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4400.0
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2021-06-19 00:00:00 UTC
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Mining companies in Chile seek input into the country's new constitution
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AAL
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https://www.nasdaq.com/articles/mining-companies-in-chile-seek-input-into-the-countrys-new-constitution-2021-06-19
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nan
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nan
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BUENOS AIRES, June 19 (Reuters) - Mining companies operating in Chile will seek to enter the constitutional debate set to start soon in the world's top copper-producing nation as the firms try to preserve growth of the sector, an industry leader told local media on Saturday.
A broad political agreement generated after the violent social protests that shook Chile in 2019 resulted in an assembly of 155 members that will have to draft a new constitution for the country.
Joaquin Villarino, head of the Mining Council - which unites large firms such as Anglo American AAL.L, Antofagasta ANTO.L, Barrick ABX.TO and BHP BHP.AX - told local newspaper El Mercurio that it had written a document outlining how the companies would like to operate under the new constitution.
"There are some things that should be kept because they have been positive and have contributed to this country achieving levels of development that no other country in Latin America has," Villarino was quoted as saying in the newspaper story.
"It seems to us it would be a mistake to blur the things that have been positive," he said.
The document drawn up by the council addresses environmental regulations, which have been much debated in Chile, and the form in which mining companies interact with indigenous populations and the local towns where mines are located.
The initiative by the council comes at a time of historically high copper prices and as the copper and lithium mining industries are the focus of a nationwide debate on sales royalties.
(Reporting by Fabian Cambero, writing by Hugh Bronstein; Editing by Steve Orlofsky)
((hugh.bronstein@thomsonreuters.com; 5411 4318 0655; Reuters Messaging: hugh.bronstein.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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Joaquin Villarino, head of the Mining Council - which unites large firms such as Anglo American AAL.L, Antofagasta ANTO.L, Barrick ABX.TO and BHP BHP.AX - told local newspaper El Mercurio that it had written a document outlining how the companies would like to operate under the new constitution. BUENOS AIRES, June 19 (Reuters) - Mining companies operating in Chile will seek to enter the constitutional debate set to start soon in the world's top copper-producing nation as the firms try to preserve growth of the sector, an industry leader told local media on Saturday. A broad political agreement generated after the violent social protests that shook Chile in 2019 resulted in an assembly of 155 members that will have to draft a new constitution for the country.
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Joaquin Villarino, head of the Mining Council - which unites large firms such as Anglo American AAL.L, Antofagasta ANTO.L, Barrick ABX.TO and BHP BHP.AX - told local newspaper El Mercurio that it had written a document outlining how the companies would like to operate under the new constitution. BUENOS AIRES, June 19 (Reuters) - Mining companies operating in Chile will seek to enter the constitutional debate set to start soon in the world's top copper-producing nation as the firms try to preserve growth of the sector, an industry leader told local media on Saturday. The document drawn up by the council addresses environmental regulations, which have been much debated in Chile, and the form in which mining companies interact with indigenous populations and the local towns where mines are located.
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Joaquin Villarino, head of the Mining Council - which unites large firms such as Anglo American AAL.L, Antofagasta ANTO.L, Barrick ABX.TO and BHP BHP.AX - told local newspaper El Mercurio that it had written a document outlining how the companies would like to operate under the new constitution. BUENOS AIRES, June 19 (Reuters) - Mining companies operating in Chile will seek to enter the constitutional debate set to start soon in the world's top copper-producing nation as the firms try to preserve growth of the sector, an industry leader told local media on Saturday. The document drawn up by the council addresses environmental regulations, which have been much debated in Chile, and the form in which mining companies interact with indigenous populations and the local towns where mines are located.
|
Joaquin Villarino, head of the Mining Council - which unites large firms such as Anglo American AAL.L, Antofagasta ANTO.L, Barrick ABX.TO and BHP BHP.AX - told local newspaper El Mercurio that it had written a document outlining how the companies would like to operate under the new constitution. A broad political agreement generated after the violent social protests that shook Chile in 2019 resulted in an assembly of 155 members that will have to draft a new constitution for the country. "There are some things that should be kept because they have been positive and have contributed to this country achieving levels of development that no other country in Latin America has," Villarino was quoted as saying in the newspaper story.
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4401.0
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2021-06-19 00:00:00 UTC
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U.S. Air Force Buys Into SpaceX Point-to-Point Starship Delivery Service
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AAL
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https://www.nasdaq.com/articles/u.s.-air-force-buys-into-spacex-point-to-point-starship-delivery-service-2021-06-19
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nan
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nan
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Four years ago, SpaceX CEO Elon Musk made a startling announcement: The Starship megarocket, that he initially designed to carry humans from Earth to Mars, might have a future right here on Earth as well.
Launching from a sea platform floating off Long Island, New York (for example) at 7 a.m. and flying at an estimated 18,000 miles per hour, a Starship rocket could arrive off the coast of Shanghai, China by 7:39 a.m. (NYC time) -- just 4% of the time it currently takes international airlines to make the trip.
A lot of air travelers might find that prospect appealing. And there's one thing we know for sure: The U.S. Pentagon most definitely finds it appealing.
Pentagon, your package has arrived -- on a rocket ship. Image source: Elon Musk.
A threat to airlines?
SpaceX's plans pose a threat to the business models of certain airline companies, which face the possibility, within just a few years, of having to compete not only with a service offering faster transportation than their own airplanes can provide -- but with a transportation company that builds its own "airplanes" (i.e., rockets).
Still, as I explained at the time Musk laid out his point-to-point plans, this isn't an existential crisis for airlines. Starships need to launch from locations somewhat removed from population centers (because of the sonic booms), and ideally from launch pads on the ocean, meaning that a point-to-point Starship transportation service can really only service international routes between various coastal cities. It wouldn't be much use for regional trips within a single country.
The high g-forces of a rocket launch could also limit Starship's utility in passenger service, as not all passengers (the very young, the very old, the infirm) might be able to stand the strain of high-speed rocket launches and landings.
An opportunity for the military
But from the perspective of the military, that might not be a deal breaker.
As Ars Technica reported last week -- and The Wall Street Journal also reported just this week -- the U.S. Air Force "justification book" explaining its request for $200 billion in defense spending in the fiscal year 2022 budget mentions its plan to invest $47.9 million into a "rocket cargo" project for the transport of cargo around the globe.
Although the Air Force doesn't mention SpaceX, or Starship, by name, it does say it wants to "test the capability to leverage a commercial rocket to deliver AF cargo anywhere on the Earth in less than one hour, with a 100-ton capacity ... with full reusability." And right now, SpaceX's Starship is the only rocket in development anywhere on Earth that promises to rocket 100 tons of cargo from point to point in less than an hour.
So you don't need to be a mind reader to figure out who the Air Force is talking about.
What it means to SpaceX
Now, the Air Force isn't talking about giving $48 million to SpaceX directly. Rather, its plans involve such items as developing "loadmaster designs to quickly load/unload a rocket," "characterization of potential landing surfaces and approaches to rapidly improve those surfaces," and mapping out "novel trajectories" and other ways to reduce "adversary detectability" (i.e., play hide the rocket from the bad guys). But even so, the idea appears to get the Air Force in a position to take advantage of Starship once it's been fully developed, tested, and proven capable of point-to-point travel on Earth.
At that point, the plan might very well be to start paying SpaceX directly for military transport services. As the new Air Force Rocket Cargo initiative's program manager Greg Spanjers told the Journal, the Air Force "wants to be an early adopter" of this technology once it's ready for prime time -- and that could develop into an important new revenue stream for SpaceX over time.
So how much money are we talking about here?
Well, consider: Analysts estimate that in 2020, SpaceX took in about $1.2 billion in total revenue. But on a single day in 2020 -- October 1, when the U.S. Transportation Command awarded new two-year contracts to its transportation partners -- that Pentagon department handed out contracts totaling roughly $3.3 billion.
Currently, this is money that companies including Delta Air Lines (NYSE: DAL), American Airlines (NASDAQ: AAL), UPS (NYSE: UPS), and FedEx (NYSE: FDX) can count on coming in like clockwork, year after year, as they supplement the Pentagon's internal transportation capabilities by providing aircraft to help share the load. One day soon, however, SpaceX may begin taking this business away from the airlines and transport companies.
And with each successful test of Starship, that day comes a little closer.
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When investing geniuses David and Tom Gardner have an investing 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart 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 2/1/20
Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends FedEx. 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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Currently, this is money that companies including Delta Air Lines (NYSE: DAL), American Airlines (NASDAQ: AAL), UPS (NYSE: UPS), and FedEx (NYSE: FDX) can count on coming in like clockwork, year after year, as they supplement the Pentagon's internal transportation capabilities by providing aircraft to help share the load. As Ars Technica reported last week -- and The Wall Street Journal also reported just this week -- the U.S. Air Force "justification book" explaining its request for $200 billion in defense spending in the fiscal year 2022 budget mentions its plan to invest $47.9 million into a "rocket cargo" project for the transport of cargo around the globe. Although the Air Force doesn't mention SpaceX, or Starship, by name, it does say it wants to "test the capability to leverage a commercial rocket to deliver AF cargo anywhere on the Earth in less than one hour, with a 100-ton capacity ... with full reusability."
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Currently, this is money that companies including Delta Air Lines (NYSE: DAL), American Airlines (NASDAQ: AAL), UPS (NYSE: UPS), and FedEx (NYSE: FDX) can count on coming in like clockwork, year after year, as they supplement the Pentagon's internal transportation capabilities by providing aircraft to help share the load. At that point, the plan might very well be to start paying SpaceX directly for military transport services. The Motley Fool recommends Delta Air Lines.
