new sources of the battery metals copper and cobalt, especially since the war in Ukraine and sanctions on Russia sent metal prices soaring.
Anglo American will pay $3.5 million into the joint venture upon signing, and can retain its stake in the venture by spending $74 million on exploration within seven years of signing and making cash payments of $11 million into the JV, according to a draft of the deal terms reviewed by Reuters.
Anglo American declined to comment on the deal when contacted by Reuters.
An Arc Minerals spokesperson also declined to comment, saying Arc does not to comment on speculation.
Arc Minerals previously had an exclusivity agreement with Anglo from July 2020 to July 2021, and when that lapsed Arc Minerals said it would start talks with other major miners that had approached it.
Zambia, Africa's second-largest copper producer, has become a more attractive investment proposition for mining companies since the election last August of business-friendly President Hakainde Hichilema and a subsequent mining tax reform.
The country aims to more than triple its annual copper output within the next decade to 3 million tonnes a year.
(Reporting by Helen Reid; Additional reporting by Clara Denina; Editing by Christian Schmollinger)
((Helen.Reid@thomsonreuters.com; +27 66 156 5214;))
The views and 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 Helen Reid CAPE TOWN, May 12 (Reuters) - Anglo American AAL.L has agreed a deal to take majority control of Arc Minerals' Zambia copper-cobalt exploration licences, a source with direct knowledge of the matter said, which is Anglo's first investment in Zambia in 20 years. The joint venture deal would give Anglo a 70% interest in London-listed exploration firm Arc Minerals' ARCMA.L licenses in Zambia's copper-rich North-Western province, covering an area which Anglo previously explored in the late 1990s. The country aims to more than triple its annual copper output within the next decade to 3 million tonnes a year.
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By Helen Reid CAPE TOWN, May 12 (Reuters) - Anglo American AAL.L has agreed a deal to take majority control of Arc Minerals' Zambia copper-cobalt exploration licences, a source with direct knowledge of the matter said, which is Anglo's first investment in Zambia in 20 years. The joint venture deal would give Anglo a 70% interest in London-listed exploration firm Arc Minerals' ARCMA.L licenses in Zambia's copper-rich North-Western province, covering an area which Anglo previously explored in the late 1990s. Anglo American will pay $3.5 million into the joint venture upon signing, and can retain its stake in the venture by spending $74 million on exploration within seven years of signing and making cash payments of $11 million into the JV, according to a draft of the deal terms reviewed by Reuters.
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By Helen Reid CAPE TOWN, May 12 (Reuters) - Anglo American AAL.L has agreed a deal to take majority control of Arc Minerals' Zambia copper-cobalt exploration licences, a source with direct knowledge of the matter said, which is Anglo's first investment in Zambia in 20 years. The joint venture deal would give Anglo a 70% interest in London-listed exploration firm Arc Minerals' ARCMA.L licenses in Zambia's copper-rich North-Western province, covering an area which Anglo previously explored in the late 1990s. Anglo American will pay $3.5 million into the joint venture upon signing, and can retain its stake in the venture by spending $74 million on exploration within seven years of signing and making cash payments of $11 million into the JV, according to a draft of the deal terms reviewed by Reuters.
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By Helen Reid CAPE TOWN, May 12 (Reuters) - Anglo American AAL.L has agreed a deal to take majority control of Arc Minerals' Zambia copper-cobalt exploration licences, a source with direct knowledge of the matter said, which is Anglo's first investment in Zambia in 20 years. Anglo American will pay $3.5 million into the joint venture upon signing, and can retain its stake in the venture by spending $74 million on exploration within seven years of signing and making cash payments of $11 million into the JV, according to a draft of the deal terms reviewed by Reuters. Anglo American declined to comment on the deal when contacted by Reuters.
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3544.0
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2022-05-12 00:00:00 UTC
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Noteworthy Thursday Option Activity: SBUX, NEM, AAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-sbux-nem-aal
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Starbucks Corp. (Symbol: SBUX), where a total volume of 51,652 contracts has been traded thus far today, a contract volume which is representative of approximately 5.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44.1% of SBUX's average daily trading volume over the past month, of 11.7 million shares. Particularly high volume was seen for the $72.50 strike call option expiring May 13, 2022, with 9,205 contracts trading so far today, representing approximately 920,500 underlying shares of SBUX. Below is a chart showing SBUX's trailing twelve month trading history, with the $72.50 strike highlighted in orange:
Newmont Corp (Symbol: NEM) saw options trading volume of 29,878 contracts, representing approximately 3.0 million underlying shares or approximately 43.8% of NEM's average daily trading volume over the past month, of 6.8 million shares. Especially high volume was seen for the $75 strike call option expiring June 17, 2022, with 4,259 contracts trading so far today, representing approximately 425,900 underlying shares of NEM. Below is a chart showing NEM's trailing twelve month trading history, with the $75 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 170,363 contracts thus far today. That number of contracts represents approximately 17.0 million underlying shares, working out to a sizeable 42.9% of AAL's average daily trading volume over the past month, of 39.7 million shares. Especially high volume was seen for the $5 strike put option expiring January 20, 2023, with 14,077 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange:
For the various different available expirations for SBUX options, NEM options, or AAL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $5 strike put option expiring January 20, 2023, with 14,077 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing NEM's trailing twelve month trading history, with the $75 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 170,363 contracts thus far today. That number of contracts represents approximately 17.0 million underlying shares, working out to a sizeable 42.9% of AAL's average daily trading volume over the past month, of 39.7 million shares.
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Especially high volume was seen for the $5 strike put option expiring January 20, 2023, with 14,077 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing NEM's trailing twelve month trading history, with the $75 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 170,363 contracts thus far today. That number of contracts represents approximately 17.0 million underlying shares, working out to a sizeable 42.9% of AAL's average daily trading volume over the past month, of 39.7 million shares.
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That number of contracts represents approximately 17.0 million underlying shares, working out to a sizeable 42.9% of AAL's average daily trading volume over the past month, of 39.7 million shares. Below is a chart showing NEM's trailing twelve month trading history, with the $75 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 170,363 contracts thus far today. Especially high volume was seen for the $5 strike put option expiring January 20, 2023, with 14,077 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL.
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Especially high volume was seen for the $5 strike put option expiring January 20, 2023, with 14,077 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange: For the various different available expirations for SBUX options, NEM options, or AAL options, visit StockOptionsChannel.com. Below is a chart showing NEM's trailing twelve month trading history, with the $75 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 170,363 contracts thus far today.
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3545.0
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2022-05-12 00:00:00 UTC
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Is Airbnb a Buy Now?
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AAL
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https://www.nasdaq.com/articles/is-airbnb-a-buy-now
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nan
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nan
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Bear markets can seem unfair: Once the selling starts, fundamentals tend to be ignored, and share prices move lower.
This has been the case for Airbnb (NASDAQ: ABNB). The stock is down 45% from last year's high and lower by 30% year to date. Nevertheless, its fundamentals are not only rock-solid -- they're downright impressive.
So is now the time to buy this proverbial baby that's being thrown out with the bathwater?
Image source: Getty Images.
Airbnb just crushed first-quarter earnings
Simply put, Airbnb announced stellar first-quarter results on May 3, beating expectations on both the top and bottom lines. Revenue of $1.51 billion topped estimates of $1.45 billion, and the first-quarter loss of $0.03 per share was well ahead of the $0.29-per-share consensus.
The company reported over 102 million nights and experiences booked, an all-time high. Airbnb's average daily rate, a vital leisure industry metric, rose to $168, up 5% from a year earlier. The company is expanding on multiple fronts -- not only are overall nights booked rising, but the average rate for those stays is rising too.
What's more, the company provided upbeat guidance. Management indicated second-quarter revenue should fall between $2.03 billion and $2.13 billion. Wall Street analysts have noticed and scrambled to adjust their full-year earnings estimates higher. In fact, full-year 2022 earnings estimates have nearly doubled since three months ago.
TIME OF ESTIMATE FULL-YEAR 2022 FULL-YEAR 2023
Current $1.92 $2.49
7 days ago $1.27 $2.05
30 days ago $1.33 $2.04
60 days ago $1.34 $2.04
90 days ago $0.97 $1.67
Data source: YAHOO! Finance.
Airbnb is now the leading American travel site
One driving force behind Airbnb's outstanding earnings results is that the company continues to take market share from its competitors. As this chart shows, Airbnb is now the leading U.S. travel site with close to 5% of overall traffic.
Moreover, the company's "I'm Flexible" feature seems to be a game changer. Airbnb reports it has been used over two billion times since its introduction last year. The feature drives traffic to less popular locations -- helping to match guests and hosts more evenly across the platform and increase conversion (i.e., booking) rates.
Why Airbnb looks like a screaming buy right now
Bear markets can be scary. Some stocks are losing 50% or more of their value literally overnight. But for long-term investors, bear markets are a great time to buy good companies when they're oversold. Airbnb certainly seems to fit that mold.
Despite reporting excellent first-quarter results, shares are at all-time lows. That's a great time to load up on a company with a great business model, solid fundamentals, and a strong management team.
Find out why Airbnb, Inc. is one of the 10 best stocks to buy now
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Jake Lerch has positions in Airbnb, Inc. and American Airlines Group. The Motley Fool has positions in and recommends Airbnb, Inc. and TripAdvisor. The Motley Fool recommends 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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Bear markets can seem unfair: Once the selling starts, fundamentals tend to be ignored, and share prices move lower. The feature drives traffic to less popular locations -- helping to match guests and hosts more evenly across the platform and increase conversion (i.e., booking) rates. Find out why Airbnb, Inc. is one of the 10 best stocks to buy now Our award-winning analyst team has spent more than a decade beating the market.
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Current $1.92 $2.49 7 days ago $1.27 $2.05 30 days ago $1.33 $2.04 60 days ago $1.34 $2.04 90 days ago $0.97 $1.67 Data source: YAHOO! Airbnb is now the leading American travel site One driving force behind Airbnb's outstanding earnings results is that the company continues to take market share from its competitors. But for long-term investors, bear markets are a great time to buy good companies when they're oversold.
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Airbnb just crushed first-quarter earnings Simply put, Airbnb announced stellar first-quarter results on May 3, beating expectations on both the top and bottom lines. Airbnb is now the leading American travel site One driving force behind Airbnb's outstanding earnings results is that the company continues to take market share from its competitors. Find out why Airbnb, Inc. is one of the 10 best stocks to buy now Our award-winning analyst team has spent more than a decade beating the market.
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In fact, full-year 2022 earnings estimates have nearly doubled since three months ago. Airbnb reports it has been used over two billion times since its introduction last year. But for long-term investors, bear markets are a great time to buy good companies when they're oversold.
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3546.0
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2022-05-11 00:00:00 UTC
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Zacks.com featured highlights include Atlas Air Worldwide, American Airlines, Cross Country Healthcare, Avnet, and Clearwater Paper
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AAL
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-atlas-air-worldwide-american-airlines-cross-country
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For Immediate Release
Chicago, IL – May 11, 2022 – Stocks in this week’s article are Atlas Air Worldwide Holdings AAWW, AmericanAirlines AAL, CrossCountryHealthcare CCRN, Avnet AVT and Clearwater Paper CLW.
These 5 Broker-Friendly Stocks Can Withstand Market Storms
The U.S. equity markets have been extremely unpredictable of late, thanks to a wide range of concerns that kept investors on tenterhooks. Apart from global issues like the prolonged Russia-Ukraine war, steep oil price, spread of the coronavirus, especially in China, the sky-high domestic inflation and the resultant Fed Rate hike (with the possibility of more) rendered volatility to the stock market, causing a high degree of uncertainty eventually.
However, this ongoing unpredictability should not force investors to turn their backs on equities. He/she will always look for handsome returns, irrespective of the market upheavals. But then the question arises as to who should guide investors in designing a winning basket of stocks given that a universe of stocks from various industries glut the market at any point of time.
Adhering to broker advice is surely one of the most trusted ways to select a lucrative suite of stocks as brokers have in-depth knowledge of the surrounding markets. Investors are advised to keep broker-friendly stocks, such as Atlas Air Worldwide Holdings, AmericanAirlines, CrossCountryHealthcare, Avnet, and Clearwater Paper on their watchlist for healthy returns.
Why Broker Advice is Indispensable
Brokers go through minute details of the financial documents available in the public domain apart from attending company conference calls and other presentations. Since brokers study the stocks' movements under their coverage in great detail, they revise their earnings estimates after carefully weighing the pros and cons of an event for the concerned company. Estimate revisions are an important determinant of the stock price.
To take care of the earnings performance, we designed a screen based on improving analyst recommendations and northward estimate revisions over the last four weeks.
Do Not Ignore the Top Line
However, designing a strategy solely on the bottom-line basis is unlikely to result in a winning approach. Actually, according to many market watchers, a revenue beat is more credible for a company than a mere earnings outperformance. To address the top-line concerns, we included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
Here are five of the 10 stocks that passed the screen test
Atlas Air Worldwide Holdings is the parent company of Atlas Air and Polar Air Cargo, which together operate a fleet of freighter aircraft. AAWW is primarily involved in the airport-to-airport air transportation of heavy freight. Strong demand for air freight amid the coronavirus pandemic supports AAWW. The boom in e-commerce trends amid the current scenario is a catalyst.
Over the past 60 days, the AAWW stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 6.8% upward. Atlas Air currently carries a Zacks Rank #3 (Hold).
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 44.7% upward. AAL currently carries a Zacks Rank of 3.
Cross Country Healthcare is currently benefiting from the pandemic-induced rise in demand for healthcare staffing, investments in headcount and technology, and higher operational effectiveness. Digital transformation and operational efficiency are enabling CCRN to cater to the continuous buoyancy in demand in specialties, such as emergency room, operating room, labor, pediatrics, and delivery and medical-surgical services.
The Zacks Consensus Estimate for Cross Country Healthcare's 2022 earnings has been revised 66.3% upward in the past 60 days. Shares of CCRN have inched up 1.6% in a year's time. CCRN currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Avnet is benefiting from robust demand for its products across Asia, Europe, the Middle East, and Africa (EMEA) regions. Improvement in the Americas also served as a tailwind. Its continued focus on boosting the IoT capabilities is helping it expand in the newer markets and gain customers. Moreover, cost-saving efforts are aiding profitability.
Avnet, currently sporting a Zacks Rank of 1, has an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 21.2%. The AVT stock has appreciated 9.5% in a year's time.
Clearwater Paper is being aided by robust packaging demand. CLW's commitment to reducing debt levels and deploying a prudent capital structure provides ample liquidity. Continued focus on operational execution will drive margins.
The Zacks Consensus Estimate for Clearwater Paper's 2022 earnings has been revised 18.4% upward in the past 60 days. CLW, currently carrying a Zacks Rank #2 (Buy), has an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 37.8%.
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/1921679/swear-on-5-broker-friendly-stocks-to-weather-market-storms
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/performancefor information about the performance numbers displayed in this press release.
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Avnet, Inc. (AVT): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Clearwater Paper Corporation (CLW): Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN): Free Stock Analysis Report
Atlas Air Worldwide Holdings (AAWW): 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 – May 11, 2022 – Stocks in this week’s article are Atlas Air Worldwide Holdings AAWW, AmericanAirlines AAL, CrossCountryHealthcare CCRN, Avnet AVT and Clearwater Paper CLW. 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 44.7% upward.
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For Immediate Release Chicago, IL – May 11, 2022 – Stocks in this week’s article are Atlas Air Worldwide Holdings AAWW, AmericanAirlines AAL, CrossCountryHealthcare CCRN, Avnet AVT and Clearwater Paper CLW. 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 44.7% upward.
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Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 44.7% upward. For Immediate Release Chicago, IL – May 11, 2022 – Stocks in this week’s article are Atlas Air Worldwide Holdings AAWW, AmericanAirlines AAL, CrossCountryHealthcare CCRN, Avnet AVT and Clearwater Paper CLW. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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For Immediate Release Chicago, IL – May 11, 2022 – Stocks in this week’s article are Atlas Air Worldwide Holdings AAWW, AmericanAirlines AAL, CrossCountryHealthcare CCRN, Avnet AVT and Clearwater Paper CLW. 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 44.7% upward.
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3547.0
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2022-05-11 00:00:00 UTC
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COLUMN-Mining is key to the energy transition, but it's still unloved: Russell
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AAL
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https://www.nasdaq.com/articles/column-mining-is-key-to-the-energy-transition-but-its-still-unloved%3A-russell-0
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nan
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nan
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By Clyde Russell
CAPE TOWN, May 11 (Reuters) - Mining is probably the most vital sector to the global energy transition and the success of the much-vaunted net-zero carbon emissions by 2050 targets, but it's currently the laggard in the process.
The mining industry is largely at an inflection point insofar it knows its raw materials are the building blocks of the move from fossil fuels to clean energy, but it can't seem to convince the rest of world that this is the case.
The overwhelming message from miners, investors at two major mining conferences in South Africa this week is that the situation is urgent, and getting worse.
The challenges do seem pressing, given the vast volumes of copper, lithium, cobalt, nickel, zinc, manganese and graphite that will be required, and the limited plans to develop new mines to produce the metals needed.
The mining industry faces several issues that it needs to address, but still seems to be grappling with how to get its message across.
These include, how to convince investors that the real action in mitigating climate change has to be at the very start of the process, namely producing raw materials, rather than at the end, namely making electric cars and things like solar panels.
Once convinced, the battle then becomes to get investors to put capital into new mines, which are often located in challenging jurisdictions, and will take several years to return a profit.
Even if you can get that far, the process of dealing with governments is fraught, even in developed mining countries such as Australia.
There are a myriad of development and environmental approvals to be secured, and local communities to be consulted and won over, and then transport and logistical issues to be overcome.
And even if you can succeed to this point, the cost of developing new mines is rising at a faster pace that the price of the commodities they produce.
In other words, just because copper has traded this year at record highs above $10,000 a tonne doesn't mean that building a new copper mine is necessarily an economic no-brainer.
And finally, the mining industry has to battle its largely negative image problem, and its ongoing association with the climate bogeymen of coal miners.
Mines tend to be scars on the countryside, even well-managed and environmentally sound projects often look like blighted landscapes with large open pits, heavy vehicles, processing plants and tailings dams.
Investing in a shiny new Tesla motor car or a household battery wall unit looks far more attractive than a copper mine in Zambia or Indonesia.
Perhaps this explains why Tesla TSLA.O trades on a price-earnings ratio of about 106, while the world's biggest mining company BHP Group BHP.AX has a P/E ratio of 9.96 and peer Anglo American AAL.L has one of just 5.95.
The question for the mining industry, and the broader energy transition, is how does mining reverse the current lack of interest and urgency.
TOTAL CHANGE
It seems likely that commodity prices will have to remain at historically high prices, while being less volatile, in order to convince those with capital that the returns are viable.
Governments will have to do much more to speed up permitting and environmental approvals, and finally those with an interest in meeting the net-zero by 2050 will have to overcome their innate distaste of mining.
A panel of investors at the 121 Mining Conference in Cape Town this week saw speaker after speaker lament the lack of government urgency, the seeming lack of interest among the major mining companies to build new mines, the reluctance of banks to finance projects and the poor image of mining among green investors, notwithstanding how vital metals will be to the energy transition.
"We have to totally change the image of the mining industry," said Brian Menell, chief executive of investment company Techmet, adding that only this would serve to attract investors focused on environmental, social and governance (ESG) issues.
Lloyd Pengilly, chairman of Qora Capital, said there is a "quantum leap in demand" coming for battery metals that the industry is in no position to meet.
Taking graphite as an example, Pengilly said the currentglobal marketfor the battery anode component was about 1 million tonnes per annum, of which China controlled about 650,000 tonnes.
This needs to double to 2 million tonnes within five years in order to meet battery demand, but there are only a handful of graphite projects under development, and even if all proceed, which is unlikely, it still won't meet expected demand.
The message may be starting to get across, with South African President Cyril Ramaphosa delivering a mining-friendly address to the Mining Indaba event on Tuesday, pledging his government will fix transport infrastructure, electricity generation while making exploration and building mines easier.
However welcome the change in rhetoric may be, the words need to be followed with action to avoid a crunch of raw materials that threatens the intended pace of the energy transition.
(Editing by Stephen Coates)
((clyde.russell@thomsonreuters.com)(+61 437 622 448)(Reuters Messaging: clyde.russell.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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Perhaps this explains why Tesla TSLA.O trades on a price-earnings ratio of about 106, while the world's biggest mining company BHP Group BHP.AX has a P/E ratio of 9.96 and peer Anglo American AAL.L has one of just 5.95. By Clyde Russell CAPE TOWN, May 11 (Reuters) - Mining is probably the most vital sector to the global energy transition and the success of the much-vaunted net-zero carbon emissions by 2050 targets, but it's currently the laggard in the process. The mining industry is largely at an inflection point insofar it knows its raw materials are the building blocks of the move from fossil fuels to clean energy, but it can't seem to convince the rest of world that this is the case.
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Perhaps this explains why Tesla TSLA.O trades on a price-earnings ratio of about 106, while the world's biggest mining company BHP Group BHP.AX has a P/E ratio of 9.96 and peer Anglo American AAL.L has one of just 5.95. The overwhelming message from miners, investors at two major mining conferences in South Africa this week is that the situation is urgent, and getting worse. In other words, just because copper has traded this year at record highs above $10,000 a tonne doesn't mean that building a new copper mine is necessarily an economic no-brainer.
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Perhaps this explains why Tesla TSLA.O trades on a price-earnings ratio of about 106, while the world's biggest mining company BHP Group BHP.AX has a P/E ratio of 9.96 and peer Anglo American AAL.L has one of just 5.95. The question for the mining industry, and the broader energy transition, is how does mining reverse the current lack of interest and urgency. A panel of investors at the 121 Mining Conference in Cape Town this week saw speaker after speaker lament the lack of government urgency, the seeming lack of interest among the major mining companies to build new mines, the reluctance of banks to finance projects and the poor image of mining among green investors, notwithstanding how vital metals will be to the energy transition.
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Perhaps this explains why Tesla TSLA.O trades on a price-earnings ratio of about 106, while the world's biggest mining company BHP Group BHP.AX has a P/E ratio of 9.96 and peer Anglo American AAL.L has one of just 5.95. It seems likely that commodity prices will have to remain at historically high prices, while being less volatile, in order to convince those with capital that the returns are viable. A panel of investors at the 121 Mining Conference in Cape Town this week saw speaker after speaker lament the lack of government urgency, the seeming lack of interest among the major mining companies to build new mines, the reluctance of banks to finance projects and the poor image of mining among green investors, notwithstanding how vital metals will be to the energy transition.
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3548.0
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2022-05-11 00:00:00 UTC
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EMERGING MARKETS-Mexican peso rises on rate hike bets, Brazil real softens
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AAL
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https://www.nasdaq.com/articles/emerging-markets-mexican-peso-rises-on-rate-hike-bets-brazil-real-softens
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nan
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nan
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By Anisha Sircar and Shreyashi Sanyal
May 11 (Reuters) - Mexico's peso firmed on Wednesday ahead of a central bank decision later in the week, while Brazil's real gave back gains by afternoon trading following a high inflation reading.
The Mexican peso MXN= gained 0.5% before a monetary policy meeting by the central bank, also known as Banxico, on Thursday which is expected to hike its benchmark interest rate for the eighth consecutive time.
Central banks in emerging markets have raised rates significantly and in Latin American economies, policy has now reached restrictive territory and should help to moderate demand, Morgan Stanley researchers wrote in a note.
"Within Latin America, Mexico's peso should be a relative outperformer, supported by decent growth in the U.S. and an outperformance of oil versus base metals," the researchers added.
Brazil's real BRL=, BRBY was flat after rising as much as 0.8% after data showed inflation slowed in April but posted the steepest rise for the month in 26 years.
Inflationary pressures have led the central bank to signal another rate hike in June, after already raising rates to 12.75% from a 2% record low in March last year.
"We suspect that inflation will begin to fall back from this month," said William Jackson, chief emerging markets economist at Capital Economics, adding energy inflation should slow as a surge in commodity prices cool.
"But even so, the strength of price pressures is likely to keep policymakers at the central bank concerned."
Oil prices jumped more than 5% on Wednesday, buoyed by supply concerns as flows of Russian gas to Europe fell by a quarter. O/R
Chile's peso CLP=rose 0.6% against the dollar, tracking stronger copper prices as slowing COVID-19 infections in top metals consumer China eased near-term demand concerns. MET/L
MSCI's index of Latam currencies .MILA00000CUS firmed 0.7%, snapping four straight days in the red, as the dollar dipper.
Data showed U.S. inflation was unlikely to cause the Federal Reserve to adjust their aggressive path of monetary policy tightening. /FRX
Stocks in Latin America strengthened, with the Brazil's Bovespa index .BVSP up 1.3%. Miner Vale VALE3.SA and state-run oil firm Petrobras PETR4.SA boosted Sao Paulo stocks.
Brazilian carrier Gol Linhas Aereas Inteligentes SA GOLL4.SA and Colombia's Avianca AVT_p.CN said they were combining under the roof of a common holding company, signaling a move toward post-pandemic Latin American airline consolidation.
Key Latin American stock indexes and currencies at xxx GMT:
Stock indexes
Latest
Daily % change
MSCI Emerging Markets .MSCIEF
1011.22
0.4
MSCI LatAm .MILA00000PUS
2195.52
1.68
Brazil Bovespa .BVSP
104396.90
1.25
Mexico IPC .MXX
49276.72
0.33
Chile IPSA .SPIPSA
4676.39
-0.44
Argentina MerVal .MERV
85762.84
2.493
Colombia COLCAP .COLCAP
1509.00
-0.18
Currencies
Latest
Daily % change
Brazil real BRBY
5.1423
0.04
Mexico peso MXN=D2
20.3140
0.34
Chile peso CLP=CL
861.9
0.46
Colombia peso COP=
4076.7
-0.14
Peru sol PEN=PE
3.786
-0.03
Argentina peso (interbank) ARS=RASL
117.0800
-0.12
Argentina peso (parallel) ARSB=
202
0.00
(Reporting by Anisha Sircar and Shreyashi Sanyal in Bengaluru; Editing by Angus MacSwan and Alistair Bell)
((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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By Anisha Sircar and Shreyashi Sanyal May 11 (Reuters) - Mexico's peso firmed on Wednesday ahead of a central bank decision later in the week, while Brazil's real gave back gains by afternoon trading following a high inflation reading. Central banks in emerging markets have raised rates significantly and in Latin American economies, policy has now reached restrictive territory and should help to moderate demand, Morgan Stanley researchers wrote in a note. Brazilian carrier Gol Linhas Aereas Inteligentes SA GOLL4.SA and Colombia's Avianca AVT_p.CN said they were combining under the roof of a common holding company, signaling a move toward post-pandemic Latin American airline consolidation.
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By Anisha Sircar and Shreyashi Sanyal May 11 (Reuters) - Mexico's peso firmed on Wednesday ahead of a central bank decision later in the week, while Brazil's real gave back gains by afternoon trading following a high inflation reading. Central banks in emerging markets have raised rates significantly and in Latin American economies, policy has now reached restrictive territory and should help to moderate demand, Morgan Stanley researchers wrote in a note. Key Latin American stock indexes and currencies at xxx GMT: Stock indexes Latest Daily % change MSCI Emerging Markets .MSCIEF 1011.22 0.4 MSCI LatAm .MILA00000PUS 2195.52 1.68 Brazil Bovespa .BVSP 104396.90 1.25 Mexico IPC .MXX 49276.72 0.33 Chile IPSA .SPIPSA 4676.39 -0.44 Argentina MerVal .MERV 85762.84 2.493 Colombia COLCAP .COLCAP 1509.00 -0.18 Currencies Latest Daily % change Brazil real BRBY 5.1423 0.04 Mexico peso MXN=D2 20.3140 0.34 Chile peso CLP=CL 861.9 0.46 Colombia peso COP= 4076.7 -0.14 Peru sol PEN=PE 3.786 -0.03 Argentina peso (interbank) ARS=RASL 117.0800 -0.12 Argentina peso (parallel) ARSB= 202 0.00 (Reporting by Anisha Sircar and Shreyashi Sanyal in Bengaluru; Editing by Angus MacSwan and Alistair Bell) ((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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By Anisha Sircar and Shreyashi Sanyal May 11 (Reuters) - Mexico's peso firmed on Wednesday ahead of a central bank decision later in the week, while Brazil's real gave back gains by afternoon trading following a high inflation reading. Central banks in emerging markets have raised rates significantly and in Latin American economies, policy has now reached restrictive territory and should help to moderate demand, Morgan Stanley researchers wrote in a note. Key Latin American stock indexes and currencies at xxx GMT: Stock indexes Latest Daily % change MSCI Emerging Markets .MSCIEF 1011.22 0.4 MSCI LatAm .MILA00000PUS 2195.52 1.68 Brazil Bovespa .BVSP 104396.90 1.25 Mexico IPC .MXX 49276.72 0.33 Chile IPSA .SPIPSA 4676.39 -0.44 Argentina MerVal .MERV 85762.84 2.493 Colombia COLCAP .COLCAP 1509.00 -0.18 Currencies Latest Daily % change Brazil real BRBY 5.1423 0.04 Mexico peso MXN=D2 20.3140 0.34 Chile peso CLP=CL 861.9 0.46 Colombia peso COP= 4076.7 -0.14 Peru sol PEN=PE 3.786 -0.03 Argentina peso (interbank) ARS=RASL 117.0800 -0.12 Argentina peso (parallel) ARSB= 202 0.00 (Reporting by Anisha Sircar and Shreyashi Sanyal in Bengaluru; Editing by Angus MacSwan and Alistair Bell) ((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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Inflationary pressures have led the central bank to signal another rate hike in June, after already raising rates to 12.75% from a 2% record low in March last year. "But even so, the strength of price pressures is likely to keep policymakers at the central bank concerned." Key Latin American stock indexes and currencies at xxx GMT: Stock indexes Latest Daily % change MSCI Emerging Markets .MSCIEF 1011.22 0.4 MSCI LatAm .MILA00000PUS 2195.52 1.68 Brazil Bovespa .BVSP 104396.90 1.25 Mexico IPC .MXX 49276.72 0.33 Chile IPSA .SPIPSA 4676.39 -0.44 Argentina MerVal .MERV 85762.84 2.493 Colombia COLCAP .COLCAP 1509.00 -0.18 Currencies Latest Daily % change Brazil real BRBY 5.1423 0.04 Mexico peso MXN=D2 20.3140 0.34 Chile peso CLP=CL 861.9 0.46 Colombia peso COP= 4076.7 -0.14 Peru sol PEN=PE 3.786 -0.03 Argentina peso (interbank) ARS=RASL 117.0800 -0.12 Argentina peso (parallel) ARSB= 202 0.00 (Reporting by Anisha Sircar and Shreyashi Sanyal in Bengaluru; Editing by Angus MacSwan and Alistair Bell) ((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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3549.0
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2022-05-10 00:00:00 UTC
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U.S. FAA shifts gears on certifying future 'flying taxi' pilots
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-shifts-gears-on-certifying-future-flying-taxi-pilots
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nan
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nan
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By David Shepardson
WASHINGTON, May 10 (Reuters) - The Federal Aviation Administration (FAA) said Tuesday it had shifted course on its approach to approving pilots of future electric vertical takeoff and landing aircraft (eVTOL) but does not expect it would delay certification or operational approvals.
The eVTOL aircraft have been touted as air taxis that could be the future of urban air mobility. The low-altitude urban air mobility aircraft has drawn a huge amount of interest around the world as numerous eVTOL companies have gone public.
The FAA said in a statement it would pursue "a predictable framework that will better accommodate the need to train and certify the pilots who will operate these novel aircraft. "The flexibility, the FAA added, "will eliminate the need for special conditions and exemptions.
The FAA said it was modifying its regulatory approach because regulations designed for traditional airplanes and helicopters "did not anticipate the need to train pilots to operate powered-lift, which take off in helicopter mode, transition into airplane mode for flying, and then transition back to helicopter mode for landing."
Pete Bunce, who heads the General Aviation Manufacturers Association (GAMA), said in an email the FAA decision is "in our minds detrimental to safety, and increases the workload on the FAA dramatically. This is bad policy for so many reasons."
Many eVTOL startups are backed by major airlines or other large companies. Toyota Motor Corp has a stake in Joby Aviation JOBY.N, Archer Aviation ACHR.N is backed by United Airlines UAL.O and Stellantis NV STLA.MI, while Vertical Aerospace EVTL.N - a Bristol-UK-based manufacturer - is backed by investors such as American Airlines Group Inc AAL.O and Honeywell International Inc HON.O.
Joby is targeting the launch of its aerial ridesharing service in 2024.
The FAA said its process "for certifying the aircraft themselves remains unchanged. All of the development work done by current applicants remains valid and the changes in our regulatory approach should not delay their projects."
The Air Current reported the shift earlier.
The FAA briefed Congress on the issue on April 29, and the Transportation Department's Office of Inspector General said in March it would review the basis for certification of eVTOLs.
(Reporting by David Shepardsonl; editing by Bernard Orr)
((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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Toyota Motor Corp has a stake in Joby Aviation JOBY.N, Archer Aviation ACHR.N is backed by United Airlines UAL.O and Stellantis NV STLA.MI, while Vertical Aerospace EVTL.N - a Bristol-UK-based manufacturer - is backed by investors such as American Airlines Group Inc AAL.O and Honeywell International Inc HON.O. The low-altitude urban air mobility aircraft has drawn a huge amount of interest around the world as numerous eVTOL companies have gone public. The FAA said in a statement it would pursue "a predictable framework that will better accommodate the need to train and certify the pilots who will operate these novel aircraft.
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Toyota Motor Corp has a stake in Joby Aviation JOBY.N, Archer Aviation ACHR.N is backed by United Airlines UAL.O and Stellantis NV STLA.MI, while Vertical Aerospace EVTL.N - a Bristol-UK-based manufacturer - is backed by investors such as American Airlines Group Inc AAL.O and Honeywell International Inc HON.O. By David Shepardson WASHINGTON, May 10 (Reuters) - The Federal Aviation Administration (FAA) said Tuesday it had shifted course on its approach to approving pilots of future electric vertical takeoff and landing aircraft (eVTOL) but does not expect it would delay certification or operational approvals. The low-altitude urban air mobility aircraft has drawn a huge amount of interest around the world as numerous eVTOL companies have gone public.
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Toyota Motor Corp has a stake in Joby Aviation JOBY.N, Archer Aviation ACHR.N is backed by United Airlines UAL.O and Stellantis NV STLA.MI, while Vertical Aerospace EVTL.N - a Bristol-UK-based manufacturer - is backed by investors such as American Airlines Group Inc AAL.O and Honeywell International Inc HON.O. By David Shepardson WASHINGTON, May 10 (Reuters) - The Federal Aviation Administration (FAA) said Tuesday it had shifted course on its approach to approving pilots of future electric vertical takeoff and landing aircraft (eVTOL) but does not expect it would delay certification or operational approvals. The FAA said it was modifying its regulatory approach because regulations designed for traditional airplanes and helicopters "did not anticipate the need to train pilots to operate powered-lift, which take off in helicopter mode, transition into airplane mode for flying, and then transition back to helicopter mode for landing."
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Toyota Motor Corp has a stake in Joby Aviation JOBY.N, Archer Aviation ACHR.N is backed by United Airlines UAL.O and Stellantis NV STLA.MI, while Vertical Aerospace EVTL.N - a Bristol-UK-based manufacturer - is backed by investors such as American Airlines Group Inc AAL.O and Honeywell International Inc HON.O. The eVTOL aircraft have been touted as air taxis that could be the future of urban air mobility. The FAA said in a statement it would pursue "a predictable framework that will better accommodate the need to train and certify the pilots who will operate these novel aircraft.
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3550.0
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2022-05-10 00:00:00 UTC
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Best Stocks To Invest In 2022? 3 Leisure Stocks To Know
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AAL
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https://www.nasdaq.com/articles/best-stocks-to-invest-in-2022-3-leisure-stocks-to-know
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nan
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nan
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3 Leisure Stocks To Have On Your 2022 Radar
Leisure stocks appear to be among the most active stocks in the stock market today. By and large, this is apparent as some of the top names in the industry continue to report solid earnings. On one hand, you have the travel industry seeing a resurgence in consumer demand despite rising prices. The likes of which are due to ongoing energy supply constraints. Take American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) for instance. Both firms reported year-over-year revenue jumps of over 122% in their respective quarterly releases last month. Also, these two airline industry goliaths are projecting a return to profit by the end of the current year.
At the same time, we have car rental companies such as Vroom (NASDAQ: VRM) and Avis Budget Group (NASDAQ: CAR) continue to impress as well. This seems to be the case as travel-hungry consumers look towards more domestic vacation options as well. Not to mention, even the in-person entertainment scene continues to gain momentum. Evidently, AMC Entertainment (NYSE: AMC) is turning heads in the stock market now thanks to its latest quarterly earnings. This would be thanks to the cinema chain operator topping consensus analyst estimates at the top and bottom lines. Year-over-year, the company’s total revenue is up by a whopping 429%, signaling its ongoing recovery from the pandemic.
Across the board, it seems that consumers are intent on returning to their favorite leisure activities. Be it traveling, in-person entertainment variety, or any combination of the two, this is increasingly evident. With all that said, you might be keen to know the top leisure stocks around. Here are three making headlines now.
Best Leisure Stocks To Invest [Or Avoid] In 2022
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
Hilton Grand Vacations Inc. (NYSE: HGV)
Marriott International Inc. (NASDAQ: MAR)
Norwegian Cruise Line Holdings Ltd.
Starting us off today, we have Norwegian Cruise Line, one of the largest cruise lines in the world. It operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It boasts a combined fleet of 28 ships with nearly 60,000 berths, these brands offer itineraries to more than 490 destinations worldwide. Furthermore, the company has nine additional ships scheduled for delivery until 2027. Today, the company reported its first-quarter financials and provided a business update.
Diving in, the company announced that it has become the first major cruise operator to return its entire fleet back to service. Total revenue increased to $521.9 million compared to $3.1 million in 2021 due to the resumption of its cruises. Furthermore, the company also says that its operating cash flow was slightly positive in March and it continues to see pricing strength for all future periods. The company’s advance ticket sales balance, including the long-term portion, increased from $418 million in the quarter to $2.2 billion as of March 31, 2022.
“Last week we reached the biggest milestone yet in our Great Cruise Comeback as Norwegian Spirit, the last ship in our fleet to resume sailing, welcomed guests onboard in Papeete, Tahiti. The herculean effort to restart our fleet would not have been possible without the incredible fortitude of the entire Norwegian team and the unwavering support of our key partners and stakeholders around the world,” said Frank Del Rio, president, and chief executive officer of Norwegian Cruise Line Holdings Ltd. The company also says that its strategy ahead is to ramp up occupancy in a disciplined manner to exceed historical net yield levels for the full-year 2023. All things considered, is NCLH stock worth investing in right now?
Source: TD Ameritrade TOS
[Read More] What Are The Best Stocks To Invest In? 4 Lithium Stocks To Know
Hilton Grand Vacations Inc.
Hilton Grand Vacations is a leading global timeshare company. It operates a system of brand-name, high-quality vacation ownership resorts. The company has a reputation for delivering a consistently exceptional standard of service and provides unforgettable vacation experiences for guests and more than 710,000 owners. On May 9, 2022, the company also reported its first-quarter financials. HGV stock is up by over 7% on Tuesday’s afternoon trading session.
Firstly, the company reported total revenue of $779 million for the first quarter, compared to $235 million a year earlier. Secondly, net income for the quarter was $51 million compared to a loss of $7 million year-over-year. Diluted earnings per share for the quarter were $0.42. Member count increased for the seventh straight quarter as well according to the company. For the company’s full-year 2022 outlook, it is raising its Deferral Adjusted EBITDA range from $960 million to $990 million, from the prior range of $915 million to $935 million.
Hilton Grand Vacations also say that its EBITDA and margins are well ahead of its 2019 Pro-forma combined levels. Its diligent integration efforts have also enabled it to identify additional cost synergies from its Diamond Resorts International acquisition. Given this piece of news, is HGV stock worth adding to your portfolio?
Source: TD Ameritrade TOS
[Read More] Top Liquefied Natural Gas Stocks To Buy Now? 4 Names To Know
Marriott International Inc.
Another name to consider in the global leisure industry now would be Marriott International. In brief, the company operates a massive hospitality portfolio consisting of over 8,000 properties throughout its 30 industry-leading brands. This network of leisure businesses spans 139 countries and territories worldwide. As one of the leading names in the hospitality space, Marriott could be another go-to for investors now. In turn, this would put MAR stock on their radars as well.
For one thing, the company’s latest financial update from last week could also be worth considering. For its first fiscal quarter, Marriott saw its 2022 comparable systemwide constant dollar Revenue per Available Room (RevPAR) surge 96.5% year-over-year worldwide. In the U.S. and Canada, this figure currently sits at 99.1%. On top of that, the company is also looking at earnings of $1.14 per share for the quarter. This is leaps and bounds above its loss of $0.03 in the same quarter last year.
Providing an overview of Marriott’s performance for the first quarter is CEO Anthony Capuano. He notes that the company saw the “largest surge in global demand since the pandemic began.” Looking forward, Capuano also adds that Marriott expects the robust demand trends from April to persist with cross-border travel gaining momentum. All in all, with Marriott seemingly firing on all cylinders now, would MAR stock be a top pick in your book?
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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Take American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) for instance. “Last week we reached the biggest milestone yet in our Great Cruise Comeback as Norwegian Spirit, the last ship in our fleet to resume sailing, welcomed guests onboard in Papeete, Tahiti. For its first fiscal quarter, Marriott saw its 2022 comparable systemwide constant dollar Revenue per Available Room (RevPAR) surge 96.5% year-over-year worldwide.
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Take American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) for instance. Best Leisure Stocks To Invest [Or Avoid] In 2022 Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Hilton Grand Vacations Inc. (NYSE: HGV) Marriott International Inc. (NASDAQ: MAR) Norwegian Cruise Line Holdings Ltd. 4 Lithium Stocks To Know Hilton Grand Vacations Inc. Hilton Grand Vacations is a leading global timeshare company.
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Take American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) for instance. 3 Leisure Stocks To Have On Your 2022 Radar Leisure stocks appear to be among the most active stocks in the stock market today. Best Leisure Stocks To Invest [Or Avoid] In 2022 Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Hilton Grand Vacations Inc. (NYSE: HGV) Marriott International Inc. (NASDAQ: MAR) Norwegian Cruise Line Holdings Ltd.
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Take American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) for instance. 3 Leisure Stocks To Have On Your 2022 Radar Leisure stocks appear to be among the most active stocks in the stock market today. Best Leisure Stocks To Invest [Or Avoid] In 2022 Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Hilton Grand Vacations Inc. (NYSE: HGV) Marriott International Inc. (NASDAQ: MAR) Norwegian Cruise Line Holdings Ltd.
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3551.0
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2022-05-10 00:00:00 UTC
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The Math Shows IVE Can Go To $176
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AAL
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https://www.nasdaq.com/articles/the-math-shows-ive-can-go-to-%24176
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares S&P 500 Value ETF (Symbol: IVE), we found that the implied analyst target price for the ETF based upon its underlying holdings is $175.55 per unit.
