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3700.0
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2022-03-25 00:00:00 UTC
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S&P 500 Movers: ETSY, CTRA
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AAL
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https://www.nasdaq.com/articles/sp-500-movers%3A-etsy-ctra
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nan
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nan
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In early trading on Friday, shares of Coterra Energy topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%. Year to date, Coterra Energy registers a 47.4% gain.
And the worst performing S&P 500 component thus far on the day is Etsy, trading down 4.8%. Etsy is lower by about 38.7% looking at the year to date performance.
Two other components making moves today are Moderna, trading down 4.7%, and American Airlines Group, trading up 3.4% on the day.
VIDEO: S&P 500 Movers: ETSY, CTRA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Year to date, Coterra Energy registers a 47.4% gain. And the worst performing S&P 500 component thus far on the day is Etsy, trading down 4.8%. VIDEO: S&P 500 Movers: ETSY, CTRA The views and 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 early trading on Friday, shares of Coterra Energy topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%. Year to date, Coterra Energy registers a 47.4% gain. And the worst performing S&P 500 component thus far on the day is Etsy, trading down 4.8%.
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In early trading on Friday, shares of Coterra Energy topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%. And the worst performing S&P 500 component thus far on the day is Etsy, trading down 4.8%. Two other components making moves today are Moderna, trading down 4.7%, and American Airlines Group, trading up 3.4% on the day.
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In early trading on Friday, shares of Coterra Energy topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%. And the worst performing S&P 500 component thus far on the day is Etsy, trading down 4.8%. VIDEO: S&P 500 Movers: ETSY, CTRA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3701.0
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2022-03-25 00:00:00 UTC
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United Airlines Is a Buy Long Term, But Beware Short-Term Headwinds
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AAL
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https://www.nasdaq.com/articles/united-airlines-is-a-buy-long-term-but-beware-short-term-headwinds
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
United Airlines (NASDAQ:UAL) stock is rallying and should continue to rally over the long haul, but hold on tight for some near-term turbulence.
Source: travelview / Shutterstock.com
Overall it’s a nice change of pace for UAL stock owners. For the last two months, the bears have had two major advantages over the bulls. The bearish tailwinds created by the Russian invasion of Ukraine added to a market already struggling with Federal Reserve fears. As a result equity markets have been struggling to maintain momentum until the last week or so.
But after a disastrous start to March, the bulls stepped into United stock ferociously on March 8 and ended up delivering a 40% run. That’s why I think UAL stock should face short-term resistance soon.
I wouldn’t short it, but I want to infuse a bit of reality. All of my write-ups on this company since the pandemic have been bullish. And I have successfully picked entry points that delivered healthy profits.
6 Blue-Chip Stocks That Will Survive Any Bubble Burst
But after a 40% run, it is normal for a stock to face resistance. Usually it’s because this is where bottom pickers lock their profits.
The decision to buy it for new investors will be down to a matter of time. I understand that for the long term, it won’t matter much exactly where we start the position. But short term, in this post-pandemic Wall Street, timing matters more than ever before. Things are moving very fast. Small mistakes can carry graver consequences.
UAL Stock Is In FOMO Mode
Source: Charts by TradingView
It’s a matter of style, but I prefer missing out on a bit of upside to entering too early. I would wait a few days seeking a better entry point. Or else I could only take partial positions, leaving room to add more later.
Alternatively, using options opens the door for dozens of strategies that would work immediately.
Fundamentally, the news isn’t great yet. I give management kudos for surviving the lockdown crisis. The whole world came to a screeching halt, and United is in the business of moving people. Its overhead is huge, so it had to resort to extreme measures, including debt. Using leverage is a far better alternative to bankruptcy.
But now it needs its revenues to recover to pre-Covid-19 levels, and they haven’t yet. Last year’s revenues were $25 billion, which is a vast improvement from 2020’s $15 billion. However, as impressive as that number is, it’s still more than 40% below 2019’s revenue of $43 billion.
In other words, it is far from normalizing, especially on profitability.
It Is Still Tough for UAL Stock
United’s 2021 net income was around -$2 billion, which is hardly a safe situation. But at least it flowed $2 billion of positive cash from its own operations. This should help stop the bleeding, even if it doesn’t accelerate the growth.
Moreover it has operational challenges with labor and travel disruptions because of the Ukraine war.
I am pulling for UAL stock to succeed long-term, and I bet it will. But in the short term, the bulls will face strong headwinds going into $45 per share. I would look to buy it below $40 if possible. Although if someone’s intention is to hold it for a decade, then they might not share my patience for finding an entry point.
Remember that stocks do fall for extrinsic factors. Markets remain volatile, so I find it important to be in trader mode more than pure investor. Every penny counts when markets are moving this wildly.
On the date of publication, Nicolas Chahine 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 Is a Buy Long Term, But Beware Short-Term Headwinds 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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The bearish tailwinds created by the Russian invasion of Ukraine added to a market already struggling with Federal Reserve fears. UAL Stock Is In FOMO Mode Source: Charts by TradingView It’s a matter of style, but I prefer missing out on a bit of upside to entering too early. The post United Airlines Is a Buy Long Term, But Beware Short-Term Headwinds appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Airlines (NASDAQ:UAL) stock is rallying and should continue to rally over the long haul, but hold on tight for some near-term turbulence. That’s why I think UAL stock should face short-term resistance soon. The post United Airlines Is a Buy Long Term, But Beware Short-Term Headwinds appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Airlines (NASDAQ:UAL) stock is rallying and should continue to rally over the long haul, but hold on tight for some near-term turbulence. 6 Blue-Chip Stocks That Will Survive Any Bubble Burst But after a 40% run, it is normal for a stock to face resistance. It Is Still Tough for UAL Stock United’s 2021 net income was around -$2 billion, which is hardly a safe situation.
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6 Blue-Chip Stocks That Will Survive Any Bubble Burst But after a 40% run, it is normal for a stock to face resistance. But at least it flowed $2 billion of positive cash from its own operations. But in the short term, the bulls will face strong headwinds going into $45 per share.
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3702.0
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2022-03-25 00:00:00 UTC
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Anglo American completes exit from S.African coal miner Thungela
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AAL
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https://www.nasdaq.com/articles/anglo-american-completes-exit-from-s.african-coal-miner-thungela
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nan
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nan
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HARARE, March 25 (Reuters) - Global mining giant Anglo American Plc AAL.L on Friday announced the sale of its remaining shareholding in Thungela Resources TGAJ.J, completing its exit from the South African coal business.
Under pressure from investors to exit coal businesses worldwide, the owner of gold, platinum and diamond mining companies, Anglo American hived off its entire stake in its South African coal mines into Thungela and distributed most of the shares to its shareholders through an initial public offering in June, barring 8%.
At the time of listing, investors had written off the prospects of Thungela amid global pressure on companies and countries to wean industries off of coal.
But rising coal prices turned the tables for Thungela and its shares are up six-fold in the last nine months.
Anglo said it sold its residual Thungela shareholding for 154 rand per share, realising gross proceeds of 1.67 billion rand ($115 million).
Thungela's shares were trading at 160.68 rand at 0741 GMT on Friday, down 8.85%. The company listed at 25 rand per share in June.
On March 22, Thungela reported its first full-year profit for the year ended December 2021 of 6.9 billion rand, driven by higher coal prices.
($1 = 14.5279 rand)
(Reporting by Nelson Banya; editing by Jason Neely Editing by Promit Mukherjee)
((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.
|
HARARE, March 25 (Reuters) - Global mining giant Anglo American Plc AAL.L on Friday announced the sale of its remaining shareholding in Thungela Resources TGAJ.J, completing its exit from the South African coal business. At the time of listing, investors had written off the prospects of Thungela amid global pressure on companies and countries to wean industries off of coal. On March 22, Thungela reported its first full-year profit for the year ended December 2021 of 6.9 billion rand, driven by higher coal prices.
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HARARE, March 25 (Reuters) - Global mining giant Anglo American Plc AAL.L on Friday announced the sale of its remaining shareholding in Thungela Resources TGAJ.J, completing its exit from the South African coal business. Under pressure from investors to exit coal businesses worldwide, the owner of gold, platinum and diamond mining companies, Anglo American hived off its entire stake in its South African coal mines into Thungela and distributed most of the shares to its shareholders through an initial public offering in June, barring 8%. The company listed at 25 rand per share in June.
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HARARE, March 25 (Reuters) - Global mining giant Anglo American Plc AAL.L on Friday announced the sale of its remaining shareholding in Thungela Resources TGAJ.J, completing its exit from the South African coal business. Under pressure from investors to exit coal businesses worldwide, the owner of gold, platinum and diamond mining companies, Anglo American hived off its entire stake in its South African coal mines into Thungela and distributed most of the shares to its shareholders through an initial public offering in June, barring 8%. Anglo said it sold its residual Thungela shareholding for 154 rand per share, realising gross proceeds of 1.67 billion rand ($115 million).
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HARARE, March 25 (Reuters) - Global mining giant Anglo American Plc AAL.L on Friday announced the sale of its remaining shareholding in Thungela Resources TGAJ.J, completing its exit from the South African coal business. Under pressure from investors to exit coal businesses worldwide, the owner of gold, platinum and diamond mining companies, Anglo American hived off its entire stake in its South African coal mines into Thungela and distributed most of the shares to its shareholders through an initial public offering in June, barring 8%. But rising coal prices turned the tables for Thungela and its shares are up six-fold in the last nine months.
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3703.0
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2022-03-24 00:00:00 UTC
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Airline CEOs Want The Biden Administration To Remove The "outdated" Mask Policy
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AAL
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https://www.nasdaq.com/articles/airline-ceos-want-the-biden-administration-to-remove-the-outdated-mask-policy
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nan
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nan
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(RTTNews) - The CEOs of major airlines in the US believe that the government should get rid of the mask mandates in the airports and planes. The chiefs believe that the country is beyond the requirement of masks as the threat of Covid has reduced.
In an open letter, sent to the Biden administration, published on Wednesday, the CEOs of American Airlines (AAL), Delta Airline(DAL), and United Airlines (UAL), and other major airline companies said, "Now is the time for the Administration to sunset federal transportation travel restrictions."
The administration extended its travel requirements for another 30 days this month which is to expire on April 18. The United States has been one of the worst-hit countries in the pandemic reporting the most number of cases and deaths. This has been reflected in the travel policies of the country. While the likes of the UK and France have dropped the requirement to test before boarding for the vaccinated individuals, the US is yet to normalize its procedures. The CEOs have argued that this has put the employees under continuous pressure.
"It is critical to recognize that the burden of enforcing both the mask and pre-departure testing requirements has fallen on our employees for two years now. This is not a function they are trained to perform and subjects them to daily challenges by frustrated customers. This, in turn, takes a toll on their own well-being." the letter added.
The CEOs have also added that the attendants have to deal with a number of cases where individuals do not want to wear face masks which lead to altercations. The heads now believe that the mandate is "outdated" and "no longer make sense in the current public health context."
"We are encouraged by the current data and the lifting of COVID-19 restrictions from coast to coast, which indicate it is past time to eliminate COVID-era transportation policies," concluded the letter. There have not been any comments from the administration on the subject.
The views and 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 an open letter, sent to the Biden administration, published on Wednesday, the CEOs of American Airlines (AAL), Delta Airline(DAL), and United Airlines (UAL), and other major airline companies said, "Now is the time for the Administration to sunset federal transportation travel restrictions." While the likes of the UK and France have dropped the requirement to test before boarding for the vaccinated individuals, the US is yet to normalize its procedures. "It is critical to recognize that the burden of enforcing both the mask and pre-departure testing requirements has fallen on our employees for two years now.
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In an open letter, sent to the Biden administration, published on Wednesday, the CEOs of American Airlines (AAL), Delta Airline(DAL), and United Airlines (UAL), and other major airline companies said, "Now is the time for the Administration to sunset federal transportation travel restrictions." (RTTNews) - The CEOs of major airlines in the US believe that the government should get rid of the mask mandates in the airports and planes. This has been reflected in the travel policies of the country.
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In an open letter, sent to the Biden administration, published on Wednesday, the CEOs of American Airlines (AAL), Delta Airline(DAL), and United Airlines (UAL), and other major airline companies said, "Now is the time for the Administration to sunset federal transportation travel restrictions." The CEOs have also added that the attendants have to deal with a number of cases where individuals do not want to wear face masks which lead to altercations. "We are encouraged by the current data and the lifting of COVID-19 restrictions from coast to coast, which indicate it is past time to eliminate COVID-era transportation policies," concluded the letter.
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In an open letter, sent to the Biden administration, published on Wednesday, the CEOs of American Airlines (AAL), Delta Airline(DAL), and United Airlines (UAL), and other major airline companies said, "Now is the time for the Administration to sunset federal transportation travel restrictions." This has been reflected in the travel policies of the country. There have not been any comments from the administration on the subject.
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3704.0
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2022-03-24 00:00:00 UTC
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S.Africa two-thirds of way to $100 bln investment goal -president
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AAL
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https://www.nasdaq.com/articles/s.africa-two-thirds-of-way-to-%24100-bln-investment-goal-president
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nan
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nan
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By Joe Bavier
JOHANNESBURG, March 24 (Reuters) - South Africa is close to reaching a five-year target for new investment, President Cyril Ramaphosa said on Thursday as he sought to drum up further backing for the pandemic hobbled economy.
In 2018 soon after coming to power, Ramaphosa set a goal to raise 1.4 trillion rand - or around $100 billion at the exchange rate at the time - to revitalise Africa's most developed economy following repeated recessions and years of anaemic growth.
The global pandemic, which temporarily shuttered swathes of the economy and helped push unemployment rates to record levels, has complicated those efforts. But speaking to an investment conference in Johannesburg, Ramaphosa said South Africa nonetheless remained an attractive investment destination.
"You see opportunities in this country. You see beyond the difficulties and the challenges," he told investors. "Your investments are making a difference in our country and our local communities."
The conference, which in part aims to sell foreign companies on South Africa's potential, brought in a total of 332 billion rand ($22.83 billion), bringing the total of new investment since 2018 to 1.14 trillion rand.
"We've now reached 95% of the ambitious target we set ourselves four years ago," Ramaphosa said.
MANUFACTURING, MINING, VACCINES
Ford Motor Co F.N has committed 16.4 billion rand that would enable it to produce its next generation Ranger pick-up in South Africa.
Mining companies, which were benefiting from favourable market conditions even before Russia's invasion of Ukraine sent prices soaring, are also boosting their South African operations.
Anglo American AAL.L plans to expand an existing 100 billion rand investment to put an additional 10 billion rand into the country this year. And Impala Platinum IMPJ.J pledged 11.8 billion rand to develop new mining and processing capacity.
With the pandemic, South Africa has sought to position itself as a vaccine manufacturing hub for the vastly underserved African continent, attracting investment from Pfizer PFE.N and South Africa's Biovac Institute and Aspen Pharmacare APNJ.J.
Netflix Inc NFLX.O meanwhile is investing 929 million rand for television and film production in South Africa's Gauteng and Western Cape provinces.
The African Development Bank (AfDB) is committing $2.8 billion over the next five years to support private sector investment in agriculture, renewable energy, transport, youth employment, health and vaccine manufacturing.
The bank is already supporting South Africa's struggling state-owned companies, and is currently preparing a $400 million loan package to assist coal-dependent power utility Eskom's transition to renewable energy.
($1 = 14.5431 rand)
(Reporting by Joe Bavier; Editing by Toby Chopra, Kirsten Donovan and Jonathan Oatis)
((joe.bavier@thomsonreuters.com; +27 664877766; Reuters Messaging: joe.bavier.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Anglo American AAL.L plans to expand an existing 100 billion rand investment to put an additional 10 billion rand into the country this year. By Joe Bavier JOHANNESBURG, March 24 (Reuters) - South Africa is close to reaching a five-year target for new investment, President Cyril Ramaphosa said on Thursday as he sought to drum up further backing for the pandemic hobbled economy. In 2018 soon after coming to power, Ramaphosa set a goal to raise 1.4 trillion rand - or around $100 billion at the exchange rate at the time - to revitalise Africa's most developed economy following repeated recessions and years of anaemic growth.
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Anglo American AAL.L plans to expand an existing 100 billion rand investment to put an additional 10 billion rand into the country this year. By Joe Bavier JOHANNESBURG, March 24 (Reuters) - South Africa is close to reaching a five-year target for new investment, President Cyril Ramaphosa said on Thursday as he sought to drum up further backing for the pandemic hobbled economy. But speaking to an investment conference in Johannesburg, Ramaphosa said South Africa nonetheless remained an attractive investment destination.
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Anglo American AAL.L plans to expand an existing 100 billion rand investment to put an additional 10 billion rand into the country this year. The conference, which in part aims to sell foreign companies on South Africa's potential, brought in a total of 332 billion rand ($22.83 billion), bringing the total of new investment since 2018 to 1.14 trillion rand. With the pandemic, South Africa has sought to position itself as a vaccine manufacturing hub for the vastly underserved African continent, attracting investment from Pfizer PFE.N and South Africa's Biovac Institute and Aspen Pharmacare APNJ.J.
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Anglo American AAL.L plans to expand an existing 100 billion rand investment to put an additional 10 billion rand into the country this year. By Joe Bavier JOHANNESBURG, March 24 (Reuters) - South Africa is close to reaching a five-year target for new investment, President Cyril Ramaphosa said on Thursday as he sought to drum up further backing for the pandemic hobbled economy. "You see opportunities in this country.
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3705.0
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2022-03-23 00:00:00 UTC
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U.S. airline CEOs urge Biden to lift COVID mask mandate -letter
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AAL
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https://www.nasdaq.com/articles/u.s.-airline-ceos-urge-biden-to-lift-covid-mask-mandate-letter-0
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nan
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nan
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By David Shepardson
WASHINGTON, March 23 (Reuters) - The chief executives of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and other carriers on Wednesday urged U.S. President Joe Biden to end a federal mask mandate on airplanes and international pre-departure testing requirements.
The airline executives, including the chairman of Southwest Airlines LUV.N and JetBlue's JBLU.O CEO, said in a letter the restrictions "are no longer aligned with the realities of the current epidemiological environment."
The Biden administration this month opted to extend current COVID-19 mask requirements at airports, train stations, ride share vehicles and other transit modes through April 18. The order was set to expire on March 18.
"It makes no sense that people are still required to wear masks on airplanes, yet are allowed to congregate in
crowded restaurants, schools and at sporting events without masks, despite none of these venues having the protective air filtration system that aircraft do," the airline letter said.
The White House declined to comment, but earlier this month said the Centers for Disease Control and Prevention (CDC) was working to help develop "a revised policy framework for when, and under what circumstances, masks should be required in the public transportation corridor."
Delta CEO Ed Bastian in a separate statement said "considering the improved public health metrics in the U.S. and medical advancements to prevent the worst outcomes of COVID-19, the federal mask mandate and pre-departure testing no longer fits with the current environment."
The letter also made reference to "thousands of airline employees charged with enforcing" the COVID rules.
The mask requirements have resulted in significant friction on airplanes. The Federal Aviation Administration says since January 2021, there have been a record 6,942 unruly passenger incidents reported - and 70% involved masking rules
Last week, the U.S. Senate voted 57 to 40 to overturn the 13-month-old public health order requiring masks on airplanes and other forms of public transportation, a move that drew a quick veto threat from Biden.
The mask mandate has drawn significant opposition from Republicans who noted the CDC says 99.5% of Americans live in places where it is safe to ditch indoor masks.
The letter cited the CDC data arguing "the science clearly supports lifting the mask mandate."
The 2021 CDC order said the mask mandate could help prevent the spread of COVID-19 in crowded transport settings.
(Reporting by David Shepardson Editing by Chris Reese and Bill Berkrot)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, March 23 (Reuters) - The chief executives of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and other carriers on Wednesday urged U.S. President Joe Biden to end a federal mask mandate on airplanes and international pre-departure testing requirements. The Biden administration this month opted to extend current COVID-19 mask requirements at airports, train stations, ride share vehicles and other transit modes through April 18. The White House declined to comment, but earlier this month said the Centers for Disease Control and Prevention (CDC) was working to help develop "a revised policy framework for when, and under what circumstances, masks should be required in the public transportation corridor."
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By David Shepardson WASHINGTON, March 23 (Reuters) - The chief executives of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and other carriers on Wednesday urged U.S. President Joe Biden to end a federal mask mandate on airplanes and international pre-departure testing requirements. Delta CEO Ed Bastian in a separate statement said "considering the improved public health metrics in the U.S. and medical advancements to prevent the worst outcomes of COVID-19, the federal mask mandate and pre-departure testing no longer fits with the current environment." The Federal Aviation Administration says since January 2021, there have been a record 6,942 unruly passenger incidents reported - and 70% involved masking rules Last week, the U.S. Senate voted 57 to 40 to overturn the 13-month-old public health order requiring masks on airplanes and other forms of public transportation, a move that drew a quick veto threat from Biden.
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By David Shepardson WASHINGTON, March 23 (Reuters) - The chief executives of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and other carriers on Wednesday urged U.S. President Joe Biden to end a federal mask mandate on airplanes and international pre-departure testing requirements. "It makes no sense that people are still required to wear masks on airplanes, yet are allowed to congregate in crowded restaurants, schools and at sporting events without masks, despite none of these venues having the protective air filtration system that aircraft do," the airline letter said. The Federal Aviation Administration says since January 2021, there have been a record 6,942 unruly passenger incidents reported - and 70% involved masking rules Last week, the U.S. Senate voted 57 to 40 to overturn the 13-month-old public health order requiring masks on airplanes and other forms of public transportation, a move that drew a quick veto threat from Biden.
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By David Shepardson WASHINGTON, March 23 (Reuters) - The chief executives of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and other carriers on Wednesday urged U.S. President Joe Biden to end a federal mask mandate on airplanes and international pre-departure testing requirements. The airline executives, including the chairman of Southwest Airlines LUV.N and JetBlue's JBLU.O CEO, said in a letter the restrictions "are no longer aligned with the realities of the current epidemiological environment." The 2021 CDC order said the mask mandate could help prevent the spread of COVID-19 in crowded transport settings.
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3706.0
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2022-03-23 00:00:00 UTC
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U.S. airline CEOs urge Biden to lift COVID mask mandate -letter
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AAL
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https://www.nasdaq.com/articles/u.s.-airline-ceos-urge-biden-to-lift-covid-mask-mandate-letter
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nan
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nan
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WASHINGTON, March 23 (Reuters) - The chief executives of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and other carriers on Wednesday urged U.S. President Joe Biden to end a federal mask mandate on airplanes and international pre-departure testing requirements.
The airline executives, including the chairman of Southwest Airlines LUV.N and JetBlue's JBLU.O CEO, said in a letter the restrictions "are no longer aligned with the realities of the current epidemiological environment."
The Biden administration this month opted to extend the mandate through April 18. It had been set to expire on March 18.
(Reporting by David Shepardson Editing by Chris Reese)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, March 23 (Reuters) - The chief executives of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and other carriers on Wednesday urged U.S. President Joe Biden to end a federal mask mandate on airplanes and international pre-departure testing requirements. The airline executives, including the chairman of Southwest Airlines LUV.N and JetBlue's JBLU.O CEO, said in a letter the restrictions "are no longer aligned with the realities of the current epidemiological environment." The Biden administration this month opted to extend the mandate through April 18.
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WASHINGTON, March 23 (Reuters) - The chief executives of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and other carriers on Wednesday urged U.S. President Joe Biden to end a federal mask mandate on airplanes and international pre-departure testing requirements. The airline executives, including the chairman of Southwest Airlines LUV.N and JetBlue's JBLU.O CEO, said in a letter the restrictions "are no longer aligned with the realities of the current epidemiological environment." (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, March 23 (Reuters) - The chief executives of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and other carriers on Wednesday urged U.S. President Joe Biden to end a federal mask mandate on airplanes and international pre-departure testing requirements. The airline executives, including the chairman of Southwest Airlines LUV.N and JetBlue's JBLU.O CEO, said in a letter the restrictions "are no longer aligned with the realities of the current epidemiological environment." (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, March 23 (Reuters) - The chief executives of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and other carriers on Wednesday urged U.S. President Joe Biden to end a federal mask mandate on airplanes and international pre-departure testing requirements. The airline executives, including the chairman of Southwest Airlines LUV.N and JetBlue's JBLU.O CEO, said in a letter the restrictions "are no longer aligned with the realities of the current epidemiological environment." The Biden administration this month opted to extend the mandate through April 18.
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3707.0
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2022-03-22 00:00:00 UTC
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7 Cheap Stocks to Buy Now if You Have $100 to Spend
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AAL
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https://www.nasdaq.com/articles/7-cheap-stocks-to-buy-now-if-you-have-%24100-to-spend
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The S&P 500 is off to a forgettable start this year, but that creates multiple buying opportunities if you’re looking for cheap stocks.
Savvy investors will want to pick up cheap stocks, which offer a healthy upside in the future. Luckily, the broad-based pullback has created an opportunity for investors to pick up multiple stocks with chump change.
Cheap stocks typically belong to undervalued companies with strong fundamentals but seem to have fallen out of favor with investors. Understanding investor sentiment can be tricky, and many high-potential stocks end up facing the short end of the stick.
9 Gold Stocks to Buy as Global Fears Rise
These cheap stocks have a combined value of less than $100. These companies have a robust outlook ahead and could potentially offer massive gains down the road.
Nokia (NYSE:NOK)
Newmark Group (NASDAQ:NMRK)
Telefónica (NYSE:TEF)
Ford (NYSE:F)
American Airlines (NASDAQ:AAL)
SoFi Technologies (NASDAQ:SOFI)
Viatris (NASDAQ:VTRS)
Cheap Stocks To Buy: Nokia (NOK)
Source: rafapress / Shutterstock.com
Finnish telecommunications giant Nokia has had to do a lot of soul searching in the past few years. However, it’s finally got a grip of where it wants to be by establishing itself as a top 5G play.
Though NOK stock has been a sluggish mover, it can offer healthy long-term returns if it can continue achieving its goals.
5G roll-out is expected to last significantly longer, and wireless access will grow by 100% into 2023. Therefore, Nokia can continue reaping the rewards of its investments for years to come. Moreover, the company has struck multiple deals with various entities globally, making it one of the most sought-after 5G companies.
Supply chain issues and other macro-economic headwinds are a concern, but are unlikely to stop its growth story.
Newmark Group (NMRK)
Source: Shutterstock
Newmark is a real estate services provider spun off from BGC Partners (NASDAQ:BGCP). Its products include loan sales, agency leasing, investment management, and other services.
The commercial real estate broker has been growing at a rapid pace of late. Its year-over-year expansion in its top and bottom lines is over 22%.
Inorganic growth has been a key reason for its remarkable performance. Moreover, its revenue base is highly diversified with a mix of diverse and recurring income streams. Hence, its business is remarkably solid and offers better prospects than its peers.
Telefónica (TEF)
Source: Sfio Cracho / Shutterstock.com
Telefonica is one of the top European and Latin American telecommunications providers with a multi-country focus. In many of its markets, it has established a dominant presence and is a market leader in some. Though there are reasons for the market abandoning TEF stock, it remains gross undervalued in many ways.
After selling off its European and South American towers to American Tower (NYSE:AMT) for roughly $9.41 billion in cash, the business has become more streamlined than ever before. American Tower has agreed to buy-out 30,772 tower sites, while Telefonica ill maintain current lease agreements in transmitting from those towers.
Nevertheless, the business has become asset-light and will enable the company to improve its fundamentals. Additionally, the Telco offers a superb dividend yield of over 7%.
Cheap Stocks To Buy: Ford (F)
Source: Jonathan Weiss / Shutterstock.com
Automobile giant Ford finds itself in unfamiliar territory as a cheap stock. However, the reality is that the going has been remarkably tough over the past year, marked by Covid-disruptions.
Ford’s business was affected immensely, but with the pandemic fade, things are looking more exciting in the future.
More importantly, it announced a bold reorganization by splitting into multiple business units. The goal is to unlock greater value for its investors and focus on its EV strategy. It plans to produce a whopping 2 million EVs in 2026 and anticipates a $3 billion in costs reduction from the reorganization efforts.
F stock looks like an exciting investment over the next few years.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
American Airlines was pulverized during the pandemic sparking bankruptcy concerns. However, it has bounced back well from industry headwinds and is now looking towards full recovery.
It expects leisure travel to encompass business travel soon, resulting in a massive revenue bump. Leisure travel sales have already topped 2019 levels and domestic revenues during the fourth quarter last year.
The Russia/Ukraine war and the resultant increase in oil prices have dampened investor sentiment, which will weigh down AAL stock in the interim. However, I expect AAL stock to start picking up the pace as soon as the macro-economic situation eases out.
SoFi Technologies (SOFI)
Source: Michael Vi / Shutterstock
SoFi Technologies is one of the hottest personal finance companies today. With its innovative offerings, its growth rates have soared late but unfortunately haven’t translated into share price gains.
In its most recent quarter, its sales grew by a fantastic 54%, along with an 84% growth in memberships. The company has increased its customer count by almost four times in the last two years.
More importantly, it recently received regulatory approval for its bank charter, which effectively allows it to cut out the middle man in its lending business. Consequently, analysts have bumped its revenue and earnings estimates by a considerable margin.
SOFI stock is perhaps the most exciting fintech investment at this time.
Cheap Stocks To Buy: Viatris (VTRS)
Source: Postmodern Studio / Shutterstock.com
Viatris is a top healthcare company specializing in prescription drugs, complex generic drugs, active pharma ingredients, biosimilars, and others. The business has performed exceptionally well of late, boasting double-digit growth in its sales and earnings.
In 2021, it reported a colossal increase in revenues to $17.8 billion, representing 51% from the prior year. Similarly, its free cash flows were robust, growing over 250% in 2020. Additionally, its EBITDA margins improved 132% on a year-over-year basis.
VTRS is likely to pay out quarterly dividends of 12 cents for every share, with a 9% increase from the previous year in the fiscal year 2022. Therefore, there is plenty to like about VTRS stock, and it’s best to scoop it up while it trades at a throw-away price.
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 7 Cheap Stocks to Buy Now if You Have $100 to Spend 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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The Russia/Ukraine war and the resultant increase in oil prices have dampened investor sentiment, which will weigh down AAL stock in the interim. Nokia (NYSE:NOK) Newmark Group (NASDAQ:NMRK) Telefónica (NYSE:TEF) Ford (NYSE:F) American Airlines (NASDAQ:AAL) SoFi Technologies (NASDAQ:SOFI) Viatris (NASDAQ:VTRS) Cheap Stocks To Buy: Nokia (NOK) Source: rafapress / Shutterstock.com Finnish telecommunications giant Nokia has had to do a lot of soul searching in the past few years. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines was pulverized during the pandemic sparking bankruptcy concerns.
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Nokia (NYSE:NOK) Newmark Group (NASDAQ:NMRK) Telefónica (NYSE:TEF) Ford (NYSE:F) American Airlines (NASDAQ:AAL) SoFi Technologies (NASDAQ:SOFI) Viatris (NASDAQ:VTRS) Cheap Stocks To Buy: Nokia (NOK) Source: rafapress / Shutterstock.com Finnish telecommunications giant Nokia has had to do a lot of soul searching in the past few years. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines was pulverized during the pandemic sparking bankruptcy concerns. The Russia/Ukraine war and the resultant increase in oil prices have dampened investor sentiment, which will weigh down AAL stock in the interim.
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Nokia (NYSE:NOK) Newmark Group (NASDAQ:NMRK) Telefónica (NYSE:TEF) Ford (NYSE:F) American Airlines (NASDAQ:AAL) SoFi Technologies (NASDAQ:SOFI) Viatris (NASDAQ:VTRS) Cheap Stocks To Buy: Nokia (NOK) Source: rafapress / Shutterstock.com Finnish telecommunications giant Nokia has had to do a lot of soul searching in the past few years. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines was pulverized during the pandemic sparking bankruptcy concerns. The Russia/Ukraine war and the resultant increase in oil prices have dampened investor sentiment, which will weigh down AAL stock in the interim.
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Nokia (NYSE:NOK) Newmark Group (NASDAQ:NMRK) Telefónica (NYSE:TEF) Ford (NYSE:F) American Airlines (NASDAQ:AAL) SoFi Technologies (NASDAQ:SOFI) Viatris (NASDAQ:VTRS) Cheap Stocks To Buy: Nokia (NOK) Source: rafapress / Shutterstock.com Finnish telecommunications giant Nokia has had to do a lot of soul searching in the past few years. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines was pulverized during the pandemic sparking bankruptcy concerns. The Russia/Ukraine war and the resultant increase in oil prices have dampened investor sentiment, which will weigh down AAL stock in the interim.
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3708.0
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2022-03-22 00:00:00 UTC
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S.African coal miner Thungela turns first profit of 6.9 bln rand
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AAL
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https://www.nasdaq.com/articles/s.african-coal-miner-thungela-turns-first-profit-of-6.9-bln-rand
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nan
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Adds details
HARARE, March 22 (Reuters) - Stronger coal prices and better cost management helped South Africa's Thungela Resources post a full year profit of 6.9 billion rand ($461.02 million) on Tuesday, having been demerged from the Anglo American Plc AAL.L last year.
Thungela's headline earnings per share (HEPS) - the main profit measure in South Africa - was 66.57 rand for the year ended Dec.31, up from a loss per share of 5.31 rand the previous year.
The company, which listed on the Johannesburg Stock Exchange last year, declared a dividend of 18 rand per share.
Thungela was demerged from the Anglo American Plc AAL.L group in June 2021, as part of the global mining giant's transition away from thermal coal.
The global economy's recovery from COVID-19 in 2021 spurred demand for energy, including thermal coal, with prices reaching a peak in October 2021.
Prices of thermal coal, mainly used to generate electricity, have been driven even higher due to increased buying by Europe as sanctions on Russia have cut off the bulk of its gas supplies.
Like most miners, Thungela has warned that rising inflationary pressures, driven by price increases for consumables, would push production costs higher this year.
It also said rail logistical challenges would impact output.
($1 = 14.9669 rand)
(Reporting by Nelson Banya Editing by Promit Mukherjee and Helen Reid and Simon Cameron-Moore)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Thungela was demerged from the Anglo American Plc AAL.L group in June 2021, as part of the global mining giant's transition away from thermal coal. Adds details HARARE, March 22 (Reuters) - Stronger coal prices and better cost management helped South Africa's Thungela Resources post a full year profit of 6.9 billion rand ($461.02 million) on Tuesday, having been demerged from the Anglo American Plc AAL.L last year. Prices of thermal coal, mainly used to generate electricity, have been driven even higher due to increased buying by Europe as sanctions on Russia have cut off the bulk of its gas supplies.
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Adds details HARARE, March 22 (Reuters) - Stronger coal prices and better cost management helped South Africa's Thungela Resources post a full year profit of 6.9 billion rand ($461.02 million) on Tuesday, having been demerged from the Anglo American Plc AAL.L last year. Thungela was demerged from the Anglo American Plc AAL.L group in June 2021, as part of the global mining giant's transition away from thermal coal. Thungela's headline earnings per share (HEPS) - the main profit measure in South Africa - was 66.57 rand for the year ended Dec.31, up from a loss per share of 5.31 rand the previous year.
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Adds details HARARE, March 22 (Reuters) - Stronger coal prices and better cost management helped South Africa's Thungela Resources post a full year profit of 6.9 billion rand ($461.02 million) on Tuesday, having been demerged from the Anglo American Plc AAL.L last year. Thungela was demerged from the Anglo American Plc AAL.L group in June 2021, as part of the global mining giant's transition away from thermal coal. Thungela's headline earnings per share (HEPS) - the main profit measure in South Africa - was 66.57 rand for the year ended Dec.31, up from a loss per share of 5.31 rand the previous year.
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Adds details HARARE, March 22 (Reuters) - Stronger coal prices and better cost management helped South Africa's Thungela Resources post a full year profit of 6.9 billion rand ($461.02 million) on Tuesday, having been demerged from the Anglo American Plc AAL.L last year. Thungela was demerged from the Anglo American Plc AAL.L group in June 2021, as part of the global mining giant's transition away from thermal coal. Thungela's headline earnings per share (HEPS) - the main profit measure in South Africa - was 66.57 rand for the year ended Dec.31, up from a loss per share of 5.31 rand the previous year.
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3709.0
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2022-03-21 00:00:00 UTC
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Why ExxonMobil Stock Popped, But Delta and American Airlines Dropped
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AAL
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https://www.nasdaq.com/articles/why-exxonmobil-stock-popped-but-delta-and-american-airlines-dropped
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nan
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What happened
Shares of oil giant ExxonMobil (NYSE: XOM) jumped 4.5% through the close of trading Monday, while Delta Air Lines (NYSE: DAL) fell 4.2% and American Airlines (NASDAQ: AAL) declined 3.9%.
It's no huge mystery why: Oil prices went up -- so airline stocks went down.
So what
Over the course of the trading day, the price of West Texas Intermediate crude oil jumped 7.5% to $112.50 per barrel, while Brent crude oil rose 8% to close Monday at $116.60 per barrel.
According to their 2021 annual reports, fuel costs made up about 20% of Delta's expenses last year and 24% of American's -- and that was in 2021, a year when jet fuel generally cost less than $2 a gallon. In 2022, prices are exploding higher, and if things keep going in the direction they've been heading, investors can expect that fuel costs will make up an even larger percentage of operating costs at U.S. airlines this year, worsening American Airlines' losses and potentially pushing Delta Air Lines back into a loss.
US Refiner Price of Kerosene-Type Jet Fuel to End Users data by YCharts.
Now what
High fuel costs are generally good news for oil suppliers like ExxonMobil. This year, analysts polled by S&P Global Market Intelligence forecast that the oil giant could earn the most profit it's had in a decade -- nearly $8 a share. Things may go less well for airlines like Delta and America, however, as they struggle to work their way back toward profitability after two years of the coronavirus pandemic ravaged their profit statements.
Image source: Getty Images.
Already, airlines are talking about ways to mitigate the damage to their profits. As Delta Air Lines CEO Ed Bastian told the BBC last week, U.S. airlines' ticket prices may need to increase between 5% and 10% this year, in order to counteract the cost increases from rising oil prices. That works out to "probably about $25 on a ticket" for a domestic flight -- but more on longer international flights.
The danger there, of course, is that higher prices may not be enough to totally offset higher fuel costs, and may also tend to depress demand. What with travelers still often leery of flying due to Covid-19, and the potential for rising case numbers in Europe to depress demand for travel even further, the last thing these airlines needed right now was a spike in the cost of fuel.
No wonder airline investors were selling today.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of oil giant ExxonMobil (NYSE: XOM) jumped 4.5% through the close of trading Monday, while Delta Air Lines (NYSE: DAL) fell 4.2% and American Airlines (NASDAQ: AAL) declined 3.9%. In 2022, prices are exploding higher, and if things keep going in the direction they've been heading, investors can expect that fuel costs will make up an even larger percentage of operating costs at U.S. airlines this year, worsening American Airlines' losses and potentially pushing Delta Air Lines back into a loss. This year, analysts polled by S&P Global Market Intelligence forecast that the oil giant could earn the most profit it's had in a decade -- nearly $8 a share.
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What happened Shares of oil giant ExxonMobil (NYSE: XOM) jumped 4.5% through the close of trading Monday, while Delta Air Lines (NYSE: DAL) fell 4.2% and American Airlines (NASDAQ: AAL) declined 3.9%. So what Over the course of the trading day, the price of West Texas Intermediate crude oil jumped 7.5% to $112.50 per barrel, while Brent crude oil rose 8% to close Monday at $116.60 per barrel. In 2022, prices are exploding higher, and if things keep going in the direction they've been heading, investors can expect that fuel costs will make up an even larger percentage of operating costs at U.S. airlines this year, worsening American Airlines' losses and potentially pushing Delta Air Lines back into a loss.
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What happened Shares of oil giant ExxonMobil (NYSE: XOM) jumped 4.5% through the close of trading Monday, while Delta Air Lines (NYSE: DAL) fell 4.2% and American Airlines (NASDAQ: AAL) declined 3.9%. In 2022, prices are exploding higher, and if things keep going in the direction they've been heading, investors can expect that fuel costs will make up an even larger percentage of operating costs at U.S. airlines this year, worsening American Airlines' losses and potentially pushing Delta Air Lines back into a loss. As Delta Air Lines CEO Ed Bastian told the BBC last week, U.S. airlines' ticket prices may need to increase between 5% and 10% this year, in order to counteract the cost increases from rising oil prices.
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What happened Shares of oil giant ExxonMobil (NYSE: XOM) jumped 4.5% through the close of trading Monday, while Delta Air Lines (NYSE: DAL) fell 4.2% and American Airlines (NASDAQ: AAL) declined 3.9%. According to their 2021 annual reports, fuel costs made up about 20% of Delta's expenses last year and 24% of American's -- and that was in 2021, a year when jet fuel generally cost less than $2 a gallon. In 2022, prices are exploding higher, and if things keep going in the direction they've been heading, investors can expect that fuel costs will make up an even larger percentage of operating costs at U.S. airlines this year, worsening American Airlines' losses and potentially pushing Delta Air Lines back into a loss.
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3710.0
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2022-03-21 00:00:00 UTC
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FACTBOX-Details of crashed Boeing 737-800 and China Eastern Airlines
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AAL
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https://www.nasdaq.com/articles/factbox-details-of-crashed-boeing-737-800-and-china-eastern-airlines
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nan
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Gives full name of ariline in headline
WASHINGTON, March 21 (Reuters) - Here are some facts about the Boeing BA.N 737-800 jet and China Eastern Airlines 600115.SS, involved in a crash on a domestic flight on Monday with 132 people on board.
BOEING 737-800
The Boeing 737-800 is part of the 737 family, the world's most-flown commercial aircraft series. It was developed in the 1960s to serve short- or medium-length routes.
The 737-800 is part of the 737 NG or Next-Generation family - with more than 7,000 delivered since 1993 - and it has a strong safety record after nearly three decades of flights. The 162- to 189-seat 737-800 was launched on Sept. 5, 1994. The NG is the predecessor to the 737 MAX.
The MAX was grounded worldwide for 20 months after two fatal crashes killed 346. It remains grounded in China.
The jet involved in the China Eastern accident, en route from the southwestern city of Kunming, capital of Yunnan province, to Guangzhou, capital of Guangdong province, was six years old, according to Flightradar24.
In the United States, American Airlines AAL.O has the most 737-800s in operation with 265 followed by Southwest Airlines LUV.N with 205 and United Airlines with 136, according to Cirium data.
The last fatal 737-800 crash occurred in August 2020 when an Air India Express plane overshot the table-top runway and crashed while landing at Calicut International Airport in the southern state of Kerala in heavy rain, killing 21. A government report cited pilot error as the probable cause.
CHINA
China's airline safety record has been among the best in the world for a decade but is less transparent than in countries like the United States and Australia where regulators release detailed reports on non-fatal incidents.
According to Aviation Safety Network, China's last fatal jet accident was in 2010, when 44 of 96 people on board were killed when an Embraer E-190 regional jet flown by Henan Airlines crashed on approach to Yichun airport.
In 1994, a China Northwest Airlines Tupolev Tu-154 crashed en route from Xian to Guangzhou, killing all 160 on board in China's worst-ever air disaster, according to Aviation Safety Network.
Monday's disaster was the first fatal crash for China Eastern since 2004, when a plane crashed shortly after it took off from an airport in north China, killing 55, according to ASN.
Shanghai-based China Eastern was created in 1988 and is one of the largest three airlines in China, with one of the youngest fleet of planes.
It is part of the SkyTeam Alliance and U.S. carrier Delta Air Lines DAL.N holds a 2% stake. China Eastern has ranked in recent years among the ten largest carriers in total passengers carried. Delta has "a strategic joint marketing and commercial cooperation arrangement covering traffic flows between China and the U.S."
Passenger traffic between China and the United States has declined dramatically since the COVID-19 pandemic.
(Reporting by David Shepardson and Rajesh Kumar Singh; Editing by Nick Macfie)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the United States, American Airlines AAL.O has the most 737-800s in operation with 265 followed by Southwest Airlines LUV.N with 205 and United Airlines with 136, according to Cirium data. Gives full name of ariline in headline WASHINGTON, March 21 (Reuters) - Here are some facts about the Boeing BA.N 737-800 jet and China Eastern Airlines 600115.SS, involved in a crash on a domestic flight on Monday with 132 people on board. China's airline safety record has been among the best in the world for a decade but is less transparent than in countries like the United States and Australia where regulators release detailed reports on non-fatal incidents.
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In the United States, American Airlines AAL.O has the most 737-800s in operation with 265 followed by Southwest Airlines LUV.N with 205 and United Airlines with 136, according to Cirium data. Gives full name of ariline in headline WASHINGTON, March 21 (Reuters) - Here are some facts about the Boeing BA.N 737-800 jet and China Eastern Airlines 600115.SS, involved in a crash on a domestic flight on Monday with 132 people on board. According to Aviation Safety Network, China's last fatal jet accident was in 2010, when 44 of 96 people on board were killed when an Embraer E-190 regional jet flown by Henan Airlines crashed on approach to Yichun airport.
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In the United States, American Airlines AAL.O has the most 737-800s in operation with 265 followed by Southwest Airlines LUV.N with 205 and United Airlines with 136, according to Cirium data. According to Aviation Safety Network, China's last fatal jet accident was in 2010, when 44 of 96 people on board were killed when an Embraer E-190 regional jet flown by Henan Airlines crashed on approach to Yichun airport. In 1994, a China Northwest Airlines Tupolev Tu-154 crashed en route from Xian to Guangzhou, killing all 160 on board in China's worst-ever air disaster, according to Aviation Safety Network.
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In the United States, American Airlines AAL.O has the most 737-800s in operation with 265 followed by Southwest Airlines LUV.N with 205 and United Airlines with 136, according to Cirium data. The MAX was grounded worldwide for 20 months after two fatal crashes killed 346. According to Aviation Safety Network, China's last fatal jet accident was in 2010, when 44 of 96 people on board were killed when an Embraer E-190 regional jet flown by Henan Airlines crashed on approach to Yichun airport.
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3711.0
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2022-03-21 00:00:00 UTC
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UPS to pay $5.3 million to resolve U.S. international mail probe
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AAL
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https://www.nasdaq.com/articles/ups-to-pay-%245.3-million-to-resolve-u.s.-international-mail-probe
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nan
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WASHINGTON, March 21 (Reuters) - United Parcel Service Inc UPS.N (UPS) has agreed to pay $5.3 million to settle claims it falsely reported delivery times for U.S. Mail carried internationally, the Justice Department said Monday.
The U.S. Postal Service contracted with UPS to pick up U.S. mail at six locations in the United States and at various Department of Defense and State Department locations abroad. This is the fifth civil settlement involving air carrier liability for false delivery scans and the United States has recovered more than $70 million, including prior settlements with United Airlines UAL.O and American Airlines AAL.O.
(Reporting by David Shepardson)
((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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This is the fifth civil settlement involving air carrier liability for false delivery scans and the United States has recovered more than $70 million, including prior settlements with United Airlines UAL.O and American Airlines AAL.O. WASHINGTON, March 21 (Reuters) - United Parcel Service Inc UPS.N (UPS) has agreed to pay $5.3 million to settle claims it falsely reported delivery times for U.S. Mail carried internationally, the Justice Department said Monday. Postal Service contracted with UPS to pick up U.S. mail at six locations in the United States and at various Department of Defense and State Department locations abroad.
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This is the fifth civil settlement involving air carrier liability for false delivery scans and the United States has recovered more than $70 million, including prior settlements with United Airlines UAL.O and American Airlines AAL.O. WASHINGTON, March 21 (Reuters) - United Parcel Service Inc UPS.N (UPS) has agreed to pay $5.3 million to settle claims it falsely reported delivery times for U.S. Mail carried internationally, the Justice Department said Monday. Postal Service contracted with UPS to pick up U.S. mail at six locations in the United States and at various Department of Defense and State Department locations abroad.
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This is the fifth civil settlement involving air carrier liability for false delivery scans and the United States has recovered more than $70 million, including prior settlements with United Airlines UAL.O and American Airlines AAL.O. WASHINGTON, March 21 (Reuters) - United Parcel Service Inc UPS.N (UPS) has agreed to pay $5.3 million to settle claims it falsely reported delivery times for U.S. Mail carried internationally, the Justice Department said Monday. Postal Service contracted with UPS to pick up U.S. mail at six locations in the United States and at various Department of Defense and State Department locations abroad.
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This is the fifth civil settlement involving air carrier liability for false delivery scans and the United States has recovered more than $70 million, including prior settlements with United Airlines UAL.O and American Airlines AAL.O. WASHINGTON, March 21 (Reuters) - United Parcel Service Inc UPS.N (UPS) has agreed to pay $5.3 million to settle claims it falsely reported delivery times for U.S. Mail carried internationally, the Justice Department said Monday. Postal Service contracted with UPS to pick up U.S. mail at six locations in the United States and at various Department of Defense and State Department locations abroad.
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3712.0
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2022-03-18 00:00:00 UTC
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First Week of November 18th Options Trading For American Airlines Group (AAL)
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AAL
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https://www.nasdaq.com/articles/first-week-of-november-18th-options-trading-for-american-airlines-group-aal
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the November 18th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 245 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 November 18th contracts and identified one put and one call contract of particular interest.
The put contract at the $14.00 strike price has a current bid of $1.86. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $14.00, but will also collect the premium, putting the cost basis of the shares at $12.14 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $16.50/share today.
Because the $14.00 strike represents an approximate 15% 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 74%. 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 13.29% return on the cash commitment, or 19.79% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $14.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $17.00 strike price has a current bid of $2.92. If an investor was to purchase shares of AAL stock at the current price level of $16.50/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $17.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 20.73% if the stock gets called away at the November 18th 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 $17.00 strike highlighted in red:
Considering the fact that the $17.00 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 44%. 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 17.70% boost of extra return to the investor, or 26.36% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 64%, while the implied volatility in the call contract example is 58%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $16.50) 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 $17.00 strike highlighted in red: Considering the fact that the $17.00 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 become available this week, for the November 18th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $17.00 strike highlighted in red: Considering the fact that the $17.00 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 become available this week, for the November 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new November 18th 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 $17.00 strike highlighted in red: Considering the fact that the $17.00 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 become available this week, for the November 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new November 18th 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 November 18th 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 $17.00 strike highlighted in red: Considering the fact that the $17.00 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 become available this week, for the November 18th expiration.
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3713.0
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2022-03-18 00:00:00 UTC
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U.S. booking sites seeing strong demand for 2022 travel
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AAL
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https://www.nasdaq.com/articles/u.s.-booking-sites-seeing-strong-demand-for-2022-travel
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nan
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nan
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By Doyinsola Oladipo
March 18 (Reuters) - U.S. booking sites including Vrbo, Hopper and KAYAK are seeing higher demand for spring and summer leisure travel as COVID-19 restrictions ease and travelers appear to be shrugging off added costs to plane tickets and road trips from rising fuel prices.