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Currently, this is money that companies including Delta Air Lines (NYSE: DAL), American Airlines (NASDAQ: AAL), UPS (NYSE: UPS), and FedEx (NYSE: FDX) can count on coming in like clockwork, year after year, as they supplement the Pentagon's internal transportation capabilities by providing aircraft to help share the load. Although the Air Force doesn't mention SpaceX, or Starship, by name, it does say it wants to "test the capability to leverage a commercial rocket to deliver AF cargo anywhere on the Earth in less than one hour, with a 100-ton capacity ... with full reusability." As the new Air Force Rocket Cargo initiative's program manager Greg Spanjers told the Journal, the Air Force "wants to be an early adopter" of this technology once it's ready for prime time -- and that could develop into an important new revenue stream for SpaceX over time.
|
Currently, this is money that companies including Delta Air Lines (NYSE: DAL), American Airlines (NASDAQ: AAL), UPS (NYSE: UPS), and FedEx (NYSE: FDX) can count on coming in like clockwork, year after year, as they supplement the Pentagon's internal transportation capabilities by providing aircraft to help share the load. Although the Air Force doesn't mention SpaceX, or Starship, by name, it does say it wants to "test the capability to leverage a commercial rocket to deliver AF cargo anywhere on the Earth in less than one hour, with a 100-ton capacity ... with full reusability." At that point, the plan might very well be to start paying SpaceX directly for military transport services.
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4402.0
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2021-06-17 00:00:00 UTC
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Mixed Air Travel Data Makes It Hard to Recommend American Airlines Group
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AAL
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https://www.nasdaq.com/articles/mixed-air-travel-data-makes-it-hard-to-recommend-american-airlines-group-2021-06-17
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
No doubt about it: like other air travel companies, American Airlines Group (NASDAQ:AAL) is heavily dependent on the rollout of Covid-19 vaccines. Without that, AAL stock holders would be in big trouble, financially speaking.
AAL) airplane waiting on the tarmac. Represents airline stocks." width="300" height="169">
Source: GagliardiPhotography / Shutterstock.com
And indeed, the share price has rebounded since the Covid-19 pandemic devastated the stock market and the travel industry.
Does this mean that AAL stock holders should assume that the share price will continue to climb upwards as the “recovery trade” plays out? Not necessarily.
A mixed picture of favorable and unfavorable data suggests that there might be some bumps along the road to the recovery. Moreover, American Airlines’ recent pricey investment in an emerging technology could incur substantial risk.
A Closer Look at AAL Stock
As I alluded to earlier, AAL stock bottomed out during the peak pandemic panic of 2020. After the stock touched the $9 level, the buyers stepped in and started to move the share price back up.
7 A-Rated Biotech Stocks to Buy Now
A long-term perspective offers an idea of how far American Airlines shares can fly. In 2006-2007, 2014-2015 and 2018, the stock ran up to the $55 resistance level and then tanked.
Therefore, it’s conceivable that AAL stock could reach $55 again at some point. However, this will probably require extraordinary patience.
Furthermore, there’s a major concern that I need to bring up. As of June 11, 2021, American Airlines shares were priced at $23.53.
At the same time, American Airlines’ trailing 12-month earnings per share was -$14.73.
When the per-share earnings are negative, and the absolute value is more than half of the share price, that’s a red flag.
It’s something that the current and prospective investors will want to pay attention to. Hopefully, that negative number will turn positive (or at least, less deeply negative) in the near future.
A Long Way to Go
It might be tempting for AAL stock investors to take an optimistic view of the air travel industry.
However, a big-picture view of the market may temper one’s enthusiasm.
Recently, the International Air Transport Association’s (IATA) released its April 2021 report on air travel demand. The numbers are sobering, and remind us that the “recovery” has a long way to go.
According to the IATA, as measured in revenue passenger kilometers, the total demand for air travel in April 2021 was down a whopping 65.4% compared to April 2019’s reading.
When we look abroad, the picture becomes even bleaker. Reportedly, international passenger demand declined 87.3% in April 2021 versus April 2019.
If it’s any consolation, global air cargo demand, measured in cargo tonne-kilometers, increased 12% in April 2021 compared to the April 2019 reading. Also, it was 7.8% higher than the March 2021 level.
Going Vertical?
But airlines can’t just rely on cargo for revenues. Until passenger levels get closer to pre-pandemic levels, it’s going to require a major leap of faith to invest in American Airlines.
And speaking of leaps of faith, American Airlines is taking a chance on the future of electric air taxis.
By that, I mean that the company plans to purchase around 250 flying taxis from U.K.-based Vertical Aerospace Group.
Before you get too excited about this, bear in mind that this plan implies a potential pre-order commitment of $1 billion.
That’s a high price tag and a massive commitment for a still-emerging technology. Are American Airlines investors willing to assume the risk?
Plus, Vertical Aerospace Group hasn’t conducted the first trial of its VA-X4 aircraft yet – an event that’s planned for later in 2021.
The Bottom Line
Flying taxis are fun to think about. However, many AAL stock holders probably don’t realize they’re indirectly investing in them.
And if you’re holding your shares in the hopes of a quick air travel market recovery, it’s a good time to check the data – and modify your expectations.
On the date of publication, David Moadel 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 Mixed Air Travel Data Makes It Hard to Recommend American Airlines Group 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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Does this mean that AAL stock holders should assume that the share price will continue to climb upwards as the “recovery trade” plays out? InvestorPlace - Stock Market News, Stock Advice & Trading Tips No doubt about it: like other air travel companies, American Airlines Group (NASDAQ:AAL) is heavily dependent on the rollout of Covid-19 vaccines. Without that, AAL stock holders would be in big trouble, financially speaking.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips No doubt about it: like other air travel companies, American Airlines Group (NASDAQ:AAL) is heavily dependent on the rollout of Covid-19 vaccines. Without that, AAL stock holders would be in big trouble, financially speaking. AAL) airplane waiting on the tarmac.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips No doubt about it: like other air travel companies, American Airlines Group (NASDAQ:AAL) is heavily dependent on the rollout of Covid-19 vaccines. A Closer Look at AAL Stock As I alluded to earlier, AAL stock bottomed out during the peak pandemic panic of 2020. A Long Way to Go It might be tempting for AAL stock investors to take an optimistic view of the air travel industry.
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A Long Way to Go It might be tempting for AAL stock investors to take an optimistic view of the air travel industry. InvestorPlace - Stock Market News, Stock Advice & Trading Tips No doubt about it: like other air travel companies, American Airlines Group (NASDAQ:AAL) is heavily dependent on the rollout of Covid-19 vaccines. Without that, AAL stock holders would be in big trouble, financially speaking.
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4403.0
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2021-06-17 00:00:00 UTC
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Websites of major U.S. airlines face outage - Downdetector
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AAL
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https://www.nasdaq.com/articles/websites-of-major-u.s.-airlines-face-outage-downdetector-2021-06-17
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nan
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nan
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June 17 (Reuters) - Websites of major U.S. airline companies American Airlines AAL.O, Southwest Airlines LUV.N, United Airlines UAL.O and Delta Air Lines DAL.N faced an outage early on Thursday, according to outage monitoring website Downdetector.
More than a thousand user reports indicated problems at Southwest Airlines, with over 400 user reports indicating the same for Delta Air Lines, according to Downdetector. That number was around 300 for the other two airline companies.
Southwest canceled nearly 300 flights on Wednesday and delayed more than 500 a day after it was forced to temporarily halt operations over a computer glitch.
(Reporting by Radhika Anilkumar and Kanishka Singh in Bengaluru; Editing by Jacqueline Wong)
((Radhika.Anilkumar@thomsonreuters.com; +91 8067490824;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 17 (Reuters) - Websites of major U.S. airline companies American Airlines AAL.O, Southwest Airlines LUV.N, United Airlines UAL.O and Delta Air Lines DAL.N faced an outage early on Thursday, according to outage monitoring website Downdetector. More than a thousand user reports indicated problems at Southwest Airlines, with over 400 user reports indicating the same for Delta Air Lines, according to Downdetector. Southwest canceled nearly 300 flights on Wednesday and delayed more than 500 a day after it was forced to temporarily halt operations over a computer glitch.
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June 17 (Reuters) - Websites of major U.S. airline companies American Airlines AAL.O, Southwest Airlines LUV.N, United Airlines UAL.O and Delta Air Lines DAL.N faced an outage early on Thursday, according to outage monitoring website Downdetector. More than a thousand user reports indicated problems at Southwest Airlines, with over 400 user reports indicating the same for Delta Air Lines, according to Downdetector. That number was around 300 for the other two airline companies.
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June 17 (Reuters) - Websites of major U.S. airline companies American Airlines AAL.O, Southwest Airlines LUV.N, United Airlines UAL.O and Delta Air Lines DAL.N faced an outage early on Thursday, according to outage monitoring website Downdetector. More than a thousand user reports indicated problems at Southwest Airlines, with over 400 user reports indicating the same for Delta Air Lines, according to Downdetector. (Reporting by Radhika Anilkumar and Kanishka Singh in Bengaluru; Editing by Jacqueline Wong) ((Radhika.Anilkumar@thomsonreuters.com; +91 8067490824;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 17 (Reuters) - Websites of major U.S. airline companies American Airlines AAL.O, Southwest Airlines LUV.N, United Airlines UAL.O and Delta Air Lines DAL.N faced an outage early on Thursday, according to outage monitoring website Downdetector. Southwest canceled nearly 300 flights on Wednesday and delayed more than 500 a day after it was forced to temporarily halt operations over a computer glitch. (Reporting by Radhika Anilkumar and Kanishka Singh in Bengaluru; Editing by Jacqueline Wong) ((Radhika.Anilkumar@thomsonreuters.com; +91 8067490824;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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4404.0
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2021-06-16 00:00:00 UTC
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Botswana unearths world's third largest diamond
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AAL
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https://www.nasdaq.com/articles/botswana-unearths-worlds-third-largest-diamond-2021-06-16
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nan
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nan
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GABORONE, June 16 (Reuters) - A 1,098 carat diamond believed to be the third largest gem-quality stone ever to be mined, has been discovered in Botswana, according to a joint venture between Anglo American's AAL.L De Beers and the government.