With IVE trading at a recent price near $145.04 per unit, that means that analysts see 21.04% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IVE's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Quanta Services, Inc. (Symbol: PWR), and Mosaic Co (Symbol: MOS). Although AAL has traded at a recent price of $16.32/share, the average analyst target is 28.68% higher at $21.00/share. Similarly, PWR has 26.45% upside from the recent share price of $109.83 if the average analyst target price of $138.88/share is reached, and analysts on average are expecting MOS to reach a target price of $70.54/share, which is 26.28% above the recent price of $55.86. Below is a twelve month price history chart comparing the stock performance of AAL, PWR, and MOS:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares S&P 500 Value ETF IVE $145.04 $175.55 21.04%
American Airlines Group Inc AAL $16.32 $21.00 28.68%
Quanta Services, Inc. PWR $109.83 $138.88 26.45%
Mosaic Co MOS $55.86 $70.54 26.28%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although AAL has traded at a recent price of $16.32/share, the average analyst target is 28.68% higher at $21.00/share. iShares S&P 500 Value ETF IVE $145.04 $175.55 21.04% American Airlines Group Inc AAL $16.32 $21.00 28.68% Quanta Services, Inc. PWR $109.83 $138.88 26.45% Mosaic Co MOS $55.86 $70.54 26.28% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IVE's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Quanta Services, Inc. (Symbol: PWR), and Mosaic Co (Symbol: MOS).
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Three of IVE's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Quanta Services, Inc. (Symbol: PWR), and Mosaic Co (Symbol: MOS). iShares S&P 500 Value ETF IVE $145.04 $175.55 21.04% American Airlines Group Inc AAL $16.32 $21.00 28.68% Quanta Services, Inc. PWR $109.83 $138.88 26.45% Mosaic Co MOS $55.86 $70.54 26.28% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although AAL has traded at a recent price of $16.32/share, the average analyst target is 28.68% higher at $21.00/share.
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Three of IVE's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Quanta Services, Inc. (Symbol: PWR), and Mosaic Co (Symbol: MOS). Although AAL has traded at a recent price of $16.32/share, the average analyst target is 28.68% higher at $21.00/share. Below is a twelve month price history chart comparing the stock performance of AAL, PWR, and MOS: Below is a summary table of the current analyst target prices discussed above:
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iShares S&P 500 Value ETF IVE $145.04 $175.55 21.04% American Airlines Group Inc AAL $16.32 $21.00 28.68% Quanta Services, Inc. PWR $109.83 $138.88 26.45% Mosaic Co MOS $55.86 $70.54 26.28% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IVE's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Quanta Services, Inc. (Symbol: PWR), and Mosaic Co (Symbol: MOS). Although AAL has traded at a recent price of $16.32/share, the average analyst target is 28.68% higher at $21.00/share.
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3552.0
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2022-05-10 00:00:00 UTC
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Swear on 5 Broker-Friendly Stocks to Weather Market Storms
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AAL
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https://www.nasdaq.com/articles/swear-on-5-broker-friendly-stocks-to-weather-market-storms
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nan
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nan
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The U.S. equity markets have been extremely unpredictable of late, thanks to a wide range of concerns that kept investors on tenterhooks. Apart from global issues like the prolonged Russia-Ukraine war, steep oil price, spread of the coronavirus, especially in China, the sky-high domestic inflation and the resultant Fed Rate hike (with the possibility of more) rendered volatility to the stock market, causing a high degree of uncertainty eventually.
However, this ongoing unpredictability should not force investors to turn their backs on equities. He/she will always look for handsome returns, irrespective of the market upheavals. But then the question arises as to who should guide investors in designing a winning basket of stocks given that a universe of stocks from various industries glut the market at any point of time.
Adhering to broker advice is surely one of the most trusted ways to select a lucrative suite of stocks as brokers have in-depth knowledge of the surrounding markets. Investors are advised to keep broker-friendly stocks, such as Atlas Air Worldwide Holdings AAWW, American Airlines AAL, Cross Country Healthcare CCRN, Avnet (AVT) and Clearwater Paper CLW on their watchlist for healthy returns.
Why Broker Advice is Indispensable
Brokers go through minute details of the financial documents available in the public domain apart from attending company conference calls and other presentations. Since brokers study the stocks’ movements under their coverage in great detail, they revise their earnings estimates after carefully weighing the pros and cons of an event for the concerned company. Estimate revisions are an important determinant of the stock price.
To take care of the earnings performance, we designed a screen based on improving analyst recommendations and northward estimate revisions over the last four weeks.
Do Not Ignore the Top Line
However, designing a strategy solely on the bottom-line basis is unlikely to result in a winning approach. Actually, according to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance. To address the top-line concerns, we included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
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 passed the screen test
Atlas Air Worldwide Holdings is the parent company of Atlas Air and Polar Air Cargo, which together operate a fleet of freighter aircraft. AAWW is primarily involved in the airport-to-airport air transportation of heavy freight. Strong demand for air freight amid the coronavirus pandemic supports AAWW. The boom in e-commerce trends amid the current scenario is a catalyst.
Over the past 60 days, the AAWW stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 6.8% upward. Atlas Air currently carries a Zacks Rank #3 (Hold).
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 44.7% upward. AAL currently carries a Zacks Rank of 3.
Cross Country Healthcare is currently benefiting from the pandemic-induced rise in demand for healthcare staffing, investments in headcount and technology, and higher operational effectiveness. Digital transformation and operational efficiency are enabling CCRN to cater to the continuous buoyancy in demand in specialties, such as emergency room, operating room, labor, pediatrics, and delivery and medical-surgical services.
The Zacks Consensus Estimate for Cross Country Healthcare’s 2022 earnings has been revised 66.3% upward in the past 60 days. Shares of CCRN have inched up 1.6% in a year’s time. CCRN currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Avnet is benefiting from robust demand for its products across Asia, Europe, the Middle East, and Africa (EMEA) regions. Improvement in the Americas also served as a tailwind. Its continued focus on boosting the IoT capabilities is helping it expand in the newer markets and gain customers. Moreover, cost-saving efforts are aiding profitability.
Avnet, currently sporting a Zacks Rank of 1, has an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 21.2%. The AVT stock has appreciated 9.5% in a year’s time.
Clearwater Paper is being aided by robust packaging demand. CLW’s commitment to reducing debt levels and deploying a prudent capital structure provides ample liquidity. Continued focus on operational execution will drive margins.
The Zacks Consensus Estimate for Clearwater Paper’s 2022 earnings has been revised 18.4% upward in the past 60 days. CLW, currently carrying a Zacks Rank #2 (Buy), has an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 37.8%.
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.
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.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks 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
Avnet, Inc. (AVT): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Clearwater Paper Corporation (CLW): Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN): Free Stock Analysis Report
Atlas Air Worldwide Holdings (AAWW): 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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Investors are advised to keep broker-friendly stocks, such as Atlas Air Worldwide Holdings AAWW, American Airlines AAL, Cross Country Healthcare CCRN, Avnet (AVT) and Clearwater Paper CLW on their watchlist for healthy returns. 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 44.7% upward.
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Investors are advised to keep broker-friendly stocks, such as Atlas Air Worldwide Holdings AAWW, American Airlines AAL, Cross Country Healthcare CCRN, Avnet (AVT) and Clearwater Paper CLW on their watchlist for healthy returns. 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 44.7% upward.
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Investors are advised to keep broker-friendly stocks, such as Atlas Air Worldwide Holdings AAWW, American Airlines AAL, Cross Country Healthcare CCRN, Avnet (AVT) and Clearwater Paper CLW on their watchlist for healthy returns. Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 44.7% upward. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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Investors are advised to keep broker-friendly stocks, such as Atlas Air Worldwide Holdings AAWW, American Airlines AAL, Cross Country Healthcare CCRN, Avnet (AVT) and Clearwater Paper CLW on their watchlist for healthy returns. 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 44.7% upward.
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3553.0
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2022-05-09 00:00:00 UTC
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Why Airline Shares Are Down Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-down-today
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nan
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nan
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What happened
Monday is another rough day for the markets, and airline stocks are getting caught up in the downdraft. Shares of Spirit Airlines (NYSE: SAVE) traded down as much as 9%, as of 1:36 p.m. ET, and shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) were each down 5% or more.
So what
Fear is in control on Wall Street right now, with the S&P 500 falling more than 2% intraday and hitting its lows for the year. Investors are worried the Federal Reserve's effort to combat inflation will lead to an economic slowdown. There are also reports of localized surges in new COVID-19 cases, a reminder that the pandemic is not yet behind us.
Image source: Getty Images.
For airline stocks, the uncertainty could not come at a worse time. The industry was hit hard by the pandemic, and had hoped to use strong 2022 summer tourism demand to replenish cash reserves and make progress toward normalizing schedules. High fuel and labor costs were already eating into the bull thesis, and adding fears of a recession and a new round of lockdowns have airlines falling faster than the overall market.
Just a few weeks ago airlines were flying high on earnings season commentary that demand into the summer months was holding up well. But if the Fed can't induce a soft landing it is unclear whether those gains will be sustainable.
Spirit is likely under increased pressure because the airline also has merger and acquisition uncertainty lingering over it. The airline was the subject of a bidding war between JetBlue and Frontier Group Holdings. Spirit's board favors Frontier due to the perceived higher antitrust risk in the JetBlue bid, but JetBlue is offering a significant premium compared to Frontier's offer. And Frontier's offer is mostly stock, meaning the value is decreasing along with share prices.
Now what
Investors hate uncertainty, and airlines are providing plenty to be uncertain about right now. It is worth noting that the reason the Fed is getting aggressive is the economy appears strong, so there should be some wiggle room before spending falls off a cliff. And although the pandemic remains a threat, consumers have increasingly taken to the skies even when cases are higher.
The airlines should have the wherewithal to weather new turbulence, but the timetable for a recovery keeps getting stretched further out. Given the heightened uncertainty, and how long it might take for airlines to fully benefit from a recovery, airline investors appear content to deplane and watch how the airlines fly through this rough patch from the ground.
10 stocks we like better than Spirit Airlines
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*Stock Advisor returns as of April 7, 2022
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 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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ET, and shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) were each down 5% or more. The industry was hit hard by the pandemic, and had hoped to use strong 2022 summer tourism demand to replenish cash reserves and make progress toward normalizing schedules. High fuel and labor costs were already eating into the bull thesis, and adding fears of a recession and a new round of lockdowns have airlines falling faster than the overall market.
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ET, and shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) were each down 5% or more. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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ET, and shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) were each down 5% or more. Given the heightened uncertainty, and how long it might take for airlines to fully benefit from a recovery, airline investors appear content to deplane and watch how the airlines fly through this rough patch from the ground. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines.
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ET, and shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) were each down 5% or more. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Spirit Airlines wasn't one of them!
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3554.0
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2022-05-09 00:00:00 UTC
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First Week of June 24th Options Trading For American Airlines Group (AAL)
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AAL
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https://www.nasdaq.com/articles/first-week-of-june-24th-options-trading-for-american-airlines-group-aal
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the June 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 24th contracts and identified one put and one call contract of particular interest.
The put contract at the $17.00 strike price has a current bid of $1.41. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $17.00, but will also collect the premium, putting the cost basis of the shares at $15.59 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $17.12/share today.
Because the $17.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 55%. 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 8.29% return on the cash commitment, or 65.81% 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 $17.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $17.50 strike price has a current bid of $1.31. If an investor was to purchase shares of AAL stock at the current price level of $17.12/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $17.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.87% if the stock gets called away at the June 24th 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 $17.50 strike highlighted in red:
Considering the fact that the $17.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 51%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.65% boost of extra return to the investor, or 60.72% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example, as well as the call contract example, are both approximately 63%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $17.12) to be 50%. 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 $17.50 strike highlighted in red: Considering the fact that the $17.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the June 24th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $17.50 strike highlighted in red: Considering the fact that the $17.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the June 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 24th 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 $17.50 strike highlighted in red: Considering the fact that the $17.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the June 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 24th 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 $17.50 strike highlighted in red: Considering the fact that the $17.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the June 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 24th contracts and identified one put and one call contract of particular interest.
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3555.0
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2022-05-09 00:00:00 UTC
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Ukraine war drives De Beers to step up diamond traceability efforts
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AAL
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https://www.nasdaq.com/articles/ukraine-war-drives-de-beers-to-step-up-diamond-traceability-efforts
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nan
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nan
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By Clara Denina and Helen Reid
CAPE TOWN, May 9 (Reuters) - De Beers, the world's No. 2 diamond producer, is stepping up efforts to formally track its products from mine to retailer, the company's CEO said, as Western customers want assurance that their purchases do not come from Russia.
De Beers, a unit of Anglo American AAL.L, is also looking to adjust its supply chains, CEO Bruce Cleaver told Reuters in an interview, as it sees rising demand in the United States for its diamonds after U.S. authorities banned the import of diamonds from Russia's Alrosa ALRS.MM, the world's biggest producer.
"Traceability and pipeline integrity are going to be the things that get accelerated out of the Russia-Ukraine war," Cleaver said.
"We're in good shape to be able to prove that to our consumers. We've been working on provenance for 20 years," he added.
Last week De Beers deployed its blockchain platform, first piloted in 2018, to potentially register and track rough diamonds each time they change hands from the moment they are sold to middlemen up to the retail stage.
The platform aims to verify authenticity and responsible sourcing, ensuring diamonds are not from conflict zones where they could be used to finance violence.
Currently, about 25% of De Beers' production is tracked by blockchain, a database of transactions that is shared across a network of computers. Once the record of a transaction is added to the database it is very difficult to change.
In a bid to increase its market share, De Beers is also looking at options to "redirect supply from other places into" the United States where retailers are increasingly interested in the company's brand, Cleaver said.
As the U.S. imposed sanctions on Alrosa after the invasion of Ukraine, U.S. retailers Signet Jewelers SIG.N and Tiffany and Co also halted the use of Russian diamonds in their jewellery.
"There is still less supply globally going into America because Russian goods won't go... that's difficult to solve because I don't have a massive amount more production to produce," Cleaver said.
"We haven't got to a conclusion, but we're looking at changing the distribution model a little bit in order to distribute a bit more here and a bit less there and those kind of things," Cleaver added.
De Beers' sales totalled $4.82 billion in 2021, with half of them in the United States, beating Alrosa's sales of $4.2 billion, mostly made in North America and Asia.
Independent analyst Paul Zimnisky forecasts that Alrosa's production this year will be 10% lower than the company's guidance in March of 34.3 million carats, and the Russian state could buy some of its output.
Last month Russia said it may buy rough diamonds from state-owned Alrosa through its state precious metals and gems repository Gokhran to support the company as it did during the years of weak demand following the 2008 global financial crisis.
As a consequence, De Beers'global marketshare, in terms of gross value produced, could increase from a mid-30s percent to around 40% in the near term, Zimnisky estimated.
Alrosa accounts for about 30% of global rough diamonds' output and nearly all of Russia's production.
Alrosa's share price has dropped around 15% since Russia invaded Ukraine in February and following the U.S. ban on its products.
(Reporting by Clara Denina and Helen Reid; Editing by Susan Fenton)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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De Beers, a unit of Anglo American AAL.L, is also looking to adjust its supply chains, CEO Bruce Cleaver told Reuters in an interview, as it sees rising demand in the United States for its diamonds after U.S. authorities banned the import of diamonds from Russia's Alrosa ALRS.MM, the world's biggest producer. Last week De Beers deployed its blockchain platform, first piloted in 2018, to potentially register and track rough diamonds each time they change hands from the moment they are sold to middlemen up to the retail stage. Independent analyst Paul Zimnisky forecasts that Alrosa's production this year will be 10% lower than the company's guidance in March of 34.3 million carats, and the Russian state could buy some of its output.
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De Beers, a unit of Anglo American AAL.L, is also looking to adjust its supply chains, CEO Bruce Cleaver told Reuters in an interview, as it sees rising demand in the United States for its diamonds after U.S. authorities banned the import of diamonds from Russia's Alrosa ALRS.MM, the world's biggest producer. By Clara Denina and Helen Reid CAPE TOWN, May 9 (Reuters) - De Beers, the world's No. Currently, about 25% of De Beers' production is tracked by blockchain, a database of transactions that is shared across a network of computers.
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De Beers, a unit of Anglo American AAL.L, is also looking to adjust its supply chains, CEO Bruce Cleaver told Reuters in an interview, as it sees rising demand in the United States for its diamonds after U.S. authorities banned the import of diamonds from Russia's Alrosa ALRS.MM, the world's biggest producer. In a bid to increase its market share, De Beers is also looking at options to "redirect supply from other places into" the United States where retailers are increasingly interested in the company's brand, Cleaver said. Last month Russia said it may buy rough diamonds from state-owned Alrosa through its state precious metals and gems repository Gokhran to support the company as it did during the years of weak demand following the 2008 global financial crisis.
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De Beers, a unit of Anglo American AAL.L, is also looking to adjust its supply chains, CEO Bruce Cleaver told Reuters in an interview, as it sees rising demand in the United States for its diamonds after U.S. authorities banned the import of diamonds from Russia's Alrosa ALRS.MM, the world's biggest producer. Once the record of a transaction is added to the database it is very difficult to change. Alrosa accounts for about 30% of global rough diamonds' output and nearly all of Russia's production.
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3556.0
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2022-05-06 00:00:00 UTC
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FOCUS-Chile's parched mines race for an increasingly scarce commodity: water
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AAL
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https://www.nasdaq.com/articles/focus-chiles-parched-mines-race-for-an-increasingly-scarce-commodity%3A-water
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nan
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nan
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By Fabian Cambero
SANTIAGO, May 6 (Reuters) - A record-breaking drought in Chile is impacting mining operations and forcing companies to escalate their search for more sources of water, from water treatment and pricey desalination plants to even encouraging workers to use less water in the shower.
The Andean nation, the world's no. 1 copper producer and the no. 2 producer of battery metal lithium, is battling a historic drought that is now entering its 13th year. That has led capital Santiago to roll out unprecedented plans to ration water for residents.
Mines are also feeling the effects.
Anglo American's AAL.L flagship Los Bronces mine in central Chile saw production fall 17% year-on-year in the first quarter of 2022, partly due to water scarcity, the firm said in April. Antofagasta Minerals ANTO.L said drought led to a 24% first-quarter drop in production at its Los Pelambres mine.
Tensions over water use having been building over years for Chile's miners, who need it for pumping minerals like lithium to the surface, copper smelting, and in the concentrator, which breaks down raw ore and processes it into usable material.
Traditionally, they have relied on continental waters - land-based water from lakes, rivers and reservoirs.
"Our main challenge is to find other sources beyond continental waters," Maximo Pacheco, chairman of state-owned mining giant Codelco, told Reuters.
Pacheco said Codelco was planning to recycle more water and reduce water use through efficiency savings, but gave few details on specific measures.
Mining firms such as Anglo American and Antofagasta have targeted tailings of mine waste to increase recirculation, reduced water loss from pipes, and reused greywater.
'EVERY DROP COUNTS'
In Los Pelambres in the northern region of Coquimbo, mine workers are reminded as they eat their lunch to reduce personal water use by screens around the dining room, part of the mine's "Every Drop Counts" program to save water.
Antofagasta's mine also has a desalination plant coming online in the second half of the year and is targeting 90% of the mine's water coming from the ocean or recirculation by 2025.
Jorge Cantallopts, head of research at government copper commission Cochilco, told Reuters that mines high up in the Andes in central Chile were facing the biggest challenge, with the drought likely to persist and issues creating desalination plants far from the ocean.
Cantallopts pointed to Los Bronces as the most notable example, but said others like Codelco's Andina and El Teniente could soon confront similar issues.
"They will face the same problems in a few years and we have to do something," he said.
Mining undersecretary Willy Kracht told Reuters the government was pushing mining firms to share water infrastructure and plans to establish a forum to boost coordination.
Anglo American said in response to Reuters queries that Los Bronces was looking to make production more efficient and find water sources that "don't compete with human consumption."
The firm has already increased water efficiency and reduced freshwater extraction, though it has warned its copper production projections of 660,000 to 750,000 tonnes this year could be affected by water availability and COVID-19 impacts.
POLITICS OF WATER
Water use is also becoming increasingly political, with leftist President Gabriel Boric keen to toughen environmental regulations.
Regulators have already looked to sue or fine some mining firms for excess water use, especially in the Atacama desert region, a major source of lithium which is in hot demand to make electric vehicle batteries.
Cochilco estimates fresh water use will decline by 45% by 2032 due to desalination, according to a report last month. But the process is expensive, uses lots of electricity, and is not always feasible in high-altitude Andean regions inland.
BHP Group BHP.AX, an early mover, now meets water demand at its huge Escondida mine with the technology and has a desalination plant at its Spence mine, but still depends on continental waters for the smaller Cerro Colorado deposit.
Antofagasta has said that the continuity of its Zaldivar mine depends on the extension of continental water rights since its size would not justify the cost of a desalination plant.
Kracht said protecting water resources and the environment and spurring economic growth in the mining-dependent country was a tough balancing act.
"We have to take care of this drought. Then there's climate change and policies being promoted at a global level, but we are also being tasked to develop more mining. So there is a kind of contradiction we have to learn how to balance," he said.
(Reporting by Fabián Andrés Cambero; Writing by Alexander Villegas; Editing by Adam Jourdan and Rosalba O'Brien)
((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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Anglo American's AAL.L flagship Los Bronces mine in central Chile saw production fall 17% year-on-year in the first quarter of 2022, partly due to water scarcity, the firm said in April. Jorge Cantallopts, head of research at government copper commission Cochilco, told Reuters that mines high up in the Andes in central Chile were facing the biggest challenge, with the drought likely to persist and issues creating desalination plants far from the ocean. Anglo American said in response to Reuters queries that Los Bronces was looking to make production more efficient and find water sources that "don't compete with human consumption."
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Anglo American's AAL.L flagship Los Bronces mine in central Chile saw production fall 17% year-on-year in the first quarter of 2022, partly due to water scarcity, the firm said in April. "Our main challenge is to find other sources beyond continental waters," Maximo Pacheco, chairman of state-owned mining giant Codelco, told Reuters. Mining firms such as Anglo American and Antofagasta have targeted tailings of mine waste to increase recirculation, reduced water loss from pipes, and reused greywater.
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Anglo American's AAL.L flagship Los Bronces mine in central Chile saw production fall 17% year-on-year in the first quarter of 2022, partly due to water scarcity, the firm said in April. By Fabian Cambero SANTIAGO, May 6 (Reuters) - A record-breaking drought in Chile is impacting mining operations and forcing companies to escalate their search for more sources of water, from water treatment and pricey desalination plants to even encouraging workers to use less water in the shower. In Los Pelambres in the northern region of Coquimbo, mine workers are reminded as they eat their lunch to reduce personal water use by screens around the dining room, part of the mine's "Every Drop Counts" program to save water.
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Anglo American's AAL.L flagship Los Bronces mine in central Chile saw production fall 17% year-on-year in the first quarter of 2022, partly due to water scarcity, the firm said in April. 2 producer of battery metal lithium, is battling a historic drought that is now entering its 13th year. Antofagasta Minerals ANTO.L said drought led to a 24% first-quarter drop in production at its Los Pelambres mine.
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3557.0
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2022-05-05 00:00:00 UTC
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Travel industry, airlines urge end to COVID testing to enter U.S.
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AAL
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https://www.nasdaq.com/articles/travel-industry-airlines-urge-end-to-covid-testing-to-enter-u.s.
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nan
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nan
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By David Shepardson
WASHINGTON, May 5 (Reuters) - Major U.S. airlines, business and travel groups and other companies urged the White House on Thursday to abandon COVID-19 pre-departure testing requirements for vaccinated international passengers traveling to the United States.
"Given the slow economic recovery of the business and international travel sectors, and in light of medical advancements and the improved public health metrics in the U.S., we encourage you to immediately remove the inbound testing requirement for vaccinated air travelers," said the letter signed by American Airlines AAL.O, Carnival Corp CCL.N, Marriott International MAR.O, Walt Disney Co's DIS.N Disney Parks, the U.S. Chamber of Commerce, U.S. Travel Association and others.
Airline executives say many Americans are not traveling internationally because of concerns they will test positive and be stranded abroad.
The letter to White House Coronavirus Response Coordinator Ashish Jha said "the economic costs associated with maintaining the measure are significant," saying international travel spending is down 78% compared with 2019 levels.
The letter noted many foreign governments "with similar infection, vaccination and hospitalization rates—including
the United Kingdom, Germany, and Canada—have eliminated pre-departure testing requirements for vaccinated travelers."
The letter noted that the Biden administration does not require negative tests for entry at land-border ports of entry with Canada and Mexico but only for air travelers.
The White House did not immediately comment.
On April 18, a federal judge declared the 14-month-old transportation mask mandate unlawful and the Biden administration quickly stopped enforcing the rules on airplanes and in transit hubs like airports.
In December, the Biden administration imposed tougher new rules requiring international air travelers arriving in the United States to obtain a negative COVID-19 test within one day of travel.
Under prior rules, vaccinated international air travelers could present a negative test result obtained within three days of their day of departure.
(Reporting by David Shepardson, Editing by Franklin Paul and Marguerita Choy)
((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.
|
"Given the slow economic recovery of the business and international travel sectors, and in light of medical advancements and the improved public health metrics in the U.S., we encourage you to immediately remove the inbound testing requirement for vaccinated air travelers," said the letter signed by American Airlines AAL.O, Carnival Corp CCL.N, Marriott International MAR.O, Walt Disney Co's DIS.N Disney Parks, the U.S. Chamber of Commerce, U.S. Travel Association and others. Airline executives say many Americans are not traveling internationally because of concerns they will test positive and be stranded abroad. The letter to White House Coronavirus Response Coordinator Ashish Jha said "the economic costs associated with maintaining the measure are significant," saying international travel spending is down 78% compared with 2019 levels.
|
"Given the slow economic recovery of the business and international travel sectors, and in light of medical advancements and the improved public health metrics in the U.S., we encourage you to immediately remove the inbound testing requirement for vaccinated air travelers," said the letter signed by American Airlines AAL.O, Carnival Corp CCL.N, Marriott International MAR.O, Walt Disney Co's DIS.N Disney Parks, the U.S. Chamber of Commerce, U.S. Travel Association and others. In December, the Biden administration imposed tougher new rules requiring international air travelers arriving in the United States to obtain a negative COVID-19 test within one day of travel. Under prior rules, vaccinated international air travelers could present a negative test result obtained within three days of their day of departure.
|
"Given the slow economic recovery of the business and international travel sectors, and in light of medical advancements and the improved public health metrics in the U.S., we encourage you to immediately remove the inbound testing requirement for vaccinated air travelers," said the letter signed by American Airlines AAL.O, Carnival Corp CCL.N, Marriott International MAR.O, Walt Disney Co's DIS.N Disney Parks, the U.S. Chamber of Commerce, U.S. Travel Association and others. By David Shepardson WASHINGTON, May 5 (Reuters) - Major U.S. airlines, business and travel groups and other companies urged the White House on Thursday to abandon COVID-19 pre-departure testing requirements for vaccinated international passengers traveling to the United States. In December, the Biden administration imposed tougher new rules requiring international air travelers arriving in the United States to obtain a negative COVID-19 test within one day of travel.
|
"Given the slow economic recovery of the business and international travel sectors, and in light of medical advancements and the improved public health metrics in the U.S., we encourage you to immediately remove the inbound testing requirement for vaccinated air travelers," said the letter signed by American Airlines AAL.O, Carnival Corp CCL.N, Marriott International MAR.O, Walt Disney Co's DIS.N Disney Parks, the U.S. Chamber of Commerce, U.S. Travel Association and others. By David Shepardson WASHINGTON, May 5 (Reuters) - Major U.S. airlines, business and travel groups and other companies urged the White House on Thursday to abandon COVID-19 pre-departure testing requirements for vaccinated international passengers traveling to the United States. The White House did not immediately comment.
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3558.0
|
2022-05-05 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-0
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nan
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nan
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What happened
Thursday is a miserable day on Wall Street, and airline stocks are caught up in the turbulence. Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded down as much as 5% on the day, and shares of Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) weren't far behind.
So what
A day after stocks rallied after the Federal Reserve hiked rates, markets on Thursday gave all of those gains back. The Dow Jones Industrial Average fell as much as 1,000 points midday as investors seemingly reconsidered the challenge the Fed faces in trying to control inflation without sending the economy into a recession.
For airline stocks, the thought of a slowdown could not come at a worse time. The industry was hit hard by the pandemic, and had hoped to use the 2022 travel season to replenish its cash reserves and repair bruised balance sheets. Based on airline commentary during earnings season, demand seems to be holding up despite inflationary pressures, but the prospect of a recession so soon after the pandemic-related slowdown is a reason for investors to be cautious about buying into the sector.
Image source: Getty Images.
Spirit Airlines is likely also trading on its earnings report released Wednesday night. Spirit lost $1.60 per share in the quarter, $0.02 more than estimates, but its $967.3 million in revenue came in a bit above analyst expectations. Spirit also reiterated its commitment to its deal to be acquired by Frontier Group Holdings, rejecting a competing bid from JetBlue.
Spirit said it expects to turn a profit in the second half.
There wasn't a lot of company-specific news for the rest of the airlines, although investors might be digesting reports predicting flight delays and cancellations this summer in Florida. A combination of typical weather delays, coupled with an uptick in space launches and use of private jets, are expected to make the skies over the Sunshine State more congested in the months to come. Airlines can ill afford issues getting in and out of key Florida vacation markets, which can ripple through the network if not quickly addressed.
Now what
For now, the airlines appear to be in a holding pattern. Conditions have improved significantly since the early days of the pandemic, and the airlines so far have seen demand strong enough to pass on higher costs to consumers in the form of higher fares. But with COVID-19 cases once again on the rise in some areas, and the concerns about what the Fed's actions will mean for the economy, a lot of uncertainty remains.
The airlines will likely need at least another year to fully recover from the pandemic, and that's if all goes right. Investors need not rush into these shares anytime soon.
For those willing to buckle up and ride through the turbulence, names like Delta and Southwest appear to be the best options. There is great potential in this sector for long-term investors, but it is hard to see a way for the airlines to quickly gain altitude from here.
10 stocks we like better than Spirit Airlines
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Spirit Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of April 7, 2022
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 United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded down as much as 5% on the day, and shares of Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) weren't far behind. The Dow Jones Industrial Average fell as much as 1,000 points midday as investors seemingly reconsidered the challenge the Fed faces in trying to control inflation without sending the economy into a recession. Based on airline commentary during earnings season, demand seems to be holding up despite inflationary pressures, but the prospect of a recession so soon after the pandemic-related slowdown is a reason for investors to be cautious about buying into the sector.
|
Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded down as much as 5% on the day, and shares of Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) weren't far behind. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
|
Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded down as much as 5% on the day, and shares of Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) weren't far behind. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Spirit Airlines wasn't one of them! See the 10 stocks *Stock Advisor returns as of April 7, 2022 Lou Whiteman has positions in Delta Air Lines and Spirit Airlines.
|
Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded down as much as 5% on the day, and shares of Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) weren't far behind. Based on airline commentary during earnings season, demand seems to be holding up despite inflationary pressures, but the prospect of a recession so soon after the pandemic-related slowdown is a reason for investors to be cautious about buying into the sector. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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3559.0
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2022-05-05 00:00:00 UTC
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U.S. summer travelers can expect long lines, higher prices as COVID restrictions ease
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AAL
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https://www.nasdaq.com/articles/u.s.-summer-travelers-can-expect-long-lines-higher-prices-as-covid-restrictions-ease-0
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nan
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nan
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By Doyinsola Oladipo
May 5 (Reuters) - With more U.S. travelers expected to take to the skies and the roads this summer as COVID restrictions ease, unbridled demand will strain capacity in the leisure and travel industry and push prices even higher.
Airlines, hotels, rental car companies and booking sites all reported a surge in demand for their services in the latest batch of company earnings. But at the same time, many of those companies face a tight labor market and limited volume as they scramble to restart and expand operations after more than two years of depressed demand due to the pandemic.
Tripadvisor said travelers should expect inflation to impact all areas of travel purchases in 2022, and booking now versus later can mean locking in better prices.
Hilton Worldwide Holdings Inc HLT.N plans to continue to reprice hotel rooms "every minute of the day" to limit the impact inflation has on its business, CEO Christopher Nassetta told investors on Tuesday.
"As demand has picked up, we have certainly been able to do that and we expect that we will continue to be able to do that," he said on the company's earnings call.
Hilton's average daily rates in the United States were 36.4% higher in the first quarter of 2022 compared to the same period in 2021. Average daily rates across hotel companies in the U.S. were up approximately 37.7% in the first quarter of 2022 when compared to the same period in 2021, according to hotel industry data from Smith Travel Research Inc.
The price of flights this summer are also trending higher, according to travel search engine Skyscanner. Round trip flights within the U.S. will cost $302 per traveler on average, which is 3% higher during the same period pre-pandemic. Long and ultra-long-haul international flights are up to 20% higher than 2019, costing on average $797 and $1182 respectively.
Other segments within the travel industry are facing supply constraints and labor shortages as leisure and business travelers also return.
Car rental firm Hertz Global Holdings HTZ.O reported it averaged about 481,000 vehicles during the first quarter of 2022 compared to a pre-pandemic level of approximately 700,000 vehicles.
"There's little question that as demand moves even higher in the summer season, you'll see [utilization] stress further," said Hertz CEO Stephen Scherr, adding that the available supply of vehicles is limited and needs to be managed very carefully.
Staffing woes have also marred operations in recent weeks at carriers such as Alaska Airlines ALK.N and JetBlue JBLU.O, forcing them to cut summer schedules to avoid further disruption.
Travel booking app Hopper said domestic airlines are currently scheduled to operate at between 75% to 95% of their 2019 summer capacity from May through August.
The Transportation Security Administration (TSA) continues to host hiring events in an effort to increase staff ahead of anticipated summer travel and the return to pre-pandemic passenger volumes, according to a statement from the agency.
The TSA in March said the return of (fiscal year) 2019 passenger traffic levels would return in (fiscal year) 2022, a year earlier than previously projected and an increase in staff will help ensure that the "traveling public does not experience excessive wait times."
(Reporting by Doyinsola Oladipo, Editing by Anna Driver and Diane Craft)
((Doyinsola.Oladipo2@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.
|
Hilton Worldwide Holdings Inc HLT.N plans to continue to reprice hotel rooms "every minute of the day" to limit the impact inflation has on its business, CEO Christopher Nassetta told investors on Tuesday. "There's little question that as demand moves even higher in the summer season, you'll see [utilization] stress further," said Hertz CEO Stephen Scherr, adding that the available supply of vehicles is limited and needs to be managed very carefully. The Transportation Security Administration (TSA) continues to host hiring events in an effort to increase staff ahead of anticipated summer travel and the return to pre-pandemic passenger volumes, according to a statement from the agency.
|
Other segments within the travel industry are facing supply constraints and labor shortages as leisure and business travelers also return. Car rental firm Hertz Global Holdings HTZ.O reported it averaged about 481,000 vehicles during the first quarter of 2022 compared to a pre-pandemic level of approximately 700,000 vehicles. The TSA in March said the return of (fiscal year) 2019 passenger traffic levels would return in (fiscal year) 2022, a year earlier than previously projected and an increase in staff will help ensure that the "traveling public does not experience excessive wait times."
|
By Doyinsola Oladipo May 5 (Reuters) - With more U.S. travelers expected to take to the skies and the roads this summer as COVID restrictions ease, unbridled demand will strain capacity in the leisure and travel industry and push prices even higher. Average daily rates across hotel companies in the U.S. were up approximately 37.7% in the first quarter of 2022 when compared to the same period in 2021, according to hotel industry data from Smith Travel Research Inc. The TSA in March said the return of (fiscal year) 2019 passenger traffic levels would return in (fiscal year) 2022, a year earlier than previously projected and an increase in staff will help ensure that the "traveling public does not experience excessive wait times."
|
By Doyinsola Oladipo May 5 (Reuters) - With more U.S. travelers expected to take to the skies and the roads this summer as COVID restrictions ease, unbridled demand will strain capacity in the leisure and travel industry and push prices even higher. Round trip flights within the U.S. will cost $302 per traveler on average, which is 3% higher during the same period pre-pandemic. Car rental firm Hertz Global Holdings HTZ.O reported it averaged about 481,000 vehicles during the first quarter of 2022 compared to a pre-pandemic level of approximately 700,000 vehicles.
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3560.0
|
2022-05-05 00:00:00 UTC
|
U.S. summer travelers can expect long lines, higher prices as COVID restrictions ease
|
AAL
|
https://www.nasdaq.com/articles/u.s.-summer-travelers-can-expect-long-lines-higher-prices-as-covid-restrictions-ease
|
nan
|
nan
|
By Doyinsola Oladipo
May 5 (Reuters) - With more U.S. travelers expected to take to the skies and the roads this summer as COVID restrictions ease, unbridled demand will strain capacity in the leisure and travel industry and push prices even higher.
Airlines, hotels, rental car companies and booking sites all reported a surge in demand for their services in the latest batch of company earnings. But at the same time. many of those companies face a tight labor market and limited volume as they scramble to restart and expand operations after more than two years of depressed demand due to the pandemic.
Tripadvisor said travelers should expect inflation to impact all areas of travel purchases in 2022, and booking now versus later can mean locking in better prices.
Hilton Worldwide Holdings Inc HLT.N plans to continue to reprice hotel rooms "every minute of the day" to limit the impact inflation has on its business, CEO Christopher Nassetta told investors on Tuesday.
"As demand has picked up, we have certainly been able to do that and we expect that we will continue to be able to do that," he said on the company's earnings call.
Hilton's average daily rates in the United States were 36.4% higher in the first quarter of 2022 compared to the same period in 2021. Average daily rates across hotel companies in the U.S. were up approximately 37.7% in the first quarter of 2022 when compared to the same period in 2021, according to hotel industry data from Smith Travel Research Inc.
The price of flights this summer are also trending higher, according to travel search engine Skyscanner. Round trip flights within the U.S. will cost $302 per traveler on average, which is 3% higher during the same period pre-pandemic. Long and ultra-long-haul international flights are up to 20% higher than 2019, costing on average $797 and $1182 respectively.
Other segments within the travel industry are facing supply constraints and labor shortages as leisure and business travelers also return.
Car rental firm Hertz Global Holdings HTZ.O reported it averaged about 481,000 vehicles during the first quarter of 2022 compared to a pre-pandemic level of approximately 700,000 vehicles.
"There's little question that as demand moves even higher in the summer season, you'll see [utilization] stress further," said Hertz CEO Stephen Scherr, adding that the available supply of vehicles is limited and needs to be managed very carefully.
Staffing woes have also marred operations in recent weeks at carriers such as Alaska Airlines ALK.N and JetBlue JBLU.O, forcing them to cut summer schedules to avoid further disruption.
Travel booking app Hopper said domestic airlines are currently scheduled to operate at between 75% to 95% of their 2019 summer capacity from May through August.
The Transportation Security Administration (TSA) continues to host hiring events in an effort to increase staff ahead of anticipated summer travel and the return to pre-pandemic passenger volumes, according to a statement from the agency.
The TSA in March said the return of (fiscal year) 2019 passenger traffic levels would return in (fiscal year) 2022, a year earlier than previously projected and an increase in staff will help ensure that the "traveling public does not experience excessive wait times."
(Reporting by Doyinsola Oladipo, Editing by Anna Driver and Diane Craft)
((Doyinsola.Oladipo2@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.
|
Hilton Worldwide Holdings Inc HLT.N plans to continue to reprice hotel rooms "every minute of the day" to limit the impact inflation has on its business, CEO Christopher Nassetta told investors on Tuesday. "There's little question that as demand moves even higher in the summer season, you'll see [utilization] stress further," said Hertz CEO Stephen Scherr, adding that the available supply of vehicles is limited and needs to be managed very carefully. The Transportation Security Administration (TSA) continues to host hiring events in an effort to increase staff ahead of anticipated summer travel and the return to pre-pandemic passenger volumes, according to a statement from the agency.
|
Other segments within the travel industry are facing supply constraints and labor shortages as leisure and business travelers also return. Car rental firm Hertz Global Holdings HTZ.O reported it averaged about 481,000 vehicles during the first quarter of 2022 compared to a pre-pandemic level of approximately 700,000 vehicles. The TSA in March said the return of (fiscal year) 2019 passenger traffic levels would return in (fiscal year) 2022, a year earlier than previously projected and an increase in staff will help ensure that the "traveling public does not experience excessive wait times."
|
By Doyinsola Oladipo May 5 (Reuters) - With more U.S. travelers expected to take to the skies and the roads this summer as COVID restrictions ease, unbridled demand will strain capacity in the leisure and travel industry and push prices even higher. Average daily rates across hotel companies in the U.S. were up approximately 37.7% in the first quarter of 2022 when compared to the same period in 2021, according to hotel industry data from Smith Travel Research Inc. The TSA in March said the return of (fiscal year) 2019 passenger traffic levels would return in (fiscal year) 2022, a year earlier than previously projected and an increase in staff will help ensure that the "traveling public does not experience excessive wait times."
|
By Doyinsola Oladipo May 5 (Reuters) - With more U.S. travelers expected to take to the skies and the roads this summer as COVID restrictions ease, unbridled demand will strain capacity in the leisure and travel industry and push prices even higher. Car rental firm Hertz Global Holdings HTZ.O reported it averaged about 481,000 vehicles during the first quarter of 2022 compared to a pre-pandemic level of approximately 700,000 vehicles. The TSA in March said the return of (fiscal year) 2019 passenger traffic levels would return in (fiscal year) 2022, a year earlier than previously projected and an increase in staff will help ensure that the "traveling public does not experience excessive wait times."
|
3561.0
|
2022-05-04 00:00:00 UTC
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Unruly U.S. air passenger incidents falls to lowest level since 2020
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AAL
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https://www.nasdaq.com/articles/unruly-u.s.-air-passenger-incidents-falls-to-lowest-level-since-2020-0
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nan
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nan
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By David Shepardson
WASHINGTON, May 4 (Reuters) - The Federal Aviation Administration (FAA) said Wednesday the rate of unruly air passenger incidents dropped to its lowest level since late 2020 after a U.S. judge ended a government transportation mask mandate on April 18.
The FAA said in the week ending April 24, there were 1.9 reported incidents per 10,000 flights, compared to 4.4 reported incidents per 10,000 flights in the prior week. The FAA said previously about 70% of reported incidents involved the enforcement of masking rules.
The FAA said in the average rate in the last three months of 2020 was 2.45 incidents per 10,000 flights. Some airline officials had predicted the number of unruly passenger incidents would fall sharply when the mandate was lifted.
Then-FAA Administrator Steve Dickson first issued a zero-tolerance mandate when unruly passenger incidents escalated around the time of the Jan. 6, 2021, attack on the U.S. Capitol.
Last month, the FAA said that zero-tolerance policy will become permanent even after the mask mandate was lifted.
Under the policy, the FAA issues fines to passengers for unruly behavior instead of warning letters or counseling.
Since January 2021, the FAA has proposed fines totaling about $7 million for disruptive passengers.
Two new fines issued in April were the highest yet, including an $81,950 fine for an American Airlines AAL.O passenger on a July flight in which a passenger allegedly pushed a "flight attendant aside and tried to open the cabin door." The FAA said "after the passenger was restrained in flex cuffs, she spit at, headbutted, bit and tried to kick the crew and other passengers."
The FAA said since January 2021, there have been a record 7,200 unruly passenger incidents reported - and 70% involved the enforcement of masking rules.
The FAA said it has referred 80 unruly airplane passengers to the FBI for potential criminal prosecution.