"We are seeing strong booking activity for spring break and the beginnings of a very strong summer," said Jamie Lane, VP of research at AirDNA, which tracks the daily performance of over 10 million properties on vacation rental firms Airbnb and Vrbo.
Oil has soared over $100 a barrel as Russia's invasion of Ukraine jolted global markets. But U.S. carriers including Delta Air Lines Inc DAL.N, United Airline Holdings Inc UAL.N and American Airlines Inc AAL.O this week reported a strong rebound in travel demand after the blip caused by the Omicron coronavirus variant.
AirDNA data said the booking pace for travel in the northern hemisphere spring is 49% higher than this time last year, and 26% higher than pre-pandemic 2019.
"The rush to book summer vacation homes has further accelerated in 2022," said Vrbo in a statement earlier this month. The vacation rental booking platform reports demand for properties is already outpacing last summer by 15%.
"When reviewing the booking data, it's clear that Omicron was a bigger concern for travelers than rising fuel costs," said Dakota Smith, Chief Strategy Officer at Hopper, a travel booking app.
The app, which is popular among younger travelers, has seen a 50% increase in travel booking since fourth-quarter 2021.
Airline carriers are counting on strong demand to deal with the rising fuel costs. Some airlines intend to pass along a majority of that increase to customers.
"As gas prices reach record highs, jet fuel prices may not be far behind... this summer travel season may be a pricey one," said Paul Jacobs, GM and VP of KAYAK North America. Flight prices were up 17% last week compared to the same week in 2019, according to KAYAK.
The rising fuel costs will have less impact on domestic and short-haul flights, though, and indications are that the pandemic-era preference from U.S. travelers for those trips is continuing, and may remain while the war in Ukraine drags on, said Hopper's Smith.
Hopper said U.S. bookings to Europe have dropped from 21% of Hopper's international bookings to 15% since Feb. 12, with international bookings shifting toward Mexico, Central America and the Caribbean. These locations now represent 61% of Hopper's international bookings, according to Smith. Europe accounted for approximately 30% of Hopper's international bookings in 2019.
Business travel and travel to urban locations has yet to recover to pre-pandemic levels, according to AirDNA.
Investors will also get another view on the recovery of leisure travel when Carnival Corp CCL.N reports earnings on Tuesday. Carnival on average is expected to post a loss of $1.21 a share, while revenue soars to over $2 billion, according to data from Refinitiv.
(Reporting by Doyinsola Oladipo, Editing by Rosalba O'Brien)
((Doyinsola.Oladipo@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But U.S. carriers including Delta Air Lines Inc DAL.N, United Airline Holdings Inc UAL.N and American Airlines Inc AAL.O this week reported a strong rebound in travel demand after the blip caused by the Omicron coronavirus variant. By Doyinsola Oladipo March 18 (Reuters) - U.S. booking sites including Vrbo, Hopper and KAYAK are seeing higher demand for spring and summer leisure travel as COVID-19 restrictions ease and travelers appear to be shrugging off added costs to plane tickets and road trips from rising fuel prices. The rising fuel costs will have less impact on domestic and short-haul flights, though, and indications are that the pandemic-era preference from U.S. travelers for those trips is continuing, and may remain while the war in Ukraine drags on, said Hopper's Smith.
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But U.S. carriers including Delta Air Lines Inc DAL.N, United Airline Holdings Inc UAL.N and American Airlines Inc AAL.O this week reported a strong rebound in travel demand after the blip caused by the Omicron coronavirus variant. By Doyinsola Oladipo March 18 (Reuters) - U.S. booking sites including Vrbo, Hopper and KAYAK are seeing higher demand for spring and summer leisure travel as COVID-19 restrictions ease and travelers appear to be shrugging off added costs to plane tickets and road trips from rising fuel prices. The vacation rental booking platform reports demand for properties is already outpacing last summer by 15%.
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But U.S. carriers including Delta Air Lines Inc DAL.N, United Airline Holdings Inc UAL.N and American Airlines Inc AAL.O this week reported a strong rebound in travel demand after the blip caused by the Omicron coronavirus variant. By Doyinsola Oladipo March 18 (Reuters) - U.S. booking sites including Vrbo, Hopper and KAYAK are seeing higher demand for spring and summer leisure travel as COVID-19 restrictions ease and travelers appear to be shrugging off added costs to plane tickets and road trips from rising fuel prices. "When reviewing the booking data, it's clear that Omicron was a bigger concern for travelers than rising fuel costs," said Dakota Smith, Chief Strategy Officer at Hopper, a travel booking app.
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But U.S. carriers including Delta Air Lines Inc DAL.N, United Airline Holdings Inc UAL.N and American Airlines Inc AAL.O this week reported a strong rebound in travel demand after the blip caused by the Omicron coronavirus variant. By Doyinsola Oladipo March 18 (Reuters) - U.S. booking sites including Vrbo, Hopper and KAYAK are seeing higher demand for spring and summer leisure travel as COVID-19 restrictions ease and travelers appear to be shrugging off added costs to plane tickets and road trips from rising fuel prices. "When reviewing the booking data, it's clear that Omicron was a bigger concern for travelers than rising fuel costs," said Dakota Smith, Chief Strategy Officer at Hopper, a travel booking app.
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3714.0
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2022-03-18 00:00:00 UTC
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American Airlines To Resume Alcohol Sales On Certain Flights
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-resume-alcohol-sales-on-certain-flights
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nan
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nan
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(RTTNews) - American Airlines Group Inc. said it will resume selling alcoholic beverages on certain domestic and short-haul international flights starting April. The airline is also bringing back buy-on-board food, starting with chips and almonds.
The company had stopped alcohol sales and other onboard food services in 2020 to minimize flight attendants' interaction with customers amid spread of coronavirus.
Though the company had planned to return alcohol sales last year, the decision was delayed following increasing unruly passenger behaviors and assaults on flight attendants.
For the same reason, Southwest Airlines too had postponed serving alcohol last spring. The airline later resumed it in February this year.
The U.S. carrier is now planning to bring back sales of beer, wine and spirits in its domestic coach cabins starting April 18, when the current federal mask mandate in public transportation expires. Sales of alcoholic beverages will be available on the flights longer than 250 miles. At present, it is complimentary on American's long-haul international flights and in first class.
CNBC reported that the company is not raising prices compared to pre-pandemic time. Spirits and wine servings are available for $9, while beer will be available for $8.
The airline's buy-on-board food service will start with flights longer than 1,500 miles, which comes to about three-and-a-half hours. The company also plans to start offering touchless ordering later this year.
American in February had announced the return of hot meals to first class on many domestic flights.
In January last year, the airline had launched Flagship Cellars - its home delivery service for premium wines usually available onboard. The move reportedly was due to excess wine it has following the suspension of in-flight alcohol sales amid the weakness in air travel demand.
The views and 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 company had stopped alcohol sales and other onboard food services in 2020 to minimize flight attendants' interaction with customers amid spread of coronavirus. Though the company had planned to return alcohol sales last year, the decision was delayed following increasing unruly passenger behaviors and assaults on flight attendants. The U.S. carrier is now planning to bring back sales of beer, wine and spirits in its domestic coach cabins starting April 18, when the current federal mask mandate in public transportation expires.
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(RTTNews) - American Airlines Group Inc. said it will resume selling alcoholic beverages on certain domestic and short-haul international flights starting April. The U.S. carrier is now planning to bring back sales of beer, wine and spirits in its domestic coach cabins starting April 18, when the current federal mask mandate in public transportation expires. The airline's buy-on-board food service will start with flights longer than 1,500 miles, which comes to about three-and-a-half hours.
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(RTTNews) - American Airlines Group Inc. said it will resume selling alcoholic beverages on certain domestic and short-haul international flights starting April. The company had stopped alcohol sales and other onboard food services in 2020 to minimize flight attendants' interaction with customers amid spread of coronavirus. Though the company had planned to return alcohol sales last year, the decision was delayed following increasing unruly passenger behaviors and assaults on flight attendants.
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(RTTNews) - American Airlines Group Inc. said it will resume selling alcoholic beverages on certain domestic and short-haul international flights starting April. The company had stopped alcohol sales and other onboard food services in 2020 to minimize flight attendants' interaction with customers amid spread of coronavirus. The airline later resumed it in February this year.
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3715.0
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2022-03-18 00:00:00 UTC
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Unusual Options Activity in American Airlines Group (AAL) and Enova International (ENVA), and Quadruple Witching
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AAL
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https://www.nasdaq.com/articles/unusual-options-activity-in-american-airlines-group-aal-and-enova-international-enva-and
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nan
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Unusual Options Activity in American Airlines Group Inc. (AAL)
Today, March 18, 2022, in the NasdaqGS, there was unusual or noteworthy options trading activity in American Airlines Group Inc. (AAL), which opened at $16.35.
There were a series of orders on the $19 strike call option dated for April 14, 2022, traded at the ask of $0.35 with a bid-ask spread of $0.32 to $0.35.
The open interest on this chain was approximately 6,321 contracts open and the overall volume is now approximately 7,298, implying that a non-zero amount of these transactions are indeed being bought or sold to open, not closed.
Seen above are the noteworthy options in American Airlines from the Unusual Whales options order flow.
Additionally, these orders come after American Airlines said it will resume selling alcoholic beverages on certain domestic and short-haul international flights starting April.
Seen above are the noteworthy options in American Airlines from the NEW Unusual Whales hottest chains tool.
Furthermore, these orders were also spotted on the NEW Unusual Whales hottest chains tool. As seen, the contracts had an acceleration factor of 0.99, implying there was a rapid increase in trading activity over open interest on this chain.
Seen above is the aforementioned chain’s historical volume, in red, and open interest, in blue, as bar charts behind the requisite bid and ask, in a light blue and darker shade, respectively.
As stated, the volume on this chain has now increased in excess over the open interest, so some of these contracts must have been bought or sold to open, not to close.
To view more information about AAL's daily flow breakdown, click here to visit unusualwhales.com.
Unusual Options Activity in Enova International, Inc. (ENVA)
In the NYSE, there was unusual or noteworthy options trading activity in Enova International, Inc. (ENVA), which opened today at $36.55.
There were a series of above-ask orders on the $40 strike call options dated for June 17, 2022.
The overall volume on this chain has been approximately 2K and the open interest on the chain is 50; therefore, it may be intuited that these orders are being either bought or sold to open, not to close.
As stated, these trades were above the ask, at a spot price of $2.65 and the bid-ask spread of $2.10 to $2.60.
Additionally, these orders come after Zacks asked: “Is Enova International (ENVA) Stock Undervalued Right Now?”
Seen above are the noteworthy options in Enova from the NEW Unusual Whales flow alerts tool.
A tip from the flow: When viewing alerts in the Unusual Whales flow alerts page, you can click “Link to flow” to view chain’s activity in the overall options order flow, as seen here:
Seen above are the noteworthy options in Enova from the Unusual Whales flow.
These orders continued to trickle in at varying sizes, from a single contract to 88 or more and all of them were above the ask of $2.60 at the time of order entry.
To view more information about ENVA's flow breakdown, click here to visit unusualwhales.com.
Witching Days
Witching days occur once a quarter, (typically) on the third Friday of March, June, September, and December. These days are regularly occurring and are not anything nefarious in spite of their names--and those names are dependent upon the number of simultaneous expiration dates that are stacked on the date:
Quadruple Witching
On quadruple witchings, all of the following expire simultaneously:
stock options
stock index options
single stock futures
and stock index futures
Triple witchings occur when three of the above expire simultaneously.
Double witchings are when two of the above expire simultaneously.
Witching Hour
Prior to the close on a witching day, there is an increase in volume in trading as traders are rolling their contracts to further out dates, closing positions outright, and opening new positions altogether.
Be mindful! There is a considerable increase in volatility up into witching days. To some, there are "arbitrage opportunities" by trading this volatility.
Risk of Exercise & Assignment
Prior to witchings, market makers and brokers alike will require shares to cover their positions and their clients' positions; therefore, brokers have the right (and responsibility) to exercise existing contracts to obtain those shares in order to keep the markets operational.
Please be careful holding contracts through witching days unless you are taking advantage of those "arbitrage" opportunities yourself!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unusual Options Activity in American Airlines Group Inc. (AAL) Today, March 18, 2022, in the NasdaqGS, there was unusual or noteworthy options trading activity in American Airlines Group Inc. (AAL), which opened at $16.35. To view more information about AAL's daily flow breakdown, click here to visit unusualwhales.com. There were a series of orders on the $19 strike call option dated for April 14, 2022, traded at the ask of $0.35 with a bid-ask spread of $0.32 to $0.35.
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Unusual Options Activity in American Airlines Group Inc. (AAL) Today, March 18, 2022, in the NasdaqGS, there was unusual or noteworthy options trading activity in American Airlines Group Inc. (AAL), which opened at $16.35. To view more information about AAL's daily flow breakdown, click here to visit unusualwhales.com. A tip from the flow: When viewing alerts in the Unusual Whales flow alerts page, you can click “Link to flow” to view chain’s activity in the overall options order flow, as seen here: Seen above are the noteworthy options in Enova from the Unusual Whales flow.
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Unusual Options Activity in American Airlines Group Inc. (AAL) Today, March 18, 2022, in the NasdaqGS, there was unusual or noteworthy options trading activity in American Airlines Group Inc. (AAL), which opened at $16.35. To view more information about AAL's daily flow breakdown, click here to visit unusualwhales.com. A tip from the flow: When viewing alerts in the Unusual Whales flow alerts page, you can click “Link to flow” to view chain’s activity in the overall options order flow, as seen here: Seen above are the noteworthy options in Enova from the Unusual Whales flow.
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Unusual Options Activity in American Airlines Group Inc. (AAL) Today, March 18, 2022, in the NasdaqGS, there was unusual or noteworthy options trading activity in American Airlines Group Inc. (AAL), which opened at $16.35. To view more information about AAL's daily flow breakdown, click here to visit unusualwhales.com. Seen above are the noteworthy options in American Airlines from the Unusual Whales options order flow.
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3716.0
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2022-03-17 00:00:00 UTC
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U.S. taps GM, Oracle, airline CEOs for Homeland Security advisory panel
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AAL
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https://www.nasdaq.com/articles/u.s.-taps-gm-oracle-airline-ceos-for-homeland-security-advisory-panel
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nan
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nan
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March 17 (Reuters) - The U.S. Homeland Security Department said Thursday it was naming the chief executives of General Motors GM.N, United Airlines UAL.O American Airlines AAL.O, Bank of America BAC.N, Oracle ORCL.N and others to an advisory council.
Secretary Alejandro Mayorkas said he was adding 33 members in advance of the council's first meeting set for Monday, which is tasked with helping "define the department’s strategic vision, strengthen the department to better meet the increasingly dynamic and rapidly evolving threat landscape, and harness technology and innovation to modernize the programs it administers."
Others being named include the chief executives of Polaris PII.N and Chobani LLC.
(Reporting by David Shepardson, Editing by Franklin Paul)
((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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Homeland Security Department said Thursday it was naming the chief executives of General Motors GM.N, United Airlines UAL.O American Airlines AAL.O, Bank of America BAC.N, Oracle ORCL.N and others to an advisory council. Secretary Alejandro Mayorkas said he was adding 33 members in advance of the council's first meeting set for Monday, which is tasked with helping "define the department’s strategic vision, strengthen the department to better meet the increasingly dynamic and rapidly evolving threat landscape, and harness technology and innovation to modernize the programs it administers." Others being named include the chief executives of Polaris PII.N and Chobani LLC.
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Homeland Security Department said Thursday it was naming the chief executives of General Motors GM.N, United Airlines UAL.O American Airlines AAL.O, Bank of America BAC.N, Oracle ORCL.N and others to an advisory council. Secretary Alejandro Mayorkas said he was adding 33 members in advance of the council's first meeting set for Monday, which is tasked with helping "define the department’s strategic vision, strengthen the department to better meet the increasingly dynamic and rapidly evolving threat landscape, and harness technology and innovation to modernize the programs it administers." Others being named include the chief executives of Polaris PII.N and Chobani LLC.
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Homeland Security Department said Thursday it was naming the chief executives of General Motors GM.N, United Airlines UAL.O American Airlines AAL.O, Bank of America BAC.N, Oracle ORCL.N and others to an advisory council. Secretary Alejandro Mayorkas said he was adding 33 members in advance of the council's first meeting set for Monday, which is tasked with helping "define the department’s strategic vision, strengthen the department to better meet the increasingly dynamic and rapidly evolving threat landscape, and harness technology and innovation to modernize the programs it administers." (Reporting by David Shepardson, Editing by Franklin Paul) ((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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Homeland Security Department said Thursday it was naming the chief executives of General Motors GM.N, United Airlines UAL.O American Airlines AAL.O, Bank of America BAC.N, Oracle ORCL.N and others to an advisory council. March 17 (Reuters) - The U.S. Secretary Alejandro Mayorkas said he was adding 33 members in advance of the council's first meeting set for Monday, which is tasked with helping "define the department’s strategic vision, strengthen the department to better meet the increasingly dynamic and rapidly evolving threat landscape, and harness technology and innovation to modernize the programs it administers."
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3717.0
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2022-03-17 00:00:00 UTC
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Airline Stock Roundup: Bullish Q1 Revenue Views by DAL, UAL & Others, CPA in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-bullish-q1-revenue-views-by-dal-ual-others-cpa-in-focus
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nan
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nan
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In the past week, key airline players like American Airlines AAL, Delta Air Lines DAL, United Airlines UAL and Southwest Airlines LUV provided impressive projections (on the revenue front owing to strong air-travel demand) for the first quarter of 2022 at the J.P. Morgan Industrials Conference.
At the same time, they reduced their respective capacity projections mainly due to high fuel costs as oil price moves north. Latin American carrier Copa Holdings CPA was also in news, courtesy of its February traffic report.
Read the last Airline Roundup here.
Recap of the Latest Top Stories
1. American Airlines, currently carrying a Zacks Rank #3 (Hold), now expects its first-quarter revenues to decline roughly 17% from the first-quarter 2019 actuals, better than its previous outlook of a 20-22% fall. AAL decreased its first-quarter capacity growth outlook. The metric is expected to be down 10-12% from the 8-10% decline, anticipated earlier. First-quarter non-fuel unit cost is now expected to be up approximately 11-13% from the earlier projection of an approximate 8-10% increase. Fuel price per gallon is now expected in the $2.73-$2.78 range compared with the $2.41-$2.46 band anticipated earlier. Current-year and next year’s capexes are projected to be $2.7 billion and $2.9 billion, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Delta now expects March-quarter revenues to be 78% of the first-quarter 2019 actuals compared with the prior expectation of revenues being in the 72-76% range. Driven by strong air-travel demand in spring and summer, DAL expects to generate positive free cash flow in first-quarter 2022. Moreover, DAL expects pre-tax profit in March with high fuel costs being negated by stronger revenues. However, DAL still expects to incur a pre-tax loss in the March quarter. With oil price escalating, Delta now anticipates an adjusted fuel price of $2.80 per gallon compared with the previously expected range of $2.35-$2.50. Capacity in the March quarter is now expected to be roughly 83% of the first-quarter 2019 actuals (earlier expectation was in the 83-85% range). Also, Delta’s management did not announce any new fuel surcharges in this era of rising fuel costs.
3. Per United Airlines’ management, air-travel demand was better than expected after the peak period of omicron cases. As a result of this strong demand scenario, bookings (systemwide) for travel have improved nearly 40 points since the first week of 2022. In another positive update, UAL management confirmed that business traffic has increased in excess of 30 points since the peak of the Omicron impact in January. UAL now expects first-quarter 2022 total operating revenues to be near the better end of the previous projection of a decline in the 20-25% range from the first-quarter 2019 reading.
United Airlines now expects first-quarter 2022 capacity to be down approximately 19% from the first-quarter 2019 actuals. The same is compared with the prior projection of a 16-18% decline. The guidance was lowered by the omicron-led woes earlier this year and more flight cancellations due to the ongoing geopolitical tensions. As a result of lower capacity, UAL now expects first-quarter 2022 non-fuel unit costs to increase roughly 18% from the first-quarter 2019 finals from the previous guidance of an increase between 14% and 15%. In response rising oil prices, UAL now expects its fuel price per gallon to be approximately $2.99 for first-quarter 2022 compared with $2.51 expected earlier. Capacity for the current year is expected to be down in high-single digits from the 2019 levels.
4. Like other carriers, Southwest Airlines issued a better first-quarter 2022 revenue outlook. LUV now expects first-quarter operating revenues to be 8-10% below the first-quarter 2019 levels. The same is better than the prior anticipation of a 10-15% fall. Capacity is expected to be down 9-10% from the first-quarter 2019 actuals. The same indicates a marginal decrease from the earlier expectation of a 9% decline. Non-fuel unit costs are now expected to increase in the 20-24% range from the first quarter 2019 actuals (previous guidance called for an increase in the 17-21% range). Due to LUV’s multi-year fuel hedging program aimed at providing insurance against spikes in jet fuel prices like the current scenario, the fuel cost per gallon guidance stays the same between $2.25 and $2.35. Load factor (% of seats filled by passengers) is still expected in the 75-80% band.
5. Copa Holdings’ traffic, measured in revenue passenger miles (RPMs), declined 13% to 1.42 billion in February 2022 from the comparable period’s reading in 2019. The downside was primarily due to the coronavirus-led lower air-travel demand than the pre-pandemic levels (2019). Due to tepid demand, capacity, measured in available seat miles (ASMs), fell 9.8% from the 2019 level to 1.76 billion. With traffic declining more than the amount of capacity contraction, load factor deteriorated 290 basis points to 80.7% in February.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that almost all airline stocks have traded in the green over the past week. This upside was owing to the impressive revenue projections for the March quarter. The NYSE ARCA Airline Index has increased 7.6% to $75.39. Over the past six months, the NYSE ARCA Airline Index has declined 18.5%.
What's Next in the Airline Space?
Stay tuned for the usual news updates on this domain.
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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
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past week, key airline players like American Airlines AAL, Delta Air Lines DAL, United Airlines UAL and Southwest Airlines LUV provided impressive projections (on the revenue front owing to strong air-travel demand) for the first quarter of 2022 at the J.P. Morgan Industrials Conference. AAL decreased its first-quarter capacity growth outlook. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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In the past week, key airline players like American Airlines AAL, Delta Air Lines DAL, United Airlines UAL and Southwest Airlines LUV provided impressive projections (on the revenue front owing to strong air-travel demand) for the first quarter of 2022 at the J.P. Morgan Industrials Conference. AAL decreased its first-quarter capacity growth outlook. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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In the past week, key airline players like American Airlines AAL, Delta Air Lines DAL, United Airlines UAL and Southwest Airlines LUV provided impressive projections (on the revenue front owing to strong air-travel demand) for the first quarter of 2022 at the J.P. Morgan Industrials Conference. AAL decreased its first-quarter capacity growth outlook. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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In the past week, key airline players like American Airlines AAL, Delta Air Lines DAL, United Airlines UAL and Southwest Airlines LUV provided impressive projections (on the revenue front owing to strong air-travel demand) for the first quarter of 2022 at the J.P. Morgan Industrials Conference. AAL decreased its first-quarter capacity growth outlook. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3718.0
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2022-03-17 00:00:00 UTC
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American Airlines (AAL) Gains But Lags Market: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-gains-but-lags-market%3A-what-you-should-know-0
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nan
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American Airlines (AAL) closed the most recent trading day at $16.55, moving +0.49% from the previous trading session. This change lagged the S&P 500's 1.24% gain on the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.15%.
Prior to today's trading, shares of the world's largest airline had lost 12.49% over the past month. This has lagged the Transportation sector's loss of 0.05% and the S&P 500's loss of 2.45% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$2.45, up 43.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.38 billion, up 109.17% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.26 per share and revenue of $42.37 billion. These results would represent year-over-year changes of +73.03% and +41.8%, respectively.
Investors might also notice recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.69% lower within the past month. American Airlines is currently a Zacks Rank #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and 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 $16.55, moving +0.49% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.26 per share and revenue of $42.37 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed the most recent trading day at $16.55, moving +0.49% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.26 per share and revenue of $42.37 billion.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed the most recent trading day at $16.55, moving +0.49% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.26 per share and revenue of $42.37 billion.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed the most recent trading day at $16.55, moving +0.49% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.26 per share and revenue of $42.37 billion.
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3719.0
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2022-03-16 00:00:00 UTC
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Airline Stocks Make Merry in Tuesday's Trading: Here's Why
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AAL
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https://www.nasdaq.com/articles/airline-stocks-make-merry-in-tuesdays-trading%3A-heres-why
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nan
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The health of airline stocks (with respect to the bottom line) has always been inversely proportional to the movement of oil price. Consequently, the recent surge in oil price fueled by the invasion of Ukraine by Russia does not bode well for the airlines. In fact, oil price went through the roof on Mar 7, touching the highest level since 2008.
Amid this gloom for the aviation stocks due to the spike in one of their main input costs, Mar 15’s trading brought cheers to airline investors. The catalyst was the impressive projections (particularly on the revenue front owing to strong air-travel demand) issued by key players like American Airlines AAL, Delta Air Lines DAL, United Airlines UAL, Southwest Airlines LUV and JetBlue Airways JBLU at the J.P. Morgan Industrials Conference.
The upbeat revenue projections resulted in shares of American Airlines, Delta, United Airlines, Southwest Airlines and JetBlue gaining 9.26%, 8.7%, 9.19%, 4.89% and 7.22%, respectively, on Mar 15 from the Mar 14 closing. With the constituents gaining, the NYSE ARCA Airline Index moved 5.57% northward on the day.
The Projections
Expecting to report higher revenues than originally estimated, Delta gave a bullish revenue update for the first quarter. DAL now expects March-quarter revenues to be 78% of the first-quarter 2019 actuals compared with the prior expectation of revenues being in the 72-76% range. Driven by strong air-travel demand in spring and summer, DAL expects to generate positive free cash flow in first-quarter 2022. Moreover, DAL expects pre-tax profit in March with high fuel costs being negated by stronger revenues.
However, DAL still expects to generate a pre-tax loss in the March quarter. With oil price escalating, Delta now anticipates an adjusted fuel price of $2.80 per gallon compared with the previously expected range of $2.35-$2.50. Capacity in the March quarter is now expected to be to be roughly 83% of the first-quarter 2019 actuals (earlier expectation was in the 83-85% range). Also, Delta’s management did not announce any new fuel surcharges in this era of rising fuel costs.
Per United Airlines’ management, air-travel demand was better than expected after the peak period of omicron cases. As a result of the strong demand scenario, bookings (systemwide) for travel have improved nearly 40 points since the first week of 2022. In another positive update, UAL management said that business traffic has increased in excess of 30 points since the peak of the Omicron impact in January. UAL now expects first-quarter 2022 total operating revenues to be near the better end of previous projection of a decline in the 20-25% range from the first-quarter 2019 reading.
United Airlines, currently carrying a Zacks Rank #3 (Hold), now expects first-quarter 2022 capacity to be down approximately 19% from the first-quarter 2019 actuals. The same is compared with the prior projection of a 16-18% decline. The guidance decreased due to the omicron-led woes earlier this year and more flight cancellations due to the ongoing geopolitical tensions. As a result of lower capacity, UAL now expects first-quarter 2022 non-fuel unit costs to increase roughly 18% from the first-quarter 2019 finals, compared with the previous guidance of an increase between 14% and 15%. In response to factors like rising oil price, UAL now expects its fuel price per gallon to be approximately $2.99 for first-quarter 2022 compared with $2.51 expected earlier. Capacity for the current year is expected to be down in high-single digits from the 2019 levels.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Airlines now expects its first-quarter revenues to decline roughly 17% from first-quarter 2019 actuals, better than its previous outlook of a 20-22% fall. Like other carriers, AAL decreased its first-quarter capacity growth outlook. The metric is expected to be down 10-12% from the 8-10% decline anticipated earlier. First-quarter non-fuel unit cost is now expected to be up approximately 11-13% compared with the earlier projection of up approximately 8-10%. Fuel price per gallon is now expected in the $2.73-$2.78 range from the $2.41-$2.46 band anticipated earlier.
Also due to the strong demand scenario, Southwest Airlines now expects first-quarter operating revenues to be 8-10% below the first-quarter 2019 levels. The same is better than the prior anticipation of a 10-15% fall. Capacity is expected to be down 9-10% from the first-quarter 2019 actuals. The same indicates a marginal decrease from the earlier expectation of a 9% decline.
Like other airlines, JetBlue raised its revenue guidance while reducing its capacity outlook for first-quarter 2022 due to increasing oil price. JBLU now expects revenues to decline in the 6-9% band compared with an 11-16% decrease expected earlier. Capacity is expected to dip 1% from first-quarter 2019 actuals. The same is compared with the earlier expectation of a range of 1% decline to an increase of up to 2%.
The bullish projections for revenues by the leading carriers in the United States highlight the fact that air-travel demand is well on its way to recovery from the coronavirus woes. This leads us to believe that U.S. airlines are likely to put up a better-than-expected performance at least on the revenue front in first-quarter 2022. Moreover, with the summer season ahead, which usually mark a hectic phase for the U.S. airlines, their top lines are likely to be further augmented.
5 Stocks Set to Double
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
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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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The catalyst was the impressive projections (particularly on the revenue front owing to strong air-travel demand) issued by key players like American Airlines AAL, Delta Air Lines DAL, United Airlines UAL, Southwest Airlines LUV and JetBlue Airways JBLU at the J.P. Morgan Industrials Conference. Like other carriers, AAL decreased its first-quarter capacity growth outlook. American Airlines Group Inc. (AAL): Free Stock Analysis Report
|
The catalyst was the impressive projections (particularly on the revenue front owing to strong air-travel demand) issued by key players like American Airlines AAL, Delta Air Lines DAL, United Airlines UAL, Southwest Airlines LUV and JetBlue Airways JBLU at the J.P. Morgan Industrials Conference. Like other carriers, AAL decreased its first-quarter capacity growth outlook. American Airlines Group Inc. (AAL): Free Stock Analysis Report
|
The catalyst was the impressive projections (particularly on the revenue front owing to strong air-travel demand) issued by key players like American Airlines AAL, Delta Air Lines DAL, United Airlines UAL, Southwest Airlines LUV and JetBlue Airways JBLU at the J.P. Morgan Industrials Conference. Like other carriers, AAL decreased its first-quarter capacity growth outlook. American Airlines Group Inc. (AAL): Free Stock Analysis Report
|
The catalyst was the impressive projections (particularly on the revenue front owing to strong air-travel demand) issued by key players like American Airlines AAL, Delta Air Lines DAL, United Airlines UAL, Southwest Airlines LUV and JetBlue Airways JBLU at the J.P. Morgan Industrials Conference. Like other carriers, AAL decreased its first-quarter capacity growth outlook. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3720.0
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2022-03-16 00:00:00 UTC
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Royal Caribbean’s Trip to $100 Remains Murky Amid Market Chaos
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AAL
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https://www.nasdaq.com/articles/royal-caribbeans-trip-to-%24100-remains-murky-amid-market-chaos
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Royal Caribbean (NYSE:RCL) stock is still suffering from the pandemic shock and for good reason. The pandemic was extremely disruptive to global commerce, especially the travel and leisure businesses. While we are at the tail end of it, the threat of outbreak headlines to some companies still lingers. Before the pandemic, Royal Caribbean was firing on all cylinders when its business died almost instantaneously. But just like its competitors, RCL didn’t contribute to its woes by making mistakes itself. The whole sector collapsed at once.
Source: NAN728 / Shutterstock.com
Although we have to give Royal Caribbean props for surviving the pandemic, it certainly won’t be smooth sailing from here. Too much of a good thing can sometimes be bad. In this case, the crash of 2020 was unavoidable. But the rally back in RCL stock that followed that year was illogical.
I understand liking a stock, but not blindly. It was clear early on that Royal Caribbean’s business would be in peril for a while. If investors had stopped after only a 265% return, not a 425%-plus return, then they would be around today’s price level.
Instead, RCL rallied too much and failed at a very contentious spot. Specifically, RCL stock traders have been fighting over the $100 mark since 2015. They failed at this level in the past, but have used it as support since 2018. Now it is a lid that the bulls will need a miracle to help pop open. I doubt that they can do this without a significant change in sales. This is a tall task, but Royal Caribbean is getting back on track.
RCL Stock Fundamentals Are in Shambles
Source: Charts by TradingView
The fundamentals are not simple because of continuing pandemic-related disruptions. Under normal circumstances, it’s easy to be bullish toward the business because people who cruise tend to continue being fans of the activity. RCL has been dealing with outbreak headlines for ages. But I’m assuming that outbreak news in the future will take a much different tone than before Covid-19. Moving forward, outbreak headlines could have abnormally negative repercussions on cruise stocks for a while.
7 Artificial Intelligence Stocks Under $10 for Your Watch List
The profit and loss metrics offer us little help, because they still reflect the closures. Total revenues are $1.5 billion; whereas, in 2019 they were almost $11 billion.
However, the more dangerous number is the $5 billion yearly net loss. It is hard to sustain this without a massive increase in sales to normalize metrics a bit. I worry that management will need to borrow to operate. Currently the cash flow from operations is still a loss of $1.9 billion. That’s a heavy burden. This limits what RCL can do in order to spruce up sales.
From a technical perspective, RCL stock has support below $67 per share. It has temporarily gone below that, but the buyers have saved it. But they have also been unwilling to sustain the rallies and they have failed to convincingly exceed $85. Now it has established a trading range that is likely to be here for a while.
Therefore, Royal Caribbean investors need to have a long-term horizon. There’s also no need to add to current positions until we learn more about the variables in play.
Bottom Line on Royal Caribbean
The economy is fine and it will survive the Federal Reserve rate hike cycle. With a bit of help from the indices, Royal Caribbean stock might even crack into three digits. But first RCL shares must struggle with the resistance around $90 per share. If it goes above $100 per share, the stock could overshoot another 20% from there.
While looking up is exciting, I also must be careful about the downside potential. Remember that the stock can fall through no fault of its own, just like it did in February 2020. The complete collapse did not happen because the stock didn’t look good. The threat was a surprise and completely independent of its own business developments. Therefore, investors need tone down their level of enthusiasm.
There are currently too many variables in limbo. As such, you should consider diversifying your risks. For example, it would be good to avoid RCL stock if long companies like Boeing (NYSE:BA) or American Airlines (NASDAQ:AAL). The three often move in unison, so it would be like tripling up on the downfall if things go south.
On the date of publication, Nicolas Chahine 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 Royal Caribbean’s Trip to $100 Remains Murky Amid Market Chaos 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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For example, it would be good to avoid RCL stock if long companies like Boeing (NYSE:BA) or American Airlines (NASDAQ:AAL). Bottom Line on Royal Caribbean The economy is fine and it will survive the Federal Reserve rate hike cycle. The post Royal Caribbean’s Trip to $100 Remains Murky Amid Market Chaos appeared first on InvestorPlace.
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For example, it would be good to avoid RCL stock if long companies like Boeing (NYSE:BA) or American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Royal Caribbean (NYSE:RCL) stock is still suffering from the pandemic shock and for good reason. Before the pandemic, Royal Caribbean was firing on all cylinders when its business died almost instantaneously.
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For example, it would be good to avoid RCL stock if long companies like Boeing (NYSE:BA) or American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Royal Caribbean (NYSE:RCL) stock is still suffering from the pandemic shock and for good reason. But the rally back in RCL stock that followed that year was illogical.
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For example, it would be good to avoid RCL stock if long companies like Boeing (NYSE:BA) or American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Royal Caribbean (NYSE:RCL) stock is still suffering from the pandemic shock and for good reason. Currently the cash flow from operations is still a loss of $1.9 billion.
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3721.0
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2022-03-15 00:00:00 UTC
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Stock Market Today: Stocks Jolted Awake as Oil Enters Bear Market
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-stocks-jolted-awake-as-oil-enters-bear-market
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nan
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nan
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Another precipitous decline in oil prices, as well as hints of an easing in other inflationary pressures, managed to snap losing streaks across the major indexes Tuesday.
U.S. crude oil futures continued their recent dive, shedding 6.4% to $96.44 per barrel – enough to put the commodity into bear-market territory from its March 8 highs. Oil was dragged down by ongoing peace talks between Ukraine and Russia, as well as a surge in China's COVID-19 caseload, which could spark additional shutdowns that could reduce demand.
SEE MORE The 22 Best Stocks to Buy for 2022
Also Tuesday, the Bureau of Labor Statistics reported that February's U.S. producer prices increased 0.8% month-over-month (10% year-over-year), coming in slightly less hot than expectations for 0.9% growth.
"Prices excluding food, energy and trade rose only modestly, suggesting some easing in core inflation," says Barclays economist Pooja Sriram. However, she warns the relief might be short-lived.
"We expect to see increased momentum in food prices going ahead, due to the disruption in food supply caused by the Ukraine-Russia conflict. Energy prices are also likely to contribute solidly to both producer and consumer price pressures in the near term given the swings in oil prices."
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After a dismal Monday session, tech stocks (+3.4%) and consumer discretionary companies (+3.4%) were out in front of Tuesday's rally. The Nasdaq soared 2.9% higher to 12,948, followed by the S&P 500 (+2.1% to 4,262) and Dow (+1.8% to 33,544).
YCharts
Other news in thestock market today
The small-cap Russell 2000 rallied 1.4% to 1,968.
Gold futures retreated 1.6% to end at $1,929.70 an ounce.
Bitcoin advanced 2.4% to $39,767.28. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
AMC Entertainment (AMC) shot up 6.8% today after the movie chain said it agreed to buy a $27.9-million stake in Denver-based gold miner Hycroft Mining Holding (HYMC). This works out to roughy 23.4 million HYMC shares and will give AMC an approximately 22% stake in the company. The news sparked major volatility in HYMC stock, which ended the day up 9.4% after nearly doubling at one point, AMC Entertainment CEO Adam Aron was scheduled to discuss the purchase on CNBC, but cancelled due to the wild volume in Hycroft shares today. "To state the obvious, one would not normally think that a movie theatre company’s core competency includes gold or silver mining," Aron said in AMC's press release. "In recent years, however, AMC Entertainment has had enormous success and demonstrated expertise in guiding a company with otherwise valuable assets through a time of severe liquidity challenge, the raising of capital, and strengthening of balance sheets, as well as communicating with individual retail investors. It is all that experience and skill that we bring to the table to assist the talented mining professionals at Hycroft."
Airline stocks caught a bid today after several of the major carriers said bookings came in ahead of expectations, signaling increased travel demand. Delta Air Lines (DAL) jumped 8.7% after saying bookings are outpacing its 2019 numbers, while United Airlines (UAL, +9.2%) and American Airlines (AAL, +9.3%) also ended the day higher.
A Case for Small Caps
Many corners of the market are going to hinge sharply on how Russia's invasion of Ukraine plays out. But one area that might be set up for success either way is small-cap stocks.
SEE MORE 15 Mighty Mid-Cap Stocks to Buy for 2022
Small caps have been severely beaten up since November, and the Russell 2000 Index of small companies has been in bear-market territory for more than a month. But BofA sees several reasons to be rosier on these stocks.
For one, they're a relative bargain compared to large caps, even after perking up from historical discounts a month ago. And Jill Carey Hall, head of U.S. Small/Mid Cap Strategy for BofA Securities, says that "while geopolitical conflict is typically a short-term negative for equities … we would continue to prefer domestically-oriented U.S. small caps over large caps in the current backdrop.
"History suggests that small caps outperformed on a cumulative basis over the full Cold War period, and saw particularly strong outperformance during the 1970s/early 80s," she adds.
Investors looking to dive right in might consider these 12 top small-cap stocks for 2022. But if the risk of investing in small individual companies seems a little high, you can always spread it over hundreds or even thousands of companies via small-cap exchange-traded funds (ETFs). These 10 small-cap ETFs in particular provide a wealth of ways to leverage companies that sport little market capitalizations, but mighty growth potential.
SEE MORE Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta Air Lines (DAL) jumped 8.7% after saying bookings are outpacing its 2019 numbers, while United Airlines (UAL, +9.2%) and American Airlines (AAL, +9.3%) also ended the day higher. SEE MORE The 22 Best Stocks to Buy for 2022 Also Tuesday, the Bureau of Labor Statistics reported that February's U.S. producer prices increased 0.8% month-over-month (10% year-over-year), coming in slightly less hot than expectations for 0.9% growth. The news sparked major volatility in HYMC stock, which ended the day up 9.4% after nearly doubling at one point, AMC Entertainment CEO Adam Aron was scheduled to discuss the purchase on CNBC, but cancelled due to the wild volume in Hycroft shares today.
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Delta Air Lines (DAL) jumped 8.7% after saying bookings are outpacing its 2019 numbers, while United Airlines (UAL, +9.2%) and American Airlines (AAL, +9.3%) also ended the day higher. U.S. crude oil futures continued their recent dive, shedding 6.4% to $96.44 per barrel – enough to put the commodity into bear-market territory from its March 8 highs. The news sparked major volatility in HYMC stock, which ended the day up 9.4% after nearly doubling at one point, AMC Entertainment CEO Adam Aron was scheduled to discuss the purchase on CNBC, but cancelled due to the wild volume in Hycroft shares today.
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Delta Air Lines (DAL) jumped 8.7% after saying bookings are outpacing its 2019 numbers, while United Airlines (UAL, +9.2%) and American Airlines (AAL, +9.3%) also ended the day higher. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) AMC Entertainment (AMC) shot up 6.8% today after the movie chain said it agreed to buy a $27.9-million stake in Denver-based gold miner Hycroft Mining Holding (HYMC). The news sparked major volatility in HYMC stock, which ended the day up 9.4% after nearly doubling at one point, AMC Entertainment CEO Adam Aron was scheduled to discuss the purchase on CNBC, but cancelled due to the wild volume in Hycroft shares today.
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Delta Air Lines (DAL) jumped 8.7% after saying bookings are outpacing its 2019 numbers, while United Airlines (UAL, +9.2%) and American Airlines (AAL, +9.3%) also ended the day higher. YCharts Other news in thestock market today The small-cap Russell 2000 rallied 1.4% to 1,968. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) AMC Entertainment (AMC) shot up 6.8% today after the movie chain said it agreed to buy a $27.9-million stake in Denver-based gold miner Hycroft Mining Holding (HYMC).
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3722.0
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2022-03-15 00:00:00 UTC
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Tuesday Sector Leaders: Airlines, Education & Training Services
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AAL
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https://www.nasdaq.com/articles/tuesday-sector-leaders%3A-airlines-education-training-services
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nan
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nan
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In trading on Tuesday, airlines shares were relative leaders, up on the day by about 4%. Leading the group were shares of American Airlines Group, up about 9.7% and shares of United Airlines Holdings up about 9.1% on the day.
Also showing relative strength are education & training services shares, up on the day by about 3.8% as a group, led by New Oriental Education & Technology Group, trading higher by about 18.6% and Adtalem Global Education, trading higher by about 7.1% on Tuesday.
VIDEO: Tuesday Sector Leaders: Airlines, Education & Training Services
The views and 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 trading on Tuesday, airlines shares were relative leaders, up on the day by about 4%. Also showing relative strength are education & training services shares, up on the day by about 3.8% as a group, led by New Oriental Education & Technology Group, trading higher by about 18.6% and Adtalem Global Education, trading higher by about 7.1% on Tuesday. VIDEO: Tuesday Sector Leaders: Airlines, Education & Training Services The views and 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 trading on Tuesday, airlines shares were relative leaders, up on the day by about 4%. Also showing relative strength are education & training services shares, up on the day by about 3.8% as a group, led by New Oriental Education & Technology Group, trading higher by about 18.6% and Adtalem Global Education, trading higher by about 7.1% on Tuesday. VIDEO: Tuesday Sector Leaders: Airlines, Education & Training Services The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Leading the group were shares of American Airlines Group, up about 9.7% and shares of United Airlines Holdings up about 9.1% on the day. Also showing relative strength are education & training services shares, up on the day by about 3.8% as a group, led by New Oriental Education & Technology Group, trading higher by about 18.6% and Adtalem Global Education, trading higher by about 7.1% on Tuesday. VIDEO: Tuesday Sector Leaders: Airlines, Education & Training Services The views and 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 trading on Tuesday, airlines shares were relative leaders, up on the day by about 4%. Leading the group were shares of American Airlines Group, up about 9.7% and shares of United Airlines Holdings up about 9.1% on the day. Also showing relative strength are education & training services shares, up on the day by about 3.8% as a group, led by New Oriental Education & Technology Group, trading higher by about 18.6% and Adtalem Global Education, trading higher by about 7.1% on Tuesday.
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3723.0
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2022-03-15 00:00:00 UTC
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U.S. carriers lean on 'unparalleled' travel demand to offset higher fuel costs
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AAL
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https://www.nasdaq.com/articles/u.s.-carriers-lean-on-unparalleled-travel-demand-to-offset-higher-fuel-costs
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nan
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nan
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By Rajesh Kumar Singh, Abhijith Ganapavaram and Kate Holton
March 15 (Reuters) - U.S. carriers on Tuesday lifted revenue outlook for the quarter through March as falling COVID-19 cases drive up travel demand, but trimmed their capacity plans in response to higher fuel costs.
Atlanta-based Delta Air Lines Inc DAL.N said last week it saw the highest ticket sales in the company's history due to an "unparalleled" increase in demand.
"We've not seen a stronger demand ... in my career," Chief Executive Ed Bastian said.
Rival United Airlines Holdings UAL.O said leisure demand is "very strong" and business traffic is rebounding more quickly than expected.
Shares of major U.S. airlines were up between 5% and 10% in midday trade.
Carriers are counting on strong demand to deal with fuel costs, which have surged after Russia's invasion of Ukraine, which Moscow has termed a "special military operation."
Fuel is their second-biggest expense after labor, but major U.S. airlines do not hedge against volatile oil prices like most European airlines. The industry typically looks to offset fuel costs with higher fares.
Tammy Romo, chief financial officer at Southwest Airlines LUV.N, told an investor conference that the pricing environment has been healthy. The Texas-based carrier has raised its fares.
Similarly, American Airlines AAL.O said the improvement in revenue is expected to more than offset the increases in fuel and other expenses in the current quarter.
The company, however, cut its capacity for the current quarter, which is now estimated to be down 10% to 12% compared with the same period in 2019.
Delta Air, United Airlines Holdings UAL.O, Southwest and JetBlue Airways JBLU.O have also tempered their capacity expectations.
Lower capacity at a time when travel demand is robust is expected to further drive up ticket prices and help soften the blow from higher fuel costs.
Bastian said he was not at "a point of nervousness" about rising oil prices. Delta expects its fares would offset fuel costs in the second quarter.
While Russia's invasion of Ukraine has forced the closure of vast swaths of airspace, Bastian said Delta has not seen any impact on bookings for flights to Europe.
Delta expects first-quarter adjusted revenue to recover to about 78% of the pre-pandemic level, compared with 72% to 76% estimated earlier.
United Airlines Holdings Inc said it expects quarterly revenue to be near the higher end of its forecast. Southwest and JetBlue also expect an improvement in their revenue.
(Reporting by Rajesh Kumar Singh in Chicago, Abhijith Ganapavaram in Bengaluru and Kate Holton in London; Additional reporting by Nathan Gomes in Bengaluru; Editing by Jonathan Oatis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Similarly, American Airlines AAL.O said the improvement in revenue is expected to more than offset the increases in fuel and other expenses in the current quarter. Carriers are counting on strong demand to deal with fuel costs, which have surged after Russia's invasion of Ukraine, which Moscow has termed a "special military operation." Lower capacity at a time when travel demand is robust is expected to further drive up ticket prices and help soften the blow from higher fuel costs.
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Similarly, American Airlines AAL.O said the improvement in revenue is expected to more than offset the increases in fuel and other expenses in the current quarter. By Rajesh Kumar Singh, Abhijith Ganapavaram and Kate Holton March 15 (Reuters) - U.S. carriers on Tuesday lifted revenue outlook for the quarter through March as falling COVID-19 cases drive up travel demand, but trimmed their capacity plans in response to higher fuel costs. Delta Air, United Airlines Holdings UAL.O, Southwest and JetBlue Airways JBLU.O have also tempered their capacity expectations.
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Similarly, American Airlines AAL.O said the improvement in revenue is expected to more than offset the increases in fuel and other expenses in the current quarter. By Rajesh Kumar Singh, Abhijith Ganapavaram and Kate Holton March 15 (Reuters) - U.S. carriers on Tuesday lifted revenue outlook for the quarter through March as falling COVID-19 cases drive up travel demand, but trimmed their capacity plans in response to higher fuel costs. Lower capacity at a time when travel demand is robust is expected to further drive up ticket prices and help soften the blow from higher fuel costs.
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Similarly, American Airlines AAL.O said the improvement in revenue is expected to more than offset the increases in fuel and other expenses in the current quarter. Delta Air, United Airlines Holdings UAL.O, Southwest and JetBlue Airways JBLU.O have also tempered their capacity expectations. Delta expects its fares would offset fuel costs in the second quarter.
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3724.0
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2022-03-15 00:00:00 UTC
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Pre-Market Most Active for Mar 15, 2022 : TQQQ, NIO, SQQQ, TMC, BABA, RIO, QQQ, AAL, AAPL, DVN, UBS, AMC
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https://www.nasdaq.com/articles/pre-market-most-active-for-mar-15-2022-%3A-tqqq-nio-sqqq-tmc-baba-rio-qqq-aal-aapl-dvn-ubs
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The NASDAQ 100 Pre-Market Indicator is up 101.25 to 13,147.89. The total Pre-Market volume is currently 25,698,204 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is +0.52 at $40.38, with 2,780,624 shares traded., following a 52-week high recorded in prior regular session.
NIO Inc. (NIO) is -0.95 at $13.15, with 2,425,945 shares traded., following a 52-week high recorded in prior regular session.
ProShares UltraPro Short QQQ (SQQQ) is -0.66 at $50.73, with 1,846,912 shares traded. This represents a 80.21% increase from its 52 Week Low.
TMC the metals company Inc. (TMC) is -0.09 at $3.10, with 1,739,867 shares traded.TMC is scheduled to provide an earnings report on 3/17/2022, for the fiscal quarter ending Dec2021. The consensus earnings per share forecast is -0.12 per share, which represents a 99,900 percent increase over the EPS one Year Ago
Alibaba Group Holding Limited (BABA) is -3.95 at $73.81, with 1,593,168 shares traded., following a 52-week high recorded in prior regular session.
Rio Tinto Plc (RIO) is -1.87 at $67.50, with 1,526,197 shares traded. RIO's current last sale is 72.97% of the target price of $92.5.
Invesco QQQ Trust, Series 1 (QQQ) is +1.44 at $319.61, with 1,273,933 shares traded. This represents a 3.98% increase from its 52 Week Low.
American Airlines Group, Inc. (AAL) is +0.56 at $14.81, with 951,187 shares traded. AAL's current last sale is 77.95% of the target price of $19.