The stone was presented to President Mokgweetsi Masisi on Wednesday by Debswana Diamond Company's acting managing director Lynette Armstrong. It is the third largest in the world, behind the 3,106 carat Cullinan stone recovered in South Africa in 1905 and the 1,109 carat Lesedi La Rona unearthed by Lucara Diamonds in Botswana in 2015.
"This is the largest diamond to be recovered by Debswana in its history of over 50 years in operation," Armstrong said.
"From our preliminary analysis it could be the world's third largest gem quality stone. We are yet to make a decision on whether to sell it through the De Beers channel or through the state owned Okavango Diamond Company," Armstrong said.
Minerals minister Lefoko Moagi said the discovery of the yet-to-be named stone, which measures 73mm long, 52mm wide and 27mm thick, could not have come at a better time after the COVID-19 pandemic hit diamond sales in 2020.
The government receives as much as 80% of the income from Debswana's sales through dividends, royalties and taxes.
Production at Debswana fell 29% in 2020 to 16.6 million carats while sales fell 30% to $2.1 billion as the pandemic impacted both production and demand.
In 2021, Debswana plans to increase output by as much as 38% to pre-pandemic levels of 23 million carats as the global diamond market recovers with the easing of travel restrictions and reopening of jewellers.
(Reporting by Brian Benza;Editing by Elaine Hardcastle)
((nqobile.dludla@thomsonreuters.com; +27103461066;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
GABORONE, June 16 (Reuters) - A 1,098 carat diamond believed to be the third largest gem-quality stone ever to be mined, has been discovered in Botswana, according to a joint venture between Anglo American's AAL.L De Beers and the government. Minerals minister Lefoko Moagi said the discovery of the yet-to-be named stone, which measures 73mm long, 52mm wide and 27mm thick, could not have come at a better time after the COVID-19 pandemic hit diamond sales in 2020. In 2021, Debswana plans to increase output by as much as 38% to pre-pandemic levels of 23 million carats as the global diamond market recovers with the easing of travel restrictions and reopening of jewellers.
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GABORONE, June 16 (Reuters) - A 1,098 carat diamond believed to be the third largest gem-quality stone ever to be mined, has been discovered in Botswana, according to a joint venture between Anglo American's AAL.L De Beers and the government. The stone was presented to President Mokgweetsi Masisi on Wednesday by Debswana Diamond Company's acting managing director Lynette Armstrong. We are yet to make a decision on whether to sell it through the De Beers channel or through the state owned Okavango Diamond Company," Armstrong said.
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GABORONE, June 16 (Reuters) - A 1,098 carat diamond believed to be the third largest gem-quality stone ever to be mined, has been discovered in Botswana, according to a joint venture between Anglo American's AAL.L De Beers and the government. It is the third largest in the world, behind the 3,106 carat Cullinan stone recovered in South Africa in 1905 and the 1,109 carat Lesedi La Rona unearthed by Lucara Diamonds in Botswana in 2015. In 2021, Debswana plans to increase output by as much as 38% to pre-pandemic levels of 23 million carats as the global diamond market recovers with the easing of travel restrictions and reopening of jewellers.
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GABORONE, June 16 (Reuters) - A 1,098 carat diamond believed to be the third largest gem-quality stone ever to be mined, has been discovered in Botswana, according to a joint venture between Anglo American's AAL.L De Beers and the government. It is the third largest in the world, behind the 3,106 carat Cullinan stone recovered in South Africa in 1905 and the 1,109 carat Lesedi La Rona unearthed by Lucara Diamonds in Botswana in 2015. We are yet to make a decision on whether to sell it through the De Beers channel or through the state owned Okavango Diamond Company," Armstrong said.
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4405.0
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2021-06-16 00:00:00 UTC
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Forget AMC's Stock. Is The Business Worth Owning?
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AAL
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https://www.nasdaq.com/articles/forget-amcs-stock.-is-the-business-worth-owning-2021-06-16
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nan
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If you told an investor in 2020 that -- in less than a year -- AMC Entertainment Holdings (NYSE: AMC) would be worth as much as two American Airlines Groups combined, you would have been laughed out of the room. If you told those same folks that the moves would be driven by small retail investors looking to stick it to hedge funds, you would've been asked if you were feeling OK.
And yet, that's the world we find ourselves in today. While many have shrugged off the decoupling of a stock's price and its underlying business, we shouldn't be so quick to ignore an entertainment industry that's bound to rebound when the pandemic subsides.
In this June 7 video on their YouTube channel, Motley Fool contributors Brian Feroldi and Brian Stoffel discuss the merits of investing in AMC's underlying business of movie theaters.
10 stocks we like better than AMC Entertainment Holdings
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AMC Entertainment 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 June 7, 2021
Brian Feroldi has no position in any of the stocks mentioned. Brian Stoffel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
If you told those same folks that the moves would be driven by small retail investors looking to stick it to hedge funds, you would've been asked if you were feeling OK. And yet, that's the world we find ourselves in today. While many have shrugged off the decoupling of a stock's price and its underlying business, we shouldn't be so quick to ignore an entertainment industry that's bound to rebound when the pandemic subsides. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AMC Entertainment Holdings wasn't one of them!
|
In this June 7 video on their YouTube channel, Motley Fool contributors Brian Feroldi and Brian Stoffel discuss the merits of investing in AMC's underlying business of movie theaters. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Brian Feroldi has no position in any of the stocks mentioned.
|
10 stocks we like better than AMC Entertainment Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AMC Entertainment Holdings wasn't one of them! See the 10 stocks *Stock Advisor returns as of June 7, 2021 Brian Feroldi has no position in any of the stocks mentioned.
|
* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AMC Entertainment Holdings wasn't one of them! See the 10 stocks *Stock Advisor returns as of June 7, 2021 Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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4406.0
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2021-06-15 00:00:00 UTC
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Anglo American exposed coal miners to excessive risk, inquiry finds
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AAL
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https://www.nasdaq.com/articles/anglo-american-exposed-coal-miners-to-excessive-risk-inquiry-finds-2021-06-15
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nan
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MELBOURNE, June 15 (Reuters) - An Australian inquiry into a blast at an Anglo American coal mine in Queensland state that seriously injured five workers found that the miner repeatedly produced more methane gas than it could remove and had exposed workers to excessive risk.
Mining activities at Anglo's AAL.L Grosvenor mine in Queensland's Bowen Basin were halted after the May 2020 explosion that triggered a government inquiry. Activities resumed earlier this month ahead of a staged restart.
The Queensland Coal Mining Board of Inquiry report found that methane gases exceeded regulated levels 27 times in the lead up to the May 6 explosion from July 2019, and came against a backdrop of gas management issues.
Anglo American said in a statement it was acting on the recommendations in the report, which was released on Monday, and had made A$60 million ($46.24 million) of investment in safety initiatives over the last year.
It said it was updating its operations management and fast tracking work to automate operations and use remote working where possible to remove people from high risk areas.
The report said that overly high methane levels resulted as the mine’s rate of production was higher than the capacity of the mine’s gas drainage system.
It found that Grosvenor failed to take "timely and meaningful" action to control the hazard posed by methane and that coal mine workers in that section were repeatedly subject to unacceptable risk.
It also found that the state regulator, Resources Safety & Health Queensland should have been more proactive.
The regulator said it cooperated with the investigation and was committed to improving its risk management regulation in line with the inquiry's findings in the coal and other resources industries.
Union president of CFMEU's state mining and energy division Stephen Smyth said the most shocking part of the report was the detailed account of Anglo’s failure to manage dangerous gases at the mine in the months leading up to the blast.
"Management knew there were problems following a series of high potential incidents during March and April, but did not slow coal production to match its gas drainage capacity," he said in a statement.
"Coal mine workers put their lives in the hands of mine managers every time they go to work and they should be able to have confidence every possible measure is in place to protect them. They have been seriously let down in this case.”
Grosvenor produced 4.7 million tonnes of metallurgical or steel-making coal in 2019.
($1 = 1.2975 Australian dollars)
(Reporting by Melanie Burton; editing by Barbara Lewis)
((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.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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Mining activities at Anglo's AAL.L Grosvenor mine in Queensland's Bowen Basin were halted after the May 2020 explosion that triggered a government inquiry. The Queensland Coal Mining Board of Inquiry report found that methane gases exceeded regulated levels 27 times in the lead up to the May 6 explosion from July 2019, and came against a backdrop of gas management issues. It found that Grosvenor failed to take "timely and meaningful" action to control the hazard posed by methane and that coal mine workers in that section were repeatedly subject to unacceptable risk.