(Reporting by David Shepardson;editing by Diane CraftEditing by Marguerita Choy)
((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.
|
Two new fines issued in April were the highest yet, including an $81,950 fine for an American Airlines AAL.O passenger on a July flight in which a passenger allegedly pushed a "flight attendant aside and tried to open the cabin door." By David Shepardson WASHINGTON, May 4 (Reuters) - The Federal Aviation Administration (FAA) said Wednesday the rate of unruly air passenger incidents dropped to its lowest level since late 2020 after a U.S. judge ended a government transportation mask mandate on April 18. Then-FAA Administrator Steve Dickson first issued a zero-tolerance mandate when unruly passenger incidents escalated around the time of the Jan. 6, 2021, attack on the U.S. Capitol.
|
Two new fines issued in April were the highest yet, including an $81,950 fine for an American Airlines AAL.O passenger on a July flight in which a passenger allegedly pushed a "flight attendant aside and tried to open the cabin door." The FAA said in the week ending April 24, there were 1.9 reported incidents per 10,000 flights, compared to 4.4 reported incidents per 10,000 flights in the prior week. The FAA said previously about 70% of reported incidents involved the enforcement of masking rules.
|
Two new fines issued in April were the highest yet, including an $81,950 fine for an American Airlines AAL.O passenger on a July flight in which a passenger allegedly pushed a "flight attendant aside and tried to open the cabin door." By David Shepardson WASHINGTON, May 4 (Reuters) - The Federal Aviation Administration (FAA) said Wednesday the rate of unruly air passenger incidents dropped to its lowest level since late 2020 after a U.S. judge ended a government transportation mask mandate on April 18. The FAA said in the week ending April 24, there were 1.9 reported incidents per 10,000 flights, compared to 4.4 reported incidents per 10,000 flights in the prior week.
|
Two new fines issued in April were the highest yet, including an $81,950 fine for an American Airlines AAL.O passenger on a July flight in which a passenger allegedly pushed a "flight attendant aside and tried to open the cabin door." The FAA said in the average rate in the last three months of 2020 was 2.45 incidents per 10,000 flights. Last month, the FAA said that zero-tolerance policy will become permanent even after the mask mandate was lifted.
|
3562.0
|
2022-05-04 00:00:00 UTC
|
Unruly U.S. air passenger incidents falls to lowest level since 2020
|
AAL
|
https://www.nasdaq.com/articles/unruly-u.s.-air-passenger-incidents-falls-to-lowest-level-since-2020
|
nan
|
nan
|
WASHINGTON, May 4 (Reuters) - The Federal Aviation Administration (FAA) said Wednesday the rate of unruly air passenger incidents dropped to its lowest level since late 2020 after a U.S. judge ended a government transportation mask mandate on April 18.
The FAA said in the week ending April 24, there were 1.9 reported incidents per 10,000 flights, compared to 4.4 reported incidents per 10,000 flights in the prior week. The FAA said previously about 70% of reported incidents involved the enforcement of masking rules.
(Reporting by David Shepardson;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.
|
WASHINGTON, May 4 (Reuters) - The Federal Aviation Administration (FAA) said Wednesday the rate of unruly air passenger incidents dropped to its lowest level since late 2020 after a U.S. judge ended a government transportation mask mandate on April 18. The FAA said previously about 70% of reported incidents involved the enforcement of masking rules. (Reporting by David Shepardson;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.
|
The FAA said in the week ending April 24, there were 1.9 reported incidents per 10,000 flights, compared to 4.4 reported incidents per 10,000 flights in the prior week. The FAA said previously about 70% of reported incidents involved the enforcement of masking rules. (Reporting by David Shepardson;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.
|
WASHINGTON, May 4 (Reuters) - The Federal Aviation Administration (FAA) said Wednesday the rate of unruly air passenger incidents dropped to its lowest level since late 2020 after a U.S. judge ended a government transportation mask mandate on April 18. The FAA said in the week ending April 24, there were 1.9 reported incidents per 10,000 flights, compared to 4.4 reported incidents per 10,000 flights in the prior week. (Reporting by David Shepardson;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.
|
WASHINGTON, May 4 (Reuters) - The Federal Aviation Administration (FAA) said Wednesday the rate of unruly air passenger incidents dropped to its lowest level since late 2020 after a U.S. judge ended a government transportation mask mandate on April 18. The FAA said in the week ending April 24, there were 1.9 reported incidents per 10,000 flights, compared to 4.4 reported incidents per 10,000 flights in the prior week. The FAA said previously about 70% of reported incidents involved the enforcement of masking rules.
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3563.0
|
2022-05-02 00:00:00 UTC
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Buy Disney Stock After Near-50% Decline Amid Strong Trends
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AAL
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https://www.nasdaq.com/articles/buy-disney-stock-after-near-50-decline-amid-strong-trends
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite Disney (NYSE:DIS) stock hitting 52-week lows, it could be a good time to swoop in and buy. While DIS stock has been in a near free-fall lately, the business is seeing improving trends.
For instance, travel-industry execs have laid out the bull case despite turmoil in the markets and raging inflation. United Airlines (NASDAQ:UAL) CEO Scott Kirby said, “The demand environment is the strongest it’s been in my 30 years in the industry.” This comes after the company issued its strongest ever second-quarter outlook.
American Airlines (NASDAQ:AAL), Visa (NYSE:V) and American Express (NYSE:AXP) are also optimistic about travel ramping back up. American Express said that, “86% of consumers expect to spend more or the same on travel in 2022 compared to a typical pre-pandemic year.”
“While the geopolitical environment remains uncertain, we expect continued growth driven by a robust travel recovery,” says Visa Chairman and CEO Alfred F. Kelly, Jr.
All in all, increasing travel numbers are good news for Disney, while its parks should continue to run strong. From the company’s previous earnings release in February, Disney said it had “record revenue and operating income at our domestic parks and resorts.”
Given the recent travel trends, one can safely assume that its parks are doing even better now.
Switching gears to another part of Disney’s business, streaming shouldn’t be going the way of Netflix (NASDAQ:NFLX). Despite a more competitive environment, Disney’s streaming platforms have momentum. In its most recent report, Disney had a “significant increase in total subscriptions across our streaming portfolio to 196.4 million, including 11.8 million Disney+ subscribers added in the first quarter.” That was well above estimates calling for 7 million new subs.
7 Safe Stocks to Buy in May 2022
We will get a better idea on Disney’s streaming platforms when it reports earnings next week on May 11.
As for the charts, any notable rally in DIS stock could easily fling it back up into the $120 to $125 area. If it can climb that high, it will be key to see if it can reclaim the $128 to $130 area. This zone was prior support, so bulls will have to be cautious that this area could act as resistance.
However, back above this zone and the $137 to $140 area could be next.
Click to Enlarge
Source: Chart courtesy of TrendSpider
On the downside, DIS stock has two notable areas of interest: Between $100 to $106 and $80.
The first zone comes into play near a psychologically relevant price ($100) and the 78.6% retracement. Further, it would put the stock down 50% from the high, which may be enough to attract buyers.
The second level — $80 — is around where DIS stock bottomed in March 2020. It’s also where the rising 200-month moving average comes into play.
On the date of publication, Bret Kenwell 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 Buy Disney Stock After Near-50% Decline Amid Strong Trends appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ:AAL), Visa (NYSE:V) and American Express (NYSE:AXP) are also optimistic about travel ramping back up. 7 Safe Stocks to Buy in May 2022 We will get a better idea on Disney’s streaming platforms when it reports earnings next week on May 11. Click to Enlarge Source: Chart courtesy of TrendSpider On the downside, DIS stock has two notable areas of interest: Between $100 to $106 and $80.
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American Airlines (NASDAQ:AAL), Visa (NYSE:V) and American Express (NYSE:AXP) are also optimistic about travel ramping back up. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Despite Disney (NYSE:DIS) stock hitting 52-week lows, it could be a good time to swoop in and buy. American Express said that, “86% of consumers expect to spend more or the same on travel in 2022 compared to a typical pre-pandemic year.” “While the geopolitical environment remains uncertain, we expect continued growth driven by a robust travel recovery,” says Visa Chairman and CEO Alfred F. Kelly, Jr. All in all, increasing travel numbers are good news for Disney, while its parks should continue to run strong.
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American Airlines (NASDAQ:AAL), Visa (NYSE:V) and American Express (NYSE:AXP) are also optimistic about travel ramping back up. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Despite Disney (NYSE:DIS) stock hitting 52-week lows, it could be a good time to swoop in and buy. American Express said that, “86% of consumers expect to spend more or the same on travel in 2022 compared to a typical pre-pandemic year.” “While the geopolitical environment remains uncertain, we expect continued growth driven by a robust travel recovery,” says Visa Chairman and CEO Alfred F. Kelly, Jr. All in all, increasing travel numbers are good news for Disney, while its parks should continue to run strong.
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American Airlines (NASDAQ:AAL), Visa (NYSE:V) and American Express (NYSE:AXP) are also optimistic about travel ramping back up. While DIS stock has been in a near free-fall lately, the business is seeing improving trends. 7 Safe Stocks to Buy in May 2022 We will get a better idea on Disney’s streaming platforms when it reports earnings next week on May 11.
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3564.0
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2022-05-02 00:00:00 UTC
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Spirit board rejects JetBlue takeover offer on antitrust risks
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AAL
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https://www.nasdaq.com/articles/spirit-board-rejects-jetblue-takeover-offer-on-antitrust-risks
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nan
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Adds JetBlue, more from Spirit, no immediate Frontier comment
May 2 (Reuters) - Ultra low cost carrier Spirit Airlines SAVE.N on Monday rejected JetBlue Airways Corp's JBLU.O $33-per-share takeover offer, saying it had a low likelihood of winning approval from government regulators.
JetBlue responded by enhancing its offer - but not its $33 per share price - and promising a $200 million reverse break-up fee - or $1.80 per Spirit share - if the deal does not go through for antitrust reasons.
JetBlue's offer is significantly higher than the current $22.44 per share value of the cash and stock bid from Frontier ULCC.O made in February.
Frontier and JetBlue are in a battle for Spirit to better compete with legacy carriers, or the "big four" airlines that control nearly 80% of the U.S. passenger market.
Frontier had no immediate comment.
The Justice Department and six states in September sued to unwind JetBlue and American Airlines's "Northeast Alliance" partnership, alleging the agreement would lead to higher fares in busy northeastern U.S. airports.
"We believe a combination of JetBlue and Spirit has a low probability of receiving antitrust clearance so long as JetBlue's Northeast Alliance (NEA) with American Airlines remains in existence," Spirit said in a letter to JetBlue Chief Executive Robin Hayes Monday.
JetBlue said Monday that it would offer a remedy package to address regulatory concerns "that includes the divestiture of all Spirit assets in New York and Boston so that JetBlue does not increase its presence in the airports covered by the NEA. The package would also include gates and assets at other airports, including Fort Lauderdale."
Spirit said it believes the Justice Department and a court "will be very concerned that a higher-cost/higher fare airline would be eliminating a lower-cost/lower fare airline in a combination that would remove about half of the ULCC (ultra low cost carrier) capacity in the United States."
Spirit said in its April 25 response to JetBlue that it proposed "requiring JetBlue to take any action required to obtain regulatory clearance, which specifically included abandoning the NEA at closing."
Spirit added that "given this substantial completion risk, we believe JetBlue's economic offer is illusory, and Spirit's board has not found it necessary to consider it."
(Reporting by David Shepardson in Washington and Nilanjana Basu in Bengaluru Editing by Mark Potter)
((Nilanjana.Basu@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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JetBlue's offer is significantly higher than the current $22.44 per share value of the cash and stock bid from Frontier ULCC.O made in February. Frontier and JetBlue are in a battle for Spirit to better compete with legacy carriers, or the "big four" airlines that control nearly 80% of the U.S. passenger market. The Justice Department and six states in September sued to unwind JetBlue and American Airlines's "Northeast Alliance" partnership, alleging the agreement would lead to higher fares in busy northeastern U.S. airports.
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Adds JetBlue, more from Spirit, no immediate Frontier comment May 2 (Reuters) - Ultra low cost carrier Spirit Airlines SAVE.N on Monday rejected JetBlue Airways Corp's JBLU.O $33-per-share takeover offer, saying it had a low likelihood of winning approval from government regulators. The Justice Department and six states in September sued to unwind JetBlue and American Airlines's "Northeast Alliance" partnership, alleging the agreement would lead to higher fares in busy northeastern U.S. airports. "We believe a combination of JetBlue and Spirit has a low probability of receiving antitrust clearance so long as JetBlue's Northeast Alliance (NEA) with American Airlines remains in existence," Spirit said in a letter to JetBlue Chief Executive Robin Hayes Monday.
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Adds JetBlue, more from Spirit, no immediate Frontier comment May 2 (Reuters) - Ultra low cost carrier Spirit Airlines SAVE.N on Monday rejected JetBlue Airways Corp's JBLU.O $33-per-share takeover offer, saying it had a low likelihood of winning approval from government regulators. "We believe a combination of JetBlue and Spirit has a low probability of receiving antitrust clearance so long as JetBlue's Northeast Alliance (NEA) with American Airlines remains in existence," Spirit said in a letter to JetBlue Chief Executive Robin Hayes Monday. JetBlue said Monday that it would offer a remedy package to address regulatory concerns "that includes the divestiture of all Spirit assets in New York and Boston so that JetBlue does not increase its presence in the airports covered by the NEA.
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Adds JetBlue, more from Spirit, no immediate Frontier comment May 2 (Reuters) - Ultra low cost carrier Spirit Airlines SAVE.N on Monday rejected JetBlue Airways Corp's JBLU.O $33-per-share takeover offer, saying it had a low likelihood of winning approval from government regulators. JetBlue responded by enhancing its offer - but not its $33 per share price - and promising a $200 million reverse break-up fee - or $1.80 per Spirit share - if the deal does not go through for antitrust reasons. JetBlue said Monday that it would offer a remedy package to address regulatory concerns "that includes the divestiture of all Spirit assets in New York and Boston so that JetBlue does not increase its presence in the airports covered by the NEA.
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3565.0
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2022-05-02 00:00:00 UTC
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JetBlue Enhances Its Proposal For Spirit - Quick Facts
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AAL
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https://www.nasdaq.com/articles/jetblue-enhances-its-proposal-for-spirit-quick-facts
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nan
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nan
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(RTTNews) - JetBlue (JBLU), on Monday, enhanced its proposal to the Board of Spirit (SAVE) to acquire all of the outstanding common stock of Spirit for $33 cash per share. JetBlue noted that, if necessary, it would agree to divest assets of JetBlue and Spirit up to a material adverse effect on Spirit, with a limited carve-out for actions that would adversely impact JetBlue's Northeast Alliance with American Airlines. JetBlue would offer also a remedy package that includes the divestiture of all Spirit assets in New York and Boston. JetBlue noted that it would provide for a $200 million reverse break-up fee if the transaction is not consummated for antitrust reasons. JetBlue's proposal continues to offer Spirit shareholders $33 in cash per common share.
Earlier, Spirit Airlines, Inc. (SAVE) said its Board has unanimously determined that JetBlue's proposal dated April 29, 2022 does not constitute a superior proposal under existing merger deal with Frontier.
The views and 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 would offer also a remedy package that includes the divestiture of all Spirit assets in New York and Boston. JetBlue noted that it would provide for a $200 million reverse break-up fee if the transaction is not consummated for antitrust reasons. JetBlue's proposal continues to offer Spirit shareholders $33 in cash per common share.
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(RTTNews) - JetBlue (JBLU), on Monday, enhanced its proposal to the Board of Spirit (SAVE) to acquire all of the outstanding common stock of Spirit for $33 cash per share. JetBlue's proposal continues to offer Spirit shareholders $33 in cash per common share. Earlier, Spirit Airlines, Inc. (SAVE) said its Board has unanimously determined that JetBlue's proposal dated April 29, 2022 does not constitute a superior proposal under existing merger deal with Frontier.
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(RTTNews) - JetBlue (JBLU), on Monday, enhanced its proposal to the Board of Spirit (SAVE) to acquire all of the outstanding common stock of Spirit for $33 cash per share. JetBlue noted that, if necessary, it would agree to divest assets of JetBlue and Spirit up to a material adverse effect on Spirit, with a limited carve-out for actions that would adversely impact JetBlue's Northeast Alliance with American Airlines. Earlier, Spirit Airlines, Inc. (SAVE) said its Board has unanimously determined that JetBlue's proposal dated April 29, 2022 does not constitute a superior proposal under existing merger deal with Frontier.
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(RTTNews) - JetBlue (JBLU), on Monday, enhanced its proposal to the Board of Spirit (SAVE) to acquire all of the outstanding common stock of Spirit for $33 cash per share. JetBlue noted that, if necessary, it would agree to divest assets of JetBlue and Spirit up to a material adverse effect on Spirit, with a limited carve-out for actions that would adversely impact JetBlue's Northeast Alliance with American Airlines. JetBlue would offer also a remedy package that includes the divestiture of all Spirit assets in New York and Boston.
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3566.0
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2022-05-02 00:00:00 UTC
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Will The Bearish Sentiment In JetBlue Airways Stock Reverse Anytime Soon?
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AAL
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https://www.nasdaq.com/articles/will-the-bearish-sentiment-in-jetblue-airways-stock-reverse-anytime-soon
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nan
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nan
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The shares of JetBlue Airways (NASDAQ: JBLU) observed a downtrend as the company reported operational difficulties due to rising fuel prices and elevated pilot attrition – leading to a significantly lower flight completion factor in April. The company has initiated an action plan to improve operational reliability and return to profitability in 2H 2022. While JetBlue’s domestic business is expected to assist earnings and cash generation in the long term, Trefis machine learning engine estimates a 54% chance of a rise in the coming weeks by comparing the recent downtrend with historical stock price movements. See our analysis, JetBlue Airways Stock Chance of Rise, for more details.
Five Days: JBLU 0.7%, vs. S&P 500 -2.7%; Outperformed market (44% event probability)
JBLU stock gained 0.7% over a five-day trading period ending 04/25/2022, compared to the broader market (S&P500) which declined 2.7% over the same period.
Returns of 0.7% or higher over a five-day period on 1113 occasions out of 2516 (44%); Stock rose in the next five days in 551 of these 1113 instances (50%).
Ten Days: JBLU 6.5%, vs. S&P 500 -5.1%; Outperformed market (19% event probability)
JBLU stock increased 6.5% over the last ten trading days (two weeks), compared to the broader market (S&P500) which declined 5.1%.
Returns of 6.5% or higher over 10-day period on 487 occasions out of 2516 (19%); Stock rose in the next 10 days in 260 of these 487 instances (53%).
Twenty-One Days: JBLU -9.4%, vs. S&P 500 -4%; Underperformed market (13% event probability)
JBLU stock declined 9.4% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which lost 4%.
Returns of -9.4% or lower over 21-day period on 316 occasions out of 2515 (13%); Stock rose in the next 21 days in 172 of these 316 instances (54%).
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 Apr 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
JBLU Return -25% -21% -50%
S&P 500 Return -8% -12% 86%
Trefis Multi-Strategy Portfolio -9% -16% 231%
[1] Month-to-date and year-to-date as of 4/28/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The shares of JetBlue Airways (NASDAQ: JBLU) observed a downtrend as the company reported operational difficulties due to rising fuel prices and elevated pilot attrition – leading to a significantly lower flight completion factor in April. The company has initiated an action plan to improve operational reliability and return to profitability in 2H 2022. While JetBlue’s domestic business is expected to assist earnings and cash generation in the long term, Trefis machine learning engine estimates a 54% chance of a rise in the coming weeks by comparing the recent downtrend with historical stock price movements.
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Five Days: JBLU 0.7%, vs. S&P 500 -2.7%; Outperformed market (44% event probability) JBLU stock gained 0.7% over a five-day trading period ending 04/25/2022, compared to the broader market (S&P500) which declined 2.7% over the same period. Ten Days: JBLU 6.5%, vs. S&P 500 -5.1%; Outperformed market (19% event probability) JBLU stock increased 6.5% over the last ten trading days (two weeks), compared to the broader market (S&P500) which declined 5.1%. Twenty-One Days: JBLU -9.4%, vs. S&P 500 -4%; Underperformed market (13% event probability) JBLU stock declined 9.4% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which lost 4%.
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Five Days: JBLU 0.7%, vs. S&P 500 -2.7%; Outperformed market (44% event probability) JBLU stock gained 0.7% over a five-day trading period ending 04/25/2022, compared to the broader market (S&P500) which declined 2.7% over the same period. Ten Days: JBLU 6.5%, vs. S&P 500 -5.1%; Outperformed market (19% event probability) JBLU stock increased 6.5% over the last ten trading days (two weeks), compared to the broader market (S&P500) which declined 5.1%. Total [2] JBLU Return -25% -21% -50% S&P 500 Return -8% -12% 86% Trefis Multi-Strategy Portfolio -9% -16% 231% [1] Month-to-date and year-to-date as of 4/28/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The shares of JetBlue Airways (NASDAQ: JBLU) observed a downtrend as the company reported operational difficulties due to rising fuel prices and elevated pilot attrition – leading to a significantly lower flight completion factor in April. Five Days: JBLU 0.7%, vs. S&P 500 -2.7%; Outperformed market (44% event probability) JBLU stock gained 0.7% over a five-day trading period ending 04/25/2022, compared to the broader market (S&P500) which declined 2.7% over the same period. Total [2] JBLU Return -25% -21% -50% S&P 500 Return -8% -12% 86% Trefis Multi-Strategy Portfolio -9% -16% 231% [1] Month-to-date and year-to-date as of 4/28/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3567.0
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2022-04-29 00:00:00 UTC
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Chile's March copper production falls 7.2%, manufacturing output up 3.3%
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AAL
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https://www.nasdaq.com/articles/chiles-march-copper-production-falls-7.2-manufacturing-output-up-3.3
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nan
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nan
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Adds details of manufacturing and copper numbers
SANTIAGO, April 29 (Reuters) - Copper output in Chile, the world's largest producer of the metal, fell 7.2% year on year to 462,360 tonnes in March, the country's statistics agency INE said on Friday.
The agency said that there was "less ore processing in important companies in the sector."
The Chilean Copper Commission (Cochilco) has said drops in production have been due to operational issues and water supply issues in certain mines.
Both Anglo American AAL.L and Antofagasta ANTO.L have reported drops in production due to water availability issues exacerbated by a historic drought that's affected the country for more than a decade.
Manufacturing output on the other hand rose 3.3% year-over-year in March while a Reuters Poll expected a drop of -1.1%. The March bump follows a -2.2% dip in February.
In its report, INE said the rise in manufacturing was largely due to a 5% year-on-year increase in the production of food products. This was pushed by "greater production of bread, due to an increase in national demand," the agency said.
Manufacturing of mining equipment and machinery also rose due to an increase in orders from mining companies.
(Reporting by Fabian Cambero; writing by Alexander Villegas; Editing by Nick Zieminski)
((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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Both Anglo American AAL.L and Antofagasta ANTO.L have reported drops in production due to water availability issues exacerbated by a historic drought that's affected the country for more than a decade. Adds details of manufacturing and copper numbers SANTIAGO, April 29 (Reuters) - Copper output in Chile, the world's largest producer of the metal, fell 7.2% year on year to 462,360 tonnes in March, the country's statistics agency INE said on Friday. Manufacturing output on the other hand rose 3.3% year-over-year in March while a Reuters Poll expected a drop of -1.1%.
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Both Anglo American AAL.L and Antofagasta ANTO.L have reported drops in production due to water availability issues exacerbated by a historic drought that's affected the country for more than a decade. Adds details of manufacturing and copper numbers SANTIAGO, April 29 (Reuters) - Copper output in Chile, the world's largest producer of the metal, fell 7.2% year on year to 462,360 tonnes in March, the country's statistics agency INE said on Friday. The Chilean Copper Commission (Cochilco) has said drops in production have been due to operational issues and water supply issues in certain mines.
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Both Anglo American AAL.L and Antofagasta ANTO.L have reported drops in production due to water availability issues exacerbated by a historic drought that's affected the country for more than a decade. Adds details of manufacturing and copper numbers SANTIAGO, April 29 (Reuters) - Copper output in Chile, the world's largest producer of the metal, fell 7.2% year on year to 462,360 tonnes in March, the country's statistics agency INE said on Friday. The Chilean Copper Commission (Cochilco) has said drops in production have been due to operational issues and water supply issues in certain mines.
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Both Anglo American AAL.L and Antofagasta ANTO.L have reported drops in production due to water availability issues exacerbated by a historic drought that's affected the country for more than a decade. The agency said that there was "less ore processing in important companies in the sector." The Chilean Copper Commission (Cochilco) has said drops in production have been due to operational issues and water supply issues in certain mines.
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3568.0
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2022-04-29 00:00:00 UTC
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Norway's Norse hopes to crack budget transatlantic airline market
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AAL
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https://www.nasdaq.com/articles/norways-norse-hopes-to-crack-budget-transatlantic-airline-market
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nan
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By Victoria Klesty
OSLO, April 29 (Reuters) - New Nordic airline Norse Atlantic NORSE.OL started ticket sales on Friday for budget transatlantic flights, hoping to succeed where Norwegian Air spectacularly failed, by betting on aircraft leased at rock-bottom rates during the pandemic.
Having assembled a fleet of widebody planes, Norway-based Norse will initially connect U.S. destinations New York, Fort Lauderdale, Los Angeles and Orlando with Norway's capital Oslo, and with London and Paris to follow.
Its first flight will take off in Oslo on June 14, heading for New York's John F. Kennedy International Airport, its booking system showed.
While the favourable terms of its leases and the fuel-efficiency of its modern aircraft should give it an edge on cost, the question is whether it can fill the planes and generate enough revenue to be profitable.
"It is always a bit of a risk when you are in the airline business but we think it's a pretty good timing," Chief Executive Bjoern Tore Larsen told Reuters.
Larsen, an aviation enthusiast and the company's biggest shareholder, made his fortune in the shipping industry and controls ship management group OSM Maritime.
The United States is his personal favourite travel destination, and he believes there is a massive demand for budget travel between Europe and North America.
"We are pretty sure we will fill these aircraft with both Americans going to Europe and Europeans going to America," he added.
Uncertainty about post-pandemic travel patterns and rising energy costs are worries for the airline industry, and travel restrictions remain, especially in Asia.
"What we see from the companies that have started reporting is that there are strong booking numbers for cross-Atlantic flights, so I think demand is there," Larsen said.
REPLACING NORWEGIAN?
The pandemic sent the airline industry into a tailspin with many players racking up losses and ridding themselves of overcapacity where possible, meaning there were rich pickings for anyone interested in finding bargains.
One of the biggest cutbacks came from the collapse of Norwegian Air NAS.OL, which axed its long-haul operation during bankruptcy proceedings, emerging last year in a slimmed-down version as a regional European carrier.
Enter Norse, which took delivery of its first Boeing BA.N 787-9 Dreamliner in December 2021 and plans to have a fleet of 15 leased aircraft.
Four of the aircraft will initially be on an 18-month sub-lease to Spain's Air Europa, however, which Norse said would generate a positive cash flow.
Under the arrangements with its lessors, Norse at the outset only has to pay for the time the aircraft are being used, known as "power-by-the-hour" contracts, which means some of the pressure to keep the aircraft flying is off.
"So we will start out carefully and try to match supply and demand, but we won't go along and fly half-full aircraft," Larsen said.
While rising fuel costs will "no doubt" add to ticket prices, Larsen said the inflationary pressure was limited and not enough to significantly impact demand.
Bjoern Kjos, founder and former CEO of Norwegian Air, pioneered budget cross-Atlantic flights and the airline became the biggest non-North American airline to serve New York City with him at the helm.
Having retired from Norwegian Air in 2019, Kjos was an early investor in Norse Atlantic and has a seat on its board.
"We have a great cost position - Dreamliner is the aircraft you need to fly really, you have to fly modern aircraft, especially with the oil prices we have now," Kjos said.
FEEDER NETWORK
As a pure long-haul player, Norse Atlantic lacks a "feeder" service from regional connections, which could make it hard to sell seats beyond top routes such as London-New York, said James Halstead, managing partner at consultancy Aviation Strategy.
"Very few (long-haul) routes around the world survive on pure "O&D" traffic," Halstead said, referring to traffic from a single origin to a single destination.
Norwegian Air is, however, in talks with Norse to see whether schedules could align for it to act as a feeder service, Norwegian Air's Chief Executive Geir Karlsen said.
"If we can collaborate on some front on the destinations, then we are happy to do so," he said.
Larsen said he expected to launch flights from Paris to the United States this summer, and to fly London-New York before the end of the year.
(Reporting by Victoria Klesty Editing by Mark Potter)
((victoria.klesty@thomsonreuters.com; +47 2331 6592; Reuters Messaging: victoria.klesty.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Victoria Klesty OSLO, April 29 (Reuters) - New Nordic airline Norse Atlantic NORSE.OL started ticket sales on Friday for budget transatlantic flights, hoping to succeed where Norwegian Air spectacularly failed, by betting on aircraft leased at rock-bottom rates during the pandemic. Having assembled a fleet of widebody planes, Norway-based Norse will initially connect U.S. destinations New York, Fort Lauderdale, Los Angeles and Orlando with Norway's capital Oslo, and with London and Paris to follow. As a pure long-haul player, Norse Atlantic lacks a "feeder" service from regional connections, which could make it hard to sell seats beyond top routes such as London-New York, said James Halstead, managing partner at consultancy Aviation Strategy.
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By Victoria Klesty OSLO, April 29 (Reuters) - New Nordic airline Norse Atlantic NORSE.OL started ticket sales on Friday for budget transatlantic flights, hoping to succeed where Norwegian Air spectacularly failed, by betting on aircraft leased at rock-bottom rates during the pandemic. As a pure long-haul player, Norse Atlantic lacks a "feeder" service from regional connections, which could make it hard to sell seats beyond top routes such as London-New York, said James Halstead, managing partner at consultancy Aviation Strategy. Norwegian Air is, however, in talks with Norse to see whether schedules could align for it to act as a feeder service, Norwegian Air's Chief Executive Geir Karlsen said.
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By Victoria Klesty OSLO, April 29 (Reuters) - New Nordic airline Norse Atlantic NORSE.OL started ticket sales on Friday for budget transatlantic flights, hoping to succeed where Norwegian Air spectacularly failed, by betting on aircraft leased at rock-bottom rates during the pandemic. Bjoern Kjos, founder and former CEO of Norwegian Air, pioneered budget cross-Atlantic flights and the airline became the biggest non-North American airline to serve New York City with him at the helm. "We have a great cost position - Dreamliner is the aircraft you need to fly really, you have to fly modern aircraft, especially with the oil prices we have now," Kjos said.
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The United States is his personal favourite travel destination, and he believes there is a massive demand for budget travel between Europe and North America. Bjoern Kjos, founder and former CEO of Norwegian Air, pioneered budget cross-Atlantic flights and the airline became the biggest non-North American airline to serve New York City with him at the helm. "We have a great cost position - Dreamliner is the aircraft you need to fly really, you have to fly modern aircraft, especially with the oil prices we have now," Kjos said.
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3569.0
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2022-04-28 00:00:00 UTC
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5 Best Travel Stocks To Watch In May 2022
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https://www.nasdaq.com/articles/5-best-travel-stocks-to-watch-in-may-2022
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nan
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5 Travel Stocks To Add To Your May 2022 Watchlist
As demand for spring and summer travel remains high, travel stocks could be worth keeping tabs on in the stock market. Despite the higher flight ticket prices, travelers appear to be shrugging off the increased costs from rising inflation. After all, who couldn’t use a vacation after being stuck at home for so long? According to the U.S. Travel Association, travel spending reached $83 billion in February 2022, just 6% below pre-pandemic levels. As such, there could still be room for a bigger rebound.
Take United Airlines (NASDAQ: UAL) for instance. For its second quarter, United is expecting the highest quarterly sales in its history, with revenue per passenger mile up 17% over 2019. In addition to that, it is also forecasting a 10% operating margin. Next, we also have Delta Air Lines (NYSE: DAL). Notably, Delta expects a return to profit this quarter thanks to a jump in bookings and fares. Its forecasts suggest that second-quarter capacity will be at 84% of 2019 levels. With these airlines feeling bullish on their prospects, here are five of the best travel stocks to watch in the stock market today.
Travel Stocks To Buy [Or Sell] Right Now
JetBlue Airways (NASDAQ: JBLU)
Expedia Group Inc. (NASDAQ: EXPE)
Booking Holdings Inc. (NASDAQ: BKNG)
American Airlines Group Inc. (NASDAQ: AAL)
Trip.com Group Ltd. (NASDAQ: TCOM)
JetBlue
Starting us off is the low-cost airline company, JetBlue. The company operates over 1,000 flights daily and serves 100 domestic and international network destinations. These destinations span the U.S., Mexico, the Caribbean, Central America, South America, and Europe. Additionally, JetBlue’s differentiated product combined with its competitive cost structure enables JetBlue to compete effectively in high-value geographies. Earlier this week, JetBlue reported its earnings for the first quarter of 2022.
Jumping in, the company brought in $1.73 billion in revenue. For comparison, this is 7.2% short of the pre-pandemic revenues in 2019. Nonetheless, revenue more or less matched the figures analysts were expecting. As for its earnings, JetBlue reported a narrower-than-expected loss of $0.79 per share for the quarter. Despite all this, the company sees a strong acceleration in demand. “We delivered positive year-over-three revenue growth in the month of March as we exited the quarter with tremendous revenue momentum driven by very strong underlying travel demand across all of our core segments,” said Robin Hayes, JetBlue’s CEO. As the low-cost airline gets back on its feet, will you be watching JBLU stock?
[Read More] Stock Market Today: Dow Jones, S&P 500 Climbs; Meta Beat Expectations With Solid Earnings
Expedia Group
Following that is Expedia, an online travel shopping company that serves consumers and small businesses in the travel industry. Through its wide array of websites, consumers have access to Expedia’s travel fare aggregators and travel metasearch engines. As countries around the world start to reopen their borders to welcome travelers, I could see why investors may be keen on investing in EXPE stock. Yesterday, Expedia and Qtech Software, a travel tech software provider, announced an expanded collaboration.
Namely, the collaboration aims to provide access to Expedia’s travel supply to travel business globally through OTRAMS GO, Qtech’s flagship platform. Prior to this collaboration, smaller travel businesses were forced to integrate inventories from wholesalers. This ate into their margins and restricted its range of hotel offerings to customers. However, through OTRAMS GO, travel businesses of all sizes will now have greater access to premium hotel content and technology. All in all, this will help generate growth, higher revenue, and improve efficiency in the travel ecosystem. Given this expanded collaboration, should you invest in EXPE stock?
Booking Holdings
Booking Holdings (BKNG) is the world’s leading provider of online travel and related services. The company renders its services to consumers and local partners in more than 200 countries and territories through its notable brands. These include the likes of Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK, and OpenTable. In 2019, consumers booked 845 million room nights of accommodation, 77 million rental car days, and 7 million airplane tickets using its websites.
In a note issued to investors on Monday, Jefferies (NYSE: JEF) lifted its first-quarter 2022 earnings per share estimates for BKNG. Analyst J. Colantuoni now forecasts that the BKNG will post earnings per share of $0.75 for the quarter, up from its prior forecast of $0.73. Jefferies also retains its Buy rating and has a $2,900 price target on BKNG stock. BKNG will also be reporting its first-quarter 2022 financial results on Wednesday next week. As such, will you be eyeing BKNG stock?
[Read More] 5 Top Automotive Stocks For Your Late April 2022 Watchlist
American Airlines
Another top travel stock to watch is American Airlines. In short, the company is a leading name in the global air travel industry. On average, it operates nearly 6,700 daily flights to almost 350 destinations across 50 countries. On top of that, American is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. Last Thursday, American reported its first-quarter 2022 financial results.
For starters, the airline brought in a revenue of $8.9 billion. This represents an impressive recovery to 84% of the revenue generated in the same period in 2019. Looking ahead, the American expects second-quarter capacity to be approximately 92% to 94% of its second-quarter 2019 figures. In fact, March has been the first month since the pandemic where its revenues surpassed 2019 levels. Bookings since then have continued to rise. Besides that, the company also expects total revenue to be 6% to 8% higher than the second quarter of 2019. As American continues its fight in returning to profitability, should you add AAL stock to your watchlist?
[Read More] 3 Tech Stocks To Watch Today After Earnings Reports
Trip.com
Finally, we have Trip.com, a leading online travel company that serves as a one-stop travel platform. It integrates a comprehensive suite of travel products and services and differentiated travel content. Impressively, it is currently one of the largest online travel agencies in China and also one of the largest travel service providers in the world. In March, the company reported its full-year financials for the fiscal year 2021.
For starters, net revenue for the year came in at $3.1 billion, representing a 9% increase in year-over-year revenue. Besides that, accommodation reservation revenue was $1.3 billion, up by 14% from 2020. This accounts for 41% of total revenue, a rather sizable chunk. In the past year, the company has been focusing on expanding its product offerings and improving its content capabilities. All of which will pave the way for its growth in the long term. Moving forward, Trip.com will continue to focus on its recovery in the Chinese domestic market while remaining ambitious on its vision towards global travel reopening. Given the positive outlook, should you buy TCOM stock?
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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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Travel Stocks To Buy [Or Sell] Right Now JetBlue Airways (NASDAQ: JBLU) Expedia Group Inc. (NASDAQ: EXPE) Booking Holdings Inc. (NASDAQ: BKNG) American Airlines Group Inc. (NASDAQ: AAL) Trip.com Group Ltd. (NASDAQ: TCOM) JetBlue Starting us off is the low-cost airline company, JetBlue. As American continues its fight in returning to profitability, should you add AAL stock to your watchlist? As countries around the world start to reopen their borders to welcome travelers, I could see why investors may be keen on investing in EXPE stock.
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Travel Stocks To Buy [Or Sell] Right Now JetBlue Airways (NASDAQ: JBLU) Expedia Group Inc. (NASDAQ: EXPE) Booking Holdings Inc. (NASDAQ: BKNG) American Airlines Group Inc. (NASDAQ: AAL) Trip.com Group Ltd. (NASDAQ: TCOM) JetBlue Starting us off is the low-cost airline company, JetBlue. As American continues its fight in returning to profitability, should you add AAL stock to your watchlist? [Read More] Stock Market Today: Dow Jones, S&P 500 Climbs; Meta Beat Expectations With Solid Earnings Expedia Group Following that is Expedia, an online travel shopping company that serves consumers and small businesses in the travel industry.
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Travel Stocks To Buy [Or Sell] Right Now JetBlue Airways (NASDAQ: JBLU) Expedia Group Inc. (NASDAQ: EXPE) Booking Holdings Inc. (NASDAQ: BKNG) American Airlines Group Inc. (NASDAQ: AAL) Trip.com Group Ltd. (NASDAQ: TCOM) JetBlue Starting us off is the low-cost airline company, JetBlue. As American continues its fight in returning to profitability, should you add AAL stock to your watchlist? 5 Travel Stocks To Add To Your May 2022 Watchlist As demand for spring and summer travel remains high, travel stocks could be worth keeping tabs on in the stock market.
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Travel Stocks To Buy [Or Sell] Right Now JetBlue Airways (NASDAQ: JBLU) Expedia Group Inc. (NASDAQ: EXPE) Booking Holdings Inc. (NASDAQ: BKNG) American Airlines Group Inc. (NASDAQ: AAL) Trip.com Group Ltd. (NASDAQ: TCOM) JetBlue Starting us off is the low-cost airline company, JetBlue. As American continues its fight in returning to profitability, should you add AAL stock to your watchlist? Notably, Delta expects a return to profit this quarter thanks to a jump in bookings and fares.
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2022-04-28 00:00:00 UTC
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United Airlines Stock Stands to Benefit From International Travel Market
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https://www.nasdaq.com/articles/united-airlines-stock-stands-to-benefit-from-international-travel-market
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Recently, United Airlines (NASDAQ:UAL) announced that it will be dramatically increasing its capacity of Transatlantic flights. This comes ahead of the summer flying season, as United seeks to capitalize on a swift recovery in passenger traffic levels. Already, domestic U.S. travel has enjoyed a solid rebound, and United’s management team is now placing a significant bet on a similar upswing overseas. Here’s what it means for UAL stock.
United already had significantly more international flights than either Delta (NYSE:DAL) or American Airlines (NASDAQ:AAL) as per data from research firm Cirium. Now, with this added capacity, United will be far and away the largest U.S.-based international carrier. The company plans to take its capacity to fully 25% above its pre-pandemic levels. That’s a huge increase given the remaining amount of uncertainty in the global travel market. United will move to having 22 daily flights between the U.S. and London, and is adding flights to new destinations such as the Canary Islands of Spain and Portugal’s Azores Islands among others.
7 Long-Term Stocks to Buy for a Robust Retirement
International flying is generally attractive for airlines. That’s not only for the higher ticket yields, but also the broader possibilities. A bigger international network improves the value of code-sharing and alliance programs with international carriers. Loyalty programs are a big piece of the pie for airlines, so United is making a power play to bolster its standing on that front.
For another, with business travel being slower to recover, premium international destinations could become the major new growth driver for airlines as they seek to adapt to changing conditions. Tourism-centered routes such as to the Canaries could represent an interesting strategic shift for United over the longer-term.
A big part of this strategy swings on higher fuel costs. Given the far longer routes we’re talking about here, it will be important to maintain high load factors on these flights. Flying a half-empty jet over the Atlantic comes at a higher cost than doing so between New York and Boston. So United will need to get the math right in terms of which routes it adds and at what capacity. But it’s nice to see them being willing to take a big swing like this. United’s move represents an airline that is lifting off out of crisis mode and is operating from a position of strength. That could well reflect itself in the value of UAL stock going forward, as well.
On the date of publication, Ian Bezek 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 United Airlines Stock Stands to Benefit From International Travel 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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United already had significantly more international flights than either Delta (NYSE:DAL) or American Airlines (NASDAQ:AAL) as per data from research firm Cirium. Already, domestic U.S. travel has enjoyed a solid rebound, and United’s management team is now placing a significant bet on a similar upswing overseas. For another, with business travel being slower to recover, premium international destinations could become the major new growth driver for airlines as they seek to adapt to changing conditions.
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United already had significantly more international flights than either Delta (NYSE:DAL) or American Airlines (NASDAQ:AAL) as per data from research firm Cirium. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Recently, United Airlines (NASDAQ:UAL) announced that it will be dramatically increasing its capacity of Transatlantic flights. Now, with this added capacity, United will be far and away the largest U.S.-based international carrier.
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United already had significantly more international flights than either Delta (NYSE:DAL) or American Airlines (NASDAQ:AAL) as per data from research firm Cirium. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Recently, United Airlines (NASDAQ:UAL) announced that it will be dramatically increasing its capacity of Transatlantic flights. The post United Airlines Stock Stands to Benefit From International Travel Market appeared first on InvestorPlace.
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United already had significantly more international flights than either Delta (NYSE:DAL) or American Airlines (NASDAQ:AAL) as per data from research firm Cirium. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Recently, United Airlines (NASDAQ:UAL) announced that it will be dramatically increasing its capacity of Transatlantic flights. Now, with this added capacity, United will be far and away the largest U.S.-based international carrier.
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3571.0
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2022-04-28 00:00:00 UTC
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Glencore cuts output guidance for copper, zinc, cobalt
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AAL
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https://www.nasdaq.com/articles/glencore-cuts-output-guidance-for-copper-zinc-cobalt
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Updates with CEO quote, numbers
LONDON, April 28 (Reuters) - Miner and trader Glencore GLEN.L lowered its 2022 production guidance on copper, zinc and cobalt after operational challenges and COVID-related absenteeism in the first quarter drove output for some metals lower.