Apple Inc. (AAPL) is +0.03 at $150.65, with 931,814 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Devon Energy Corporation (DVN) is -2.41 at $50.28, with 536,010 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. The consensus EPS forecast is $1.56. As reported by Zacks, the current mean recommendation for DVN is in the "buy range".
UBS AG (UBS) is +0.03 at $17.03, with 512,224 shares traded. As reported by Zacks, the current mean recommendation for UBS is in the "buy range".
AMC Entertainment Holdings, Inc. (AMC) is +0.41 at $13.97, with 480,242 shares traded. AMC's current last sale is 118.89% of the target price of $11.75.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +0.56 at $14.81, with 951,187 shares traded. AAL's current last sale is 77.95% of the target price of $19. ProShares UltraPro QQQ (TQQQ) is +0.52 at $40.38, with 2,780,624 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.56 at $14.81, with 951,187 shares traded. AAL's current last sale is 77.95% of the target price of $19. ProShares UltraPro QQQ (TQQQ) is +0.52 at $40.38, with 2,780,624 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.56 at $14.81, with 951,187 shares traded. AAL's current last sale is 77.95% of the target price of $19. ProShares UltraPro QQQ (TQQQ) is +0.52 at $40.38, with 2,780,624 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.56 at $14.81, with 951,187 shares traded. AAL's current last sale is 77.95% of the target price of $19. ProShares UltraPro QQQ (TQQQ) is +0.52 at $40.38, with 2,780,624 shares traded., following a 52-week high recorded in prior regular session.
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3725.0
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2022-03-15 00:00:00 UTC
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Fuel Hedges To Assist Alaska Air Group’s Earnings In 2022
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https://www.nasdaq.com/articles/fuel-hedges-to-assist-alaska-air-groups-earnings-in-2022
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The shares of Alaska Air Group (NYSE: ALK) are again observing a downtrend due to rising benchmark prices and macroeconomic uncertainty triggered by the Russia-Ukraine war. The stock has lost $2.5 billion in market capitalization since February 2020 despite multiple rounds of payroll support assistance. Amid growing fears of slow economic growth from rising commodity prices, Alaska Airlines’ earnings are expected to benefit from fuel hedges this year. Notably, the company has a hedge position on 50% of the expected fuel requirement for H1 2022. Per annual filings, the company will observe a hedging gain as the benchmark oil prices breach $71 per barrel. Our interactive dashboard on Alaska Air Group’s valuation highlights the historical trends in revenues, earnings, valuation multiple, and forecast for FY2022.
Before the pandemic, Alaska Air Group’s revenues observed an average growth rate of 5.5% p.a. from $5.9 billion in 2017 to $8.8 billion in 2019. The company primarily earns its revenues from the sale of air tickets and other ancillary services such as freight & mail. Top line expansion has been assisted by continued capacity growth and rising ticket prices. Historically, the company’s net margins have remained relatively flat within the 9-12% range before the pandemic, with a little change in earnings per share as the company was focusing on debt repayments instead of cash return to shareholders.
In 2019, the benchmark oil prices averaged $60 per barrel and Alaska Air Group reported a net margin of 9%. Considering an average WTI price of $120 per barrel for 2022 and the company’s hedge position, the rising fuel costs will lower net margin by 10% (Fuel Cost in 2019: $1.8 billion, Expected Fuel Cost 2021: 150%*$1.8 billion = $2.7 billion, Decline in net income = $2.7 billion – $1.8 billion = $900 million). In this scenario, the company will be able to cover its operating expenses and limit cash burn if the passenger demand remains strong.
Passenger and Air Cargo Demand Remains Strong
In recent months, investors have been optimistic on Atlas Air stock (NASDAQ: AAWW), a global provider of leased aircraft and aviation operating services. Atlas Air stock has more than doubled from pre-pandemic levels as the air freight market observed a surge in demand. Atlas Air provides air cargo services whereas Alaska Air Group caters to domestic passenger demand. Moreover, Alaska’s domestic business contributes the bulk of its total revenues. Passenger numbers at TSA checkpoints breached the 2 million mark in mid-February despite the broader concerns of rising inflation and supply chain disruptions. (related: Southwest Airlines Stock Poised For Strong Gains?)
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Mar 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ALK Return -17% -10% -47%
S&P 500 Return -5% -12% 86%
Trefis MS Portfolio Return -5% -15% 235%
[1] Month-to-date and year-to-date as of 3/9/2022
[2] Cumulative total returns since the end of 2016
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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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The shares of Alaska Air Group (NYSE: ALK) are again observing a downtrend due to rising benchmark prices and macroeconomic uncertainty triggered by the Russia-Ukraine war. Amid growing fears of slow economic growth from rising commodity prices, Alaska Airlines’ earnings are expected to benefit from fuel hedges this year. Passenger numbers at TSA checkpoints breached the 2 million mark in mid-February despite the broader concerns of rising inflation and supply chain disruptions.
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In 2019, the benchmark oil prices averaged $60 per barrel and Alaska Air Group reported a net margin of 9%. Considering an average WTI price of $120 per barrel for 2022 and the company’s hedge position, the rising fuel costs will lower net margin by 10% (Fuel Cost in 2019: $1.8 billion, Expected Fuel Cost 2021: 150%*$1.8 billion = $2.7 billion, Decline in net income = $2.7 billion – $1.8 billion = $900 million). Atlas Air provides air cargo services whereas Alaska Air Group caters to domestic passenger demand.
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Considering an average WTI price of $120 per barrel for 2022 and the company’s hedge position, the rising fuel costs will lower net margin by 10% (Fuel Cost in 2019: $1.8 billion, Expected Fuel Cost 2021: 150%*$1.8 billion = $2.7 billion, Decline in net income = $2.7 billion – $1.8 billion = $900 million). Atlas Air provides air cargo services whereas Alaska Air Group caters to domestic passenger demand. Total [2] ALK Return -17% -10% -47% S&P 500 Return -5% -12% 86% Trefis MS Portfolio Return -5% -15% 235% [1] Month-to-date and year-to-date as of 3/9/2022 [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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Before the pandemic, Alaska Air Group’s revenues observed an average growth rate of 5.5% p.a. Considering an average WTI price of $120 per barrel for 2022 and the company’s hedge position, the rising fuel costs will lower net margin by 10% (Fuel Cost in 2019: $1.8 billion, Expected Fuel Cost 2021: 150%*$1.8 billion = $2.7 billion, Decline in net income = $2.7 billion – $1.8 billion = $900 million). Atlas Air provides air cargo services whereas Alaska Air Group caters to domestic passenger demand.
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3726.0
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2022-03-15 00:00:00 UTC
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Best Stocks To Invest In Now? 5 Travel Stocks In Focus
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https://www.nasdaq.com/articles/best-stocks-to-invest-in-now-5-travel-stocks-in-focus
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5 Trending Travel Stocks To Check Out Right Now
Travel stocks could be among the more interesting sectors to consider in the stock market today. After all, even as certain parts of the world continue to deal with coronavirus cases, travel demand is already picking up. By and large, this could be thanks to the continuous global rollout of vaccines and subsequent booster shots. As we reach the two-year mark for the pandemic, most firms in the travel industry have and continue to adapt their operations to the new norm. Because of this, investors looking to bet on the recovering travel industry could be eyeing the top travel stocks now.
Not to mention, some of the biggest names in the industry do not seem to be slowing down as well. Take Delta Air Lines (NYSE: DAL) is among the key names in the air travel market making waves now. In detail, the firm provided a positive guidance update noting that quarterly revenue could be up to 78% of 2019 levels. Accordingly, this could also see travel services firms such as Tripadvisor (NASDAQ: TRIP) and Airbnb (NASDAQ: ABNB) gain attention. In the larger scheme of things, some would argue that the case is building for travel stocks. On that note, here are five movers to note in the stock market now.
Travel Stocks To Buy [Or Sell] This Week
American Airlines Group Inc. (NASDAQ: AAL)
Marriott International Inc. (NASDAQ: MAR)
Royal Caribbean Cruises Ltd. (NYSE: RCL)
Vail Resorts Inc. (NYSE: MTN)
Carnival Corporation (NYSE: CCL)
American Airlines Group Inc.
First up, we have American Airlines, a travel stock that operates an airline business. Together with its regional partner American Eagle, the company offers an average of nearly 6,700 flights daily to 350 destinations across 50 countries. It is also a founding member of the Oneworld alliance, whose members and members-elect offer nearly 14,250 flights daily to over 1,000 destinations. Today, at an investor update, the company says that improvement in revenues will more than offset the increase in fuel prices.
In January, the company also reported its fourth-quarter and full-year 2021 financial results. Diving in, fourth-quarter revenue was $9.4 billion. It also transported more than 165 million passengers in 2021, more than any other U.S. carrier. It also ended the year with $15.8 billion in total available liquidity, one of the highest year-end liquidity balances in company history. American Airlines also says that despite the volatility from the pandemic, it believes that it is growing back faster and further than any other U.S. airline to meet this unpredictable demand. With this piece of news, is AAL stock worth investing in today?
Source: TD Ameritrade TOS
[Read More] Best Oil Stocks To Buy Today? 4 For Your Watchlist
Marriott International Inc.
Following that, we have Marriott International, 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. On February 15, 2022, the company reported its fourth-quarter financials.
Firstly, the company reported an operating income of $635 million compared to a loss of $128 million a year ago. Net income for the quarter was $468 million or a diluted earnings per share of $1.42. At the end of 2021, the company’s worldwide development pipeline totaled 2,831 properties and roughly 485,000 rooms. This includes approximately 19,000 rooms approved, but not yet subject to signed contracts. Given the impressive quarter, will you consider adding MAR stock to your portfolio of travel stocks?
Source: TD Ameritrade TOS
Royal Caribbean Cruises Ltd
Royal Caribbean is a global cruise holding company. In fact, it is one of the largest cruise line operators in the world. It has a fleet of over 60 ships that can travel to more than 800 destinations around the world. It is the owner and operator of three award-winning cruise brands, Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. In early March, the company announced that its highly anticipated ship, Wonder of the Seas, has set course for the Caribbean from Port Everglades in Fort Lauderdale, Florida.
Last month, the company also provided a business update and reported its 2021 results. By the end of 2021, the Group had returned 50 out of its 61 ships to operations, representing over 85% of its worldwide capacity. During the year, the company also carried approximately 1.3 million guests across its brands, achieving record guest satisfaction scores and onboard spending per passenger. As of December 31, 2021, the company had approximately $3.2 billion in customer deposits. This represents an improvement of about $400 million over the previous quarter despite the significant quarter-over-quarter increase in revenue recognition and near-term cancellations due to Omicron, both of which reduce the customer deposits balance. All things considered, is RCL stock a buy right now?
Source: TD Ameritrade TOS
[Read More] Stock Market Today: Dow Jones, S&P 500 Opens Higher As Oil Prices Fall; Gitlab (GTLB) Up On Earnings Beat
Vail Resorts Inc.
Following that, we will be taking a look at Vail Resorts, or Vail for short. In brief, it is among the top names in the ski resort business now. For a sense of scale, the company operates via 37 destination mountain resorts and regional ski areas. The likes of which span the U.S. and Canada. On top of that, the company also manages an array of “casually elegant hotels” under its RockResorts brand.
More importantly, MTN stock seems to be gaining attention after posting its latest quarterly earnings update. After yesterday’s closing bell, the company posted earnings of $5.47 per share on revenue of $906.5 million. In terms of year-over-year comparisons, this translates to gains of about 51% and 32% respectively. Overall, Vail appears to be on the recovery as pandemic conditions improve. As such, will you be keeping an eye on MTN stock now?
Source: TD Ameritrade TOS
[Read More] Top Stock Market News For Today March 15, 2022
Carnival Corporation
Last but not least is the Carnival Corporation. For the most part, Carnival is a goliath in the cruise line industry today. To put things into perspective, the company boasts a massive fleet of over 100 vessels from across 10 cruise lines. All of which serve to provide travelers with voyage options spanning the globe. According to Carnival, its ships visit over 700 ports worldwide. As one of the key players in the travel industry now, CCL could be a top travel stock to consider.
For one thing, Carnival is not sitting idly by on the operational front as well. Just today, the company made two positive operational updates. Firstly, its Princess Cruises luxury cruise line announced new deployment plans across the U.S. and Australia. Secondly, Carnival’s P&O cruise line will also be resuming cruising in Australia by May 2022. Pair all this with loosening restrictions on cruise bans and CCL stock could be a top buy for some. Would you agree?
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] This Week American Airlines Group Inc. (NASDAQ: AAL) Marriott International Inc. (NASDAQ: MAR) Royal Caribbean Cruises Ltd. (NYSE: RCL) Vail Resorts Inc. (NYSE: MTN) Carnival Corporation (NYSE: CCL) American Airlines Group Inc. First up, we have American Airlines, a travel stock that operates an airline business. With this piece of news, is AAL stock worth investing in today? This represents an improvement of about $400 million over the previous quarter despite the significant quarter-over-quarter increase in revenue recognition and near-term cancellations due to Omicron, both of which reduce the customer deposits balance.
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Travel Stocks To Buy [Or Sell] This Week American Airlines Group Inc. (NASDAQ: AAL) Marriott International Inc. (NASDAQ: MAR) Royal Caribbean Cruises Ltd. (NYSE: RCL) Vail Resorts Inc. (NYSE: MTN) Carnival Corporation (NYSE: CCL) American Airlines Group Inc. First up, we have American Airlines, a travel stock that operates an airline business. With this piece of news, is AAL stock worth investing in today? Source: TD Ameritrade TOS Royal Caribbean Cruises Ltd Royal Caribbean is a global cruise holding company.
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Travel Stocks To Buy [Or Sell] This Week American Airlines Group Inc. (NASDAQ: AAL) Marriott International Inc. (NASDAQ: MAR) Royal Caribbean Cruises Ltd. (NYSE: RCL) Vail Resorts Inc. (NYSE: MTN) Carnival Corporation (NYSE: CCL) American Airlines Group Inc. First up, we have American Airlines, a travel stock that operates an airline business. With this piece of news, is AAL stock worth investing in today? 5 Trending Travel Stocks To Check Out Right Now Travel stocks could be among the more interesting sectors to consider in the stock market today.
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Travel Stocks To Buy [Or Sell] This Week American Airlines Group Inc. (NASDAQ: AAL) Marriott International Inc. (NASDAQ: MAR) Royal Caribbean Cruises Ltd. (NYSE: RCL) Vail Resorts Inc. (NYSE: MTN) Carnival Corporation (NYSE: CCL) American Airlines Group Inc. First up, we have American Airlines, a travel stock that operates an airline business. With this piece of news, is AAL stock worth investing in today? 5 Trending Travel Stocks To Check Out Right Now Travel stocks could be among the more interesting sectors to consider in the stock market today.
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3727.0
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2022-03-15 00:00:00 UTC
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These 2 Hard-Hit Nasdaq Stocks Flew 10% Higher Tuesday
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https://www.nasdaq.com/articles/these-2-hard-hit-nasdaq-stocks-flew-10-higher-tuesday
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The stock market has been under pressure for months, but Tuesday brought some respite for hard-hit investors. The Nasdaq Composite (NASDAQINDEX: ^IXIC) rose nearly 2% as of 11 a.m. ET, and while it remains far below its all-time highs, some encouraging signs seemed to turn market sentiment back in a positive direction.
Airline stocks did particularly well, with major companies like American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) climbing 10% or more Tuesday morning. Airlines across the industry announced some favorable numbers and outlooks that made shareholders feel more comfortable about the prospects for travel in the near future.
Image source: Getty Images.
American faces a less bad future
American Airlines provided updated financial and operational guidance for the first quarter of 2022. Its figures presented a mixed picture that nevertheless gave investors more confidence.
On the positive side, some elements of American Airlines' operations won't be as bad as initially feared. The company now believes its first-quarter revenue will drop 17% from where it was three years ago, before the beginning of the COVID-19 pandemic. That leaves plenty of room before American has made a full recovery, but it's better than the 20% to 22% drop that the airline had previously anticipated .
However, some other aspects were more troubling. Rising crude oil prices have pushed the company's expectations for first-quarter jet fuel costs up sharply to between $2.73 and $2.78 per gallon. That increase, along with lower-than-expected capacity, should push cost per available seat mile up 11% to 13%, higher than its previous estimates for an 8% to 10% rise. With no hedging arrangements in place currently, costs for the remainder of the year are subject to significant volatility.
United sings a similar song
United similarly released its financial outlook update, which also included some numbers for the full 2022 year. Overall, the airline tried to point to encouraging travel demand as COVID-19 case counts have fallen in the U.S., but its numbers weren't as strong as American's in relation to its past guidance.
On one hand, United does expect to see slightly better revenue performance in the first quarter than it previously thought. The airline sees operating revenue at the upper end of its previous guidance for a 20% to 25% drop in comparison to pre-pandemic levels in the first quarter of 2019. United also sees positive adjusted pre-tax income for the second quarter of 2022.
However, additional flight cancellations due to geopolitical conditions have United expecting capacity for the quarter to fall 19%, worse than the 16% to 18% guidance it previously gave. Costs will rise about 18% from three years ago, with fuel prices expected to average $2.99 per gallon in the first quarter and $3.50 per gallon for the second quarter. All of those factors will likely combine to send full-year capacity figures down high single-digit percentages in 2022 compared to 2019, in United's view.
Flying higher?
Some other airline stocks saw similar patterns. JetBlue Airways (NASDAQ: JBLU) now sees revenue being down just 6% to 9% from 2019 levels, better than its previous 11% to 16% estimate. Delta Air Lines (NYSE: DAL) sees revenue recovering to down 22% from its pre-pandemic levels, improving from past guidance for a 24% to 28% reduction. And Southwest Airlines (NYSE: LUV) now sees revenue down just 8% to 10%, better than its initial 10% to 15% projection.
There's still considerable uncertainty, especially given the rise of another omicron subvariant that could be more transmissible and cause more dramatic health effects. Yet investors appear to be tired of the pessimism surrounding the airline industry. At least for today, airline shareholders are looking at the potential bright side after years of tough times.
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Dan Caplinger has no position in any of the stocks mentioned. 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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Airline stocks did particularly well, with major companies like American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) climbing 10% or more Tuesday morning. Overall, the airline tried to point to encouraging travel demand as COVID-19 case counts have fallen in the U.S., but its numbers weren't as strong as American's in relation to its past guidance. However, additional flight cancellations due to geopolitical conditions have United expecting capacity for the quarter to fall 19%, worse than the 16% to 18% guidance it previously gave.
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Airline stocks did particularly well, with major companies like American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) climbing 10% or more Tuesday morning. American faces a less bad future American Airlines provided updated financial and operational guidance for the first quarter of 2022. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Airline stocks did particularly well, with major companies like American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) climbing 10% or more Tuesday morning. The airline sees operating revenue at the upper end of its previous guidance for a 20% to 25% drop in comparison to pre-pandemic levels in the first quarter of 2019. 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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Airline stocks did particularly well, with major companies like American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) climbing 10% or more Tuesday morning. The airline sees operating revenue at the upper end of its previous guidance for a 20% to 25% drop in comparison to pre-pandemic levels in the first quarter of 2019. Costs will rise about 18% from three years ago, with fuel prices expected to average $2.99 per gallon in the first quarter and $3.50 per gallon for the second quarter.
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3728.0
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2022-03-14 00:00:00 UTC
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U.S. bars SkyWest from ending service to 29 communities pending review
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https://www.nasdaq.com/articles/u.s.-bars-skywest-from-ending-service-to-29-communities-pending-review
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By David Shepardson
WASHINGTON, March 14 (Reuters) - The U.S. Transportation Department on Monday barred regional carrier SkyWest Inc SKYW.O from ending service to 29 locales until replacement carriers can be found under the government's subsidy program to provide air service to smaller communities.
SkyWest provides regional service for key airlines such as United Airlines UAL.O, Alaska Airlines ALK.N, Delta Air Lines DAL.N and American Airlines AAL.O. SkyWest operates the 29 routes under the United Express name providing regional service for United Airlines.
SkyWest last week announced plans to end service to the 29 communities under the Essential Air Service subsidies program effective on June 8, saying "the pilot staffing challenges across the airline industry preclude" the carrier from continuing service.
The Transportation Department said SkyWest cannot terminate service through July 8 "and for additional 30-day periods as necessary" in the event federal officials do not secure another air carrier to provide service under the program at any of the 29 communities.
Some of the communities with United Express flights operated by SkyWest being cut include: Cape Girardeau, Joplin and Fort Leonard Wood, Missouri; Decatur, Illinois; Clarksburg and Greenbrier/Lewisburg, West Virginia; and Fort Dodge, Mason City and Sioux City, Iowa. Some others include: Muskegon and Houghton/Hancock, Michigan; Hattiesburg/Laurel, Mississippi; Johnstown, Pennsylvania; Kearney, Scottsbluff and North Platte, Nebraska; Salina, Liberal, Hays and Dodge City, Kansas; Eau Claire, Wisconsin; and Victoria, Texas.
Each route typically has a separate contract. Such contracts. Each contract generally has around $3 million in annual government subsidies.
SkyWest said it is "eager to work with officials toward solutions that would enable us to reconnect these communities to the National Air Transportation System in the future, and we are committed to remaining flexible and adjusting our plans if the situation improves more quickly than currently expected."
The Transportation Department said it wants other carriers to file proposals no later than April 11 to offer flights to replace the canceled service.
United Airlines Chief Executive Scott Kirby told Congress in December the airline had nearly 100 regional airplanes effectively grounded "because there's not enough pilots to fly them. ... The country is going to need thousands of pilots."
(Reporting by David Shepardson; Editing by Will Dunham)
((David.Shepardson@thomsonreuters.com; 202 898 8324))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SkyWest provides regional service for key airlines such as United Airlines UAL.O, Alaska Airlines ALK.N, Delta Air Lines DAL.N and American Airlines AAL.O. Some of the communities with United Express flights operated by SkyWest being cut include: Cape Girardeau, Joplin and Fort Leonard Wood, Missouri; Decatur, Illinois; Clarksburg and Greenbrier/Lewisburg, West Virginia; and Fort Dodge, Mason City and Sioux City, Iowa. Some others include: Muskegon and Houghton/Hancock, Michigan; Hattiesburg/Laurel, Mississippi; Johnstown, Pennsylvania; Kearney, Scottsbluff and North Platte, Nebraska; Salina, Liberal, Hays and Dodge City, Kansas; Eau Claire, Wisconsin; and Victoria, Texas.
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SkyWest provides regional service for key airlines such as United Airlines UAL.O, Alaska Airlines ALK.N, Delta Air Lines DAL.N and American Airlines AAL.O. SkyWest operates the 29 routes under the United Express name providing regional service for United Airlines. SkyWest last week announced plans to end service to the 29 communities under the Essential Air Service subsidies program effective on June 8, saying "the pilot staffing challenges across the airline industry preclude" the carrier from continuing service.
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SkyWest provides regional service for key airlines such as United Airlines UAL.O, Alaska Airlines ALK.N, Delta Air Lines DAL.N and American Airlines AAL.O. By David Shepardson WASHINGTON, March 14 (Reuters) - The U.S. Transportation Department on Monday barred regional carrier SkyWest Inc SKYW.O from ending service to 29 locales until replacement carriers can be found under the government's subsidy program to provide air service to smaller communities. SkyWest last week announced plans to end service to the 29 communities under the Essential Air Service subsidies program effective on June 8, saying "the pilot staffing challenges across the airline industry preclude" the carrier from continuing service.
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SkyWest provides regional service for key airlines such as United Airlines UAL.O, Alaska Airlines ALK.N, Delta Air Lines DAL.N and American Airlines AAL.O. By David Shepardson WASHINGTON, March 14 (Reuters) - The U.S. Transportation Department on Monday barred regional carrier SkyWest Inc SKYW.O from ending service to 29 locales until replacement carriers can be found under the government's subsidy program to provide air service to smaller communities. SkyWest operates the 29 routes under the United Express name providing regional service for United Airlines.
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3729.0
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2022-03-14 00:00:00 UTC
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American Airlines Fans Need to Hold the Line Amid 2022’s Turmoil
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AAL
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https://www.nasdaq.com/articles/american-airlines-fans-need-to-hold-the-line-amid-2022s-turmoil
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines (NASDAQ:AAL) stock peaked in 2006. It had two impressive stints in 2015 and early 2018, but it has been downhill since then. AAL stock lost as much as 85% of its value from high to low. Its latest disaster was the pandemic, which caused it to collapse from $25 per share. That zone remains tough resistance, so investors need to understand that any rallies will require continued enthusiasm and time to make a difference.
Source: GagliardiPhotography / Shutterstock.com
The current task for American Airlines is for it to climb out of its pandemic-induced rut and rebuild its business. Meanwhile, the stock should continue to ping-pong between $12 and $26 per share.
The bears are in charge, as we saw last week with AAL stock falling 19% in two days. Although the airline business has improved, the space as a whole is still far from having clear skies. This is especially true since outbreak headlines are still floating around. Even the metrics are signifying the same thing.
While sales have increased 70% from 2020, they are still 35% below 2019. Appropriately, American Airlines’ stock is also 70% above its March 2020 lows and 41% below late 2019 levels. The company is slowly but surely inching its way back, but there are still hurdles in the way.
Government mandates for employees and travelers have also thrown a wrench in the cog. However, these policies are loosening a bit, so they could approaching operation normalcy in the U.S.
How to Approach AAL Stock Today
Source: Charts by TradingView
Fans of American Airline stock deserve a round of applause. They have been completely loyal to it throughout and bought dips twice for 150% rallies. This current slide should be no different but they will need the whole market to cooperate.
7 S&P 500 Stocks That Have Raised Their Guidance in 2022
I see a bunch of potential buyers today with its current prices. This should translate into support for AAL on the next dip. The plan would be to buy the base for impending upside potential.
However, for the immediate future, AAL stock is still in danger from the overall geopolitical risk. The Russia-Ukraine conflict hits airlines squarely in the pocket. They cannot catch a break, and this is another test they have to endure.
The industry is barely out of the “ICU,” and here it is, facing another ailment. In 2020, AAL rallied 140% from around $11 per share. The low last week came pretty close to that. Therefore, my assumption is if AAL stock falls into that, it should be a buying opportunity for investors. It might still take time to recover, so investors should account for longer time frames.
Regardless of conviction and patience, we shouldn’t take full position in one lot. It would be smarter to average into the full risk to hedge against potential downside. Leaving room to add in the balance later makes for a better overall entry price. This alleviates the need to be surgical in finding a bottom. The correction on March 4 unfortunately created a wall of resistance around $15.40. Therefore, on rallies, AAL stock will face sellers around that area.
Bottom Line on American Airlines
The indices need to also help out by stabilizing this week, which should be a challenge on unavoidable Federal-Reserve-related headlines. The reaction to that will come on Wednesday, so I expect trepidation heading into it. AAL could also use a favorable industry headline, but the Ukraine conflict is far from finished.
Meanwhile, it serves no purpose to examine the fundamental metrics because they are still suffering from the pandemic crisis. The loss of revenues is translating directly down into a $2 billion yearly loss. That is a lot of hemorrhaging for management to wade through. Luckily the company has managed to be cash positive from operations. Once it gets a better top line, it can then tackle the new debt it acquired.
On the date of publication, Nicolas Chahine 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 American Airlines Fans Need to Hold the Line Amid 2022’s Turmoil 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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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) stock peaked in 2006. AAL stock lost as much as 85% of its value from high to low. The bears are in charge, as we saw last week with AAL stock falling 19% in two days.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) stock peaked in 2006. The bears are in charge, as we saw last week with AAL stock falling 19% in two days. However, these policies are loosening a bit, so they could approaching operation normalcy in the U.S. How to Approach AAL Stock Today Source: Charts by TradingView Fans of American Airline stock deserve a round of applause.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) stock peaked in 2006. However, these policies are loosening a bit, so they could approaching operation normalcy in the U.S. How to Approach AAL Stock Today Source: Charts by TradingView Fans of American Airline stock deserve a round of applause. Therefore, on rallies, AAL stock will face sellers around that area.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) stock peaked in 2006. In 2020, AAL rallied 140% from around $11 per share. Therefore, on rallies, AAL stock will face sellers around that area.
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3730.0
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2022-03-14 00:00:00 UTC
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Will Odds Return In Favor Of JetBlue Airways Stock?
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AAL
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https://www.nasdaq.com/articles/will-odds-return-in-favor-of-jetblue-airways-stock
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nan
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The sudden spike in benchmark oil prices from $70 in early January to $110 at present has weighed on airline stocks including JetBlue Airways (NASDAQ: JBLU). Fuel costs account for a fifth of JetBlue’s operating expenses and the 60% rise is expected to make a short-term dent on the bottom line. JetBlue’s stock has observed a $2.5 billion contraction in market capitalization in the last two years, during the pandemic, despite generating $1 billion of operating cash. Per annual filings, the company does not have fuel hedges to shield itself from the oil price surge. Considering an operating loss from high fuel prices during the first quarter, investors seem to be too pessimistic on the stock despite strong passenger demand. Our interactive dashboard on JetBlue Airways valuation highlights the historical trends in revenues, earnings, valuation multiple, and forecast for FY2022.
Before the pandemic, JetBlue Airways’ revenues observed an average growth rate of 7% p.a. from $6.6 billion in 2016 to $8.1 billion in 2019. The company earns its revenues from the sale of air tickets and other ancillary services such as cargo & vacation packages. Top line expansion has been assisted by continued capacity growth and rising ticket prices. Moreover, the company’s net margins have remained relatively flat within the 8-10% range with little change in earnings per share as the company took a balanced approach on debt repayments and share buybacks.
Passenger and Air Cargo Demand Remains Strong
In recent months, investors have been optimistic on Atlas Air (NASDAQ: AAWW) and Allegiant Travel Company (NASDAQ: ALGT) despite concerns of high inflation and supply chain disruptions impacting macroeconomic recovery. Atlas Air is a global provider of leased aircraft and aviation operating services and Allegiant Travel Company is an air carrier that focuses on under-served U.S. cities. Atlas Air stock has more than doubled and Allegiant stock is down by just 10% from pre-pandemic levels assisted by air freight and domestic passenger demand, respectively. Domestic and Caribbean & Latin America regions contribute 70% and 30% of the company’s total revenues, respectively.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Mar 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
JBLU Return -17% -11% -43%
S&P 500 Return -2% -10% 91%
Trefis MS Portfolio Return -3% -13% 244%
[1] Month-to-date and year-to-date as of 3/10/2022
[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 sudden spike in benchmark oil prices from $70 in early January to $110 at present has weighed on airline stocks including JetBlue Airways (NASDAQ: JBLU). Fuel costs account for a fifth of JetBlue’s operating expenses and the 60% rise is expected to make a short-term dent on the bottom line. Considering an operating loss from high fuel prices during the first quarter, investors seem to be too pessimistic on the stock despite strong passenger demand.
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Before the pandemic, JetBlue Airways’ revenues observed an average growth rate of 7% p.a. Passenger and Air Cargo Demand Remains Strong In recent months, investors have been optimistic on Atlas Air (NASDAQ: AAWW) and Allegiant Travel Company (NASDAQ: ALGT) despite concerns of high inflation and supply chain disruptions impacting macroeconomic recovery. Total [2] JBLU Return -17% -11% -43% S&P 500 Return -2% -10% 91% Trefis MS Portfolio Return -3% -13% 244% [1] Month-to-date and year-to-date as of 3/10/2022 [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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Passenger and Air Cargo Demand Remains Strong In recent months, investors have been optimistic on Atlas Air (NASDAQ: AAWW) and Allegiant Travel Company (NASDAQ: ALGT) despite concerns of high inflation and supply chain disruptions impacting macroeconomic recovery. Atlas Air stock has more than doubled and Allegiant stock is down by just 10% from pre-pandemic levels assisted by air freight and domestic passenger demand, respectively. Total [2] JBLU Return -17% -11% -43% S&P 500 Return -2% -10% 91% Trefis MS Portfolio Return -3% -13% 244% [1] Month-to-date and year-to-date as of 3/10/2022 [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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Before the pandemic, JetBlue Airways’ revenues observed an average growth rate of 7% p.a. What if you’re looking for a more balanced portfolio instead? Total [2] JBLU Return -17% -11% -43% S&P 500 Return -2% -10% 91% Trefis MS Portfolio Return -3% -13% 244% [1] Month-to-date and year-to-date as of 3/10/2022 [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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3731.0
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2022-03-10 00:00:00 UTC
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Advocacy groups urge U.S. to block Frontier, Spirit tie-up
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AAL
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https://www.nasdaq.com/articles/advocacy-groups-urge-u.s.-to-block-frontier-spirit-tie-up
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nan
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nan
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WASHINGTON, March 10 (Reuters) - Several public advocacy groups on Thursday called on U.S. regulators to block a bid by budget carriers Frontier Group Holdings ULCC.O and Spirit Airlines Inc SAVE.N to create the fifth-largest U.S. airline, according to a letter seen by Reuters.
Public Citizen, Fight for the Future, the American Economic Liberties Project and other six groups said in a letter to the Transportation and Justice Departments that a merger between the ultra-low-cost carriers "would destroy competition in the only competitive market segment of the highly consolidated airline industry." The carriers did not immediately comment.
(Reporting by David Shepardson)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, March 10 (Reuters) - Several public advocacy groups on Thursday called on U.S. regulators to block a bid by budget carriers Frontier Group Holdings ULCC.O and Spirit Airlines Inc SAVE.N to create the fifth-largest U.S. airline, according to a letter seen by Reuters. Public Citizen, Fight for the Future, the American Economic Liberties Project and other six groups said in a letter to the Transportation and Justice Departments that a merger between the ultra-low-cost carriers "would destroy competition in the only competitive market segment of the highly consolidated airline industry." (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, March 10 (Reuters) - Several public advocacy groups on Thursday called on U.S. regulators to block a bid by budget carriers Frontier Group Holdings ULCC.O and Spirit Airlines Inc SAVE.N to create the fifth-largest U.S. airline, according to a letter seen by Reuters. Public Citizen, Fight for the Future, the American Economic Liberties Project and other six groups said in a letter to the Transportation and Justice Departments that a merger between the ultra-low-cost carriers "would destroy competition in the only competitive market segment of the highly consolidated airline industry." (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, March 10 (Reuters) - Several public advocacy groups on Thursday called on U.S. regulators to block a bid by budget carriers Frontier Group Holdings ULCC.O and Spirit Airlines Inc SAVE.N to create the fifth-largest U.S. airline, according to a letter seen by Reuters. Public Citizen, Fight for the Future, the American Economic Liberties Project and other six groups said in a letter to the Transportation and Justice Departments that a merger between the ultra-low-cost carriers "would destroy competition in the only competitive market segment of the highly consolidated airline industry." (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, March 10 (Reuters) - Several public advocacy groups on Thursday called on U.S. regulators to block a bid by budget carriers Frontier Group Holdings ULCC.O and Spirit Airlines Inc SAVE.N to create the fifth-largest U.S. airline, according to a letter seen by Reuters. Public Citizen, Fight for the Future, the American Economic Liberties Project and other six groups said in a letter to the Transportation and Justice Departments that a merger between the ultra-low-cost carriers "would destroy competition in the only competitive market segment of the highly consolidated airline industry." The carriers did not immediately comment.
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3732.0
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2022-03-10 00:00:00 UTC
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Advocacy groups urge U.S. to block Frontier, Spirit tie-up
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AAL
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https://www.nasdaq.com/articles/advocacy-groups-urge-u.s.-to-block-frontier-spirit-tie-up-0
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nan
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By David Shepardson
WASHINGTON, March 10 (Reuters) - Several public advocacy groups on Thursday called on U.S. regulators to block a bid by budget carriers Frontier Group Holdings ULCC.O and Spirit Airlines Inc SAVE.N to create the fifth-largest U.S. airline, according to a letter seen by Reuters.
Public Citizen, Fight for the Future, the American Economic Liberties Project and other six groups said in a letter to the Transportation and Justice Departments that a merger between the ultra-low-cost carriers "would destroy competition in the only competitive market segment of the highly consolidated airline industry."
The groups added: "Travelers will pay higher prices for fewer and lower quality options, workers will lose their jobs, and smaller firms will be muscled out of a once-competitive market segment."
The carriers did not immediately comment.
Separately, eight progressive lawmakers including Senators Elizabeth Warren, Ben Ray Lujan and Bernie Sanders and Representative Alexandria Ocasio-Cortez wrote U.S. regulators raising concerns about the airline deal valued at $6.6 billion saying the "resulting Spirit-Frontier carrier could hurt consumers in numerous ways, consolidating market power for the airlines and reducing choices for travelers."
The Justice Department did not immediately comment. The Transportation Department said it would respond to the lawmakers, adding the "administration is committed to protecting competition and consumer protection across a wide range of industries."
The proposed merger comes as the U.S. airline industry is grappling with volatility in travel due to COVID-19. At the same time, costs are soaring on a combination of sharply higher fuel prices and rising wages.
The merger, which is expected to close in the second half of 2022, is projected to result in synergies of $500 million annually, mainly through operational savings.
The companies pledged to avoid job losses and add 10,000 direct jobs by 2026 and say it would deliver $1 billion in annual consumer savings and offer more than 1,000 daily flights to over 145 destinations.
The DOJ has filed an antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O over their partnership, alleging it would lead to higher fares in busy Northeastern U.S. airports.
(Reporting by David Shepardson Editing by Chizu Nomiyama)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The DOJ has filed an antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O over their partnership, alleging it would lead to higher fares in busy Northeastern U.S. airports. The groups added: "Travelers will pay higher prices for fewer and lower quality options, workers will lose their jobs, and smaller firms will be muscled out of a once-competitive market segment." Separately, eight progressive lawmakers including Senators Elizabeth Warren, Ben Ray Lujan and Bernie Sanders and Representative Alexandria Ocasio-Cortez wrote U.S. regulators raising concerns about the airline deal valued at $6.6 billion saying the "resulting Spirit-Frontier carrier could hurt consumers in numerous ways, consolidating market power for the airlines and reducing choices for travelers."
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The DOJ has filed an antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O over their partnership, alleging it would lead to higher fares in busy Northeastern U.S. airports. Public Citizen, Fight for the Future, the American Economic Liberties Project and other six groups said in a letter to the Transportation and Justice Departments that a merger between the ultra-low-cost carriers "would destroy competition in the only competitive market segment of the highly consolidated airline industry." The groups added: "Travelers will pay higher prices for fewer and lower quality options, workers will lose their jobs, and smaller firms will be muscled out of a once-competitive market segment."
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The DOJ has filed an antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O over their partnership, alleging it would lead to higher fares in busy Northeastern U.S. airports. By David Shepardson WASHINGTON, March 10 (Reuters) - Several public advocacy groups on Thursday called on U.S. regulators to block a bid by budget carriers Frontier Group Holdings ULCC.O and Spirit Airlines Inc SAVE.N to create the fifth-largest U.S. airline, according to a letter seen by Reuters. Public Citizen, Fight for the Future, the American Economic Liberties Project and other six groups said in a letter to the Transportation and Justice Departments that a merger between the ultra-low-cost carriers "would destroy competition in the only competitive market segment of the highly consolidated airline industry."
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The DOJ has filed an antitrust lawsuit against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O over their partnership, alleging it would lead to higher fares in busy Northeastern U.S. airports. Public Citizen, Fight for the Future, the American Economic Liberties Project and other six groups said in a letter to the Transportation and Justice Departments that a merger between the ultra-low-cost carriers "would destroy competition in the only competitive market segment of the highly consolidated airline industry." The groups added: "Travelers will pay higher prices for fewer and lower quality options, workers will lose their jobs, and smaller firms will be muscled out of a once-competitive market segment."
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3733.0
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2022-03-10 00:00:00 UTC
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Readying for a 2022 Lift-Off: 3 Travel and Tourism Stocks to Follow this Year
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AAL
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https://www.nasdaq.com/articles/readying-for-a-2022-lift-off%3A-3-travel-and-tourism-stocks-to-follow-this-year
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nan
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T
here’s set to be plenty of interest in travel stocks over the course of 2022. The emergence of the omicron variant rocked stocks across the industry in Q4 of 2021, threatening to bring far-reaching travel restrictions as the strain spread around the world. However, now optimism is growing that 2022 may be the year that we’ll see a meaningful return to holidaying over the coming months.
In the U.S., travel spending plummeted 42% year-over-year in 2020 according to the U.S. Travel Association. International travel was impacted even harder, tumbling 76% year-over-year. With consumers struggling to take flights and travel across borders over recent years, it’s reasonable to expect a resurgence over the course of the year.
In the UK, the London Stock Exchange received boosts throughout January due to growing investor confidence over the future of travel stocks. Both the FTSE 100 and FTSE 250 indexes closed higher following the announcement that the UK government had planned to scrap testing for fully-vaccinated travelers arriving in England from the 11th of February. Holiday bookings in the UK have reportedly rocketed in recent days, and stocks like British Airways owner IAG have reaped the benefits - gaining 7.39% and topping the index. Likewise, in hospitality, Premier Inn owner Whitbread added 2.36%.
Likewise, InterContinental Hotels Group was among the better performers following the relaxing of travel restrictions - growing 2.8%. Elsewhere on the FTSE 250 index, airlines experienced extensive growth, with the likes of Tui and EasyJet finishing the day more than 5% higher.
“Travel demand, in general, is expected to be high in 2022, but one important factor is the course of the pandemic, omicron and other variations,” said Maxim Manturov, head of investment advice at Freedom Finance Europe. “But, as many experts argue, the rapid spread of omicron, though dangerous, could give enough people what they call 'natural immunity' to help turn a Covid pandemic into a much less serious 'endemic' phase.”
If investor optimism can hold, there could be a wide range of travel and tourism stocks growing exponentially over the course of 2022. Let’s take a deeper look at three stocks that hold plenty of potential:
1. Royal Caribbean Cruises Ltd (RCL)
Royal Caribbean Cruises has already bounced back from the financial crash of early 2020 when the pandemic first took hold. Now, there’s sufficient optimism that the company’s stock could recover to pre-pandemic levels in 2022 depending on whether or not booking volume can return to its former glories.
Available data suggests that higher levels of bookings are taking place throughout the summer months and across the year, and at higher prices than those prior to the pandemic. Furthermore, in Q3, Royal Caribbean reported revenues of approximately £339 million - which is a strong improvement from the £-25 million in the year prior. Adjusted loss per share also fell to £4.15 from £3.97 the year prior. The fundamentals behind RCL have shown steady performance growth over every quarter in 2021. This has led to a wave of cautious optimism for the stock.
2. American Airlines Group Inc (AAL)
Despite American Airlines being hit hard by the pandemic, the company’s Q3 earnings in 2021 stood relatively firm despite the emergence of omicron concerns for holidaymakers. AA recorded $9 billion in revenue for the quarter - up some 20% from Q2 of 2021. The airline also welcomed 6,000 peak day departures in Q4 2021 as the holiday season brought a flurry of individuals making journeys domestically in the US.
American Airlines, alongside its Northeast Alliance with JetBlue Airways, has successfully added fresh international services to its roster in 2021, and the airline now offers flights from New York’s John F. Kennedy International Airport to Tel Aviv, Athens, and Delhi. With AA clearly looking to grow its reach in 2022, it may be reasonable to expect its stock to climb as more flights are booked across Q2 and Q3 of this year.
Maxim Manturov notes “American Airlines is again seeing growth in travel and its third-quarter earnings show why they should keep an eye on them in 2022. Revenue for the quarter was almost $9 billion, a 20% increase on the second quarter of last year. The airline expects high demand during peak travel periods in the fourth quarter. On average they expect more than 6000 departure days during this period. The third quarter was a good time for American Airlines as they reported an unexpected profit of $169 million.”
3. Airbnb Inc (ABNB)
Having gone public in late 2020, Airbnb’s early stock market performance has been impacted by the ramifications of the pandemic. However, the home-sharing platform has also grown into one of the world’s best-loved holiday apps. The company’s Q2 financial reports indicated a strong summer, with revenue of $1.3 billion representing a strong increase from the company’s early 2021 struggles. Airbnb also claims that its latest product innovations are set to enable individuals to travel in new ways - affording customers greater levels of freedom around where and when they travel.
For instance, in early 2021, the company announced Flexible Dates to better scout out strong deals for customers. Recently, Airbnb also introduced Flexible Matching and Flexible Destinations tools to help guests to explore more diverse listings and new destinations. As a leading tech platform, it’s possible that Airbnb will react positively to a holiday booking boom in the coming months. Provided that skies remain clear and the Covid-19 outlook remains positive, we may see some positive performance across 2022 for the world’s brightest travel and tourism stocks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc (AAL) Despite American Airlines being hit hard by the pandemic, the company’s Q3 earnings in 2021 stood relatively firm despite the emergence of omicron concerns for holidaymakers. Holiday bookings in the UK have reportedly rocketed in recent days, and stocks like British Airways owner IAG have reaped the benefits - gaining 7.39% and topping the index. “Travel demand, in general, is expected to be high in 2022, but one important factor is the course of the pandemic, omicron and other variations,” said Maxim Manturov, head of investment advice at Freedom Finance Europe.
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American Airlines Group Inc (AAL) Despite American Airlines being hit hard by the pandemic, the company’s Q3 earnings in 2021 stood relatively firm despite the emergence of omicron concerns for holidaymakers. Royal Caribbean Cruises Ltd (RCL) Royal Caribbean Cruises has already bounced back from the financial crash of early 2020 when the pandemic first took hold. The airline expects high demand during peak travel periods in the fourth quarter.
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American Airlines Group Inc (AAL) Despite American Airlines being hit hard by the pandemic, the company’s Q3 earnings in 2021 stood relatively firm despite the emergence of omicron concerns for holidaymakers. With consumers struggling to take flights and travel across borders over recent years, it’s reasonable to expect a resurgence over the course of the year. In the UK, the London Stock Exchange received boosts throughout January due to growing investor confidence over the future of travel stocks.
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American Airlines Group Inc (AAL) Despite American Airlines being hit hard by the pandemic, the company’s Q3 earnings in 2021 stood relatively firm despite the emergence of omicron concerns for holidaymakers. Elsewhere on the FTSE 250 index, airlines experienced extensive growth, with the likes of Tui and EasyJet finishing the day more than 5% higher. Revenue for the quarter was almost $9 billion, a 20% increase on the second quarter of last year.
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3734.0
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2022-03-10 00:00:00 UTC
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American Airlines (AAL) Dips More Than Broader Markets: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-dips-more-than-broader-markets%3A-what-you-should-know-0
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nan
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American Airlines (AAL) closed the most recent trading day at $14.20, moving -0.7% from the previous trading session. This move lagged the S&P 500's daily loss of 0.43%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 0.62%.
Prior to today's trading, shares of the world's largest airline had lost 23.77% over the past month. This has lagged the Transportation sector's loss of 5.38% and the S&P 500's loss of 6.57% 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 -$2.43 per share, which would represent year-over-year growth of 43.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.52 billion, up 112.45% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.11 per share and revenue of $42.35 billion. These results would represent year-over-year changes of +74.82% and +41.71%, respectively.
Investors might also notice recent changes to analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 21.79% lower within the past month. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and 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 $14.20, moving -0.7% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.11 per share and revenue of $42.35 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed the most recent trading day at $14.20, moving -0.7% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.11 per share and revenue of $42.35 billion.
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American Airlines (AAL) closed the most recent trading day at $14.20, moving -0.7% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.11 per share and revenue of $42.35 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines (AAL) closed the most recent trading day at $14.20, moving -0.7% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.11 per share and revenue of $42.35 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3735.0
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2022-03-10 00:00:00 UTC
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Pick This Stock Over American Airlines As The Dip Ends
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AAL
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https://www.nasdaq.com/articles/pick-this-stock-over-american-airlines-as-the-dip-ends
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nan
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nan
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The shares of American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) are observing a steep decline due to rising fuel prices and an overall geopolitical risk premium weighing on the broader market. Moreover, both companies do not have significant fuel hedging contracts to safeguard against short-term spikes in benchmark prices. Considering a scenario where oil prices make a dent on American and Delta Airlines’ profits for a couple of quarters, strong passenger numbers at TSA checkpoints are expected to assist cash generation. Notably, Delta Airlines observed just $529 million of operating cash burn in the past two years combined, as compared to $5.8 billion by American Airlines. Thus, a low cash burn figure and better financial and operating metrics make DAL stock a better pick to realize gains as the market recovers from the current bearish downturn. We compare the historical trends in revenues, margins, and valuation multiple of both companies in an interactive dashboard analysis, Delta Air Lines vs. American Airlines: Industry Peers; Which Stock Is A Better Bet? – parts of which are highlighted below.
Revenue Growth
Delta Air Lines’ growth was slightly higher than American before the pandemic, with Delta Air Lines’ revenues expanding at an average annual rate of 6% from $39.4 billion in 2016 to $47 billion in 2019, versus American Airlines’ revenues which grew by 4.5% per year from $40 billion in 2016 to $45 billion in 2019. Both companies reported a strong recovery trajectory in 2021 after observing steep declines due to travel restrictions and capacity curtailments.
To abate operating losses due to low passenger demand, Delta and American trimmed capacity (available seat miles) by 51% and 50% in 2020, respectively. Thus, operating cash shortfall from reduced capacity and occupancy rate prompted the need for government aid in order to assist maintenance and salary costs.
Per PSP-3 requirements, dividend payouts and share buybacks remain suspended until September 2022 as the airline industry observed hiccups from multiple waves of the pandemic.
Delta and American’s top line was primarily driven by domestic demand last year. Notably, domestic business accounts for 71% and 73% of Delta and American’s total revenues, respectively.
Currently, passenger numbers at TSA checkpoints are almost comparable to pre-pandemic levels. (related: Optimism In Estee Lauder Stock A Trigger For Delta Air Lines?)
Returns (Profits)
Coming to Returns, Delta has a much higher operating margin than American – leading to better cash generation and shareholder returns.
Before the pandemic in 2019, American Airlines reported $3 billion of operating income and $3.8 billion of operating cash from $45 billion in revenues. The company utilized $2.2 billion in investing activities and paid $1.2 billion in dividends & buybacks.
Whereas, Delta Air Lines reported $6 billion of operating income and $8.4 billion of operating cash from $47 billion in revenues. The company utilized $4.5 billion in investing activities and paid $3 billion in dividends & buybacks.
American Airlines’ sizably low operating cash generating capabilities are largely due to $1 billion of annual interest expense from $22 billion of long-term debt (net of cash & cash equivalents).
Highly leveraged balance sheet has been weighing on American Airlines profitability in recent years with the company reporting an operating cash burn of $5.8 billion in 2020 and 2021. On the contrary, Delta Air Lines reported an operating cash burn of just $529 million in 2020 and 2021.
Risk
From the perspective of financial leverage, American Airlines is the riskier of the two companies.