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Mining activities at Anglo's AAL.L Grosvenor mine in Queensland's Bowen Basin were halted after the May 2020 explosion that triggered a government inquiry. MELBOURNE, June 15 (Reuters) - An Australian inquiry into a blast at an Anglo American coal mine in Queensland state that seriously injured five workers found that the miner repeatedly produced more methane gas than it could remove and had exposed workers to excessive risk. The Queensland Coal Mining Board of Inquiry report found that methane gases exceeded regulated levels 27 times in the lead up to the May 6 explosion from July 2019, and came against a backdrop of gas management issues.
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Mining activities at Anglo's AAL.L Grosvenor mine in Queensland's Bowen Basin were halted after the May 2020 explosion that triggered a government inquiry. MELBOURNE, June 15 (Reuters) - An Australian inquiry into a blast at an Anglo American coal mine in Queensland state that seriously injured five workers found that the miner repeatedly produced more methane gas than it could remove and had exposed workers to excessive risk. The Queensland Coal Mining Board of Inquiry report found that methane gases exceeded regulated levels 27 times in the lead up to the May 6 explosion from July 2019, and came against a backdrop of gas management issues.
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Mining activities at Anglo's AAL.L Grosvenor mine in Queensland's Bowen Basin were halted after the May 2020 explosion that triggered a government inquiry. The Queensland Coal Mining Board of Inquiry report found that methane gases exceeded regulated levels 27 times in the lead up to the May 6 explosion from July 2019, and came against a backdrop of gas management issues. The report said that overly high methane levels resulted as the mine’s rate of production was higher than the capacity of the mine’s gas drainage system.
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4407.0
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2021-06-14 00:00:00 UTC
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Company Of The Day: United Airline Holdings
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AAL
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https://www.nasdaq.com/articles/company-of-the-day%3A-united-airline-holdings-2021-06-14
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nan
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nan
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What?
United Airlines (NYSE:UAL) is in talks to buy around 200 single-aisle jets from Boeing and Airbus, per a report from Reuters.
Why?
United is looking to upgrade its fleet with more fuel-efficient planes, with demand for air travel recovering following Covid-19.
So What?
Airline bookings have rebounded driven by the availability of Covid-19 vaccines and the easing of travel restrictions. United stock has also outperformed, rising by 35% year to date, and the fleet upgrade plan should give investors more confidence about the longer-term outlook for the industry.
See Our Complete Analysis For United Airlines
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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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United Airlines (NYSE:UAL) is in talks to buy around 200 single-aisle jets from Boeing and Airbus, per a report from Reuters. United is looking to upgrade its fleet with more fuel-efficient planes, with demand for air travel recovering following Covid-19. United stock has also outperformed, rising by 35% year to date, and the fleet upgrade plan should give investors more confidence about the longer-term outlook for the industry.
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United Airlines (NYSE:UAL) is in talks to buy around 200 single-aisle jets from Boeing and Airbus, per a report from Reuters. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently. See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams The views and 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 stock has also outperformed, rising by 35% year to date, and the fleet upgrade plan should give investors more confidence about the longer-term outlook for the industry. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently. See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams The views and 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 (NYSE:UAL) is in talks to buy around 200 single-aisle jets from Boeing and Airbus, per a report from Reuters. Airline bookings have rebounded driven by the availability of Covid-19 vaccines and the easing of travel restrictions. United stock has also outperformed, rising by 35% year to date, and the fleet upgrade plan should give investors more confidence about the longer-term outlook for the industry.
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4408.0
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2021-06-14 00:00:00 UTC
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US STOCKS-S&P 500 to open near record high as focus turns to Fed's inflation stance
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AAL
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https://www.nasdaq.com/articles/us-stocks-sp-500-to-open-near-record-high-as-focus-turns-to-feds-inflation-stance-2021-06
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nan
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nan
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By Medha Singh and Devik Jain
June 14 (Reuters) - The S&P 500 was set to open near a record high on Monday as focus shifted to the Federal Reserve's meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy.
Recent data has indicated that the U.S. economy is regaining momentum but not overheating, taming worries about inflation and sending the S&P 500 .SPX to an all-time high.
While the Fed has reassured that any spike in inflation would be transitory, policymakers could begin discussing the tapering of bond buying at the Tuesday-Wednesday meeting. Most analysts, however, don't expect a decision before the central bank's annual Jackson Hole, Wyoming, conference in August.
Any shift in the Fed's dovish rhetoric could upend equity markets. The benchmark has climbed 13% this year while the Dow .DJI and the Nasdaq .IXIC have risen 12.6% and 9.2%, respectively.
"The market is looking for the Fed to not be dramatically alarmed about fears of inflation, or move too soon with tapering," said Thomas Hayes, chairman and managing member of Great Hill Capital LLC in New York.
"We're kind of in this 'Goldilocks' situation where (economic) numbers keep coming in pretty good, liquidity is ample, the Fed is accommodative, and unless those things change, we shouldn't expect a big change in the stock market."
At 08:24 a.m. EDT, Dow E-minis 1YMcv1 were down 8 points, or 0.02%, S&P 500 E-minis EScv1 were up 3 points, or 0.07% and Nasdaq 100 E-minis NQcv1 were up 42.75 points, or 0.31%.
Lordstown Motors Corp RIDE.O tumbled 14.6% after it said Chief Executive Steve Burns and Chief Financial Officer Julio Rodriguez have resigned, days after the electric-truck maker warned that it may not have enough cash to stay in business over the next year.
Oil firms Chevron CVX.N, Marathon Oil Corp MRO.N, Schlumberger SLB.N, Occidental Petroleum OXY.N and Marathon Petroleum Corp MPC.N rose between 0.7% and 1% as crude prices hit their highest levels in more than two years. O/R
United Airlines Holdings UAL.O and American Airlines Group AAL.O gained 0.4% and 0.7% respectively after Citigroup raised its price target on the stocks.
Novavax NVAX.Orose 8.8% after its late-stage trial data showed its COVID-19 vaccine candidate is more than 90% effective against COVID-19 across a variety of variants of the virus.
(Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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O/R United Airlines Holdings UAL.O and American Airlines Group AAL.O gained 0.4% and 0.7% respectively after Citigroup raised its price target on the stocks. By Medha Singh and Devik Jain June 14 (Reuters) - The S&P 500 was set to open near a record high on Monday as focus shifted to the Federal Reserve's meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy. While the Fed has reassured that any spike in inflation would be transitory, policymakers could begin discussing the tapering of bond buying at the Tuesday-Wednesday meeting.
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O/R United Airlines Holdings UAL.O and American Airlines Group AAL.O gained 0.4% and 0.7% respectively after Citigroup raised its price target on the stocks. By Medha Singh and Devik Jain June 14 (Reuters) - The S&P 500 was set to open near a record high on Monday as focus shifted to the Federal Reserve's meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy. At 08:24 a.m. EDT, Dow E-minis 1YMcv1 were down 8 points, or 0.02%, S&P 500 E-minis EScv1 were up 3 points, or 0.07% and Nasdaq 100 E-minis NQcv1 were up 42.75 points, or 0.31%.
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O/R United Airlines Holdings UAL.O and American Airlines Group AAL.O gained 0.4% and 0.7% respectively after Citigroup raised its price target on the stocks. By Medha Singh and Devik Jain June 14 (Reuters) - The S&P 500 was set to open near a record high on Monday as focus shifted to the Federal Reserve's meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy. "We're kind of in this 'Goldilocks' situation where (economic) numbers keep coming in pretty good, liquidity is ample, the Fed is accommodative, and unless those things change, we shouldn't expect a big change in the stock market."
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O/R United Airlines Holdings UAL.O and American Airlines Group AAL.O gained 0.4% and 0.7% respectively after Citigroup raised its price target on the stocks. By Medha Singh and Devik Jain June 14 (Reuters) - The S&P 500 was set to open near a record high on Monday as focus shifted to the Federal Reserve's meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy. Recent data has indicated that the U.S. economy is regaining momentum but not overheating, taming worries about inflation and sending the S&P 500 .SPX to an all-time high.
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4409.0
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2021-06-14 00:00:00 UTC
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US STOCKS-Futures rise as focus turns to Fed's inflation stance
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AAL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-as-focus-turns-to-feds-inflation-stance-2021-06-14
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nan
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nan
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By Medha Singh
June 14 (Reuters) - S&P 500 futures hit a record high on Monday as focus shifted to the Federal Reserve's meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy.
Recent data has indicated that the U.S. economy is regaining momentum but not overheating, taming worries about inflation and sending the S&P 500 .SPX to an all-time high.
While the Fed has reassured that any spike in inflation would be transitory, policymakers could begin discussing the tapering of bond buying at the Tuesday-Wednesday meeting. Most analysts, however, don't expect a decision before the central bank's annual Jackson Hole, Wyoming, conference in August.
Any shift in the Fed's dovish rhetoric could upend equity markets. The benchmark has climbed 13% this year while the Dow .DJI and the Nasdaq .IXIC have risen 12.6% and 9.2%, respectively.
At 6:24 a.m. ET, Dow e-minis 1YMcv1 were up 13 points, or 0.04%, S&P 500 e-minis EScv1 were up 3 points, or 0.07%, and Nasdaq 100 e-minis NQcv1 were up 34 points, or 0.24%.
Oil firms Chevron CVX.N, Marathon Oil Corp MRO.N, Schlumberger SLB.N, Occidental Petroleum OXY.N and Marathon Petroleum Corp MPC.N rose between 0.2% and 1.3% as crude prices hit their highest levels in more than two years. O/R
United Airlines Holdings UAL.O and American Airlines Group AAL.O rose 0.7% each after Citigroup raised its price target on the stocks.
(Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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O/R United Airlines Holdings UAL.O and American Airlines Group AAL.O rose 0.7% each after Citigroup raised its price target on the stocks. By Medha Singh June 14 (Reuters) - S&P 500 futures hit a record high on Monday as focus shifted to the Federal Reserve's meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy. While the Fed has reassured that any spike in inflation would be transitory, policymakers could begin discussing the tapering of bond buying at the Tuesday-Wednesday meeting.
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O/R United Airlines Holdings UAL.O and American Airlines Group AAL.O rose 0.7% each after Citigroup raised its price target on the stocks. By Medha Singh June 14 (Reuters) - S&P 500 futures hit a record high on Monday as focus shifted to the Federal Reserve's meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy. ET, Dow e-minis 1YMcv1 were up 13 points, or 0.04%, S&P 500 e-minis EScv1 were up 3 points, or 0.07%, and Nasdaq 100 e-minis NQcv1 were up 34 points, or 0.24%.
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O/R United Airlines Holdings UAL.O and American Airlines Group AAL.O rose 0.7% each after Citigroup raised its price target on the stocks. By Medha Singh June 14 (Reuters) - S&P 500 futures hit a record high on Monday as focus shifted to the Federal Reserve's meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy. ET, Dow e-minis 1YMcv1 were up 13 points, or 0.04%, S&P 500 e-minis EScv1 were up 3 points, or 0.07%, and Nasdaq 100 e-minis NQcv1 were up 34 points, or 0.24%.
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O/R United Airlines Holdings UAL.O and American Airlines Group AAL.O rose 0.7% each after Citigroup raised its price target on the stocks. By Medha Singh June 14 (Reuters) - S&P 500 futures hit a record high on Monday as focus shifted to the Federal Reserve's meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy. Recent data has indicated that the U.S. economy is regaining momentum but not overheating, taming worries about inflation and sending the S&P 500 .SPX to an all-time high.
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4410.0
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2021-06-11 00:00:00 UTC
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After Hours Most Active for Jun 11, 2021 : AAL, KDP, GOL, JBLU, IOVA, AMC, HA, SNCY, SAVE, DAL, LUV, GRUB
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AAL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jun-11-2021-%3A-aal-kdp-gol-jblu-iova-amc-ha-sncy-save-dal-luv
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nan
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The NASDAQ 100 After Hours Indicator is down -1.7 to 13,996.6. The total After hours volume is currently 74,675,455 shares traded.
The following are the most active stocks for the after hours session:
American Airlines Group, Inc. (AAL) is -0.01 at $23.52, with 5,362,196 shares traded. AAL's current last sale is 127.14% of the target price of $18.5.
Keurig Dr Pepper Inc. (KDP) is unchanged at $35.23, with 3,958,740 shares traded. As reported in the last short interest update the days to cover for KDP is 9.47969; this calculation is based on the average trading volume of the stock.
Gol Linhas Aereas Inteligentes S.A. (GOL) is +0.05 at $10.09, with 3,775,564 shares traded. GOL's current last sale is 110.88% of the target price of $9.1.
JetBlue Airways Corporation (JBLU) is +0.06 at $18.71, with 3,070,714 shares traded. JBLU's current last sale is 83.16% of the target price of $22.5.
Iovance Biotherapeutics, Inc. (IOVA) is +0.1 at $23.55, with 3,038,083 shares traded. As reported by Zacks, the current mean recommendation for IOVA is in the "buy range".
AMC Entertainment Holdings, Inc. (AMC) is -0.1 at $49.30, with 2,707,492 shares traded. AMC's current last sale is 1,232.5% of the target price of $4.
Hawaiian Holdings, Inc. (HA) is -0.07 at $28.76, with 2,646,476 shares traded. HA's current last sale is 106.52% of the target price of $27.
Sun Country Airlines Holdings, Inc. (SNCY) is unchanged at $40.22, with 2,113,605 shares traded. SNCY's current last sale is 87.43% of the target price of $46.
Spirit Airlines, Inc. (SAVE) is unchanged at $34.35, with 1,801,530 shares traded. SAVE's current last sale is 85.88% of the target price of $40.
Delta Air Lines, Inc. (DAL) is -0.05 at $46.45, with 1,695,357 shares traded. As reported by Zacks, the current mean recommendation for DAL is in the "buy range".
Southwest Airlines Company (LUV) is +0.04 at $57.61, with 1,486,887 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021. The consensus EPS forecast is $-0.44. As reported by Zacks, the current mean recommendation for LUV is in the "buy range".
GrubHub Inc. (GRUB) is unchanged at $61.05, with 1,448,460 shares traded. GRUB's current last sale is 81.4% of the target price of $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 -0.01 at $23.52, with 5,362,196 shares traded. AAL's current last sale is 127.14% of the target price of $18.5. As reported in the last short interest update the days to cover for KDP is 9.47969; this calculation is based on the average trading volume of the stock.
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American Airlines Group, Inc. (AAL) is -0.01 at $23.52, with 5,362,196 shares traded. AAL's current last sale is 127.14% of the target price of $18.5. The total After hours volume is currently 74,675,455 shares traded.
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American Airlines Group, Inc. (AAL) is -0.01 at $23.52, with 5,362,196 shares traded. AAL's current last sale is 127.14% of the target price of $18.5. The total After hours volume is currently 74,675,455 shares traded.
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American Airlines Group, Inc. (AAL) is -0.01 at $23.52, with 5,362,196 shares traded. AAL's current last sale is 127.14% of the target price of $18.5. GOL's current last sale is 110.88% of the target price of $9.1.
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4411.0
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2021-06-11 00:00:00 UTC
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ANALYSIS-Mines and votes: Socialist Castillo sweeps Peru's key mining regions
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AAL
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https://www.nasdaq.com/articles/analysis-mines-and-votes%3A-socialist-castillo-sweeps-perus-key-mining-regions-2021-06-11
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nan
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nan
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By Marco Aquino
LIMA, June 11 (Reuters) - Peru's key mining regions overwhelming supported socialist Pedro Castillo, who looks on track to win the Andean country's tight presidential election and has pledged to sharply hike taxes on firms operating in the world's no. 2 copper producer.
The high support in districts where key mines are located underscores how tensions have burst through after years of conflict between mining firms and the local communities who often say they are left behind and do not share in the wealth.
In mining provinces such as Cotabambas, Espinar and Chumbivilcas, over nine out of 10 people voted for Castillo, election data show, propelling him to a narrow but sustained lead ahead of conservative rival Keiko Fujimori.
Those regions are home to major mines such as the huge Las Bambas copper mine, operated by China's MMG Ltd 1208.HK, Glencore's GLEN.L Antapaccay and Constancia of Canada's Hudbay Minerals HBM.TO. In Chumbivilcas Castillo won 96.5% of votes.
"The people have awakened," Castillo told supporters on Thursday night. He has previously criticized mining firms for "plundering" the country's wealth and has maintained taxation on mineral profits will have to rise sharply to raise funds.
Overall, the election data showed that Castillo received more than 65% support in at least 10 provinces where key copper, gold, silver, and zinc mines are located, giving him a strong mandate in those areas to push reforms.
The election has not yet officially been called, but Castillo is expected to hold on to his narrow 50.2%-49.8% lead after gaining strong support from poor rural areas with pledges to redraft Peru's constitution and redistribute mineral wealth.
Fujimori, a divisive but market-friendly candidate, had looked to lure support from mining regions with a pledge to give funds raised from mining directly to local communities, but the move appears to have fallen short with voters.
Castillo meanwhile promised a far larger shake-up, with plans to retain up to 70% of mining profits, which he wants to invest in healthcare and education reforms, especially in mineral-rich areas that have high poverty rates.
Mining firms have largely waited on the sidelines to see how things shake out, hopeful that a split vote and fragmented Congress, where no party will have a majority, will help temper any sharp reforms.
"We need to recognize what happened here and that what has led to the polarization is the frustration of years due to the political instability and the inefficiency of the state," said Roque Benavides, president of Buenaventura BVN.N mining firm.
He denied that the issue was with the mining industry, though said that firms could be compelled to make voluntary contribution payments in discussion with a new administration.
"I feel that the political circumstances could lead us to that a little. But nothing will be achieved if there is not efficient spending and investment," he added
The mining sector represents some 60% of Peru's total exports and will be key as the country looks to bounce back from the world's deadliest per capita COVID-19 outbreak, which has triggered an economic collapse and sharp rise in poverty.
The strong support for Castillo was not only in areas where large mines are already developed, but also where new mining sites are being built, an analysis of the data showed.
He received some 86.3% of he vote in the southern district of Torata, where Anglo American AAL.L and Japan's Mitsubishi 8058.T are developing the $5.3 billion Quellaveco copper mine, set to begin production in 2022.
In the area of Haquira, home to a $1.8 billion planned project by Canadian First Quantum FM.TO, 96% of the residents chose Castillo over Fujimori.
Peru: Mines and voteshttps://tmsnrt.rs/3pzPHUR
Peru: Mines and votes https://tmsnrt.rs/34Zw8fc
Castillo v Fujimori https://tmsnrt.rs/34Uat84
Castillo v Fujimorihttps://tmsnrt.rs/2T5GAPF
(Reporting by Marco Aquino; Editing by Adam Jourdan and Marguerita Choy)
((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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He received some 86.3% of he vote in the southern district of Torata, where Anglo American AAL.L and Japan's Mitsubishi 8058.T are developing the $5.3 billion Quellaveco copper mine, set to begin production in 2022. By Marco Aquino LIMA, June 11 (Reuters) - Peru's key mining regions overwhelming supported socialist Pedro Castillo, who looks on track to win the Andean country's tight presidential election and has pledged to sharply hike taxes on firms operating in the world's no. The election has not yet officially been called, but Castillo is expected to hold on to his narrow 50.2%-49.8% lead after gaining strong support from poor rural areas with pledges to redraft Peru's constitution and redistribute mineral wealth.