It upped its output guidance for nickel and ferrochrome, however, and said it expected its full-year trading earnings before interest and taxes (EBIT) to "comfortably" exceed $3.2 billion, which is the top of the range of its long-term annual guidance. The bottom end is $2.2 billion.
Prices for many of the metals Glencore mines remain close to their record highs of 2021, reflecting shortages during protracted COVID-related lockdowns and also the impact of Russia's war in Ukraine.
The London-listed company reported a 14% fall in copper production in the three months to the end of March and a 15% drop in zinc, mostly due to delays at its Zhairem operation in Kazakhstan.
"Full-year guidance is reduced for copper and cobalt, but increased for nickel and ferrochrome, while the slower than expected ramp-up at Zhairem reduces full-year zinc production guidance by 9%," Chief Executive Gary Nagle said in a statement.
Glencore joined other global miners including Anglo American AAL.L and BHP Group BHP.AX in warning about future production targets, laying part of the blame on labour shortages linked to the COVID-19 pandemic.
The company saw a 16% increase in thermal coal production to 28.5 million tonnes in the first quarter, after completing the acquisition of the stake it did not already own in Colombia's Cerrejon mine in January.
(Reporting by Clara Denina; editing by John Stonestreet)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Glencore joined other global miners including Anglo American AAL.L and BHP Group BHP.AX in warning about future production targets, laying part of the blame on labour shortages linked to the COVID-19 pandemic. Prices for many of the metals Glencore mines remain close to their record highs of 2021, reflecting shortages during protracted COVID-related lockdowns and also the impact of Russia's war in Ukraine. The London-listed company reported a 14% fall in copper production in the three months to the end of March and a 15% drop in zinc, mostly due to delays at its Zhairem operation in Kazakhstan.
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Glencore joined other global miners including Anglo American AAL.L and BHP Group BHP.AX in warning about future production targets, laying part of the blame on labour shortages linked to the COVID-19 pandemic. Updates with CEO quote, numbers LONDON, April 28 (Reuters) - Miner and trader Glencore GLEN.L lowered its 2022 production guidance on copper, zinc and cobalt after operational challenges and COVID-related absenteeism in the first quarter drove output for some metals lower. Prices for many of the metals Glencore mines remain close to their record highs of 2021, reflecting shortages during protracted COVID-related lockdowns and also the impact of Russia's war in Ukraine.
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Glencore joined other global miners including Anglo American AAL.L and BHP Group BHP.AX in warning about future production targets, laying part of the blame on labour shortages linked to the COVID-19 pandemic. Updates with CEO quote, numbers LONDON, April 28 (Reuters) - Miner and trader Glencore GLEN.L lowered its 2022 production guidance on copper, zinc and cobalt after operational challenges and COVID-related absenteeism in the first quarter drove output for some metals lower. It upped its output guidance for nickel and ferrochrome, however, and said it expected its full-year trading earnings before interest and taxes (EBIT) to "comfortably" exceed $3.2 billion, which is the top of the range of its long-term annual guidance.
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Glencore joined other global miners including Anglo American AAL.L and BHP Group BHP.AX in warning about future production targets, laying part of the blame on labour shortages linked to the COVID-19 pandemic. Updates with CEO quote, numbers LONDON, April 28 (Reuters) - Miner and trader Glencore GLEN.L lowered its 2022 production guidance on copper, zinc and cobalt after operational challenges and COVID-related absenteeism in the first quarter drove output for some metals lower. It upped its output guidance for nickel and ferrochrome, however, and said it expected its full-year trading earnings before interest and taxes (EBIT) to "comfortably" exceed $3.2 billion, which is the top of the range of its long-term annual guidance.
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3572.0
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2022-04-27 00:00:00 UTC
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3 Airline Stocks That Could Climb as Mask Mandate Lifts
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AAL
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https://www.nasdaq.com/articles/3-airline-stocks-that-could-climb-as-mask-mandate-lifts
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After the pandemic’s grounding, travelers are returning to the open skies boosting airline forecasts and investor expectations for carrier stocks.
American Airlines (AAL): Expects to turn a profit in the second quarter with business travel returning to 90% of 2019 levels.
Delta Air Lines (DAL): Posted a solid first-quarter revenue beat and expects to generate 93% – 97% sales
growth despite reaching only 84% of 2019 capacity.
United Airlines Holdings (UAL): Expects a solid 10% operating margin in the second quarter, with double-digit margins until 2026.
Click to Enlarge
Airline stocks are flying high after a federal judge nullified the national mask mandate on public transportation. The pandemic has been a horror show for the airline industry, but investor interest in the sector is booming with the mask mandate lifted.
Business travel has been a major money-spinner for airline businesses. However, the pandemic dented that market in a big way, but recent developments point to much brighter prospects. Morgan Stanley analyst Ravi Shanker expects another wave of pent-up demand with the removal of the mask mandate.
Nevertheless, the effects of the pandemic era have been crippling, and the long-term financial impact on airline companies cannot be denied. Therefore, a little skepticism may be in order when evaluating airline stocks.
7 Dividend Stocks Paying Over 5% to Buy Now
Let’s now look at three airline stocks that can climb higher after removing the mask mandate. These stocks currently rank as the top three holdings among the 52 names in the exchange-traded fund portfolio of U.S. Global Jets ETF (NYSEARCA:JETS) [see above chart].
AAL American Airlines Group Inc. $18.77
DAL Delta Air Lines, Inc. $41.90
UAL United Airlines Holdings, Inc. $48.86
American Airlines Group Inc. (AAL)
Source: GagliardiPhotography / Shutterstock.com
American Airlines (NASDAQ:AAL) has been in the news for its relatively impressive earnings results. Though it lost $1.64 billion during the first quarter, it expects to turn a profit in the spring due to robust travel demand. It reported that March was the first month where revenues exceeded 2019 levels. Hence, AAL stock seems back in business after a horrible couple of years.
Air travel was restrained earlier in the year due to omicron, but with passengers returning in March, American reported a profit. The company revenues more than doubled from the prior-year period to roughly 84% of pre-pandemic levels for Q1.
The airliner estimates business travel to be roughly 90% of 2019 levels in the second quarter. Moreover, it also expects to generate a pre-tax profit due to a healthy bump in bookings. That will help offset the rampant increase in oil prices due to the Russia/Ukraine war.
Nevertheless, the massive increase in demand will help curb the fuel nightmare.
Delta Air Lines, Inc. (DAL)
Source: Markus Mainka / Shutterstock.com
Delta Air Lines (NYSE:DAL) is another airline industry leader that pleasantly surprised investors with its earnings results. It beat its Q1 sales estimates by an incredible $360 million and guided second-quarter sales to around 2019 levels. The company has shown that airlines can effectively survive and grow despite multiple events holding back its business.
Delta has guided its capacity to reach 84% of 2019 levels during the second quarter as we advance. Despite being 16% behind full capacity, it expects total revenue growth of 93% to 97% compared to the second quarter of 2019. Additionally, it forecasts margins to reach an impressive 13% despite increased fuel prices.
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With the normalization of fuel costs and strong revenue trends, the airliner is poised for rapid recovery. Moreover, it may also surpass its full-year record EPS of $7.31 by 2024.
DAL stock currently trades at just 0.6 times forward sales to further sweeten the deal, which is significantly lower than the industry averages.
United Airlines Holdings, Inc. (UAL)
Source: travelview / Shutterstock.com
United Airlines Holdings (NASDAQ:UAL) is another legacy carrier that’s been on the move in the stock market. Similar to American and Delta, it expects a spectacular showing during the second quarter. The Chicago-based airline forecasts a 10% operating margin and record quarterly revenues in the upcoming quarter.
Moreover, it expects to generate a profit this year, for the first time since the pandemic ravaged proceedings.
The fuel crisis and omicron weighed down the company’s results during the first quarter. Hence, it posted a hefty $1.4 billion loss on revenues of $7.57 billion. The sales figure is well below the $9.59 billion it made in 2019 but is more than double last year. Moreover, it expects 9% and 14% pre-tax margins in 2023 and 2026, respectively.
With sales growing over $50 billion by 2026, it could be on a path to a massive increase in pre-tax income. Moreover, due to the massive sell-off in the past couple of years, UAL stock now trades below one times forward sales estimates.
On the date of publication, Muslim 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 3 Airline Stocks That Could Climb as Mask Mandate Lifts appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL): Expects to turn a profit in the second quarter with business travel returning to 90% of 2019 levels. AAL American Airlines Group Inc. $18.77 DAL Delta Air Lines, Inc. $41.90 UAL United Airlines Holdings, Inc. $48.86 American Airlines Group Inc. (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) has been in the news for its relatively impressive earnings results. Hence, AAL stock seems back in business after a horrible couple of years.
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AAL American Airlines Group Inc. $18.77 DAL Delta Air Lines, Inc. $41.90 UAL United Airlines Holdings, Inc. $48.86 American Airlines Group Inc. (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) has been in the news for its relatively impressive earnings results. American Airlines (AAL): Expects to turn a profit in the second quarter with business travel returning to 90% of 2019 levels. Hence, AAL stock seems back in business after a horrible couple of years.
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AAL American Airlines Group Inc. $18.77 DAL Delta Air Lines, Inc. $41.90 UAL United Airlines Holdings, Inc. $48.86 American Airlines Group Inc. (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) has been in the news for its relatively impressive earnings results. American Airlines (AAL): Expects to turn a profit in the second quarter with business travel returning to 90% of 2019 levels. Hence, AAL stock seems back in business after a horrible couple of years.
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American Airlines (AAL): Expects to turn a profit in the second quarter with business travel returning to 90% of 2019 levels. AAL American Airlines Group Inc. $18.77 DAL Delta Air Lines, Inc. $41.90 UAL United Airlines Holdings, Inc. $48.86 American Airlines Group Inc. (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) has been in the news for its relatively impressive earnings results. Hence, AAL stock seems back in business after a horrible couple of years.
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3573.0
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2022-04-27 00:00:00 UTC
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Tech Analyst Beth Kindig Talks About Finding Stock Opportunities
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https://www.nasdaq.com/articles/tech-analyst-beth-kindig-talks-about-finding-stock-opportunities
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In this episode of the Motley Fool Money podcast, Motley Fool analyst Jim Gillies discusses:
American (NASDAQ: AAL), United (NASDAQ: UAL), and the other major U.S. carriers.
AT&T's (NYSE: T) timing with the spinoff of WarnerMedia.
How HBO Max is gaining subscribers.
Sleep Number's (NASDAQ: SNBR) cash flow being better than its stock price would indicate.
Also, Motley Fool analyst Deidre Woollard talks with Beth Kindig, lead tech analyst for the I/O Fund, about where she's finding opportunities in the recent downturn among tech stocks.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on April 21, 2022.
Chris Hill: We've got airlines stocks, streaming media, and a conversation with tech analyst Beth Kindig. Motley Fool Money starts now. I'm Chris Hill, and joining me today from Motley Fool Canada, Jim Gillies. Good to see you. Thanks for being here.
Jim Gillies: Thanks for inviting me.
Chris Hill: We're going to get to Tesla's results on tomorrow's show. Today, I want to start with a different kind of transportation. American Airlines and United Airlines -- both out with first-quarter results. They both had losses, but they're both predicting profits for the second quarter. Shares of both up around 10%. A couple of ways we can go here, but just on the surface, what is your reaction to this move? Because it seems like we do this dance, we, collectively, as investors, do this [laughs] dance at least once a year or so, where we just get excited about the prospect of major airlines, and we bid up their stocks.
Jim Gillies: Yes, and I'm going to start off by saying that I am a cash-flow, value-style investor. That is how I approach pretty much all companies. But that approach has me looking at the airlines and essentially saying, "These are not long-term investments you want to make." I understand that the market is very, very excited today. American Airlines, their revenue passenger miles nearly doubled year over year. They did lose money on a GAAP basis, but they lost less than expected, and they are predicting profitability this quarter. They are still burning cash, but they cut their cash burn by about 90%. Now last year, this is not really a fair comparison in a pandemic-restricted universe, but they burned about $7.2 billion in operating cash flow last year, burned about $770 million this year.
United Airlines, much the same story -- they beat expectations. They are also saying, hey, we're going to be profitable this quarter, Q2. In fact, their headline in the press release was they expect the "highest quarterly revenue in company history in Q2". Some might say that's bold, some might say, "Boy, that's lipstick on a pig", but they actually reported free cash flow this quarter as well. They generated $1.1 billion, stock is off to the races. This all sounds good, and of course, they're part of the big four oligopoly in the U.S.
All of that said, I find the airlines uninvestable over the long term. If you want to play a recovery, I don't think that's necessarily a bad thesis. But please don't be under the impression you're going to buy and hold these things, and have multibaggers over a 30-year period. These are not companies to own for the long term. When they do generate cash flow -- and they did, United generated about $11.5 billion in free cash flow from 2010. I'm measuring from the date of the Continental merger with United through to 2019, the last year untouched by the pandemic. They did about $11.5 billion in free cash. They spent nearly $9 billion on buybacks. The share count today is back around where it was at the time of the merger because they frittered away all of the goodwill from buybacks during the pandemic.
Maybe "frittered away" is unfair -- it was a pandemic. But similarly, American Airlines, they're free cash flow negative over that decade. They also went hard into repurchases, debt fueled. Their share count today is also back above where it was following the last time they went bankrupt, and I'm going to come back to that point in a minute. Basically, all of the cash generated -- or in American's case, debt -- over most of the last decade, pre-pandemic, got spent on buying back stock, and long-term investors today are back to companies that are the same size, share-count wise, and you've got wonder: If I was a long-term shareholder, what did I get out of it? The answer is this is not a long-term value-creating industry. It's cyclical, and these management teams have shown time and again that they will not put up reserves during good times that help them in bad times.
My solution here is, I just avoid the whole damn thing. I don't go into airlines because ... I did mention, talking about American Airlines -- the last time they emerged from bankruptcy, which I believe was 2011. These are companies that routinely go bankrupt when they hit bad times because they don't put up those reserves. I understand the pandemic is a once-in-a-lifetime thing, so I go back, -- well, maybe they deserve some government support to get them through then, one does wonder what their excuse was the last time. In Canada, our flagship carrier, Air Canada, they last went bankrupt in 2004. Today, the stock is fine. But you don't get the long-term multibagger returns that we, as Fools, want to buy and hold and achieve. The industry itself, it doesn't like to provide that to us. We run into recessions, we run into pandemics, we run into hard times. My preference if you want to play in this space, I could suggest maybe -- and I think this is a good place to go as well, especially in the wake of all of the support the airlines had to have, and the provisions they had to provide for the government for their aid. I kind of like the aircraft leasing operations. AerCap is the big dog in the space, AER on the New York Stock Exchange. They are the world's largest owner of aircraft, and they are leasing it to the airlines. And the airlines aren't going to have a lot of money lying around for capex, so they're going to, at least for the next half-decade or so, prefer to lease these assets. Let someone else own them, we'll pay rent monthly. And I think that's a good place to be if you were one of the aircraft lessors like an AerCap, like an air lease. If you're going to play in this space, I kind of prefer that end rather than the airlines themselves.
Chris Hill: Let's move on to media then. [laughs]
Jim Gillies: Bury that one right away.
Chris Hill: AT&T's latest results come with a side serving of irony because just as AT&T spun off WarnerMedia, which includes HBO, WarnerMedia comes out with the news that HBO and HBO Max added 3 million subscribers in the first quarter. Look, it was just yesterday that Tim Beyers and I were talking about Netflix, which was the story of the day, and one of the things we talked about was, companies like Roku and Disney, the shares of those companies being down. I get the logic here: There were some people on Wall Street who looked at Netflix as the clear leader in subscribers, and said, look if they're losing subs, stands to reason that Roku and Disney might be in similar trouble. WarnerMedia sharing that, "No, we're actually still gaining subs," although granted, they're gaining off of a smaller number than what Netflix has.
Jim Gillies: My take on it, because we talked a lot about Netflix as well yesterday on Motley Fool Live, for example, my take is the danger that I perceive with a Netflix -- and I share the concern that was expressed that "If Netflix is getting whacked, maybe everyone else is and we should be wary of them." My concern is Netflix might have stealthily turned into more of a long-term slow-grower incumbent play like a legacy cable company, that, of course, they were the ones who displaced them back in the day. They may have turned into that and we really didn't notice. It's one quarter, it's not a great quarter. Marketing spend per net customer add, even after you take out the Russia thing, because most of their customer-add miss was Russia. The reactions in Netflix yesterday really looked to me like the market en masse saying, "Yeah, growth expectations are done here," and they were revaluing it that way. It's unfortunate if you're a Netflix shareholder, obviously. As far as Disney+, as far as HBO Max goes, if these services are indeed growing, then to me, it also speaks to, we've become oversubscribed. I don't know how many subscription services you've got in your house. I think I counted yesterday, I've got five. Before we started recording, you mentioned Apple TV+. I remembered I don't have that anymore, but I have in the past. So I wonder if people are also doing a little bit of a la carte shopping. It's like, "Well, I want to catch whatever the latest greatest show on HBO Max is, or I really love the show Always Sunny in Philadelphia. Hey, Disney+ here in Canada has got 13 seasons of that show on it. I'm going to subscribe there, I'm going to let my Netflix subscription lapse for say, four to six months, and I'll come back." If people are starting to do that a la carte shopping, I don't think it bodes well for the largest player in the space, and certainly, I think Netflix said a few things about that.
But I do take the point, Chris, that AT&T spinning off WarnerMedia into Discovery, I believe shareholders got shares in the new WarnerMedia. Hopefully, they held it. But this feels like a very AT&T move. AT&T has not done much for long-term investors either. I'm starting to see a theme in my talking today. They've not done a lot aside from paying them a dividend, and I believe the stock price is, if it's not down from where it was a decade ago, absent dividends, it's close. So enjoy your dividends and I hope you kept the WarnerMedia shares.
Chris Hill: Real quick before we move on. Do you think we're moving to a place with all of the streaming services ... should the expectation for investors be, regardless of the streaming service, that churn is going to be an ever-present challenge to the point where -- don't expect great retention numbers? Say what you want about any of these services and the content they have. They all appear to make it pretty easy to sign up, and they all appear to make it pretty easy to cancel. So if they're doing it on a monthly basis, I just wonder if all investors need to just recalibrate their expectations on churn.
Jim Gillies: Agreed. They make it very easy to get in and get out. Paradoxically, you know what the tool that I found, personally, for keeping me a customer is? Two of my streaming services will allow you to pay for a full year up front, and the price is equivalent to paying for 10 months instead of 12.
Chris Hill: I was just going to say, if all of these services aren't looking at that, I just remember when Disney+ launched and they had the monthly price and they had the annual price, and the annual price was something like 20% less, maybe more?
Jim Gillies: Now that I think about it, I'd actually got three that I pay by the year, and they mix that with content I actually want to watch, which I'm increasingly finding on Disney+ and the Canadian service that supplies HBO. I'd be wary if I'm a Netflix. Some of the stuff that Netflix was talking about going after -- the ad-supported levels? We went to Netflix to get rid of ads. Going after password sharing? I don't think you're going to convert those people who are used to paying nothing for your product. I don't think you're going to convert them to the highest level of your product. I was wary after yesterday's release on Netflix.
Chris Hill: I did an interview earlier this week on another show, and the host asked me for a couple of thoughts on the earnings season that we are just starting, and one of the things I said was, the phrase "supply chain issues" is going to be a phrase we continue to hear from companies, and we heard it today with Sleep Number. Their first-quarter profits were lower than Wall Street was expecting because of supply chain issues. Sleep Number is... for people who have been around the Motley Fool for a long time, this is a stock that has been on the company's radar, on your radar. You and I were chatting earlier this morning: Do you get a sense that the business of Sleep Number is in better shape than the stock price would indicate? Because the stock is down 10% today, and I think it's half of where it was maybe a few months ago.
Jim Gillies: I think it's actually about two-thirds off or maybe more now. I've followed Sleep Number on and off for the better part of two decades now. It used to be called Select Comfort. It was a multiple recommendation back in ye old classic "Hidden Gems" of the mid-2000s. And back then, they had some issues. Look, they grew very well during the housing boom, and, of course, people said, "Yeah, you're selling beds in a housing boom. When the housing market turns, you're going to sell less beds." And they're like, "No, no, we have data that says we're not tied to housing starts. We're fine. We are a growth company, and look at how confident we are." They were debt-free in the early 2000s, they built up a nice cash hoard, and when things started rolling over, they spent the entire cash they generated in the seven or eight years before on buying back their own stock.
And then they took a lot of credit and they maxed it out to buy back more of their own stock because "we are not tied to the housing market." Housing market rolled over. Turns out, they were tied to the housing market, and the stock went from $25 to 25 cents at the bottom. Basically, the only reason they did not go bankrupt is because the bankers wouldn't have been able to run it any better, so they gave them more and more rope. What ended up happening is they issued some new shares, they took on some vulture financing, they got through the credit crisis. All the shares they bought back up flooded back onto the market and then some. But they started to recover. They did survive. The one thing that I really like about Sleep Number as a company is that they are consistently cash-flow positive even though we understand -- "supply chain" -- actually, I'm buying that as an excuse. There's a couple of companies I could point to that I'm not buying that as the rationale, but I'm buying it here because they are making a reasonably complex product, sourcing parts from around the globe, and there is a supply chain snafu right now. So Sleep Number, in their second act, say, from about 2011 onward, they've generated .. this is just barely over a billion-dollar company. They've generated about $1.1 billion, $1.2 billion in total free cash flow over that period. And it's been growing. It's grown about 3.5 times over the past, I think, 11 years since they emerged and had their second act. They've bought back nearly $1.55 billion worth of stock. They've basically taken all their cash flow, again, kind of got them in trouble before the housing market rolled over a lifetime ago. But this time, it's been a real drop in their share count. They have bought back 60% of their stock.
The difference between the amount of cash they've generated and the amount they bought back has been debt-fueled, but their credit line is a lot better this time in terms of it, and they are still very, very cash-flow positive. So I know the stock is down today, it's down about 10%, 12%. I know it's significantly down from where it was a year ago. People are clearly looking at what happened the last time a market rolled over, a housing market. This time, it's people have been stuck in their homes for two years through the pandemic. They put money into their homes, "Hey, let's buy a new bed." I think people are inferring the same thing's happening, and I'm looking at this going, "I'm interested in the stock for the first time in probably a decade." I'm now interested again, because again, the stock price is about double where it was, where it maxed out in the pre-housing crisis days. But the share count is 60% less. So it's almost like the share price today is arguably, or the market cap is less today than it was. And they have demonstrated they can generate and grow their cash flow. And that, to me, in any investing environment, is very interesting. And today, you're paying about 10.5 times free cash flow for this business. I guess I'll end on a happy note there.
Chris Hill: I was going to say, are we going to end on a potential buying opportunity?
Jim Gillies: I'm liking this one. Because the other thing is, too -- people who I've talked to, and I know people you've talked to, and we know a couple of people in common who have bought this product. Most people really like this product when they buy it.
Chris Hill: Yes.
Jim Gillies: That's not nothing. [laughs]
Chris Hill: It's not really the repeat purchase of, say, razors and blades, but yeah.
Jim Gillies: Sure. But it's still ... I could go down a dark path, saying, "Well, after the pandemic is over, maybe you're expecting an uptick in the divorce rate, so people will need to buy a second bed," but that would be dark and we're not going to go there.
Chris Hill: We're going to end on a happy positive note. [laughs] That's why I love you. Jim Gillies, thanks for being here.
Jim Gillies: Thank you.
...
Chris Hill: Patience is a requirement for long-term investing success. And over the long term, patience gets tested. Take the last six to 12 months, for example. If you own shares of companies listed on the Nasdaq, yeah, your patience is probably being tested. Beth Kindig is the lead technology analyst for the I/O Fund and The Motley Fool's choice for tech investor of the year in our 2022 Women in Investing awards. Recently, Deidre Woollard sat down with Beth to talk about where she sees buying opportunities during this downturn, and how she's managing long-term expectations for her investments.
...
Deidre Woollard: Yeah. I think you've hinted around the fact that it's been a bit of a bumpy road for tech recently. Certainly, investors who were heavily invested in tech are feeling that. Of course, we always feel like there is opportunity in there, too, and it's all about the good companies. What are you thinking about tech right now in some of those valuations you're seeing?
Beth Kindig: I've been a buyer. The I/O Fund has been buying, nibbling. When we see a quality company being down in price, we try not to overthink it, because there will probably be a day where we will talk about the prices of 2022, meaning that they were so low. That is, the probability that 2022 was oversold is pretty high at this point. It was just an extreme reaction to the downside, as part of 2020 and 2021 was an extreme action [in] the opposite direction. Extremes are a good moment to pay attention to what's going on, and think of the opposite of what the market is doing. So we've been buyers, and the reason that I'm a buyer is because I'm part of the 2030 club. I'm fully invested in tech, minimum through 2030, and I can tell you that I've always said, no matter what market it was -- especially during the height of the exuberance -- that you need to have, bare minimum, a 3-year hold [and] ideally, a 5- to 7-year time horizon. I can tell you that my 2018 class of stocks, the entries that I have in 2018, they are doing phenomenal right now because I held for three-plus years. Those entries are just crushing it, there's some up near 500%. 2019 as well, they still are holding well, a lot of those entries. The more challenging year was obviously 2020. That's the year that everyone was so excited, people were willing to pay anything, but if you even have 2020 entries, by 2023, you'll probably be doing pretty good.
I think people just get really emotional and they are very afraid of failure, they're very afraid of losses. So they'll see arbitrarily, they'll look from November to April, which has not been very good. But whoever said you could hold tech stocks for five months? Whoever told you that, is the last person you should be listening to because it's just not a five-month industry. It's actually a 7-to-10-year holding time horizon for the best tech investors, which are venture capitalists. Why is a retail investor or an individual investor thinking they can make money in tech at a fraction of the time horizon as some of the best tech investors in the world? I think just staying really firm on the time horizon is absolutely essential, and that's what piece has most been forgotten lately.
Deidre Woollard: Yeah, totally agree. At the Motley Fool, we have a rule about holding things at least 5 years -- 5 to 7 absolutely makes sense with that longer tech cycle. I wanted to ask you -- we're starting to head into earnings season. I wanted to find out what you thought about the last earnings season, where we saw a lot of companies posting some pretty strong results and the market just reacting negatively over and over again. Did that represent an opportunity to you, and how much attention do you pay to earnings in general?
Beth Kindig: We pay really close attention to earnings. I would say that when a company has a really strong report and the market sells off, that is usually a buying opportunity to us. That's the best buying opportunity. because I'm looking for facts. I deal with facts. I don't want to deal with opinions. I mean, we have to deal with opinions and sentiment, it is baked into the technicals. We have another person at the company who does technicals. What I'm saying is, as a long-term buy-and-hold tech industry analyst, I am really looking for facts. I'm really looking for management to tell me what the outlook is. That is way worth its weight over an analyst trying to give me a buy target. I greatly prefer to listen to management teams, and I like to listen broadly.
So it doesn't matter if I own the stock or not. If I'm in the adtech industry, if I have adtech stocks, I will listen to heavyweights in adtech, their calls, just because they are usually giving you a really broad look. They have visibility that we don't have. Analysts can obviously go into channel checks, but channel checks aren't nearly as good as having the visibility at the company, and the right management teams are trying to build trust with investors. Even if there are headwinds or whatever it might be, they will clearly articulate what the forward outlook is. And when the market penalizes them... I've actually written about Roku lately. They reiterated their full-year guidance, but they weren't able to meet Q1 because of supply chain issues. Those things are big buying opportunities to me because we foresee supply chains as transient headwinds. We were buying, in some cases not recommended. We bought going into earnings, a couple of times that worked out well; one time, it did not work out well. Then the others, we were buying within the week after when the market was penalizing them, and we feel very good about those entries.
Deidre Woollard: Yeah, Roku is definitely one that's been on people's minds lately. You mentioned the term "channel checks." Can you define what that is?
Beth Kindig: Is just an analyst who will be able to talk to vendors, talk to people within a supply chain, for instance, and see what their take is. So a supplier for iPhones might be able to tell you what orders are looking like. Or, they might be able to talk with other bigger customers, and see: Are orders being canceled? Are they being doubled? It's just channel checks around the health of the underlying business in the supply chain. For instance, in this case, we had a downgrade on Nvidia because analysts had done some channel checks in the supply chain and they think there could be some cancellations coming, but ultimately -- this is one I've had to address recently -- ultimately, I think management probably has that visibility, and so I'm siding with management. And that was across the semiconductor management teams: AMD, Micron -- they all said flattish PC units, and their forecasting has taken that into account. Channel checks again, versus management-level visibility -- I usually tend to lean heavily toward management.
Deidre Woollard: Interesting. Yeah, the semiconductor industry right now is fascinating because it's generally so cyclical, and yet we're in this backup period with so much demand. Looking forward to next quarter's earnings across tech in general, what are you looking for? Certainly supply chain is going to come up. What other things do you think are things to pay attention to in tech?
Beth Kindig: That's a great question. Speaking on the supply chain, we really think there's going to be a rebound in the second half of the year. We've pulled tons of data. We have a great team, strong team -- Bradley and Royston help me with that, and we've published some pretty convincing data, so check it out if you haven't seen it, it's published for free on our newsletter and our website -- and there was a very big, historically big auto inventory rebound in Q4. We're hoping that funnels through by the second half of the year. If so, all kinds of industries will start to be positively impacted. Adtech, especially, I would say is one where if it can't come in the current guide, we really are watching it for the Q3 guide, which would be an adtech rebound due to supply chain issues easing. That's one to look for. What we try to remind people is that perfect timing is impossible. We can give you a broader like, could it be Q2 guides, could it be the Q3 guide, I don't know, but we think it's coming. We think that supply chain will start to ease.
Then the other one that our team has dug up, the team of analysts is the capex spending from big tech. That's where flattish PC units, anything Russia, China, that is being filtered through on the semiconductors. Can that overcome the fact that all of FAANG plus Microsoft is spending heavily on capex, which filters down to semiconductors? That was something that Bradley actually has written extensively on as well, is Facebook, Amazon, Google, Microsoft [are] spending hand-over-fist right now on datacenter, so we're hoping that keeps our semis strong.
Deidre Woollard: Yeah. Have been watching the datacenters and seeing them pop up in small towns. The difference between some of like Google building datacenters versus also leasing datacenter space is just fascinating. I wanted to just zero in on something else you said there too, which is it doesn't necessarily matter if it comes in Q2 or Q3 if any, I think that reiterates what you just said about the long-term hold, that if you are a long-term investor, it doesn't matter when that rebound is coming because it's coming if you're there for the long term.
Chris Hill: As always, people on the program may have interests in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill, thanks for listening. We'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Chris Hill owns Alphabet (A shares), Alphabet (C shares), Amazon, Microsoft, and Walt Disney. Deidre Woollard owns Alphabet (C shares), Meta Platforms, Inc., Microsoft, and Walt Disney. Jim Gillies owns AerCap Holdings and Amazon. The Motley Fool owns and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Meta Platforms, Inc., Microsoft, Netflix, Roku, Tesla, and Walt Disney. The Motley Fool recommends AerCap Holdings and Sleep Number Corp and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. 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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In this episode of the Motley Fool Money podcast, Motley Fool analyst Jim Gillies discusses: American (NASDAQ: AAL), United (NASDAQ: UAL), and the other major U.S. carriers. My concern is Netflix might have stealthily turned into more of a long-term slow-grower incumbent play like a legacy cable company, that, of course, they were the ones who displaced them back in the day. Jim Gillies: Now that I think about it, I'd actually got three that I pay by the year, and they mix that with content I actually want to watch, which I'm increasingly finding on Disney+ and the Canadian service that supplies HBO.
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In this episode of the Motley Fool Money podcast, Motley Fool analyst Jim Gillies discusses: American (NASDAQ: AAL), United (NASDAQ: UAL), and the other major U.S. carriers. Also, Motley Fool analyst Deidre Woollard talks with Beth Kindig, lead tech analyst for the I/O Fund, about where she's finding opportunities in the recent downturn among tech stocks. The Motley Fool owns and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Meta Platforms, Inc., Microsoft, Netflix, Roku, Tesla, and Walt Disney.
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In this episode of the Motley Fool Money podcast, Motley Fool analyst Jim Gillies discusses: American (NASDAQ: AAL), United (NASDAQ: UAL), and the other major U.S. carriers. Also, Motley Fool analyst Deidre Woollard talks with Beth Kindig, lead tech analyst for the I/O Fund, about where she's finding opportunities in the recent downturn among tech stocks. Basically, all of the cash generated -- or in American's case, debt -- over most of the last decade, pre-pandemic, got spent on buying back stock, and long-term investors today are back to companies that are the same size, share-count wise, and you've got wonder: If I was a long-term shareholder, what did I get out of it?
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In this episode of the Motley Fool Money podcast, Motley Fool analyst Jim Gillies discusses: American (NASDAQ: AAL), United (NASDAQ: UAL), and the other major U.S. carriers. That's right -- they think these 10 stocks are even better buys. I'm Chris Hill, and joining me today from Motley Fool Canada, Jim Gillies.
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3574.0
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2022-04-27 00:00:00 UTC
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COLUMN-Global miners rank ESG as their top concern. Really?: Russell
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AAL
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https://www.nasdaq.com/articles/column-global-miners-rank-esg-as-their-top-concern.-really%3A-russell
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nan
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nan
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By Clyde Russell
LAUNCESTON, Australia, April 27 (Reuters) - Environment, social and governance (ESG) issues are the top concern of global miners, knocking out commodity price risk for the first time, according to a new survey.
KPMG said it was a "significant milestone" as ESG for the first time topped the list of industry risks in its 12-year-old Global Mining Outlook.
While commodity price risk dropped to second place, another issue closely related to ESG, namely community relations and social licence to operate, came in third spot.
Rounding out the top five risks were political instability and nationalisation at number four, and global trade conflict at number five.
The top five risks for global miners neatly encapsulate the short-term issues as well as the overarching long-term factor of addressing climate change and decarbonisation.
The question that executives should be answering is how they are preparing their companies to deal with the longer-term risks.
KPMG points out that addressing the challenges brings opportunities to "invest in innovative ways and adapt at a faster pace."
The survey, released on Tuesday, shows that 72% of mining executives agree or strongly agree that "ESG will be a cause of major disruption in the industry over the coming three years."
If mining executives really believe this, it seems somewhat strange that they have to yet to re-organise and re-orientate their management structures and efforts to reflect that view.
Not one of the biggest listed Western mining companies has an executive with a title of chief ESG officer, and only one has a person with a somewhat similar title.
While some of the companies do have executives tasked with ESG, they also tend to have several other responsibilities, which raises the question of how much of their time and effort goes into ESG.
LOW-PROFILE LEADERS
For example, BHP Group BHP.AX, the world's biggest mining company, has Caroline Cox listed on its website as chief legal, governance and external affairs officer, a position she assumed in November 2020.
It's interesting that her legal role takes precedence in the title, and it's also worth noting that Cox has what at best could be described as a very low profile on social media.
An internet search of her name reveals only a small number of articles, mostly about her appointment and certainly very little on her role in preparing BHP to meet the challenge of ESG.
At Rio Tinto RIO.AX, it's much the same story, with the company website not listing an executive with specific ESG responsibilities, the closest being Isabelle Deschamps, who is chief legal officer and external affairs.
Appointed in November 2021 after Rio's reputation took a severe blow when it destroyed ancient Aboriginal caves in Western Australia state, Deschamps also has a low social media and internet profile.
Glencore GLEN.L doesn't list any executive responsible for ESG on its management team, while Brazil's Vale VALE3.SA appears to split the responsibility between two of its executives, although it does list Maria Luiza de Oliveira Pinto e Paiva as executive vice president of sustainability.
Among the top miners, perhaps the executive with the highest profile is Anglo American's AAL.L Anik Michaud, the group director of corporate relations and sustainable impact.
But while she has more of an active presence on such social media sites as Twitter and LinkedIn, she doesn't appear to be a leading contributor to the ESG debate.
Rather, ESG issues in the major miners are largely left to the various chief executives, as when several committed their companies to reach net-zero carbon emissions by 2050.
But these undertakings are often criticised as vague and lacking a clear path of firm commitments over specified time periods.
Overall, while the internal workings of individual mining companies will differ, it doesn't appear that the majors have aligned their management structures and efforts with what they have told KPMG is their top concern.
It's not that mining companies don't have good stories to tell. After all, they will be responsible for producing the raw materials, such as copper, nickel and lithium, needed for the global energy transition.
But perhaps they should be leading the discussion on how to boost production while at the same time decarbonising their operations.
(Editing by Bradley Perrett)
((clyde.russell@thomsonreuters.com)(+61 437 622 448)(Reuters Messaging: clyde.russell.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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Among the top miners, perhaps the executive with the highest profile is Anglo American's AAL.L Anik Michaud, the group director of corporate relations and sustainable impact. By Clyde Russell LAUNCESTON, Australia, April 27 (Reuters) - Environment, social and governance (ESG) issues are the top concern of global miners, knocking out commodity price risk for the first time, according to a new survey. For example, BHP Group BHP.AX, the world's biggest mining company, has Caroline Cox listed on its website as chief legal, governance and external affairs officer, a position she assumed in November 2020.
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Among the top miners, perhaps the executive with the highest profile is Anglo American's AAL.L Anik Michaud, the group director of corporate relations and sustainable impact. By Clyde Russell LAUNCESTON, Australia, April 27 (Reuters) - Environment, social and governance (ESG) issues are the top concern of global miners, knocking out commodity price risk for the first time, according to a new survey. Not one of the biggest listed Western mining companies has an executive with a title of chief ESG officer, and only one has a person with a somewhat similar title.
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Among the top miners, perhaps the executive with the highest profile is Anglo American's AAL.L Anik Michaud, the group director of corporate relations and sustainable impact. By Clyde Russell LAUNCESTON, Australia, April 27 (Reuters) - Environment, social and governance (ESG) issues are the top concern of global miners, knocking out commodity price risk for the first time, according to a new survey. While some of the companies do have executives tasked with ESG, they also tend to have several other responsibilities, which raises the question of how much of their time and effort goes into ESG.
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Among the top miners, perhaps the executive with the highest profile is Anglo American's AAL.L Anik Michaud, the group director of corporate relations and sustainable impact. KPMG said it was a "significant milestone" as ESG for the first time topped the list of industry risks in its 12-year-old Global Mining Outlook. While some of the companies do have executives tasked with ESG, they also tend to have several other responsibilities, which raises the question of how much of their time and effort goes into ESG.
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3575.0
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2022-04-27 00:00:00 UTC
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COLUMN-Global miners rank ESG as their top concern. Really?: Russell
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AAL
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https://www.nasdaq.com/articles/column-global-miners-rank-esg-as-their-top-concern.-really%3A-russell-0
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nan
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nan
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By Clyde Russell
LAUNCESTON, Australia, April 27 (Reuters) - Environment, social and governance (ESG) issues are the top concern of global miners, knocking out commodity price risk for the first time, according to a new survey.
KPMG said it was a "significant milestone" as ESG for the first time topped the list of industry risks in its 12-year-old Global Mining Outlook.
While commodity price risk dropped to second place, another issue closely related to ESG, namely community relations and social licence to operate, came in third spot.
Rounding out the top five risks were political instability and nationalisation at number four, and global trade conflict at number five.
The top five risks for global miners neatly encapsulate the short-term issues as well as the overarching long-term factor of addressing climate change and decarbonisation.
The question that executives should be answering is how they are preparing their companies to deal with the longer-term risks.
KPMG points out that addressing the challenges brings opportunities to "invest in innovative ways and adapt at a faster pace."
The survey, released on Tuesday, shows that 72% of mining executives agree or strongly agree that "ESG will be a cause of major disruption in the industry over the coming three years."
If mining executives really believe this, it seems somewhat strange that they have to yet to re-organise and re-orientate their management structures and efforts to reflect that view.
Not one of the biggest listed Western mining companies has an executive with a title of chief ESG officer, and only one has a person with a somewhat similar title.
While some of the companies do have executives tasked with ESG, they also tend to have several other responsibilities, which raises the question of how much of their time and effort goes into ESG.
LOW-PROFILE LEADERS
For example, BHP Group BHP.AX, the world's biggest mining company, has Caroline Cox listed on its website as chief legal, governance and external affairs officer, a position she assumed in November 2020.
It's interesting that her legal role takes precedence in the title, and it's also worth noting that Cox has what at best could be described as a very low profile on social media.
An internet search of her name reveals only a small number of articles, mostly about her appointment and certainly very little on her role in preparing BHP to meet the challenge of ESG.
At Rio Tinto RIO.AX, it's much the same story, with the company website not listing an executive with specific ESG responsibilities, the closest being Isabelle Deschamps, who is chief legal officer and external affairs.
Appointed in November 2021 after Rio's reputation took a severe blow when it destroyed ancient Aboriginal caves in Western Australia state, Deschamps also has a low social media and internet profile.
Glencore GLEN.L doesn't list any executive responsible for ESG on its management team, while Brazil's Vale VALE3.SA appears to split the responsibility between two of its executives, although it does list Maria Luiza de Oliveira Pinto e Paiva as executive vice president of sustainability.
Among the top miners, perhaps the executive with the highest profile is Anglo American's AAL.L Anik Michaud, the group director of corporate relations and sustainable impact.
But while she has more of an active presence on such social media sites as Twitter and LinkedIn, she doesn't appear to be a leading contributor to the ESG debate.
Rather, ESG issues in the major miners are largely left to the various chief executives, as when several committed their companies to reach net-zero carbon emissions by 2050.
But these undertakings are often criticised as vague and lacking a clear path of firm commitments over specified time periods.
Overall, while the internal workings of individual mining companies will differ, it doesn't appear that the majors have aligned their management structures and efforts with what they have told KPMG is their top concern.
It's not that mining companies don't have good stories to tell. After all, they will be responsible for producing the raw materials, such as copper, nickel and lithium, needed for the global energy transition.
But perhaps they should be leading the discussion on how to boost production while at the same time decarbonising their operations.
(Editing by Bradley Perrett)
((clyde.russell@thomsonreuters.com)(+61 437 622 448)(Reuters Messaging: clyde.russell.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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Among the top miners, perhaps the executive with the highest profile is Anglo American's AAL.L Anik Michaud, the group director of corporate relations and sustainable impact. By Clyde Russell LAUNCESTON, Australia, April 27 (Reuters) - Environment, social and governance (ESG) issues are the top concern of global miners, knocking out commodity price risk for the first time, according to a new survey. For example, BHP Group BHP.AX, the world's biggest mining company, has Caroline Cox listed on its website as chief legal, governance and external affairs officer, a position she assumed in November 2020.
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Among the top miners, perhaps the executive with the highest profile is Anglo American's AAL.L Anik Michaud, the group director of corporate relations and sustainable impact. By Clyde Russell LAUNCESTON, Australia, April 27 (Reuters) - Environment, social and governance (ESG) issues are the top concern of global miners, knocking out commodity price risk for the first time, according to a new survey. Not one of the biggest listed Western mining companies has an executive with a title of chief ESG officer, and only one has a person with a somewhat similar title.
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Among the top miners, perhaps the executive with the highest profile is Anglo American's AAL.L Anik Michaud, the group director of corporate relations and sustainable impact. By Clyde Russell LAUNCESTON, Australia, April 27 (Reuters) - Environment, social and governance (ESG) issues are the top concern of global miners, knocking out commodity price risk for the first time, according to a new survey. While some of the companies do have executives tasked with ESG, they also tend to have several other responsibilities, which raises the question of how much of their time and effort goes into ESG.