High fixed costs and significantly low demand took a heavy toll on all air carriers over the past two years. The airline industry faces downside risk from rising fuel prices and uncertain macroeconomic outlook due to Russia-Ukraine war. Thus, revenue contraction coupled with a loaded balance sheet negatively affects shareholder returns.
As dividends and share repurchases stand suspended until September 2022, profiting from short-term dips is an opportunity for investors.
Delta and American ended 2021 with $14 billion and $22 billion of long-term debt (net of cash & cash equivalents), respectively.
Given Delta Air Lines stronger balance sheet, we believe that the stock is a better pick to realize long-term gains.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Mar 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DAL Return -14% -12% -30%
AAL Return -15% -19% -69%
S&P 500 Return -1% -9% 93%
Trefis MS Portfolio Return -2% -12% 245%
[1] Month-to-date and year-to-date as of 3/7/2022
[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) and Delta Air Lines (NYSE: DAL) are observing a steep decline due to rising fuel prices and an overall geopolitical risk premium weighing on the broader market. Total [2] DAL Return -14% -12% -30% AAL Return -15% -19% -69% S&P 500 Return -1% -9% 93% Trefis MS Portfolio Return -2% -12% 245% [1] Month-to-date and year-to-date as of 3/7/2022 [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. Considering a scenario where oil prices make a dent on American and Delta Airlines’ profits for a couple of quarters, strong passenger numbers at TSA checkpoints are expected to assist cash generation.
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The shares of American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) are observing a steep decline due to rising fuel prices and an overall geopolitical risk premium weighing on the broader market. Total [2] DAL Return -14% -12% -30% AAL Return -15% -19% -69% S&P 500 Return -1% -9% 93% Trefis MS Portfolio Return -2% -12% 245% [1] Month-to-date and year-to-date as of 3/7/2022 [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. American Airlines’ sizably low operating cash generating capabilities are largely due to $1 billion of annual interest expense from $22 billion of long-term debt (net of cash & cash equivalents).
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The shares of American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) are observing a steep decline due to rising fuel prices and an overall geopolitical risk premium weighing on the broader market. Total [2] DAL Return -14% -12% -30% AAL Return -15% -19% -69% S&P 500 Return -1% -9% 93% Trefis MS Portfolio Return -2% -12% 245% [1] Month-to-date and year-to-date as of 3/7/2022 [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. Revenue Growth Delta Air Lines’ growth was slightly higher than American before the pandemic, with Delta Air Lines’ revenues expanding at an average annual rate of 6% from $39.4 billion in 2016 to $47 billion in 2019, versus American Airlines’ revenues which grew by 4.5% per year from $40 billion in 2016 to $45 billion in 2019.
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The shares of American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) are observing a steep decline due to rising fuel prices and an overall geopolitical risk premium weighing on the broader market. Total [2] DAL Return -14% -12% -30% AAL Return -15% -19% -69% S&P 500 Return -1% -9% 93% Trefis MS Portfolio Return -2% -12% 245% [1] Month-to-date and year-to-date as of 3/7/2022 [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. Notably, Delta Airlines observed just $529 million of operating cash burn in the past two years combined, as compared to $5.8 billion by American Airlines.
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3736.0
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2022-03-09 00:00:00 UTC
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Stock Market Today: Tech Stocks Lead Relief Rally
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-tech-stocks-lead-relief-rally
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The markets staged a robust relief rally that saw all but two sectors – energy (-3.1%) and utilities (-0.7%) – finish in the green.
Boosting investor sentiment were headlines indicating that foreign ministers from Ukraine and Russia will meet in Turkey on Thursday – the first cabinet-level talks to be held between the two countries since the conflict began.
SEE MORE 10 Beaten-Down Tech Stocks to Buy for the Long Term
This follows reports Ukraine President Volodymyr Zelensky on Monday said he is open to a dialogue with Moscow.
"Within equity markets, all the areas of the market that have been hit the hardest recently are snapping back sharply," says Michael Reinking, senior market strategist for the New York Stock Exchange. This included financials, which rose 3.7% after "a few more European banks overnight provided updates on Russian exposure which were not as bad as some had feared," as Reinking explained.
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However, it was technology (+4.0%) that led the charge, with chip stocks Nvidia (NVDA, +7.0%) and Advanced Micro Devices (AMD, +5.2%) among the biggest gainers.
At the close, all three major benchmarks had snapped their four-day losing streak, with the Nasdaq Composite up 3.6% at 13,255, the S&P 500 Index 2.6% higher at 4,277 and the Dow Jones Industrial Average up 2% to 33,286.
It was the Nasdaq's best day since November 2020 and was enough to pull the tech-heavy index out of a bear market. The S&P 500, meanwhile, had its biggest one-day gain since June 2020, while the Dow's advance moved it out of correction of correction territory.
YCharts
Other news in the stock market today:
The small-cap Russell 2000 popped 2.7% to 2,016.
U.S. crude futures retreated sharply from Tuesday's 13-year high, sinking 12.1% to settle at $108.70 per barrel.
Gold futures slid 2.7% to end at $1,988.20 an ounce, snapping a four-day winning streak.
Bumble (BMBL) shot up 41.9% after BMO Research analyst Daniel Salmon upgraded the dating app shares to Outperform. "Catalysts should be driven by the Bumble app and include international expansion milestones and new bundle launches, while new advertising/sponsorship opportunities will be tested over the near term (likely on BFF first) supporting multiple re-expansion," the analyst says. Raymond James analyst Andrew Marok (Outperform) also chimed in on BMBL, saying last night's earnings report came in "better-than-feared." Marok added that while Bumble's decision to pull operations out of Russia will create roughly $20 million in headwinds in fiscal 2022, its full-year guidance is still "ahead of expectations."
Declining oil prices lit a fire under travel stocks. Carnival (CCL, +8.8%), Royal Caribbean (RCL, +5.5%), American Airlines (AAL, +5.9%) and United Airlines (UAL, +8.3%) were some of the day's biggest winners.
A Big Boom in Bitcoin Prices
Another big winner on Wall Street today: Bitcoin. The cryptocurrency jumped 11.3% to $41,807 (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) after President Biden signed an executive order aimed at regulating digital-asset transactions.
SEE MORE Sweet Silicon: 5 Superb Semiconductor Stocks for 2022
The administration outlined several objectives as part of an effort to assess digital assets at the federal level, which include financial inclusion and responsible innovation. The goal of the order is to help the U.S. "maintain technological leadership in this rapidly growing space," while "mitigating the risks for consumers, businesses, the broader financial system and the climate."
This regulation could continue to give cryptocurrencies a boost, says Anthony Denier, CEO of trading platform Webull. Digital assets have "definitely been at reputational risk for buying an asset class that is so volatile and derided. Oversight gives them a firmer ground to stand on."
There are plenty of ways for investors to gain exposure to the top cryptocurrencies too. In addition to stocks that are connected to crypto in some way, Wall Street is now flush with Bitcoin ETFs and other cryptocurrency funds. Read on as we highlight 17 funds focused on riding the crypto wave.
SEE MORE 5 Best Dow Dividend Stocks to Buy Now
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Carnival (CCL, +8.8%), Royal Caribbean (RCL, +5.5%), American Airlines (AAL, +5.9%) and United Airlines (UAL, +8.3%) were some of the day's biggest winners. Boosting investor sentiment were headlines indicating that foreign ministers from Ukraine and Russia will meet in Turkey on Thursday – the first cabinet-level talks to be held between the two countries since the conflict began. "Catalysts should be driven by the Bumble app and include international expansion milestones and new bundle launches, while new advertising/sponsorship opportunities will be tested over the near term (likely on BFF first) supporting multiple re-expansion," the analyst says.
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Carnival (CCL, +8.8%), Royal Caribbean (RCL, +5.5%), American Airlines (AAL, +5.9%) and United Airlines (UAL, +8.3%) were some of the day's biggest winners. SEE MORE 10 Beaten-Down Tech Stocks to Buy for the Long Term This follows reports Ukraine President Volodymyr Zelensky on Monday said he is open to a dialogue with Moscow. A Big Boom in Bitcoin Prices Another big winner on Wall Street today: Bitcoin.
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Carnival (CCL, +8.8%), Royal Caribbean (RCL, +5.5%), American Airlines (AAL, +5.9%) and United Airlines (UAL, +8.3%) were some of the day's biggest winners. "Within equity markets, all the areas of the market that have been hit the hardest recently are snapping back sharply," says Michael Reinking, senior market strategist for the New York Stock Exchange. The cryptocurrency jumped 11.3% to $41,807 (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) after President Biden signed an executive order aimed at regulating digital-asset transactions.
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Carnival (CCL, +8.8%), Royal Caribbean (RCL, +5.5%), American Airlines (AAL, +5.9%) and United Airlines (UAL, +8.3%) were some of the day's biggest winners. "Within equity markets, all the areas of the market that have been hit the hardest recently are snapping back sharply," says Michael Reinking, senior market strategist for the New York Stock Exchange. Bumble (BMBL) shot up 41.9% after BMO Research analyst Daniel Salmon upgraded the dating app shares to Outperform.
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3737.0
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2022-03-09 00:00:00 UTC
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Why Airline Stocks Are Soaring Higher Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-soaring-higher-today
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nan
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nan
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What happened
As noted last week, when oil zigs, airline stocks tend to zag. On Wednesday, oil prices pulled back from 14-year highs and then, sure enough, airlines got a lift. Shares of United Airlines Holdings (NASDAQ: UAL) led the way, up as much as 13%, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded up at least 5%.
So what
The relationship between airlines and oil is pretty straightforward. Jet fuel accounts for as much as 30% of the operating costs of an airline, and when fuel spikes higher it inevitably hits the airline's bottom line. The crisis in Ukraine has led to oil prices soaring higher, and airlines as a result have been losing altitude of late.
Image source: Getty Images.
Wall Street soared higher on Wednesday as crude prices halted their surge, and airlines are among the beneficiaries. The industry is coming off of a difficult few years due to the pandemic, and investors had gone into 2022 hoping airlines would be able to use a robust summer tourism season to rebuild balance sheets bruised by COVID-19. Higher-than-expected fuel costs could quash those best-laid plans, and create a fresh round of uncertainty for airline stocks, so investors will be watching closely as fuel continues to move in the days to come.
Now what
Even if the lower oil prices hold, the industry's fuel costs for the first quarter and into the second quarter are almost certainly going to come in ahead of expectations made just a few months ago. That is likely to mean a round of estimate revisions in the weeks to come, which could put further pressure on the stocks.
The individual airlines have seen their stocks cut by upward of 20% since Russia's invasion of Ukraine began, and are unlikely to fully recover what they have lost as long as the conflict continues. Day-to-day volatility is to be expected, but investors should be careful attempting to bargain hunt.
Prior to the Ukraine crisis, the airline industry was facing a multiyear rebound following the pandemic. For some of the hardest-hit carriers, a recovery is unlikely until the second half of the decade. And nothing about the last few months should provide reason for hope the timetable for a recovery has accelerated.
Of this group of stocks, Southwest historically has been the safe haven. And it remains a good airline to hold for those who have a long time horizon and want exposure to an eventual turnaround. But Southwest is unlikely to be immune to the turbulence, and faces a potential showdown with its pilots in the next few years.
Prior to the pandemic, Delta was leading a transformation of airline industry pricing, and the airline remains the best-positioned so-called "legacy" international airline. But today's upswing is only as secure as the next oil trade, and investors would be well advised not to chase a one-day rally in a sector that is going to need months if not years to get back to cruising altitude.
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Lou Whiteman owns Delta Air Lines and Spirit Airlines. The Motley Fool owns 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) led the way, up as much as 13%, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded up at least 5%. The industry is coming off of a difficult few years due to the pandemic, and investors had gone into 2022 hoping airlines would be able to use a robust summer tourism season to rebuild balance sheets bruised by COVID-19. The individual airlines have seen their stocks cut by upward of 20% since Russia's invasion of Ukraine began, and are unlikely to fully recover what they have lost as long as the conflict continues.
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Shares of United Airlines Holdings (NASDAQ: UAL) led the way, up as much as 13%, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded up at least 5%. The crisis in Ukraine has led to oil prices soaring higher, and airlines as a result have been losing altitude of late. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL) led the way, up as much as 13%, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded up at least 5%. Prior to the pandemic, Delta was leading a transformation of airline industry pricing, and the airline remains the best-positioned so-called "legacy" international airline. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Lou Whiteman owns Delta Air Lines and Spirit Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL) led the way, up as much as 13%, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all traded up at least 5%. Prior to the Ukraine crisis, the airline industry was facing a multiyear rebound following the pandemic. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Lou Whiteman owns Delta Air Lines and Spirit Airlines.
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3738.0
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2022-03-09 00:00:00 UTC
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Strength Seen in American Airlines (AAL): Can Its 5.2% Jump Turn into More Strength?
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AAL
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https://www.nasdaq.com/articles/strength-seen-in-american-airlines-aal%3A-can-its-5.2-jump-turn-into-more-strength
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nan
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nan
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American Airlines (AAL) shares ended the last trading session 5.2% higher at $13.51. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 25.7% loss over the past four weeks.
It is no secret that the upsurge in oil price, following the invasion of Ukraine by Russia, is hurting airline stocks with American Airlines being no exception. Evidently, shares of AAL declined 12% on Mar 7 from the Mar 4 closing as price of oil touched the highest level since 2008. However, AAL shares bounced back the next day and climbed 5.2%. The rebound on Mar 8 was owing to investors hoping that despite the oil price explosion, air-travel demand would remain strong in summer and spring.
This world's largest airline is expected to post quarterly loss of $2.43 per share in its upcoming report, which represents a year-over-year change of +43.8%. Revenues are expected to be $8.52 billion, up 112.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For American Airlines, the consensus EPS estimate for the quarter has been revised 7.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AAL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
American Airlines belongs to the Zacks Transportation - Airline industry. Another stock from the same industry, Spirit (SAVE), closed the last trading session 3.5% higher at $19.24. Over the past month, SAVE has returned -27%.
For Spirit, the consensus EPS estimate for the upcoming report has changed -43.3% over the past month to -$1.08. This represents a change of +56.5% from what the company reported a year ago. Spirit currently has a Zacks Rank of #3 (Hold).
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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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
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) shares ended the last trading session 5.2% higher at $13.51. Evidently, shares of AAL declined 12% on Mar 7 from the Mar 4 closing as price of oil touched the highest level since 2008. However, AAL shares bounced back the next day and climbed 5.2%.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) shares ended the last trading session 5.2% higher at $13.51. Evidently, shares of AAL declined 12% on Mar 7 from the Mar 4 closing as price of oil touched the highest level since 2008.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) shares ended the last trading session 5.2% higher at $13.51. Evidently, shares of AAL declined 12% on Mar 7 from the Mar 4 closing as price of oil touched the highest level since 2008.
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American Airlines (AAL) shares ended the last trading session 5.2% higher at $13.51. Evidently, shares of AAL declined 12% on Mar 7 from the Mar 4 closing as price of oil touched the highest level since 2008. However, AAL shares bounced back the next day and climbed 5.2%.
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3739.0
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2022-03-09 00:00:00 UTC
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Airline Stocks Look Like a Decent Buy, But With a Non-Traditional Trade Structure
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AAL
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https://www.nasdaq.com/articles/airline-stocks-look-like-a-decent-buy-but-with-a-non-traditional-trade-structure
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nan
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nan
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S
urprisingly enough, I am feeling sorry for the airlines right now. It should be hard to generate sympathy for an industry that has, in the not-too-distant past, has shown such disregard for shareholders, destroying their investments by using bankruptcy as a negotiating tactic. That's not even taking in consideration the remarkable disregard it's shown for its customers, nickel-and-diming them in every imaginable way, even as seats get smaller and tighter and legroom shrinks.
Despite all that, it is hard not to feel sorry for them because it seems that, over the last few years, the airline industry really couldn't catch a break.
First, there was Covid. Understandably enough, people were wary of being enclosed in a metal tube with a bunch of strangers, and airline revenues plummeted. Then, just when things seemed to improve after the initial wave, multiple variants set us back, further delaying a return to normality. By February of this year, we seemed to have broken the back of the pandemic, variants and all, but Russia chose that time to launch a brutal invasion of Ukraine.
Obviously, there are ramifications that are way more serious than the impact on the airlines, but as airspace was shut down and oil soared, airline stocks got hit hard again. The three big American international carriers, American (AAL), Delta (DAL), and United (UAL) all saw their stocks lose 25-30% in a week.
If we learned one thing from the recovery from the pandemic, though, it is that people love to travel and will return as soon as they feel able, even if that involves inconveniences like mask mandates and a reduced number of flights. When they do, it will quickly become clear that airline stocks are way oversold. It is not that the problems airlines face aren’t real, it’s just that they are temporary.
Based on the level of resistance and determination shown by the Ukrainian people and the fact that Putin has backed himself into a corner where a face-saving outcome is hard to foresee, the conflict in Ukraine doesn’t look like it will end any time soon. However, as time goes on, the impact on the airlines will fade. They will use routes for international flights that avoid the area and resume flying, and oil has shown us many times that it is volatile in both directions and as sure as eggs are eggs, a big jump will be followed by a big drop at some point.
So, international airline stocks look like a good long-term buy. However, with the current level of volatility, we could still see them lower over the next few days or weeks. That results in two questions for investors: What constitutes a good entry point, and how can you mitigate risk if you do buy?
In both cases, the traditional way to structure a trade is of no use in the current circumstances. Normally, to arrive at an entry point for a stock, I would look at the chart, seeking support levels to trade just in front of or resistance levels, a break of which would be a buy signal. Then, based on that entry point, I would set stops to guard against crashing down through the support or dropping back below the resistance. Right now, though, with AAL, DAL, and UAL having traded in intraday ranges that represent well over 10% of their price for two straight days, supports and resistance levels are non-existent, and any stop close enough to be useful is in danger of getting hit almost immediately.
The answer is to employ a tactic often used by investors: dollar cost averaging. The idea is to break your total intended investment down into parts, then invest each part separately at preset intervals, with time, not price determining your entry point. That way, if the stock goes down after your first trade, you are happy because you can buy it for less next time around. On the other hand, if it goes up, you are still happy, because you bought some on the cheap. Normally, for base portfolios, dollar cost averaging is done over weeks or months, but for a trade like this purchases can be made on a daily basis for a few days.
What dollar cost averaging into a volatile market allows you to do is to get involved while things are flying around, without adding a massive amount of risk immediately. What matters is not where each individual trade is done, but where your average price ends up. Once that is determined, you will have days of price data off which to determine stop loss levels and can take it from there.
Whether you adopt the above strategy or not, and whether you choose to buy airline stocks or not, there is one key thing to realize here: One of the most important things to be when it comes to trading and investing is flexibility. It is all too easy to get sold on a “system” or trading style, but no successful trader ever employs only one signal or trade structure regardless of what is happening in the market. Unusual times call for unusual trades and, right now, that means averaging into even single stock positions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Right now, though, with AAL, DAL, and UAL having traded in intraday ranges that represent well over 10% of their price for two straight days, supports and resistance levels are non-existent, and any stop close enough to be useful is in danger of getting hit almost immediately. The three big American international carriers, American (AAL), Delta (DAL), and United (UAL) all saw their stocks lose 25-30% in a week. If we learned one thing from the recovery from the pandemic, though, it is that people love to travel and will return as soon as they feel able, even if that involves inconveniences like mask mandates and a reduced number of flights.
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The three big American international carriers, American (AAL), Delta (DAL), and United (UAL) all saw their stocks lose 25-30% in a week. Right now, though, with AAL, DAL, and UAL having traded in intraday ranges that represent well over 10% of their price for two straight days, supports and resistance levels are non-existent, and any stop close enough to be useful is in danger of getting hit almost immediately. Obviously, there are ramifications that are way more serious than the impact on the airlines, but as airspace was shut down and oil soared, airline stocks got hit hard again.
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The three big American international carriers, American (AAL), Delta (DAL), and United (UAL) all saw their stocks lose 25-30% in a week. Right now, though, with AAL, DAL, and UAL having traded in intraday ranges that represent well over 10% of their price for two straight days, supports and resistance levels are non-existent, and any stop close enough to be useful is in danger of getting hit almost immediately. Obviously, there are ramifications that are way more serious than the impact on the airlines, but as airspace was shut down and oil soared, airline stocks got hit hard again.
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The three big American international carriers, American (AAL), Delta (DAL), and United (UAL) all saw their stocks lose 25-30% in a week. Right now, though, with AAL, DAL, and UAL having traded in intraday ranges that represent well over 10% of their price for two straight days, supports and resistance levels are non-existent, and any stop close enough to be useful is in danger of getting hit almost immediately. So, international airline stocks look like a good long-term buy.
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3740.0
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2022-03-09 00:00:00 UTC
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US STOCKS-Wall St set to bounce back as tech, banks surge
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-bounce-back-as-tech-banks-surge
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nan
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nan
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By Devik Jain and Sabahatjahan Contractor
March 9 (Reuters) - Wall Street's main indexes were set to bounce back on Wednesday after four straight sessions of losses as oil prices eased and investors snapped up stocks hammered by concerns over Western sanctions on Russia following its invasion of Ukraine.
Megacap growth stocks Amazon.com Inc AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Meta Platforms FB.O and Tesla Inc TSLA.O gained more than 2% each in premarket trading.
Big banks rose, with Bank of America AC.N> and Wells Fargo WFC.N up 3% each. The S&P 500 banks index .SPXBK has fallen 4.5% so far this week.
Travel and leisure stocks surged the most. Carnival Corp CCL.N and American Airlines Group AAL.O climbed 6.1% and 5.3%, respectively, after plummeting sharply this week as soaring oil prices threatened a nascent recovery.
Energy shares tumbled as oil slipped below $125 in volatile trading, following a sharp spike in the past few weeks that saw it breach $130 a barrel. O/R
Surging crude prices have rattled global markets, with investors worrying it could lead to higher inflation and slow economic growth at a time when the Federal Reserve is widely expected to raise interest rates at its March 15-16 meeting.
"We are in a period of extreme uncertainty on several fronts - Ukraine, energy, interest rates, and the economy," said Sean O'Hara, president at Pacer ETFs.
"When you put all that together, it's not surprising that one day you come to the conclusion that's going to work itself out and we buy on that rumor and then the next day, everybody thinks it's not going to work out so we sell on that theory."
Russia said it would achieve its goal of ensuring Ukraine's neutral status and would prefer to do that through talks. Moscow announced a new ceasefire in Ukraine to let civilians flee besieged cities, but there were only limited signs of progress.
At 8:10 a.m. ET, Dow e-minis 1YMcv1 were up 556 points, or 1.71%, S&P 500 e-minis EScv1 were up 79.25 points, or 1.9%, and Nasdaq 100 e-minis NQcv1 were up 318 points, or 2.4%.
The Nasdaq Composite index .IXIC is in a bear market territory, down 20.2% from its record closing high on Nov 19, while the blue-chip Dow .DJI and the benchmark S&P 500 index .SPX are in correction territory.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, fell for the second straight session.
(Reporting by Devik Jain and Sabahatjahan Contractor in Bengaluru; Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Carnival Corp CCL.N and American Airlines Group AAL.O climbed 6.1% and 5.3%, respectively, after plummeting sharply this week as soaring oil prices threatened a nascent recovery. By Devik Jain and Sabahatjahan Contractor March 9 (Reuters) - Wall Street's main indexes were set to bounce back on Wednesday after four straight sessions of losses as oil prices eased and investors snapped up stocks hammered by concerns over Western sanctions on Russia following its invasion of Ukraine. O/R Surging crude prices have rattled global markets, with investors worrying it could lead to higher inflation and slow economic growth at a time when the Federal Reserve is widely expected to raise interest rates at its March 15-16 meeting.
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Carnival Corp CCL.N and American Airlines Group AAL.O climbed 6.1% and 5.3%, respectively, after plummeting sharply this week as soaring oil prices threatened a nascent recovery. By Devik Jain and Sabahatjahan Contractor March 9 (Reuters) - Wall Street's main indexes were set to bounce back on Wednesday after four straight sessions of losses as oil prices eased and investors snapped up stocks hammered by concerns over Western sanctions on Russia following its invasion of Ukraine. "We are in a period of extreme uncertainty on several fronts - Ukraine, energy, interest rates, and the economy," said Sean O'Hara, president at Pacer ETFs.
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Carnival Corp CCL.N and American Airlines Group AAL.O climbed 6.1% and 5.3%, respectively, after plummeting sharply this week as soaring oil prices threatened a nascent recovery. By Devik Jain and Sabahatjahan Contractor March 9 (Reuters) - Wall Street's main indexes were set to bounce back on Wednesday after four straight sessions of losses as oil prices eased and investors snapped up stocks hammered by concerns over Western sanctions on Russia following its invasion of Ukraine. O/R Surging crude prices have rattled global markets, with investors worrying it could lead to higher inflation and slow economic growth at a time when the Federal Reserve is widely expected to raise interest rates at its March 15-16 meeting.
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Carnival Corp CCL.N and American Airlines Group AAL.O climbed 6.1% and 5.3%, respectively, after plummeting sharply this week as soaring oil prices threatened a nascent recovery. By Devik Jain and Sabahatjahan Contractor March 9 (Reuters) - Wall Street's main indexes were set to bounce back on Wednesday after four straight sessions of losses as oil prices eased and investors snapped up stocks hammered by concerns over Western sanctions on Russia following its invasion of Ukraine. Megacap growth stocks Amazon.com Inc AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Meta Platforms FB.O and Tesla Inc TSLA.O gained more than 2% each in premarket trading.
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3741.0
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2022-03-08 00:00:00 UTC
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Why Airline Stocks Plummeted on Monday
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-plummeted-on-monday
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nan
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Major airline stocks like United UAL, Delta DAL, and American AAL fell by as much as 10% during Monday’s trading session; the US Global Jets ETF JETS took a big hit as well.
Surging oil prices due to Russia’s invasion of Ukraine have caused investors to flee travel-related stocks. Oil prices climbed to their highest level in over a decade yesterday, with prices continuing to spike on Tuesday as the Biden administration announced a U.S. ban on Russian oil imports. Airliners’ fuel costs are now likely to increase, and companies in the industry may be forced to lower Q1 profit and revenue expectations.
UAL, DAL & AAL, along with smaller players like JetBlue JBLU and Southwest LUV, are still trying to recover from the coronavirus pandemic. Airlines anticipated that the decline in Omicron cases, warmer weather, and the lifting of restrictions would lead to renewed demand for air travel
While shares of airline stocks rebounded Tuesday, the geopolitical uncertainty, coupled with inflation and supple chain worries, could lead to even more volatility for airlines for the time being.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
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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UAL, DAL & AAL, along with smaller players like JetBlue JBLU and Southwest LUV, are still trying to recover from the coronavirus pandemic. Major airline stocks like United UAL, Delta DAL, and American AAL fell by as much as 10% during Monday’s trading session; the US Global Jets ETF JETS took a big hit as well. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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Major airline stocks like United UAL, Delta DAL, and American AAL fell by as much as 10% during Monday’s trading session; the US Global Jets ETF JETS took a big hit as well. UAL, DAL & AAL, along with smaller players like JetBlue JBLU and Southwest LUV, are still trying to recover from the coronavirus pandemic. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report Major airline stocks like United UAL, Delta DAL, and American AAL fell by as much as 10% during Monday’s trading session; the US Global Jets ETF JETS took a big hit as well. UAL, DAL & AAL, along with smaller players like JetBlue JBLU and Southwest LUV, are still trying to recover from the coronavirus pandemic.
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Major airline stocks like United UAL, Delta DAL, and American AAL fell by as much as 10% during Monday’s trading session; the US Global Jets ETF JETS took a big hit as well. UAL, DAL & AAL, along with smaller players like JetBlue JBLU and Southwest LUV, are still trying to recover from the coronavirus pandemic. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3742.0
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2022-03-08 00:00:00 UTC
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Airline Stocks News: What Is Going on With AAL, UAL, DAL, LUV, JBLU, SAVE Stocks Today?
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AAL
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https://www.nasdaq.com/articles/airline-stocks-news%3A-what-is-going-on-with-aal-ual-dal-luv-jblu-save-stocks-today
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It seems the airline industry simply can’t catch a break. After nearly two years of declining demand, travel prospects were finally up as Covid-19 restrictions began to loosen. Unfortunately, airline stocks are facing more headwinds as rising jet fuel costs eat into profit margins.
Source: m.photo / Shutterstock.com
So, what’s going on with these high-fliers lately?
Well, as a consequence of Russia’s invasion of Ukraine, oil, gas and other forms of energy have seen a steep supply shock. Reasonably so, as Russia is the second-largest producer of natural gas in the world. Russia’s conflict in Ukraine, in addition to brutal sanctions levied against the country, have lifted the price of oil to decade highs.
As the cost of oil increases, jet fuel costs have expectedly skyrocketed to more than 13-year highs. Despite expectations of a resurgence this quarter in the airline industry as the demand for travel returns with waning Covid-19 cases, higher fuel costs will likely wash away any expected gains.
So, what’s going on with airline stocks amid rising fuel costs?
Airline Stocks Face Volatility
The NYSE Arca Airline Index, which tracks a number of major airlines, suffered a major pullback Monday, losing more than 13%. Today, however, it is up 4% at the time of writing. The past several days have seen many airlines see brutal losses amid sweeping selloffs. American Airlines (NASDAQ:AAL) saw its value dwindle from more than $19 earlier this year to yesterday’s closing price of $12.77. At the time of writing, AAL stock is up about 3%.
This morning most airline stocks have been trading roughly flat, with United (NASDAQ:UAL), Delta (NYSE:DAL) and Spirit (NYSE:SAVE) each up between 1% and 2% at the time of writing. With that said, at the time of writing JetBlue (NASDAQ:JBLU) is up a little more, currently enjoying a 3.5% gain.
Airlines will likely continuing experiencing turbulence as the price of oil remains in flux. However, investors will surely have their eyes on the skies as market forces continue to unfold.
On the date of publication, Shrey Dua 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 Airline Stocks News: What Is Going on With AAL, UAL, DAL, LUV, JBLU, SAVE Stocks Today? 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) saw its value dwindle from more than $19 earlier this year to yesterday’s closing price of $12.77. At the time of writing, AAL stock is up about 3%. The post Airline Stocks News: What Is Going on With AAL, UAL, DAL, LUV, JBLU, SAVE Stocks Today?
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The post Airline Stocks News: What Is Going on With AAL, UAL, DAL, LUV, JBLU, SAVE Stocks Today? American Airlines (NASDAQ:AAL) saw its value dwindle from more than $19 earlier this year to yesterday’s closing price of $12.77. At the time of writing, AAL stock is up about 3%.
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American Airlines (NASDAQ:AAL) saw its value dwindle from more than $19 earlier this year to yesterday’s closing price of $12.77. At the time of writing, AAL stock is up about 3%. The post Airline Stocks News: What Is Going on With AAL, UAL, DAL, LUV, JBLU, SAVE Stocks Today?
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At the time of writing, AAL stock is up about 3%. American Airlines (NASDAQ:AAL) saw its value dwindle from more than $19 earlier this year to yesterday’s closing price of $12.77. The post Airline Stocks News: What Is Going on With AAL, UAL, DAL, LUV, JBLU, SAVE Stocks Today?
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3743.0
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2022-03-08 00:00:00 UTC
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Travel Demand Aids American Airlines (AAL) Amid High Debt
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AAL
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https://www.nasdaq.com/articles/travel-demand-aids-american-airlines-aal-amid-high-debt
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nan
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We have recently updated a report on American Airlines Group Inc. AAL.
Thanks to an improvement in air-travel demand in the United States, despite omicron-led woes, American Airlines witnessed a 5.1% sequential increase in fourth-quarter 2021 passenger revenues. With economic activities picking up, passenger revenues (up 79.5% in 2021) have been increasing from the beginning of 2021 itself.
Management's focus on generating cargo revenues is encouraging and is supporting the top line. In 2021, cargo revenues increased 70.8% year over year, with cargo yield per ton mile moving 13.74% northward.
The current scenario of rising fuel costs does not bode well for the airline. During the fourth quarter, the average fuel price per gallon (including related taxes) climbed to $2.36 from $1.27 a year ago. With oil prices continuing to move up, the company estimates the average fuel price per gallon to be even higher in the March quarter. Fuel cost per gallon in first-quarter 2022 is expected in the $2.41-$2.46 band.
American Airlines’ current ratio (a measure of liquidity) at the end of fourth-quarter 2021 stood at 0.91. A current ratio of less than 1 is not desirable as it implies that the company doesn't have enough liquid assets to cover its short-term liabilities.
Zacks Rank & Stocks to Consider
American Airlines carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector are J.B. Hunt Transport Services, Inc. JBHT, Union Pacific Corporation UNP and Triton International Limited TRTN.
The long-term expected EPS (three to five years) growth rate for J.B. Hunt is pegged at 15%. JBHT is benefiting from strong performances across all its segments. While the Dedicated Contract Services (DCS) unit is being aided by fleet-productivity improvement and a rise in average revenue-producing trucks, the Integrated Capacity Solutions (ICS) unit is gaining from favorable customer freight mix as well as higher contractual and spot rates.
JBHT’s measures to reward shareholders are encouraging. Driven by the tailwinds, the stock has increased 24.4% in the past year. J.B. Hunt currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected EPS (three to five years) growth rate for Union Pacific is pegged at 10%. With economic activities gaining pace, freight revenues (accounting for a bulk of the top line) are improving. Freight revenues increased 11% year over year in 2021. Segment-wise, freight revenues in 2021 increased 12%, 11% and 11% in the bulk, industrial and premium units, respectively.
Driven by the tailwinds, the stock has increased 23.5% in the past year. UNP currently carries a Zacks Rank #2.
The long-term expected EPS (three to five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for the company. With easing coronavirus-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the third, the fourth of 2020 as well as in each of the four quarters of 2021.
Driven by the tailwinds, the stock has increased 7.1% in the past year. TRTN currently carries a Zacks Rank #2.
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
Union Pacific Corporation (UNP): Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Triton International Limited (TRTN): 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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We have recently updated a report on American Airlines Group Inc. AAL. American Airlines Group Inc. (AAL): Free Stock Analysis Report Thanks to an improvement in air-travel demand in the United States, despite omicron-led woes, American Airlines witnessed a 5.1% sequential increase in fourth-quarter 2021 passenger revenues.
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We have recently updated a report on American Airlines Group Inc. AAL. American Airlines Group Inc. (AAL): Free Stock Analysis Report Some better-ranked stocks in the broader Zacks Transportation sector are J.B. Hunt Transport Services, Inc. JBHT, Union Pacific Corporation UNP and Triton International Limited TRTN.
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We have recently updated a report on American Airlines Group Inc. AAL. American Airlines Group Inc. (AAL): Free Stock Analysis Report Zacks Rank & Stocks to Consider American Airlines carries a Zacks Rank #3 (Hold).
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We have recently updated a report on American Airlines Group Inc. AAL. American Airlines Group Inc. (AAL): Free Stock Analysis Report Thanks to an improvement in air-travel demand in the United States, despite omicron-led woes, American Airlines witnessed a 5.1% sequential increase in fourth-quarter 2021 passenger revenues.
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3744.0
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2022-03-08 00:00:00 UTC
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Pre-Market Most Active for Mar 8, 2022 : NINE, TMC, TQQQ, MNDT, SQQQ, QQQ, AAL, GSK, F, VALE, CCL, RIG
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-mar-8-2022-%3A-nine-tmc-tqqq-mndt-sqqq-qqq-aal-gsk-f-vale-ccl-rig
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The NASDAQ 100 Pre-Market Indicator is to 13,290.63. The total Pre-Market volume is currently 34,912,557 shares traded.
The following are the most active stocks for the pre-market session:
Nine Energy Service, Inc. (NINE) is +3.2601 at $6.85, with 10,002,089 shares traded. NINE's current last sale is 249.09% of the target price of $2.75.
TMC the metals company Inc. (TMC) is +0.51 at $2.16, with 4,206,126 shares traded.TMC is scheduled to provide an earnings report on 3/10/2022, for the fiscal quarter ending Dec2021. The consensus earnings per share forecast is -0.12 per share, which represents a 99,900 percent increase over the EPS one Year Ago
ProShares UltraPro QQQ (TQQQ) is -0.59 at $42.13, with 4,151,149 shares traded. This represents a 10.48% increase from its 52 Week Low.
Mandiant, Inc. (MNDT) is -0.69 at $21.80, with 4,018,826 shares traded. MNDT's current last sale is 109% of the target price of $20.
ProShares UltraPro Short QQQ (SQQQ) is +0.6399 at $49.65, with 2,586,888 shares traded. This represents a 76.38% increase from its 52 Week Low.
Invesco QQQ Trust, Series 1 (QQQ) is -1.46 at $323.40, with 2,163,443 shares traded. This represents a 7.98% increase from its 52 Week Low.
American Airlines Group, Inc. (AAL) is unchanged at $12.84, with 1,357,546 shares traded., following a 52-week high recorded in prior regular session.
GlaxoSmithKline PLC (GSK) is -0.11 at $39.35, with 1,017,045 shares traded. GSK's current last sale is 77.16% of the target price of $51.
Ford Motor Company (F) is -0.03 at $15.94, with 910,538 shares traded. F's current last sale is 77.76% of the target price of $20.5.
VALE S.A. (VALE) is +0.11 at $20.71, with 883,481 shares traded. VALE's current last sale is 103.55% of the target price of $20.
Carnival Corporation (CCL) is +0.22 at $15.75, with 814,784 shares traded., following a 52-week high recorded in prior regular session.
Transocean Ltd. (RIG) is +0.15 at $5.10, with 798,580 shares traded. RIG's current last sale is 159.38% of the target price of $3.2.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is unchanged at $12.84, with 1,357,546 shares traded., following a 52-week high recorded in prior regular session. ProShares UltraPro Short QQQ (SQQQ) is +0.6399 at $49.65, with 2,586,888 shares traded. Carnival Corporation (CCL) is +0.22 at $15.75, with 814,784 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is unchanged at $12.84, with 1,357,546 shares traded., following a 52-week high recorded in prior regular session. ProShares UltraPro QQQ (TQQQ) is -0.59 at $42.13, with 4,151,149 shares traded. Carnival Corporation (CCL) is +0.22 at $15.75, with 814,784 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is unchanged at $12.84, with 1,357,546 shares traded., following a 52-week high recorded in prior regular session. The total Pre-Market volume is currently 34,912,557 shares traded. The consensus earnings per share forecast is -0.12 per share, which represents a 99,900 percent increase over the EPS one Year Ago
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American Airlines Group, Inc. (AAL) is unchanged at $12.84, with 1,357,546 shares traded., following a 52-week high recorded in prior regular session. The following are the most active stocks for the pre-market session: MNDT's current last sale is 109% of the target price of $20.
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3745.0
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2022-03-07 00:00:00 UTC
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Stock Market Today: Nasdaq Falls Into Bear-Market Territory
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-nasdaq-falls-into-bear-market-territory
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nan
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nan
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Governments and private businesses alike continued to put more distance between themselves and Russia, sending commodities higher but triggering a slump in equities that sent the tech-heavy Nasdaq Composite into a bear market.
Oil soared on Monday as both Congress and the White House reportedly were in favor of moving ahead with banning Russian oil, even if Europe fails to implement similar measures. U.S. crude oil futures jumped 3.2% to a 13-year-high settlement of $119.40 per barrel.
SEE MORE 15 Stocks Billionaires Are Selling
Gold futures, meanwhile, enjoyed their highest finish since August 2020, climbing 1.5% to settle at $1,995.90 per ounce after trading above $2,000 intraday.
Also, over the weekend, Adobe (ADBE), Netflix (NFLX), PayPal (PYPL) and others joined a growing list of companies at least partially shutting down operations in Russia. U.S. equities continued to feel the weight of these moves, however. The financial (-3.6%) and consumer discretionary (-4.9%) sectors suffered the deepest losses in a bright-red day for the broader markets.
The Nasdaq was worst off among the major indexes with a 3.6% decline to 12,830 that put it into bear-market territory, off more than 20% from its Nov. 19 high. The S&P 500 (-3.0% to 4,201) and the Dow Jones Industrial Average (-2.4% to 32,817) also finished well in the red.
"The S&P 500 posted the worst day since October 2020," says Cliff Hodge, chief investment officer for financial planner Cornerstone Wealth. "Fear is palpable. There seems to be no evidence of improvements in Ukraine, and the rhetoric out of D.C. continues to get more hawkish.
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"While it’s impossible to know where the ultimate bottom may be, from a risk-reward standpoint, the market looks very reasonable. We’re using weakness to add exposure as we continue to see very little chance of recession over our forecast horizon."
YCharts
Other news in the stock market today:
The small-cap Russell 2000 declined by 2.5% to 1,951.
Bitcoin tumbled by 5.1% to $37,560.26. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
Bed Bath & Beyond (BBBY) was a rare splash of green in today's trading, jumping 34.2% on news that Ryan Cohen – founder of online pet company Chewy (CHWY) and chairman of video game retailer GameStop (GME) – took a 9.8% stake in the home goods retailer via his investment firm RC Ventures. Cohen believes BBBY needs to explore strategic options, which include separating its baby division, buybuy Baby, according to a letter he wrote to RC Ventures' board members. Wedbush analyst Seth Basham maintained a Neutral (Hold) rating on BBBY. "While BBBY shares could move higher on new activist involvement and high short interest, we remain sidelined without more visibility to market share sustainability for the core Bed Bath business," the analyst says.
Surging oil prices once again weighed on airline stocks. United Airlines (UAL, -15.0%), Delta Air Lines (DAL, -12.8%) and American Airlines (AAL, -12.0%) were some of the day's biggest decliners.
Uber Technologies (UBER, -4.2%) lifted its first-quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to a range of $130 million to $150 million from its previous guidance of $100 million to $130 million. The upwardly revised guidance comes amid increased demand for rides and food delivery, according to the company. "We find Mobility trends in February very encouraging, with trips at 90% and gross bookings at 95% recovered vs. pre-pandemic levels (February 2019), while Delivery annualized run rate gross bookings reached new highs," says CFRA Research analyst Angelo Zino (Strong Buy).
Protect Yourself Against Stagflation
We're increasingly hearing the "S" word being thrown around Wall Street. Stagflation, that is.
SEE MORE The 9 Best Energy Stocks to Buy for 2022
Yes, the unemployment rate has recovered to near pre-pandemic lows, but the other two hallmarks – red-hot inflation and slowing economic growth – are certainly at the front door. Several economists have been lowering their U.S. GDP estimates of late, including LPL Financial Chief Economist Jeffrey Roach.
"We currently expect the U.S. economy to grow 3.7% in 2022," he says, down from 4% to 4.5% in LPL's 2022 outlook. (Kiplinger currently forecasts 4.0%.)
"The risks are to the downside since the Fed may err on tightening too fast, the recent commodity spike may trickle down to the U.S. consumer, and supply-and-demand imbalances may last longer than expected."
Commodities are considered to be among the best defenses against potential stagflation, and you can access them in a number of ways. Exchange-traded funds, such as these 14 ETFs, allow you to invest in baskets of commodity stocks, futures and sometimes the physical goods themselves.
But those wanting a more concentrated bet might consider individual stock picks. From energy producers to miners, these five "stagflation stocks" represent a short list of commodity-tethered plays that should provide protection should the economy continue to cool while inflation keeps heating up.
SEE MORE 3 MLPs Throwing Off Massive 8%-9% Yields
The views and 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 (UAL, -15.0%), Delta Air Lines (DAL, -12.8%) and American Airlines (AAL, -12.0%) were some of the day's biggest decliners. Governments and private businesses alike continued to put more distance between themselves and Russia, sending commodities higher but triggering a slump in equities that sent the tech-heavy Nasdaq Composite into a bear market. SEE MORE The 9 Best Energy Stocks to Buy for 2022 Yes, the unemployment rate has recovered to near pre-pandemic lows, but the other two hallmarks – red-hot inflation and slowing economic growth – are certainly at the front door.
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United Airlines (UAL, -15.0%), Delta Air Lines (DAL, -12.8%) and American Airlines (AAL, -12.0%) were some of the day's biggest decliners. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) Bed Bath & Beyond (BBBY) was a rare splash of green in today's trading, jumping 34.2% on news that Ryan Cohen – founder of online pet company Chewy (CHWY) and chairman of video game retailer GameStop (GME) – took a 9.8% stake in the home goods retailer via his investment firm RC Ventures. "We find Mobility trends in February very encouraging, with trips at 90% and gross bookings at 95% recovered vs. pre-pandemic levels (February 2019), while Delivery annualized run rate gross bookings reached new highs," says CFRA Research analyst Angelo Zino (Strong Buy).
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United Airlines (UAL, -15.0%), Delta Air Lines (DAL, -12.8%) and American Airlines (AAL, -12.0%) were some of the day's biggest decliners. Governments and private businesses alike continued to put more distance between themselves and Russia, sending commodities higher but triggering a slump in equities that sent the tech-heavy Nasdaq Composite into a bear market. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) Bed Bath & Beyond (BBBY) was a rare splash of green in today's trading, jumping 34.2% on news that Ryan Cohen – founder of online pet company Chewy (CHWY) and chairman of video game retailer GameStop (GME) – took a 9.8% stake in the home goods retailer via his investment firm RC Ventures.
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United Airlines (UAL, -15.0%), Delta Air Lines (DAL, -12.8%) and American Airlines (AAL, -12.0%) were some of the day's biggest decliners. Governments and private businesses alike continued to put more distance between themselves and Russia, sending commodities higher but triggering a slump in equities that sent the tech-heavy Nasdaq Composite into a bear market. Surging oil prices once again weighed on airline stocks.
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3746.0
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2022-03-07 00:00:00 UTC
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Could Warren Buffett's Airline Sales Turn Out to Be Right After All?
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AAL
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https://www.nasdaq.com/articles/could-warren-buffetts-airline-sales-turn-out-to-be-right-after-all
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Monday brought continued uncertainty to Wall Street, and major market benchmarks fell sharply as investors tried to figure out what the future might bring. Between soaring consumer prices, the prospect for rising interest rates, and energy markets facing another round of disruptions, market participants haven't had a clear course to follow. By 12:45 p.m. ET, that sent the Dow Jones Industrial Average (DJINDICES: ^DJI) down 667 points to 32,948. The S&P 500 (SNPINDEX: ^GSPC) fell 95 points to 4,234, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 282 points to 13,031.
It was nearly two years ago that Warren Buffett faced harsh criticism for choosing to sell out of airline stocks at the beginning of the COVID-19 pandemic. The removal of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and American Airlines Group (NASDAQ: AAL) from the list of holdings at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) struck many as being akin to panic selling, especially when airline shares moved sharply higher soon thereafter. Now, though, airlines are still struggling, and their path forward is far from certain.
Image source: Getty Images.
The fall, rise, and fall of airline stocks
Before the pandemic began, investors were generally well disposed to airline stocks. An impressive run of profitable years had suggested that the industry had finally found a business model that would work.
The pandemic put a stop to that optimism. Shares of airline stocks plunged 50% to 60% or more from the beginning of 2020 over the course of three months. Most airlines used bailouts to help them survive financially.
But the development and distribution of effective vaccines seemed to put an end point on the trouble for airlines. By spring of 2021, Southwest shares were back above pre-pandemic levels, while other major airlines had trimmed their losses substantially.
Now, though, airlines appear to be back in dire straits. United is down more than 60% from where it started 2020, while American has fallen by more than half. Delta and Southwest are down about 45% and 30%, respectively. Today alone, the four stocks are down between 7% and 11%.
New challenges in the skies
Problems are lining up for airlines in new and troubling combinations:
Traffic volumes had only begun to get back to pre-pandemic levels, as pent-up demand for travel largely overcame lingering worries about new COVID-19 variants. Prospects for broader global reopening had looked better. Yet with geopolitical risks having entered the picture, those favorable trends might well reverse themselves.
One thing that had kept airlines as healthy as they were at the beginning of the pandemic was that energy prices fell to levels not seen in decades. In two years, energy prices returned to more normal levels. Now, the possibility of oil market disruptions related to Russia and its attack on Ukraine have sent oil prices to their highest levels in more than a decade. With jet fuel being a major cost for airlines, the news wasn't welcome.
Buffett's sale hinged on the idea that the industry might never look the same as it did before the pandemic. With new communication methods making in-person travel less vital, even a partial reduction in demand would require a dramatic response from airlines. Indeed, with much weaker balance sheets for many airlines and the prospects of renewed bailout support seeming dimmer, Buffett's concerns might well turn out to have been correct.
Know your thesis
Buffett thinks long term, and it's always premature to judge long-term decisions based on how stocks move in a month, quarter, or even year. Airlines might well turn out OK from here, but it's clear that they've faced many of the ongoing uncertainties that prompted Buffett to seek greener pastures elsewhere.
10 stocks we like better than United Airlines Holdings
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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! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 3, 2022
Dan Caplinger owns Berkshire Hathaway (B shares). The Motley Fool owns and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Delta Air Lines and Southwest Airlines and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The removal of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and American Airlines Group (NASDAQ: AAL) from the list of holdings at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) struck many as being akin to panic selling, especially when airline shares moved sharply higher soon thereafter. Monday brought continued uncertainty to Wall Street, and major market benchmarks fell sharply as investors tried to figure out what the future might bring. New challenges in the skies Problems are lining up for airlines in new and troubling combinations: Traffic volumes had only begun to get back to pre-pandemic levels, as pent-up demand for travel largely overcame lingering worries about new COVID-19 variants.
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The removal of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and American Airlines Group (NASDAQ: AAL) from the list of holdings at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) struck many as being akin to panic selling, especially when airline shares moved sharply higher soon thereafter. The Motley Fool owns and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Delta Air Lines and Southwest Airlines and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares).
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The removal of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and American Airlines Group (NASDAQ: AAL) from the list of holdings at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) struck many as being akin to panic selling, especially when airline shares moved sharply higher soon thereafter. The fall, rise, and fall of airline stocks Before the pandemic began, investors were generally well disposed to airline stocks. The Motley Fool recommends Delta Air Lines and Southwest Airlines and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares).
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The removal of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and American Airlines Group (NASDAQ: AAL) from the list of holdings at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) struck many as being akin to panic selling, especially when airline shares moved sharply higher soon thereafter. Shares of airline stocks plunged 50% to 60% or more from the beginning of 2020 over the course of three months. By spring of 2021, Southwest shares were back above pre-pandemic levels, while other major airlines had trimmed their losses substantially.
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3747.0
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2022-03-07 00:00:00 UTC
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Airline Stocks Are Plunging: Is Now the Right Time to Buy In?
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AAL
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https://www.nasdaq.com/articles/airline-stocks-are-plunging%3A-is-now-the-right-time-to-buy-in
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nan
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What happened
When oil prices spike higher, airline stocks typically sell off. Such was the case on Monday. Crude prices hit levels unseen since 2008, and airline stocks are badly underperforming the market on a down day for equities.