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He received some 86.3% of he vote in the southern district of Torata, where Anglo American AAL.L and Japan's Mitsubishi 8058.T are developing the $5.3 billion Quellaveco copper mine, set to begin production in 2022. By Marco Aquino LIMA, June 11 (Reuters) - Peru's key mining regions overwhelming supported socialist Pedro Castillo, who looks on track to win the Andean country's tight presidential election and has pledged to sharply hike taxes on firms operating in the world's no. Fujimori, a divisive but market-friendly candidate, had looked to lure support from mining regions with a pledge to give funds raised from mining directly to local communities, but the move appears to have fallen short with voters.
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He received some 86.3% of he vote in the southern district of Torata, where Anglo American AAL.L and Japan's Mitsubishi 8058.T are developing the $5.3 billion Quellaveco copper mine, set to begin production in 2022. Overall, the election data showed that Castillo received more than 65% support in at least 10 provinces where key copper, gold, silver, and zinc mines are located, giving him a strong mandate in those areas to push reforms. The strong support for Castillo was not only in areas where large mines are already developed, but also where new mining sites are being built, an analysis of the data showed.
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He received some 86.3% of he vote in the southern district of Torata, where Anglo American AAL.L and Japan's Mitsubishi 8058.T are developing the $5.3 billion Quellaveco copper mine, set to begin production in 2022. By Marco Aquino LIMA, June 11 (Reuters) - Peru's key mining regions overwhelming supported socialist Pedro Castillo, who looks on track to win the Andean country's tight presidential election and has pledged to sharply hike taxes on firms operating in the world's no. In mining provinces such as Cotabambas, Espinar and Chumbivilcas, over nine out of 10 people voted for Castillo, election data show, propelling him to a narrow but sustained lead ahead of conservative rival Keiko Fujimori.
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4412.0
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2021-06-10 00:00:00 UTC
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American Airlines Plans To Invest $25 Mln In U.K.-based Electric Aircraft Startup Vertical
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AAL
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https://www.nasdaq.com/articles/american-airlines-plans-to-invest-%2425-mln-in-u.k.-based-electric-aircraft-startup-vertical
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nan
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nan
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(RTTNews) - American Airlines (AAL) said it plans to invest $25 million in UK-based electric aircraft maker Vertical Aerospace through a private investment in public equity transaction.
Vertical is developing the VA-X4, a zero-carbon aircraft that can carry four passengers and a pilot, and fly at speeds up to 200 mph over a range of more than 100 miles. It plans to conduct its first test flight of the VA-X4 later this year, with certification of the aircraft as early as 2024.
As part of its investment in Vertical, American has agreed to pre-order up to 250 aircraft, representing a potential pre-order commitment of $1 billion, and an option to order an additional 100 aircraft.
The aircraft could potentially transport customers quickly around urban city centers and to airports.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines (AAL) said it plans to invest $25 million in UK-based electric aircraft maker Vertical Aerospace through a private investment in public equity transaction. Vertical is developing the VA-X4, a zero-carbon aircraft that can carry four passengers and a pilot, and fly at speeds up to 200 mph over a range of more than 100 miles. It plans to conduct its first test flight of the VA-X4 later this year, with certification of the aircraft as early as 2024.
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(RTTNews) - American Airlines (AAL) said it plans to invest $25 million in UK-based electric aircraft maker Vertical Aerospace through a private investment in public equity transaction. As part of its investment in Vertical, American has agreed to pre-order up to 250 aircraft, representing a potential pre-order commitment of $1 billion, and an option to order an additional 100 aircraft. The aircraft could potentially transport customers quickly around urban city centers and to airports.
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(RTTNews) - American Airlines (AAL) said it plans to invest $25 million in UK-based electric aircraft maker Vertical Aerospace through a private investment in public equity transaction. As part of its investment in Vertical, American has agreed to pre-order up to 250 aircraft, representing a potential pre-order commitment of $1 billion, and an option to order an additional 100 aircraft. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines (AAL) said it plans to invest $25 million in UK-based electric aircraft maker Vertical Aerospace through a private investment in public equity transaction. Vertical is developing the VA-X4, a zero-carbon aircraft that can carry four passengers and a pilot, and fly at speeds up to 200 mph over a range of more than 100 miles. It plans to conduct its first test flight of the VA-X4 later this year, with certification of the aircraft as early as 2024.
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4413.0
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2021-06-10 00:00:00 UTC
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Air Taxi Start-Up Vertical Aerospace to Go Public With Funding From American Airlines, Others
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AAL
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https://www.nasdaq.com/articles/air-taxi-start-up-vertical-aerospace-to-go-public-with-funding-from-american-airlines
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nan
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nan
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Air taxi start-up Vertical Aerospace Group said late Thursday it intends to go public with nearly $400 million in new funding from a number of big-name partners who have also agreed to order up to 1,000 aircraft.
Vertical has a deal to merge with special purpose acquisition company (SPAC) Broadstone Acquisition (NYSE: BSN). The deal values the combination at about $2.2 billion and includes investments from American Airlines Group (NASDAQ: AAL), air-leasing company Avolon, and Virgin Atlantic airline, as well as an investment arm of Microsoft.
Image source: Getty Images.
Vertical Aerospace's main product is the VA-X4, a piloted, zero-emissions electric-vertical take off and landing (eVTOL) vehicle. The airplane/helicopter hybrid is expected to have a range of 100 miles and capacity to carry four passengers along with a pilot at speeds up to 200 miles per hour.
These so-called air taxi developers are becoming a hot commodity on Wall Street. China's Ehang Holdings is already public. Another start-up, Joby Aviation, has a deal pending to merge with SPAC Reinvent Technology Partners. And Embraer is reportedly in talks to merge its eVTOL unit with Zanite Acquisition, also a SPAC.
Vertical has a competitive advantage in the form of its investors. American, Virgin Atlantic, and Avolon together have committed to buy up to 1,000 aircraft. American, which said it has a "pre-order" of 250 aircraft with an option to order an additional 100, in a statement said eVTOLs could be a key part of its push to go green.
"Emerging technologies are critical in the race to reduce carbon emissions and we are excited to partner with Vertical to develop the next generation of electric aircraft," American Chief Financial Officer Derek Kerr said. "For years, American has led the industry in investing in newer, more fuel-efficient aircraft. Today's partnership is another example of that commitment, and an investment in the future of air mobility."
While small eVTOLs can't replace commercial aircraft, they could provide greener alternatives to funnel a small number of passengers to large hub airports.
10 stocks we like better than Broadstone Acquisition Corp.
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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Lou Whiteman owns shares of Microsoft. The Motley Fool owns shares of and recommends Microsoft. 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 deal values the combination at about $2.2 billion and includes investments from American Airlines Group (NASDAQ: AAL), air-leasing company Avolon, and Virgin Atlantic airline, as well as an investment arm of Microsoft. Air taxi start-up Vertical Aerospace Group said late Thursday it intends to go public with nearly $400 million in new funding from a number of big-name partners who have also agreed to order up to 1,000 aircraft. American, which said it has a "pre-order" of 250 aircraft with an option to order an additional 100, in a statement said eVTOLs could be a key part of its push to go green.
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The deal values the combination at about $2.2 billion and includes investments from American Airlines Group (NASDAQ: AAL), air-leasing company Avolon, and Virgin Atlantic airline, as well as an investment arm of Microsoft. Air taxi start-up Vertical Aerospace Group said late Thursday it intends to go public with nearly $400 million in new funding from a number of big-name partners who have also agreed to order up to 1,000 aircraft. Vertical has a deal to merge with special purpose acquisition company (SPAC) Broadstone Acquisition (NYSE: BSN).
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The deal values the combination at about $2.2 billion and includes investments from American Airlines Group (NASDAQ: AAL), air-leasing company Avolon, and Virgin Atlantic airline, as well as an investment arm of Microsoft. Air taxi start-up Vertical Aerospace Group said late Thursday it intends to go public with nearly $400 million in new funding from a number of big-name partners who have also agreed to order up to 1,000 aircraft. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors.
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The deal values the combination at about $2.2 billion and includes investments from American Airlines Group (NASDAQ: AAL), air-leasing company Avolon, and Virgin Atlantic airline, as well as an investment arm of Microsoft. Air taxi start-up Vertical Aerospace Group said late Thursday it intends to go public with nearly $400 million in new funding from a number of big-name partners who have also agreed to order up to 1,000 aircraft. American, Virgin Atlantic, and Avolon together have committed to buy up to 1,000 aircraft.
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4414.0
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2021-06-10 00:00:00 UTC
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Vertical Aerospace to go public in $2.2 billion SPAC deal
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AAL
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https://www.nasdaq.com/articles/vertical-aerospace-to-go-public-in-%242.2-billion-spac-deal-2021-06-10
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nan
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nan
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Adds details on the deal
June 10 (Reuters) - Vertical Aerospace, an electric vertical takeoff and landing aircraft (eVTOL) maker backed by investors such as American Airlines AAL.O, will go public through a merger with a blank-check firm in a deal valued at $2.2 billion, the company said on Thursday.
Vertical Aerospace said it has conditional pre-orders for up to $4 billion and 1,000 eVTOL aircraft, from aircraft lessor Avolon and American Airlines, and a pre-order option from Virgin Atlantic.