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Among the top miners, perhaps the executive with the highest profile is Anglo American's AAL.L Anik Michaud, the group director of corporate relations and sustainable impact. KPMG said it was a "significant milestone" as ESG for the first time topped the list of industry risks in its 12-year-old Global Mining Outlook. While some of the companies do have executives tasked with ESG, they also tend to have several other responsibilities, which raises the question of how much of their time and effort goes into ESG.
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3576.0
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2022-04-27 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-24
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The WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) was launched on 05/07/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to 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. This particular fund, 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.58% for IHDG, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 3.50%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Anglo American Plc (AAL) accounts for about 5.86% of the fund's total assets, followed by Bhp Group Ltd (BHP) and Rio Tinto Plc (RIO).
Its top 10 holdings account for approximately 42.21% of IHDG's total assets under management.
Performance and Risk
So far this year, IHDG has lost about -11.62%, and is down about -3.15% in the last one year (as of 04/27/2022). During this past 52-week period, the fund has traded between $39.56 and $46.44.
The ETF has a beta of 0.72 and standard deviation of 19.75% 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 $22.84 billion in assets, Vanguard Dividend Appreciation ETF has $63.59 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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Taking into account individual holdings, Anglo American Plc (AAL) accounts for about 5.86% of the fund's total assets, followed by Bhp Group Ltd (BHP) and Rio Tinto Plc (RIO). American Airlines Group Inc. (AAL): Free Stock Analysis Report There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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Taking into account individual holdings, Anglo American Plc (AAL) accounts for about 5.86% of the fund's total assets, followed by Bhp Group Ltd (BHP) and Rio Tinto Plc (RIO). American Airlines Group Inc. (AAL): Free Stock Analysis Report 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.
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Taking into account individual holdings, Anglo American Plc (AAL) accounts for about 5.86% of the fund's total assets, followed by Bhp Group Ltd (BHP) and Rio Tinto Plc (RIO). American Airlines Group Inc. (AAL): Free Stock Analysis Report The WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) was launched on 05/07/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed World ETFs category of the market.
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Taking into account individual holdings, Anglo American Plc (AAL) accounts for about 5.86% of the fund's total assets, followed by Bhp Group Ltd (BHP) and Rio Tinto Plc (RIO). American Airlines Group Inc. (AAL): Free Stock Analysis Report The WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) was launched on 05/07/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed World ETFs category of the market.
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3577.0
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2022-04-26 00:00:00 UTC
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Brazil's mining industry to invest $40.4 bln through 2026, association says
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AAL
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https://www.nasdaq.com/articles/brazils-mining-industry-to-invest-%2440.4-bln-through-2026-association-says
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By Roberto Samora
SAO PAULO, April 26 (Reuters) - Investments in Brazil's mining sector are expected to total $40.44 billion from 2022 to 2026, a drop when compared with the five years through 2025, leading industry association Ibram said on Tuesday.
The amount forecast for the five-year period points to a nearly $900 million drop from investments seen taking place in the 2021-2025 period, according to Ibram data.
Ibram associates include major miners, steelmakers and fertilizer companies operating in Brazil such as Vale SA VALE3.SA, Anglo American PLC AAL.L, Rio Tinto Ltd RIO.AX, Vallourec SA VLLP.PA, Usiminas USIM5.SA, Gerdau SA GGBR4.SA and Yara International ASA YAR.OL.
The association said that 54% of the estimated investments would go to new projects, while the remaining 46% are seen being invested in ongoing projects.
About 10% of the total amount are set to be invested in socio-environmental projects, it said.
Top mining state Minas Gerais is expected to get more than $11 billion in the period, ahead of the $6 billion forecast to be invested in the northeastern state of Bahia, Ibram said.
Investments in iron ore were estimated at $13.6 billion, of which $7.7 billion would go to ongoing projects.
Ibram also estimated that more than $5 billion are set to be invested in fertilizer projects in the five-year period, with most of the amount expected to be injected into new projects.
Investments in bauxite and gold mines in the five years through 2026 should total $5.57 billion and $2.9 billion, respectively, it added.
(Reporting by Roberto Samora; Writing by Gabriel Araujo)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Ibram associates include major miners, steelmakers and fertilizer companies operating in Brazil such as Vale SA VALE3.SA, Anglo American PLC AAL.L, Rio Tinto Ltd RIO.AX, Vallourec SA VLLP.PA, Usiminas USIM5.SA, Gerdau SA GGBR4.SA and Yara International ASA YAR.OL. By Roberto Samora SAO PAULO, April 26 (Reuters) - Investments in Brazil's mining sector are expected to total $40.44 billion from 2022 to 2026, a drop when compared with the five years through 2025, leading industry association Ibram said on Tuesday. Top mining state Minas Gerais is expected to get more than $11 billion in the period, ahead of the $6 billion forecast to be invested in the northeastern state of Bahia, Ibram said.
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Ibram associates include major miners, steelmakers and fertilizer companies operating in Brazil such as Vale SA VALE3.SA, Anglo American PLC AAL.L, Rio Tinto Ltd RIO.AX, Vallourec SA VLLP.PA, Usiminas USIM5.SA, Gerdau SA GGBR4.SA and Yara International ASA YAR.OL. By Roberto Samora SAO PAULO, April 26 (Reuters) - Investments in Brazil's mining sector are expected to total $40.44 billion from 2022 to 2026, a drop when compared with the five years through 2025, leading industry association Ibram said on Tuesday. The amount forecast for the five-year period points to a nearly $900 million drop from investments seen taking place in the 2021-2025 period, according to Ibram data.
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Ibram associates include major miners, steelmakers and fertilizer companies operating in Brazil such as Vale SA VALE3.SA, Anglo American PLC AAL.L, Rio Tinto Ltd RIO.AX, Vallourec SA VLLP.PA, Usiminas USIM5.SA, Gerdau SA GGBR4.SA and Yara International ASA YAR.OL. By Roberto Samora SAO PAULO, April 26 (Reuters) - Investments in Brazil's mining sector are expected to total $40.44 billion from 2022 to 2026, a drop when compared with the five years through 2025, leading industry association Ibram said on Tuesday. Top mining state Minas Gerais is expected to get more than $11 billion in the period, ahead of the $6 billion forecast to be invested in the northeastern state of Bahia, Ibram said.
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Ibram associates include major miners, steelmakers and fertilizer companies operating in Brazil such as Vale SA VALE3.SA, Anglo American PLC AAL.L, Rio Tinto Ltd RIO.AX, Vallourec SA VLLP.PA, Usiminas USIM5.SA, Gerdau SA GGBR4.SA and Yara International ASA YAR.OL. Ibram also estimated that more than $5 billion are set to be invested in fertilizer projects in the five-year period, with most of the amount expected to be injected into new projects. Investments in bauxite and gold mines in the five years through 2026 should total $5.57 billion and $2.9 billion, respectively, it added.
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3578.0
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2022-04-26 00:00:00 UTC
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3 Top Airline Stocks to Buy for the Long Haul
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https://www.nasdaq.com/articles/3-top-airline-stocks-to-buy-for-the-long-haul
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The airline industry took a hard hit at the start of the pandemic in 2020. More than two years later with lockdowns eased and travel restrictions relaxed, the sector is seeing signs of recovery. Airline stocks got boosted this month when Delta Air Lines (NYSE: DAL) reported first-quarter earnings on April 13 and provided an optimistic outlook for the second quarter. Delta expects demand to rise more this year.
In March, many of the top U.S. airlines' CEOs were lobbying President Joe Biden to end the transportation mask mandate and testing requirements for international travelers. Last week, a federal judge lifted the mandate that required all passengers to wear masks (the requirement was likely to be lifted by the Centers for Disease Control and Prevention in early May anyway), but testing requirements will continue.
Image source: Getty Images.
The changes cheered up many airlines as they hope demand will rise further. Looking at their efforts to recover, besides Delta, American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) also look like excellent buy-and-hold stocks for the long haul. Let's take a closer look at these three top airline stocks to buy for the long haul.
1. Delta Air Lines
For the first quarter, Delta reported operating revenue of $8.2 billion, which was 79% more than it reported in the same period in 2019. Its total domestic passenger revenue recovered 83% while international passenger revenue recovered 54% versus the same quarter in 2019. Though it reported operating losses in January and February, demand rose in March as domestic and international corporate travel started returning. The rise in demand helped the airline with a revenue recovery of 79% with an operating profit margin of 10%. March was a profitable month for Delta.
Delta also generated free cash flow of $197 million to pay off some of its debt. At the end of the quarter, it had an adjusted net debt of $21 billion, with $12.8 billion in liquidity.
Delta management hopes the second quarter will be even better as travel demand keeps surging now. Management sees revenue recovery accelerating from 93% to 97% from 2019 levels. Total passenger capacity could also show up at around 84% with operating profit margin in the range of 12% to 14%. Delta is also preparing well to handle the rising demand.
2. American Airlines
American Airlines' first quarter also saw some good numbers. Its first-quarter revenue of $8.9 billion showed a recovery rate of 84% from the same quarter of 2019. However, it also reported a net loss of $1.6 billion, or $2.52 per share.
But the airline is hopeful for the second quarter as well. Looking at the demand trends, American Airlines expects to be profitable in the second quarter. Note that the estimates are based on current fuel price assumptions. It also hopes passenger capacity will jump around 92% to 94% from Q2 2019's levels. Total revenue could be 6% to 8% higher than in Q2 2019, management said in the Q1 press release.
Despite turbulent times, the airline also paid $4.1 billion in debt and plans to pay off $15 billion of debt by the end of 2025.
3. Southwest Airlines
After Delta and American Airlines' good recovery in the first quarter, Wall Street analysts expect Southwest Airlines to report a good first quarter as well. The airline is set to release its first-quarter earnings results on April 28. Analysts see total revenue of around $4.67 billion for Q1 2022, an approximate 119% increase from Q1 2021. But the airline could report an earnings loss of $0.30 per share in Q1, according to projections.
Southwest already reported profits in its previous quarter, which was its first profitable quarter since the pandemic hit. Net profits came in at $68 million, or $0.11 per share, in its fourth quarter. Its full-year net income also was impressive at $977 million, or $1.61 per share, compared to a net loss of $3.5 billion, or $6.22 per share in 2020.
Chances are it could end up with a profitable quarter again considering Delta reported demand rose quite high in March. In January, Southwest discussed its guidance for Q1 2022. It hopes to see revenue down by 10% to 15% from 2019 levels with a load factor (passenger seating capacity) of about 75% to 80%. It also aims to have paid $60 million in debts by the first quarter's end.
Are airlines getting back to normal?
Airline stocks could soar once demand matches or even crosses pre-pandemic levels. As travel restrictions ease more, people are keener than ever to travel now. A Deloitte report discussed how the global intent to book an international flight climbed to 23% by June 2021.
All three of these stocks are trading way below their 52-week highs, making it the right time to buy and hold them for the long haul to earn some fruitful returns.
10 stocks we like better than Delta Air Lines
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They just revealed what they believe are the ten best stocks for investors to buy right now… and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of April 7, 2022
Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool recommends 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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Looking at their efforts to recover, besides Delta, American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) also look like excellent buy-and-hold stocks for the long haul. Airline stocks got boosted this month when Delta Air Lines (NYSE: DAL) reported first-quarter earnings on April 13 and provided an optimistic outlook for the second quarter. In March, many of the top U.S. airlines' CEOs were lobbying President Joe Biden to end the transportation mask mandate and testing requirements for international travelers.
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Looking at their efforts to recover, besides Delta, American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) also look like excellent buy-and-hold stocks for the long haul. Its total domestic passenger revenue recovered 83% while international passenger revenue recovered 54% versus the same quarter in 2019. Though it reported operating losses in January and February, demand rose in March as domestic and international corporate travel started returning.
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Looking at their efforts to recover, besides Delta, American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) also look like excellent buy-and-hold stocks for the long haul. Airline stocks got boosted this month when Delta Air Lines (NYSE: DAL) reported first-quarter earnings on April 13 and provided an optimistic outlook for the second quarter. Delta Air Lines For the first quarter, Delta reported operating revenue of $8.2 billion, which was 79% more than it reported in the same period in 2019.
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Looking at their efforts to recover, besides Delta, American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) also look like excellent buy-and-hold stocks for the long haul. Delta Air Lines For the first quarter, Delta reported operating revenue of $8.2 billion, which was 79% more than it reported in the same period in 2019. Though it reported operating losses in January and February, demand rose in March as domestic and international corporate travel started returning.
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3579.0
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2022-04-25 00:00:00 UTC
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Is American Airlines Stock a Buy?
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AAL
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https://www.nasdaq.com/articles/is-american-airlines-stock-a-buy
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Things have been looking optimistic for the airline industry as of late. The sector got hammered ever since the pandemic hit. Now, with lockdowns and travel restrictions easing up, the sector is getting its spark back. The industry got a boost after Delta Air Lines (NYSE: DAL) reported earnings on April 13 with an optimistic outlook for the second quarter. Delta is gearing up to handle more demand as summer travel plans rise.
Additional good news for the industry came in last week. In March, all major U.S. airlines' CEOs signed an open letter and urged President Joe Biden to "end the transportation mask mandate and testing requirements for international travelers," according to CNN. Last week, a federal judge lifted the mandate that required all passengers to wear masks.
American Airlines (NYSE: AAL) also signed the letter. Its stock closed 4% higher on April 21 after it reported strong first-quarter 2022 results. Let's take a look at its performance in the quarter and what the year ahead looks like for the airline.
Image source: Getty Images.
American Airlines' performance boosted the sector
The airline's first-quarter revenue came in on par with analysts' expectations of $8.9 billion, which was an impressive 84% recovery from the same quarter of 2019. The airline also noted that March marked the first month when revenues surpassed 2019 levels.
Domestic business travel has increased as offices reopened in most places. As the company noted in its press release, it has received the highest number of corporate bookings ever since the start of the pandemic. International travel demand also seems to have picked up considerably.
However, American did not see profits this quarter. Net loss for the quarter came in at $1.6 billion, or $2.52 per share. But the airline stated that looking at current demand trends, it expects to be profitable in the second quarter (based on current fuel price assumptions).
The airline ended the quarter with $15.5 billion of total available liquidity. To date, it has paid $4.1 billion in debt and plans to pay off $15 billion of debt by the end of 2025. Not to burden its balance sheet further, American Airlines has cost-effective financing in place. This is related to all its aircraft deliveries that it plans to carry out throughout the third quarter of 2022. The company is also further exploring financing options for the fourth quarter and the first half of next year.
Are good times ahead for the airline industry?
The airlines tried to urge the president to remove the mask mandate and testing requirements in an effort to ease up travel restrictions so that demand could get back to normal.
Even though only the mask mandate has been lifted, passengers' interest in flying seems to be growing, both for domestic and international travel, after being stuck at home for over two years. Summer travel demand is rising, as most airlines reported in their quarterly results. Deloitte's "2022 Travel Outlook" discussed how global intent to book an international flight climbed to 23% by June 2021.
Peer Delta Air Lines also sees its revenue accelerate 93% to 97% from 2019 levels, and its operating profit margin is in the range of 12% to 14% for the second quarter.
Southwest Airlines will report its first-quarter results on April 28. In January, the airline had discussed how it hopes to be profitable again in the first quarter. Southwest had a profitable Q4 2021 with net profits of $68 million, or $0.11 per share.
Is it a good time to buy American Airlines?
American Airlines' recovery looks good, and it is capable to handle the demand ahead. Looking forward to the next quarter, the company expects passenger capacity to jump around 92% to 94% from second quarter 2019's levels. The airline also hopes to see total revenue be 6% to 8% higher than in Q2 2019.
Most of the airline stocks have outperformed the industry benchmark, US Global Jets ETF's gain of 8%, so far this year.
AAL data by YCharts
However, despite how attractive airline stocks look right now, the sector is still volatile. A lot of external factors could still affect demand and profits. That said, the sector has started to recover, and demand could go back to pre-pandemic levels or even higher, but that could take a while.
It is still soon to say that the pandemic is behind us. So investors interested in this sector might have to hold on to their stocks for the long haul to earn any fruitful returns.
10 stocks we like better than American Airlines Group
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 7, 2022
Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool recommends 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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American Airlines (NYSE: AAL) also signed the letter. AAL data by YCharts However, despite how attractive airline stocks look right now, the sector is still volatile. The industry got a boost after Delta Air Lines (NYSE: DAL) reported earnings on April 13 with an optimistic outlook for the second quarter.
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American Airlines (NYSE: AAL) also signed the letter. AAL data by YCharts However, despite how attractive airline stocks look right now, the sector is still volatile. The industry got a boost after Delta Air Lines (NYSE: DAL) reported earnings on April 13 with an optimistic outlook for the second quarter.
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American Airlines (NYSE: AAL) also signed the letter. AAL data by YCharts However, despite how attractive airline stocks look right now, the sector is still volatile. American Airlines' performance boosted the sector The airline's first-quarter revenue came in on par with analysts' expectations of $8.9 billion, which was an impressive 84% recovery from the same quarter of 2019.
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American Airlines (NYSE: AAL) also signed the letter. AAL data by YCharts However, despite how attractive airline stocks look right now, the sector is still volatile. American Airlines' performance boosted the sector The airline's first-quarter revenue came in on par with analysts' expectations of $8.9 billion, which was an impressive 84% recovery from the same quarter of 2019.
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3580.0
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2022-04-24 00:00:00 UTC
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METALS-Base metals drop on China lockdown, prospects of bigger Fed hikes
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AAL
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https://www.nasdaq.com/articles/metals-base-metals-drop-on-china-lockdown-prospects-of-bigger-fed-hikes
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April 25 (Reuters) - Industrial metals fell on Monday, with copper hitting its lowest in more than a month, as prospects of bigger U.S. rate hikes and continued lockdowns in top consumer China cemented fears of a slowdown in global economic growth and demand.
FUNDAMENTALS
* Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was down 1.2% at $9,992 a tonne, as of 0212 GMT, its lowest level since March 16.
* The most-active May copper contract on the Shanghai Futures Exchange SCFcv1 fell 1.3% to 73,950 yuan ($11,299.56).
* Shanghai authorities battling an outbreak of COVID-19 have erected fences outside residential buildings, sparking fresh public outcry over a lockdown that has forced much of the city's 25 million people indoors.
* The dollar firmed near a more than two-year high, supported by U.S. Federal Reserve Chairman Jerome Powell's comments that more or less backed a half-percentage point tightening at next month's policy meeting. USD/
* A stronger dollar makes greenback-denominated metals more expensive for buyers using other currencies.
* With expectations for a half-percentage point rate hike at the Fed's May meeting now locked in, traders on Friday piled into bets that the central bank will go even bigger in subsequent months.
* A Chilean environmental regulator has recommended that global miner Anglo American's AAL.L Los Bronces copper project not be granted an extension permit involving a planned $3.3 billion investment, the company said on Saturday.
* Peru said on Friday a group of indigenous communities had lifted a protest against Southern Copper Corp's SCCO.N Cuajone copper mine that had forced a suspension of production for more than 50 days.
* The global zinc market moved to a surplus of 14,300 tonnes in February from a revised deficit of 17,500 tonnes a month earlier, data from the International Lead and Zinc Study Group (ILZSG) showed.
* The global lead market flipped to a surplus of 7,800 tonnes in February from a revised deficit of 17,700 tonnes in January, ILZSG data showed.
* For the top stories in metals and other news, click TOP/MTL or MET/L
MARKETS NEWS
* Stocks fell and the dollar was firm on Monday as the prospect of rapid U.S. rate rises and slowing growth rattles investors, while the euro found support after Emmanuel Macron defeated a far-right challenge to win a second term as French president. MKTS/GLOB
DATA/EVENTS (GMT)
0800 Germany Ifo Business Climate New
0800 Germany Ifo Curr Conditions New
0800 Germany Ifo Expectations New
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 = 6.5445 Chinese yuan)
(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)
((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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* A Chilean environmental regulator has recommended that global miner Anglo American's AAL.L Los Bronces copper project not be granted an extension permit involving a planned $3.3 billion investment, the company said on Saturday. April 25 (Reuters) - Industrial metals fell on Monday, with copper hitting its lowest in more than a month, as prospects of bigger U.S. rate hikes and continued lockdowns in top consumer China cemented fears of a slowdown in global economic growth and demand. * Stocks fell and the dollar was firm on Monday as the prospect of rapid U.S. rate rises and slowing growth rattles investors, while the euro found support after Emmanuel Macron defeated a far-right challenge to win a second term as French president.
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* A Chilean environmental regulator has recommended that global miner Anglo American's AAL.L Los Bronces copper project not be granted an extension permit involving a planned $3.3 billion investment, the company said on Saturday. * The global zinc market moved to a surplus of 14,300 tonnes in February from a revised deficit of 17,500 tonnes a month earlier, data from the International Lead and Zinc Study Group (ILZSG) showed. * The global lead market flipped to a surplus of 7,800 tonnes in February from a revised deficit of 17,700 tonnes in January, ILZSG data showed.
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* A Chilean environmental regulator has recommended that global miner Anglo American's AAL.L Los Bronces copper project not be granted an extension permit involving a planned $3.3 billion investment, the company said on Saturday. April 25 (Reuters) - Industrial metals fell on Monday, with copper hitting its lowest in more than a month, as prospects of bigger U.S. rate hikes and continued lockdowns in top consumer China cemented fears of a slowdown in global economic growth and demand. * The global zinc market moved to a surplus of 14,300 tonnes in February from a revised deficit of 17,500 tonnes a month earlier, data from the International Lead and Zinc Study Group (ILZSG) showed.
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* A Chilean environmental regulator has recommended that global miner Anglo American's AAL.L Los Bronces copper project not be granted an extension permit involving a planned $3.3 billion investment, the company said on Saturday. April 25 (Reuters) - Industrial metals fell on Monday, with copper hitting its lowest in more than a month, as prospects of bigger U.S. rate hikes and continued lockdowns in top consumer China cemented fears of a slowdown in global economic growth and demand. * Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was down 1.2% at $9,992 a tonne, as of 0212 GMT, its lowest level since March 16.
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3581.0
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2022-04-23 00:00:00 UTC
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Chile recommends denying extension for Anglo American copper mine
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AAL
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https://www.nasdaq.com/articles/chile-recommends-denying-extension-for-anglo-american-copper-mine
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nan
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SANTIAGO, April 23 (Reuters) - A Chilean environmental regulator has recommended that global miner Anglo American's AAL.L Los Bronces copper project not be granted an extension permit involving a planned $3.3 billion investment, the company said on Saturday.
Anglo American said Chile's Environmental Assessment Service had issued the recommendation although a firm decision on the mine's life extension would only come next week.
"The SEA’s recommendation is despite the strong support for the project offered to date by 23 of the 25 technical services bodies and government ministries that form part of the assessment process," Anglo American said in a statement.
Environmental advocates have criticized the Los Bronces project, located near Chilean capital Santiago, 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.
Chile is the world's top copper producer and Los Bronces is a large mine with a capacity to produce over 300,000 tonnes of the red metal each year.
Anglo American said an adverse decision on the extension would not affect production guidance for the year 2022.
(Reporting by Fabian Cambero; Editing by Andrea Ricci)
((marcelo.rochabrun@thomsonreuters.com; +55 11 5644 7768;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SANTIAGO, April 23 (Reuters) - A Chilean environmental regulator has recommended that global miner Anglo American's AAL.L Los Bronces copper project not be granted an extension permit involving a planned $3.3 billion investment, the company said on Saturday. "The SEA’s recommendation is despite the strong support for the project offered to date by 23 of the 25 technical services bodies and government ministries that form part of the assessment process," Anglo American said in a statement. Environmental advocates have criticized the Los Bronces project, located near Chilean capital Santiago, because of its potential impact on a local glacier as well as on water availability for the region.
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SANTIAGO, April 23 (Reuters) - A Chilean environmental regulator has recommended that global miner Anglo American's AAL.L Los Bronces copper project not be granted an extension permit involving a planned $3.3 billion investment, the company said on Saturday. Anglo American said Chile's Environmental Assessment Service had issued the recommendation although a firm decision on the mine's life extension would only come next week. Environmental advocates have criticized the Los Bronces project, located near Chilean capital Santiago, because of its potential impact on a local glacier as well as on water availability for the region.
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SANTIAGO, April 23 (Reuters) - A Chilean environmental regulator has recommended that global miner Anglo American's AAL.L Los Bronces copper project not be granted an extension permit involving a planned $3.3 billion investment, the company said on Saturday. Anglo American said Chile's Environmental Assessment Service had issued the recommendation although a firm decision on the mine's life extension would only come next week. "The SEA’s recommendation is despite the strong support for the project offered to date by 23 of the 25 technical services bodies and government ministries that form part of the assessment process," Anglo American said in a statement.
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SANTIAGO, April 23 (Reuters) - A Chilean environmental regulator has recommended that global miner Anglo American's AAL.L Los Bronces copper project not be granted an extension permit involving a planned $3.3 billion investment, the company said on Saturday. Anglo American said Chile's Environmental Assessment Service had issued the recommendation although a firm decision on the mine's life extension would only come next week. Environmental advocates have criticized the Los Bronces project, located near Chilean capital Santiago, because of its potential impact on a local glacier as well as on water availability for the region.
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3582.0
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2022-04-22 00:00:00 UTC
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Why American Airlines Stock Is Gaining Altitude Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-stock-is-gaining-altitude-today
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What happened
A day after American Airlines Group (NASDAQ: AAL) reported a smaller-than-expected first-quarter loss, Wall Street is climbing on board. A slew of upgrades and price target boosts had the stock up by as much as 5% in Friday morning trading.
So what
The airline industry has been slow to recover from the impact of the pandemic, and American has long been viewed as a more vulnerable operation than most of its peers. When COVID-19 first hit, it was not as far along in its turnaround as some rivals, and had a higher debt total than most of them. But the airlines have navigated the crisis more effectively than many expected them to back when demand for passenger flights was practically nonexistent, and now, with travel on the rebound, American looks poised to go along for the ride.
Image source: American Airlines.
On Thursday, American reported a lower-than-expected Q1 loss and provided a positive outlook for the year. Management said that strong summer travel demand coupled with still-limited capacity was giving it enough pricing power to offset higher fuel costs.
Analysts liked what they heard. On Friday morning, JP Morgan upgraded American to neutral from underweight, and Argus boosted it to buy from hold. Barclays raised its price target on the stock from $15 to $20, but kept an underweight rating on the shares, and Deutsche Bank kept its buy rating in place and raised its price target from $23 to $25.
Investors appear to be taking these analysts' views to heart on Friday morning. The stock lost some of its earlier momentum along with the broader markets on headlines suggesting that the Federal Reserve was planning to take more aggressive actions to curb inflation, but as of 11:30 a.m. ET, American shares remained in the green even as the S&P 500 was off by more than 1%.
Now what
Wall Street tends to get nervous when the Fed gets aggressive, but airline investors have every reason to hope the central bank will be able to tame inflation. With fuel costs soaring and the labor market tight, airlines will need to retain their pricing power if they are going to meet their rosy full-year guidance numbers. An economic environment in which consumers keep feeling pinched on the basics -- and potentially start rethinking their vacation plans -- would not be ideal for the travel industry.
The airlines are well on their way to a recovery, but getting back to health will take time. They're still waiting for a rebound in business and international flying -- two categories that tend to be more lucrative for the carriers -- and the fledgling recovery in domestic tourist travel remains vulnerable not just to inflation but also to new twists in the pandemic.
There is likely a ceiling on how high airline stocks like American can fly in the near term. Those buying in now in the hopes of seeing them make a quick recovery should buckle up -- there's likely to be further turbulence ahead.
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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 A day after American Airlines Group (NASDAQ: AAL) reported a smaller-than-expected first-quarter loss, Wall Street is climbing on board. But the airlines have navigated the crisis more effectively than many expected them to back when demand for passenger flights was practically nonexistent, and now, with travel on the rebound, American looks poised to go along for the ride. The stock lost some of its earlier momentum along with the broader markets on headlines suggesting that the Federal Reserve was planning to take more aggressive actions to curb inflation, but as of 11:30 a.m.
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What happened A day after American Airlines Group (NASDAQ: AAL) reported a smaller-than-expected first-quarter loss, Wall Street is climbing on board. Management said that strong summer travel demand coupled with still-limited capacity was giving it enough pricing power to offset higher fuel costs. Barclays raised its price target on the stock from $15 to $20, but kept an underweight rating on the shares, and Deutsche Bank kept its buy rating in place and raised its price target from $23 to $25.
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What happened A day after American Airlines Group (NASDAQ: AAL) reported a smaller-than-expected first-quarter loss, Wall Street is climbing on board. 10 stocks we like better than American Airlines Group When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them!
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What happened A day after American Airlines Group (NASDAQ: AAL) reported a smaller-than-expected first-quarter loss, Wall Street is climbing on board. Investors appear to be taking these analysts' views to heart on Friday morning. That's right -- they think these 10 stocks are even better buys.
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3583.0
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2022-04-22 00:00:00 UTC
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4 Top Travel Stocks To Watch In The Stock Market Today
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AAL
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https://www.nasdaq.com/articles/4-top-travel-stocks-to-watch-in-the-stock-market-today
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nan
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Should Investors Buy These Travel Stocks Right Now?
Travel stocks have undoubtedly been among the losing sectors of the stock market during the height of the pandemic. But now, thanks to strong vaccination efforts and easing travel restrictions, travel stocks could be looking at brighter days ahead. Safe to say, after being cooped up in our homes for the past two years or so, there is likely a significant pent-up demand to travel again. In fact, despite the high inflation, travel demand remains strong, with consumers spending $8.8 billion on domestic U.S. airline tickets last month. For comparison, this is up by 28% compared with March 2019, before the pandemic struck. As such, I wouldn’t be surprised if investors are feeling bullish on travel stocks.
Take Delta Airlines (NYSE: DAL) for example. Although the company made a loss the past quarter, the company forecasts a return to profit this current quarter. The company said its operations in March were profitable and that it had been able to pass some of the higher cost of fuel along to customers. Elsewhere, we have United Airlines (NASDAQ: UAL). United on Tuesday boosted its outlook for its first-quarter financials thanks to a rebound in travel. Namely, it expects total operating revenue to be near the better end of its previous guidance of down between 20% and 25%. With travel companies starting to return to profit, be sure to watch these four travel stocks in the stock market today.
Travel Stocks To Buy [Or Sell] Right Now
American Airlines Group Inc. (NASDAQ: AAL)
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
Spirit Airlines Inc. (NYSE: SAVE)
Marriott International Inc. (NASDAQ: MAR)
American Airlines
Kicking off our list today is American Airlines, or AAL for short. In short, the company is a leading name in the global air travel industry today. On average, the company operates nearly 6,700 daily flights to almost 350 destinations across 50 countries. On top of that, AAL is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. In the past month, AAL stock has risen over 30%.
Just this month, the company announced a partnership renewal with Expedia Group (NASDAQ: EXPE). Travelers who book AAL flights through Expedia Group’s platforms will now be able to customize their travel and choose elevated offers such as Main Plus. The fare products are now available thanks to a direct connection through New Distribution Capability (NDC) technology. Essentially, this makes all of AAL’s offers available to travelers on Expedia Group sites. This integration of NDC effectively scales up the collaboration between AAL and Expedia, which is the airline’s largest third-party agency. Given this collaborative effort, should you invest in AAL stock?
Source: TD Ameritrade TOS
[Read More] Best Stocks To Invest In Right Now? 3 Consumer Staples Stocks To Know
Norwegian Cruise Line
Another travel stock to consider is Norwegian Cruise Line, or Norwegian for short. Being the third-largest cruise line in the world, the company boasts a combined fleet of 28 ships with nearly 60,000 berths. It operates cruise brands such as Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. Furthermore, these brands offer itineraries to more than 490 destinations worldwide. The company also has nine more ships scheduled for delivery through 2027, comprising approximately 24,000 berths. In the past month, NCLH stock has risen by over 25%.
Following last week’s news, it seems that Norwegian is the latest company to hop on the NFT trend. Namely, the company launched its NCL NFT marketplace, along with the launch of its first NFT collection. The collection comprises six NFTs designed by Italian artist Manuel Di Rita, widely known as “Peeta”. Peeta designed the hull art on the Norwegian Prima and sister vessel Norwegian Viva. As a matter of fact, this launch is the first for both Norwegian and the cruise industry and adds to the company’s legacy of pioneering firsts. With this in mind, would you consider adding NCLH stock to your watchlist?
Source: TD Ameritrade TOS
Spirit Airlines
Following that, we have Spirit Airlines, a company that positions itself as an ultra-low fare airline. In fact, the company is a leader in providing customizable travel options that start with an unbundled fare. Also, its Fit Fleet is one of the most fuel-efficient in the U.S. The company also serves destinations throughout the U.S., Latin America, and the Caribbean. In the past month, SAVE stock has risen by nearly 30%. In February, rival discount airline Frontier Airlines (NASDAQ: ULCC ) agreed with Spirit to merge into a discount airline behemoth.
However, it seems that JetBlue (NASDAQ: JBLU) is looking to challenge this merger. Just this month, JetBlue made a $3.6 billion all-cash offer to acquire Spirit. As such, this raises questions about Spirit’s current deal with Frontier. JetBlue CEO Robin Hayes has ramped up his pressure on Frontier, saying that his company’s surprise deal for low-fare rival Spirit Airlines makes much more sense. Frontier, on the other hand, has not upped its bid and there has not been any indication that it will. As the news develops, will you be keeping tabs on SAVE stock?
Source: TD Ameritrade TOS
[Read More] Top Stocks To Buy Now? 4 Communication Stocks To Watch
Marriott International
Finally, we have Marriott International. It is a multinational company that operates, franchises, and licenses lodging to customers all over the world. Its portfolio includes nearly 8,000 properties under 30 leading brands across 139 countries and territories. The company offers Marriott Bonvoy, its highly-awarded travel program. With the recent reopening of Vietnam’s borders, Marriott recently announced plans to expand its portfolio in Vietnam. Notably, it expects to add an impressive 9,000 rooms to the company’s portfolio of highly-reputed hotels.
This includes hotel brands such as Ritz-Carlton Residences, Marriott Hotels, Westin, and Courtyard by Marriott. On top of that, its most global brand, Sheraton Hotels & Resorts, will also be making its debut across popular tourist destinations in Vietnam such as Ha Long Bay. Vietnam, being a top go-to destination for tourists, has experienced record levels of tourism over the past few years, giving a reason for Marriott to expand its presence in the Vietnamese market. As it stands, the company operates ten properties in Vietnam, comprising 3,294 rooms and spanning six of the company’s brands. All in all, would you buy MAR stock?
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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Travel Stocks To Buy [Or Sell] Right Now American Airlines Group Inc. (NASDAQ: AAL) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Spirit Airlines Inc. (NYSE: SAVE) Marriott International Inc. (NASDAQ: MAR) American Airlines Kicking off our list today is American Airlines, or AAL for short. On top of that, AAL is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. In the past month, AAL stock has risen over 30%.
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Travel Stocks To Buy [Or Sell] Right Now American Airlines Group Inc. (NASDAQ: AAL) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Spirit Airlines Inc. (NYSE: SAVE) Marriott International Inc. (NASDAQ: MAR) American Airlines Kicking off our list today is American Airlines, or AAL for short. On top of that, AAL is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. In the past month, AAL stock has risen over 30%.
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Travel Stocks To Buy [Or Sell] Right Now American Airlines Group Inc. (NASDAQ: AAL) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Spirit Airlines Inc. (NYSE: SAVE) Marriott International Inc. (NASDAQ: MAR) American Airlines Kicking off our list today is American Airlines, or AAL for short. On top of that, AAL is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. In the past month, AAL stock has risen over 30%.
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Travel Stocks To Buy [Or Sell] Right Now American Airlines Group Inc. (NASDAQ: AAL) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Spirit Airlines Inc. (NYSE: SAVE) Marriott International Inc. (NASDAQ: MAR) American Airlines Kicking off our list today is American Airlines, or AAL for short. On top of that, AAL is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. In the past month, AAL stock has risen over 30%.
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3584.0
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2022-04-22 00:00:00 UTC
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Airline Stock Roundup: AAL, ALK & UAL Give upbeat Q2 Revenue View, GOL in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-aal-alk-ual-give-upbeat-q2-revenue-view-gol-in-focus
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In the past week, key players in the industry like American Airlines AAL, United Airlines UAL and Alaska Air Group ALK reported their respective first-quarter 2022 earnings results. Even though the carriers incurred a loss in the March quarter with Omicron-led woes hurting performances in the early part of the quarter, the bullish revenue views for the June quarter owing to upbeat air-travel demand, were highly encouraging.
On the non-earnings front, Gol Linhas’ GOL logistics unit GOLLOG inked a Cargo and Logistics Services agreement with Mercado Livre, which operates marketplaces for e-commerce and online auctions. Also, Allegiant Travel Company’s ALGT March traffic was impressive on upbeat travel demand
Recap of the Latest Top Stories
1 American Airlines’ first-quarter 2022 loss (excluding 20 cents from non-recurring items) of $2.32 per share compared favorably with the Zacks Consensus Estimate of a loss of $2.43. Operating revenues of $8,899 million skyrocketed 122.03% year over year and also surpassed the Zacks Consensus Estimate of $8,810.8 million. This massive year-over-year jump reflects improving air-travel demand. With the Omicron-related threat subsiding in the latter part of the quarter, American Airlines posted record sales in March. The month marked the first period wherein AAL’s total revenues could exceed the 2019 levels since the advent of the pandemic.
Driven by soaring demand as evidenced by the healthy scenario with respect to bookings, management expects AAL to reap profit in the June quarter. The top-line guidance was naturally very bullish. Total revenues in the second quarter of 2022 are anticipated to be roughly 6-8% higher than the level recorded in second-quarter 2019. Management expects total revenue per available seat mile (TRASM: a key measure of unit revenue) to be 14-16% higher than the second-quarter 2019 actuals.
American Airlines, currently carrying a Zacks Rank #3 (Hold), reported average fuel price per gallon (including related taxes) of $2.80, touching the lower end of the first-quarter guidance in the $2.80-$2.85 band. The story about the Q1 guidance was covered in the previous week’s write-up.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss reported by UAL as coronavirus fears continue to squeeze air-travel demand. Results were hurt by Omicron-induced softness in travel demand during the first half of the reported quarter. Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million.
UAL expects to revisit profitability in the second quarter with an operating margin (both on a reported and adjusted basis) of 10%. TRASM is estimated to climb about 17% in the ongoing quarter from the comparable period’s level in 2019. UAL is seeing steady recovery in business travel demand and expects improvement in international demand.
3. Alaska Air incurred a loss (excluding 19 cents from non-recurring items) of $1.33 per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.58. In the year-ago period, ALK had incurred a loss of $3.51. Operating revenues of $1,681 million outperformed the Zacks Consensus Estimate of $1,669.3 million.
Alaska Air expects capacity to decline 6-9% in the second quarter from the comparable period's level in 2019. Revenue passengers are estimated to fall 10-12% in the ongoing quarter from the 2019 level. Passenger load factor is expected to be in the range of 85-88%. Total revenues are forecast to increase 5-8% in the second quarter from the comparable period in 2019. CASM, excluding fuel and special items, is predicted to climb 16-19% in the current quarter from the 2019 level. Economic fuel cost per gallon is estimated to be in the band of $3.25-$3.30 in the second quarter.
4. At Allegiant, scheduled traffic (measured in revenue passenger miles) surged 56% in March 2022 from the year-ago levels. Capacity (measured in available seat miles) for scheduled service inched up 0.6% from the March 2021 reading. With the traffic surge outweighing capacity expansion, the load factor (% of seats filled by passengers) in March expanded 30.7 points to 86.5% from the year-ago period’s levels. For the total system (including scheduled service and fixed fee contract), Allegiant carried 52.3% more passengers in March 2022 from the year-ago period’s level. Per Drew Wells, Allegiant’s senior vice president, revenue. "Demand began picking up in earnest mid-February resulting in load factors for the month of March above levels observed in 2019. TRASM during the month of March exceeded March of 2019 on capacity growth of over 14 percent. Demand strength has continued into the second quarter with booking growth exceeding planned forward capacity growth for the quarter. We expect second quarter load factors to exceed 2019 levels, with a more than ten percent increase in TRASM on double-digit anticipated capacity growth."
5. The 10-year deal inked by Gol Linhas with Mercado Livre aims to cater to increasing e-commerce demand in Brazil. In fact, GOLLOG, which offers cargo services to 52 airports and over 3,900 destinations in Brazil, aims to widen its range of services and tonnage capacity by 80% during 2023. It intends to generate additional incremental revenues of more than R$1 billion in five years. GOLLOG intends to invest in up to 12 Boeing converted freighters under the e-commerce deal
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 green over the past week. Strong air-travel demand, which led to impressive revenue projections for the second quarter of 2022 from American Airlines and others, was behind the uptick. The NYSE ARCA Airline Index has increased 4.9% to $84.42. Over the past six months, the NYSE ARCA Airline Index has declined 4.6%..
What's Next in the Airline Space?
With some more airlines slated to report their first-quarter 2022 financials shortly, investors interested in the industry will keep a close eye on how they perform.
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United Airlines Holdings Inc (UAL): 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
Allegiant Travel Company (ALGT): 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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In the past week, key players in the industry like American Airlines AAL, United Airlines UAL and Alaska Air Group ALK reported their respective first-quarter 2022 earnings results. The month marked the first period wherein AAL’s total revenues could exceed the 2019 levels since the advent of the pandemic. Driven by soaring demand as evidenced by the healthy scenario with respect to bookings, management expects AAL to reap profit in the June quarter.
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In the past week, key players in the industry like American Airlines AAL, United Airlines UAL and Alaska Air Group ALK reported their respective first-quarter 2022 earnings results. The month marked the first period wherein AAL’s total revenues could exceed the 2019 levels since the advent of the pandemic. Driven by soaring demand as evidenced by the healthy scenario with respect to bookings, management expects AAL to reap profit in the June quarter.
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In the past week, key players in the industry like American Airlines AAL, United Airlines UAL and Alaska Air Group ALK reported their respective first-quarter 2022 earnings results. The month marked the first period wherein AAL’s total revenues could exceed the 2019 levels since the advent of the pandemic. Driven by soaring demand as evidenced by the healthy scenario with respect to bookings, management expects AAL to reap profit in the June quarter.
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In the past week, key players in the industry like American Airlines AAL, United Airlines UAL and Alaska Air Group ALK reported their respective first-quarter 2022 earnings results. The month marked the first period wherein AAL’s total revenues could exceed the 2019 levels since the advent of the pandemic. Driven by soaring demand as evidenced by the healthy scenario with respect to bookings, management expects AAL to reap profit in the June quarter.
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3585.0
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2022-04-22 00:00:00 UTC
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Investment Opportunity Breakdown: Airline Stocks
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AAL
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https://www.nasdaq.com/articles/investment-opportunity-breakdown%3A-airline-stocks
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s Note: This article was updated on April 22, 2022, to bring you the latest available information.
Airline stocks were hit hard by the onset of the Covid-19 pandemic. Travel declined as stay-at-home orders were issued and airplanes were viewed as vectors for transmission of the virus. Covid variants have come and gone since then, and some studies indicate flying poses a lower exposure risk than previously thought. However, these stocks are still on a long road to recovery as the pandemic ebbs and flows.