By around noon ET, shares of United Airlines Holdings (NASDAQ: UAL) fell as much as 9%, with shares of JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NYSE: SAVE), Alaska Air Group (NYSE: ALK), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all down more than 5%.
So what
The airline business runs on jet fuel, with energy accounting for upward of 30% of operating costs. And although most airlines had forecast higher jet A prices heading into 2022, none predicted the dramatic surge higher that has followed Russia's invasion of Ukraine.
Image source: Getty Images.
The invasion has added a fresh complication to what was already a struggling industry. The pandemic severely limited demand for travel, which caused airline revenue to dry up in 2020. We've slowly seen a return in domestic demand, and the industry had hoped to use this summer's tourist season to begin to reinforce bruised balance sheets. But even if demand holds up as expected, the added fuel cost is going to eat into earnings, meaning another tough year for the industry.
The jump in oil prices could also stunt global growth, which in turn could eat into demand for air travel in the quarters to come.
These airline stocks are off between 17.7% and 23.9% since Feb. 24, the day Russia began rolling into Ukraine. (For comparison's sake, the S&P 500 is only down slightly since that date.) Investors are bracing for the worst in oil markets as Western governments consider sanctions that could limit global supplies, and airlines are following their historical trend of zigging when oil zags.
Now what
The airlines are a lot cheaper than they were a few weeks ago. But investors should think twice before concluding the stocks are suddenly bargains. The uncertainty pressuring these stocks seems unlikely to go away anytime soon, and if the geopolitical situation continues to escalate in the weeks to come, there is no reason to believe these stocks won't fall further.
Even if the situation in Europe is quickly resolved, any hope for a quick post-pandemic recovery appears to be fading. It appears it will likely take until the second half of the decade for all U.S. airlines to rebuild their balance sheets and get back to normal.
For those with a longer-term mindset, there is reason for optimism. The airlines, even after all their pandemic-related losses, remain healthy enough to withstand this crisis. And there is still reason to believe the conflict in Europe will not halt trends like the rise of the global middle class that are expected to push travel spending up 3% to 5% annually through 2040.
If you are interested in buying in, Delta remains a top pick thanks to its best-in-class management team that helped reinvent industry pricing dynamics prior to the pandemic. But Delta, like United and American, is more reliant on international travel than discounters like JetBlue and Spirit and could lag in the early days of a domestic, leisure-focused recovery.
Southwest has long been the top choice for stability and should be a safe haven to ride out the crisis. And Alaska, with a loyal customer base and a strong niche flying around the West Coast, has the ingredients to be an outperformer. But given the risks, and the extended timetable for a recovery, investors buying in would be well advised to be patient, and to not commit too much of their portfolios to the airlines.
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 March 3, 2022
Lou Whiteman owns Delta Air Lines and Spirit Airlines. The Motley Fool owns and recommends Spirit Airlines. The Motley Fool recommends Alaska Air Group, 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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By around noon ET, shares of United Airlines Holdings (NASDAQ: UAL) fell as much as 9%, with shares of JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NYSE: SAVE), Alaska Air Group (NYSE: ALK), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all down more than 5%. And there is still reason to believe the conflict in Europe will not halt trends like the rise of the global middle class that are expected to push travel spending up 3% to 5% annually through 2040. If you are interested in buying in, Delta remains a top pick thanks to its best-in-class management team that helped reinvent industry pricing dynamics prior to the pandemic.
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By around noon ET, shares of United Airlines Holdings (NASDAQ: UAL) fell as much as 9%, with shares of JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NYSE: SAVE), Alaska Air Group (NYSE: ALK), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all down more than 5%. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Lou Whiteman owns Delta Air Lines and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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By around noon ET, shares of United Airlines Holdings (NASDAQ: UAL) fell as much as 9%, with shares of JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NYSE: SAVE), Alaska Air Group (NYSE: ALK), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all down more than 5%. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Lou Whiteman owns Delta Air Lines and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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By around noon ET, shares of United Airlines Holdings (NASDAQ: UAL) fell as much as 9%, with shares of JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NYSE: SAVE), Alaska Air Group (NYSE: ALK), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all down more than 5%. The jump in oil prices could also stunt global growth, which in turn could eat into demand for air travel in the quarters to come. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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3748.0
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2022-03-07 00:00:00 UTC
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American Airlines Group Becomes Oversold (AAL)
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-becomes-oversold-aal
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $13.78 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 40.7. A bullish investor could look at AAL's 28.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares:
Looking at the chart above, AAL's low point in its 52 week range is $13.76 per share, with $26.09 as the 52 week high point — that compares with a last trade of $13.81.
Free Report: Top 7%+ Dividends (paid monthly)
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A bullish investor could look at AAL's 28.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $13.76 per share, with $26.09 as the 52 week high point — that compares with a last trade of $13.81. In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $13.78 per share.
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A bullish investor could look at AAL's 28.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $13.76 per share, with $26.09 as the 52 week high point — that compares with a last trade of $13.81. In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $13.78 per share.
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In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $13.78 per share. A bullish investor could look at AAL's 28.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $13.76 per share, with $26.09 as the 52 week high point — that compares with a last trade of $13.81.
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In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $13.78 per share. A bullish investor could look at AAL's 28.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $13.76 per share, with $26.09 as the 52 week high point — that compares with a last trade of $13.81.
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3749.0
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2022-03-07 00:00:00 UTC
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Boeing Stock Is Still Working to Clear Pandemic-Related Turbulence
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AAL
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https://www.nasdaq.com/articles/boeing-stock-is-still-working-to-clear-pandemic-related-turbulence
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While equity markets are trying to deal with the new set of headlines, good stocks like Boeing (NYSE:BA) are struggling to find footing. First, consider that BA stock never really got out of the pandemic crater. It fell off the global lockdown cliff and it is still trying to claw back up.
Source: Marco Menezes / Shutterstock.com
In 2020, equities collapsed, including this one, but a few sectors like airlines are still suffering. In contrast, the indices bounced off of the March 2020 lows with ferocity. They broke out from the pre-pandemic lines and took off like a bat out of hell. BA’s clients — the airlines — still don’t have their feet under them.
I would argue that the laggards were more reasonable with their reaction out of March 2020. Way too many stocks rallied far too fast for their own good. This is the reason why the indices now are struggling to find footing. We took the fast way up and the pendulum has to swing the other way now.
Luckily for BA stock it doesn’t have too far to go below before hitting the pandemic lows. Therefore, part of my thesis is that dips are still buying opportunities for long-term investors. In the end, it is still a duopoly that will do well for decades. Meanwhile, there will be turbulence due to intrinsic and extrinsic factors.
Wall Street recently had two violent flash crashes. The first came on Jan. 24 about the time president and CEO of the Federal Reserve Bank of St. Louis James Bullard dropped his “tape bomb.” The second was exactly a month later on the war headline in the Ukraine.
7 Hot Foreign Stocks to Buy Now Despite Global Volatility
Last week, BA stock broke through both levels violently. On Friday the stock fell 4% far more than the indices. I attribute this to the negative news escalating from the conflict in the Ukraine. Proof of this is that airline stocks like American Airlines (NASDAQ:AAL) fell 7%. While the market was red, these two fell disproportionately deeper.
The BA Stock Recovery Is Slow But Ongoing
Source: Charts by TradingView
The fundamentals for Boeing stock are still somewhat murky. Boeing has a special business being a duopoly, so it doesn’t have many sales problems. But its clients are in still in disarray.
Technically the chart is also showing cracks from several sources. First, BA stock lost support at $200 per share. This triggered a bearish pattern that could target $160 per share. There is still time to recover from this, but it better do so quickly. Second, there is a gap that was left open from the rally last November. The bears will try to shoot for that and will eventually act as support.
I see no reason why Boeing should revert to levels from the pandemic bottom, regardless of how bad things are now they are better than when earth closed for business. Hopefully the Russian invasion of the Ukraine will stop escalating.
Therein lies another assumption that investors need to make on that front. Mine is that the leaders will come to terms one way or another. We are still struggling to recover from a pandemic that killed 6 million people. Moreover, governments have spent trillions of dollars to inflate their economies to help aid their recovery.
Bottom Line on Boeing
At this stage, I trust my instincts and not the environment on Wall Street. As such, I suggest a humble approach to investing today. Don’t allow yourself to take full positions into anything regardless of how good it looks.
If you’re already long BA stock, don’t add to your position. New investors should also consider taking only partial positions. Leaving room to add more later is essential now. We have unpredictable politicians running the world everywhere, so I am uncertain if logic will pan out.
Meanwhile, if you want insurance, you can rely on the options markets.
On the date of publication, Nicolas Chahine 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 Boeing Stock Is Still Working to Clear Pandemic-Related Turbulence 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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Proof of this is that airline stocks like American Airlines (NASDAQ:AAL) fell 7%. The first came on Jan. 24 about the time president and CEO of the Federal Reserve Bank of St. Louis James Bullard dropped his “tape bomb.” The second was exactly a month later on the war headline in the Ukraine. I see no reason why Boeing should revert to levels from the pandemic bottom, regardless of how bad things are now they are better than when earth closed for business.
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Proof of this is that airline stocks like American Airlines (NASDAQ:AAL) fell 7%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips While equity markets are trying to deal with the new set of headlines, good stocks like Boeing (NYSE:BA) are struggling to find footing. 7 Hot Foreign Stocks to Buy Now Despite Global Volatility Last week, BA stock broke through both levels violently.
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Proof of this is that airline stocks like American Airlines (NASDAQ:AAL) fell 7%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips While equity markets are trying to deal with the new set of headlines, good stocks like Boeing (NYSE:BA) are struggling to find footing. 7 Hot Foreign Stocks to Buy Now Despite Global Volatility Last week, BA stock broke through both levels violently.
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Proof of this is that airline stocks like American Airlines (NASDAQ:AAL) fell 7%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips While equity markets are trying to deal with the new set of headlines, good stocks like Boeing (NYSE:BA) are struggling to find footing. 7 Hot Foreign Stocks to Buy Now Despite Global Volatility Last week, BA stock broke through both levels violently.
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3750.0
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2022-03-07 00:00:00 UTC
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Why Southwest Airlines Stock Remains A Favorable Bet
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AAL
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https://www.nasdaq.com/articles/why-southwest-airlines-stock-remains-a-favorable-bet
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nan
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nan
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The shares of Southwest Airlines (NYSE: LUV) are again observing a downtrend due to rising benchmark prices and macroeconomic uncertainty triggered by the Russia-Ukraine war. The stock has lost $7.5 billion in market capitalization since February 2020 despite multiple rounds of payroll support assistance provided by the U.S. government. Amid growing fears of slow economic growth due to rising commodity prices, Southwest Airlines is expected to benefit from fuel hedges in the near-term. Notably, the company has a hedge position on almost 60% of the targeted fuel consumption for 2022. Per analyst presentation, Southwest is slated to observe $0.78 of hedging gain per gallon at Brent price of $120. Our interactive dashboard on Southwest’s valuation highlights the historical trends in revenues, earnings, valuation multiple, and forecast for FY2022.
Before the pandemic, Southwest’s revenues observed an average growth rate of 3.4% p.a. from $20 billion in 2016 to $22 billion in 2019. The company primarily earns its revenues from the sale of air tickets and other ancillary services such as freight & mail. Top line expansion has been assisted by continued capacity growth and rising ticket prices. Historically, the company’s net margins have remained relatively flat within the 10-12% range, but EPS increased by 23% from $3.48 in 2016 to $4.28 in 2019 due to regular share buybacks.
Passenger and Air Cargo Demand Remains Strong
In recent months, investors have been optimistic on Atlas Air stock (NASDAQ: AAWW), a global provider of leased aircraft and aviation operating services. Atlas Air stock has more than doubled from pre-pandemic levels as the air freight market observed a surge in demand. Atlas Air provides air cargo services whereas Southwest caters to domestic passenger demand. Moreover, Southwest’s domestic business contributes around 95% of total revenues. Passenger numbers at TSA checkpoints breached the 2 million mark in mid-February despite the broader concerns of rising inflation and supply chain disruptions. (related: Southwest Airlines Stock Poised For Strong Gains?)
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Mar 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
LUV Return -3% -1% -15%
S&P 500 Return 2% -6% 100%
Trefis MS Portfolio Return 1% -9% 257%
[1] Month-to-date and year-to-date as of 3/3/2022
[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 Southwest Airlines (NYSE: LUV) are again observing a downtrend due to rising benchmark prices and macroeconomic uncertainty triggered by the Russia-Ukraine war. Amid growing fears of slow economic growth due to rising commodity prices, Southwest Airlines is expected to benefit from fuel hedges in the near-term. Passenger numbers at TSA checkpoints breached the 2 million mark in mid-February despite the broader concerns of rising inflation and supply chain disruptions.
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Passenger and Air Cargo Demand Remains Strong In recent months, investors have been optimistic on Atlas Air stock (NASDAQ: AAWW), a global provider of leased aircraft and aviation operating services. Atlas Air provides air cargo services whereas Southwest caters to domestic passenger demand. Total [2] LUV Return -3% -1% -15% S&P 500 Return 2% -6% 100% Trefis MS Portfolio Return 1% -9% 257% [1] Month-to-date and year-to-date as of 3/3/2022 [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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Passenger and Air Cargo Demand Remains Strong In recent months, investors have been optimistic on Atlas Air stock (NASDAQ: AAWW), a global provider of leased aircraft and aviation operating services. Atlas Air provides air cargo services whereas Southwest caters to domestic passenger demand. Total [2] LUV Return -3% -1% -15% S&P 500 Return 2% -6% 100% Trefis MS Portfolio Return 1% -9% 257% [1] Month-to-date and year-to-date as of 3/3/2022 [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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Amid growing fears of slow economic growth due to rising commodity prices, Southwest Airlines is expected to benefit from fuel hedges in the near-term. The company primarily earns its revenues from the sale of air tickets and other ancillary services such as freight & mail. Total [2] LUV Return -3% -1% -15% S&P 500 Return 2% -6% 100% Trefis MS Portfolio Return 1% -9% 257% [1] Month-to-date and year-to-date as of 3/3/2022 [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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3751.0
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2022-03-04 00:00:00 UTC
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Stock Market Today: Nuclear Fears Overshadow Stellar February Jobs Number
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-nuclear-fears-overshadow-stellar-february-jobs-number
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nan
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nan
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Wall Street couldn't have asked for any more out of the February jobs report, but a fresh escalation of danger in Eastern Europe was more than enough to keep stocks grounded to end the week.
The Bureau of Labor Statistics on Friday said that 678,000 jobs were created last month, blowing past expectations for 423,000. Moreover, the unemployment rate ticked down even further, to 3.8%, while average hourly wages shot 5.1% higher.
SEE MORE 7 Gold ETFs With Low Costs
But casting a long shadow over that news were late Thursday reports that Russia's military fired upon Ukraine's Zaporizhzhia nuclear power plant, sparking a fire that was later extinguished. While the International Atomic Energy Agency reported that radiation levels remained normal, the reports revived memories of the 1986 Chernobyl disaster (remember, that happened in Ukraine).
Those concerns appeared to hold equity markets down from the get-go, and the major indexes never recovered. The Nasdaq Composite again led the way lower, off 1.7% to 13,313, while the S&P 500 (-0.8% to 4,328) and Dow Jones Industrial Average (-0.5% to 33,614) also closed solidly in the red.
The "fear trade" was alive and well, however. Gold futures gained another 1.6% to $1,966.60 per ounce, while U.S. crude oil futures rocketed 7.4% higher to $115.68 per barrel – a closing level not seen since September 2008.
Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
"Events in Ukraine … are causing risk aversion and a flight to safety as the attack on a nuclear power plant illustrates how dangerous the war is to the entire world, and not just the tremendous suffering of the Ukrainian people," says Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
YCharts
Other news in thestock market today
The small-cap Russell 2000 declined again, losing 1.6% to 2,000.
Bitcoin suffered another steep decline, off 5.6% to $39,486.97. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
Rivian Automotive (RIVN) – which is on next week's earnings calendar – slid 6.9% after Baird analyst George Gianarikas cut his price target on the electric vehicle (EV) maker to $100 from $150, though this is still more than double the stock's Friday close at $47.39. "On March 1, Rivian increased prices on its consumer vehicles based on inflationary impacts to its cost structure, only to reverse the changes to its pre-existing order book [on March 3]," Gianarikas writes in a note. While the financial impact to the roll back will be "material," or around $15,000 per each of the 71,000 book orders, he has "full confidence that Rivian has gathered one of the best management teams and top industry talent to fully capitalize on mobility's EV revolution." As such, the analyst maintained an Outperform (Buy) rating on RIVN.
Costco Wholesale (COST) saw its fiscal second-quarter revenue jump 16% year-over-year to $51.9 billion, while earnings per share increased 36% to $2.92 per share. The figures were higher than the $2.74 per share and $51.5 billion analysts were expecting. Still, shares slipped 1.4% today. "Investors are likely concerned about merchandise gross margins falling 30 basis points [a basis point is one one-hundredth of a percentage point] to 10.6% vs. 10.9% consensus," says CFRA Research analyst Arun Sundaram, who maintained a Hold rating on COST. "While it is difficult for us to be more constructive on the shares at current valuation, especially given the recent carnage to high multiple growth stocks, we think COST shares have support from a few potential catalysts this year, including 1) membership fee hike (potentially as early as June) and 2) special dividend payment (COST has paid four over past 10 years – latest was November 2020 for $10/share)."
Travel stocks took a hit today – possibly as a result of spiking oil prices. "We see limited direct impact from disruption to select commercial flight routes due to the Ukraine-Russia conflict," says Truist Securities analyst Naved Khan. "However, we see a larger indirect impact from a potential double-digit increase in average airfare due to record-high fuel prices + inflationary pressures." Among those selling off today were Delta Air Lines (DAL, -5.6%), American Airlines (AAL, -7.1%) and United Airlines (UAL, -9.1%).
Big Stock Buys of the Billionaires
Today, we're finishing up our regular examination of the "smart money's" recent comings and goings.
SEE MORE Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio
Our final look explores the top stock picks of 15 billionaire money managers – a group that includes David Tepper, Ray Dalio, Daniel Loeb, Seth Klarman and numerous other elite names.
From Kiplinger's Dan Burrows: "Studying which stocks they're chasing with their capital (or which stocks the billionaires are selling off, for that matter) can be an edifying exercise for retail investors. There's a reason the rich get richer, for one thing. But it's also helpful to see where billionaires sometimes make mistakes – at least in the short term. All investors are fallible, after all."
Read on as we look at 15 stock picks that make up outsized portions of these 15 billionaires' portfolios – including several household names, but a few well-off-the-radar equities as well.
SEE MORE 6 Sturdy Defensive Stocks to Buy for 2022
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among those selling off today were Delta Air Lines (DAL, -5.6%), American Airlines (AAL, -7.1%) and United Airlines (UAL, -9.1%). Wall Street couldn't have asked for any more out of the February jobs report, but a fresh escalation of danger in Eastern Europe was more than enough to keep stocks grounded to end the week. "Events in Ukraine … are causing risk aversion and a flight to safety as the attack on a nuclear power plant illustrates how dangerous the war is to the entire world, and not just the tremendous suffering of the Ukrainian people," says Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
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Among those selling off today were Delta Air Lines (DAL, -5.6%), American Airlines (AAL, -7.1%) and United Airlines (UAL, -9.1%). (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) Rivian Automotive (RIVN) – which is on next week's earnings calendar – slid 6.9% after Baird analyst George Gianarikas cut his price target on the electric vehicle (EV) maker to $100 from $150, though this is still more than double the stock's Friday close at $47.39. "On March 1, Rivian increased prices on its consumer vehicles based on inflationary impacts to its cost structure, only to reverse the changes to its pre-existing order book [on March 3]," Gianarikas writes in a note.
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Among those selling off today were Delta Air Lines (DAL, -5.6%), American Airlines (AAL, -7.1%) and United Airlines (UAL, -9.1%). (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) Rivian Automotive (RIVN) – which is on next week's earnings calendar – slid 6.9% after Baird analyst George Gianarikas cut his price target on the electric vehicle (EV) maker to $100 from $150, though this is still more than double the stock's Friday close at $47.39. "While it is difficult for us to be more constructive on the shares at current valuation, especially given the recent carnage to high multiple growth stocks, we think COST shares have support from a few potential catalysts this year, including 1) membership fee hike (potentially as early as June) and 2) special dividend payment (COST has paid four over past 10 years – latest was November 2020 for $10/share)."
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Among those selling off today were Delta Air Lines (DAL, -5.6%), American Airlines (AAL, -7.1%) and United Airlines (UAL, -9.1%). "On March 1, Rivian increased prices on its consumer vehicles based on inflationary impacts to its cost structure, only to reverse the changes to its pre-existing order book [on March 3]," Gianarikas writes in a note. The figures were higher than the $2.74 per share and $51.5 billion analysts were expecting.
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3752.0
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2022-03-04 00:00:00 UTC
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First Week of AAL April 22nd Options Trading
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AAL
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https://www.nasdaq.com/articles/first-week-of-aal-april-22nd-options-trading
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the April 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 22nd contracts and identified one put and one call contract of particular interest.
The put contract at the $14.00 strike price has a current bid of $1.10. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $14.00, but will also collect the premium, putting the cost basis of the shares at $12.90 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $14.80/share today.
Because the $14.00 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 67%. 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 7.86% return on the cash commitment, or 58.58% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $14.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $15.00 strike price has a current bid of $1.35. If an investor was to purchase shares of AAL stock at the current price level of $14.80/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $15.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.47% if the stock gets called away at the April 22nd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red:
Considering the fact that the $15.00 strike represents an approximate 1% 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 49%. 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 9.12% boost of extra return to the investor, or 68.00% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 74%, while the implied volatility in the call contract example is 70%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $14.80) to be 46%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 1% 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 this week, for the April 22nd expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 1% 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 this week, for the April 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 22nd contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 1% 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 this week, for the April 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 22nd 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 April 22nd 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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 1% 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 this week, for the April 22nd expiration.
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3753.0
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2022-03-04 00:00:00 UTC
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Analysts Forecast 20% Upside For The Holdings of SPTM
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AAL
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https://www.nasdaq.com/articles/analysts-forecast-20-upside-for-the-holdings-of-sptm
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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 SPDR Portfolio S&P 1500 Composite Stock Market ETF (Symbol: SPTM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $64.39 per unit.
With SPTM trading at a recent price near $53.72 per unit, that means that analysts see 19.85% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPTM's underlying holdings with notable upside to their analyst target prices are Exterran Corp (Symbol: EXTN), American Airlines Group Inc (Symbol: AAL), and Sabre Corp (Symbol: SABR). Although EXTN has traded at a recent price of $6.20/share, the average analyst target is 37.10% higher at $8.50/share. Similarly, AAL has 21.43% upside from the recent share price of $15.71 if the average analyst target price of $19.08/share is reached, and analysts on average are expecting SABR to reach a target price of $11.50/share, which is 21.05% above the recent price of $9.50. Below is a twelve month price history chart comparing the stock performance of EXTN, AAL, and SABR:
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
SPDR Portfolio S&P 1500 Composite Stock Market ETF SPTM $53.72 $64.39 19.85%
Exterran Corp EXTN $6.20 $8.50 37.10%
American Airlines Group Inc AAL $15.71 $19.08 21.43%
Sabre Corp SABR $9.50 $11.50 21.05%
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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SPDR Portfolio S&P 1500 Composite Stock Market ETF SPTM $53.72 $64.39 19.85% Exterran Corp EXTN $6.20 $8.50 37.10% American Airlines Group Inc AAL $15.71 $19.08 21.43% Sabre Corp SABR $9.50 $11.50 21.05% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPTM's underlying holdings with notable upside to their analyst target prices are Exterran Corp (Symbol: EXTN), American Airlines Group Inc (Symbol: AAL), and Sabre Corp (Symbol: SABR). Similarly, AAL has 21.43% upside from the recent share price of $15.71 if the average analyst target price of $19.08/share is reached, and analysts on average are expecting SABR to reach a target price of $11.50/share, which is 21.05% above the recent price of $9.50.
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Three of SPTM's underlying holdings with notable upside to their analyst target prices are Exterran Corp (Symbol: EXTN), American Airlines Group Inc (Symbol: AAL), and Sabre Corp (Symbol: SABR). Similarly, AAL has 21.43% upside from the recent share price of $15.71 if the average analyst target price of $19.08/share is reached, and analysts on average are expecting SABR to reach a target price of $11.50/share, which is 21.05% above the recent price of $9.50. SPDR Portfolio S&P 1500 Composite Stock Market ETF SPTM $53.72 $64.39 19.85% Exterran Corp EXTN $6.20 $8.50 37.10% American Airlines Group Inc AAL $15.71 $19.08 21.43% Sabre Corp SABR $9.50 $11.50 21.05% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AAL has 21.43% upside from the recent share price of $15.71 if the average analyst target price of $19.08/share is reached, and analysts on average are expecting SABR to reach a target price of $11.50/share, which is 21.05% above the recent price of $9.50. Three of SPTM's underlying holdings with notable upside to their analyst target prices are Exterran Corp (Symbol: EXTN), American Airlines Group Inc (Symbol: AAL), and Sabre Corp (Symbol: SABR). Below is a twelve month price history chart comparing the stock performance of EXTN, AAL, and SABR: Below is a summary table of the current analyst target prices discussed above:
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SPDR Portfolio S&P 1500 Composite Stock Market ETF SPTM $53.72 $64.39 19.85% Exterran Corp EXTN $6.20 $8.50 37.10% American Airlines Group Inc AAL $15.71 $19.08 21.43% Sabre Corp SABR $9.50 $11.50 21.05% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPTM's underlying holdings with notable upside to their analyst target prices are Exterran Corp (Symbol: EXTN), American Airlines Group Inc (Symbol: AAL), and Sabre Corp (Symbol: SABR). Similarly, AAL has 21.43% upside from the recent share price of $15.71 if the average analyst target price of $19.08/share is reached, and analysts on average are expecting SABR to reach a target price of $11.50/share, which is 21.05% above the recent price of $9.50.
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3754.0
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2022-03-03 00:00:00 UTC
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Mining companies may pause growth plans amid Ukraine war, inflation
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AAL
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https://www.nasdaq.com/articles/mining-companies-may-pause-growth-plans-amid-ukraine-war-inflation
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nan
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nan
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By Clara Denina and Praveen Menon
March 3 (Reuters) - Flush with cash after bumper earnings, mining companies straddle a delicate balancing act as they benefit from soaring commodity prices amid the Ukraine-Russia crisis but also potentially face high inflation that could hit short-term demand and slow down growth plans, analysts said.
The world's largest listed miners, including BHP Group , Anglo American and Glencore are sitting on huge piles of cash after skyrocketing prices for copper, iron ore, coal, nickel and other resources buoyed profits.
High metals prices have so far outpaced inflation, which, partly driven by pandemic-related supply bottlenecks and tightening labour markets, is a thorn in the side of mining giants because it pushes costs up.
But the Ukrainian conflict could roil the world's economic outlook in unpredictable ways, exacerbating those inflationary pressures, analysts say.
The United States and Europe imposed sanctions against Russia's central bank and disconnected key Russian banks from the main global payments system. In retaliation, Russia could launch counter-sanctions and shut energy supplies altogether, the analysts said.
"Energy is a big cost input for mining operations," said Andrew Swart, head of Deloitte's mining & metals practice, adding that mining companies should brace for higher global energy prices given that Russia is a big oil producer.
A typical mine sees about 20-25% of its costs linked to energy.
"The Russian invasion in Ukraine has brought a whole bunch of new inflationary constraints into the global economy," said Tyler Broda, head of European metals and mining research at RBC Capital Markets.
"Whether it is the potential for scarcity of metals, meaning that we can't actually produce things, or the potential for Russia to implement counter-sanctions and shut gas supplies, but also just the impact of inflation on aggregate demand at these high levels," he added.
POTENTIAL RIPPLE EFFECTS
Russia is the world's biggest supplier of palladium and third largest producer of oil, nickel and aluminium. It is also a top exporter of coal and steel.
"The biggest impact for the industry right now is losing access to metals," Broda said.
So far, mining companies say, the impact of the conflict on business has been limited.
"The effects to look out for will likely be around disruptions to the flows of physical products, but it's still too early to see, albeit the metals markets seem to be pricing in concerns around constrained supply," Anglo American said in an email.
Western companies, including energy producers BP and Shell are severing ties with Russia, abandoning or exiting their operations and investments there.
Glencore, which has a 10.5% stake in EN+ Group, the parent company of Russian aluminium producer Rusal , did not go as far, but said on Tuesday that it is reviewing its stakes in Russian entities, including a 0.57% stake in oil giant Rosneft.
Rio Tinto said it is "closely monitoring the situation in Ukraine and related sanctions." It, too, has an alumina refinery joint venture with Rusal in Australia.
After the bumper profits reported in the last earnings seasons, analysts had predicted that rampant demand for metals to feed the energy transition and constrained supply would encourage miners to approve more projects, even in jurisdictions previously shunned for reports of human rights abuses or considered risky, such as Congo and Zambia.
"The big miners, the likes of Rio and BHP, have no use for their cash right now. Their cupboard is bare in terms of options to invest in projects," said Glyn Lawcock, head of mining research at Barrenjoey. "They believe right now with elevated pricing comes elevated equity pricing." (Reporting by Clara Denina, Praveen Menon and Ernest Scheyder; Editing by Aurora Ellis) ((Clara.Denina@thomsonreuters.com;)) Keywords: UKRAINE CRISIS/GLOBAL MINERS (PIX)
The views and 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 Clara Denina and Praveen Menon March 3 (Reuters) - Flush with cash after bumper earnings, mining companies straddle a delicate balancing act as they benefit from soaring commodity prices amid the Ukraine-Russia crisis but also potentially face high inflation that could hit short-term demand and slow down growth plans, analysts said. The world's largest listed miners, including BHP Group , Anglo American and Glencore are sitting on huge piles of cash after skyrocketing prices for copper, iron ore, coal, nickel and other resources buoyed profits. High metals prices have so far outpaced inflation, which, partly driven by pandemic-related supply bottlenecks and tightening labour markets, is a thorn in the side of mining giants because it pushes costs up.
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The world's largest listed miners, including BHP Group , Anglo American and Glencore are sitting on huge piles of cash after skyrocketing prices for copper, iron ore, coal, nickel and other resources buoyed profits. "Energy is a big cost input for mining operations," said Andrew Swart, head of Deloitte's mining & metals practice, adding that mining companies should brace for higher global energy prices given that Russia is a big oil producer. Glencore, which has a 10.5% stake in EN+ Group, the parent company of Russian aluminium producer Rusal , did not go as far, but said on Tuesday that it is reviewing its stakes in Russian entities, including a 0.57% stake in oil giant Rosneft.
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By Clara Denina and Praveen Menon March 3 (Reuters) - Flush with cash after bumper earnings, mining companies straddle a delicate balancing act as they benefit from soaring commodity prices amid the Ukraine-Russia crisis but also potentially face high inflation that could hit short-term demand and slow down growth plans, analysts said. "Energy is a big cost input for mining operations," said Andrew Swart, head of Deloitte's mining & metals practice, adding that mining companies should brace for higher global energy prices given that Russia is a big oil producer. After the bumper profits reported in the last earnings seasons, analysts had predicted that rampant demand for metals to feed the energy transition and constrained supply would encourage miners to approve more projects, even in jurisdictions previously shunned for reports of human rights abuses or considered risky, such as Congo and Zambia.
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"Energy is a big cost input for mining operations," said Andrew Swart, head of Deloitte's mining & metals practice, adding that mining companies should brace for higher global energy prices given that Russia is a big oil producer. "Whether it is the potential for scarcity of metals, meaning that we can't actually produce things, or the potential for Russia to implement counter-sanctions and shut gas supplies, but also just the impact of inflation on aggregate demand at these high levels," he added. Russia is the world's biggest supplier of palladium and third largest producer of oil, nickel and aluminium.
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3755.0
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2022-03-03 00:00:00 UTC
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Why Airline Stocks Fell This Week
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-fell-this-week
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nan
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nan
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What happened
Aviation is a global business, and the airlines tend to underperform when the world is in crisis. With that in mind, investors ran to the exits following Russia's invasion into Ukraine. Shares of the entire industry were in the red this week, with Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU) all down 9% or more for the week as of midday trading on Thursday, according to data provided by S&P Global Market Intelligence.
So what
Airline investors have faced a difficult couple of years. The industry was hit hard by the pandemic, which caused travel demand to plummet, and attempts to get off the mat following the introduction of vaccines have repeatedly been thwarted by new variants. The war in Ukraine figures to add to the industry's woes.
Image source: Getty Images.
For one, the conflict with Russia has caused oil to spike to levels unseen since 2014. Fuel accounts for upward of 30% of an airline's costs, and current prices are well above what airlines had expected when they issued guidance back in January. That suggests earnings revisions are coming, and positive commentary from the industry about the outlook for profits in 2022 might be off the table.
Coming into 2022, investors had high hopes for the airlines. An uptick in demand, especially among summer tourists, was supposed to help rebuild balance sheets bruised by the pandemic. And while an international travel recovery is still likely more than a year off, any uptick would have helped boost the bottom line.
International tourism is now very much in doubt, and domestic travel might at least in part depend on what the war and possible repercussions like higher prices at the pump will have on consumer confidence. The only thing that is clear is that there isn't much about the outlook for airlines in 2022 that is clear, and that is causing investors to look elsewhere.
Now what
This is an odd moment for airline investors. All of the reasons to be bullish about the sector's long-term growth prospects, including a growing global middle class, more mobility, and pent-up demand after two years of lockdown, remain in place. But there is also little reason to get too excited about the coming months or quarters. The COVID hangover on balance sheets is likely to be felt into the second half of the decade, and we have no idea when we will see robust business or international demand again.
For those with a strong tolerance for risk, Delta and Alaska are the best choices from this group. Delta is run by a management team that prior to the pandemic had revolutionized pricing, helping so-called legacy airlines like Delta, United, and American to better compete against discounters. Alaska has a strong route network primarily on the West Coast and a history of being a strong operator.
But be advised, the next few months could get worse before there are any signs to suggest things are going to get better. And even if the war is quickly over and oil prices fall back, the industry still has a rough road ahead before conditions fully normalize.
Given the turbulent ride airline investors have had to endure over the last two years, it is no surprise that many have no interest in climbing aboard now during a time of war.
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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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Shares of the entire industry were in the red this week, with Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU) all down 9% or more for the week as of midday trading on Thursday, according to data provided by S&P Global Market Intelligence. The industry was hit hard by the pandemic, which caused travel demand to plummet, and attempts to get off the mat following the introduction of vaccines have repeatedly been thwarted by new variants. International tourism is now very much in doubt, and domestic travel might at least in part depend on what the war and possible repercussions like higher prices at the pump will have on consumer confidence.
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Shares of the entire industry were in the red this week, with Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU) all down 9% or more for the week as of midday trading on Thursday, according to data provided by S&P Global Market Intelligence. Delta is run by a management team that prior to the pandemic had revolutionized pricing, helping so-called legacy airlines like Delta, United, and American to better compete against discounters. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and JetBlue Airways.
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Shares of the entire industry were in the red this week, with Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU) all down 9% or more for the week as of midday trading on Thursday, according to data provided by S&P Global Market Intelligence. Delta is run by a management team that prior to the pandemic had revolutionized pricing, helping so-called legacy airlines like Delta, United, and American to better compete against discounters. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and JetBlue Airways.
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Shares of the entire industry were in the red this week, with Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU) all down 9% or more for the week as of midday trading on Thursday, according to data provided by S&P Global Market Intelligence. Coming into 2022, investors had high hopes for the airlines. An uptick in demand, especially among summer tourists, was supposed to help rebuild balance sheets bruised by the pandemic.
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3756.0
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2022-03-03 00:00:00 UTC
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Airline Stock Roundup: U.S. Shuts Airspace for Russia, SAVE, RYAAY in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-u.s.-shuts-airspace-for-russia-save-ryaay-in-focus
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nan
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nan
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In the past week, the ban imposed by the U.S. government on Russian carriers by closing down its airspace following the invasion of Ukraine by Russia dominated headlines. However, even before the announcement was made on Mar 1, Delta Air Lines DAL and American Airlines AAL had already suspended their partnerships with the respective Russian carriers. United Airlines UAL too followed suit by temporarily suspending flights over the Russian airspace.
In other news, Ryanair Holdings RYAAY reported impressive traffic numbers for February on the back of upbeat air-travel demand. Expansion-related updates were available from United Airlines and Spirit Airlines SAVE in the previous week.
Read the last Airline roundup here.
Recap of the Latest Top Stories
1. United Airlines, currently carrying a Zacks Rank #3 (Hold), is set to resume San Francisco-Melbourne (Australia) flights on May 7. The service remained suspended for long due to coronavirus-related travel restrictions.
Throughout the pandemic, United Airlines had maintained its passenger service to Australia. UAL offers the maximum number of flights to Australia among all U.S. carriers, management had said earlier. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Spirit Airlines launched a service from Orlando International Airport (MCO) to Mercedita International Airport (PSE) in Ponce. The move expands its presence in Puerto Rico. This daily nonstop service complements Spirit Airlines’ existing operations in San Juan (SJU) and Aguadilla (BQN) in Puerto Rico. From Orlando, FL, SAVE operates around 80 flights each day, providing one-stop options between PSE and 28 cities across its route map.
3. Despite omicron-led woes, Ryanair’s traffic in February 2022 surged more than 100% year over year to 8.7 million. Traffic in February 2021 was only 0.5 million at RYAAY. Last month’s traffic was also higher than the previous month’s reading of 7 million, reflecting the gradual improvement in air-travel demand. Load factor (percentage of seats filled with passengers) in February 2021 was 86% higher than 78% recorded in February 2021 and 79% in January 2022.
4. Following the eruption of the Russia-Ukraine crisis, Delta suspended its codeshare agreement with the Russian-carrier Aeroflot. To severe ties with Russia, American Airlines suspended its agreements with Aeroflot and another Russian carrier S7 Airlines. United Airlines, which uses the Russian airspace for flights from Delhi (India) is reportedly evaluating options as to how it can continue operating such flights using different routes.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that almost airline stocks traded in the red over the past week mainly due to the upsurge in oil price. We note that even before the Russia-Ukraine crisis emanated, oil price was witnessing a spike. Russia’s launch of military operations in Ukraine skyrocketed the commodity price further (currently trading above $100 a barrel).
The upsurge is reflective of the concerns about oil supplies from Russia, which is one of the world's largest producers of the commodity. Such escalation in oil price does not bode well for airlines’ bottom line as fuel expenses represent one of the largest input costs for these operators. As a result, the NYSE ARCA Airline Index decreased 6.2% to $78.49 over the past week. Over the course of the past six months, the NYSE ARCA Airline Index declined 15%.
What's Next in the Airline Space?
Stay tuned for further updates on the impact on airlines as the Russia-Ukraine tension increases.
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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
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): 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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However, even before the announcement was made on Mar 1, Delta Air Lines DAL and American Airlines AAL had already suspended their partnerships with the respective Russian carriers. American Airlines Group Inc. (AAL): Free Stock Analysis Report This daily nonstop service complements Spirit Airlines’ existing operations in San Juan (SJU) and Aguadilla (BQN) in Puerto Rico.
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However, even before the announcement was made on Mar 1, Delta Air Lines DAL and American Airlines AAL had already suspended their partnerships with the respective Russian carriers. American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
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However, even before the announcement was made on Mar 1, Delta Air Lines DAL and American Airlines AAL had already suspended their partnerships with the respective Russian carriers. American Airlines Group Inc. (AAL): Free Stock Analysis Report To severe ties with Russia, American Airlines suspended its agreements with Aeroflot and another Russian carrier S7 Airlines.
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However, even before the announcement was made on Mar 1, Delta Air Lines DAL and American Airlines AAL had already suspended their partnerships with the respective Russian carriers. American Airlines Group Inc. (AAL): Free Stock Analysis Report Last month’s traffic was also higher than the previous month’s reading of 7 million, reflecting the gradual improvement in air-travel demand.
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3757.0
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2022-03-02 00:00:00 UTC
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U.S. Bans Russian Flights to Corner Russia Again Over Ukraine
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AAL
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https://www.nasdaq.com/articles/u.s.-bans-russian-flights-to-corner-russia-again-over-ukraine
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nan
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nan
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The war between Russia and Ukraine has shaken the entire world. Sanctions against Russia from various parts of the globe are being imposed following its invasion of its neighboring country Ukraine. Shortly after the U.S.-based major financial service providers restricted transactions in Russia, the U.S. administration came up with the decision to ban Russian flights from the American airspace.
Even before the ban was announced, airline majors like Delta Air Lines DAL and American Airlines AAL had already suspended their partnerships with Russian carriers. United Airlines UAL too followed suite in declaring that it temporarily suspended flying over the Russian airspace.
Coming back to the U.S. decision, per the U.S. department of transportation, the ban covers all passenger and cargo flights, and scheduled as well as charter flights, “effectively closing U.S. air space to all Russian commercial air carriers and other Russian civil aircraft”. The European Union and Canada had already announced decisions to cut off the Russian flights.
To isolate Russia further, following its offensive launched on Ukraine, US President Joe Biden said, "I am announcing that we will join our allies in closing off American airspace to all Russian flights, further isolating Russia and adding an additional squeeze on their economy."
Airfares to Rise?
Delta, currently carrying a Zacks Rank #3 (Hold), suspended its codeshare agreement with the Russian-carrier Aeroflot last week. To severe ties with Russia, American Airlines suspended its agreements with Aeroflot and another Russian carrier S7 Airlines.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Airlines, which uses the Russian airspace for flights from Delhi, India, is reportedly evaluating options as to how it can continue operating such flights using different routes. With the above-mentioned flights likely to follow a different route, the possibility of longer flights with more connections will push up the price of the airline tickets. In fact, the United States’ decision to ban Russian carriers from using its airspace, might see Russia slapping a retaliatory ban.
Apart from the possibility of longer routes, the northward movement of oil price is exerting pressure on the ticket rates. Even before the Russia-Ukraine crisis emanated, oil price was witnessing a spike. Russia’s launch of military operations in Ukraine skyrocketed the commodity price further. The upsurge is reflective of the concerns about oil supplies from Russia, which is one of the world's largest producers of the commodity. Small wonder then that the oil price is currently above $100 a barrel, a level last touched in 2014.
Such escalation in oil price does not bode well for airlines’ bottom line as fuel expenses represent one of the largest input costs for these operators. To compensate for the oil price-triggered steep operating expenses, airlines are likely to raise ticket prices.
Pain Ahead for Airlines?
After being ravaged by the coronavirus crisis, U.S. airlines were bouncing back with air-travel demand (mainly for leisure) rebounding nicely. However, they may be in for some turbulence again going forward as we suspect air-travel to be far from pocket-friendly for passengers with oil price shooting up. This might dent air-traffic.
To highlight the improved passenger revenue scenario, which might be under threat again, let’s recap briefly the fourth-quarter 2021 results of Delta, American Airlines and United Airlines.
In the December quarter, Delta’s revenues came in at $9,470 million, which not only beat the Zacks Consensus Estimate of $9,232.1 million but also soared in excess of 100% from the year-ago quarter’s figure as people resorted to air travel during the holidays.
The uptick in air-travel demand in the United States can be gauged from the fact that 82.2% of Delta’s fourth-quarter 2021 passenger revenues came from the domestic markets. However, DAL expects to post a loss for the first quarter of 2022 due to omicron-led headwinds. The current crisis and its associated headwinds might hurt results further.
Owing to improved air-travel demand in the United States, American Airlines witnessed a 5.1% sequential increase in fourth-quarter 2021 passenger revenues. In fact, AAL attracted significant traffic during the Thanksgiving holiday period. This boosted the airline’s passenger revenues (up more than 100% year over year) in the fourth quarter of 2021.
However, due to the omicron-induced labor shortage, American Airlines is reducing capacity. Management expects system capacity for the March quarter of 2022 to decline in the 8-10% range from the figure reported in first-quarter 2019. Total revenues in the first quarter of the ongoing year are anticipated to decline in the 20-22% band from the level recorded in first-quarter 2019. Only time will tell, if the Russia-Ukraine strife further dims the already gloomy first-quarter outlook for AAL.
Like AAL and DAL, fourth-quarter revenues at United Airlines too surged more than 100% year over year, with passenger revenues, accounting for 84% of the top line, soaring 185.4% to $6,878 million.
However, United Airlines also expects first-quarter 2022 capacity to decline from the first-quarter 2019 levels. With the hike in fuel costs likely to hit traffic due to dearer ticket prices, capacity might be trimmed further.
Watch this space for more updates on the Russia-Ukraine conflict and its resultant impact on the airline stocks.
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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
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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Even before the ban was announced, airline majors like Delta Air Lines DAL and American Airlines AAL had already suspended their partnerships with Russian carriers. In fact, AAL attracted significant traffic during the Thanksgiving holiday period. Only time will tell, if the Russia-Ukraine strife further dims the already gloomy first-quarter outlook for AAL.
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Even before the ban was announced, airline majors like Delta Air Lines DAL and American Airlines AAL had already suspended their partnerships with Russian carriers. In fact, AAL attracted significant traffic during the Thanksgiving holiday period. Only time will tell, if the Russia-Ukraine strife further dims the already gloomy first-quarter outlook for AAL.
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Even before the ban was announced, airline majors like Delta Air Lines DAL and American Airlines AAL had already suspended their partnerships with Russian carriers. In fact, AAL attracted significant traffic during the Thanksgiving holiday period. Only time will tell, if the Russia-Ukraine strife further dims the already gloomy first-quarter outlook for AAL.
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Even before the ban was announced, airline majors like Delta Air Lines DAL and American Airlines AAL had already suspended their partnerships with Russian carriers. In fact, AAL attracted significant traffic during the Thanksgiving holiday period. Only time will tell, if the Russia-Ukraine strife further dims the already gloomy first-quarter outlook for AAL.
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3758.0
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2022-03-01 00:00:00 UTC
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U.S. to ban Russian flights from American airspace, officials say
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AAL
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https://www.nasdaq.com/articles/u.s.-to-ban-russian-flights-from-american-airspace-officials-say
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nan
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By David Shepardson
WASHINGTON, March 1 (Reuters) - The U.S. government is set to announce a ban on Russian flights from American airspace following similar moves by the European Union and Canada, government and industry officials told Reuters.
The precise timing is unclear but is expected within the next 24 hours, the sources said.
Late on Tuesday, United Airlines UAL.O said it has temporarily suspended flying over Russian airspace, joining other major U.S. carriers who have taken the step after Russia's invasion of Ukraine.
The White House, which declined to comment, held extensive talks with U.S. airlines in recent days.
United had been continuing to fly over Russian airspace to operate some flights to and from India in recent days. Delta Air Lines DAL.N, American Airlines AAL.O and United Parcel Service UPS.N all confirmed this week they had halted flights over Russia.
FedEx on Tuesday did not respond to emails asking if it has stopped flying over Russia.
United is canceling two flights to India for Tuesday and Wednesday as it evaluates how it could continue to operate via a different route that does not use Russian airspace.
White House officials had privately asked if the move would harm U.S. supply chains or have other negative impacts, sources told Reuters.
(Reporting by David Shepardson; Editing by Leslie Adler and Grant McCool)
((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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Delta Air Lines DAL.N, American Airlines AAL.O and United Parcel Service UPS.N all confirmed this week they had halted flights over Russia. Late on Tuesday, United Airlines UAL.O said it has temporarily suspended flying over Russian airspace, joining other major U.S. carriers who have taken the step after Russia's invasion of Ukraine. White House officials had privately asked if the move would harm U.S. supply chains or have other negative impacts, sources told Reuters.
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Delta Air Lines DAL.N, American Airlines AAL.O and United Parcel Service UPS.N all confirmed this week they had halted flights over Russia. By David Shepardson WASHINGTON, March 1 (Reuters) - The U.S. government is set to announce a ban on Russian flights from American airspace following similar moves by the European Union and Canada, government and industry officials told Reuters. Late on Tuesday, United Airlines UAL.O said it has temporarily suspended flying over Russian airspace, joining other major U.S. carriers who have taken the step after Russia's invasion of Ukraine.
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Delta Air Lines DAL.N, American Airlines AAL.O and United Parcel Service UPS.N all confirmed this week they had halted flights over Russia. By David Shepardson WASHINGTON, March 1 (Reuters) - The U.S. government is set to announce a ban on Russian flights from American airspace following similar moves by the European Union and Canada, government and industry officials told Reuters. Late on Tuesday, United Airlines UAL.O said it has temporarily suspended flying over Russian airspace, joining other major U.S. carriers who have taken the step after Russia's invasion of Ukraine.
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Delta Air Lines DAL.N, American Airlines AAL.O and United Parcel Service UPS.N all confirmed this week they had halted flights over Russia. Late on Tuesday, United Airlines UAL.O said it has temporarily suspended flying over Russian airspace, joining other major U.S. carriers who have taken the step after Russia's invasion of Ukraine. United had been continuing to fly over Russian airspace to operate some flights to and from India in recent days.
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3759.0
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2022-03-01 00:00:00 UTC
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American Airlines (AAL) Launches Revamped AAdvantage Program
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-launches-revamped-aadvantage-program
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nan
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American Airlines AAL has launched a revamped AAdvantage loyalty program by virtue of which members can use a single metric — loyalty points — to earn status. Under the system, one qualifying mile earned equals one loyalty point.
AAdvantage members can earn miles and loyalty points by flying, dining, shopping and using an AAdvantage credit card. The program enhances the travel experience of customers, by offering free checked bags, priority check-in, priority security and priority boarding when flying on either American Airlines or its oneworld Alliance partners.
For 2022, members will require 30,000 loyalty points to earn a Gold status, 75,000 loyalty points for Platinum, 125,000 for Platinum Pro and 200,000 for Executive Platinum. A status, once achieved, will be valid through Mar 31 of the next year.
American Airlines Group Inc. Price
American Airlines Group Inc. price | American Airlines Group Inc. Quote
American Airlines is expanding complimentary upgrade access for AAdvantage Gold and Platinum members to include all flights within North America irrespective of the flight distance. For travel beginning Mar 2, the airline will automatically request an upgrade if everyone in the reservation is eligible for one. Later this year, AAL will begin offering complimentary upgrades to one companion traveling on the same flight.
Zacks Rank & Key Picks
American Airlines carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Transportation sector are as follows:
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Shares of ArcBest have surged more than 44% in a year.
J.B. Hunt Transport Services JBHT sports a Zacks Rank #1. The company’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.2%.
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J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report
American Airlines Group Inc. (AAL): 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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American Airlines AAL has launched a revamped AAdvantage loyalty program by virtue of which members can use a single metric — loyalty points — to earn status. Later this year, AAL will begin offering complimentary upgrades to one companion traveling on the same flight. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines AAL has launched a revamped AAdvantage loyalty program by virtue of which members can use a single metric — loyalty points — to earn status. Later this year, AAL will begin offering complimentary upgrades to one companion traveling on the same flight.