"If you think about transportation strategically this is the next big frontier," said Domhnal Slattery, chief executive of Avolon, the world's third-largest aircraft leasing company.
Vertical Aerospace said it has also raised funds from other companies including Honeywell HON.O and Rolls-Royce RR.L.
Vertical will be listed on the New York Stock Exchange under the ticker 'EVTL', following a deal with Broadstone Acquisition Corp BSN.N. The deal is expected to close in the second half of 2021.
(Reporting by Ankit Ajmera in Bengaluru, Tracy Rucinski in Chicago and Tim Hepher in Paris; Editing by Krishna Chandra Eluri)
((Ankit.Ajmera@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 on the deal June 10 (Reuters) - Vertical Aerospace, an electric vertical takeoff and landing aircraft (eVTOL) maker backed by investors such as American Airlines AAL.O, will go public through a merger with a blank-check firm in a deal valued at $2.2 billion, the company said on Thursday. "If you think about transportation strategically this is the next big frontier," said Domhnal Slattery, chief executive of Avolon, the world's third-largest aircraft leasing company. Vertical will be listed on the New York Stock Exchange under the ticker 'EVTL', following a deal with Broadstone Acquisition Corp BSN.N.
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Adds details on the deal June 10 (Reuters) - Vertical Aerospace, an electric vertical takeoff and landing aircraft (eVTOL) maker backed by investors such as American Airlines AAL.O, will go public through a merger with a blank-check firm in a deal valued at $2.2 billion, the company said on Thursday. Vertical Aerospace said it has conditional pre-orders for up to $4 billion and 1,000 eVTOL aircraft, from aircraft lessor Avolon and American Airlines, and a pre-order option from Virgin Atlantic. Vertical Aerospace said it has also raised funds from other companies including Honeywell HON.O and Rolls-Royce RR.L.
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Adds details on the deal June 10 (Reuters) - Vertical Aerospace, an electric vertical takeoff and landing aircraft (eVTOL) maker backed by investors such as American Airlines AAL.O, will go public through a merger with a blank-check firm in a deal valued at $2.2 billion, the company said on Thursday. Vertical Aerospace said it has conditional pre-orders for up to $4 billion and 1,000 eVTOL aircraft, from aircraft lessor Avolon and American Airlines, and a pre-order option from Virgin Atlantic. (Reporting by Ankit Ajmera in Bengaluru, Tracy Rucinski in Chicago and Tim Hepher in Paris; Editing by Krishna Chandra Eluri) ((Ankit.Ajmera@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 on the deal June 10 (Reuters) - Vertical Aerospace, an electric vertical takeoff and landing aircraft (eVTOL) maker backed by investors such as American Airlines AAL.O, will go public through a merger with a blank-check firm in a deal valued at $2.2 billion, the company said on Thursday. Vertical Aerospace said it has conditional pre-orders for up to $4 billion and 1,000 eVTOL aircraft, from aircraft lessor Avolon and American Airlines, and a pre-order option from Virgin Atlantic. "If you think about transportation strategically this is the next big frontier," said Domhnal Slattery, chief executive of Avolon, the world's third-largest aircraft leasing company.
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4415.0
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2021-06-10 00:00:00 UTC
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American Airlines to invest in electric aircraft maker Vertical Aerospace
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-invest-in-electric-aircraft-maker-vertical-aerospace-2021-06-10
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nan
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nan
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June 10 (Reuters) - American Airlines AAL.O said on Thursday it will invest in Vertical Aerospace, a UK-based maker of electric vertical takeoff and landing aircraft.
As part of the deal, American has agreed to pre-order up to 250 aircraft, representing a potential commitment of $1 billion, and an option to order an additional 100 aircraft.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Krishna Chandra Eluri)
((Ankit.Ajmera@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 10 (Reuters) - American Airlines AAL.O said on Thursday it will invest in Vertical Aerospace, a UK-based maker of electric vertical takeoff and landing aircraft. As part of the deal, American has agreed to pre-order up to 250 aircraft, representing a potential commitment of $1 billion, and an option to order an additional 100 aircraft. (Reporting by Ankit Ajmera in Bengaluru; Editing by Krishna Chandra Eluri) ((Ankit.Ajmera@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 10 (Reuters) - American Airlines AAL.O said on Thursday it will invest in Vertical Aerospace, a UK-based maker of electric vertical takeoff and landing aircraft. As part of the deal, American has agreed to pre-order up to 250 aircraft, representing a potential commitment of $1 billion, and an option to order an additional 100 aircraft. (Reporting by Ankit Ajmera in Bengaluru; Editing by Krishna Chandra Eluri) ((Ankit.Ajmera@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 10 (Reuters) - American Airlines AAL.O said on Thursday it will invest in Vertical Aerospace, a UK-based maker of electric vertical takeoff and landing aircraft. As part of the deal, American has agreed to pre-order up to 250 aircraft, representing a potential commitment of $1 billion, and an option to order an additional 100 aircraft. (Reporting by Ankit Ajmera in Bengaluru; Editing by Krishna Chandra Eluri) ((Ankit.Ajmera@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 10 (Reuters) - American Airlines AAL.O said on Thursday it will invest in Vertical Aerospace, a UK-based maker of electric vertical takeoff and landing aircraft. As part of the deal, American has agreed to pre-order up to 250 aircraft, representing a potential commitment of $1 billion, and an option to order an additional 100 aircraft. (Reporting by Ankit Ajmera in Bengaluru; Editing by Krishna Chandra Eluri) ((Ankit.Ajmera@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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4416.0
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2021-06-10 00:00:00 UTC
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Spirit Airlines Takes on American Airlines With Miami Expansion
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-takes-on-american-airlines-with-miami-expansion-2021-06-10
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nan
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nan
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For years, Spirit Airlines (NYSE: SAVE) and American Airlines (NASDAQ: AAL) have coexisted in South Florida with minimal drama. American Airlines dominates Miami International Airport, carrying about 75% of domestic traffic there in 2019. Meanwhile, Spirit Airlines has offered its low-fare service at Fort Lauderdale-Hollywood International Airport, about 30 miles north, typically as the largest or second-largest carrier there.
However, Spirit Airlines is about to shatter this delicate balance. Earlier this week, it announced plans to begin flying to Miami, launching 30 routes this fall.
A popular pandemic destination
Air travel demand to Miami has recovered much faster than most of the country, as Florida has reopened its economy faster than most states and leisure travelers have flocked to beaches and other outdoor-focused vacation destinations.
For the 12-month period ending in February 2021 -- representing the peak of the pandemic -- domestic traffic at Miami International Airport fell 60% compared to the previous 12-month period. For comparison, domestic traffic fell 74% in Los Angeles and plunged 79% in Boston. In March, domestic traffic recovered to just 19% below 2019 levels in Miami.
Strong demand in the Miami market has been a boon to American Airlines. But it has also stimulated an uptick in competition. Since last fall, two of the biggest low-fare airlines in the U.S. -- Southwest Airlines and JetBlue Airways -- have begun flying to Miami after previously serving the market via Fort Lauderdale. Now, Spirit Airlines is poised to join them.
Image source: Spirit Airlines.
Spirit Airlines goes big in Miami
While Spirit won't be the first airline to start serving Miami as the U.S. airline industry recovers, the scale of its ambitions there is unique. Southwest Airlines entered Miami last November with 12 daily departures and now offers up to 20 daily departures. Meanwhile, JetBlue operates up to 14 daily departures from Miami.
By contrast, Spirit Airlines plans to launch its Miami service in early October with nine flights a day spread across 10 routes. By the second half of November, it expects to operate 29 daily flights on 30 routes from Miami. (The airline needs to finalize agreements with the airport for gate space and ticket counters before firming up its flight schedule.) Management anticipates that this will instantly make Spirit the second-largest airline at Miami International Airport.
Of course, Spirit will still be dramatically smaller than American Airlines in Miami. But it will force the airline giant to either match its rock-bottom fares on a broad selection of routes or risk losing price-sensitive customers. Both options could slow American Airlines' recovery in this key market.
An important move to restore capacity
Spirit Airlines' entry into the Miami market could spark a brutal fare war with American Airlines. However, the budget carrier has a built-in customer base in Miami in the form of cost-conscious travelers who previously drove to Fort Lauderdale to catch Spirit Airlines flights. Additionally, Spirit's rock-bottom cost structure and its large stream of ancillary revenue enable it to make money even with extremely low base fares.
Image source: American Airlines.
All things considered, this makes Miami a promising growth market for Spirit Airlines. And finding growth markets is essential for the company. As of late April, Spirit estimated that capacity would be within 2% of 2019 levels by this month. But the carrier expects to end this month with 164 aircraft in its fleet, up 21% from two years earlier. It plans to continue expanding its fleet rapidly in the near term, ending 2022 with 194 planes.
This means Spirit can't content itself with restoring capacity to 2019 levels. Due to the growth of its fleet, keeping capacity in line with 2019 would entail reducing aircraft utilization, pressuring unit costs.
Instead, Spirit Airlines needs to grow. In fact, it's aiming to increase capacity more than 30% from 2019 levels next year. Spirit's bold growth plan in Miami looks like a promising way to make progress toward that ambitious target -- mainly at the expense of American Airlines.