When Covid struck, airlines were forced to cancel thousands of flights as would-be travelers followed shelter-in-place orders. When planes did take off, it was often with only 5% to 15% of their total passenger capacity. According to the U.S. Government Accountability Office (GAO), in April 2020, air travel was 96% lower than it was a year prior.
Airliners responded to the crisis with several budget-cutting measures, ranging from layoffs to the retirement of older aircraft. To mitigate Covid spread, many companies also blocked middle seats and otherwise limited the number of passengers on flights.
Domestic travel has made a comeback since March 2020, with more than 2.3 million travelers flying for Thanksgiving in 2021. The industry is far from fallible — just a month later, the omicron variant of Covid began to spread and contributed to hundreds of flight cancellations.
But travel agencies are seeing a large uptick in spring and summer trip bookings. American Airlines (NASDAQ:AAL) expects to see second-quarter travel reach 94% of 2019 levels, and United Airlines (NASDAQ:UAL) expects to profit again in 2022. As the pandemic evolves, here’s what you need to know about airline stocks.
How Covid-19 Changed Airline Stocks
The nature of air travel — several passengers in a small space for prolonged periods — meant the industry needed to adapt quickly to provide a safe flying experience. Until recently, masks were required on public transportation, including flights. Most airlines have also implemented their own policies, such as contact tracing and vaccine requirements for employees.
According to a report by McKinsey, 2020 airline revenues only reached 40% of their 2019 total. When the report was released in spring 2021, the industry was not expected to fully recover to prior levels until 2024 at the earliest.
As demonstrated by the 2021 holiday season, airline stocks are still at the mercy of Covid-19 variants. Omicron infections have since peaked in several U.S. cities, and more than 60% of the U.S. population is fully vaccinated. But additional variants or negative developments in the pandemic could cause turbulence in these stocks.
However, despite the turmoil of the past two years, airline stocks were relatively resilient to the omicron variant’s effects. In fact, they rallied despite thousands of cancelled flights between Christmas Eve and New Year’s Day at the end of 2021. This indicates these stocks could be less susceptible to fluctuations caused by Covid-19 in the future.
What Obstacles Lie Ahead for Airline Stocks?
Airfares are still recovering from their steep decline in 2022, but they’re expected to reach pre-pandemic levels this summer. Travel in late March was just shy of 2019 levels, and pent-up demand should continue through this summer. Domestic ticket prices have increased 40% since January, with fares up as much as 28% from 2019 levels.
Price-booking app Hopper expects domestic airline tickets to rise 7% every month through June 2022. Stronger travel demand and pressure to make up for lost revenue are driving the increase. Airlines are also seeing higher costs, as supply constraints and the Russian invasion of Ukraine have resulted in surging fuel prices.
But even as domestic travel improves, international and business travel are lagging on the road to recovery. The latter is expected to recover to only 65% to 80% of its previous levels, according to a survey conducted by Deloitte. Business travel has been a significant source of income for airlines, making these numbers problematic.
On the labor side, airlines are experiencing a serious shortage of pilots and other staff. This has resulted in canceled and delayed flights. By December 2021, American Airlines had to cut at least 20% of its flights. The airline recently announced it will begin busing passengers to its Philadelphia hub to make up for the shortage. Additionally, JetBlue Airways (NASDAQ:JBLU) will cut service by 10% this spring and summer.
Southwest Airlines (NYSE:LUV) and Delta Air Lines (NYSE:DAL) have taken several measures to bring in and train new pilots, and several companies are offering pay bumps to attract new hires. For big-name airlines, pilots typically need a four-year degree with a six-figure price tag. However, companies like Delta are cutting new hires some slack by reducing the educational requirement.
How Airline Companies Have Adapted
Now, airliners are looking to move forward and begin recovering from their pandemic lows. They have several obstacles to overcome, and companies have taken unique approaches as they forge ahead.
At the end of the year, Southwest Airlines raised its minimum wage and went on a hiring spree to counter Covid-related labor shortages. It also offered perks for flight attendants to incentivize employees to work for the holidays. Southwest faced a high-profile string of cancellations on Columbus Day weekend in 2021 due to labor shortages, air traffic control and weather issues. During the holiday season, it took these steps to prevent a repeat of the mishap.
Other major airlines saw mass cancellations during the holiday season — partially related to weather, but also linked to Covid-19. Among them was Delta Air Lines, which has since stabilized with less than 1% of flights cancelled by mid-January. The company was able to turn a profit as early as the second quarter of 2021 as it upped hiring and purchased more aircraft.
United Airlines was also subject to omicron-related cancellations during the holiday season. It took a defensive stance at the onset of the pandemic by maintaining its staff and cutting more flights. As a result, the airline’s performance was more stable in summer 2021 compared to its competitors. United now has more than $20 billion in liquidity to keep it going through the twists and turns of the pandemic.
As Covid-19 becomes endemic, airline stocks will begin to return to 2019 levels. The 2021 holiday season showed these stocks are sensitive to pandemic-related developments, but unlikely to nosedive again like they did in 2020.
Top Airline Stocks to Watch
On the date of publication, Sydney Sweeney did not hold (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.
Sydney Sweeney is an assistant editor at InvestorPlace.
The post Investment Opportunity Breakdown: Airline Stocks appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ:AAL) expects to see second-quarter travel reach 94% of 2019 levels, and United Airlines (NASDAQ:UAL) expects to profit again in 2022. How Covid-19 Changed Airline Stocks The nature of air travel — several passengers in a small space for prolonged periods — meant the industry needed to adapt quickly to provide a safe flying experience. Southwest faced a high-profile string of cancellations on Columbus Day weekend in 2021 due to labor shortages, air traffic control and weather issues.
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American Airlines (NASDAQ:AAL) expects to see second-quarter travel reach 94% of 2019 levels, and United Airlines (NASDAQ:UAL) expects to profit again in 2022. When the report was released in spring 2021, the industry was not expected to fully recover to prior levels until 2024 at the earliest. Southwest Airlines (NYSE:LUV) and Delta Air Lines (NYSE:DAL) have taken several measures to bring in and train new pilots, and several companies are offering pay bumps to attract new hires.
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American Airlines (NASDAQ:AAL) expects to see second-quarter travel reach 94% of 2019 levels, and United Airlines (NASDAQ:UAL) expects to profit again in 2022. How Covid-19 Changed Airline Stocks The nature of air travel — several passengers in a small space for prolonged periods — meant the industry needed to adapt quickly to provide a safe flying experience. How Airline Companies Have Adapted Now, airliners are looking to move forward and begin recovering from their pandemic lows.
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American Airlines (NASDAQ:AAL) expects to see second-quarter travel reach 94% of 2019 levels, and United Airlines (NASDAQ:UAL) expects to profit again in 2022. As the pandemic evolves, here’s what you need to know about airline stocks. This has resulted in canceled and delayed flights.
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2022-04-22 00:00:00 UTC
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Rate Hike Talks, Surging Bond Yields Overwhelm Wall Street
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AAL
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https://www.nasdaq.com/articles/rate-hike-talks-surging-bond-yields-overwhelm-wall-street
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nan
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The earnings season is bringing Wall Street no reprieve from the volatility that has plagued it over the last few months. That was made clear at the beginning of the week, with stocks ultimately finishing lower on Monday, after the 10-year U.S. Treasury yield surged to a three-year high, while natural gas prices jumped to their highest level since 2008. Upbeat earnings from Johnson & Johnson (JNJ) helped the Dow Jones Industrial Average (DJI) add nearly 500 points on Tuesday, and the Nasdaq Composite Index (IXIC) and S&P 500 Index (SPX) logged their best day in over one month as tech stocks rallied. The Dow's rally extended into Wednesday as more blue-chip names stepped into the earnings confessional, though the Nasdaq and S&P 500 had already started to cool.
The market took a sharp turn for the worse on Thursday, with rising bond yields adding pressure after Federal Reserve Chairman Jerome Powell suggested bigger rate hikes might be coming next month to counteract high inflation, with a 50 basis point hike now on the table. In turn, bond yields resumed their climb toward 2018 highs. Stocks were last seen eyeing losses on Friday, with the Dow pacing for its fourth-straight weekly drop, while the SPX and IXIC were on track a third consecutive week in the red.
Busy Week of Earnings
The earnings season is in full-swing, with multiple high-profile names stepping into the spotlight. Among them was Tesla (TSLA), which posted a top- and bottom-line beat, and predicted 60% delivery growth for 2022. Pharmaceutical name JNJ drew attention, too, hitting a post-earnings record high, despite suspending sales guidance of its Covid-19 vaccine. Meanwhile, analysts and options traders alike were eyeing J.B. Hunt's (JBHT) upbeat results, and Procter & Gamble (PG) edged higher on a strong sales forecast for the year.
The talk of the town was Netflix (NFLX), though, which tumbled after posting a surprise subscriber loss. Airlines were in focus as well, with American Airlines (AAL) soaring on high travel demand, while calls popped on struggling United Airlines (UAL) ahead of its report. Another notable name on the earnings docket was AT&T (T), which landed a red-hot options pit after announcing a core wireless revenue jump. The last few names to enter the confessional were Snap (SNAP), which dipped after missing estimates on both the top- and bottom-line, and Cleveland-Cliffs (CLF), which popped on better-than-expected results.
Top Analyst Calls
Analysts made several calls, too, as they worked their way through the earnings deluge. Wendy's (WEN) kicked off the week with a downgrade to "market perform," with BMO predicting high inflation to hit the fast-food giant harder than some of its peer. Sirius XM (SIRI) was under fire as well, drawing out a downgrade to "underweight" from Morgan Stanley. Meanwhile, social media giant Snap (SNAP) scored fresh coverage ahead of its earnings report.
Elsewhere, Progressive (PGR) tumbled after Piper Sandler hit it with a downgrade and price-target cut, with the analyst in coverage noting excessive optimism around auto insurance rates. Plus, the brokerage's review of the renewable energy sector saw it slashing its price target on Enphase Energy (ENPH). In other news, options bears responded to JetBlue's (JBLU) downgrade, and Dow's (DOW) upbeat earnings attracted a flurry of bull notes.
Big Tech Earnings in Focus Next Week
The earnings deluge continues next week with multiple Big Tech reports, which will be accompanied by a slew of indicators to keep investors busy during the last week of April. Reports will be coming from the likes of 3M (MMM), Alphabet (GOOGL), Amazon.com (AMZN), Apple (AAPL), Boeing (BA), Chevron (CVX), Coca-Cola (KO), Intel (INTC), Microsoft (MSFT), Pinterest (PINS) Spotify(SPOT), and Twitter (TWTR), as well as many others. In addition, durable goods orders, pending home sales, and the Chicago Purchasing Managers' Index (PMI) are on the calendar. You can prepare for what lies ahead by understanding what high oil prices could mean for the SPX, and keeping tabs on these "make or break" levels for the index.
The views and 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 were in focus as well, with American Airlines (AAL) soaring on high travel demand, while calls popped on struggling United Airlines (UAL) ahead of its report. That was made clear at the beginning of the week, with stocks ultimately finishing lower on Monday, after the 10-year U.S. Treasury yield surged to a three-year high, while natural gas prices jumped to their highest level since 2008. Meanwhile, analysts and options traders alike were eyeing J.B. Hunt's (JBHT) upbeat results, and Procter & Gamble (PG) edged higher on a strong sales forecast for the year.
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Airlines were in focus as well, with American Airlines (AAL) soaring on high travel demand, while calls popped on struggling United Airlines (UAL) ahead of its report. Top Analyst Calls Analysts made several calls, too, as they worked their way through the earnings deluge. Meanwhile, social media giant Snap (SNAP) scored fresh coverage ahead of its earnings report.
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Airlines were in focus as well, with American Airlines (AAL) soaring on high travel demand, while calls popped on struggling United Airlines (UAL) ahead of its report. Upbeat earnings from Johnson & Johnson (JNJ) helped the Dow Jones Industrial Average (DJI) add nearly 500 points on Tuesday, and the Nasdaq Composite Index (IXIC) and S&P 500 Index (SPX) logged their best day in over one month as tech stocks rallied. Busy Week of Earnings The earnings season is in full-swing, with multiple high-profile names stepping into the spotlight.
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Airlines were in focus as well, with American Airlines (AAL) soaring on high travel demand, while calls popped on struggling United Airlines (UAL) ahead of its report. Upbeat earnings from Johnson & Johnson (JNJ) helped the Dow Jones Industrial Average (DJI) add nearly 500 points on Tuesday, and the Nasdaq Composite Index (IXIC) and S&P 500 Index (SPX) logged their best day in over one month as tech stocks rallied. Busy Week of Earnings The earnings season is in full-swing, with multiple high-profile names stepping into the spotlight.
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2022-04-22 00:00:00 UTC
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Time for Reopening-Friendly Travel & Leisure ETFs?
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https://www.nasdaq.com/articles/time-for-reopening-friendly-travel-leisure-etfs
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As the pandemic is slowly turning into an endemic, economic-reopening-friendly stocks, like leisure stocks, have flied higher. Airlines, hotels and resultants stocks caught attention in recent trading as U.S. Global Jets ETF JETS and SonicShares Airlines, Hotels, Cruise Lines ETF TRYP are up 8.1% and 2.6%, this year, respectively against a 6.4% decline in the S&P 500.
"This pent-up demand is also evident in the surge of new business openings in nightlife, beauty, and travel and hotels, which all increased from the 2021 levels in Q1. Consumer behavior and business activity suggested favorable economic conditions for local businesses in the first quarter," said Pria Mudan, data science leader at Yelp, as quoted on Yahoo Finance.
And why not? There has been widespread vaccination globally. Moderna MRNA said trial results suggest redesigned vaccines can better protect against variants. Novavax NVAX indicated that vaccine targeting Covid and flu delivered upbeat results in early data. Pfizer-BioNTech COVID-19 vaccine booster too created strong immune response in kids of 5–11 years.
No wonder, travel and leisure stocks have gained momentum in the past month and outdid the broder market.
Airlines Taking Speed
Airlines such as United (UAL) and American AAL predict reaching profitability amid strong demand in the latest earnings release. A stronger fare environment to keep pace with the surge in fuel costs is another plus for the companies.
Investors should note that for the second quarter of this year, United Airlines is forecasting a 10% operating margin, and the highest quarterly sales in its history, with revenue per passenger mile up 17% over 2019, as higher fares offset a spike in expenses. There was a rise in bookings (both Spring Breaks and business travel) for airlines in March.
Luxury Hotels Look Grand Again
The U.S. hotel industry reported revenue per available room (RevPAR) in 2021 that was 83.2% of the pre-pandemic comparable, according to the latest data from STR, pointing to the recovery. Thanks to Spring Break travel, the U.S. hotel industry reported 4% increase in RevPAR in March from March 2019. Average daily rate (ADR) was 10.9% in the month from the similar index while occupancy was off 6.2%, per str.com. Luxury hotel operator Marriott International (MAR) has been hitting new highs recently. The stock is up 13% year-to-date.
Restaurant Industry Looks Yummy Too
The foodservice industry is forecast to touch $898 billion in sales in 2022, returning to pre-COVID pandemic trajectory, the National Restaurant Association said. Pent-up demand for restaurant dining has also increased. Fast food chain giant McDonalds (MCD) is up 8.7% past month. Brinker International has gained 7.9% while Dave and Buster's (PLAY) is up 11.7%.
Against this backdrop, below we highlight a few travel and leisure ETFs that beat the S&P 500 (down 1.5%) past month.
Reopening-Friendly ETFs in Focus
U.S. Global Jets ETF (JETS) – Up 10.3% Past Month
Defiance Hotel Airline and Cruise ETF CRUZ – Up 8.4% Past Month
SonicShares Airlines, Hotels, Cruise Lines ETF (TRYP) – Up 8.4% Past Month
AdvisorShares Hotel ETF BEDZ – Up 3.4% Past Month
ALPS Global Travel Beneficiaries ETF JRNY – Up 2.7% Past Month
AdvisorShares Restaurant ETF EATZ – Down 0.8% Past Month
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Moderna, Inc. (MRNA): Free Stock Analysis Report
Novavax, Inc. (NVAX): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
U.S. Global Jets ETF (JETS): ETF Research Reports
AdvisorShares Restaurant ETF (EATZ): ETF Research Reports
AdvisorShares Hotel ETF (BEDZ): ETF Research Reports
SonicShares Airlines, Hotels, Cruise Lines ETF (TRYP): ETF Research Reports
Defiance Hotel, Airline, and Cruise ETF (CRUZ): ETF Research Reports
ALPS Global Travel Beneficiaries ETF (JRNY): 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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Airlines Taking Speed Airlines such as United (UAL) and American AAL predict reaching profitability amid strong demand in the latest earnings release. American Airlines Group Inc. (AAL): Free Stock Analysis Report "This pent-up demand is also evident in the surge of new business openings in nightlife, beauty, and travel and hotels, which all increased from the 2021 levels in Q1.
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Airlines Taking Speed Airlines such as United (UAL) and American AAL predict reaching profitability amid strong demand in the latest earnings release. American Airlines Group Inc. (AAL): Free Stock Analysis Report Global Jets ETF JETS and SonicShares Airlines, Hotels, Cruise Lines ETF TRYP are up 8.1% and 2.6%, this year, respectively against a 6.4% decline in the S&P 500.
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Airlines Taking Speed Airlines such as United (UAL) and American AAL predict reaching profitability amid strong demand in the latest earnings release. American Airlines Group Inc. (AAL): Free Stock Analysis Report Global Jets ETF (JETS) – Up 10.3% Past Month Defiance Hotel Airline and Cruise ETF CRUZ – Up 8.4% Past Month SonicShares Airlines, Hotels, Cruise Lines ETF (TRYP) – Up 8.4% Past Month AdvisorShares Hotel ETF BEDZ – Up 3.4% Past Month ALPS Global Travel Beneficiaries ETF JRNY – Up 2.7% Past Month AdvisorShares Restaurant ETF EATZ – Down 0.8% Past Month
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American Airlines Group Inc. (AAL): Free Stock Analysis Report Airlines Taking Speed Airlines such as United (UAL) and American AAL predict reaching profitability amid strong demand in the latest earnings release. There has been widespread vaccination globally.
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2022-04-22 00:00:00 UTC
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Here’s Just How Much Higher Fuel Prices Hurt Southwest Airlines
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https://www.nasdaq.com/articles/heres-just-how-much-higher-fuel-prices-hurt-southwest-airlines
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airline stocks are having a reasonably strong 2022. The industry, as measured by the US Global Jets ETF (NYSEARCA:JETS), is up 3.5% year-to-date. That’s well ahead of the stock market overall. There are some positive catalysts for the industry, such as further economic reopening and the recent lifting of the mask mandate while flying. Still, many observers might have expected airline stocks to be selling off given the massive increase in the price of crude oil, and by extension, jet fuel. How big of a threat is this actually though? I’ve gone through Southwest Airlines’ (NYSE:LUV) stock latest annual filing to shed some light on this question.
It’s important to note that historically LUV stock has had a lowering operating cost structure than legacy carriers such as American Airlines (NYSE:AAL). So it has slightly more proportional exposure to jet fuel than some of its peers. Regardless, there should be some lessons that apply across the industry.
In the early 2010s, the price of crude oil was around $100 per barrel, roughly where we are today. At that time, Southwest paid $3.25, $3.32, and $3.19 per gallon of jet fuel on average in 2011, 2012, and 2013. Jet fuel made up between 35% and 38% of Southwest’s operating expenses all three years.
In 2014, the price of oil crashed. 2015-17 was the era of very low oil prices. Southwest paid less than $2 per gallon for jet fuel each of those three years, and its percent of operating costs spent on jet fuel plunged to just 23% each year. LUV stock earnings roughly tripled in the late 2010s, and lower fuel prices were a major driver of that. In 2020, thanks to the pandemic, the average price of jet fuel plunged to just $1.45 per gallon and Southwest saw just 14% of its operating costs go to jet fuel.
7 Top-Rated Biotech Stocks to Buy for Q2
Oil prices have moved up sharply since then, however. In fourth-quarter of 2021, Southwest was paying $2.25 per gallon for jet fuel and it was back up to 22% of operating costs. Things are going much higher now though. Prices have topped $3 in many places, and reached as high as $7 at one point due to near-term shortages.
In Q4 of 2021, with jet fuel at $2.25 per gallon, Southwest spent a total of $1 billion on jet fuel. If prices settle at $3 per gallon — which might be slightly optimistic given just how much crude oil has rallied — this would increase Southwest’s quarterly fuel spend to roughly $1.4 billion, or another $1.6 billion annually in added fuel expense.
Prior to the pandemic, Southwest was a strongly profitable airline. It generated operating profits of $3.4 billion, $3.2 billion, and $3.0 billion in 2017, 2018, and 2019 respectively. Against that backdrop, current oil prices potentially might eat up something like a third to a half of Southwest’s normal levels of profitability.
It’s a significant blow to the business but not the end of the world. And, of course, this is just focused on the cost side. With demand for travel currently rebounding sharply, Southwest and other airlines may be able to raise prices meaningfully and offset these rising fuel charges.
On the date of publication, Ian Bezek 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 Here’s Just How Much Higher Fuel Prices Hurt Southwest Airlines 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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It’s important to note that historically LUV stock has had a lowering operating cost structure than legacy carriers such as American Airlines (NYSE:AAL). Still, many observers might have expected airline stocks to be selling off given the massive increase in the price of crude oil, and by extension, jet fuel. With demand for travel currently rebounding sharply, Southwest and other airlines may be able to raise prices meaningfully and offset these rising fuel charges.
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It’s important to note that historically LUV stock has had a lowering operating cost structure than legacy carriers such as American Airlines (NYSE:AAL). I’ve gone through Southwest Airlines’ (NYSE:LUV) stock latest annual filing to shed some light on this question. In 2020, thanks to the pandemic, the average price of jet fuel plunged to just $1.45 per gallon and Southwest saw just 14% of its operating costs go to jet fuel.
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It’s important to note that historically LUV stock has had a lowering operating cost structure than legacy carriers such as American Airlines (NYSE:AAL). Southwest paid less than $2 per gallon for jet fuel each of those three years, and its percent of operating costs spent on jet fuel plunged to just 23% each year. In 2020, thanks to the pandemic, the average price of jet fuel plunged to just $1.45 per gallon and Southwest saw just 14% of its operating costs go to jet fuel.
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It’s important to note that historically LUV stock has had a lowering operating cost structure than legacy carriers such as American Airlines (NYSE:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airline stocks are having a reasonably strong 2022. In 2020, thanks to the pandemic, the average price of jet fuel plunged to just $1.45 per gallon and Southwest saw just 14% of its operating costs go to jet fuel.
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2022-04-22 00:00:00 UTC
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U.S. Airlines Industry Flying in Grey Skies
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https://www.nasdaq.com/articles/u.s.-airlines-industry-flying-in-grey-skies
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nan
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The U.S. airlines industry seems to be on cloud nine as traveling demand takes off in the United States. Major airlines in the country are expecting to return to pre-COVID levels soon (probably in the current quarter), while a few have already achieved the same.
Interestingly, the S&P 500 Airlines Industry index increased 15.5% in the past month and has advanced 10.2% year-to-date against a fall of 10.6% last year.
A quick peek into the demand and supply of the U.S. airlines industry will help us understand the ongoing trend better.
Demand Galore
Demand for leisure and business travel and cargo transportation is high in the industry. Relaxation in pandemic-related norms related to vaccinations and wearing of masks, along with a strict take on proper sanitization, have contributed to the momentum.
Digitization of airports activities to make the travel hassle-free, easy means of booking tickets online, advanced airport mechanisms, use of green resources, and digital security services have added new vigor to the industry and been advantageous in increasing footfall.
In addition, airlines are trying to attract travelers with tempting packages, frequent services to hot traveling destinations, and better on-flight and off-flight assistance and services.
According to the latest United States Department of Transportation (DOT) report, the domestic available seat miles (ASM) are projected to grow 4.5% annually from 2021 to 2041. Also, revenue passenger miles (RPM) are expected to increase 5.7% annually, and enplanements are likely to expand 5.4%.
For the international aviation industry, the federal agency anticipates a 6.1% annual rise in ASM, a 7.5% increase in RPM, and a 6.6% hike in enplanements during the 2021-2041 timeframe.
Supply Conundrums
Airlines’ services were hit hard by the COVID-19 pandemic, as both domestic and international traveling almost stopped. With the economy back on track, U.S. airlines companies are trying to provide safe and improved services at an effective cost.
However, the recent surge in fuel costs, especially after the onset of the Ukraine-Russia war, has hit the industry’s margins and profitability.
According to the U.S. Energy Information Administration (EIA), the spot crude oil prices (WTI) have grown 33.5% in the first quarter of 2022 from the end of 2021 and advanced 7.7% since the beginning of April. Jet fuel costs have surged 77.5% in the first quarter from the 2021 levels and grown 0.3% so far in April.
In its Short-Term Energy Outlook report published in April, the federal agency predicts WTI crude oil prices to increase 29.8% in 2023 from the 2021 base levels, and jet fuel costs are expected to surge 35.69% during the same time period.
In addition to fuel costs, labor problems, stiff competition from peer companies, technical issues in existing aircraft fleets, the requirement to constantly upgrade the fleet, and abiding by the strict governmental norms are some of the key challenges for the industry.
While the industry participants are confident of managing the fuel costs, other concerns have to be cautiously dealt with.
Speedy Recovery on the Cards?
To understand the industry's health, we have discussed two American airline companies that have released their first quarter 2022 results this week.
United Airlines Holdings, Inc. (NASDAQ: UAL)
The $16.6-billion company has reported weaker-than-expected results for the first quarter of 2022. The quarterly loss per share of $4.24 was above the consensus estimate of a loss of $4.21 per share. Revenues of $7.57 billion came in below analysts' estimates of $7.68 billion.
Despite the miss, the company’s projections for the second quarter caught investors’ attention. Total revenue per available seat mile (TRASM) in the second quarter is expected to increase 17% over the 2019 levels. United Airlines also expects to generate profits in the quarter, with operating margins of 10%.
The company’s CEO Scott Kirby said, “The demand environment is the strongest it's been in my 30 years in the industry – and United and its customers will benefit more than any other airline.” He sees the second quarter to be a historic inflection point for the company.
Per the TipRanks Website Traffic tool, visits to the United Airlines site (united.com) increased 17.12% in March 2022 from the previous month. Meanwhile, the footfall on the company's website has grown 29.82% year-to-date, compared to the same period last year.
However, the prevalent headwinds concerning the company have kept the investors’ sentiments at bay for now, as indicated by the company’s Hold consensus rating (based on four Buys, seven Holds, and three Sells). United Airlines’ price forecast of $52.36 reflects 2.97% upside potential from current levels.
Year-to-date, shares of United Airlines have grown 11.8%.
American Airlines Group Inc. (NASDAQ: AAL)
The company’s results for the first quarter were impressive, with the net loss (adjusted) of $2.32 per share being better than the consensus estimate of $2.40 per share. Revenues of $8.9 billion were above the consensus estimate of $8.83 billion.
For the second quarter of 2022, the company anticipates revenues to increase within the 6%-8% range from the comparable quarter of 2019. Capacity is predicted to represent 92%-94% of 2019-level (second quarter).
American Airlines’ CEO Robert Isom opines that “the demand environment is very strong” and hence expects to be “profitable in the second quarter based on current fuel price assumptions.”
According to the TipRanks Website Traffic tool, AAL's website traffic grew 18.7% in March, compared to February. Further, the footfall on the company's website has grown 34.91% year-to-date against the same period last year.
However, looking at the company’s Moderate Sell consensus rating (based on nine Holds and four Sells), it is quite clear that analysts are cautious. American Airlines’ average price target of $16.46 suggests 18.60% downside potential.
Shares of this $13.1-billion company have grown 7.8% so far this year.
Conclusion
The U.S. airlines industry has immense growth potential as the economy is advancing well on the recovery path. The presence of major and minor hiccups is unavoidable, but the players (like United Airlines and American Airlines) are determined to emerge as winners.
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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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American Airlines Group Inc. (NASDAQ: AAL) The company’s results for the first quarter were impressive, with the net loss (adjusted) of $2.32 per share being better than the consensus estimate of $2.40 per share. American Airlines’ CEO Robert Isom opines that “the demand environment is very strong” and hence expects to be “profitable in the second quarter based on current fuel price assumptions.” According to the TipRanks Website Traffic tool, AAL's website traffic grew 18.7% in March, compared to February. According to the latest United States Department of Transportation (DOT) report, the domestic available seat miles (ASM) are projected to grow 4.5% annually from 2021 to 2041.
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American Airlines’ CEO Robert Isom opines that “the demand environment is very strong” and hence expects to be “profitable in the second quarter based on current fuel price assumptions.” According to the TipRanks Website Traffic tool, AAL's website traffic grew 18.7% in March, compared to February. American Airlines Group Inc. (NASDAQ: AAL) The company’s results for the first quarter were impressive, with the net loss (adjusted) of $2.32 per share being better than the consensus estimate of $2.40 per share. According to the latest United States Department of Transportation (DOT) report, the domestic available seat miles (ASM) are projected to grow 4.5% annually from 2021 to 2041.
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American Airlines Group Inc. (NASDAQ: AAL) The company’s results for the first quarter were impressive, with the net loss (adjusted) of $2.32 per share being better than the consensus estimate of $2.40 per share. American Airlines’ CEO Robert Isom opines that “the demand environment is very strong” and hence expects to be “profitable in the second quarter based on current fuel price assumptions.” According to the TipRanks Website Traffic tool, AAL's website traffic grew 18.7% in March, compared to February. The company’s CEO Scott Kirby said, “The demand environment is the strongest it's been in my 30 years in the industry – and United and its customers will benefit more than any other airline.” He sees the second quarter to be a historic inflection point for the company.
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American Airlines Group Inc. (NASDAQ: AAL) The company’s results for the first quarter were impressive, with the net loss (adjusted) of $2.32 per share being better than the consensus estimate of $2.40 per share. American Airlines’ CEO Robert Isom opines that “the demand environment is very strong” and hence expects to be “profitable in the second quarter based on current fuel price assumptions.” According to the TipRanks Website Traffic tool, AAL's website traffic grew 18.7% in March, compared to February. Jet fuel costs have surged 77.5% in the first quarter from the 2021 levels and grown 0.3% so far in April.
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3590.0
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2022-04-22 00:00:00 UTC
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Japanese shares end lower on weak Wall Street; Toshiba jumps
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AAL
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https://www.nasdaq.com/articles/japanese-shares-end-lower-on-weak-wall-street-toshiba-jumps
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nan
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nan
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TOKYO, April 22 (Reuters) - Japanese shares closed lower on Friday for the first time in four sessions, as they tracked Wall Street's overnight weakness following the U.S. central bank's views on interest rates, while Toshiba soared after it opened doors for a buyout.
The Nikkei share average .N225 ended 1.63% lower at 27,105.26 and the broader Topix .TOPX was down 1.19% at 1,905.15. Technology and growth stocks led the retreat.
For the week, the Nikkei shed 0.04%, while the Topix was up 0.47%.
Toshiba 6502.T jumped 4.65% after the embattled Japanese conglomerate said it would solicit deal offers, including on a potential buyout.
Meanwhile, Wall Street ended lower overnight, with the Nasdaq dropping more than 2%, as investors reacted to U.S. Federal Reserve officials, including Chair Jerome Powell, dropping hints of a half-point interest rate increase. .N
"The Japanese market reacted too much. Investors should have already factored in rising U.S. interest rates," said Jun Morita, general manager of the research department at Chibagin Asset Management.
"On the other hand, it is hard to make positive bids before the corporate earnings season kicks off."
Chip-making equipment maker Tokyo Electron 8035.T led declines on the Nikkei, falling 2.1%. Uniqlo clothing shop operator Fast Retailing 9983.T lost 2.7% and technology investor SoftBank Group 9984.T dropped 3.01%.
All but three sectors among the Tokyo Stock Exchange's 33 industry sub-indexes fell.
The insurance sector .IINSU.T gained 0.91% as U.S. Treasury yields rose. US/
Airlines .IAIRL.T gained 0.63% after United Airlines Holdings UAL.O and American Airlines Group AAL.O predicted a return to profit in the current quarter due to booming travel demand.
Railways .IRAIL.T gained 0.01%.
Shionogi & Co 4507.T gained 1.06% after a report that the U.S. government is in talks with the Japanese drugmaker to acquire supplies of its experimental COVID-19 treatment.
(Reporting by Junko Fujita; Editing by Subhranshu Sahu and Uttaresh.V)
((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters Messaging:junko.fujita.reuters.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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US/ Airlines .IAIRL.T gained 0.63% after United Airlines Holdings UAL.O and American Airlines Group AAL.O predicted a return to profit in the current quarter due to booming travel demand. TOKYO, April 22 (Reuters) - Japanese shares closed lower on Friday for the first time in four sessions, as they tracked Wall Street's overnight weakness following the U.S. central bank's views on interest rates, while Toshiba soared after it opened doors for a buyout. Toshiba 6502.T jumped 4.65% after the embattled Japanese conglomerate said it would solicit deal offers, including on a potential buyout.
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US/ Airlines .IAIRL.T gained 0.63% after United Airlines Holdings UAL.O and American Airlines Group AAL.O predicted a return to profit in the current quarter due to booming travel demand. TOKYO, April 22 (Reuters) - Japanese shares closed lower on Friday for the first time in four sessions, as they tracked Wall Street's overnight weakness following the U.S. central bank's views on interest rates, while Toshiba soared after it opened doors for a buyout. The Nikkei share average .N225 ended 1.63% lower at 27,105.26 and the broader Topix .TOPX was down 1.19% at 1,905.15.
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US/ Airlines .IAIRL.T gained 0.63% after United Airlines Holdings UAL.O and American Airlines Group AAL.O predicted a return to profit in the current quarter due to booming travel demand. TOKYO, April 22 (Reuters) - Japanese shares closed lower on Friday for the first time in four sessions, as they tracked Wall Street's overnight weakness following the U.S. central bank's views on interest rates, while Toshiba soared after it opened doors for a buyout. Meanwhile, Wall Street ended lower overnight, with the Nasdaq dropping more than 2%, as investors reacted to U.S. Federal Reserve officials, including Chair Jerome Powell, dropping hints of a half-point interest rate increase.
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US/ Airlines .IAIRL.T gained 0.63% after United Airlines Holdings UAL.O and American Airlines Group AAL.O predicted a return to profit in the current quarter due to booming travel demand. TOKYO, April 22 (Reuters) - Japanese shares closed lower on Friday for the first time in four sessions, as they tracked Wall Street's overnight weakness following the U.S. central bank's views on interest rates, while Toshiba soared after it opened doors for a buyout. Technology and growth stocks led the retreat.
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3591.0
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2022-04-22 00:00:00 UTC
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Interesting AAL Put And Call Options For June 2024
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-june-2024
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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 become available today, for the June 2024 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 791 days until expiration the newly available 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 June 2024 contracts and identified one put and one call contract of particular interest.
The put contract at the $20.00 strike price has a current bid of $4.80. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $20.00, but will also collect the premium, putting the cost basis of the shares at $15.20 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $20.43/share today.
Because the $20.00 strike represents an approximate 2% 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 24.00% return on the cash commitment, or 11.07% 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 $20.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $22.00 strike price has a current bid of $4.90. If an investor was to purchase shares of AAL stock at the current price level of $20.43/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $22.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 31.67% if the stock gets called away at the June 2024 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 $22.00 strike highlighted in red:
Considering the fact that the $22.00 strike represents an approximate 8% 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 23.98% boost of extra return to the investor, or 11.07% 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 $20.43) to be 49%. 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 $22.00 strike highlighted in red: Considering the fact that the $22.00 strike represents an approximate 8% 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 June 2024 expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $22.00 strike highlighted in red: Considering the fact that the $22.00 strike represents an approximate 8% 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 June 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 2024 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 $22.00 strike highlighted in red: Considering the fact that the $22.00 strike represents an approximate 8% 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 June 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 2024 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 June 2024 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 $22.00 strike highlighted in red: Considering the fact that the $22.00 strike represents an approximate 8% 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 June 2024 expiration.
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3592.0
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2022-04-22 00:00:00 UTC
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Global miners must overcome labour shortages, inflation pain to meet targets
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AAL
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https://www.nasdaq.com/articles/global-miners-must-overcome-labour-shortages-inflation-pain-to-meet-targets
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nan
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nan
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By Shashwat Awasthi and Clara Denina
April 22 (Reuters) - Global mining companies must overcome COVID-related labour shortages and soaring production costs if they are to meet annual production targets, analysts said after downbeat quarterly reports.
London-listed Anglo American AAL.L and Antofagasta ANTO.L are among those to have either lowered annual production targets or increased expected capital expenditure, laying part of the blame on the broad inflationary pressure coming from rocketing diesel prices.
As a result, analysts expect earnings to be driven lower this year and next.
RBC Capital Markets, for example, expects Anglo's earnings before interest, taxes, depreciation, and amortisation (EBITDA) to fall by a fifth in 2022 and 12% in 2023.
The world's largest miners BHP Group BHP.AX and Rio Tinto RIO.L, RIO.AX also fell short of estimates for their January to March iron ore output and warned on future production of the steel-making commodity.
The common denominator was pandemic-led border controls in Western Australia state for much of the quarter that led to a dearth of mine workers and train drivers, before COVID cases surged when the curbs were lifted.
Major iron ore producers sell mostly to the world's biggest steelmaker and consumer China, but the country will continue to reduce its crude steel output this year to curb pollution, after cutting around 30 million tonnes of production in 2021.
China's fresh COVID-19 lockdowns, an expected slowdown in global economic growth and the impact of Russia's war in Ukraine are also potent threats, analysts said.
"Lower steel production could lead to inventories rising into seasonally stronger supply, which could pressure iron ore prices," RBC said in a note.
For copper, used to make a wide range of products from wires and pipes to solar panels, wind turbines and electric vehicles, a period of slower global growth would also be a setback but is increasingly likely, analysts at Jefferies said.
Copper miner Freeport McMoRan FCX.N on Thursday cut its 2022/23 annual sales forecast despite a production jump in the first quarter.
The world's largest listed miners posted record profits in 2021, buoyed by rocketing prices for everything from copper and iron ore to coal, which allowed them to shower shareholders with cash.
A repeat this year seems unlikely as lower demand threatens to collide with higher inflation, subduing market prices just as costs per unit of production increase.
Anglo-Australian Rio Tinto conceded that it needed to improve its operational performance after a "challenging" quarter that saw shipments from the resource-rich Pilbara region dwindle to a three-year low.
"Rio has a long way to go to regain its mantle as one of the best global mining operators and industry steward," said Peter O'Connor, a senior analyst at Shaw and Partners.
Rio Tinto quarterly iron ore shipmentshttps://tmsnrt.rs/3K3uP0R
BHP quarterly WA iron ore productionhttps://tmsnrt.rs/3L6O3DY
(Editing by Kirsten Donovan)
((Shashwat.Awasthi@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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London-listed Anglo American AAL.L and Antofagasta ANTO.L are among those to have either lowered annual production targets or increased expected capital expenditure, laying part of the blame on the broad inflationary pressure coming from rocketing diesel prices. Major iron ore producers sell mostly to the world's biggest steelmaker and consumer China, but the country will continue to reduce its crude steel output this year to curb pollution, after cutting around 30 million tonnes of production in 2021. For copper, used to make a wide range of products from wires and pipes to solar panels, wind turbines and electric vehicles, a period of slower global growth would also be a setback but is increasingly likely, analysts at Jefferies said.
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London-listed Anglo American AAL.L and Antofagasta ANTO.L are among those to have either lowered annual production targets or increased expected capital expenditure, laying part of the blame on the broad inflationary pressure coming from rocketing diesel prices. "Lower steel production could lead to inventories rising into seasonally stronger supply, which could pressure iron ore prices," RBC said in a note. Rio Tinto quarterly iron ore shipmentshttps://tmsnrt.rs/3K3uP0R BHP quarterly WA iron ore productionhttps://tmsnrt.rs/3L6O3DY (Editing by Kirsten Donovan) ((Shashwat.Awasthi@tr.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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London-listed Anglo American AAL.L and Antofagasta ANTO.L are among those to have either lowered annual production targets or increased expected capital expenditure, laying part of the blame on the broad inflationary pressure coming from rocketing diesel prices. By Shashwat Awasthi and Clara Denina April 22 (Reuters) - Global mining companies must overcome COVID-related labour shortages and soaring production costs if they are to meet annual production targets, analysts said after downbeat quarterly reports. Rio Tinto quarterly iron ore shipmentshttps://tmsnrt.rs/3K3uP0R BHP quarterly WA iron ore productionhttps://tmsnrt.rs/3L6O3DY (Editing by Kirsten Donovan) ((Shashwat.Awasthi@tr.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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London-listed Anglo American AAL.L and Antofagasta ANTO.L are among those to have either lowered annual production targets or increased expected capital expenditure, laying part of the blame on the broad inflationary pressure coming from rocketing diesel prices. As a result, analysts expect earnings to be driven lower this year and next. The world's largest miners BHP Group BHP.AX and Rio Tinto RIO.L, RIO.AX also fell short of estimates for their January to March iron ore output and warned on future production of the steel-making commodity.
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3593.0
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2022-04-21 00:00:00 UTC
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Wall St ends down as Powell plops 50 bps rate hike on table
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AAL
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https://www.nasdaq.com/articles/wall-st-ends-down-as-powell-plops-50-bps-rate-hike-on-table
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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
Fed's Powell says 50 bps rate hike 'on the table'
United Airlines, American Airlines jump on earnings outlook
Tesla rises after first-quarter results top estimates
Markets give up early-day gains to end lower
Indexes down: Dow 1.05%, S&P 1.48%, Nasdaq 2.07%
Adds closing prices, Alcoa
By David French
April 21 (Reuters) - Wall Street's ended lower on Thursday, with the Nasdaq dropping more than 2%, as investors reacted to Federal Reserve officials including Chair Jerome Powell offering further signposting of aggressive interest rate hikes this year.
A half-point interest rate increase will be "on the table" when the U.S. central bank meets on May 3-4 to approve the next in what is expected to be a series of rate increases this year, Powell said.
With inflation running roughly three times the Fed's 2% target, "it is appropriate to be moving a little more quickly," Powell added in a discussion of the global economy at the meetings of the International Monetary Fund.
"The market is pricing in, at least, 50 basis points in May and June," said George Catrambone, head of trading at DWS Group.
"Powell, and many other Fed speakers, have been saying they want to get to control as quickly as possible, and that is saying to the market that they are going to go aggressively."
Earlier on Thursday, San Francisco Federal Reserve President Mary Daly said she supports raising the U.S. central bank's target for overnight borrowing costs to 2.5% by the end of this year, but whether or how much further it will need to rise will depend on what happens with inflation and labor markets.
The remarks by Fed officials hijacked initial momentum which the markets received from positive earnings. All three major indexes opened higher, boosted by strong results from heavyweight Tesla TSLA.O and airline operators.
However, gains were eroded through the morning session and the S&P 500 and Nasdaq had already reversed course by the time Powell spoke.
The Dow Jones Industrial Average .DJI fell 368.03 points, or 1.05%, to 34,792.76, the S&P 500 .SPX lost 65.79 points, or 1.48%, to 4,393.66 and the Nasdaq Composite .IXIC dropped 278.41 points, or 2.07%, to 13,174.65.