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American Airlines AAL has launched a revamped AAdvantage loyalty program by virtue of which members can use a single metric — loyalty points — to earn status. Later this year, AAL will begin offering complimentary upgrades to one companion traveling on the same flight. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines AAL has launched a revamped AAdvantage loyalty program by virtue of which members can use a single metric — loyalty points — to earn status. Later this year, AAL will begin offering complimentary upgrades to one companion traveling on the same flight.
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3760.0
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2022-02-28 00:00:00 UTC
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Why Airline Shares Are Falling Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-falling-today
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nan
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nan
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What happened
The military conflict in Europe is adding a fresh complication to the travel industry's pandemic recovery. Shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and American Airlines Group (NASDAQ: AAL) all traded down as much as 5% on Monday as investors attempt to assess what comes next for the U.S.'s internationally focused airlines.
So what
Airline stocks are dealing with another unexpected headwind as the industry attempts to move past the pandemic. COVID-19 starved the industry of revenue, causing companies to take on significant debt to survive. As vaccines have gained traction, we've seen the beginnings of a recovery, though it will still take years for airlines to get their balance sheets back in order.
Image source: Getty Images.
The war in Europe threatens to further complicate the recovery. Full-service airlines like Delta, United, and American tend to generate higher margins on international flights, and access to all corners of the globe is a key selling point for an airline trying to win lucrative corporate contracts. But in response to Russia's invasion of Ukraine, airspace connecting Europe to Asia has been significantly restricted. At best, that is going to add to costs as airlines try to fly to all corners of the globe, and at worst, it means a cutoff in service to certain regions.
Delta is the U.S. airline with the most exposure to Russia, but the company on Friday suspended its codeshare with Russian national airline Aeroflot. (Codesharing is a common arrangement by which two or more airlines market the same flight, each using its own flight number.)
More broadly speaking, the international recovery was already trailing the domestic travel rebound. The conflict adds a new twist to any forecast for a return to normal, which could mean it will take longer than investors had hoped for these airlines to rebuild their balance sheets.
Throw in the higher oil prices due to the crisis -- fuel accounts for between 20% and 30% of an airline's total cost -- and there isn't much reason for investors to be excited about these companies right now.
Now what
The only reason for buying into airlines right now is a focus on the long term. The industry is unlikely to fly out of turbulence this year, and 2023 is still very much in doubt, but there is good reason to be bullish on long-term travel demand as the world recovers from the pandemic and we see the rising middle class in emerging markets become more mobile.
The International Air Transport Association, an airline trade group, forecasts global travel volume will grow 3.3% annually through 2040.
For those with the stomach to ride out the recovery, Delta in particular looks like a strong choice because of its best-in-class management, competitive cost structure, and international investments. But be forewarned that the recovery will take time, and as we have seen over the past two years, it is hard to predict what challenges lie ahead. There's no reason to rush to buy on Monday's downdraft.
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Lou Whiteman owns Delta Air Lines. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and American Airlines Group (NASDAQ: AAL) all traded down as much as 5% on Monday as investors attempt to assess what comes next for the U.S.'s internationally focused airlines. The conflict adds a new twist to any forecast for a return to normal, which could mean it will take longer than investors had hoped for these airlines to rebuild their balance sheets. Throw in the higher oil prices due to the crisis -- fuel accounts for between 20% and 30% of an airline's total cost -- and there isn't much reason for investors to be excited about these companies right now.
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Shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and American Airlines Group (NASDAQ: AAL) all traded down as much as 5% on Monday as investors attempt to assess what comes next for the U.S.'s internationally focused airlines. The International Air Transport Association, an airline trade group, forecasts global travel volume will grow 3.3% annually through 2040. The Motley Fool recommends Delta Air Lines.
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Shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and American Airlines Group (NASDAQ: AAL) all traded down as much as 5% on Monday as investors attempt to assess what comes next for the U.S.'s internationally focused airlines. Full-service airlines like Delta, United, and American tend to generate higher margins on international flights, and access to all corners of the globe is a key selling point for an airline trying to win lucrative corporate contracts. Delta is the U.S. airline with the most exposure to Russia, but the company on Friday suspended its codeshare with Russian national airline Aeroflot.
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Shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and American Airlines Group (NASDAQ: AAL) all traded down as much as 5% on Monday as investors attempt to assess what comes next for the U.S.'s internationally focused airlines. What happened The military conflict in Europe is adding a fresh complication to the travel industry's pandemic recovery. * 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!
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3761.0
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2022-02-28 00:00:00 UTC
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U.S. to extend international minimum flight requirement waivers over COVID
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AAL
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https://www.nasdaq.com/articles/u.s.-to-extend-international-minimum-flight-requirement-waivers-over-covid
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By David Shepardson
WASHINGTON, Feb 28 (Reuters) - The United States government on Monday proposed extending temporary waivers of international minimum flight requirements at some U.S. airports through late October due to COVID-19.
Airlines can lose their slots at some congested airports if they do not use them at least 80% of the time. The waivers have been in place since the pandemic began in March 2020. International passenger air travel in 2021 was down 46% to 61 million over 2019 levels, but up over the 34 million international air passengers in 2020.
The Federal Aviation Administration said it proposed extending temporary waivers of the requirements at New York’s John F. Kennedy International Airport and LaGuardia airport and Ronald Reagan Washington National Airport that were set to expire in October after petitions from airlines.
At four other U.S. airports where the FAA has a formal schedule-review process - Chicago O’Hare, Newark in New Jersey, Los Angeles and San Francisco - the agency proposes to extend credits to airlines for flights that were canceled in the pandemic as though those flights were operated.
The FAA said "based on global vaccination rates, changing infection rates and the threat of new virus strains, continued unpredictability of travel restrictions, and the disparity between demand for domestic air travel and demand for international air travel, extending the current limited, conditional waiver for international operations by all carriers, is reasonable."
The government said that American Airlines AAL.O, Delta Air Lines DAL.N and United Airlines UAL.O submitted a joint petition to "urgently request continued relief from standard international slot usage rules" during the 2022 summer season.
The airlines said the "COVID-19 pandemic continues to negatively impact worldwide air travel; the Omicron variant has caused governments to significantly restrict or control entry of passengers and airline crew members and unfortunately, the future remains unpredictable."
(Reporting by David Shepardson; editing by Grant McCool)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The government said that American Airlines AAL.O, Delta Air Lines DAL.N and United Airlines UAL.O submitted a joint petition to "urgently request continued relief from standard international slot usage rules" during the 2022 summer season. By David Shepardson WASHINGTON, Feb 28 (Reuters) - The United States government on Monday proposed extending temporary waivers of international minimum flight requirements at some U.S. airports through late October due to COVID-19. At four other U.S. airports where the FAA has a formal schedule-review process - Chicago O’Hare, Newark in New Jersey, Los Angeles and San Francisco - the agency proposes to extend credits to airlines for flights that were canceled in the pandemic as though those flights were operated.
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The government said that American Airlines AAL.O, Delta Air Lines DAL.N and United Airlines UAL.O submitted a joint petition to "urgently request continued relief from standard international slot usage rules" during the 2022 summer season. By David Shepardson WASHINGTON, Feb 28 (Reuters) - The United States government on Monday proposed extending temporary waivers of international minimum flight requirements at some U.S. airports through late October due to COVID-19. The waivers have been in place since the pandemic began in March 2020. International passenger air travel in 2021 was down 46% to 61 million over 2019 levels, but up over the 34 million international air passengers in 2020.
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The government said that American Airlines AAL.O, Delta Air Lines DAL.N and United Airlines UAL.O submitted a joint petition to "urgently request continued relief from standard international slot usage rules" during the 2022 summer season. By David Shepardson WASHINGTON, Feb 28 (Reuters) - The United States government on Monday proposed extending temporary waivers of international minimum flight requirements at some U.S. airports through late October due to COVID-19. The Federal Aviation Administration said it proposed extending temporary waivers of the requirements at New York’s John F. Kennedy International Airport and LaGuardia airport and Ronald Reagan Washington National Airport that were set to expire in October after petitions from airlines.
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The government said that American Airlines AAL.O, Delta Air Lines DAL.N and United Airlines UAL.O submitted a joint petition to "urgently request continued relief from standard international slot usage rules" during the 2022 summer season. By David Shepardson WASHINGTON, Feb 28 (Reuters) - The United States government on Monday proposed extending temporary waivers of international minimum flight requirements at some U.S. airports through late October due to COVID-19. Airlines can lose their slots at some congested airports if they do not use them at least 80% of the time.
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3762.0
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2022-02-28 00:00:00 UTC
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Colombia Cerrejon's coal output soars 89% in 2021 to 23.4 mln T
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AAL
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https://www.nasdaq.com/articles/colombia-cerrejons-coal-output-soars-89-in-2021-to-23.4-mln-t
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BOGOTA, Feb 28 (Reuters) - Colombian coal miner Cerrejon's production jumped 89% last year to 23.4 million tonnes, the company said in a statement on Monday, recovering from the hit from a three-month strike and the coronavirus pandemic in 2020.
Cerrejon was fully bought by top global miner and trader Glencore Plc GLEN.L last year, as the Swiss-based company snapped up the 66% of Cerrejon shares it did not yet own from rivals BHP Group BHP.AX and Anglo American AAL.L.
A Cerrejon spokesperson said they had no export figures to share.
"2021 was a year of recovery, where the priority was the health and safety of our collaborators. 2022 has begun with the acquisition of Cerrejon on the part of Glencore, which is a demonstration of confidence in us and the country," Cerrejon Chief Executive Claudia Bejarano said in the statement.
Colombia is a major global exporter of coal and royalties and taxes from the fuel are a top contributor to government coffers.
The government has not yet published official mining output figures for last year, but the energy minister has predicted coal output will have recovered 20% from the year before.
The private Colombian Mining Association has said coal production rose to 59.6 million tonnes in 2021, up from 49.3 million tonnes the prior year.
(Reporting by Julia Symmes Cobb Editing by Marguerita Choy)
((julia.cobb@thomsonreuters.com; +57-316-389-7187;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Cerrejon was fully bought by top global miner and trader Glencore Plc GLEN.L last year, as the Swiss-based company snapped up the 66% of Cerrejon shares it did not yet own from rivals BHP Group BHP.AX and Anglo American AAL.L. BOGOTA, Feb 28 (Reuters) - Colombian coal miner Cerrejon's production jumped 89% last year to 23.4 million tonnes, the company said in a statement on Monday, recovering from the hit from a three-month strike and the coronavirus pandemic in 2020. Colombia is a major global exporter of coal and royalties and taxes from the fuel are a top contributor to government coffers.
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Cerrejon was fully bought by top global miner and trader Glencore Plc GLEN.L last year, as the Swiss-based company snapped up the 66% of Cerrejon shares it did not yet own from rivals BHP Group BHP.AX and Anglo American AAL.L. BOGOTA, Feb 28 (Reuters) - Colombian coal miner Cerrejon's production jumped 89% last year to 23.4 million tonnes, the company said in a statement on Monday, recovering from the hit from a three-month strike and the coronavirus pandemic in 2020. The private Colombian Mining Association has said coal production rose to 59.6 million tonnes in 2021, up from 49.3 million tonnes the prior year.
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Cerrejon was fully bought by top global miner and trader Glencore Plc GLEN.L last year, as the Swiss-based company snapped up the 66% of Cerrejon shares it did not yet own from rivals BHP Group BHP.AX and Anglo American AAL.L. BOGOTA, Feb 28 (Reuters) - Colombian coal miner Cerrejon's production jumped 89% last year to 23.4 million tonnes, the company said in a statement on Monday, recovering from the hit from a three-month strike and the coronavirus pandemic in 2020. The government has not yet published official mining output figures for last year, but the energy minister has predicted coal output will have recovered 20% from the year before.
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Cerrejon was fully bought by top global miner and trader Glencore Plc GLEN.L last year, as the Swiss-based company snapped up the 66% of Cerrejon shares it did not yet own from rivals BHP Group BHP.AX and Anglo American AAL.L. BOGOTA, Feb 28 (Reuters) - Colombian coal miner Cerrejon's production jumped 89% last year to 23.4 million tonnes, the company said in a statement on Monday, recovering from the hit from a three-month strike and the coronavirus pandemic in 2020. A Cerrejon spokesperson said they had no export figures to share.
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3763.0
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2022-02-28 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Azul, American Airlines, JetBlue Airways and Spirit Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-azul-american-airlines-jetblue-airways-and-spirit
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For Immediate Release
Chicago, IL – February 28, 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: Azul AZUL, American Airlines AAL, JetBlue Airways JBLU and Spirit Airlines SAVE.
Here are highlights from Friday’s Analyst Blog:
Airline Stock Roundup: AAL, JBLU and More
In the past week, Azul reported a wider-than-expected loss per share for fourth-quarter 2021. However, the top line not only beat the Zacks Consensus Estimate but also improved in excess of 100% year over year, driven by the improvement in air-travel demand in Brazil. On the non-earnings front, American Airlines was the primary newsmaker when it announced the decision to reduce international flying this summer due to delivery delays of Boeing 787-8 jets.
Meanwhile, an expansion-related update was available fromJetBlue Airways as air-travel demand improved in the United States. Buoyed by the same factor, Spirit Airlines also announced its intention of launching an additional route this summer.
Recap of the Latest Top Stories
1. Azul, currently carrying a Zacks Rank #3 (Hold), incurred a loss (excluding 69 cents from non-recurring items) of 58 cents per share in the fourth quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 53 cents. The amount of loss, however, narrowed year over year. Total revenues of $668.4 million surpassed the Zacks Consensus Estimate of $628.7 million and increased more than 100% year over year as air-travel demand improved, courtesy of widespread vaccination programs in Brazil.
With more and more people taking to the skies, Azul’s passenger revenues, accounting for 91% of the top line, soared more than 100% year over year. Cargo and other revenues surged 30.8% year over year, primarily driven by upbeat demand for Azul’s logistics solutions. Consolidated traffic, measured in revenue passenger kilometers (RPKs), climbed 49.2% (up 46.9% domestic & 83.1% international) year over year.
Consolidated available seat kilometers (ASK), which gauges an airline's passenger-carrying capacity, advanced 46.5% from the same period last year with a 48.6% rise in international capacity. The same expanded 46.3% on the domestic front. Since traffic surge was less than the amount of capacity expansion, load factor (percentage of seats filled with passengers) improved 1.5 percentage points to 82.2%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. With Boeing likely to deliver only 10 787 Dreamliner jets to American Airlines in 2022 due to production issues compared to the original plan of 13, AAL is delaying the launch of one service, temporarily suspending some flights and reducing flight frequency on one route.
Despite reducing its international schedule this summer, American Airlines will offer nearly 6,000 peak-day departures. In a SEC filing, AAL said, “Our 787-8 aircraft are an essential part of our fleet. And despite the ongoing delay, we still have tremendous confidence in the aircraft and will continue to work with Boeing on their delivery.”
3. In a bid to expand its network, JetBlue launched non-stop flights between New York’s John F. Kennedy International Airport (JFK) and Puerto Vallarta’s Gustavo Diaz Ordaz International Airport, expanding its presence in Mexico. The Puerto Vallarta service, which began on Feb 19, will operate four times a week. Puerto Vallarta is the third destination being served by JetBlue in Mexico.
JetBlue was in the news recently when it decided to expand its fleet by ordering more Airbus A220s. JetBlue’s fleet-related news was reported in detail in the previous week’s write-up.
4. Owing to upbeat air-travel demand in the United States, Spirit Airlines reportedly intends to launch nonstop seasonal flights connecting Milwaukee Mitchell International Airport and Myrtle Beach, SC, this summer. The flights will operate from May 27. Initially, they will ply on Fridays and Mondays. However, from Jun 17, the service that will run through Labor Day weekend will be available on Mondays, Wednesdays and Fridays. Evidently, Myrtle Beach is SAVE’s ninth non-stop destination from Milwaukee.
What's Next in the Airline Space?
With the earnings season over in the airline space, stay tuned for the usual news updates in the space.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
AZUL (AZUL): 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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Here are highlights from Friday’s Analyst Blog: Airline Stock Roundup: AAL, JBLU and More In the past week, Azul reported a wider-than-expected loss per share for fourth-quarter 2021. Stocks recently featured in the blog include: Azul AZUL, American Airlines AAL, JetBlue Airways JBLU and Spirit Airlines SAVE. With Boeing likely to deliver only 10 787 Dreamliner jets to American Airlines in 2022 due to production issues compared to the original plan of 13, AAL is delaying the launch of one service, temporarily suspending some flights and reducing flight frequency on one route.
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Stocks recently featured in the blog include: Azul AZUL, American Airlines AAL, JetBlue Airways JBLU and Spirit Airlines SAVE. Here are highlights from Friday’s Analyst Blog: Airline Stock Roundup: AAL, JBLU and More In the past week, Azul reported a wider-than-expected loss per share for fourth-quarter 2021. With Boeing likely to deliver only 10 787 Dreamliner jets to American Airlines in 2022 due to production issues compared to the original plan of 13, AAL is delaying the launch of one service, temporarily suspending some flights and reducing flight frequency on one route.
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Stocks recently featured in the blog include: Azul AZUL, American Airlines AAL, JetBlue Airways JBLU and Spirit Airlines SAVE. Here are highlights from Friday’s Analyst Blog: Airline Stock Roundup: AAL, JBLU and More In the past week, Azul reported a wider-than-expected loss per share for fourth-quarter 2021. With Boeing likely to deliver only 10 787 Dreamliner jets to American Airlines in 2022 due to production issues compared to the original plan of 13, AAL is delaying the launch of one service, temporarily suspending some flights and reducing flight frequency on one route.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report Stocks recently featured in the blog include: Azul AZUL, American Airlines AAL, JetBlue Airways JBLU and Spirit Airlines SAVE. Here are highlights from Friday’s Analyst Blog: Airline Stock Roundup: AAL, JBLU and More In the past week, Azul reported a wider-than-expected loss per share for fourth-quarter 2021.
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3764.0
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2022-02-25 00:00:00 UTC
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Airline Stock Roundup: Azul Posts Loss in Q4, AAL, JBLU in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-azul-posts-loss-in-q4-aal-jblu-in-focus
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nan
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In the past week, Azul AZUL reported a wider-than-expected loss per share for fourth-quarter 2021. However, the top line not only beat the Zacks Consensus Estimate but also improved in excess of 100% year over year, driven by the improvement in air-travel demand in Brazil. On the non-earnings front, American Airlines AAL was the primary newsmaker when it announced the decision to reduce international flying this summer due to delivery delays of Boeing 787-8 jets.
Meanwhile, an expansion-related update was available from JetBlue Airways JBLU as air-travel demand improved in the United States. Buoyed by the same factor, Spirit Airlines SAVE also announced its intention of launching an additional route this summer.
Recap of the Latest Top Stories
1. Azul, currently carrying a Zacks Rank #3 (Hold), incurred a loss (excluding 69 cents from non-recurring items) of 58 cents per share in the fourth quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 53 cents. The amount of loss, however, narrowed year over year. Total revenues of $668.4 million surpassed the Zacks Consensus Estimate of $628.7 million and increased more than 100% year over year as air-travel demand improved, courtesy of widespread vaccination programs in Brazil.
With more and more people taking to the skies, Azul’s passenger revenues, accounting for 91% of the top line, soared more than 100% year over year. Cargo and other revenues surged 30.8% year over year, primarily driven by upbeat demand for Azul’s logistics solutions. Consolidated traffic, measured in revenue passenger kilometers (RPKs), climbed 49.2% (up 46.9% domestic & 83.1% international) year over year. Consolidated available seat kilometers (ASK), which gauges an airline's passenger-carrying capacity, advanced 46.5% from the same period last year with a 48.6% rise in international capacity. The same expanded 46.3% on the domestic front. Since traffic surge was less than the amount of capacity expansion, load factor (percentage of seats filled with passengers) improved 1.5 percentage points to 82.2%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. With Boeing likely to deliver only 10 787 Dreamliner jets to American Airlines in 2022 due to production issues compared to the original plan of 13, AAL is delaying the launch of one service, temporarily suspending some flights and reducing flight frequency on one route. Despite reducing its international schedule this summer, American Airlines will offer nearly 6,000 peak-day departures. In a SEC filing, AAL said, “Our 787-8 aircraft are an essential part of our fleet. And despite the ongoing delay, we still have tremendous confidence in the aircraft and will continue to work with Boeing on their delivery.”
3. In a bid to expand its network, JetBlue launched non-stop flights between New York’s John F. Kennedy International Airport (JFK) and Puerto Vallarta’s Gustavo Diaz Ordaz International Airport, expanding its presence in Mexico. The Puerto Vallarta service, which began on Feb 19, will operate four times a week. Puerto Vallarta is the third destination being served by JetBlue in Mexico.
JetBlue was in the news recently when it decided to expand its fleet by ordering more Airbus A220s. JetBlue’s fleet-related news was reported in detail in the previous week’s write-up.
4. Owing to upbeat air-travel demand in the United States, Spirit Airlines reportedly intends to launch nonstop seasonal flights connecting Milwaukee Mitchell International Airport and Myrtle Beach, SC, this summer. The flights will operate from May 27. Initially, they will ply on Fridays and Mondays. However, from Jun 17, the service that will run through Labor Day weekend will be available on Mondays, Wednesdays and Fridays. Evidently, Myrtle Beach is SAVE’s ninth non-stop destination from Milwaukee.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that almost all airline stocks traded in the red over the past week due to the Russia/Ukraine tensions. The NYSE ARCA Airline Index increased 4.9% to $89.73. Over the course of the past six months, the NYSE ARCA Airline Index declined 10.4%.
What's Next in the Airline Space?
With the earnings season over in the airline space, stay tuned for the usual news updates in the space.
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
AZUL (AZUL): 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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On the non-earnings front, American Airlines AAL was the primary newsmaker when it announced the decision to reduce international flying this summer due to delivery delays of Boeing 787-8 jets. With Boeing likely to deliver only 10 787 Dreamliner jets to American Airlines in 2022 due to production issues compared to the original plan of 13, AAL is delaying the launch of one service, temporarily suspending some flights and reducing flight frequency on one route. In a SEC filing, AAL said, “Our 787-8 aircraft are an essential part of our fleet.
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On the non-earnings front, American Airlines AAL was the primary newsmaker when it announced the decision to reduce international flying this summer due to delivery delays of Boeing 787-8 jets. With Boeing likely to deliver only 10 787 Dreamliner jets to American Airlines in 2022 due to production issues compared to the original plan of 13, AAL is delaying the launch of one service, temporarily suspending some flights and reducing flight frequency on one route. In a SEC filing, AAL said, “Our 787-8 aircraft are an essential part of our fleet.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report On the non-earnings front, American Airlines AAL was the primary newsmaker when it announced the decision to reduce international flying this summer due to delivery delays of Boeing 787-8 jets. With Boeing likely to deliver only 10 787 Dreamliner jets to American Airlines in 2022 due to production issues compared to the original plan of 13, AAL is delaying the launch of one service, temporarily suspending some flights and reducing flight frequency on one route.
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On the non-earnings front, American Airlines AAL was the primary newsmaker when it announced the decision to reduce international flying this summer due to delivery delays of Boeing 787-8 jets. With Boeing likely to deliver only 10 787 Dreamliner jets to American Airlines in 2022 due to production issues compared to the original plan of 13, AAL is delaying the launch of one service, temporarily suspending some flights and reducing flight frequency on one route. In a SEC filing, AAL said, “Our 787-8 aircraft are an essential part of our fleet.
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3765.0
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2022-02-25 00:00:00 UTC
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First Week of April 8th Options Trading For American Airlines Group
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AAL
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https://www.nasdaq.com/articles/first-week-of-april-8th-options-trading-for-american-airlines-group
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the April 8th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 8th 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 $1.19. 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 $15.81 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $17.19/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 56%. 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 7.00% return on the cash commitment, or 60.89% 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 $1.16. If an investor was to purchase shares of AAL stock at the current price level of $17.19/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 8.55% if the stock gets called away at the April 8th 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 6.75% boost of extra return to the investor, or 58.70% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 59%, while the implied volatility in the call contract example is 58%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $17.19) to be 46%. 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 April 8th 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 April 8th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 8th 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 April 8th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 8th 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 April 8th 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 $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 April 8th expiration.
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3766.0
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2022-02-24 00:00:00 UTC
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Why Airline Stocks Fell This Morning
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-fell-this-morning
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nan
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nan
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What happened
Russia's military move into Ukraine hit Wall Street on Thursday morning, and airlines were among the hardest hit sectors. Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) all fell as much as 7% at the open, and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) all fell 5% or more.
So what
It's been a tough few years for the airline sector, as the pandemic caused travel demand to evaporate and left airlines scrambling to raise cash and ride out the storm. We've seen a gradual uptick in demand over the past year, but the industry remains in a fragile state.
Image source: Getty Images.
The prospect of war only adds to the sector's concerns. It will take time to figure out what, if anything, the invasion means for international travel. But we do know it has caused oil prices to spike higher. Fuel expenses represent between 20% and 30% of an airline's total costs, and higher oil prices will almost certainly hit airline profit and loss statements.
Airlines have the wherewithal to survive higher oil prices, and as long as domestic demand holds up as expected during the summer vacation months the carriers should be able to pass at least some of the higher costs on to travelers.
But the market hates uncertainty, and on a day where there is an abundance of uncertainty airline stocks are not getting the benefit of the doubt.
Now what
If the pandemic has taught us anything, it is that you never really know what will come next or how big of an impact each new development will have. War, presumably, is similar, and it is all but impossible to know what the coming weeks and months will bring. There could easily be more down days than up days in the weeks to come.
But for long-term holders able to look past the near-term chaos, there is every reason to be bullish on the global travel sector. A rising global middle class should provide ample demand for travel, with passenger volumes forecast to grow 3.3% annually through 2040.
Investors willing to buy into individual carriers and hope for the best should focus on top operators like Delta and Southwest. United and American both should have ample resources to make it through difficult times ahead, but they do not have the balance sheets to compete with the top names.
For those interested in aviation but not eager to tie their dollars to any one carrier, an aircraft leasing firm like AerCap Holdings that does business with a wide range of international carriers might be a better choice.
Anyone buying in today or holding through the crisis should keep their seatbelts fastened and brace for turbulence. Given the events of this week, it appears calmer skies are still a ways off.
10 stocks we like better than Southwest Airlines
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Lou Whiteman owns AerCap Holdings, Delta Air Lines, and Spirit Airlines. The Motley Fool owns and recommends Spirit Airlines. The Motley Fool recommends AerCap Holdings, 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), and Spirit Airlines (NYSE: SAVE) all fell as much as 7% at the open, and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) all fell 5% or more. A rising global middle class should provide ample demand for travel, with passenger volumes forecast to grow 3.3% annually through 2040. United and American both should have ample resources to make it through difficult times ahead, but they do not have the balance sheets to compete with the top names.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) all fell as much as 7% at the open, and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) all fell 5% or more. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Lou Whiteman owns AerCap Holdings, Delta Air Lines, and Spirit Airlines. The Motley Fool recommends AerCap Holdings, Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) all fell as much as 7% at the open, and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) all fell 5% or more. So what It's been a tough few years for the airline sector, as the pandemic caused travel demand to evaporate and left airlines scrambling to raise cash and ride out the storm. Airlines have the wherewithal to survive higher oil prices, and as long as domestic demand holds up as expected during the summer vacation months the carriers should be able to pass at least some of the higher costs on to travelers.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) all fell as much as 7% at the open, and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) all fell 5% or more. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Lou Whiteman owns AerCap Holdings, Delta Air Lines, and Spirit Airlines.
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3767.0
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2022-02-24 00:00:00 UTC
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Miner Anglo American posts record profit and boosts dividend
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AAL
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https://www.nasdaq.com/articles/miner-anglo-american-posts-record-profit-and-boosts-dividend
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nan
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By Clara Denina and Zandi Shabalala
LONDON, Feb 24 (Reuters) - Global miner Anglo American AAL.L posted record full-year earnings on Thursday, helped by bumper commodity prices, and boosted shareholder payouts for the year to $6.2 billion.
Anglo declared a final dividend of $2.1 billion, and a special dividend of 0.5 cents per share. Its total $6.2 billion also includes a $1 billion share buyback announced in August.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $20.6 billion in 2021, up from $9.8 billion the previous year and broadly in line with an average forecast of $20.5 billion from 14 analysts compiled by Vuma.
"These are clearly the strongest results we have ever posted," Chief Executive Mark Cutifani told reporters.
"Copper and PGMs (platinum group metals) – essential to the global decarbonisation imperative – and premium quality iron ore for greener steelmaking, supported by an improving market for diamonds, all contributed to a record financial performance," he added.
Anglo's results are the last of a bumper earnings season that saw rival miners Rio Tinto RIO.L, RIO.AX, BHP Group BHP.AX and Antofagasta ANTO.L return record payouts to shareholders as surging commodity prices buoyed profits.
The London-listed miner's net debt dropped to $3.8 billion by the end of 2021, down from $5.5 billion a year earlier.
(Reporting by Zandi Shabalala and Clara Denina Editing by David Goodman)
((zandi.shabalala@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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By Clara Denina and Zandi Shabalala LONDON, Feb 24 (Reuters) - Global miner Anglo American AAL.L posted record full-year earnings on Thursday, helped by bumper commodity prices, and boosted shareholder payouts for the year to $6.2 billion. "Copper and PGMs (platinum group metals) – essential to the global decarbonisation imperative – and premium quality iron ore for greener steelmaking, supported by an improving market for diamonds, all contributed to a record financial performance," he added. Anglo's results are the last of a bumper earnings season that saw rival miners Rio Tinto RIO.L, RIO.AX, BHP Group BHP.AX and Antofagasta ANTO.L return record payouts to shareholders as surging commodity prices buoyed profits.
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By Clara Denina and Zandi Shabalala LONDON, Feb 24 (Reuters) - Global miner Anglo American AAL.L posted record full-year earnings on Thursday, helped by bumper commodity prices, and boosted shareholder payouts for the year to $6.2 billion. Anglo's results are the last of a bumper earnings season that saw rival miners Rio Tinto RIO.L, RIO.AX, BHP Group BHP.AX and Antofagasta ANTO.L return record payouts to shareholders as surging commodity prices buoyed profits. (Reporting by Zandi Shabalala and Clara Denina Editing by David Goodman) ((zandi.shabalala@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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By Clara Denina and Zandi Shabalala LONDON, Feb 24 (Reuters) - Global miner Anglo American AAL.L posted record full-year earnings on Thursday, helped by bumper commodity prices, and boosted shareholder payouts for the year to $6.2 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $20.6 billion in 2021, up from $9.8 billion the previous year and broadly in line with an average forecast of $20.5 billion from 14 analysts compiled by Vuma. Anglo's results are the last of a bumper earnings season that saw rival miners Rio Tinto RIO.L, RIO.AX, BHP Group BHP.AX and Antofagasta ANTO.L return record payouts to shareholders as surging commodity prices buoyed profits.
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By Clara Denina and Zandi Shabalala LONDON, Feb 24 (Reuters) - Global miner Anglo American AAL.L posted record full-year earnings on Thursday, helped by bumper commodity prices, and boosted shareholder payouts for the year to $6.2 billion. Anglo declared a final dividend of $2.1 billion, and a special dividend of 0.5 cents per share. Its total $6.2 billion also includes a $1 billion share buyback announced in August.
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3768.0
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2022-02-24 00:00:00 UTC
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Anglo American reports record profits for 2021, boosts dividend
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AAL
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https://www.nasdaq.com/articles/anglo-american-reports-record-profits-for-2021-boosts-dividend
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nan
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nan
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LONDON, Feb 24 (Reuters) - Global miner Anglo American AAL.L posted record full-year earnings on Thursday, helped by bumper commodity prices, and boosted shareholder payouts for the year to $6.2 billion.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $20.6 billion in 2021, up from $9.8 billion the previous year and broadly in line with an average forecast of $20.5 billion from 14 analysts compiled by Vuma.
Anglo declared a final dividend of $2.1 billion, and a special dividend of 0.5 cents per share.
(Reporting by Zandi Shabalala Editing by David Goodman )
((zandi.shabalala@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, Feb 24 (Reuters) - Global miner Anglo American AAL.L posted record full-year earnings on Thursday, helped by bumper commodity prices, and boosted shareholder payouts for the year to $6.2 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $20.6 billion in 2021, up from $9.8 billion the previous year and broadly in line with an average forecast of $20.5 billion from 14 analysts compiled by Vuma. (Reporting by Zandi Shabalala Editing by David Goodman ) ((zandi.shabalala@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, Feb 24 (Reuters) - Global miner Anglo American AAL.L posted record full-year earnings on Thursday, helped by bumper commodity prices, and boosted shareholder payouts for the year to $6.2 billion. Anglo declared a final dividend of $2.1 billion, and a special dividend of 0.5 cents per share. (Reporting by Zandi Shabalala Editing by David Goodman ) ((zandi.shabalala@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, Feb 24 (Reuters) - Global miner Anglo American AAL.L posted record full-year earnings on Thursday, helped by bumper commodity prices, and boosted shareholder payouts for the year to $6.2 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $20.6 billion in 2021, up from $9.8 billion the previous year and broadly in line with an average forecast of $20.5 billion from 14 analysts compiled by Vuma. (Reporting by Zandi Shabalala Editing by David Goodman ) ((zandi.shabalala@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, Feb 24 (Reuters) - Global miner Anglo American AAL.L posted record full-year earnings on Thursday, helped by bumper commodity prices, and boosted shareholder payouts for the year to $6.2 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $20.6 billion in 2021, up from $9.8 billion the previous year and broadly in line with an average forecast of $20.5 billion from 14 analysts compiled by Vuma. Anglo declared a final dividend of $2.1 billion, and a special dividend of 0.5 cents per share.
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3769.0
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2022-02-23 00:00:00 UTC
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Notable Wednesday Option Activity: CSGP, AAL, VVI
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AAL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-csgp-aal-vvi
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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 CoStar Group, Inc. (Symbol: CSGP), where a total of 8,861 contracts have traded so far, representing approximately 886,100 underlying shares. That amounts to about 43.5% of CSGP's average daily trading volume over the past month of 2.0 million shares. Particularly high volume was seen for the $50 strike put option expiring March 18, 2022, with 2,827 contracts trading so far today, representing approximately 282,700 underlying shares of CSGP. Below is a chart showing CSGP's trailing twelve month trading history, with the $50 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 170,767 contracts thus far today. That number of contracts represents approximately 17.1 million underlying shares, working out to a sizeable 43.4% of AAL's average daily trading volume over the past month, of 39.3 million shares. Especially high volume was seen for the $18 strike call option expiring February 25, 2022, with 17,543 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $18 strike highlighted in orange:
And Viad Corp. (Symbol: VVI) options are showing a volume of 529 contracts thus far today. That number of contracts represents approximately 52,900 underlying shares, working out to a sizeable 43.2% of VVI's average daily trading volume over the past month, of 122,330 shares. Particularly high volume was seen for the $22.50 strike put option expiring September 16, 2022, with 500 contracts trading so far today, representing approximately 50,000 underlying shares of VVI. Below is a chart showing VVI's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
For the various different available expirations for CSGP options, AAL options, or VVI 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 $18 strike call option expiring February 25, 2022, with 17,543 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Below is a chart showing CSGP's trailing twelve month trading history, with the $50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 170,767 contracts thus far today. That number of contracts represents approximately 17.1 million underlying shares, working out to a sizeable 43.4% of AAL's average daily trading volume over the past month, of 39.3 million shares.
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Below is a chart showing CSGP's trailing twelve month trading history, with the $50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 170,767 contracts thus far today. That number of contracts represents approximately 17.1 million underlying shares, working out to a sizeable 43.4% of AAL's average daily trading volume over the past month, of 39.3 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $18 strike highlighted in orange: And Viad Corp. (Symbol: VVI) options are showing a volume of 529 contracts thus far today.
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Especially high volume was seen for the $18 strike call option expiring February 25, 2022, with 17,543 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Below is a chart showing VVI's trailing twelve month trading history, with the $22.50 strike highlighted in orange: For the various different available expirations for CSGP options, AAL options, or VVI options, visit StockOptionsChannel.com. Below is a chart showing CSGP's trailing twelve month trading history, with the $50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 170,767 contracts thus far today.
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Especially high volume was seen for the $18 strike call option expiring February 25, 2022, with 17,543 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Below is a chart showing VVI's trailing twelve month trading history, with the $22.50 strike highlighted in orange: For the various different available expirations for CSGP options, AAL options, or VVI options, visit StockOptionsChannel.com. Below is a chart showing CSGP's trailing twelve month trading history, with the $50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 170,767 contracts thus far today.
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3770.0
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2022-02-23 00:00:00 UTC
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JetBlue (JBLU) Begins New York-Puerto Vallarta Nonstop Flights
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AAL
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https://www.nasdaq.com/articles/jetblue-jblu-begins-new-york-puerto-vallarta-nonstop-flights
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nan
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nan
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JetBlue Airways JBLU recently launched nonstop flights between New York’s John F. Kennedy International Airport (JFK) and Puerto Vallarta’s Gustavo Diaz Ordaz International Airport, expanding its presence in Mexico. With air-travel demand continuing to improve, the airline’s measures to expand its network are encouraging.
The Puerto Vallarta service, which began on Feb 19, will operate four times a week. Puerto Vallarta is the third destination being served by JetBlue in Mexico. The new service expands the airline’s presence in Latin America and the Caribbean, while simultaneously widening its base in the New York focus city.
The service is a part of JBLU’s Northeast Alliance (“NEA”) with American Airlines AAL. Previously, the two airlines had announced plans to expand their global footprint under the partnership.
JetBlue Airways Corporation Price
JetBlue Airways Corporation price | JetBlue Airways Corporation Quote
Under the NEA, American Airlines will begin new nonstop service between New York JFK and Doha, Qatar’s Hamad International Airport, in June 2022.
From Boston, MA, American Airlines announced new nonstop services to Halifax, Nova Scotia; Louisville, KY; Memphis, TN; Pensacola, FL; and Traverse City, MI for 2022.
As part of the partnership, JetBlue and American Airlines will offer more than 700 daily flights from New York and Boston next summer.
Coming back to JetBlue’s newly launched Puerto Vallarta service, both Airbus A321neo and A320 jets are being utilized to operate the route. The aircraft features the most legroom in coach and Fly-Fi broadband internet services, among other modern amenities.
Both JetBlue and American Airlines carry a Zacks Rank #3 (Hold).
A Key Pick
A top-ranked stock in the airline space is Controladora Vuela Compania de Aviacion, B. de C.V VLRS.
Controladora Vuela flaunts a Zacks Rank #1 (Strong Buy). The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 441.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Controladora Vuela have rallied more than 34% in a year.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers 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
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The service is a part of JBLU’s Northeast Alliance (“NEA”) with American Airlines AAL. American Airlines Group Inc. (AAL): Free Stock Analysis Report The new service expands the airline’s presence in Latin America and the Caribbean, while simultaneously widening its base in the New York focus city.
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The service is a part of JBLU’s Northeast Alliance (“NEA”) with American Airlines AAL. American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways JBLU recently launched nonstop flights between New York’s John F. Kennedy International Airport (JFK) and Puerto Vallarta’s Gustavo Diaz Ordaz International Airport, expanding its presence in Mexico.
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The service is a part of JBLU’s Northeast Alliance (“NEA”) with American Airlines AAL. American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation Price JetBlue Airways Corporation price | JetBlue Airways Corporation Quote Under the NEA, American Airlines will begin new nonstop service between New York JFK and Doha, Qatar’s Hamad International Airport, in June 2022.
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The service is a part of JBLU’s Northeast Alliance (“NEA”) with American Airlines AAL. American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways JBLU recently launched nonstop flights between New York’s John F. Kennedy International Airport (JFK) and Puerto Vallarta’s Gustavo Diaz Ordaz International Airport, expanding its presence in Mexico.
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3771.0
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2022-02-23 00:00:00 UTC
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3 Ultra-Popular Stocks That Can Plummet Up to 65%, According to Wall Street
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AAL
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https://www.nasdaq.com/articles/3-ultra-popular-stocks-that-can-plummet-up-to-65-according-to-wall-street
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nan
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nan
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Wall Street and investors have been given a not-so-subtle reminder since the beginning of the year that stock market corrections, and even crashes, are a normal part of the investing cycle. Both the benchmark S&P 500 and growth-dependent Nasdaq Composite are enduring their steepest pullbacks since the coronavirus crash nearly two years ago.
But for a handful of ultra-popular stocks, the pain could just be getting started. According to a select group of Wall Street analysts and investment banks, the following trio of widely held companies could plunge by as much as 65%.
Image source: Getty Images.
Moderna: Implied downside of 41%
Throughout much of 2021, analyst Mani Foroohar of SVB Leerink maintained an underperform rating on biotech stock Moderna (NASDAQ: MRNA) and held firm to a price target of $85. It wasn't until the fourth quarter that Foroohar relented and increased his firm's price target by... one dollar... to $86. All the while, Moderna's shares nearly hit $500 in August.
Yet, Foroohar's prognostication is beginning to look more prescient than ever. Moderna has declined by more than 70% since hitting its intra-day peak, and it now sits only a 41% decline away from hitting SVB Leerink's price target.
Moderna became something of a household name during the pandemic. The company's coronavirus disease 2019 (COVID-19) vaccine, mRNA-1273, is still one of only three COVID-19 vaccines to have hit or surpassed a vaccine efficacy of 90% in clinical trials. This allowed Moderna and Pfizer/BioNTech to gobble up the proverbial low-hanging fruit when it came to COVID-19 inoculations in developed markets.
The company is also benefiting from the mutability of the SARS-CoV-2 virus. While new variants of COVID-19 are bad news for the world, they're great for Moderna. Every new variant provides Moderna with an opportunity to offer initial inoculations and booster shots, as well as develop combination vaccines (like influenza and COVID-19) or variant-specific vaccines. In other words, it's the company's ticket to recurring revenue.
Then again, Moderna's only revenue-producing treatment is mRNA-1273. Even though COVID-19 is a big-dollar opportunity, Moderna was once valued at close to a $200 billion market cap despite having only one product on pharmacy shelves. Even now, with the company's market cap at $59 billion, Moderna remains risky given that COVID-19 vaccine and oral therapy competition is picking up.
It could be years before Moderna is generating revenue from other channels, making it a higher-risk investment.
Image source: American Airlines.
American Airlines Group: Implied downside of 33%
Another ultra-popular stock that Wall Street believes will plummet is American Airlines Group (NASDAQ: AAL).
While a sizable number of analysts are expecting American Airlines' stock to maintain altitude, Joseph DeNardi of Stifel Nicolaus has just a $12 price target on the company. If DeNardi's target were to come to fruition, shares would lose a third of their value, as of this past weekend.
American Airlines optimists frequently point to the company as a clear-cut turnaround play. Assuming air travel returns to some semblance of normal, American would be valued at a mid-to-high single-digit price-to-earnings ratio.
Aside from being viewed as a deep-discount value play by bullish investors, American Airlines also happens to be one of the most consistently short-sold stocks. As of the end of January, just shy of 100 million shares were held short, relative to a float of 641.6 million shares. If the company is able to successfully navigate these challenging times, there's hope for a short squeeze.
But unlike Moderna, which is rolling in profits and should enjoy at least some degree of recurring revenue and positive operating cash flow, the airline industry has shown time and again that it can't deal with sustained economic shocks. This is especially true of American Airlines.
Even with a return to profitability forecast by Wall Street in 2023, American Airlines' future is as precarious as ever. While the company ended 2021 with record liquidity, it's also lugging around more than $46 billion in various forms of debt and operating lease liabilities. This means the company's interest expenses have soared.
The company's beleaguered balance sheet, coupled with an expected jump in fuel costs, makes it a stock that investors should avoid.
From left to right: A Tesla Model S, Model 3, Model X, and Model Y parked at a Supercharger station. Image source: Tesla.
Tesla Motors: Implied downside of 65%
However, the disaster du jour might just be electric vehicle (EV) kingpin Tesla Motors (NASDAQ: TSLA).
Analyst Toni Sacconaghi of Bernstein has held an underperform rating and $300 price target on Tesla for many months. With shares closing last week at nearly $857, it implies downside of 65% and a projected loss of almost $576 billion in market value. As a reminder, Tesla was a $1 trillion company as recently as a few weeks ago.
The bull case for Tesla predominantly revolves around its first-mover advantages. The company began 2021 with ambitions of delivering 750,000 EVs, but ultimately ended the year with over 936,000 deliveries. With two new gigafactories set to come online this year in Austin, Texas and Germany, Tesla has a real shot to sustain year-over-year production growth of 50% in the near term.
The company has also overcome capital concerns and profitability questions. It ended last year with $17.6 billion in cash and cash equivalents, and most importantly generated significant net income in three of the last four quarters, without regulatory credits accounting for the lion's share of that income.
But there's a lot to not like as well. For example, EV competition is picking up in a big way globally. Though Tesla may have advantages with its battery capacity, power, and range at the moment, it's uncertain how much longer these advantages will persist. Most automakers are rich in history and have the infrastructure necessary to ramp up EV production.
Tesla and its CEO Elon Musk also have a habit of overpromising and under-delivering. For instance, Musk initially expected to roll out the Cybertruck in 2021. Its initial launch date has since been pushed back till 2023. Likewise, full self-driving hasn't reached the level of autonomy that Musk has promised for years. In other words, Tesla's visionary CEO can be a liability at times, too.
With a nosebleed valuation in an industry known for its single-digit price-to-earnings multiples, Tesla still has a lot to prove.
10 stocks we like better than Moderna Inc.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns and recommends Tesla. The Motley Fool recommends Moderna Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group: Implied downside of 33% Another ultra-popular stock that Wall Street believes will plummet is American Airlines Group (NASDAQ: AAL). Wall Street and investors have been given a not-so-subtle reminder since the beginning of the year that stock market corrections, and even crashes, are a normal part of the investing cycle. While a sizable number of analysts are expecting American Airlines' stock to maintain altitude, Joseph DeNardi of Stifel Nicolaus has just a $12 price target on the company.
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American Airlines Group: Implied downside of 33% Another ultra-popular stock that Wall Street believes will plummet is American Airlines Group (NASDAQ: AAL). Moderna: Implied downside of 41% Throughout much of 2021, analyst Mani Foroohar of SVB Leerink maintained an underperform rating on biotech stock Moderna (NASDAQ: MRNA) and held firm to a price target of $85. But unlike Moderna, which is rolling in profits and should enjoy at least some degree of recurring revenue and positive operating cash flow, the airline industry has shown time and again that it can't deal with sustained economic shocks.
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American Airlines Group: Implied downside of 33% Another ultra-popular stock that Wall Street believes will plummet is American Airlines Group (NASDAQ: AAL). Moderna: Implied downside of 41% Throughout much of 2021, analyst Mani Foroohar of SVB Leerink maintained an underperform rating on biotech stock Moderna (NASDAQ: MRNA) and held firm to a price target of $85. While a sizable number of analysts are expecting American Airlines' stock to maintain altitude, Joseph DeNardi of Stifel Nicolaus has just a $12 price target on the company.
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American Airlines Group: Implied downside of 33% Another ultra-popular stock that Wall Street believes will plummet is American Airlines Group (NASDAQ: AAL). Even with a return to profitability forecast by Wall Street in 2023, American Airlines' future is as precarious as ever. 10 stocks we like better than Moderna Inc.
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3772.0
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2022-02-22 00:00:00 UTC
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South Africa's Kumba Iron Ore full-year profit up 46%
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AAL
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https://www.nasdaq.com/articles/south-africas-kumba-iron-ore-full-year-profit-up-46-0
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nan
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nan
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Adds details
HARARE, Feb 22 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 46% jump in full-year profit, boosted by higher iron ore prices and cost cutting measures implemented by the company.
Its headline earnings per share (HEPS) - the main profit measure for South African companies - was 103.65 rand ($6.83) for the year ended Dec. 31, compared with 71.07 rand in 2020.
The company, among the world's top five iron ore producers, announced a dividend of 30.50 rand per share, taking the full year dividend to 103.20 rand per share.
While the price of the commodity closed 2021 with a fall of around 20% TIOc1, this drop came after the prices hit an all-time high of around $220 per dry metric tonne (dmt) in July on the back of a pent up steel demand from construction projects, real estate and automotive industry, especially led by China.
This helped iron ore companies such as Kumba to declare big dividends and post huge profits.
The subsidiary of London-listed Anglo American Plc AAL.L said it aimed to produce between 39 and 41 million tonnes in 2022, up from 40.3 million tonnes last year.
Kumba was forced to revise its 2021 sales guidance to 39-40 million tonnes last year due to weather and logistical challenges in South Africa.
($1 = 15.1829 rand)
(Reporting by Nelson Banya Editing by Promit Mukherjee and Kim Coghill)
((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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The subsidiary of London-listed Anglo American Plc AAL.L said it aimed to produce between 39 and 41 million tonnes in 2022, up from 40.3 million tonnes last year. While the price of the commodity closed 2021 with a fall of around 20% TIOc1, this drop came after the prices hit an all-time high of around $220 per dry metric tonne (dmt) in July on the back of a pent up steel demand from construction projects, real estate and automotive industry, especially led by China. This helped iron ore companies such as Kumba to declare big dividends and post huge profits.
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The subsidiary of London-listed Anglo American Plc AAL.L said it aimed to produce between 39 and 41 million tonnes in 2022, up from 40.3 million tonnes last year. Adds details HARARE, Feb 22 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 46% jump in full-year profit, boosted by higher iron ore prices and cost cutting measures implemented by the company. Its headline earnings per share (HEPS) - the main profit measure for South African companies - was 103.65 rand ($6.83) for the year ended Dec. 31, compared with 71.07 rand in 2020.
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The subsidiary of London-listed Anglo American Plc AAL.L said it aimed to produce between 39 and 41 million tonnes in 2022, up from 40.3 million tonnes last year. Adds details HARARE, Feb 22 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 46% jump in full-year profit, boosted by higher iron ore prices and cost cutting measures implemented by the company. Its headline earnings per share (HEPS) - the main profit measure for South African companies - was 103.65 rand ($6.83) for the year ended Dec. 31, compared with 71.07 rand in 2020.
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The subsidiary of London-listed Anglo American Plc AAL.L said it aimed to produce between 39 and 41 million tonnes in 2022, up from 40.3 million tonnes last year. The company, among the world's top five iron ore producers, announced a dividend of 30.50 rand per share, taking the full year dividend to 103.20 rand per share. While the price of the commodity closed 2021 with a fall of around 20% TIOc1, this drop came after the prices hit an all-time high of around $220 per dry metric tonne (dmt) in July on the back of a pent up steel demand from construction projects, real estate and automotive industry, especially led by China.