Bond yields also breached fresh multi-year peaks. Yields on the two-year U.S. Treasury, the most sensitive to interest changes, hit their highest in three years before coming off slightly. US/
High-growth stocks, including those of Alphabet Inc GOOGL.O and Amazon.com Inc AMZN.O, fell as investors fretted about how the higher rate environment would impact their future growth potential. Meta Platforms Inc FB.O declined 6.2%, taking its losses in the last two days to 13.5%.
Netflix Inc NFLX.O slumped 3.5%, taking its market capitalization below the $100 billion mark for the first time since January 2018. It was the second day of declines for the streaming giant after its quarterly earnings revealed a first drop in subscriber numbers in a decade, with further falls likely.
The forecast prompted William Ackman to liquidate a $1.1 billion bet on Netflix, with the billionaire investor writing the firm's future was too uncertain to hold onto his position.
The 1.7% fall in the broader technology index .SPLRCT was one of the worst among the sectors, with all 11 major industries ending lower. Energy .SPNY was hit the hardest, despite crude prices gaining. O/R
Alcoa Corp AA.Nwas another to slide after posting results. The aluminum producer tumbled 16.9%, its biggest fall since March 2020, as the Russia-Ukraine conflict impacted its business.
There were some bright spots though. Tesla, the world's most valuable automaker, rose 3.2% after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs.
Airline stocks also maintained their recent momentum. United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.Oclimbed 9.3% and 3.8%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand.
The volume on U.S. exchanges was 12.27 billion shares, compared with the 11.65 billion average for the full session over the last 20 trading days.
The S&P 500 posted 78 new 52-week highs and 16 new lows; the Nasdaq Composite recorded 73 new highs and 367 new lows.
(Reporting by Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar in Bengaluru and David French in New York; Editing by Marguerita Choy)
((David.French@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.Oclimbed 9.3% and 3.8%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed's Powell says 50 bps rate hike 'on the table' United Airlines, American Airlines jump on earnings outlook Tesla rises after first-quarter results top estimates Markets give up early-day gains to end lower Indexes down: Dow 1.05%, S&P 1.48%, Nasdaq 2.07% Adds closing prices, Alcoa By David French April 21 (Reuters) - Wall Street's ended lower on Thursday, with the Nasdaq dropping more than 2%, as investors reacted to Federal Reserve officials including Chair Jerome Powell offering further signposting of aggressive interest rate hikes this year. Earlier on Thursday, San Francisco Federal Reserve President Mary Daly said she supports raising the U.S. central bank's target for overnight borrowing costs to 2.5% by the end of this year, but whether or how much further it will need to rise will depend on what happens with inflation and labor markets.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.Oclimbed 9.3% and 3.8%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed's Powell says 50 bps rate hike 'on the table' United Airlines, American Airlines jump on earnings outlook Tesla rises after first-quarter results top estimates Markets give up early-day gains to end lower Indexes down: Dow 1.05%, S&P 1.48%, Nasdaq 2.07% Adds closing prices, Alcoa By David French April 21 (Reuters) - Wall Street's ended lower on Thursday, with the Nasdaq dropping more than 2%, as investors reacted to Federal Reserve officials including Chair Jerome Powell offering further signposting of aggressive interest rate hikes this year. Tesla, the world's most valuable automaker, rose 3.2% after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.Oclimbed 9.3% and 3.8%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed's Powell says 50 bps rate hike 'on the table' United Airlines, American Airlines jump on earnings outlook Tesla rises after first-quarter results top estimates Markets give up early-day gains to end lower Indexes down: Dow 1.05%, S&P 1.48%, Nasdaq 2.07% Adds closing prices, Alcoa By David French April 21 (Reuters) - Wall Street's ended lower on Thursday, with the Nasdaq dropping more than 2%, as investors reacted to Federal Reserve officials including Chair Jerome Powell offering further signposting of aggressive interest rate hikes this year. A half-point interest rate increase will be "on the table" when the U.S. central bank meets on May 3-4 to approve the next in what is expected to be a series of rate increases this year, Powell said.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.Oclimbed 9.3% and 3.8%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed's Powell says 50 bps rate hike 'on the table' United Airlines, American Airlines jump on earnings outlook Tesla rises after first-quarter results top estimates Markets give up early-day gains to end lower Indexes down: Dow 1.05%, S&P 1.48%, Nasdaq 2.07% Adds closing prices, Alcoa By David French April 21 (Reuters) - Wall Street's ended lower on Thursday, with the Nasdaq dropping more than 2%, as investors reacted to Federal Reserve officials including Chair Jerome Powell offering further signposting of aggressive interest rate hikes this year. Yields on the two-year U.S. Treasury, the most sensitive to interest changes, hit their highest in three years before coming off slightly.
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3594.0
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2022-04-21 00:00:00 UTC
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US STOCKS-Wall St slides after Powell backs aggressive rate hike views
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-after-powell-backs-aggressive-rate-hike-views
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nan
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nan
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By Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar
April 21 (Reuters) - Wall Street's three main indexes fell on Thursday after Federal Reserve Chair Jerome Powell said a 50-basis point interest rate hike was "on the table", cementing expectations of aggressive policy tightening by the U.S. central bank.
With inflation running roughly three times the Fed's 2% target, "it is appropriate to be moving a little more quickly," Powell said in a discussion of the global economy at the meetings of the International Monetary Fund. "50 basis points will be on the table for the May meeting."
High-growth stocks including those of Alphabet Inc GOOGL.O and Amazon.com Inc AMZN.O fell close to 2% each after yields on two-year bonds, the most sensitive to interest changes, hit their highest in three years. US/
"The market is starting to reprice risk and the way you're seeing that is obviously higher value stocks are getting hit the hardest," said Dennis Dick, a professional stock trader at Bright Trading LLC in Las Vegas.
All the three major indexes opened higher, boosted by strong results from heavyweight Tesla TSLA.O and airline operators, but gave up gains by afternoon trading.
At 1:55 p.m. ET, the Dow Jones Industrial Average .DJI was down 54.61 points, or 0.16%, at 35,106.18, the S&P 500 .SPX was down 24.74 points, or 0.55%, at 4,434.71, and the Nasdaq Composite .IXIC was down 127.42 points, or 0.95%, at 13,325.65.
Tesla, the world's most valuable automaker, rose 5.8% after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs.
United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed 11.5% and 5.6%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand.
Overall, analysts expect S&P 500 earnings growth of 7.3% in the first quarter, compared with the 32.1% rise in the fourth quarter, according to Refinitiv data.
Declining issues outnumbered advancers for a 2.36-to-1 ratio on the NYSE and a 2.43-to-1 ratio on the Nasdaq.
The S&P index recorded 76 new 52-week highs and 12 new lows, while the Nasdaq recorded 66 new highs and 283 new lows.
(Reporting by Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur)
((BansariMayur.Kamdar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed 11.5% and 5.6%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar April 21 (Reuters) - Wall Street's three main indexes fell on Thursday after Federal Reserve Chair Jerome Powell said a 50-basis point interest rate hike was "on the table", cementing expectations of aggressive policy tightening by the U.S. central bank. With inflation running roughly three times the Fed's 2% target, "it is appropriate to be moving a little more quickly," Powell said in a discussion of the global economy at the meetings of the International Monetary Fund.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed 11.5% and 5.6%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar April 21 (Reuters) - Wall Street's three main indexes fell on Thursday after Federal Reserve Chair Jerome Powell said a 50-basis point interest rate hike was "on the table", cementing expectations of aggressive policy tightening by the U.S. central bank. The S&P index recorded 76 new 52-week highs and 12 new lows, while the Nasdaq recorded 66 new highs and 283 new lows.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed 11.5% and 5.6%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar April 21 (Reuters) - Wall Street's three main indexes fell on Thursday after Federal Reserve Chair Jerome Powell said a 50-basis point interest rate hike was "on the table", cementing expectations of aggressive policy tightening by the U.S. central bank. ET, the Dow Jones Industrial Average .DJI was down 54.61 points, or 0.16%, at 35,106.18, the S&P 500 .SPX was down 24.74 points, or 0.55%, at 4,434.71, and the Nasdaq Composite .IXIC was down 127.42 points, or 0.95%, at 13,325.65.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed 11.5% and 5.6%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar April 21 (Reuters) - Wall Street's three main indexes fell on Thursday after Federal Reserve Chair Jerome Powell said a 50-basis point interest rate hike was "on the table", cementing expectations of aggressive policy tightening by the U.S. central bank. With inflation running roughly three times the Fed's 2% target, "it is appropriate to be moving a little more quickly," Powell said in a discussion of the global economy at the meetings of the International Monetary Fund.
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3595.0
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2022-04-21 00:00:00 UTC
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Jobless Claims, Philly Fed Down; AAL, NEE, FCX Report Q1
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https://www.nasdaq.com/articles/jobless-claims-philly-fed-down-aal-nee-fcx-report-q1
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Thursday, April 21, 2022
Pre-market futures are up again this morning, setting what might be — still too early to know for sure — the first week in the green on any major index for at least a couple weeks. Even after key economic data hit the tape an hour before the opening bell, the Dow is +235 points, the Nasdaq +150 and the S&P 500 +35 points.
Being Thursday morning, new employment data is out in the form of Weekly Initial Jobless Claims, which remain down at 50+ year lows, at 184K last week. This is down a tick from the slightly upwardly revised 186K the previous week. Consensus was for an even better print, though it’s hard to see how one calls late-1960s jobless claims levels a “disappointment.”
Continuing Claims, reported a week in arrears from new claims, did touch a new post-Covid low this morning: 1.417 million, down 58K from the previous week’s tally, the lowest we’ve seen since 1970. Most of Generation X wasn’t even born the last time long-term unemployment claims stayed this low. It’s a true testament to the robust — and tight — workforce we’ve also seen register in other economic data.
The Philly Fed for April came in a little underwhelming this morning: 17.6 versus expectations around the trailing year-to-date average 21. We’ve seen two lower monthly reads in the past half-year, but we’re clearly off the trailing 12-month 24.7-point pace. Also, future indicators for general activity have dropped to their lowest levels since December 2008 — the heart of the Great Recession. We hope to see things pick up in Philadelphia manufacturing.
American Airlines AAL outperformed expectations in it Q1 report this morning, with negative earnings of -$2.32 per share less severe than the -$2.43 expected, and far better than the -$4.32 per share hole the airline saw itself in during the year-ago quarter. Revenues beat expectations by 1% to $8.9 billion in the quarter. Shares are up +10.8% on the news in the pre-market, adding onto the +8.5% gains the stock has made, year to date. For more on AAL’s earnings, click here.
North America’s largest electric utility (by market cap), NextEra Energy NEE, was mixed in its Q1 report this morning: earnings of 74 cents per share beat the 69 cents in the Zacks consensus and the 67 cents per share reported a year ago. But quarterly revenues were way off, $2.89 billion. Shares are flat-to-down on the earnings report, and are already down -12.7% year to date.
Copper-producing major FreeportMcMoRan FCX put up a solid earnings beat this morning in its Q1 earnings release: $1.07 per share easily toppled the 88 cents per share expected, and more than doubled the year-ago quarter’s earnings of 51 cents per share. Copper prices rose 7% in the quarter, according to the company. Shares are down -2% on the news, but FCX has already gained +20.3% so far this year.
Questions or comments about this article and/or its author? Click here>>
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
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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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American Airlines AAL outperformed expectations in it Q1 report this morning, with negative earnings of -$2.32 per share less severe than the -$2.43 expected, and far better than the -$4.32 per share hole the airline saw itself in during the year-ago quarter. For more on AAL’s earnings, click here. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines AAL outperformed expectations in it Q1 report this morning, with negative earnings of -$2.32 per share less severe than the -$2.43 expected, and far better than the -$4.32 per share hole the airline saw itself in during the year-ago quarter. For more on AAL’s earnings, click here. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines AAL outperformed expectations in it Q1 report this morning, with negative earnings of -$2.32 per share less severe than the -$2.43 expected, and far better than the -$4.32 per share hole the airline saw itself in during the year-ago quarter. For more on AAL’s earnings, click here. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines AAL outperformed expectations in it Q1 report this morning, with negative earnings of -$2.32 per share less severe than the -$2.43 expected, and far better than the -$4.32 per share hole the airline saw itself in during the year-ago quarter. For more on AAL’s earnings, click here. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3596.0
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2022-04-21 00:00:00 UTC
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Japanese shares track Wall Street weakness, tech shares drop
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https://www.nasdaq.com/articles/japanese-shares-track-wall-street-weakness-tech-shares-drop
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By 0219 GMT, the Nikkei share average .N225 had fallen 1.9% to 27,025.18 and the broader Topix .TOPX was down 1.33% at 1,902.40 after three straight sessions of gains, with technology and growth stocks leading the retreat.
For the week, the Nikkei was down 0.2%, while the Topix was up 0.32%.
Wall Street ended lower overnight, with the Nasdaq dropping more than 2%, as investors reacted to Fed officials including Powell dropping hints of a half-point interest rate increase. .N
"The Japanese market reacted too much. Investors should have already factored in rising U.S. interest rates," said Jun Morita, general manager of the research department at Chibagin Asset Management.
"On the other hand, it is hard to make positive bids before the corporate earnings season kicks off."
Chip-making equipment maker Tokyo Electron 8035.T led declines on the Nikkei, falling 3.25%. Uniqlo clothing shop operator Fast Retailing 9983.T lost 2.7% and technology investor SoftBank Group 9984.T dropped 3.26%.
All but two sectors among the Tokyo Stock Exchange's 33 industry sub-indexes fell.
The insurance sector .IINSU.T gained 0.6% as U.S. Treasury yields rose. US/
Airlines .IAIRL.T gained 0.54% after United Airlines Holdings UAL.O and American Airlines Group AAL.O predicted a return to profit in the current quarter due to booming travel demand.
Toshiba 6502.T jumped 4.28% after the embattled Japanese conglomerate said it would solicit deal offers, including on a potential buyout.
Shionogi & Co 4507.T gained 1.1% after a report that the drugmaker held talks with the U.S. government about the sale of it COVID-19 experimental pill.
(Reporting by Junko Fujita; Editing by Subhranshu Sahu)
((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters Messaging:junko.fujita.reuters.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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US/ Airlines .IAIRL.T gained 0.54% after United Airlines Holdings UAL.O and American Airlines Group AAL.O predicted a return to profit in the current quarter due to booming travel demand. By 0219 GMT, the Nikkei share average .N225 had fallen 1.9% to 27,025.18 and the broader Topix .TOPX was down 1.33% at 1,902.40 after three straight sessions of gains, with technology and growth stocks leading the retreat. Uniqlo clothing shop operator Fast Retailing 9983.T lost 2.7% and technology investor SoftBank Group 9984.T dropped 3.26%.
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US/ Airlines .IAIRL.T gained 0.54% after United Airlines Holdings UAL.O and American Airlines Group AAL.O predicted a return to profit in the current quarter due to booming travel demand. Wall Street ended lower overnight, with the Nasdaq dropping more than 2%, as investors reacted to Fed officials including Powell dropping hints of a half-point interest rate increase. Uniqlo clothing shop operator Fast Retailing 9983.T lost 2.7% and technology investor SoftBank Group 9984.T dropped 3.26%.
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US/ Airlines .IAIRL.T gained 0.54% after United Airlines Holdings UAL.O and American Airlines Group AAL.O predicted a return to profit in the current quarter due to booming travel demand. By 0219 GMT, the Nikkei share average .N225 had fallen 1.9% to 27,025.18 and the broader Topix .TOPX was down 1.33% at 1,902.40 after three straight sessions of gains, with technology and growth stocks leading the retreat. Wall Street ended lower overnight, with the Nasdaq dropping more than 2%, as investors reacted to Fed officials including Powell dropping hints of a half-point interest rate increase.
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US/ Airlines .IAIRL.T gained 0.54% after United Airlines Holdings UAL.O and American Airlines Group AAL.O predicted a return to profit in the current quarter due to booming travel demand. For the week, the Nikkei was down 0.2%, while the Topix was up 0.32%. Wall Street ended lower overnight, with the Nasdaq dropping more than 2%, as investors reacted to Fed officials including Powell dropping hints of a half-point interest rate increase.
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3597.0
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2022-04-21 00:00:00 UTC
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American Airlines Group (AAL) Q1 2022 Earnings Call Transcript
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-q1-2022-earnings-call-transcript
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Image source: The Motley Fool.
American Airlines Group (NASDAQ: AAL)
Q1 2022 Earnings Call
Apr 21, 2022, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the American Airlines Group first quarter 2022earnings conference call Today's call is being recorded. [Operator instructions] And now I'd like to turn the conference over to your moderator, head of investor relations, Mr. Scott Long.
Scott Long -- Head of Investor Relations
Thank you, Katherine. Good morning, everyone, and welcome to the American Airlines Group first quarter 2022earnings conference call On the call this morning, we have our CEO, Robert Isom, and our CFO, Derek Kerr. Also, on the call for the Q&A session are David Seymour, Vasu Raja and a number of other senior executives.
Robert will start the call this morning with an overview of the first quarter and our priorities for the year. Derek will follow with the details on the quarter and our operating plans and outlook going forward. After Derek's comments, we'll open the call for analyst questions, followed by questions from the media. [Operator instructions].
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Now, before we begin today, I must state that today's call contains forward-looking statements, including statements concerning future revenues, costs, forecast of capacity and fleet plans. These statements represent our predictions and expectations of future events, but numerous risks and uncertainties could cause actual results to differ from those projected. Information about some of these risks and uncertainties can be found in our earnings press release that was issued this morning, as well as our Form 10-Q for the quarter ended March 31, 2022. In addition, we'll be discussing several non-GAAP financial measures this morning, which exclude the impact of unusual items.
A reconciliation of those numbers to the GAAP financial measures is included in the earnings press release, which can be found in the Investor Relations section of our website. A webcast of this call will also be archived on our website. The information we are giving you on the call this morning is as of today's date, and we undertake no obligation to update the information subsequently. Thank you for your interest and for joining this morning.
And with that, I'll turn the call over to our CEO, Robert Isom.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Thanks, Scott, and good morning, everyone. Thank you for joining us today. We're going to keep our comments brief this morning. I'm a strong believer that the results speak louder than words, and I'm confident in the results the American Airlines team will produce.
Now, let's start by thanking our team. Day in and day out, they're on the front line, taking care of our customers, no matter what comes our way. And we've certainly seen a lot come our way over the past two years. The American Airlines team has worked hard to position us well for the recovery, by simplifying our fleet, modernizing our facilities, fine-tuning our network, developing new partnerships, rolling out new tools for our customers and team, and hiring thousands of new team members, all that while flying the largest airline in the world.
I'm excited to see their work pay off for all of our constituents, our customers, certainly, the communities we serve, our team, and notably, our shareholders. It's an honor for me to have the trust of our team and to succeed Doug Parker as CEO and to begin in this position as the industry rebrand and our company returns to profitability. I'm extremely grateful for the opportunity. It's a fantastic time for the industry and for American Airlines in particular.
For the year ahead, we are resolute in achieving two key goals above all else, running a reliable operation and returning to profitability. Our team is up to the challenge, and we've already seen a lot of great progress. So let's talk about financials first. This morning, America reported a first quarter GAAP net loss of $1.6 billion.
Excluding net special items, we reported a net loss of $1.5 billion for the quarter. Despite the quarterly loss in a difficult January and February due to the effects of Omicron, March results were markedly different. In March, we saw what's possible, with surging demand brought on by reduced infection rates, relaxed restrictions and tremendous pent-up demand for people to travel. Despite a sizable increase in the cost of fuel during March, American achieved our first monthly net profit, excluding special items, since July of 2021.
Demand is as strong as we've ever seen it. American produced revenues of $8.9 billion in the first quarter, including industry-leading passenger revenues of $7.8 billion. Domestic leisure travel continued to lead the way, far surpassing 2019 levels of traffic and revenue in the month of March. In addition, we saw strong quarter-over-quarter improvement in corporate and government travel with revenue for this segment as a percentage of 2019 increasing 27 percentage points from January to March.
System business demand is now about 80% recovered, with small to medium business revenue approaching a full recovery and corporate revenue now around 50% recovered. Corporate bookings are the highest that they've been since the onset of the pandemic, and we expect that to continue as more companies reopen their offices. We anticipate overall business revenue to be around 90% recovered in the second quarter. And finally, demand for international travel also picked up considerably during the quarter as travel restrictions were lifted in certain parts of the world.
Long-haul international revenue was around 50% recovered in the first quarter and around 60% recovered in March. So there's still a lot of revenue upside as business and international travel continue to return. The American team has done an incredible job of setting up the airlines to take advantage of the rebound, pointing our network to where our customers want to fly, establishing partnerships in more challenging areas and making sure efficiency is top of mind. As a result, we're very optimistic about the continued recovery and expect to be profitable in the second quarter based on current demand trends and fuel price forecast.
Turning to reliability. American ended 2021 with our strongest operating performance in the company's history. We're committed to maintaining that momentum in the first quarter, and we did. Despite two difficult winter storms in Dallas/Fort Worth, the team delivered a solid operating performance in the first quarter, leading the industry in on-time departures and finishing a close second at on-time arrivals.
And they did so while flying a considerably larger schedule than our next largest competitor. More importantly, for the month of March, in the mid-peak spring break demand and high load factors, we delivered our best-ever combined March completion factor. Our operation in DFW and Charlotte, our two largest hubs, met or exceeded our expectations and delivered their best on-time performance and completion factor in years. As a result of our team's hard work, our likelihood to recommend scores continue to track in line with plan and are near the top of our post-merger performance.
Running a reliable operation this summer will be critical to the continued recovery, and we have taken numerous steps to ensure we are well prepared to deliver for our customers. Our summer planning began last year as demand returned, and we haven't slowed down. American has 12,000 more team members in place to support the operation this summer than in the summer of 2021. We've already welcomed more than 600 new pilots this year, exceeding our goal.
And we will continue to aggressively recruit, hire and train across all departments to develop the best pipeline of talent in the industry. We're ready for the summer, and we have sized the airline for the resources we have available. Again, we sized the airline for the resources that we have available. We've also made targeted investments in people, technology and resources that are yielding promising results for our team members and customers.
So before I hand it over to Derek, I want to say that I'm really excited about the future of our industry and the future of American Airlines. There's still a lot of revenue upside going forward, given industry revenues are still off from their historical relationship to GDP, barriers to demand are falling and business and international trends are promising. There are also certain industry constraints on growth in the near term, notably related to pilot and aircraft supply. And at American, we have completed a $1.3 billion cost reduction program.
And our unit cost performance will improve throughout the year as utilization approaches historic levels. No airline is better positioned to operate in this environment than American Airlines because of our fleet, our network and everything our team has accomplished over the past two years. And with that, I'll turn it over to Derek.
Derek Kerr -- Vice Chairman, Chief Financial Officer
Thanks, Robert, and good morning, everyone. Before I review the results, I want to acknowledge Doug for his more than 20 years as an airline CEO. Doug's leadership revolutionized the industry and laid the foundation for American success going forward. I also want to thank the American Airlines team.
Their hard work and commitment to our customers and each other is truly extraordinary. This morning, we reported a first quarter GAAP net loss of $1.6 billion, or a loss of $2.52 per share. Excluding net special items, we reported a net loss of $1.5 billion or a loss of $2.32 per share. Revenue in the first quarter outperformed the initial expectations we outlined on our last call, despite flying less capacity than planned due to winter weather events that affected our largest hubs.
Our first quarter revenue recovered to 84% compared to the same period in 2019 versus our original guide of 78% to 80% recovery. Demand recovery from the Omicron variant was swift. And while leisure demand remains very strong, as more companies return to their offices, business demand is growing quickly. On the cost side, in addition to the efficiencies we've spoken about previously, we remain focused on keeping our controllable costs down, ensuring we are a more efficient airline as we return to normalized levels of capacity and utilization.
In fact, in the face of increased fuel prices, we were profitable for the month of March, excluding net special items, due to our strong revenue performance and cost efficiencies. Our fleet remains the youngest and most fuel-efficient among the U.S. global network carriers. This month, we completed our narrow-body fleet harmonization project.
It covers more than 500 aircraft and will ensure a consistent product and better experience for customers, along with the improved revenue generation and unit cost production associated with the new seating configurations. In the first quarter, we took delivery of nine Airbus 321neos and reactivated seven previously stored Boeing 737-800s. We also inducted eight dual-class regional aircraft and parked three 50-seat Embraer 145s. As previously disclosed, we made several updates to our fleet order book and the timing of future deliveries, allowing us to better meet the demand strength in domestic and short-haul international markets.
We previously announced our plans to exercise purchase options on 737 MAX-8s. 15 of these options are scheduled for delivery in 2023 and 15 in 2024. Additionally, with the continued uncertainty associated with our 787 deliveries, we are now planning for the delivery of only seven 788s in 2022, all after our summer schedule, with the remaining six 788 aircraft being delivered in 2023. The four 789 aircraft previously planned in late 2023 are now planned to be delivered in 2024.
With these changes, our expected total aircraft capex is $1.8 billion in 2022 and $2.2 billion in 2023. We ended the first quarter with $15.5 billion of total available liquidity, significantly higher than our initial forecast due to ATL build of $2.3 billion in the quarter. We generated operating cash flow of $1.3 billion and free cash flow of more than $350 million in the first quarter. Deleveraging our balance sheet remains a top priority, and we are committed to significant debt reduction in the years ahead.
Even in this volatile environment, we remain on track with our target of reducing overall debt levels by $15 billion by the end of 2025. During the quarter, we made $344 million in scheduled debt payments and completed $317 million in open market repurchases of our $750 million unsecured senior notes maturing in June. To date, we have reduced our overall debt levels by $4.1 billion from our peak levels in the second quarter of 2021. We expect to make $1 billion of scheduled debt payments in the second quarter, which includes the remaining outstanding balance of the unsecured senior notes.
Lastly, with cost-efficient financing secured for all aircraft deliveries through the third quarter of this year, we are now beginning to evaluate financing options for the fourth quarter and first half of 2023. As we look at the second quarter, we expect to be profitable despite the expectation of continued elevated fuel prices. Pretax margins are expected to be between 3% and 5% for the quarter based on the current demand trends and our fuel price forecast. Based on current demand assumptions, we expect total revenue to be 6% to 8% higher versus the second quarter of 2019 on 6% to 8% lower capacity.
That would be the first time we have produced total revenue greater than 2019 since the start of the pandemic. In fact, if we hit the midpoint of this revenue guide, the results would be the highest quarterly revenue in the company's history. On this revenue strength, we expect total revenue per available seat mile to be 14% to 16% higher in the second quarter versus the same period of 2019. We expect our second quarter CASM, excluding fuel and net special items, to be up between 8% and 10%.
Our current forecast for the second quarter, which we pegged on Tuesday, assumes fuel between $3.59 and $3.64 per gallon, an increase of more than 60% versus the price of fuel in the second quarter of 2019. In the near term, the demand environment is strong, but margins are lower than they otherwise would have been given the recent run-up in fuel. Longer term, this industry has proven that it has the ability to recapture increases in the cost of fuel and be profitable at elevated fuel prices. We believe this time is no different.
As for full year 2022 capacity, we now expect to be recovered to 92% to 94% of 2019 levels. The reduction in full year capacity from our prior guide is largely due to 788 delivery delays that I touched on earlier. This capacity guidance is, of course, subject to future demand environment and fuel prices. Consequently, with this lower level of capacity, we now expect our full year CASM, excluding fuel and net special items, to be up between 8% and 10% versus 2019.
In conclusion, with the actions we have taken and the commitment of our team, we remain very well positioned. We remain focused on running a reliable operation and returning to profitability, which we expect to happen in the second quarter. With that, we'll open up the line for analyst questions.
Questions & Answers:
Operator
Thank you. [Operator instructions] Our first question comes from Jamie Baker with J.P. Morgan. Your line is open.
Jamie Baker -- J.P. Morgan -- Analyst
Oh, hey. Good morning. I guess, you're starting in the order of the biggest second quarter miss. So great.
So, listen, we're all familiar --
Derek Kerr -- Vice Chairman, Chief Financial Officer
Not quite, but close, Jamie. Not quite, but close.
Jamie Baker -- J.P. Morgan -- Analyst
All right. Whew. So we're familiar with that relationship between airline revenue and GDP. You brought it up.
Doug had a good slide on -- in his deck last month. Have you looked at the relationship between leisure demand and GDP? And what that relationship might be telling us? I know we could try to back into this with some of the Form 41 data, but I don't really trust it. There's a reporting lag. It just doesn't tell me anything.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
So, hey, Jamie, thanks. I'm going to let Vasu answer that. But hey, don't feel bad. This is a long game.
We know you're going to get it right over the long term. Vasu?
Jamie Baker -- J.P. Morgan -- Analyst
Thanks for the endorsement.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes. Jamie, thanks for the question. And it's a very good one, one that we've actually spent a lot of time thinking about. And look what I'll say is you're right.
In aggregate, like historical relationship between airline demand and GDP, let's call it industry demand, at something around just under 1% of GDP, does largely seem to hold. And we're seeing that as things start to recover. We spent a lot of time on this question about what is the actual trip purpose and how does that change? And the reality is it's changing in a meaningful enough way where we no longer think it's spurious and start a trend. For example, historically, only about 20% to 25% of the trips in the airline were something that we call blended, where somebody was traveling for both business and leisure.
Now, for about five to six months, about 50% to 55% of the trips in the airline are blended. And as we look forward into the coming months, that continues to be the case. And that's playing out in a lot of different ways for us, which are both opportunities and a little bit unprecedented, right? We are seeing different sales days becoming big sales days, different travel days becoming big travel days. So the nature of what we call leisure demand and business demand is changing.
And the first thing is better understanding exactly how that is. But so far, it's been promising. Those blended trips that we have in the system are coming in at yields that are 75% to 85% of what were true business-only trips, but they're coming through lower cost of sales channels and off of negotiated discount. So the net yields of them are very often the best things in the system.
So this is an evolving thing and one that we'll keep coming back to you. But the relationship is indeed changing, as you say, even though in aggregate, a lot of the trends won't.
Jamie Baker -- J.P. Morgan -- Analyst
And just out of curiosity, how do you define or how do you tell that a trip is a blended trip? Is it somebody booking with a corporate discount and then bringing a family member on an adjacent PNR? Like how do you know that?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes. So over the years of viewing this thing, we actually come out in two ways. One, we have a lot of models that go and actually predict whether the behavior is business or leisure. And we survey customers to go and calibrate the model.
So over time, we are really good. So whatever we -- you hear us talk about business, we are talking about, for example, somebody who travels, one person on the itinerary, no checked bags, things like that, right? It's just a profile and we calibrate it against surveys of what the customer actually tells us. And so, one of the things that we found is that increasingly, those surveys are starting to change because people are saying they're flying both for business and leisure or it's one person in the itinerary, but they're leaving on Thursday, coming back on a Monday and going to Pensacola. So a lot of things are starting to change, and that's actually a pretty promising thing.
Jamie Baker -- J.P. Morgan -- Analyst
Yes. Fascinating. Thank you for that. And then, second, and maybe for Robert, as we think about the steps that you're taking to protect the operation, heading into the summer peak, is the zero still the metric that American tends to focus on? I think it was in the past.
The sense I got was that it wasn't hugely popular with the entirety of the airport staff. Just wondering if with your background, Robert, and having ascended to the top seat, is that still the metric that you have prioritized, let's say?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Jamie, I'm going to start with this, which is the outcome in on-time arrival we know is the biggest driver of customer satisfaction, as I've said before, it makes the food taste better. It seems more comfortable, service more friendly, all that. And the best way to ensure an on-time arrival is to make sure you depart on time. So there's no stepping away from it.
But I'll tell you, we have evolved over time. And we really do want to take into account making sure that the things that we do to get an aircraft out on time don't compromise other aspects of the operation. So creating congestion on the ramp, or if we do have inclement weather, at the end of the day, if we have flights that you may be able to get out on time, but you ought to hold for connecting passengers, we do so. And so, we could go into a lot more detail on that.
But the answer to it all is, for the bulk of the airline, get it started right. No aircraft out of service in the morning, on-time departure, a fast turn and stay that way throughout the day.
Jamie Baker -- J.P. Morgan -- Analyst
That's great. Thank you both. Appreciate it. Take care.
Thank you. Our next question comes from David Vernon with Bernstein. Your line is open.
David Vernon -- Sanford C. Bernstein -- Analyst
Hey. Thanks, guys. We're at the other end of the spectrum, I guess. Could you talk a little bit about what you have in the forecast for business travel recovery as we think about the summer months? What are you seeing in the booking trends? I'm just trying to get a sense for kind of what the mix is within the guidance that you're giving us.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Hi, David. This is Vasu. I can help with that. Robert's commented at the beginning, as we closed the quarter, system business revenues were about 80% recovered versus 2019.
As we look at Q2, we anticipate that number will be about 90% recovered versus 2019. We have a level of confidence in it because, indeed, we're seeing many of those bookings start to come in from my comments that Jamie just now. But also, the gap between 90 and 100 is really largely due to long-haul international demand and certain pockets of domestic demand, but we are continuing to see demand come in.
David Vernon -- Sanford C. Bernstein -- Analyst
OK. And then, maybe just as a quick follow-up. I remember having a conversation with Doug and Derek in LA, a couple of years ago now, around denied boarding, sort of involuntary denials, that kind of stuff. And you guys have been working on some technology to help you guys reaccommodate customers, work on this issue of not having enough seats on the plane overselling that kind of stuff.
Is there any early indication during this period of demand here that those efforts are paying off and the denied boardings are coming in a little bit in line with those expectations you set out a couple of years ago?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Hey, David, we're going to start with Maya Leibman and talk about some of the things we've done. And if there's some add-on to that, Vasu will do it.
Maya Leibman -- Executive Vice President, Chief Information Officer
Hey, David, this is Maya. Yes. Over the last several years, we've really improved our technology around essentially pre-removing customers. So either before they get to the airport several days before they fly if we know that flight is at the risk of overselling providing them an opportunity to bid or to either take compensation or even just move to a different flight that's probably a little bit better than the flight that they were previously scheduled on.
Or if it happens that there's a last-minute schedule change, a last-minute equipment change, so we have to deal with it at the airport, which isn't our goal. We're really trying to deal with it before they get to the airport. We have some pretty neat auction capabilities that allow the customer better opportunities to move around to other flights. And so, all of those things together have really helped improve our denied boarding statistics.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes. I'll only add to that is that throughout the pandemic, one of the hardest things to do -- to predict has been the show rate of the airline. Understandably as the pandemic wore on, we would have periods of time where everybody showed for a flight in periods of time where the show rate could be as low as 70% of what was booked. What we're encouraged by in large part because of a lot of the technologies that we've got not just in managing overbooking, but it's typically just forecasting show rate.
We are getting to a place where we are a lot better at going and predicting what the variability is. And with the technologies that we've got proactively moving customers off so that we don't have the same level of denied boarding expense that we had in times past. And indeed, we're able to generate more revenue through the overbooking flights.
David Vernon -- Sanford C. Bernstein -- Analyst
Excellent. Thanks a lot today for the added color, guys.
Operator
Thank you. And our next question comes from Savi Syth with Raymond James. Your line is open.
Savi Syth -- Raymond James -- Analyst
Hey, good morning. I was wondering, maybe, Vasu, could you provide a little bit of color on what you're seeing across the -- on the long-haul side across the different entities?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Sure, Savi. Yeah, thanks for the question. Look, we're really encouraged with how long-haul demand has come back, but it is indeed very different across the three long-haul entities of long-haul South America, Transatlantic and Transpacific. First, we are encouraged because indeed, we've seen bookings from maybe post-Omicron low point in January.
So what we're seeing in the last four to six weeks, it's improved by several factors. In South America, that's a factor of two to three times. In Transatlantic, it's something materially larger than that. And in Transpacific, it's grown quite a lot, too, but still, the bookings are pretty small and insignificant in the totality of all of our bookings.
But what we're really encouraged by is the manner in which demand is returning first in long-haul South America, where we just -- where we have so much capacity. Increasingly, we're seeing not just more customers simply sign on for flights, but we're filling premium cabins at a better and better rate. The same is true in Transatlantic, where so much of the airline that we brought back there is centered around our partner hubs, in Heathrow and Madrid. And we're encouraged because those are -- to make those flights go, they are very premium demand consumptive and we are seeing a lot of premium demand, even though we aren't seeing large corporate travel quite come back into international the way we've seen before.
And Transpacific, it's understandably challenged because as long as there are entry restrictions, demand remains pretty stubborn to come back. But -- like I said, we're encouraged that once those restrictions are lifted, the demand improves pretty meaningfully.
Savi Syth -- Raymond James -- Analyst
That's super helpful. And if I might ask, Derek, just a quick question on the fuel. Is your kind of fuel contracts based on kind of the forward curve and crack spreads? I think there's -- or like spot prices, I mean? I think there's a little bit of confusion on what we're seeing on spot, and this is not unique to American, but what's being reflected in fuel guidances.
Derek Kerr -- Vice Chairman, Chief Financial Officer
Yes. No, that's exactly -- we just pegged it two days ago. So at 100 -- it was 107. And then, we used the crack spread and where that was, and the crack spread had increased a little bit.
So the difference may be crack spread and then the dates that everybody takes the fuel pay, but we're straight off of the fuel curve and then it's dependent on where are you buying your fuel. Are you buying your fuel more in the Gulf Coast, L.A., New York. So there could be differences between each airline just where the brunt of the fuel comes from.
Savi Syth -- Raymond James -- Analyst
Makes sense. Thank you.
Operator
Thank you. Our next question comes from Helane Becker with Cowen. Your line is open.
Helane Becker -- Cowen and Company -- Analyst
Thanks very much, operator. Hi, everybody and thank you for the time. Just two questions. One is on minimum liquidity.
Derek, have you thought about where you want that to go, other than get -- I think you said, what, pay down $15 billion of debt by 2026? And then the other question is, I think, related to the pilot training pipeline. You talk about a shortage of crew members and limits to capacity growth, so how are you thinking about catching up?
Derek Kerr -- Vice Chairman, Chief Financial Officer
Yes. I can do both, and Robert can add to some of that. So as far as minimum liquidity, we're still in the same place as we were a couple of calls ago. We're at about $15.5 billion right now.
We are seeing this recovery. We'd like to see it actually be in the actuals. So I think this is a forward guide, which we think is where we're going to get and be profitable for the quarter. If we maintain this level, what we have said is we would take a step down to somewhere in the $10 billion to $12 billion range.
And hopefully, that happens sometime this year, which can accelerate the debt pay down. And any further than that, we just haven't had the discussions through the board and through the committees. We ran the company at $7 billion of not minimum liquidity, which I defined -- that was kind of our targeted cash level. Minimum liquidity is actually much lower than that.
But our targeted cash level was at $7 billion. And so, right now, we're holding out of the cash. And when we see the recovery, and it's holding up and the cash is holding up, we will use that cash to pay down debt. And I think we'll take it down to somewhere in the $10 billion to $12 billion range as we look forward.
On the pilot training pipeline, as Robert said, we've hired 600 pilots at the mainline. So it really is -- we have the pilots. I think the industry is -- it's about trying to hire 2,000 pilots this year versus the most we've ever hired in the past is 1,000. So we have the simulators coming in.
We have the trainers coming in. So what it is, is trying to get everybody through the pipeline. And I think we will be fully utilized in how all of our aircraft flying by the end of the year. The other side of it is the regional carriers, which we're working on, is that that hiring is going well also.
So we're hiring there. Just the attrition is much greater than the hiring at this point in time or getting people through the pipeline. That has slowed, which is good. So as all the mainline carriers have hired from the regional carriers, we all have a backlog to get through training.
So the regional attrition has slowed, which will be good for regional capacity as we go forward. But we believe that by the end of the year or through the summer, we'll be back up and having all the airline -- aircraft flying, which will be great for us from a utilization perspective. It will be great for us from a cost perspective to drive down the unit cost as we bring back all of those aircraft and get the pilot pipeline moving through.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Yeah. Well said that. And the only thing other -- Helane, the only other point that I would add is that, look, over time, it's supply and demand. And I'm confident that the quality of life and the compensation for pilots is something that's going to attract a lot of people to the industry.
It may take some time to work through, but it will happen.
Helane Becker -- Cowen and Company -- Analyst
Right. Could you, in the short term, bring back pilots who might have retired at, say, 58 or 60, and just have them work for a couple of years to bridge the gap? Or once they retire, that's that?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Helane, I'm going to ask David Seymour, our chief operating officer, to weigh in on that.
David Seymour -- Senior Vice President, Chief Operating Officer
Yeah. I think the challenge with that is many of them have been retired long enough that they would have to go through a requalification, which would take one of those slots. So given that, as Derek talked about, we have the supply coming in and the schoolhouse is really running at full speed here. And we're hitting the objectives that we've set forward to reach the goals that Derek talked about for the remainder of the year.
So as much -- I think that would be a great idea. It will just take away a slot for a new hire that's coming in.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
And overall, as well, we have a great relationship with the APA and making sure that we're getting as many pilots onboard and creating as many captain positions as we possibly can. And anything that would alter something like retirement status would have to be something that they champion.
Helane Becker -- Cowen and Company -- Analyst
Got. OK, great. Thanks very much, guys.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Thanks, Helane.
Operator
Thank you. Our next question comes from Mike Linenberg with Deutsche Bank. Your line is open.
Mike Linenberg -- Deutsche Bank -- Analyst
Oh, yeah. Hey, good morning. Just two here. I guess my first to Vasu.
Vasu, historically, I guess, sort of the rule of thumb is that the run-up in energy prices usually sort of finds its way into the fair structure with like a lag of three to six months. It does feel like that it's getting recaptured far more quickly. And I just wonder if it's any sort of structural changes and/or just by approaching this fuel price cycle with a bit less capacity, which may give you some leverage in your ability to quickly offset that? Just your thoughts around that?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes, Mike, it's an excellent question. And it looks like Jamie is one that we've actually spent a lot of time understandably thinking about. Look, it's really hard to tease out the different effects because you're right, there's high fuel prices, there's various limits on capacity as airlines try to size their airlines for the staffing that they can produce. And of course, demand, which just continues to accelerate at a pretty unprecedented rate.
So look, what we look at are actually the fares that we, American Airlines, are out and selling. And we're encouraged that indeed, month to month, we are seeing a greater increase in fares than certainly what we saw in 2019. But very importantly, one of the things that we've been looking at is how fair is at large -- or how is the rate of increase actually changing in 2019 to 2022 versus the last time the industry went through so many cataclysmic crisis, which were big fuel, the great recession, changes in the industry to consolidation. And indeed, the rate -- the pace of change that we're seeing is growing much greater than what we saw before.
Short way to say it is we are seeing a lot of strength in a fair environment with customers who frankly value quality of product that we have and are willing to pay us at flat. So we're encouraged by that. We see those trends going forward into the summer. And of course, that's inherent to the revenue guide you see before you.
Mike Linenberg -- Deutsche Bank -- Analyst
Great. And then, just my second. With respect to the NEA and I guess, the Justice's concern about potential consumer harm, have you put out any numbers about what you have done from a consumer benefit perspective since it's now been up and running, I think, for some time, or is that something that we just won't find out about until September? Thank you.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
I can start and others can add. Well, look, we can't talk about the consumer benefits of the NEA enough. And indeed, you can already see it in just what's published out there. In the first quarter, we brought the Northeast back faster than any of our competition.
And arguably through bringing it back, has encouraged competition where they frankly wasn't any before. We're doing things like we have full flat beds on all of our transcon markets, which is a thing that American Airlines is -- has long dreamed of and now through this partnership with JetBlue we're able to make it happen. We brought JetBlue into LaGuardia, I think, which they long to make happen, putting a new level of price competition on the incumbent carrier there. And so, we're encouraged by the structural things that's there, but what we're really encouraged by is the way consumers are responding to it.
So right now, for the first time and as long as we've recorded it, advantage enrollments, our loyalty program enrollments are growing in New York and Boston at greater rates than anything in the system as an absolute size, which is greater than anything at the system. New York is -- on a percentage of 2019, we're acquiring more credit card customers there than we did in 2019 and at a greater rate than any other parts of our system. So all of which is to say that the consumer is clearly responding to it. We see those benefits, and we keep rolling things out.
We -- there's a lot that we've kind of worked through as we kind of try to staff up a connecting operation at JFK. We've endeavored to go slow in order to make it happen. I hope for a minute to say that we are all the way to achieving what we want there to be, but we are really encouraged by what it's doing for consumers, the level of competition that it's bringing. And indeed, I mean, we can't talk about it enough, and maybe we need to talk about it more.
Mike Linenberg -- Deutsche Bank -- Analyst
Great.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Vasu, I'll just add to that. and I know our chief legal officer, Priya Aiyar, will agree with me. But we welcome scrutiny. We know that this is producing the benefits as we said it would.
And it's doing exactly what we had hoped. And we're confident we're going to prevail no matter what we face going forward. Pretty good with that?
Priya Aiyar -- Senior Vice President, General Counsel
Absolutely.
Mike Linenberg -- Deutsche Bank -- Analyst
Thanks, everyone.
Operator
Thank you. Our next question comes from Dan McKenzie with Seaport Global. Your line is open.
Dan McKenzie -- Seaport Global Securities -- Analyst
Oh, hey. Good morning. Thanks, guys. A couple of questions here.
First, a clarification to guide, maybe for Vasu. What level of restoration in international flying does the revenue guide embed? So does it include the relaxation of the 24-hour testing requirement in May sometime? And what conversations is the government having with you about the travel restrictions internationally?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
So Vasu, you can handle that first part. And then, let's have Nate cover the point out of testing.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yeah, thanks for the question. And look, international at large, we broadly anticipate to be 100% recovered. And indeed, it's not far from that right now. But to the question earlier from Savi, International is in a lot of different states of play right now.
Never forget that for us, in the second quarter, roughly 90% of our airline is flying in the Western Hemisphere and Heathrow. So a lot of our recovery is due to the fact that our short-haul international network is recovering at rates that are probably greater than what we see in domestic. And those markets, such as London and long-haul South America, are recovering pretty quickly, too. And that's where we have all of our capacity.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
And, actually, just one note there. International revenue, not 100% recovered. And then, go ahead. Go ahead from a long-haul perspective.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Correct. Yes, correct. So yes, I would say that the long-haul revenue isn't all the way there, but total international is -- and that's --
Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer
OK. Yes. And this is Nate. I would just say on the regulatory side, obviously, the testing is something that we continue to engage on with our industry partners.
We believe that the U.S. can safely follow countries that are progressing through the pandemic, including Canada, the U.K. and Ireland, which have, we think, safely evolved the scope of their entry requirements and moved away from predeparture testing. We've learned by this point in the pandemic, however, not to speculate on what may or may not happen.
So we don't have a specific time frame in mind, it's just something we continue to work on. Obviously, the decision is going to be up to the federal authorities and public health experts.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
OK. And for everybody, that's Nate Gatten our head of corporate and government affairs. So thanks, Nate.
Dan McKenzie -- Seaport Global Securities -- Analyst
Yes. Thanks. Second question here. Looking at slide five, the simple math is it looks like there's roughly $7 billion of revenue that was missing on an annualized basis relative to the first quarter.
But I believe the headcount is already in place. So we're left with variable cost, I think so. But if you could flesh this out, the fixed versus variable costs as you add back some of this higher-margin international flying?
Derek Kerr -- Vice Chairman, Chief Financial Officer
Dan, this is Derek. As we have talked about, we have the airline and costs in place to run a much greater airline. So as we go and as Robert said in his comments, our CASM will get better and better throughout the year as we head back to flying. An example is our salaries, I think, stayed pretty flat throughout the year, even though we're growing ASMs throughout the year.
So most everything is in place to fly. The example is the 787s. We thought we had the 787s coming in beginning of this year. So we have the pilots.
We have the crews. We have everything ready to go. We're not going to train them back down to 73s or other aircraft. We're going to leave them there for when they come.
So our expectation as we move forward and we bring back the aircraft and utilize our fleet and get us back to 100% of 2019, that it comes at a significant reduction in the CASM calculation as we go forward.
Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer
Thanks for the time, you guys.
Operator
Thank you. Our next question comes from Duane Pfennigwerth with Evercore ISI. Your line is open.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Hey, thanks. Good morning. Congrats, Robert, on the formal handoff. I wanted to follow-up to Mike's question.
Just with respect to JetBlue's bid for Spirit, as it relates to the NEA. Do you see any relationship between the two initiatives? And what is American's perspective on the proposed acquisition?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Steve, you want to comment here.
Steve Johnson -- Executive Vice President and Strategic Advisor
Sure. Hi. Thanks for the question. This is Steve Johnson.
First, I think it's important to recognize that JetBlue's acquisition of Spirit is not a foregone conclusion. jetBlue and Spirit is near -- as we can tell, they are discussing that now, and we'll ultimately find out which direction that's going to go. But I would say that Joanna and Robin were very quick to call Robert, as soon as the story leaked. And they were steadfast in their view that NEA was extraordinarily important in priority to JetBlue and that they intended to do everything that they could to maintain it.
And that -- part of their bid for Spirit contemplated, keeping and even strengthening the NEA.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Thanks for that perspective. With respect to the RASM guidance, Vasu, can you just contrast for us maybe how leisure fares are tracking versus 2019 versus closing business fares? And I understand regions, etc., make that more complicated. But maybe if we just look at it on a cut per say, domestic, is the closing zero to three getting better yet relative to '19? Thanks for taking the questions.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yeah. Hey, thanks for the question. And indeed, one that we look at very closely, because it is kind of interesting. We look at it both and what is out there selling, but importantly, what is netted back to us after we deduct the cost of sale from it.
And so, we are seeing, first and foremost, that -- we look at it really outside of 14 versus inside of 14. Outside of 14, indeed, there is a significant level of fare strength across any competitive O&D grouping there might be. Inside of 14, we see the same level of fare strength. But as we look at it right now, leisure trips or blended business leisure trips are coming in at yield levels that are anywhere from 75% to 80% in aggregate of what inside 14 corporate negotiated trips are coming in at.
And that's a really meaningful number because that means on a net basis, sometimes these fares which are coming to us oftentimes through our direct channels, through some pretty unprecedented sources on a net basis are actually really, really valuable to us and really valuable park and departure. The fares are high. What we are encouraged by is as we have rolled through March, there's simply more demand inside of 14 and more business and business and leisure demand. So yes, we see a lot of strength in the fare environment, a lot more strength outside of 14, but progressively greater strength and greater demand inside of 14.
Duane Pfennigwerth -- Evercore ISI -- Analyst
OK. Thank you for that. I guess, maybe just to put a finer point on it. Do you think zero to three is still an opportunity?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes, it is but not in quite the same way that it was before.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Thank you.
Operator
Thank you. Our next question comes from Catherine O'Brien with Goldman Sachs. Your line is open.
Catherine OBrien -- Goldman Sachs -- Analyst
Hey, good morning, everyone. Thank you so much for the time. So maybe just one on the 787. When we think about your capex over the next couple of years, as the 787 rules into future years, should we just be thinking about rolling forward that associated capex? Are we reaching a point where we should be thinking about maybe some late penalties potentially lowering your overall capex profile as we look across the next couple of years on an aggregated basis? I think you might have mentioned that Boeing was already paying penalties to prior years.
Just trying to get a sense to the read-through to American free cash flow in future years. Thank you.
Derek Kerr -- Vice Chairman, Chief Financial Officer
Yes. Catherine, I would, just from a capex perspective, I would just roll it without a doubt. Any kind of settlement that we have will be separate. The Boeing management team have assured us that they will cover us for the damages on the 787s -- the deliveries with the 787s.
How that comes? I don't know, because we haven't talked about it. There's no reason to discuss damages on the 788s until they deliver and we know when those are going to be, so that can be calculated. So in the models today, I would move the capex and just shove out the capex. But I would -- there is upside to the cash flow or something for a settlement with the Boeing team.
As they've said, they will cover the damages that we are incurring for those aircraft to be delayed and deferred.
Catherine OBrien -- Goldman Sachs -- Analyst
OK. Got it. And then, maybe one for Vasu, just coming a little bigger picture here. Can you just update us on the hub strategy you're working through pre-pandemic? The new growth opportunities at DFW, Charlotte, D.C., as you add back capacity, are you adding proportionately more flying into those hubs than you had in 2019? Or do you need to first restore the pre-pandemic network overall and then you look to those growth opportunities? Just trying to get a sense of -- I know those are the really most profitable hubs.
So are we already starting to blend in that higher proportion of more profitable flying? Or is that on the comp? Thank you so much for the time.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
It's a great question. Yes, we are absolutely blending it in now. As we said through the pandemic, we had no intention of wasting the crisis, and we didn't. We massively simplified the fleet, reduced, frankly, a number of long-haul airplanes that were among some of our most unprofitable route.
Launched new partnerships where we can create more value for the customer, offer more network in places like the West Coast and New York where we're weaker. But very importantly, we've put a lot more capacity into our hubs in two ways. One, we've concentrated more flying there, but we've updated the airline as well. We're 8% more seats per departure than -- as we go forward than what we were at the same time last year.
But for us, like the changes are indeed quite meaningful. Right now, if you go look in published schedules, about 65%, 70% of the airlines flying really what we call our Sunbelt hubs and short-haul Caribbean kind of markets, where the airline has a unique level of strength. And just -- to put that in perspective, I was reading through everyone's print last night, that in Q1, our four Sunbelt hubs, DFW, Charlotte, Miami, Phoenix, were somewhere between 70% to 80% of our competitors' full network, but we're -- are producing unit revenues between 5% to 10% greater than those networks. So very much that is a major thing, a big part, as we talked about here, of returning to profitability.
And frankly, running a better operation is focusing hard in those markets where we create really unique and disproportionate value and really getting all of our assets working there.
Catherine OBrien -- Goldman Sachs -- Analyst
Thank you so much.
Operator
Thank you. Our next question comes from Conor Cunningham with MKM Partners. Your line is open.
Conor Cunningham -- MKM Partners -- Analyst
Hey, everyone. Thank you for the time. I know United and Delta have talked to generating a profit for -- in 2022, just given where demand is. And I realize you guys have stopped short of saying that today, but the question that we're getting is just around the sustainability of like RASM production.
So do you expect to generate a profit for the remaining three quarters of this year, assuming like no massive change in oil or anything like that?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Hey, Conor, I'll start. Derek can add into this. Look, we're really pleased to be here talking about record revenues and producing a profit in the second quarter. But those are forecast.
And you know what, our job here is to make those forecasts a reality. So we're going to get to that business. And fourth -- to achieve profitability for the year, I can -- I guarantee it, we need to be profitable in the second quarter. And we're going to get started on that, and we'll update you as time goes on.
Derek, anything else you want to add?
Derek Kerr -- Vice Chairman, Chief Financial Officer
Agree.
Conor Cunningham -- MKM Partners -- Analyst
OK. OK. And I know you said you've sized the airlines and the resources you have, but there has been some struggles with operations and demand surge last year. Do you assume any incentive pay above and beyond what you've historically contemplated in your 2022 CASM outlook? And have you viewed incentive pay any differently than you have in the past, just given some of the staffing issues the industry has faced, in general? Thank you.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Conor, thanks for that. But I'll start with this, is that just like the rest of the world, we're all getting back up to speed. Firstly, for American, we didn't what -- the government asked us to when they provided us with the payroll support program. We ran the airline, and we ran it to serve people that had to get to the business and leisure activities, and you name it.
As we go forward, the jump that we have to take, to get to the kind of capacity that Derek has mentioned in our forecast, it's not that sizable of a jump. We're way ahead of it. We've certainly learned from issues. We're really focused on other parts of what I consider the airline supply chain, and that's our partners.
But we're very well compared. We have 12,000 more team members on, all ready to fly the summer -- the spring and summer schedule, I feel really great about it and I'm very, very confident that we're going to fly a reliable airline as we did, and we proved over the year-end holidays, better than a lot of our competition and as we have in the first three months of this year too.
Conor Cunningham -- MKM Partners -- Analyst
Great. Thank you.
Operator
Thank you. Our next question comes from Andrew Didora with Bank of America. Your line is open.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Hey, good morning, everyone. First one for Derek, just to confirm the updated CASM outlook that does not include any new labor deals, excuse me. And then, just kind of a follow-up to that, given the labor market and your operational plans, where do you think kind of CASM eventually shakes out relative to 2019 once all is said and done?
Derek Kerr -- Vice Chairman, Chief Financial Officer
Yes. One is -- yes, our CASM guidance does not have any new labor deals in it. We're in negotiations with a lot of our unions at this point in time, but we don't -- but we'll put those in our CASM guide when they occur and when we know where those are, but that's not in the CASM guide for the rest of the year. Getting back to 2019 levels depends on growing back and when do we grow back fully from a capacity perspective.
And also, as you alluded to, when do those labor deals go into effect? In 2019, we did the mechanic deal and we completed the mechanic deal during 2019. So that year over year is now into our numbers. So I think as we grow the airline back, getting ourselves back to 2019 CASM levels will take us to get our utilization back to where it was before and get all the aircraft back flying to get closer to that 2019 level.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Got it. Thank you. And then, Vasu, fully appreciate the historical relationship with GDP in response to one of the earlier questions. I guess, we get a lot of investor questions on inflation and the health of the consumer.
Do you have any historical perspective on consumer demand at these levels of inflation? And at what points do you begin to anticipate some sort of consumer slowing, if at all, in this type of environment? Thanks.
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes, it's an excellent question. And look there's a lot that we're seeing today, which is kind of breaking from a lot of historical trends, much like the question earlier about how fuel prices are bleeding into fare. It's just it's -- right now, it's really difficult to tease out what is causing what. But yes, as an industry, there hasn't been a great history of how inflation has turned into changes in demand.
But we're so far encouraged by what we see right now in two ways. First, demand continues to grow and grow at a meaningful pace. How long-lasting it is, remains to be seen. But if we learned anything in the last 20 to 24 months, we can adjust just about anything and do it pretty quickly.
And the other thing which is really encouraging is, frankly, spending on our co-branded credit cards. That is one where the -- throughout the pandemic, even though airline revenues fell, our co-branded revenues never fell nearly to the same degree. And indeed, we're encouraged right now because their -- our acquisitions are higher than before, and our spend on the card is keeping pace with inflation. Indeed, on our card with Barclays, our spend is growing at a greater rate than inflation.
So we are encouraged by that. There's clearly a level of demand for our product and future anticipation of travel, which is very promising. And we'll see how it plays out.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Great. Thanks, everyone.
Operator
Thank you. And that's all the time we have for analysts. We open the queue for your media. [Operator instructions] And our first question comes from Alison Sider with Wall Street Journal.
Your line is open.
Alison Sider -- Airline Reporter
Hi. Thanks so much. I'm just curious what you're seeing -- any response to COVID cases starting to rise again? Are you seeing that reflected at all in the consumer demand? Or in sort of your staffing, are you seeing higher rates of absences? And is that something you're kind of planning around?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
It's Robert. The answer to both is no.
Alison Sider -- Airline Reporter
OK. And I guess, if I could, on the masks. I guess, in a couple of days since that policy has changed, have you seen any evidence of any kind of shift in bookings, increased bookings or decreased? Is there any evidence yet that there will be any change to demand as a result of the mask mandate being lifted?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Hey, Allie, this is Vasu. It's still very early to tell and really difficult to draw very much of a conclusion. But so far, there's nothing to indicate that it's materially up or materially down.
Alison Sider -- Airline Reporter
OK. So not like when other international travel restrictions get lifted and there's an immediate response?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes. Certainly not on that order of magnitude at all.
Alison Sider -- Airline Reporter
Got it. Thanks.
Operator
Thank you. Our next question comes from David Koenig with Associated Press. Your line is open. One moment. OK, David, your line is open.
David Koenig -- Business Reporter
Yes. Hey. Robert and Derek both addressed this on the pilot. You gave pilot -- figures for pilot hires.
I was looking for a net number. Is 600 enough to offset the age 65 retirements and other attrition? What's the net number? And bottom line, are you going to have enough pilots to fly this summer?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Let me start, and David Seymour can join in. The answer is yes. As I've said repeatedly, we're sizing the airline for the resources that we have. From a pilot perspective, all of this hiring is meant to match up to a schedule, but also a schedule that we are making sure that we've built in safety factors.
So we have tremendous confidence that we can fly. In addition to that, we're scheduling the airline, employing tools that are different than we had before. And my confidence only grows, as I -- as we make our way in the year. David, do you have anything else to add?
David Seymour -- Senior Vice President, Chief Operating Officer
Robert, let me just add to that. I mean, -- I think the numbers Derek talked about, the 600, that was this year alone. So last year, we had a target of hiring 350, we hired over 500. So the 600 is just for this year, and that's well ahead of pace where we set our expectations to.
And in the pilot training right now, we're actually hitting our goals and our throughput that we expect and don't foresee any problems going forward of making those numbers so we can hit the goal and fly all of our aircraft by the end of this year.
Operator
Thank you. Our next question comes from Mary Schlangenstein with Bloomberg News. Your line is open.
Mary Schlangenstein -- Airline Reporter
Hi. Thanks very much. I had a couple of quick questions. One, Robert, you had said this morning, I think, that you're not doing as much regional flying as you would like to be.
And I wanted to see if you could comment in terms of have you got planes parked? Have you suspended any routes? And is that all related to the shortage of pilots on the regional level?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Yes. So thanks, Mary. As Derek noted, we're not finding the full regional schedule we'd like to. We're going to get those aircraft back up over time.
But it's related to how they're being hired from the regional airlines, so an increased level of attrition and the time it takes to actually backfill those pilots. So while the regional carriers are able to source pilots at this time, we just can't get them up to speed, and in the position, fast enough. Over the long term, we do need to work on regional pilot supply. And we're out in front of that with our cadet program and trying to incentify people to come into the business.
And I know -- I'm confident that, over the long term, the prospects of quality of life and compensation are something that are going to attract people to the business. So it may take some time to work out. But as Derek said, over the course of the next year or so, we anticipate being able to get not only mainline back up to full utilization by the end of the year, the regionals sometime thereafter.
Mary Schlangenstein -- Airline Reporter
How much down is you're flying, your regional flying?
Derek Kerr -- Vice Chairman, Chief Financial Officer
Departures in the second quarter are probably down about 20% versus 2019, where the airline mainline is down about 5%. So maybe 15% different than -- lower than what the mainline is.
Mary Schlangenstein -- Airline Reporter
OK.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
And Mary, I want to note on that. We're not just -- look, while we have aircraft that we're not flying, there's many other companies like -- we're not changing that. We're simply sizing the airlines for the products we have. And so, our confidence in this summer is rooted in.
We've already taken a look. We've already made sure that we have appropriate confidence levels in what we can do. So no need for any type of concern over the summer.
Mary Schlangenstein -- Airline Reporter
OK. And then, the second question I had, if we could go back to the NEA for a minute. If the government tells JetBlue, it can acquire Spirit, but it wants big changes in the NEA, what's the prospect for American at that time? Is that something that you could have to walk away from with JetBlue?
Steve Johnson -- Executive Vice President and Strategic Advisor
Hey, Mary, thanks, that's a speculation on speculation on speculation on speculation. Vasu was -- I think really articulated in his comments about how pro-consumer and pro-competitive the NEA is. I mean, we could go on and on about that. And if you assume that JetBlue actually figures out a way to acquire Spirit.
And we get to that point. The JetBlue-Spirit combination doesn't change the impact to consumers of the NEA. It's not going to change one bit the value that we create for consumers in New York and Boston. So I think it's -- there's a lot of water to go under the bridge, obviously, with respect to Frontier and Spirit and JetBlue.
But I think there's -- that kind of speculation is probably premature. And we feel really, I think, excited about the prospects of winning our lawsuit with the DOJ. And we're looking forward to continue with the NEA, just in perpetuity.
Mary Schlangenstein -- Airline Reporter
Yeah. Steve, are there any discussions underway on settling with the DOJ over the NEA? Or do you expect that that's going to go to trial in September?
Steve Johnson -- Executive Vice President and Strategic Advisor
I expect it'll go to trial in September.
Mary Schlangenstein -- Airline Reporter
Thank you.
Operator
Thank you. Our next question comes from Dawn Gilbertson with USA Today. Your line is open.
Dawn Gilbertson -- Consumer Travel Reporter
Hi. Good morning, two questions on masks. Do you foresee -- given the DOJ appeal, do you foresee any scenario in which the mask mandate on plan is reinstated as swiftly as it was removed? And the second thing is how is American handling traveler request for refund, given the -- how quickly the mask mandate was lifted? Are you -- if someone doesn't want to fly they're immunocompromised, are you just giving refunds? What's your policy? Thank you.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Nate, go ahead. Take the first.
Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer
Yeah. I can take the first part of that question. This is Nate. Obviously, we're aware that the DOJ is appealing the Florida ruling, although they have not asked for a stay of the district court judge.
Beyond that, as I mentioned earlier, we've learned throughout the pandemic not to speculate on what the government may or may not do. I would emphasize though that in keeping with our commitment to create a welcoming environment for everyone who travels with us, customers and team members may, of course, choose to continue to wear masks at their own discretion. And we expect that many will continue to do so. But especially considering the steps that we've taken for the last couple of years regarding cleanliness and airflow, we don't feel that reinstating of the mandate is necessary at this time.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Yes. And Dawn, thanks for the question overall. And just right off, we haven't had much interaction with customers that have said they want to do anything different. But like we do in all these events, we're taking a look at our policies.
And we are certainly, with customers, open and asking them to get in touch with our reservations office, and we'll make sure that we accommodate them in an appropriate fashion.
Dawn Gilbertson -- Consumer Travel Reporter
Thank you.
Operator
Thank you. Our next question comes from Leslie Josephs with CNBC. Your line is open.
Leslie Josephs -- Airline Reporter
Hi. Good morning, everyone. I was wondering how you guys are thinking about IROPS during the summer? And if you have enough capacity and clear capacity to handle rebookings? And how you are addressing that? And just kind of how the overall labor landscape looks, not just pilots, but customer service, grounds and other employees?
Derek Kerr -- Vice Chairman, Chief Financial Officer
Yes. I appreciate the question. Certainly, one that we spend a lot of time thinking through and working on. What I'd tell you, we've actually implemented a number of tools knowing that loads are going to be high as we go into the summer, and we welcome back a lot more customers.
And those tools we've actually been utilizing and have shown good promise here in terms of ensuring that we're not canceling and working our airline through a delay as this weather does develop, and we work our way through it. And that's really the key for us is making sure that we're canceling as few flights as possible to allow the traffic to continue to move through. But again, we're very focused on that. We know that the weather is going to be out there.
We're certainly not taking anything for granted.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
David, I'll just add. Look, we have 12,000 new team members. And so, that's a lot more than the 600 pilots that we have. And actually, that 12,000 is net new.
And we hired, I think, almost 20,000 people. But those people -- team members are working in reservations. They're at our airports. They're throughout the system.
So we've beefed up our capacity to be able to handle. And then, Maya, do you want to say about anything more about other technology that we're using?
Maya Leibman -- Executive Vice President, Chief Information Officer
Yes. I think David hit on it. The goal is to prevent the cancellations in the first place so that we don't have to reaccommodate people given the high loads that we expect this summer. And we've got some pretty cool new technology that really focuses on how we manage to do that.
In addition, really helping with improving our technology around crew recovery and some optimization technology that will really help reduce our taxi times, our turn times at airports and all of those things together are going to be in place for this summer, in order to ensure that we have a better approach to irregular operations.
Leslie Josephs -- Airline Reporter
OK. Thank you. And then, my second question, just really quick. Does it still make sense for American Airlines to have an award chart just given where demand is and kind of how hard it is to find seats with awards these days, with miles these days?
Vasu Raja -- Senior Vice President, Chief Commercial Officer
Yes, thanks for the question. Actually, what's been really interesting to us, even though we are seeing an improving fare environment is actually our redemptions are up both in March and as we go forward. As far as the award chart goes, that is certainly something which our top-tier loyalty customers very much value and they see a lot of opportunities for it to go and secure traffic, which many of them have been long anticipated through the pandemic. So as it stands, we're still really encouraged by having an award chart.
And encouraged that, frankly, even though we are, in this rising environment, we're creating the right level of availability for redemptions.
Leslie Josephs -- Airline Reporter
Thank you.
Operator
Thank you. Our next question comes from Niraj Chokshi with New York Times. Your line is open.
Niraj Chokshi -- Business Reporter
So I think most of my questions were answered already. I guess one question I had on masks was, do you anticipate it affecting hiring at all, maybe potential -- people you might hire might be nervous about sort of the shift, the drop of the requirement?
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Hey, Niraj. The answer is no. And just so everybody is aware, if our customers and team members want to wear masks, we encourage them. We welcome that, and we see that as a practice that's going to go continue forward.
Niraj Chokshi -- Business Reporter
Thank you.
Operator
Thank you. Our next question comes from Kathryn Krupnik with CBS News. Your line is open.
Kathryn Krupnik -- Broadcast Journalist
Hey, guys. Thanks so much for doing this today. I hope this is the last time that we have to talk about unruly passengers. But do you have a count on how many of that American has banned? And what are you going to do with those who are banned? Are you going to do what your competitors are doing and doing case-by-case basis?
Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer
Yeah. This is Nate. We don't give account for how many passengers we banned specifically for mask noncompliance. In most of the cases, the passengers who were added to our internal refuse list, as a result of mask noncompliance, will be permitted to resume travel at some point in time.
In cases where an incident may have started with face mask noncompliance and escalated into anything involving something more serious or certainly an assault on one of our key members or customers, those passengers are going to remain on our permanent internal refuse list and will never be allowed to travel with us again. I would just add in this vein, we're very grateful to our partners and the federal government who have prioritized the safety of our crews, both our ground crews and our crews in the air during this period. And we are really appreciative of the announcement yesterday from the acting FAA administrator, Billy Nolen, who said that the zero-tolerance policy against unruly passengers is here to stay as we anticipate. Unfortunately, that these cases will continue, although, as Robert noted earlier today, hopefully, with fewer incidents.
Operator
Thank you. And that's all the time we have for Q&A. I'd like to turn the call back to Robert Isom for closing remarks.
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Thank you. I'll just close with this. Look, we've worked really hard as a company to get to this point to be able to take advantage of an environment where demand is improving. The airline is structured in a really great fashion.
I want to thank our team members for working so hard to get us through the pandemic and to be in a position to actually realize everything that we want to make about American. And in terms of the transition as well, this is my firstearnings call I want to thank our board of directors, especially Doug Parker for making things really work smoothly, putting us in a position to be talking about things that are very, very favorable. And so, for our team, you've heard from a lot of players here today. I couldn't be more proud and confident in the team that we have from a senior leadership perspective.
You're going to hear more from them as time goes on. And our job right now is to make the second quarter forecast a reality. That is what we're focused on. So we're going to get out there and make it happen.
And I want to thank everybody for their time today.
Operator
Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Everyone, have a great day.
Duration: 78 minutes
Call participants:
Scott Long -- Head of Investor Relations
Robert Isom -- Chief Executive Officer and Chief Recruitment Officer
Derek Kerr -- Vice Chairman, Chief Financial Officer
Jamie Baker -- J.P. Morgan -- Analyst
Vasu Raja -- Senior Vice President, Chief Commercial Officer
David Vernon -- Sanford C. Bernstein -- Analyst
Maya Leibman -- Executive Vice President, Chief Information Officer
Savi Syth -- Raymond James -- Analyst
Helane Becker -- Cowen and Company -- Analyst
David Seymour -- Senior Vice President, Chief Operating Officer
Mike Linenberg -- Deutsche Bank -- Analyst
Priya Aiyar -- Senior Vice President, General Counsel
Dan McKenzie -- Seaport Global Securities -- Analyst
Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer
Duane Pfennigwerth -- Evercore ISI -- Analyst
Steve Johnson -- Executive Vice President and Strategic Advisor
Catherine OBrien -- Goldman Sachs -- Analyst
Conor Cunningham -- MKM Partners -- Analyst
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Alison Sider -- Airline Reporter
David Koenig -- Business Reporter
Mary Schlangenstein -- Airline Reporter
Dawn Gilbertson -- Consumer Travel Reporter
Leslie Josephs -- Airline Reporter
Niraj Chokshi -- Business Reporter
Kathryn Krupnik -- Broadcast Journalist
More AAL analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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American Airlines Group (NASDAQ: AAL) Q1 2022 Earnings Call Apr 21, 2022, 8:30 a.m. Duration: 78 minutes Call participants: Scott Long -- Head of Investor Relations Robert Isom -- Chief Executive Officer and Chief Recruitment Officer Derek Kerr -- Vice Chairman, Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Senior Vice President, Chief Commercial Officer David Vernon -- Sanford C. Bernstein -- Analyst Maya Leibman -- Executive Vice President, Chief Information Officer Savi Syth -- Raymond James -- Analyst Helane Becker -- Cowen and Company -- Analyst David Seymour -- Senior Vice President, Chief Operating Officer Mike Linenberg -- Deutsche Bank -- Analyst Priya Aiyar -- Senior Vice President, General Counsel Dan McKenzie -- Seaport Global Securities -- Analyst Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer Duane Pfennigwerth -- Evercore ISI -- Analyst Steve Johnson -- Executive Vice President and Strategic Advisor Catherine OBrien -- Goldman Sachs -- Analyst Conor Cunningham -- MKM Partners -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- Airline Reporter David Koenig -- Business Reporter Mary Schlangenstein -- Airline Reporter Dawn Gilbertson -- Consumer Travel Reporter Leslie Josephs -- Airline Reporter Niraj Chokshi -- Business Reporter Kathryn Krupnik -- Broadcast Journalist More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. The American team has done an incredible job of setting up the airlines to take advantage of the rebound, pointing our network to where our customers want to fly, establishing partnerships in more challenging areas and making sure efficiency is top of mind.
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Duration: 78 minutes Call participants: Scott Long -- Head of Investor Relations Robert Isom -- Chief Executive Officer and Chief Recruitment Officer Derek Kerr -- Vice Chairman, Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Senior Vice President, Chief Commercial Officer David Vernon -- Sanford C. Bernstein -- Analyst Maya Leibman -- Executive Vice President, Chief Information Officer Savi Syth -- Raymond James -- Analyst Helane Becker -- Cowen and Company -- Analyst David Seymour -- Senior Vice President, Chief Operating Officer Mike Linenberg -- Deutsche Bank -- Analyst Priya Aiyar -- Senior Vice President, General Counsel Dan McKenzie -- Seaport Global Securities -- Analyst Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer Duane Pfennigwerth -- Evercore ISI -- Analyst Steve Johnson -- Executive Vice President and Strategic Advisor Catherine OBrien -- Goldman Sachs -- Analyst Conor Cunningham -- MKM Partners -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- Airline Reporter David Koenig -- Business Reporter Mary Schlangenstein -- Airline Reporter Dawn Gilbertson -- Consumer Travel Reporter Leslie Josephs -- Airline Reporter Niraj Chokshi -- Business Reporter Kathryn Krupnik -- Broadcast Journalist More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q1 2022 Earnings Call Apr 21, 2022, 8:30 a.m. In fact, in the face of increased fuel prices, we were profitable for the month of March, excluding net special items, due to our strong revenue performance and cost efficiencies.
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Duration: 78 minutes Call participants: Scott Long -- Head of Investor Relations Robert Isom -- Chief Executive Officer and Chief Recruitment Officer Derek Kerr -- Vice Chairman, Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Senior Vice President, Chief Commercial Officer David Vernon -- Sanford C. Bernstein -- Analyst Maya Leibman -- Executive Vice President, Chief Information Officer Savi Syth -- Raymond James -- Analyst Helane Becker -- Cowen and Company -- Analyst David Seymour -- Senior Vice President, Chief Operating Officer Mike Linenberg -- Deutsche Bank -- Analyst Priya Aiyar -- Senior Vice President, General Counsel Dan McKenzie -- Seaport Global Securities -- Analyst Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer Duane Pfennigwerth -- Evercore ISI -- Analyst Steve Johnson -- Executive Vice President and Strategic Advisor Catherine OBrien -- Goldman Sachs -- Analyst Conor Cunningham -- MKM Partners -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- Airline Reporter David Koenig -- Business Reporter Mary Schlangenstein -- Airline Reporter Dawn Gilbertson -- Consumer Travel Reporter Leslie Josephs -- Airline Reporter Niraj Chokshi -- Business Reporter Kathryn Krupnik -- Broadcast Journalist More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q1 2022 Earnings Call Apr 21, 2022, 8:30 a.m. Robert Isom -- Chief Executive Officer and Chief Recruitment Officer Hey, David, we're going to start with Maya Leibman and talk about some of the things we've done.
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Duration: 78 minutes Call participants: Scott Long -- Head of Investor Relations Robert Isom -- Chief Executive Officer and Chief Recruitment Officer Derek Kerr -- Vice Chairman, Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Senior Vice President, Chief Commercial Officer David Vernon -- Sanford C. Bernstein -- Analyst Maya Leibman -- Executive Vice President, Chief Information Officer Savi Syth -- Raymond James -- Analyst Helane Becker -- Cowen and Company -- Analyst David Seymour -- Senior Vice President, Chief Operating Officer Mike Linenberg -- Deutsche Bank -- Analyst Priya Aiyar -- Senior Vice President, General Counsel Dan McKenzie -- Seaport Global Securities -- Analyst Nate Gatten -- Senior Vice President, Corporate Affairs and Chief Government Affairs Officer Duane Pfennigwerth -- Evercore ISI -- Analyst Steve Johnson -- Executive Vice President and Strategic Advisor Catherine OBrien -- Goldman Sachs -- Analyst Conor Cunningham -- MKM Partners -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- Airline Reporter David Koenig -- Business Reporter Mary Schlangenstein -- Airline Reporter Dawn Gilbertson -- Consumer Travel Reporter Leslie Josephs -- Airline Reporter Niraj Chokshi -- Business Reporter Kathryn Krupnik -- Broadcast Journalist More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q1 2022 Earnings Call Apr 21, 2022, 8:30 a.m. I also want to thank the American Airlines team.
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2022-04-21 00:00:00 UTC
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Why Airline Shares Flew Higher This Week
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-flew-higher-this-week
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What happened
It was a good week for airline stocks. A key government COVID-19 restriction was put on ice, and earnings season pointed to better days ahead.
The whole industry took flight as a result, with United Airlines Holdings (NASDAQ: UAL) up 15% through Thursday trading, and American Airlines Group (NASDAQ: AAL) and Hawaiian Holdings (NASDAQ: HA) each adding more than 10%.
Image source: Getty Images.
So what
The airline industry has been hit hard by the pandemic. And while it is still way premature to say COVID-19 is behind us, airline investors did get to cheer an important symbolic milestone this week as the mandate that passengers wear masks while on board was at least temporarily struck down. The airlines have been lobbying for eased restrictions on flyers, part of a broader effort to try to entice passengers back.
The government is planning to appeal the court decision that struck down the mandate, so masks might one day return. However, earnings season is giving a strong indication that passengers aren't waiting around to book summer travel. Good news from Delta Air Lines (NYSE: DAL) last week started a rally in airline shares that was accelerated on Thursday after American and United reported.
Both United and American, like Delta before them, lost money in the first quarter. But all three airlines were bullish on summer travel demand and confident about full-year profitability. Significantly, all three airlines are telling investors that strong demand and limited capacity are giving them the pricing power to offset spiking fuel prices. Heading into earnings season, fears of higher costs due to Russia's invasion of Ukraine were weighing heavily on investors' minds, and the upbeat forecasts triggered a relief rally in the shares.
Hawaiian doesn't plan on reporting earnings until after markets close on Tuesday, April 26, but it is straightforward to apply what the big three airlines are saying about demand and pricing power to the entire industry.
Now what
The evidence all suggests the worst is finally over for the airline industry, and we are on the path to recovery. But airline investors should be aware that path is long, and there is still additional potential turbulence on the horizon.
It's hard to imagine demand softening even if the mask mandate is restored, but COVID-19 cases are ticking up in some regions and there could be another surge or a new variant that ripples through the summer travel months, crimping demand. It is also too soon to say how much rising inflation will impact demand.
If all goes to plan, the airlines will hopefully see the beginnings of a recovery in demand for business and international travel in the months to come, and see operations return to pre-pandemic levels by the end of 2023. That's a lot of time for things to not go according to plan. Investors buying in now should keep their seatbelts fastened: As good as the last few weeks have been, there is likely more volatility up ahead for the airline sector.
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The whole industry took flight as a result, with United Airlines Holdings (NASDAQ: UAL) up 15% through Thursday trading, and American Airlines Group (NASDAQ: AAL) and Hawaiian Holdings (NASDAQ: HA) each adding more than 10%. Good news from Delta Air Lines (NYSE: DAL) last week started a rally in airline shares that was accelerated on Thursday after American and United reported. Heading into earnings season, fears of higher costs due to Russia's invasion of Ukraine were weighing heavily on investors' minds, and the upbeat forecasts triggered a relief rally in the shares.
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The whole industry took flight as a result, with United Airlines Holdings (NASDAQ: UAL) up 15% through Thursday trading, and American Airlines Group (NASDAQ: AAL) and Hawaiian Holdings (NASDAQ: HA) each adding more than 10%. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Lou Whiteman owns Delta Air Lines. The Motley Fool recommends Delta Air Lines and Hawaiian Holdings.
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The whole industry took flight as a result, with United Airlines Holdings (NASDAQ: UAL) up 15% through Thursday trading, and American Airlines Group (NASDAQ: AAL) and Hawaiian Holdings (NASDAQ: HA) each adding more than 10%. Hawaiian doesn't plan on reporting earnings until after markets close on Tuesday, April 26, but it is straightforward to apply what the big three airlines are saying about demand and pricing power to the entire industry. * They just revealed what they believe are the ten best stocks for investors to buy right now... and United Airlines Holdings wasn't one of them!
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The whole industry took flight as a result, with United Airlines Holdings (NASDAQ: UAL) up 15% through Thursday trading, and American Airlines Group (NASDAQ: AAL) and Hawaiian Holdings (NASDAQ: HA) each adding more than 10%. The government is planning to appeal the court decision that struck down the mandate, so masks might one day return. However, earnings season is giving a strong indication that passengers aren't waiting around to book summer travel.
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2022-04-21 00:00:00 UTC
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4 Top Stock Trades for Friday: AAPL, UAL, SNAP, ARKK
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AAL
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https://www.nasdaq.com/articles/4-top-stock-trades-for-friday%3A-aapl-ual-snap-arkk
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After the markets gapped higher and pushed into resistance, stocks faded hard on very bearish downside breadth. With that in mind, let’s look at a few top stock trades ahead of Friday.
Top Stock Trades for Tomorrow No. 1: Apple (AAPL)
Click to Enlarge
Source: Chart courtesy of TrendSpider
When the markets were rallying, Apple (NASDAQ:AAPL) was showing some nice relative strength. However, it also showed vulnerability.
The stock was rallying right into the underside of the 21-day moving average and the 50% retracement of the current range. If it continued higher, the 61.8% retracement would have been in play.
Instead, it recoiled and then traded below the 10-day and 50-day moving averages. Now all of a sudden, the $163.50 area is on watch.
7 Long-Term Stocks to Buy for a Robust Retirement
If that level breaks, the 200-day moving average will be in play. If the stock really breaks down, the low-$150s could be in play.
Top Stock Trades for Tomorrow No. 2: United Airlines (UAL)
Click to Enlarge
Source: Chart courtesy of TrendSpider
United Airlines (NASDAQ:UAL) is reacting nicely to earnings, but the market-wide selling is weighing it down.
It momentarily cleared the first-quarter high up near $51. The move came after a solid report that seemed to indicate that travelers are back. American Airlines’ (NASDAQ:AAL) earnings report also seemed to back that up.
Fading now, watch the post-earnings low at $50.23. Below $50 and it could open the door back to the $47 area and fill the gap.
On the upside, a move over $51 puts the post-earnings high in play. That’s followed by a potential move toward $54.50.
Top Stock Trades for Tomorrow No. 3: Ark Innovation Fund (ARKK)
Click to Enlarge
Source: Chart courtesy of TrendSpider
The Ark Innovation Fund (NYSEARCA:ARKK) has been on watch as high-growth names are back under pressure. Tesla’s (NASDAQ:TSLA) earnings pop and subsequent fade took many investors off-guard (but shouldn’t have) and with Tesla being ARKK’s top holding, the latter is taking a hit too.
With Thursday’s decline, ARKK is now trading back toward this year’s low. I would love to see a washout on high volume below this mark and an eventual recovery back above $52.
As much as growth stocks remain vulnerable while the overall market has held up relatively well, we have to realize there are many high-quality names in this bunch that have been battered.
7 Long-Term Stocks to Buy for a Robust Retirement
For now, I am waiting to see how it handles the $51.85 low and go from there. A break below it and reversal back above $52 could get investors long for a potential trade, with a stop-loss just below whatever the low ends up being (assuming it’s reasonable).
Top Trades for Tomorrow No. 4: Snap (SNAP)
Click to Enlarge
Source: Chart courtesy of TrendSpider
The action in Snap (NYSE:SNAP) has been really unfortunate. The stock has been trading poorly since it last reported earnings, even though the results were much better than expected and sent the stock soaring.
If it can do it again, I wouldn’t rule out a return to the $40s. If it disappoints, the gap-fill at $26.50 could be in play. Below that and the 2022 lows may be on tap at $24.32.
If we get a gap-up into the 50-day and 21-day moving averages, investors have to use caution in case it fades from those measures.
Proceed carefully as a trader in growth stocks, even though there are opportunities for investors.
On the date of publication, Bret Kenwell held a long position in SNAP. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Friday: AAPL, UAL, SNAP, ARKK appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines’ (NASDAQ:AAL) earnings report also seemed to back that up. Click to Enlarge Source: Chart courtesy of TrendSpider When the markets were rallying, Apple (NASDAQ:AAPL) was showing some nice relative strength. Click to Enlarge Source: Chart courtesy of TrendSpider United Airlines (NASDAQ:UAL) is reacting nicely to earnings, but the market-wide selling is weighing it down.
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American Airlines’ (NASDAQ:AAL) earnings report also seemed to back that up. Click to Enlarge Source: Chart courtesy of TrendSpider When the markets were rallying, Apple (NASDAQ:AAPL) was showing some nice relative strength. Click to Enlarge Source: Chart courtesy of TrendSpider United Airlines (NASDAQ:UAL) is reacting nicely to earnings, but the market-wide selling is weighing it down.
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American Airlines’ (NASDAQ:AAL) earnings report also seemed to back that up. InvestorPlace - Stock Market News, Stock Advice & Trading Tips After the markets gapped higher and pushed into resistance, stocks faded hard on very bearish downside breadth. The stock has been trading poorly since it last reported earnings, even though the results were much better than expected and sent the stock soaring.
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American Airlines’ (NASDAQ:AAL) earnings report also seemed to back that up. On the upside, a move over $51 puts the post-earnings high in play. On the date of publication, Bret Kenwell held a long position in SNAP.
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