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3773.0
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2022-02-22 00:00:00 UTC
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South Africa's Kumba Iron Ore full-year profit up 46%
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AAL
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https://www.nasdaq.com/articles/south-africas-kumba-iron-ore-full-year-profit-up-46
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nan
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nan
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HARARE, Feb 22 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 46% jump in full-year profit, backed by higher iron ore prices and cost cutting measures implemented by the company.
Its headline earnings per share (HEPS) - the main profit measure for South African companies - was 103.65 rand ($6.83) for the year ended Dec. 31, compared with 71.07 rand in 2020.
The company, amongst the world's top five iron ore producers, announced a dividend of 30.50 rand per share, taking the full year dividend to 103.20 rand per share.
($1 = 15.1829 rand)
(Reporting by Nelson Banya Editing by Promit Mukherjee)
((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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HARARE, Feb 22 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 46% jump in full-year profit, backed by higher iron ore prices and cost cutting measures implemented by the company. The company, amongst the world's top five iron ore producers, announced a dividend of 30.50 rand per share, taking the full year dividend to 103.20 rand per share. ($1 = 15.1829 rand) (Reporting by Nelson Banya Editing by Promit Mukherjee) ((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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HARARE, Feb 22 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 46% jump in full-year profit, backed by higher iron ore prices and cost cutting measures implemented by the company. Its headline earnings per share (HEPS) - the main profit measure for South African companies - was 103.65 rand ($6.83) for the year ended Dec. 31, compared with 71.07 rand in 2020. The company, amongst the world's top five iron ore producers, announced a dividend of 30.50 rand per share, taking the full year dividend to 103.20 rand per share.
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HARARE, Feb 22 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 46% jump in full-year profit, backed by higher iron ore prices and cost cutting measures implemented by the company. Its headline earnings per share (HEPS) - the main profit measure for South African companies - was 103.65 rand ($6.83) for the year ended Dec. 31, compared with 71.07 rand in 2020. The company, amongst the world's top five iron ore producers, announced a dividend of 30.50 rand per share, taking the full year dividend to 103.20 rand per share.
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HARARE, Feb 22 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J on Tuesday reported a 46% jump in full-year profit, backed by higher iron ore prices and cost cutting measures implemented by the company. Its headline earnings per share (HEPS) - the main profit measure for South African companies - was 103.65 rand ($6.83) for the year ended Dec. 31, compared with 71.07 rand in 2020. The company, amongst the world's top five iron ore producers, announced a dividend of 30.50 rand per share, taking the full year dividend to 103.20 rand per share.
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3774.0
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2022-02-22 00:00:00 UTC
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AngloGold's full-year profit falls 39% on lower grades, higher cost
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AAL
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https://www.nasdaq.com/articles/anglogolds-full-year-profit-falls-39-on-lower-grades-higher-cost
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nan
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nan
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JOHANNESBURG, Feb 22 (Reuters) - Miner AngloGold Ashanti ANGJ.J, which has its headquarters in South Africa, reported on Tuesday a fall of 38.66% in 2021 full-year profit, as lower gold grades and inflationary pressure hit earnings.
The gold miner's headline earnings per share (HEPS), the main profit measure in South Africa, was 146 U.S cents, down from 238 U.S cents a year ago.
The miner, with operations across Africa, Australia and Latin America, will pay a dividend of 14 cents per share, it said.
(Reporting by Promit Mukherjee and Nelson Banya; Editing by Clarence Fernandez)
((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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JOHANNESBURG, Feb 22 (Reuters) - Miner AngloGold Ashanti ANGJ.J, which has its headquarters in South Africa, reported on Tuesday a fall of 38.66% in 2021 full-year profit, as lower gold grades and inflationary pressure hit earnings. The miner, with operations across Africa, Australia and Latin America, will pay a dividend of 14 cents per share, it said. (Reporting by Promit Mukherjee and Nelson Banya; Editing by Clarence Fernandez) ((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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JOHANNESBURG, Feb 22 (Reuters) - Miner AngloGold Ashanti ANGJ.J, which has its headquarters in South Africa, reported on Tuesday a fall of 38.66% in 2021 full-year profit, as lower gold grades and inflationary pressure hit earnings. The gold miner's headline earnings per share (HEPS), the main profit measure in South Africa, was 146 U.S cents, down from 238 U.S cents a year ago. The miner, with operations across Africa, Australia and Latin America, will pay a dividend of 14 cents per share, it said.
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JOHANNESBURG, Feb 22 (Reuters) - Miner AngloGold Ashanti ANGJ.J, which has its headquarters in South Africa, reported on Tuesday a fall of 38.66% in 2021 full-year profit, as lower gold grades and inflationary pressure hit earnings. The gold miner's headline earnings per share (HEPS), the main profit measure in South Africa, was 146 U.S cents, down from 238 U.S cents a year ago. (Reporting by Promit Mukherjee and Nelson Banya; Editing by Clarence Fernandez) ((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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JOHANNESBURG, Feb 22 (Reuters) - Miner AngloGold Ashanti ANGJ.J, which has its headquarters in South Africa, reported on Tuesday a fall of 38.66% in 2021 full-year profit, as lower gold grades and inflationary pressure hit earnings. The gold miner's headline earnings per share (HEPS), the main profit measure in South Africa, was 146 U.S cents, down from 238 U.S cents a year ago. The miner, with operations across Africa, Australia and Latin America, will pay a dividend of 14 cents per share, it said.
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3775.0
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2022-02-21 00:00:00 UTC
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American Airlines (AAL) Cuts Summer Flights on Boeing's Delays
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-cuts-summer-flights-on-boeings-delays
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nan
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American Airlines AAL will reduce international flying this summer as delivery delays of the Boeing 787-8 aircraft weigh on its operations. The airline is delaying the launch of one service, temporarily suspending some flights and reducing flight frequency on one route.
Boeing BA was supposed to deliver 13 787 Dreamliner jets to American Airlines in 2022. However, due to production issues, it will now deliver only 10 787-8 planes to the airline this year. The remaining are scheduled to be delivered in 2023. The company will compensate AAL for the delay in delivering the aircraft on time.
Boeing’s production issues pertaining to the 787 Dreamliner aircraft have continued for a while now. Deliveries of the aircraft have remained suspended since May 2021 as the Federal Aviation Administration raised concerns about BA’s inspection method, Reuters reported. As U.S. regulators continue to review repairs and inspections, deliveries are expected to remain paused for several more months.
American Airlines Group Inc. Price
American Airlines Group Inc. price | American Airlines Group Inc. Quote
Boeing’s delivery issues have forced American Airlines to delay the launch of its Dallas-Fort Worth (“DFW”)-Tel Aviv flights and temporarily suspend Seattle, WA-London Heathrow, DFW-Santiago and Los Angeles-Sydney flights. The airline has also reduced the Miami, FL-Sao Paulo service to once daily.
Despite reducing its international schedule this summer, American Airlines will offer nearly 6,000 peak-day departures. In a SEC filing, AAL said, “Our 787-8 aircraft are an essential part of our fleet. And despite the ongoing delay, we still have tremendous confidence in the aircraft and will continue to work with Boeing on their delivery.”
While American Airlines carries a Zacks Rank #3 (Hold), Boeing carries a Zacks Rank #4 (Sell).
A Key Pick
A top-ranked stock in the airline space is Controladora Vuela Compania de Aviacion, B. de C.V VLRS.
Controladora Vuela flaunts a Zacks Rank #1 (Strong Buy). The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 441.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Controladora Vuela have rallied more than 12% in the past six months.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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The Boeing Company (BA): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS): 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 will reduce international flying this summer as delivery delays of the Boeing 787-8 aircraft weigh on its operations. The company will compensate AAL for the delay in delivering the aircraft on time. In a SEC filing, AAL said, “Our 787-8 aircraft are an essential part of our fleet.
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American Airlines AAL will reduce international flying this summer as delivery delays of the Boeing 787-8 aircraft weigh on its operations. American Airlines Group Inc. (AAL): Free Stock Analysis Report The company will compensate AAL for the delay in delivering the aircraft on time.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines AAL will reduce international flying this summer as delivery delays of the Boeing 787-8 aircraft weigh on its operations. The company will compensate AAL for the delay in delivering the aircraft on time.
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American Airlines AAL will reduce international flying this summer as delivery delays of the Boeing 787-8 aircraft weigh on its operations. American Airlines Group Inc. (AAL): Free Stock Analysis Report The company will compensate AAL for the delay in delivering the aircraft on time.
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3776.0
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2022-02-21 00:00:00 UTC
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De Beers CEO sees stable natural diamond supply, decent industry growth
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AAL
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https://www.nasdaq.com/articles/de-beers-ceo-sees-stable-natural-diamond-supply-decent-industry-growth
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nan
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nan
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By Lisa Barrington
DUBAI, Feb 21 (Reuters) - Natural diamond supply has peaked and will remain stable for the next few decades, the CEO of mining giant De Beers told Reuters on Monday, adding that the industry should see decent medium- to long-term growth.
De Beers Group, Anglo American's AAL.L diamond business, is one of the world's leading diamond miners alongside Russia's Alrosa ALRS.MM.
"I don't see a reason to think there will not be decent growth medium- to long-term in the diamond industry ... I feel more positive about the future than I have done for a long time," Bruce Cleaver said on the sidelines of a diamond industry conference in Duabi.
"Supply will remain stable. It won't fall off a cliff. We see 20, 30, 40 years of stable supply. That's why I feel quite positive," he said, adding that supply probably peaked in 2018-19.
The COVID-19 pandemic disrupted the global diamond supply chain, with some mines shuttered, rough diamond trade plummeting and polishers in India leaving their jobs.
In the second quarter of 2020, De Beers sold around 3% of the rough diamonds they would normally, Cleaver told the conference, partly because concerns about miners working closely together limited production and partly because buyers anticipated lower consumer demand as economies slowed.
When demand rallied from the end of 2020, increased polished prices led to increased rough prices, Cleaver told Reuters.
De Beers sales were $4.82 billion in 2021, up from $2.79 billion in 2020, company data shows.
In December, De Beers said it had applied to conduct exploration activities in north-eastern Angola, following reforms of the country's diamond industry.
"We remain extremely focused on exploration," Cleaver said, adding the company is exploring in Botswana, Canada and South Africa.
Last year, it also commissioned a survey of the ocean floor off Greenland's coast in a first step to determine whether it could hold deposits of highly-prized marine diamonds. De Beers already produces diamonds from Namibia's sea bed.
"It is far too early to tell whether that is or isn't going to work," Cleaver said of the Greenland research.
De Beers' future will also see investment in Environmental, Social and Governance (ESG) practices, Cleaver said, without giving figures. This includes diamond traceability using blockchain technology, working towards a goal of being carbon neutral by 2030, and better mining practices.
UPDATE 1-Alrosa sales revenue up 49% as diamond demand outstrips supply
(Reporting by Lisa Barrington; editing by Barbara Lewis)
((lisa.barrington@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 Group, Anglo American's AAL.L diamond business, is one of the world's leading diamond miners alongside Russia's Alrosa ALRS.MM. In December, De Beers said it had applied to conduct exploration activities in north-eastern Angola, following reforms of the country's diamond industry. Last year, it also commissioned a survey of the ocean floor off Greenland's coast in a first step to determine whether it could hold deposits of highly-prized marine diamonds.
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De Beers Group, Anglo American's AAL.L diamond business, is one of the world's leading diamond miners alongside Russia's Alrosa ALRS.MM. By Lisa Barrington DUBAI, Feb 21 (Reuters) - Natural diamond supply has peaked and will remain stable for the next few decades, the CEO of mining giant De Beers told Reuters on Monday, adding that the industry should see decent medium- to long-term growth. In the second quarter of 2020, De Beers sold around 3% of the rough diamonds they would normally, Cleaver told the conference, partly because concerns about miners working closely together limited production and partly because buyers anticipated lower consumer demand as economies slowed.
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De Beers Group, Anglo American's AAL.L diamond business, is one of the world's leading diamond miners alongside Russia's Alrosa ALRS.MM. By Lisa Barrington DUBAI, Feb 21 (Reuters) - Natural diamond supply has peaked and will remain stable for the next few decades, the CEO of mining giant De Beers told Reuters on Monday, adding that the industry should see decent medium- to long-term growth. In the second quarter of 2020, De Beers sold around 3% of the rough diamonds they would normally, Cleaver told the conference, partly because concerns about miners working closely together limited production and partly because buyers anticipated lower consumer demand as economies slowed.
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De Beers Group, Anglo American's AAL.L diamond business, is one of the world's leading diamond miners alongside Russia's Alrosa ALRS.MM. By Lisa Barrington DUBAI, Feb 21 (Reuters) - Natural diamond supply has peaked and will remain stable for the next few decades, the CEO of mining giant De Beers told Reuters on Monday, adding that the industry should see decent medium- to long-term growth. "Supply will remain stable.
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3777.0
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2022-02-21 00:00:00 UTC
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South Africa's Amplats posts 160% rise in full year profit
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AAL
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https://www.nasdaq.com/articles/south-africas-amplats-posts-160-rise-in-full-year-profit-0
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nan
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nan
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Adds details,
HARARE, Feb 21 (Reuters) - South Africa's Anglo American Platinum Ltd AMSJ.J (Amplats) on Monday reported an 160% jump in full-year profit, driven by firmer metal prices and higher sales volumes.
Its headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - rose to 300.42 rand ($19.93) for the year ended Dec. 31 from 115.54 rand a year ago.
The company, which is the biggest producer of platinum group metals (PGM) in the world, announced a dividend of 125 rand per share, taking its full year dividend to 300 rand per share.
PGM miners, the majority of whom are located in South Africa, had been minting money in the last two years as prices of the three main PGM metals - platinum, palladium and rhodium - touched record highs, helping companies cut debt, deliver huge profits and declare bumper dividends.
Amplats said the rand price of its platinum group metals (PGM) basket had increased by 22%, while sales volumes were 82% up, leading to a near doubling in full year revenues to 215 billion rand.
With 49 billion rand in cash reserves, the company is now on a modernisation drive to enhance operational efficiencies, it said in a statement.
($1 = 15.0705 rand)
(Reporting by Nelson Banya Editing by Promit Mukherjee and Kim Coghill)
((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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Adds details, HARARE, Feb 21 (Reuters) - South Africa's Anglo American Platinum Ltd AMSJ.J (Amplats) on Monday reported an 160% jump in full-year profit, driven by firmer metal prices and higher sales volumes. PGM miners, the majority of whom are located in South Africa, had been minting money in the last two years as prices of the three main PGM metals - platinum, palladium and rhodium - touched record highs, helping companies cut debt, deliver huge profits and declare bumper dividends. With 49 billion rand in cash reserves, the company is now on a modernisation drive to enhance operational efficiencies, it said in a statement.
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Its headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - rose to 300.42 rand ($19.93) for the year ended Dec. 31 from 115.54 rand a year ago. The company, which is the biggest producer of platinum group metals (PGM) in the world, announced a dividend of 125 rand per share, taking its full year dividend to 300 rand per share. Amplats said the rand price of its platinum group metals (PGM) basket had increased by 22%, while sales volumes were 82% up, leading to a near doubling in full year revenues to 215 billion rand.
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The company, which is the biggest producer of platinum group metals (PGM) in the world, announced a dividend of 125 rand per share, taking its full year dividend to 300 rand per share. PGM miners, the majority of whom are located in South Africa, had been minting money in the last two years as prices of the three main PGM metals - platinum, palladium and rhodium - touched record highs, helping companies cut debt, deliver huge profits and declare bumper dividends. Amplats said the rand price of its platinum group metals (PGM) basket had increased by 22%, while sales volumes were 82% up, leading to a near doubling in full year revenues to 215 billion rand.
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The company, which is the biggest producer of platinum group metals (PGM) in the world, announced a dividend of 125 rand per share, taking its full year dividend to 300 rand per share. Amplats said the rand price of its platinum group metals (PGM) basket had increased by 22%, while sales volumes were 82% up, leading to a near doubling in full year revenues to 215 billion rand. With 49 billion rand in cash reserves, the company is now on a modernisation drive to enhance operational efficiencies, it said in a statement.
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3778.0
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2022-02-21 00:00:00 UTC
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South Africa's Amplats posts 160% rise in full year profit
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AAL
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https://www.nasdaq.com/articles/south-africas-amplats-posts-160-rise-in-full-year-profit
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nan
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nan
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HARARE, Feb 21 (Reuters) - South Africa's Anglo American Platinum Ltd AMSJ.J (Amplats) on Monday reported an 160% jump in full-year profit, driven by firmer metal prices and higher sales volumes.
Its headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - rose to 300.42 rand ($19.93) for the year ended Dec. 31 from 115.54 rand a year ago.
The company, which is the biggest producer of platinum group metals (PGM) in the world, announced a dividend of 125 rand per share, taking its full year dividend to 300 rand per share.
($1 = 15.0705 rand)
(Reporting by Nelson Banya Editing by Promit Mukherjee)
((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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HARARE, Feb 21 (Reuters) - South Africa's Anglo American Platinum Ltd AMSJ.J (Amplats) on Monday reported an 160% jump in full-year profit, driven by firmer metal prices and higher sales volumes. Its headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - rose to 300.42 rand ($19.93) for the year ended Dec. 31 from 115.54 rand a year ago. The company, which is the biggest producer of platinum group metals (PGM) in the world, announced a dividend of 125 rand per share, taking its full year dividend to 300 rand per share.
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Its headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - rose to 300.42 rand ($19.93) for the year ended Dec. 31 from 115.54 rand a year ago. The company, which is the biggest producer of platinum group metals (PGM) in the world, announced a dividend of 125 rand per share, taking its full year dividend to 300 rand per share. ($1 = 15.0705 rand) (Reporting by Nelson Banya Editing by Promit Mukherjee) ((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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Its headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - rose to 300.42 rand ($19.93) for the year ended Dec. 31 from 115.54 rand a year ago. The company, which is the biggest producer of platinum group metals (PGM) in the world, announced a dividend of 125 rand per share, taking its full year dividend to 300 rand per share. ($1 = 15.0705 rand) (Reporting by Nelson Banya Editing by Promit Mukherjee) ((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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HARARE, Feb 21 (Reuters) - South Africa's Anglo American Platinum Ltd AMSJ.J (Amplats) on Monday reported an 160% jump in full-year profit, driven by firmer metal prices and higher sales volumes. Its headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - rose to 300.42 rand ($19.93) for the year ended Dec. 31 from 115.54 rand a year ago. The company, which is the biggest producer of platinum group metals (PGM) in the world, announced a dividend of 125 rand per share, taking its full year dividend to 300 rand per share.
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3779.0
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2022-02-18 00:00:00 UTC
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American Airlines plans more schedule cuts as it waits for 787 jet deliveries
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AAL
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https://www.nasdaq.com/articles/american-airlines-plans-more-schedule-cuts-as-it-waits-for-787-jet-deliveries
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, Feb 18 (Reuters) - American Airlines Group Inc AAL.Osaid on Friday it plans to further trim its summer schedule due to Boeing Co's BA.N delay in delivering 787 Dreamliner jets.
In a regulatory filing, the Texas-based carrier said it now expects to receive only 10 Dreamliner planes this year, not the 13 expected earlier. The remaining jets are now scheduled for delivery next year, it said.
As a result, American said it would temporarily suspend routes between Seattle and London, Los Angeles and Sydney, and Dallas and Santiago. The company will also delay the launch of service between Dallas and Tel Aviv, and reduce the frequency of flights between Miami and São Paulo to one a day.
The Wall Street Journal first reported the plan to trim the summer schedule.
In December, the carrier had announced plans to scrap, reduce or delay the introduction of flights to several international destinations, including Hong Kong, saying the delays in deliveries of the 787s had crimped its ability to ramp up capacity.
Reuters reported last month that deliveries of the 787 are expected to remain frozen for months as U.S. regulators review repairs and inspections over structural flaws in the jets.
American was expecting to receive the first delivery in April. However, Boeing has said that the timing would be set by the U.S. Federal Aviation Administration.
The Chicago-based planemaker last month unveiled a $3.5 billion pre-tax non-cash charge related to 787 delivery delays and customer concessions.
In the filing on Friday, American said the 787 Dreamliner jets remain an "essential" part of its fleet and that Boeing would compensate it for the delivery delays.
Last month, the carrier said the ongoing delays in 787 deliveries have added to its cost pressure.
(Reporting by Rajesh Kumar Singh; Editing by Tim Ahmann)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh CHICAGO, Feb 18 (Reuters) - American Airlines Group Inc AAL.Osaid on Friday it plans to further trim its summer schedule due to Boeing Co's BA.N delay in delivering 787 Dreamliner jets. The company will also delay the launch of service between Dallas and Tel Aviv, and reduce the frequency of flights between Miami and São Paulo to one a day. In the filing on Friday, American said the 787 Dreamliner jets remain an "essential" part of its fleet and that Boeing would compensate it for the delivery delays.
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By Rajesh Kumar Singh CHICAGO, Feb 18 (Reuters) - American Airlines Group Inc AAL.Osaid on Friday it plans to further trim its summer schedule due to Boeing Co's BA.N delay in delivering 787 Dreamliner jets. Reuters reported last month that deliveries of the 787 are expected to remain frozen for months as U.S. regulators review repairs and inspections over structural flaws in the jets. In the filing on Friday, American said the 787 Dreamliner jets remain an "essential" part of its fleet and that Boeing would compensate it for the delivery delays.
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By Rajesh Kumar Singh CHICAGO, Feb 18 (Reuters) - American Airlines Group Inc AAL.Osaid on Friday it plans to further trim its summer schedule due to Boeing Co's BA.N delay in delivering 787 Dreamliner jets. In December, the carrier had announced plans to scrap, reduce or delay the introduction of flights to several international destinations, including Hong Kong, saying the delays in deliveries of the 787s had crimped its ability to ramp up capacity. In the filing on Friday, American said the 787 Dreamliner jets remain an "essential" part of its fleet and that Boeing would compensate it for the delivery delays.
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By Rajesh Kumar Singh CHICAGO, Feb 18 (Reuters) - American Airlines Group Inc AAL.Osaid on Friday it plans to further trim its summer schedule due to Boeing Co's BA.N delay in delivering 787 Dreamliner jets. In a regulatory filing, the Texas-based carrier said it now expects to receive only 10 Dreamliner planes this year, not the 13 expected earlier. The remaining jets are now scheduled for delivery next year, it said.
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3780.0
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2022-02-17 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-23
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nan
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nan
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Launched on 05/07/2014, the WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) is a smart beta exchange traded fund offering 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Wisdomtree, and has been able to amass over $1.13 billion, which makes it one of the larger ETFs in the Broad Developed World ETFs. IHDG seeks to match the performance of the WisdomTree International Hedged Quality Dividend Growth Index before fees and expenses.
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.
Annual operating expenses for IHDG are 0.58%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.93%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
When you look at individual holdings, Anglo American Plc (AAL) accounts for about 5.24% of the fund's total assets, followed by Lvmh Moet Hennessy Louis Vuitton Se (MC) and Bhp Group Ltd (BHP).
IHDG's top 10 holdings account for about 41.17% of its total assets under management.
Performance and Risk
The ETF has lost about -6.44% and is up roughly 6.77% so far this year and in the past one year (as of 02/17/2022), respectively. IHDG has traded between $39.85 and $46.44 during this last 52-week period.
IHDG has a beta of 0.71 and standard deviation of 19.15% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 320 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 $23.02 billion in assets, Vanguard Dividend Appreciation ETF has $64.96 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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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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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
Moelis & Company (MC): 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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When you look at individual holdings, Anglo American Plc (AAL) accounts for about 5.24% of the fund's total assets, followed by Lvmh Moet Hennessy Louis Vuitton Se (MC) and Bhp Group Ltd (BHP). American Airlines Group Inc. (AAL): Free Stock Analysis Report On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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When you look at individual holdings, Anglo American Plc (AAL) accounts for about 5.24% of the fund's total assets, followed by Lvmh Moet Hennessy Louis Vuitton Se (MC) and Bhp Group Ltd (BHP). American Airlines Group Inc. (AAL): Free Stock Analysis Report Launched on 05/07/2014, the WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) is a smart beta exchange traded fund offering broad exposure to the Broad Developed World ETFs category of the market.
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When you look at individual holdings, Anglo American Plc (AAL) accounts for about 5.24% of the fund's total assets, followed by Lvmh Moet Hennessy Louis Vuitton Se (MC) and Bhp Group Ltd (BHP). American Airlines Group Inc. (AAL): Free Stock Analysis Report Launched on 05/07/2014, the WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) is a smart beta exchange traded fund offering broad exposure to the Broad Developed World ETFs category of the market.
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When you look at individual holdings, Anglo American Plc (AAL) accounts for about 5.24% of the fund's total assets, followed by Lvmh Moet Hennessy Louis Vuitton Se (MC) and Bhp Group Ltd (BHP). American Airlines Group Inc. (AAL): Free Stock Analysis Report Launched on 05/07/2014, the WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) is a smart beta exchange traded fund offering broad exposure to the Broad Developed World ETFs category of the market.
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3781.0
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2022-02-17 00:00:00 UTC
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Fuel Prices To Weigh On United Airlines Stock In The Near Term
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AAL
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https://www.nasdaq.com/articles/fuel-prices-to-weigh-on-united-airlines-stock-in-the-near-term
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nan
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nan
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The shares of United Airlines (NASDAQ: UAL) observed a strong rally in recent weeks assisted by pent-up travel demand and declining coronavirus infections. However, the benchmark oil prices have surged by 26% from $75/bbl in early January to $95/bbl at present – weighing on the bottom line of all transportation companies. Per annual filings, aircraft fuel accounts for 22% of the total United Airlines’ operating expenditure – making it the second biggest cost head after salaries & wages. Given the company’s thin net margin of less than 10%, a sudden rise in fuel prices will weigh on earnings and subsequently shareholder returns in the near-term. Per the Trefis machine learning engine which analyses historical stock price movements, UAL stock has a 47% chance of a rise over the next month (21 trading days). See our analysis United Airlines Stock Chance of Rise for more details.
Five Days: UAL 9.7%, vs. S&P 500 -1.9%; Outperformed market (5% event probability)
UAL stock gained 9.7% over a five-day trading period ending 02/14/2022, compared to the broader market (S&P500) which declined 1.9% over the same period.
Returns of 9.7% or higher over a five-day period on 130 occasions out of 2517 (5%); Stock rose in the next five days in 65 of these 130 instances (50%).
Ten Days: UAL 15%, vs. S&P 500 -0.4%; Outperformed market (4% event probability)
UAL stock gained 15% over the last ten trading days (two weeks), compared to the broader market (S&P500) which declined 0.4%.
Returns of 15% or higher over 10-day period on 112 occasions out of 2517 (4%); Stock rose in the next 10 days in 63 of these 112 instances (56%).
Twenty-One Days: UAL 0.9%, vs. S&P 500 -6.5%; Outperformed market (50% event probability)
UAL stock gained 0.9% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which lost 6.5%.
Returns of 0.9% or higher over 21-day period on 1264 occasions out of 2516 (50%); Stock rose in the next 21 days in 592 of these 1264 instances (47%).
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Feb 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
UAL Return 10% 7% -36%
S&P 500 Return -2% -7% 97%
Trefis MS Portfolio Return 1% -9% 259%
[1] Month-to-date and year-to-date as of 2/14/2022
[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 United Airlines (NASDAQ: UAL) observed a strong rally in recent weeks assisted by pent-up travel demand and declining coronavirus infections. Per annual filings, aircraft fuel accounts for 22% of the total United Airlines’ operating expenditure – making it the second biggest cost head after salaries & wages. Given the company’s thin net margin of less than 10%, a sudden rise in fuel prices will weigh on earnings and subsequently shareholder returns in the near-term.
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Five Days: UAL 9.7%, vs. S&P 500 -1.9%; Outperformed market (5% event probability) UAL stock gained 9.7% over a five-day trading period ending 02/14/2022, compared to the broader market (S&P500) which declined 1.9% over the same period. Ten Days: UAL 15%, vs. S&P 500 -0.4%; Outperformed market (4% event probability) UAL stock gained 15% over the last ten trading days (two weeks), compared to the broader market (S&P500) which declined 0.4%. Twenty-One Days: UAL 0.9%, vs. S&P 500 -6.5%; Outperformed market (50% event probability) UAL stock gained 0.9% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which lost 6.5%.
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Five Days: UAL 9.7%, vs. S&P 500 -1.9%; Outperformed market (5% event probability) UAL stock gained 9.7% over a five-day trading period ending 02/14/2022, compared to the broader market (S&P500) which declined 1.9% over the same period. Ten Days: UAL 15%, vs. S&P 500 -0.4%; Outperformed market (4% event probability) UAL stock gained 15% over the last ten trading days (two weeks), compared to the broader market (S&P500) which declined 0.4%. Total [2] UAL Return 10% 7% -36% S&P 500 Return -2% -7% 97% Trefis MS Portfolio Return 1% -9% 259% [1] Month-to-date and year-to-date as of 2/14/2022 [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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See our analysis United Airlines Stock Chance of Rise for more details. Five Days: UAL 9.7%, vs. S&P 500 -1.9%; Outperformed market (5% event probability) UAL stock gained 9.7% over a five-day trading period ending 02/14/2022, compared to the broader market (S&P500) which declined 1.9% over the same period. Total [2] UAL Return 10% 7% -36% S&P 500 Return -2% -7% 97% Trefis MS Portfolio Return 1% -9% 259% [1] Month-to-date and year-to-date as of 2/14/2022 [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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3782.0
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2022-02-15 00:00:00 UTC
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American Airlines places order for three new Embraer aircraft
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AAL
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https://www.nasdaq.com/articles/american-airlines-places-order-for-three-new-embraer-aircraft
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nan
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nan
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SAO PAULO, Feb 15 (Reuters) - Brazilian planemaker Embraer SA EMBR3.SA said on Tuesday that American Airlines AAL.O has placed a firm order for three new E175 aircraft, which will be operated by its Envoy Air subsidiary.
According to Embraer, the deal was valued at $160.2 million and will be included in the company's 2021 fourth-quarter backlog. The deliveries are expected to be concluded by the end of 2022.
(Reporting by Gabriel Araujo; Editing by Leslie Adler)
((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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SAO PAULO, Feb 15 (Reuters) - Brazilian planemaker Embraer SA EMBR3.SA said on Tuesday that American Airlines AAL.O has placed a firm order for three new E175 aircraft, which will be operated by its Envoy Air subsidiary. According to Embraer, the deal was valued at $160.2 million and will be included in the company's 2021 fourth-quarter backlog. (Reporting by Gabriel Araujo; Editing by Leslie Adler) ((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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SAO PAULO, Feb 15 (Reuters) - Brazilian planemaker Embraer SA EMBR3.SA said on Tuesday that American Airlines AAL.O has placed a firm order for three new E175 aircraft, which will be operated by its Envoy Air subsidiary. According to Embraer, the deal was valued at $160.2 million and will be included in the company's 2021 fourth-quarter backlog. (Reporting by Gabriel Araujo; Editing by Leslie Adler) ((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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SAO PAULO, Feb 15 (Reuters) - Brazilian planemaker Embraer SA EMBR3.SA said on Tuesday that American Airlines AAL.O has placed a firm order for three new E175 aircraft, which will be operated by its Envoy Air subsidiary. The deliveries are expected to be concluded by the end of 2022. (Reporting by Gabriel Araujo; Editing by Leslie Adler) ((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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SAO PAULO, Feb 15 (Reuters) - Brazilian planemaker Embraer SA EMBR3.SA said on Tuesday that American Airlines AAL.O has placed a firm order for three new E175 aircraft, which will be operated by its Envoy Air subsidiary. According to Embraer, the deal was valued at $160.2 million and will be included in the company's 2021 fourth-quarter backlog. The deliveries are expected to be concluded by the end of 2022.
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3783.0
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2022-02-15 00:00:00 UTC
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Why Airline Shares Are Flying High Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-flying-high-today-0
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nan
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nan
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What happened
On Tuesday, a Wall Street analyst voiced a bullish opinion on the airline sector, saying that the group is making the transition from "COVID losers to reopening winners." The airlines are gaining altitude, as a result, with a collection of carriers including American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Southwest Airlines, JetBlue Airways (NASDAQ: JBLU), Frontier Group Holdings (NASDAQ: ULCC), and Spirit Airlines (NYSE: SAVE) all up at least 5% in midday trading.
So what
Airlines faced a difficult journey through the pandemic, as travel demand fell to near zero. More than two years after the initial lockdowns, the sector is still trying to regain its footing, with some analysts predicting that business won't get back to normal until the second half of the decade.
Image source: Getty Images.
But as the recovery begins to take hold, people are beginning to see opportunities. On Tuesday, Wolfe Research analyst Scott Group assumed coverage of the airlines with a market-overweight sector rating. Frontier, American, and JetBlue were all upgraded, while United was downgraded to underperform.
Group wrote that higher jet-fuel prices could weigh on earnings this year, but the general trend for the sector is positive. Americans are expected to get out and travel this summer, which should create strong demand for air service and return much of the industry to profitability.
The airlines are making moves that suggest the worst of the crisis is behind them. Last week, Frontier and Spirit announced plans to combine in a deal worth more than $6 billion. JetBlue also provided a fresh bit of evidence to suggest the outlook is improving. The company announced it would exercise its option to buy an additional 30 Airbus planes in the years to come.
Now what
The worst may be over, but we still don't know how long the recovery will take. A fresh variant or some other new twist to the pandemic could derail summer travel plans. As long as businesses are dragging their feet on returning to the office, more lucrative corporate travel is likely to remain depressed.
Investors are likely safe buying in today, but they also could be in for a long wait. For those willing to strap in for the long journey and deal with any unexpected turbulence, Delta looks like the best pick from this group. The company is well run, has labor costs more under control than some of its rivals, and sports a relatively healthy balance sheet. Frontier and Spirit look intriguing post-merger, but airline deals take time to integrate and can be fraught with disruption, so there's no need to jump onboard right away.
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Lou Whiteman owns Delta Air Lines and Spirit Airlines. The Motley Fool owns 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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The airlines are gaining altitude, as a result, with a collection of carriers including American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Southwest Airlines, JetBlue Airways (NASDAQ: JBLU), Frontier Group Holdings (NASDAQ: ULCC), and Spirit Airlines (NYSE: SAVE) all up at least 5% in midday trading. What happened On Tuesday, a Wall Street analyst voiced a bullish opinion on the airline sector, saying that the group is making the transition from "COVID losers to reopening winners." More than two years after the initial lockdowns, the sector is still trying to regain its footing, with some analysts predicting that business won't get back to normal until the second half of the decade.
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The airlines are gaining altitude, as a result, with a collection of carriers including American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Southwest Airlines, JetBlue Airways (NASDAQ: JBLU), Frontier Group Holdings (NASDAQ: ULCC), and Spirit Airlines (NYSE: SAVE) all up at least 5% in midday trading. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Lou Whiteman owns Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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The airlines are gaining altitude, as a result, with a collection of carriers including American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Southwest Airlines, JetBlue Airways (NASDAQ: JBLU), Frontier Group Holdings (NASDAQ: ULCC), and Spirit Airlines (NYSE: SAVE) all up at least 5% in midday trading. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Lou Whiteman owns Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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The airlines are gaining altitude, as a result, with a collection of carriers including American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Southwest Airlines, JetBlue Airways (NASDAQ: JBLU), Frontier Group Holdings (NASDAQ: ULCC), and Spirit Airlines (NYSE: SAVE) all up at least 5% in midday trading. What happened On Tuesday, a Wall Street analyst voiced a bullish opinion on the airline sector, saying that the group is making the transition from "COVID losers to reopening winners." Now what The worst may be over, but we still don't know how long the recovery will take.
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3784.0
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2022-02-15 00:00:00 UTC
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Glencore sets aside $1.5 bln for probes, announces $4 bln dividend
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AAL
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https://www.nasdaq.com/articles/glencore-sets-aside-%241.5-bln-for-probes-announces-%244-bln-dividend
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nan
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nan
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By Clara Denina and Helen Reid
LONDON, Feb 15 (Reuters) - Glencore GLEN.L will set aside $1.5 billion for probes into bribery and market manipulation, which it expects to resolve in 2022, it said on Tuesday, as it announced record earnings from booming raw materials prices.
It also promised a $4 billion payout to its investors.
The company, one of the world's biggest miners and commodity traders, faces investigations in Brazil, Britain and the United States following corruption allegations relating to some of its operations in the Democratic Republic of Congo, Nigeria and Venezuela since 2018.
"We recognise there has been misconduct in this company historically. We've worked hard to correct that," CEO Gary Nagle told reporters.
Glencore also faces separate corruption and bribery investigations by Swiss and Dutch authorities.
"Although the Swiss and Dutch investigations are expected to remain outstanding, we believe that with the main investigations quantified, this will likely de-risk the company from this 'unknown known' which has been an overhang for the company since 2018," Tyler Broda at RBC Capital Markets said.
Shares in the company jumped 3.9% to 437 pence by 0909 GMT, making it one of the best performers in an index of its peers in London. .FTNMX551020
In preliminary 2021 results, Glencore said it cut net debt to $6 billion at the end of 2021 from $15.8 billion a year earlier.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 83% to a record $21.3 billion, compared with $11.6 billion a year earlier, in line with a consensus estimate of 15 analysts.
The results surpass a previous high in 2018, when Glencore had also been buoyed by a commodity rally.
The company, which owns more than 150 operating sites, is reviewing 27 assets, 14 of which are being sold, Nagle said, as refocuses its portfolio on what it termed "commodities of the future" needed for the transition to a greener economy.
Glencore mines battery metals copper, nickel, and cobalt.
Its strategy of depleting its coal mines by the mid-2040s rather than selling them or spinning them off reflects a different path from other diversified miners including BHP BHP.AX and Anglo American AAL.L.
RUNNING DOWN COAL
Activist investor Bluebell Capital Partners, which last year urged the miner to separate its thermal coal business has, in a letter dated Jan. 24 and made public on Monday, proposed a new structure for Glencore that would allow the company to still maintain control of the spun-off unit.
Nagle on Tuesday said shareholders support the company's strategy to instead run down its coal mines by the mid-2040s.
"Coal does play an important part in this business. In the discussions I've had with shareholders, they're very supportive of our strategy, they're very supportive of coal in this business," he said.
Glencore's biggest shareholders are Qatar Holding, a unit of the Gulf Arab state's sovereign wealth fund, and ex-CEO Ivan Glasenberg with a combined 18.5%.
The $4 billion payout to shareholders announced on Tuesday compares with the $2.8 billion Glencore said last August it would return to them.
Prices of thermal coal, the most polluting fossil fuel, are close to all-time highs reached last year on expectations of scarce supplies caused by Chinese power shortages and a European gas squeeze.
Surging prices for fuel and other materials needed in mine processing, coupled with tightening labour markets, drove Glencore's costs up in 2021.
Although prices of the metals Glencore produces have increased at a higher pace than the rate of inflation, costs still put pressure on supply.
The company put its zinc sulphide operation in Italy on care and maintenance until there is "a meaningful change in power market prices".
"We are seeing some inflationary pressure across the business...so we've taken action at our smelters. We've cut back production at our smelters in Europe because of these high energy prices," Nagle said.
Nagle said the company has no plans, at this stage, to bring that production back.
(Reporting by Clara Denina, Helen Reid, Shanima A in Bengaluru; editing by Sriraj Kalluvila, Jason Neely, Michael Urquhart and Barbara Lewis)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its strategy of depleting its coal mines by the mid-2040s rather than selling them or spinning them off reflects a different path from other diversified miners including BHP BHP.AX and Anglo American AAL.L. By Clara Denina and Helen Reid LONDON, Feb 15 (Reuters) - Glencore GLEN.L will set aside $1.5 billion for probes into bribery and market manipulation, which it expects to resolve in 2022, it said on Tuesday, as it announced record earnings from booming raw materials prices. Activist investor Bluebell Capital Partners, which last year urged the miner to separate its thermal coal business has, in a letter dated Jan. 24 and made public on Monday, proposed a new structure for Glencore that would allow the company to still maintain control of the spun-off unit.
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Its strategy of depleting its coal mines by the mid-2040s rather than selling them or spinning them off reflects a different path from other diversified miners including BHP BHP.AX and Anglo American AAL.L. Glencore also faces separate corruption and bribery investigations by Swiss and Dutch authorities. Nagle on Tuesday said shareholders support the company's strategy to instead run down its coal mines by the mid-2040s.
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Its strategy of depleting its coal mines by the mid-2040s rather than selling them or spinning them off reflects a different path from other diversified miners including BHP BHP.AX and Anglo American AAL.L. By Clara Denina and Helen Reid LONDON, Feb 15 (Reuters) - Glencore GLEN.L will set aside $1.5 billion for probes into bribery and market manipulation, which it expects to resolve in 2022, it said on Tuesday, as it announced record earnings from booming raw materials prices. Activist investor Bluebell Capital Partners, which last year urged the miner to separate its thermal coal business has, in a letter dated Jan. 24 and made public on Monday, proposed a new structure for Glencore that would allow the company to still maintain control of the spun-off unit.
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Its strategy of depleting its coal mines by the mid-2040s rather than selling them or spinning them off reflects a different path from other diversified miners including BHP BHP.AX and Anglo American AAL.L. By Clara Denina and Helen Reid LONDON, Feb 15 (Reuters) - Glencore GLEN.L will set aside $1.5 billion for probes into bribery and market manipulation, which it expects to resolve in 2022, it said on Tuesday, as it announced record earnings from booming raw materials prices. .FTNMX551020 In preliminary 2021 results, Glencore said it cut net debt to $6 billion at the end of 2021 from $15.8 billion a year earlier.
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3785.0
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2022-02-15 00:00:00 UTC
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Alaska Airlines Stock Supported By Strong Fundamentals
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AAL
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https://www.nasdaq.com/articles/alaska-airlines-stock-supported-by-strong-fundamentals
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The shares of Alaska Air Group (NYSE: ALK) observed another round of sell-off after WHO declared the Omicron mutation as a variant of concern and investors became wary of a decline in air travel demand. However, the passenger numbers at TSA checkpoints regained strength as infection numbers quickly ticked down earlier this month. Alaska Air Group incurred just $234 million operating cash burn in 2020 largely due to multiple grant arrangements by the government and a stringent cost curtailment plan. As domestic demand continues to drive strong passenger numbers, Trefis believes that Alaska Air Group’s revenues to observe 36% (y-o-y) growth in 2022. We highlight the historical trends in key revenue drivers of Alaska Air along with near-term projections in an interactive dashboard analysis.
How did Alaska Air Group perform in 2021?
In 2021, Alaska Air Group reported 30% contraction in operating revenues driven by a 21% reduction in capacity (available seat miles) and a 10% decline in load factor over 2019. However, pent-up demand pushed the top line to almost pre-pandemic levels in H2 2021. The company ended the year with $478 million of net income and $1 billion of operating cash. Notably, the company’s $1 billion of investment activities were assisted by a combination of cash on hand and yearly earnings. On the operational side, CASMex (representing operational expenses other than fuel per available seat mile) observed a 13% surge and passenger yield declined by 1% over 2019.
Per Q4 2021 filings, the company expects Q1 2022 capacity to be down by just 10-13% over Q1 2019 and the passenger load factor to range between 71-74% – almost 10% below historical average numbers. With revenues expected to be down by 14-17% over pre-pandemic levels, Q1 2022 is likely to observe a similar performance sequentially. (related: Is JetBlue Airways Stock Poised For Strong Gains?)
Trends In Key Performance Metrics
A prudent capital investment plan, stable demand, and high passenger load factor assisted 7% growth in ASMs (capacity) from 62 billion in 2017 to 66.6 billion in 2019. Subsequently, the top line observed a similar 11% expansion from $7.9 billion in 2017 to $8.8 billion in 2019. After the acquisition of Virgin Airlines in 2016, the company followed a conservative strategy and repaid $2.5 billion of long-term debt by 2019 instead of aggressively repurchasing shares. We elaborate more in our earlier article, What If American Airlines Had Implemented Alaska Air’s Capital Allocation Strategy?
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Feb 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ALK Return 7% 12% -34%
S&P 500 Return 2% -4% 105%
Trefis MS Portfolio Return 2% -8% 264%
[1] Month-to-date and year-to-date as of 2/10/2022
[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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Alaska Air Group incurred just $234 million operating cash burn in 2020 largely due to multiple grant arrangements by the government and a stringent cost curtailment plan. As domestic demand continues to drive strong passenger numbers, Trefis believes that Alaska Air Group’s revenues to observe 36% (y-o-y) growth in 2022. In 2021, Alaska Air Group reported 30% contraction in operating revenues driven by a 21% reduction in capacity (available seat miles) and a 10% decline in load factor over 2019.
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As domestic demand continues to drive strong passenger numbers, Trefis believes that Alaska Air Group’s revenues to observe 36% (y-o-y) growth in 2022. Trends In Key Performance Metrics A prudent capital investment plan, stable demand, and high passenger load factor assisted 7% growth in ASMs (capacity) from 62 billion in 2017 to 66.6 billion in 2019. Total [2] ALK Return 7% 12% -34% S&P 500 Return 2% -4% 105% Trefis MS Portfolio Return 2% -8% 264% [1] Month-to-date and year-to-date as of 2/10/2022 [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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As domestic demand continues to drive strong passenger numbers, Trefis believes that Alaska Air Group’s revenues to observe 36% (y-o-y) growth in 2022. Trends In Key Performance Metrics A prudent capital investment plan, stable demand, and high passenger load factor assisted 7% growth in ASMs (capacity) from 62 billion in 2017 to 66.6 billion in 2019. Total [2] ALK Return 7% 12% -34% S&P 500 Return 2% -4% 105% Trefis MS Portfolio Return 2% -8% 264% [1] Month-to-date and year-to-date as of 2/10/2022 [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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How did Alaska Air Group perform in 2021? In 2021, Alaska Air Group reported 30% contraction in operating revenues driven by a 21% reduction in capacity (available seat miles) and a 10% decline in load factor over 2019. Trends In Key Performance Metrics A prudent capital investment plan, stable demand, and high passenger load factor assisted 7% growth in ASMs (capacity) from 62 billion in 2017 to 66.6 billion in 2019.
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3786.0
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2022-02-14 00:00:00 UTC
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U.S. airlines see 2021 traffic jump, but below pre-pandemic levels
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https://www.nasdaq.com/articles/u.s.-airlines-see-2021-traffic-jump-but-below-pre-pandemic-levels-0
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By David Shepardson
WASHINGTON, Feb 14 (Reuters) - U.S. passenger airlines carried 670.4 million passengers in 2021, up 83% over 2020 levels but still down significantly from pre-coronaviruspandemic levels, the Transportation Department said on Monday.
The department in preliminary data said airlines carried 303.6 million more passengers in 2021 but 245.9 million fewer, or 27%, than in 2019. In 2019, domestic flights accounted for 88% of all passengers, while domestic trips accounted for 91% of all passengers in 2021, and international flights accounted for 9%.
In December, U.S. airlines carried 66.3 million passengers, 118% more than the same month in 2020 and 16% fewer than in December 2019.
U.S. air passenger travel fell by 60% in 2020 to the lowest level since 1984, down 549 million passengers over 2019.
Airlines for America, an industry trade group, said air travel was down 25% in late January, with domestic flights down 23% and international air travel down 38% and business travel still remains down about 51% over pre-pandemic levels.
The group said its members were operating 14% fewer flights in January below pre-pandemic levels.
The Transportation Security Administration said in the week ending Feb. 13, it screened 24% fewer passengers than 2019 levels.
Airlines around the world are expressing optimism that travel will rebound this spring and summer as the Omicron variant's spread diminishes.
Last month, U.S. carriers American Airlines AAL.O and United Airlines UAL.O said a recovery in passenger traffic was likely to resume in March after a blip caused by the Omicron coronavirus variant.
Starting in early 2020, Congress awarded U.S. airlines a total $54 billion in government assistance for payroll costs that expired in September 2021.
(Reporting by David Shepardson Editing 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.
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Last month, U.S. carriers American Airlines AAL.O and United Airlines UAL.O said a recovery in passenger traffic was likely to resume in March after a blip caused by the Omicron coronavirus variant. The Transportation Security Administration said in the week ending Feb. 13, it screened 24% fewer passengers than 2019 levels. Airlines around the world are expressing optimism that travel will rebound this spring and summer as the Omicron variant's spread diminishes.
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Last month, U.S. carriers American Airlines AAL.O and United Airlines UAL.O said a recovery in passenger traffic was likely to resume in March after a blip caused by the Omicron coronavirus variant. By David Shepardson WASHINGTON, Feb 14 (Reuters) - U.S. passenger airlines carried 670.4 million passengers in 2021, up 83% over 2020 levels but still down significantly from pre-coronaviruspandemic levels, the Transportation Department said on Monday. In 2019, domestic flights accounted for 88% of all passengers, while domestic trips accounted for 91% of all passengers in 2021, and international flights accounted for 9%.
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Last month, U.S. carriers American Airlines AAL.O and United Airlines UAL.O said a recovery in passenger traffic was likely to resume in March after a blip caused by the Omicron coronavirus variant. By David Shepardson WASHINGTON, Feb 14 (Reuters) - U.S. passenger airlines carried 670.4 million passengers in 2021, up 83% over 2020 levels but still down significantly from pre-coronaviruspandemic levels, the Transportation Department said on Monday. In 2019, domestic flights accounted for 88% of all passengers, while domestic trips accounted for 91% of all passengers in 2021, and international flights accounted for 9%.
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Last month, U.S. carriers American Airlines AAL.O and United Airlines UAL.O said a recovery in passenger traffic was likely to resume in March after a blip caused by the Omicron coronavirus variant. By David Shepardson WASHINGTON, Feb 14 (Reuters) - U.S. passenger airlines carried 670.4 million passengers in 2021, up 83% over 2020 levels but still down significantly from pre-coronaviruspandemic levels, the Transportation Department said on Monday. The department in preliminary data said airlines carried 303.6 million more passengers in 2021 but 245.9 million fewer, or 27%, than in 2019.
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3787.0
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2022-02-14 00:00:00 UTC
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Activist Bluebell Capital charts plan for Glencore coal spin-off
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AAL
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https://www.nasdaq.com/articles/activist-bluebell-capital-charts-plan-for-glencore-coal-spin-off
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nan
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Feb 14 (Reuters) - Activist investor Bluebell Capital Partners has proposed a new structure for Glencore GLEN.L that would allow the miner to separate its thermal coal business and still maintain control of the spin-off, a letter showed on Monday.
In November, Bluebell asked Glencore to separate the unit to allow more investors to buy the stock, but Glencore Chief Executive Officer Gary Nagle had then said none of its major shareholders were asking for a spin-off.
In the letter dated Jan. 24, London-based Bluebell set out a plan for Glencore to separate its coal company with A and B shares.
Thermal coal is the most polluting fossil fuel and other major mining companies, including Rio Tinto RIO.L, RIO.AX and Anglo American AAL.L, have sold or spun off their coal assets as they ramp up focus on greener initiatives.
Thermal coal prices, however, are close to all-time highs hit last year on expectations of a continued shortage of energy supply.
Glencore is set to report annual results on Tuesday.
(Reporting by Sinchita Mitra in Bengaluru and Clara Denina in London; Editing by Devika Syamnath)
((Sinchita.Mitra@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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Thermal coal is the most polluting fossil fuel and other major mining companies, including Rio Tinto RIO.L, RIO.AX and Anglo American AAL.L, have sold or spun off their coal assets as they ramp up focus on greener initiatives. Feb 14 (Reuters) - Activist investor Bluebell Capital Partners has proposed a new structure for Glencore GLEN.L that would allow the miner to separate its thermal coal business and still maintain control of the spin-off, a letter showed on Monday. In the letter dated Jan. 24, London-based Bluebell set out a plan for Glencore to separate its coal company with A and B shares.
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Thermal coal is the most polluting fossil fuel and other major mining companies, including Rio Tinto RIO.L, RIO.AX and Anglo American AAL.L, have sold or spun off their coal assets as they ramp up focus on greener initiatives. Feb 14 (Reuters) - Activist investor Bluebell Capital Partners has proposed a new structure for Glencore GLEN.L that would allow the miner to separate its thermal coal business and still maintain control of the spin-off, a letter showed on Monday. In the letter dated Jan. 24, London-based Bluebell set out a plan for Glencore to separate its coal company with A and B shares.
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Thermal coal is the most polluting fossil fuel and other major mining companies, including Rio Tinto RIO.L, RIO.AX and Anglo American AAL.L, have sold or spun off their coal assets as they ramp up focus on greener initiatives. Feb 14 (Reuters) - Activist investor Bluebell Capital Partners has proposed a new structure for Glencore GLEN.L that would allow the miner to separate its thermal coal business and still maintain control of the spin-off, a letter showed on Monday. In November, Bluebell asked Glencore to separate the unit to allow more investors to buy the stock, but Glencore Chief Executive Officer Gary Nagle had then said none of its major shareholders were asking for a spin-off.
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Thermal coal is the most polluting fossil fuel and other major mining companies, including Rio Tinto RIO.L, RIO.AX and Anglo American AAL.L, have sold or spun off their coal assets as they ramp up focus on greener initiatives. Feb 14 (Reuters) - Activist investor Bluebell Capital Partners has proposed a new structure for Glencore GLEN.L that would allow the miner to separate its thermal coal business and still maintain control of the spin-off, a letter showed on Monday. In the letter dated Jan. 24, London-based Bluebell set out a plan for Glencore to separate its coal company with A and B shares.
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3788.0
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2022-02-14 00:00:00 UTC
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Should You Invest in the U.S. Global Jets ETF (JETS)?
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https://www.nasdaq.com/articles/should-you-invest-in-the-u.s.-global-jets-etf-jets-0
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nan
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Launched on 04/30/2015, the U.S. Global Jets ETF (JETS) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $3.78 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market. JETS seeks to match the performance of the U.S. Global Jets Index before fees and expenses.
The U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.64%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Southwest Airls Co (LUV) accounts for about 9.94% of total assets, followed by United Airls Hldgs Inc (UAL) and American Airls Group Inc (AAL).
The top 10 holdings account for about 56.86% of total assets under management.
Performance and Risk
The ETF has added roughly 1.84% so far this year and is down about -4.73% in the last one year (as of 02/14/2022). In that past 52-week period, it has traded between $19.38 and $28.71.
The ETF has a beta of 1.41 and standard deviation of 44.40% for the trailing three-year period, making it a high risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
U.S. Global Jets ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, JETS is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
First Trust NASDAQ Transportation ETF (FTXR) tracks Nasdaq US Smart Transportation Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index. First Trust NASDAQ Transportation ETF has $1.13 billion in assets, iShares U.S. Transportation ETF has $1.53 billion. FTXR has an expense ratio of 0.60% and IYT charges 0.41%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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U.S. Global Jets ETF (JETS): ETF Research Reports
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
iShares U.S. Transportation ETF (IYT): ETF Research Reports
First Trust NASDAQ Transportation ETF (FTXR): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Southwest Airls Co (LUV) accounts for about 9.94% of total assets, followed by United Airls Hldgs Inc (UAL) and American Airls Group Inc (AAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report It has amassed assets over $3.78 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market.
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Looking at individual holdings, Southwest Airls Co (LUV) accounts for about 9.94% of total assets, followed by United Airls Hldgs Inc (UAL) and American Airls Group Inc (AAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report Global Jets ETF (JETS) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
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Looking at individual holdings, Southwest Airls Co (LUV) accounts for about 9.94% of total assets, followed by United Airls Hldgs Inc (UAL) and American Airls Group Inc (AAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report First Trust NASDAQ Transportation ETF (FTXR) tracks Nasdaq US Smart Transportation Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index.
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Looking at individual holdings, Southwest Airls Co (LUV) accounts for about 9.94% of total assets, followed by United Airls Hldgs Inc (UAL) and American Airls Group Inc (AAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report Global Jets ETF (JETS) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
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3789.0
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2022-02-14 00:00:00 UTC
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US STOCKS-Futures slide on fears of potential Russian attack on Ukraine
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AAL
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https://www.nasdaq.com/articles/us-stocks-futures-slide-on-fears-of-potential-russian-attack-on-ukraine
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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.
Futures down: Dow 0.79%, S&P 0.90%, Nasdaq 1.06%
Feb 14 (Reuters) - U.S. stock index futures fell nearly 1% on Monday, pointing to a fresh round of declines on Wall Street with investors rattled by warnings that Russia could invade Ukraine at any time.
The United States has said the threat of an invasion is imminent, while keeping diplomatic channels open and reaffirming its pledge to defend "every inch" of NATO territory.
Declines were across the board, with cyclical banks and industrials including JPMorgan Chase & Co JPM.N, Boeing Co BA.N, Caterpillar Inc CAT.N and Goldman Sachs Group Inc GS.N down between 1.4% and 1.9% in premarket trading.
Megacap growth firms including Meta Platforms Inc FB.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O shed between 1.1% and 2.3%.
The CBOE Market Volatility index .VIX, also known as Wall Street's fear gauge, shot up to its highest level in nearly three weeks.
Heightening geopolitical risks also hit global equity markets, with Asian stocks kicking off the day in a soft footing followed by a weak performance by European shares. MKTS/GLOB
Travel stocks including American Airlines AAL.O and Carnival Corp CCL.N also dropped over 2% each.
At 5:21 a.m. ET, Dow e-minis 1YMcv1 were down 273 points, or 0.79%, S&P 500 e-minis EScv1 were down 39.75 points, or 0.9%, and Nasdaq 100 e-minis NQcv1 were down 150.5 points, or 1.06%.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MKTS/GLOB Travel stocks including American Airlines AAL.O and Carnival Corp CCL.N also dropped over 2% each. The United States has said the threat of an invasion is imminent, while keeping diplomatic channels open and reaffirming its pledge to defend "every inch" of NATO territory. Declines were across the board, with cyclical banks and industrials including JPMorgan Chase & Co JPM.N, Boeing Co BA.N, Caterpillar Inc CAT.N and Goldman Sachs Group Inc GS.N down between 1.4% and 1.9% in premarket trading.
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MKTS/GLOB Travel stocks including American Airlines AAL.O and Carnival Corp CCL.N also dropped over 2% each. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.79%, S&P 0.90%, Nasdaq 1.06% Feb 14 (Reuters) - U.S. stock index futures fell nearly 1% on Monday, pointing to a fresh round of declines on Wall Street with investors rattled by warnings that Russia could invade Ukraine at any time.
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MKTS/GLOB Travel stocks including American Airlines AAL.O and Carnival Corp CCL.N also dropped over 2% each. Futures down: Dow 0.79%, S&P 0.90%, Nasdaq 1.06% Feb 14 (Reuters) - U.S. stock index futures fell nearly 1% on Monday, pointing to a fresh round of declines on Wall Street with investors rattled by warnings that Russia could invade Ukraine at any time. Heightening geopolitical risks also hit global equity markets, with Asian stocks kicking off the day in a soft footing followed by a weak performance by European shares.
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MKTS/GLOB Travel stocks including American Airlines AAL.O and Carnival Corp CCL.N also dropped over 2% each. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.79%, S&P 0.90%, Nasdaq 1.06% Feb 14 (Reuters) - U.S. stock index futures fell nearly 1% on Monday, pointing to a fresh round of declines on Wall Street with investors rattled by warnings that Russia could invade Ukraine at any time.
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3790.0
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2022-02-13 00:00:00 UTC
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Unruly passenger incident forces American Airlines flight to divert to Kansas City
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AAL
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https://www.nasdaq.com/articles/unruly-passenger-incident-forces-american-airlines-flight-to-divert-to-kansas-city
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nan
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Feb 13 (Reuters) - An American Airlines flight headed to Washington on Sunday was diverted to Kansas City after crew members and passengers subdued an unruly passenger, the airline said.
Flight 1775 from Los Angeles to Washington, D.C. landed in Kansas City International Airport at about 2:30 p.m. local time where it was met by law enforcement, American Airlines said in a statement.
"An unruly passenger displaying erratic behavior ... was ultimately subdued by our crew and with the help of other passengers," the airline said without providing further details of the incident.
U.S. airlines have reported a record number of disruptive and sometimes violent incidents in 2021. The U.S. Justice Department on Tuesday said it is "fully committed" to holding disruptive airline passengers who violate federal law accountable.
(Reporting by Brendan O'Brien in Chicago; Editing by Kenneth Maxwell)
((brendan.obrien@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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Feb 13 (Reuters) - An American Airlines flight headed to Washington on Sunday was diverted to Kansas City after crew members and passengers subdued an unruly passenger, the airline said. Flight 1775 from Los Angeles to Washington, D.C. landed in Kansas City International Airport at about 2:30 p.m. local time where it was met by law enforcement, American Airlines said in a statement. The U.S. Justice Department on Tuesday said it is "fully committed" to holding disruptive airline passengers who violate federal law accountable.
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Feb 13 (Reuters) - An American Airlines flight headed to Washington on Sunday was diverted to Kansas City after crew members and passengers subdued an unruly passenger, the airline said. Flight 1775 from Los Angeles to Washington, D.C. landed in Kansas City International Airport at about 2:30 p.m. local time where it was met by law enforcement, American Airlines said in a statement. The U.S. Justice Department on Tuesday said it is "fully committed" to holding disruptive airline passengers who violate federal law accountable.
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Feb 13 (Reuters) - An American Airlines flight headed to Washington on Sunday was diverted to Kansas City after crew members and passengers subdued an unruly passenger, the airline said. "An unruly passenger displaying erratic behavior ... was ultimately subdued by our crew and with the help of other passengers," the airline said without providing further details of the incident. (Reporting by Brendan O'Brien in Chicago; Editing by Kenneth Maxwell) ((brendan.obrien@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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Feb 13 (Reuters) - An American Airlines flight headed to Washington on Sunday was diverted to Kansas City after crew members and passengers subdued an unruly passenger, the airline said. U.S. airlines have reported a record number of disruptive and sometimes violent incidents in 2021. The U.S. Justice Department on Tuesday said it is "fully committed" to holding disruptive airline passengers who violate federal law accountable.
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3791.0
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2022-02-11 00:00:00 UTC
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Friday Sector Laggards: Technology & Communications, Industrial
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AAL
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https://www.nasdaq.com/articles/friday-sector-laggards%3A-technology-communications-industrial
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nan
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nan
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In afternoon trading on Friday, Technology & Communications stocks are the worst performing sector, showing a 2.6% loss. Within that group, Xilinx, Inc. (Symbol: XLNX) and Advanced Micro Devices Inc (Symbol: AMD) are two of the day's laggards, showing a loss of 8.7% and 8.7%, respectively. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is down 2.5% on the day, and down 10.42% year-to-date. Xilinx, Inc., meanwhile, is down 6.60% year-to-date, and Advanced Micro Devices Inc, is down 20.16% year-to-date. Combined, XLNX and AMD make up approximately 2.0% of the underlying holdings of XLK.
The next worst performing sector is the Industrial sector, showing a 2.0% loss. Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Copart Inc (Symbol: CPRT) are the most notable, showing a loss of 6.0% and 5.6%, respectively. One ETF closely tracking Industrial stocks is the Industrial Select Sector SPDR ETF (XLI), which is down 1.5% in midday trading, and down 6.05% on a year-to-date basis. American Airlines Group Inc, meanwhile, is down 2.08% year-to-date, and Copart Inc, is down 20.04% year-to-date. Combined, AAL and CPRT make up approximately 1.3% 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 Friday. As you can see, one sector is up on the day, while eight sectors are down.
SECTOR % CHANGE
Energy +2.4%
Utilities -0.1%
Consumer Products -0.8%
Materials -0.9%
Healthcare -1.2%
Financial -1.3%
Services -1.7%
Industrial -2.0%
Technology & Communications -2.6%
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, American Airlines Group Inc (Symbol: AAL) and Copart Inc (Symbol: CPRT) are the most notable, showing a loss of 6.0% and 5.6%, respectively. Combined, AAL and CPRT make up approximately 1.3% of the underlying holdings of XLI. In afternoon trading on Friday, Technology & Communications stocks are the worst performing sector, showing a 2.6% loss.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Copart Inc (Symbol: CPRT) are the most notable, showing a loss of 6.0% and 5.6%, respectively. Combined, AAL and CPRT make up approximately 1.3% of the underlying holdings of XLI. In afternoon trading on Friday, Technology & Communications stocks are the worst performing sector, showing a 2.6% loss.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Copart Inc (Symbol: CPRT) are the most notable, showing a loss of 6.0% and 5.6%, respectively. Combined, AAL and CPRT make up approximately 1.3% of the underlying holdings of XLI. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is down 2.5% on the day, and down 10.42% year-to-date.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Copart Inc (Symbol: CPRT) are the most notable, showing a loss of 6.0% and 5.6%, respectively. Combined, AAL and CPRT make up approximately 1.3% of the underlying holdings of XLI. In afternoon trading on Friday, Technology & Communications stocks are the worst performing sector, showing a 2.6% loss.
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3792.0
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2022-02-11 00:00:00 UTC
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Why Airline Stocks Gained Altitude This Week
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-gained-altitude-this-week
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nan
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nan
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What happened
The nation's smaller, discount airlines made most of the news this week, but the industry giants went along for the ride. Shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and American Airlines Group (NASDAQ: AAL) all traded up more than 11% for the week as of Friday morning, according to data provided by S&P Global Market Intelligence, as a wave of optimism about 2022 swept through the sector.
So what
This week in airlines started with Monday's blockbuster announcement that Frontier Group Holdings (NASDAQ: ULCC) and Spirit Airlines (NYSE: SAVE) planned to combine in a deal valued at more than $6.6 billion. The deal would create the nation's fifth largest carrier, and long-term could mean a more formidable rival to the big three.
Image source: Getty Images.
But in the near term the context of the deal moved the entire industry higher. Airlines have faced a difficult two years due to the pandemic, but the Frontier/Spirit move is based squarely on the opportunity for post-pandemic growth. Airline investors for months now have been searching for signs that the industry believes the worst of the pandemic is over, and the deal was read as a major step in that direction.
Another discounter, Sun Country Airlines Holdings (NASDAQ: SNCY), added to the enthusiasm midweek when it reported earnings that came in well ahead of expectations. On the post-earnings call, Sun Country CEO Jude Bricker told analysts that a silver lining to the industrywide struggle to find pilots is he expects higher airfares ahead, and less temptation to engage in margin-destroying fare wars by flooding markets with capacity.
In years past, airlines often didn't fully benefit from good times because some of the market participants would use rock-bottom pricing to try to attract more business. Given the constraints caused by the pilot shortage, there could be a better chance of fare discipline this summer.
Now what
The airlines do appear well on their way toward getting back to normal, but investors should be warned there is still a long journey ahead. It will likely take until late 2023 at the earliest before these major airlines see all-important business and international travel fully recover, and the carriers will also need time to repair balance sheets bruised by the pandemic.
Throw in the potential for a new variant or some other twist to the pandemic, and there is a lot that can go wrong from here. For long-term minded investors who can handle turbulence, Delta is the top pick among these major airlines due to its strong management team and relatively healthy balance sheet. But holders of any of these airlines should keep their seatbelts fastened even after a strong week.
10 stocks we like better than Delta Air Lines
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*Stock Advisor returns as of January 20, 2022
Lou Whiteman owns Delta Air Lines and Spirit Airlines. The Motley Fool owns and recommends Spirit Airlines. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and American Airlines Group (NASDAQ: AAL) all traded up more than 11% for the week as of Friday morning, according to data provided by S&P Global Market Intelligence, as a wave of optimism about 2022 swept through the sector. On the post-earnings call, Sun Country CEO Jude Bricker told analysts that a silver lining to the industrywide struggle to find pilots is he expects higher airfares ahead, and less temptation to engage in margin-destroying fare wars by flooding markets with capacity. It will likely take until late 2023 at the earliest before these major airlines see all-important business and international travel fully recover, and the carriers will also need time to repair balance sheets bruised by the pandemic.
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Shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and American Airlines Group (NASDAQ: AAL) all traded up more than 11% for the week as of Friday morning, according to data provided by S&P Global Market Intelligence, as a wave of optimism about 2022 swept through the sector. Another discounter, Sun Country Airlines Holdings (NASDAQ: SNCY), added to the enthusiasm midweek when it reported earnings that came in well ahead of expectations. The Motley Fool recommends Delta Air Lines.
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Shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and American Airlines Group (NASDAQ: AAL) all traded up more than 11% for the week as of Friday morning, according to data provided by S&P Global Market Intelligence, as a wave of optimism about 2022 swept through the sector. So what This week in airlines started with Monday's blockbuster announcement that Frontier Group Holdings (NASDAQ: ULCC) and Spirit Airlines (NYSE: SAVE) planned to combine in a deal valued at more than $6.6 billion. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Lou Whiteman owns Delta Air Lines and Spirit Airlines.
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Shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and American Airlines Group (NASDAQ: AAL) all traded up more than 11% for the week as of Friday morning, according to data provided by S&P Global Market Intelligence, as a wave of optimism about 2022 swept through the sector. On the post-earnings call, Sun Country CEO Jude Bricker told analysts that a silver lining to the industrywide struggle to find pilots is he expects higher airfares ahead, and less temptation to engage in margin-destroying fare wars by flooding markets with capacity. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Lou Whiteman owns Delta Air Lines and Spirit Airlines.
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3793.0
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2022-02-10 00:00:00 UTC
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Investors in American Airlines Group (NASDAQ:AAL) from five years ago are still down 59%, even after 11% gain this past week
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AAL
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https://www.nasdaq.com/articles/investors-in-american-airlines-group-nasdaq%3Aaal-from-five-years-ago-are-still-down-59-even
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nan
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nan
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This week we saw the American Airlines Group Inc. (NASDAQ:AAL) share price climb by 11%. But don't envy holders -- looking back over 5 years the returns have been really bad. The share price has failed to impress anyone , down a sizable 61% during that time. Some might say the recent bounce is to be expected after such a bad drop. We'd err towards caution given the long term under-performance.
Although the past week has been more reassuring for shareholders, they're still in the red over the last five years, so let's see if the underlying business has been responsible for the decline.
Given that American Airlines Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last five years American Airlines Group saw its revenue shrink by 13% per year. That puts it in an unattractive cohort, to put it mildly. It seems appropriate, then, that the share price slid about 10% annually during that time. It's fair to say most investors don't like to invest in loss making companies with falling revenue. You'd want to research this company pretty thoroughly before buying, it looks a bit too risky for us.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
NasdaqGS:AAL Earnings and Revenue Growth February 10th 2022
American Airlines Group is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think American Airlines Group will earn in the future (free analyst consensus estimates)
A Different Perspective
We're pleased to report that American Airlines Group shareholders have received a total shareholder return of 7.8% over one year. Notably the five-year annualised TSR loss of 10% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand American Airlines Group better, we need to consider many other factors. Even so, be aware that American Airlines Group is showing 3 warning signs in our investment analysis , and 2 of those are potentially serious...
We will like American Airlines Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NasdaqGS:AAL Earnings and Revenue Growth February 10th 2022 American Airlines Group is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. This week we saw the American Airlines Group Inc. (NASDAQ:AAL) share price climb by 11%. Given that American Airlines Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development.
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This week we saw the American Airlines Group Inc. (NASDAQ:AAL) share price climb by 11%. NasdaqGS:AAL Earnings and Revenue Growth February 10th 2022 American Airlines Group is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think American Airlines Group will earn in the future (free analyst consensus estimates) A Different Perspective We're pleased to report that American Airlines Group shareholders have received a total shareholder return of 7.8% over one year.
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This week we saw the American Airlines Group Inc. (NASDAQ:AAL) share price climb by 11%. NasdaqGS:AAL Earnings and Revenue Growth February 10th 2022 American Airlines Group is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given that American Airlines Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development.
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This week we saw the American Airlines Group Inc. (NASDAQ:AAL) share price climb by 11%. NasdaqGS:AAL Earnings and Revenue Growth February 10th 2022 American Airlines Group is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given that American Airlines Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development.
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3794.0
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2022-02-08 00:00:00 UTC
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Boeing deliveries remain low as 787 problems weigh
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AAL
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https://www.nasdaq.com/articles/boeing-deliveries-remain-low-as-787-problems-weigh
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nan
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Adds details on Airbus deliveries
Feb 8 (Reuters) - Boeing Co BA.N said on Tuesday it delivered 32 aircraft in January as its sidelined 787 Dreamliner program continued to weigh on the planemaker's ability to capitalize on a recovery in air travel.
The company handed over 27 737 MAX jets in January and three widebody aircraft, including a 777 freighter, Boeing said in its closely watched monthly report.
Of the 27 MAX deliveries, seven were to Irish budget carrier Ryanair RYA.I, while China Eastern Airlines 600115.SS took delivery of one 777 freighter.
Boeing handed over 38 jets in December and 34 in November.
The fewer January deliveries reflect a seasonal dip. Boeing delivered 26 aircraft in the same period a year ago.
The 737 MAX and the 787 Dreamliner are crucial to Boeing's ability to recover from the pandemic and catch up with Airbus AIR.PA, having lost out on the delivery race to its European rival for the third consecutive year.
After slashing production mainly due to the pandemic, planemakers are seeing more demand for medium-haul passenger jets and freighters, and are rushing to ramp up production.
However, snags in Dreamliner production have proved costly for Boeing, with the company incurring $4.5 billion in charges in the fourth quarter and paying customers penalties for pushing back deliveries.
Boeing booked 77 orders on a gross basis in January, including for 55 MAX airplanes and 22 freighters. Demand for the cargo planes has been a bright spot for the company, as it continues to dominate sales during an e-commerce surge.
Of the freighter orders, 14 were from Qatar Airways for the 777-8 model. The airline last month handed Boeing an order for 34 new 777X freighters and 25 737-10 MAX jets.
Of the 737 MAX orders in January, 20 were from unspecified customers, with U.S. carriers American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N making up the remaining 35.
There were two cancellations for the 737 MAX in January, bringing Boeing's overall net orders to 75.
Airbus delivered 30 airplanes in January.
A $600 million contractual and safety dispute between Airbus and Qatar Airways deepened on Tuesday when the European planemaker revoked orders for two A350-1000 jets, days after ripping up an order from the Gulf carrier for 50 A321neos.
Qatar Airways has sued Airbus for more than $600 million and is refusing to take further delivery of A350s until its regulator receives a formal analysis of erosion to the painted surface and underlying lightning protection on 21 of the jets.
Airbus included the cancellations for 50 A321neos and two A350-1000s in a monthly summary for January, pushing it into negative territory with a net total of minus 16 orders for the month, after receiving 36 new orders.
(Reporting by Abhijith Ganapavaram in Bengaluru and Eric M. Johnson in Seattle; Editing by Shounak Dasgupta and Richard Chang)
((Abhijith.G@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of the 737 MAX orders in January, 20 were from unspecified customers, with U.S. carriers American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N making up the remaining 35. Adds details on Airbus deliveries Feb 8 (Reuters) - Boeing Co BA.N said on Tuesday it delivered 32 aircraft in January as its sidelined 787 Dreamliner program continued to weigh on the planemaker's ability to capitalize on a recovery in air travel. However, snags in Dreamliner production have proved costly for Boeing, with the company incurring $4.5 billion in charges in the fourth quarter and paying customers penalties for pushing back deliveries.
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Of the 737 MAX orders in January, 20 were from unspecified customers, with U.S. carriers American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N making up the remaining 35. Adds details on Airbus deliveries Feb 8 (Reuters) - Boeing Co BA.N said on Tuesday it delivered 32 aircraft in January as its sidelined 787 Dreamliner program continued to weigh on the planemaker's ability to capitalize on a recovery in air travel. The company handed over 27 737 MAX jets in January and three widebody aircraft, including a 777 freighter, Boeing said in its closely watched monthly report.
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Of the 737 MAX orders in January, 20 were from unspecified customers, with U.S. carriers American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N making up the remaining 35. Adds details on Airbus deliveries Feb 8 (Reuters) - Boeing Co BA.N said on Tuesday it delivered 32 aircraft in January as its sidelined 787 Dreamliner program continued to weigh on the planemaker's ability to capitalize on a recovery in air travel. The company handed over 27 737 MAX jets in January and three widebody aircraft, including a 777 freighter, Boeing said in its closely watched monthly report.
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Of the 737 MAX orders in January, 20 were from unspecified customers, with U.S. carriers American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N making up the remaining 35. Boeing delivered 26 aircraft in the same period a year ago. Boeing booked 77 orders on a gross basis in January, including for 55 MAX airplanes and 22 freighters.
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3795.0
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2022-02-08 00:00:00 UTC
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Indigo's Franke bets on winning cost formula for Frontier-Spirit airline
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AAL
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https://www.nasdaq.com/articles/indigos-franke-bets-on-winning-cost-formula-for-frontier-spirit-airline
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nan
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nan
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By Chibuike Oguh and Tim Hepher
Feb 8 (Reuters) - Veteran budget airline investor Bill Franke has pledged to avoid what he once called the "path to hell" after masterminding a $2.9 billion merger of discount airlines - letting dealmaking get the better of tight cost controls that support low fares.
The 84-year-old entrepreneur has turned his private equity firm's initial $36 million in Frontier Group Holdings ULCC.O into a stake worth $2.4 billion in the agreed merger with Spirit Airlines Inc SAVE.N - a rare feat in high-risk airline deals.
On Monday, Frontier and Spirit unveiled their plans to create the fifth-largest U.S. airline, valuing Florida-based Spirit at about $2.9 billion excluding debt.
After spearheading the low-cost strategy at both airlines - having previously served as a chairman and key shareholder of Spirit and now Frontier - Franke is no mood to relax the simple formula that underpins his investments on three continents.
"The trick is being disciplined about cost structure," Franke told Reuters in an interview.
Franke has long been a pioneer of ultra-low cost airlines like Frontier and Spirit, which occupy a tier of the market below long-established budget rivals like Southwest LUV.N.
Such airlines rely on offering a fare stripped back to its lowest possible level, topped up by charges for extras like booking through a call center, a strategy known as unbundling.
The business also keeps a laser focus on serving tourism or visits to relatives, without chasing after business travelers.
Such carriers were among the first to recover from the pandemic.
"There's been a rebound in booking in the U.S. though most of them is the class we call visiting family and friends rather than business travel," Franke said.
"We're optimistic because there is pent-up demand. Consumers still like to pay low prices."
BUSINESS MODEL
The pledge to maintain low costs and fares appears directed in part at U.S. regulators who will closely review the merger deal, amid increased scepticism about takeovers under the Biden administration, according to lawyers.
But it also reflects Franke's reluctance to make compromises on the business model purely for the sake of expansion - a message unlikely to be lost on other airlines in which his investment firm owns shares, like Europe's Wizz Air WIZZ.L.
While Frontier, Spirit and Wizz all have similar business strategies, Wizz Air triggered concerns among some analysts about its ability to expand without losing control of costs when it made an approach to Britain's easyJet EZJ.L last year.
EasyJet rejected the approach and Wizz Air, which never confirmed the move, subsequently said it preferred organic growth without being "blind" to other opportunities.
Franke began his airline career at then-bankrupt America West Airlines, which later acquired U.S. Airways and was then bought out by American Airlines.
His airline-focused buyout firm, Indigo Partners, owns stakes in Wizz Air, JetSMART of Chile and Mexico's Volaris, as well as 83% of Colorado-based Frontier, valued at $2.7 billion.
It is expected to own about 43% in the combined entity following the merger of Frontier and Spirit.
Indigo, which Franke founded in 2002, paid $36 million to acquire ownership and assume the debt of Frontier from Republic Airways Holdings Inc in 2013 after selling shares in Spirit.
Franke rebranded Frontier as a low-cost, no-frills carrier, flying its jets for longer hours and eliminating some destinations served by major U.S. airlines.
Indigo took Frontier public in April 2021 after the airline grew to become a U.S. regional player and following the COVID-19 pandemic, which had upended air travel worldwide.
Frontier was valued at $4.5 billion in that offering, which raised $300 million for the airline and another $300 million for Indigo. It closed on Monday at $12.82 per share, for a market value of $2.8 billion - still a 66-fold gain on Franke's gamble.
(Reporting by Chibuike Oguh in New York, Tim Hepher in Paris, Additional reporting by Rajesh Kumar Singh in Chicago; Editing by Catherine Evans)
((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters Messaging: chibuike.oguh.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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After spearheading the low-cost strategy at both airlines - having previously served as a chairman and key shareholder of Spirit and now Frontier - Franke is no mood to relax the simple formula that underpins his investments on three continents. The pledge to maintain low costs and fares appears directed in part at U.S. regulators who will closely review the merger deal, amid increased scepticism about takeovers under the Biden administration, according to lawyers. But it also reflects Franke's reluctance to make compromises on the business model purely for the sake of expansion - a message unlikely to be lost on other airlines in which his investment firm owns shares, like Europe's Wizz Air WIZZ.L.
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By Chibuike Oguh and Tim Hepher Feb 8 (Reuters) - Veteran budget airline investor Bill Franke has pledged to avoid what he once called the "path to hell" after masterminding a $2.9 billion merger of discount airlines - letting dealmaking get the better of tight cost controls that support low fares. While Frontier, Spirit and Wizz all have similar business strategies, Wizz Air triggered concerns among some analysts about its ability to expand without losing control of costs when it made an approach to Britain's easyJet EZJ.L last year. His airline-focused buyout firm, Indigo Partners, owns stakes in Wizz Air, JetSMART of Chile and Mexico's Volaris, as well as 83% of Colorado-based Frontier, valued at $2.7 billion.
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By Chibuike Oguh and Tim Hepher Feb 8 (Reuters) - Veteran budget airline investor Bill Franke has pledged to avoid what he once called the "path to hell" after masterminding a $2.9 billion merger of discount airlines - letting dealmaking get the better of tight cost controls that support low fares. The 84-year-old entrepreneur has turned his private equity firm's initial $36 million in Frontier Group Holdings ULCC.O into a stake worth $2.4 billion in the agreed merger with Spirit Airlines Inc SAVE.N - a rare feat in high-risk airline deals. Franke began his airline career at then-bankrupt America West Airlines, which later acquired U.S. Airways and was then bought out by American Airlines.
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By Chibuike Oguh and Tim Hepher Feb 8 (Reuters) - Veteran budget airline investor Bill Franke has pledged to avoid what he once called the "path to hell" after masterminding a $2.9 billion merger of discount airlines - letting dealmaking get the better of tight cost controls that support low fares. "There's been a rebound in booking in the U.S. though most of them is the class we call visiting family and friends rather than business travel," Franke said. Indigo, which Franke founded in 2002, paid $36 million to acquire ownership and assume the debt of Frontier from Republic Airways Holdings Inc in 2013 after selling shares in Spirit.
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3796.0
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2022-02-08 00:00:00 UTC
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Boeing deliveries slip to three-month low as Dreamliner problems weigh
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AAL
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https://www.nasdaq.com/articles/boeing-deliveries-slip-to-three-month-low-as-dreamliner-problems-weigh
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nan
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nan
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Feb 8 (Reuters) - Boeing Co BA.N said on Tuesday it delivered 32 aircraft in January, the lowest in three months, as its sidelined 787 Dreamliner program continued to weigh on the planemaker's ability to capitalize on a recovery in air travel.
The company handed over 27 737 MAX jets in January and three widebody aircraft, including a 777 freighter, Boeing said in its closely watched monthly report.
Of the 27 MAX deliveries, seven were to Irish budget carrier Ryanair RYA.I, while China Eastern Airlines took delivery of one 777 freighter.
Boeing handed over 38 jets in December and 34 in November.
The 737 MAX and the 787 Dreamliner are crucial to Boeing's ability to recover from the pandemic and catch up with Airbus AIR.PA, having lost out on the delivery race to its European rival for the third consecutive year.
After slashing production mainly due to the pandemic, planemakers are seeing more demand for medium-haul passenger jets and freighters, and are rushing to ramp up production.
However, snags in Dreamliner production have proved costly for Boeing, with the company incurring $4.5 billion in charges in the fourth quarter and paying penalties to customers for pushing back deliveries.
Boeing booked 77 orders on a gross basis in January, including orders for 55 MAX airplanes and 22 freighters. Demand for the cargo planes has been a bright spot for the company, as it continues to dominate sales amid an e-commerce surge.
Of the freighter orders, 14 were from Qatar Airways for the 777-8 model. The airline last month handed Boeing an order for 34 new 777X freighters and 25 737-10 MAX jets.
Of the 737 MAX orders in January, 20 were from unspecified customers, with U.S. carriers American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N making up the remaining 35.
There were two cancellations for the 737 MAX in January, bringing Boeing's overall net orders to 75.
(Reporting by Abhijith Ganapavaram in Bengaluru and Eric M. Johnson in Seattle; Editing by Shounak Dasgupta)
((Abhijith.G@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of the 737 MAX orders in January, 20 were from unspecified customers, with U.S. carriers American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N making up the remaining 35. Feb 8 (Reuters) - Boeing Co BA.N said on Tuesday it delivered 32 aircraft in January, the lowest in three months, as its sidelined 787 Dreamliner program continued to weigh on the planemaker's ability to capitalize on a recovery in air travel. The 737 MAX and the 787 Dreamliner are crucial to Boeing's ability to recover from the pandemic and catch up with Airbus AIR.PA, having lost out on the delivery race to its European rival for the third consecutive year.
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Of the 737 MAX orders in January, 20 were from unspecified customers, with U.S. carriers American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N making up the remaining 35. The company handed over 27 737 MAX jets in January and three widebody aircraft, including a 777 freighter, Boeing said in its closely watched monthly report. Boeing booked 77 orders on a gross basis in January, including orders for 55 MAX airplanes and 22 freighters.
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Of the 737 MAX orders in January, 20 were from unspecified customers, with U.S. carriers American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N making up the remaining 35. The company handed over 27 737 MAX jets in January and three widebody aircraft, including a 777 freighter, Boeing said in its closely watched monthly report. Boeing booked 77 orders on a gross basis in January, including orders for 55 MAX airplanes and 22 freighters.
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Of the 737 MAX orders in January, 20 were from unspecified customers, with U.S. carriers American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N making up the remaining 35. The company handed over 27 737 MAX jets in January and three widebody aircraft, including a 777 freighter, Boeing said in its closely watched monthly report. Boeing booked 77 orders on a gross basis in January, including orders for 55 MAX airplanes and 22 freighters.
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3797.0
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2022-02-08 00:00:00 UTC
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Frontier, Spirit tie-up will face close U.S. review - lawyers
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AAL
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https://www.nasdaq.com/articles/frontier-spirit-tie-up-will-face-close-u.s.-review-lawyers
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nan
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nan
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By David Shepardson
WASHINGTON, Feb 7 (Reuters) - A bid by budget carriers Frontier Group Holdings ULCC.O and Spirit Airlines Inc SAVE.N to create the fifth-largest U.S. airline will face close scrutiny from the Justice Department, lawyers said Monday.
The Biden administration has made injecting more competition into U.S. industries a key priority.
Andre Barlow, an antitrust lawyer at Doyle, Barlow & Mazard LLC, said in the "antitrust environment" the airlines would have trouble getting the deal past the department's Antitrust Division.
"Given the administration's stance against mergers, it will be difficult for these two low-budget competitors to convince the antitrust enforcers that its merger will lead to lower prices," he said.
Frontier and Spirit pledged to avoid any job losses and add 10,000 direct jobs by 2026. They also promised the merger would deliver $1 billion in annual consumer savings.
"DOJ will focus on whether the two airlines overlap with respect to city pairs and whether the combination of two budget airlines would result in higher prices for consumers," Barlow said.
Kenneth Quinn, a partner at Clyde & Co, said however that the DoJ would have a "hard time blocking this merger."
"You've got two ultra-low-cost carriers with a common fleet without a lot of competitive city pair overlap," he said.
The Justice Department sued in September to unwind American Airlines AAL.O and JetBlue Airways JBLU.O "Northeast Alliance" partnership, arguing it seeks to eliminate "significant competition between a dominant airline and a uniquely disruptive competitor."
The Justice Department declined to comment on the merger proposal. A White House spokesperson did not comment on the Frontier Spirit merger proposal but said the Biden administration "is committed to protecting competition across a wide range of industries for the benefit of consumers."
In September, the administration said it planned to award 16 slots for flights at Newark International Airport in New Jersey to a yet-to-be-determined low-cost carrier.
The slots were previously owned by United Airlines and then transferred to Southwest Airlines LUV.N before being given up. United advocated for them to be retired to reduce congestion.
Last month, the Transportation Department issued a new rule to make it easier for regulators to move faster to protect airline customers from unfair and deceptive practices. It plans future rules on airline ticket refunds and transparency of airline baggage and other fees.
American and three other airlines control over 80% of the U.S. domestic air market.
Tim Wu, a White House adviser on technology and competition policy, in 2018 argued consolidation resulted in the largest U.S. airlines "finding ways to give less for more: fewer flights (more crowded planes), smaller seats, fewer flight attendants, higher baggage and change fees and a stubborn resistance to lowering fares."
(Reporting by David Shepardson; Additional reporting by Abhijith Ganapavaram; Editing by Stephen Coates)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Justice Department sued in September to unwind American Airlines AAL.O and JetBlue Airways JBLU.O "Northeast Alliance" partnership, arguing it seeks to eliminate "significant competition between a dominant airline and a uniquely disruptive competitor." A White House spokesperson did not comment on the Frontier Spirit merger proposal but said the Biden administration "is committed to protecting competition across a wide range of industries for the benefit of consumers." Last month, the Transportation Department issued a new rule to make it easier for regulators to move faster to protect airline customers from unfair and deceptive practices.
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The Justice Department sued in September to unwind American Airlines AAL.O and JetBlue Airways JBLU.O "Northeast Alliance" partnership, arguing it seeks to eliminate "significant competition between a dominant airline and a uniquely disruptive competitor." "DOJ will focus on whether the two airlines overlap with respect to city pairs and whether the combination of two budget airlines would result in higher prices for consumers," Barlow said. "You've got two ultra-low-cost carriers with a common fleet without a lot of competitive city pair overlap," he said.
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The Justice Department sued in September to unwind American Airlines AAL.O and JetBlue Airways JBLU.O "Northeast Alliance" partnership, arguing it seeks to eliminate "significant competition between a dominant airline and a uniquely disruptive competitor." By David Shepardson WASHINGTON, Feb 7 (Reuters) - A bid by budget carriers Frontier Group Holdings ULCC.O and Spirit Airlines Inc SAVE.N to create the fifth-largest U.S. airline will face close scrutiny from the Justice Department, lawyers said Monday. "DOJ will focus on whether the two airlines overlap with respect to city pairs and whether the combination of two budget airlines would result in higher prices for consumers," Barlow said.
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The Justice Department sued in September to unwind American Airlines AAL.O and JetBlue Airways JBLU.O "Northeast Alliance" partnership, arguing it seeks to eliminate "significant competition between a dominant airline and a uniquely disruptive competitor." Andre Barlow, an antitrust lawyer at Doyle, Barlow & Mazard LLC, said in the "antitrust environment" the airlines would have trouble getting the deal past the department's Antitrust Division. "DOJ will focus on whether the two airlines overlap with respect to city pairs and whether the combination of two budget airlines would result in higher prices for consumers," Barlow said.
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3798.0
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2022-02-08 00:00:00 UTC
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Spirit Airlines (SAVE) Inks Merger Deal With Frontier Airlines
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-save-inks-merger-deal-with-frontier-airlines
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nan
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nan
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Shares of Spirit Airlines SAVE surged 17.2% at the close of business on Feb 7 as news of its merger with Frontier Group Holdings ULCC, the parent company of Frontier Airlines, hit headlines. The $2.9-billion ($6.6 billion when the assumption of net debt and operating lease liabilities are considered) deal vows to enhance competition and create the fifth-largest U.S. airline, offering ultra-low fares for travel. Both Spirit Airlines and Frontier carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The deal between the two discount carriers comes at a time when the airline industry is reeling under the effects of the coronavirus pandemic. With domestic air-travel demand and leisure travel steadily improving, the budget carriers are better placed on the recovery path compared with the bigger carriers, which are being challenged by slow business travel recovery. Fresh travel restrictions as a result of Omicron are also denting international travel demand.
Similar to the challenges being faced by American Airlines AAL and JetBlue Airways JBLU over their proposed (operating) partnership, Spirit Airlines and Frontier might have difficulties in obtaining regulatory approvals.
Spirit Airlines, Inc. Price
Spirit Airlines, Inc. price | Spirit Airlines, Inc. Quote
Last year, the Department of Justice filed an antitrust lawsuit against American Airlines and JetBlue, alleging that their partnership is likely to reduce competition and jack up air fares. Nevertheless, the two airlines have continued their expansion initiatives under the Northeast Alliance (“NEA”).
Last December, American Airlines, carrying a Zacks Rank #4 (Sell), announced plans to expand its global footprint in 2022 under the NEA with new nonstop service between New York’s John F. Kennedy International Airport (JFK) and Doha, Qatar’s Hamad International Airport.
Under the NEA, JetBlue, carrying a Zacks Rank #4, will introduce new services to Vancouver, Canada from both New York-JFK and Boston in 2022. The carrier will also increase frequencies on several of its routes from New York-JFK, including Cancun, Mexico; Guayaquil, Ecuador; Raleigh–Durham, NC; and Minneapolis–St. Paul, MN.
Coming back to Spirit Airlines’ merger deal with Frontier Airlines, the combined airline will expand its network across the United States, Latin America and the Caribbean, offering more than 1,000 daily flights to over 145 destinations.
The combined entity is expected to generate annual revenues of approximately $5.3 billion (based on 2021 results). Once fully integrated, Frontier and Spirit Airlines are expected to deliver annual run-rate operating synergies of $500 million.
Per the terms of the merger agreement, Spirit Airlines’ shareholders will receive $25.83 per share, a premium of about 19% on the closing price of Feb 4. SAVE will own approximately 48.5% of the combined airline, while the remaining will be owned by ULCC.
Subject to customary closing conditions, the merger is expected to close in the second half of 2022.
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.
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
Frontier Group Holdings, Inc. (ULCC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Similar to the challenges being faced by American Airlines AAL and JetBlue Airways JBLU over their proposed (operating) partnership, Spirit Airlines and Frontier might have difficulties in obtaining regulatory approvals. American Airlines Group Inc. (AAL): Free Stock Analysis Report The $2.9-billion ($6.6 billion when the assumption of net debt and operating lease liabilities are considered) deal vows to enhance competition and create the fifth-largest U.S. airline, offering ultra-low fares for travel.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report Similar to the challenges being faced by American Airlines AAL and JetBlue Airways JBLU over their proposed (operating) partnership, Spirit Airlines and Frontier might have difficulties in obtaining regulatory approvals. Spirit Airlines, Inc. Price Spirit Airlines, Inc. price | Spirit Airlines, Inc. Quote
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Similar to the challenges being faced by American Airlines AAL and JetBlue Airways JBLU over their proposed (operating) partnership, Spirit Airlines and Frontier might have difficulties in obtaining regulatory approvals. American Airlines Group Inc. (AAL): Free Stock Analysis Report Shares of Spirit Airlines SAVE surged 17.2% at the close of business on Feb 7 as news of its merger with Frontier Group Holdings ULCC, the parent company of Frontier Airlines, hit headlines.
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Similar to the challenges being faced by American Airlines AAL and JetBlue Airways JBLU over their proposed (operating) partnership, Spirit Airlines and Frontier might have difficulties in obtaining regulatory approvals. American Airlines Group Inc. (AAL): Free Stock Analysis Report Shares of Spirit Airlines SAVE surged 17.2% at the close of business on Feb 7 as news of its merger with Frontier Group Holdings ULCC, the parent company of Frontier Airlines, hit headlines.
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3799.0
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2022-02-08 00:00:00 UTC
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Is JetBlue Airways Stock Poised For Strong Gains?
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AAL
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https://www.nasdaq.com/articles/is-jetblue-airways-stock-poised-for-strong-gains
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nan
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nan
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The shares of JetBlue Airways (NASDAQ: JBLU) are trading 30% below pre-Covid levels despite relatively high passenger numbers at TSA checkpoints, largely due to the uncertain macroeconomic environment from high crude oil prices. However, investors have been optimistic on Allegiant Travel Company (NASDAQ: ALGT), an air carrier with a focus on under-served U.S. cities. Last year, Allegiant stock surged beyond pre-Covid levels assisted by strong broader travel demand. While both companies cater to a similar value-sensitive leisure travel customer, Trefis believes that the uptick in Allegiant indicates a growth opportunity in JetBlue Airways stock. We compare the historical trends in revenues, margins, and valuation multiple of both companies in an interactive dashboard analysis, JetBlue Airways vs. Allegiant Travel Company – parts of which are highlighted below.
1. Revenue Growth
Allegiant Travel Company’s growth was higher than JetBlue before the pandemic, with ALGT’s revenues expanding by 10% p.a. from $1.4 billion in 2016 to $1.8 billion in 2019. JetBlue’s revenues grew at an average rate of 7% p.a. from $6.6 billion in 2016 to $8.1 billion in 2019. JetBlue Airways and Allegiant Travel reported a top-line contraction of 60% and 40% in 2020, respectively.
Allegiant segregates its operations into three segments, Airline, Sunseeker Resort, and Other non-Airline. The company is going through a transition phase by targeting only leisure customers as compared to business and leisure customers earlier. The company is planning expansion in low competition small & medium-sized under-served markets by providing low base fares and charging extra for ancillary services. With the renewed leisure focus, the company is developing a resort in Florida along with a golf course and setting-up family entertainment centers in cities on the route network.
Allegiant’s Airline, Sunseeker Resort, and Other non-Airline segments contribute 99%, 0.1%, and 0.9% of total revenues, respectively. The company’s passenger revenues observed a growth of 23% from $1.37 billion in 2017 to $1.68 billion in 2019, majorly assisted by a sharp 40% surge in ancillary service revenues. Optional travel-related services such as baggage fees, advance seat assignment, insurance, etc., are referred to as ancillary services.
JetBlue Airways primarily earns its revenues from the sale of air tickets and other ancillary services such as freight and mail. In the past few years, continued capacity growth along with rising ticket prices have been key contributors assisting topline expansion.
JetBlue’s domestic business contributes a bulk of the revenues and has been the major factor strengthening investor confidence in the stock. (related: Optimism In Estee Lauder Stock A Trigger For Delta Air Lines?)
2. Returns (Profits)
Coming to profitability, Allegiant has consistently reported better operating and net margin than Jet Blue.
In 2019, Allegiant reported operating and net margin of 20% and 13%, respectively. The company generated $442 million of operating cash on operating revenue of $1.8 billion. The company subsequently, invested $507 million in property, plant & equipment, returned $64 million to investors in dividends and buybacks, and raised $136 million in long-term debt (net of principal payments & issuance costs).
Whereas, JetBlue Airways reported operating and net income margin of 10% and 7%, respectively. The company generated $1.5 billion of operating cash on revenues of $8 billion and subsequently, invested $932 million in property, plant & equipment, and returned $542 million to investors in share repurchases.
Both companies have been following an almost similar capital investment plan by re-investing a sizable portion of operating cash into the business.
3. Risk
Allegiant Travel Company is a riskier bet as compared to JetBlue from the perspective of financial leverage.
Financial leverage coupled with strong topline growth is a boon for investors. However, interest expenses weigh on the bottom line if growth stalls.
In 2020, Allegiant and JetBlue reported $1.4 billion and $4.4 billion of long-term debt, respectively.
With $3 billion of cash & short-term investments, JetBlue has $1.4 billion of net debt.
Similarly, the $702 million of cash & short-term investments on Allegiant’s balance sheet results in $0.7 billion of net debt.
Considering the higher net debt to revenue ratio of Allegiant Travel Company, Trefis believes that it is a riskier pick over JetBlue. (related: Air Travel Demand To Push Boeing Stock Higher?)
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Feb 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
JBLU Return 0% 3% -35%
ALGT Return 0% -4% 7%
S&P 500 Return 0% -5% 102%
Trefis MS Portfolio Return 0% -9% 257%
[1] Month-to-date and year-to-date as of 2/1/2022
[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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While both companies cater to a similar value-sensitive leisure travel customer, Trefis believes that the uptick in Allegiant indicates a growth opportunity in JetBlue Airways stock. With the renewed leisure focus, the company is developing a resort in Florida along with a golf course and setting-up family entertainment centers in cities on the route network. In the past few years, continued capacity growth along with rising ticket prices have been key contributors assisting topline expansion.
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Last year, Allegiant stock surged beyond pre-Covid levels assisted by strong broader travel demand. The company subsequently, invested $507 million in property, plant & equipment, returned $64 million to investors in dividends and buybacks, and raised $136 million in long-term debt (net of principal payments & issuance costs). The company generated $1.5 billion of operating cash on revenues of $8 billion and subsequently, invested $932 million in property, plant & equipment, and returned $542 million to investors in share repurchases.
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Revenue Growth Allegiant Travel Company’s growth was higher than JetBlue before the pandemic, with ALGT’s revenues expanding by 10% p.a. The company generated $1.5 billion of operating cash on revenues of $8 billion and subsequently, invested $932 million in property, plant & equipment, and returned $542 million to investors in share repurchases. Total [2] JBLU Return 0% 3% -35% ALGT Return 0% -4% 7% S&P 500 Return 0% -5% 102% Trefis MS Portfolio Return 0% -9% 257% [1] Month-to-date and year-to-date as of 2/1/2022 [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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Revenue Growth Allegiant Travel Company’s growth was higher than JetBlue before the pandemic, with ALGT’s revenues expanding by 10% p.a. The company’s passenger revenues observed a growth of 23% from $1.37 billion in 2017 to $1.68 billion in 2019, majorly assisted by a sharp 40% surge in ancillary service revenues. The company generated $442 million of operating cash on operating revenue of $1.8 billion.
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