10 stocks we like better than Spirit Airlines
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Spirit Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Adam Levine-Weinberg owns shares of JetBlue Airways and Spirit Airlines and is long January 2022 $10 calls on JetBlue Airways and short January 2022 $40 calls on Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. The Motley Fool recommends 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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For years, Spirit Airlines (NYSE: SAVE) and American Airlines (NASDAQ: AAL) have coexisted in South Florida with minimal drama. Meanwhile, Spirit Airlines has offered its low-fare service at Fort Lauderdale-Hollywood International Airport, about 30 miles north, typically as the largest or second-largest carrier there. However, the budget carrier has a built-in customer base in Miami in the form of cost-conscious travelers who previously drove to Fort Lauderdale to catch Spirit Airlines flights.
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For years, Spirit Airlines (NYSE: SAVE) and American Airlines (NASDAQ: AAL) have coexisted in South Florida with minimal drama. For the 12-month period ending in February 2021 -- representing the peak of the pandemic -- domestic traffic at Miami International Airport fell 60% compared to the previous 12-month period. Since last fall, two of the biggest low-fare airlines in the U.S. -- Southwest Airlines and JetBlue Airways -- have begun flying to Miami after previously serving the market via Fort Lauderdale.
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For years, Spirit Airlines (NYSE: SAVE) and American Airlines (NASDAQ: AAL) have coexisted in South Florida with minimal drama. Spirit Airlines goes big in Miami While Spirit won't be the first airline to start serving Miami as the U.S. airline industry recovers, the scale of its ambitions there is unique. An important move to restore capacity Spirit Airlines' entry into the Miami market could spark a brutal fare war with American Airlines.
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For years, Spirit Airlines (NYSE: SAVE) and American Airlines (NASDAQ: AAL) have coexisted in South Florida with minimal drama. In March, domestic traffic recovered to just 19% below 2019 levels in Miami. Since last fall, two of the biggest low-fare airlines in the U.S. -- Southwest Airlines and JetBlue Airways -- have begun flying to Miami after previously serving the market via Fort Lauderdale.
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4417.0
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2021-06-09 00:00:00 UTC
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Wednesday's ETF with Unusual Volume: XTN
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AAL
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https://www.nasdaq.com/articles/wednesdays-etf-with-unusual-volume%3A-xtn-2021-06-09
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nan
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nan
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The SPDR— S&P— Transportation ETF is seeing unusually high volume in afternoon trading Wednesday, with over 811,000 shares traded versus three month average volume of about 125,000. Shares of XTN were off about 0.8% on the day.
Components of that ETF with the highest volume on Wednesday were American Airlines Group, trading off about 0.6% with over 12.0 million shares changing hands so far this session, and Uber Technologies, up about 0.2% on volume of over 7.6 million shares. Hawaiian Holdings is the component faring the best Wednesday, up by about 7.5% on the day, while Arcbest is lagging other components of the SPDR— S&P— Transportation ETF, trading lower by about 5%.
VIDEO: Wednesday's ETF with Unusual Volume: XTN
The views and 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 SPDR— S&P— Transportation ETF is seeing unusually high volume in afternoon trading Wednesday, with over 811,000 shares traded versus three month average volume of about 125,000. Components of that ETF with the highest volume on Wednesday were American Airlines Group, trading off about 0.6% with over 12.0 million shares changing hands so far this session, and Uber Technologies, up about 0.2% on volume of over 7.6 million shares. VIDEO: Wednesday's ETF with Unusual Volume: XTN The views and 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 SPDR— S&P— Transportation ETF is seeing unusually high volume in afternoon trading Wednesday, with over 811,000 shares traded versus three month average volume of about 125,000. Hawaiian Holdings is the component faring the best Wednesday, up by about 7.5% on the day, while Arcbest is lagging other components of the SPDR— S&P— Transportation ETF, trading lower by about 5%. VIDEO: Wednesday's ETF with Unusual Volume: XTN The views and 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 SPDR— S&P— Transportation ETF is seeing unusually high volume in afternoon trading Wednesday, with over 811,000 shares traded versus three month average volume of about 125,000. Components of that ETF with the highest volume on Wednesday were American Airlines Group, trading off about 0.6% with over 12.0 million shares changing hands so far this session, and Uber Technologies, up about 0.2% on volume of over 7.6 million shares. VIDEO: Wednesday's ETF with Unusual Volume: XTN The views and 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 SPDR— S&P— Transportation ETF is seeing unusually high volume in afternoon trading Wednesday, with over 811,000 shares traded versus three month average volume of about 125,000. Shares of XTN were off about 0.8% on the day. Components of that ETF with the highest volume on Wednesday were American Airlines Group, trading off about 0.6% with over 12.0 million shares changing hands so far this session, and Uber Technologies, up about 0.2% on volume of over 7.6 million shares.
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4418.0
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2021-06-09 00:00:00 UTC
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European shares loiter around peaks; travel stocks shine on recovery prospects
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AAL
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https://www.nasdaq.com/articles/european-shares-loiter-around-peaks-travel-stocks-shine-on-recovery-prospects-2021-06-09
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nan
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nan
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By Sruthi Shankar
June 9 (Reuters) - European stocks steadied near record highs on Wednesday, with investors holding off on taking big bets ahead of a policy decision from the European Central Bank and U.S. inflation reading later this week.
The pan-European STOXX 600 index .STOXX slipped 0.1% in morning trade, but stayed just short of a record high of 455.66 hit in the previous session.
Air France KLM AIRF.PA, Lufthansa LHAG.DE and British Airways-owner IAG ICAG.L climbed more than 2% after the U.S. CDC said it was easing travel recommendations on 110 countries and territories.
The wider travel and leisure index .SXTP rose 0.7% as many European economies charted their way out of COVID-19 lockdowns.
Still, worries about rising inflation remained on investors' minds after data earlier showed China's factory gate prices rose at their fastest annual pace in over 12 years in May, driven by surging commodity prices.
Big UK-listed miners such as Rio Tinto RIO.L, Anglo American AAL.L and BHP Group BHPB.L fell more than 1%, pulling down London's blue-chip FTSE 100 .FTSE by 0.6%.
Other main regional bourses including Germany's DAX .GDAXI and France's CAC 40 .FCHI were trading flat.
Focus will be on the U.S. consumer prices data on Thursday, a reading that could influence market expectations on the U.S. Federal Reserve tapering its massive bond purchases programme ahead of its meeting next week.
Despite an economic recovery underway and price pressures rising, the ECB is likely to say that it will maintain the current pace of bond purchases at its policy meeting on Thursday.
"Inflation is creating uncertainty about what central banks will do or say going forward," said Emmanuel Cau, European equity strategist at Barclays.
"We think central banks will be patient, but we also believe that an adjustment in communication about inflation and policy changes will start in summer."
Spanish retail giant Inditex ITX.MC reversed early gains made after beating first-quarter net profit expectations. Its shares were down more than 1%.
French food group Danone DANO.PA slipped 1.9% after RBC downgraded the stock to "underperform".
Oslo-based salmon farmer SalMar SALM.OL fell about 5% to the bottom of STOXX 600 after it completed a private placement deal.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big UK-listed miners such as Rio Tinto RIO.L, Anglo American AAL.L and BHP Group BHPB.L fell more than 1%, pulling down London's blue-chip FTSE 100 .FTSE by 0.6%. Air France KLM AIRF.PA, Lufthansa LHAG.DE and British Airways-owner IAG ICAG.L climbed more than 2% after the U.S. CDC said it was easing travel recommendations on 110 countries and territories. Focus will be on the U.S. consumer prices data on Thursday, a reading that could influence market expectations on the U.S. Federal Reserve tapering its massive bond purchases programme ahead of its meeting next week.
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Big UK-listed miners such as Rio Tinto RIO.L, Anglo American AAL.L and BHP Group BHPB.L fell more than 1%, pulling down London's blue-chip FTSE 100 .FTSE by 0.6%. By Sruthi Shankar June 9 (Reuters) - European stocks steadied near record highs on Wednesday, with investors holding off on taking big bets ahead of a policy decision from the European Central Bank and U.S. inflation reading later this week. Focus will be on the U.S. consumer prices data on Thursday, a reading that could influence market expectations on the U.S. Federal Reserve tapering its massive bond purchases programme ahead of its meeting next week.
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Big UK-listed miners such as Rio Tinto RIO.L, Anglo American AAL.L and BHP Group BHPB.L fell more than 1%, pulling down London's blue-chip FTSE 100 .FTSE by 0.6%. By Sruthi Shankar June 9 (Reuters) - European stocks steadied near record highs on Wednesday, with investors holding off on taking big bets ahead of a policy decision from the European Central Bank and U.S. inflation reading later this week. Still, worries about rising inflation remained on investors' minds after data earlier showed China's factory gate prices rose at their fastest annual pace in over 12 years in May, driven by surging commodity prices.
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Big UK-listed miners such as Rio Tinto RIO.L, Anglo American AAL.L and BHP Group BHPB.L fell more than 1%, pulling down London's blue-chip FTSE 100 .FTSE by 0.6%. By Sruthi Shankar June 9 (Reuters) - European stocks steadied near record highs on Wednesday, with investors holding off on taking big bets ahead of a policy decision from the European Central Bank and U.S. inflation reading later this week. The pan-European STOXX 600 index .STOXX slipped 0.1% in morning trade, but stayed just short of a record high of 455.66 hit in the previous session.
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4419.0
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2021-06-08 00:00:00 UTC
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EXCLUSIVE-U.S. forming expert groups on safely lifting global travel restrictions
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AAL
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https://www.nasdaq.com/articles/exclusive-u.s.-forming-expert-groups-on-safely-lifting-global-travel-restrictions-2021-06
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nan
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nan
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By David Shepardson
WASHINGTON, June 8 (Reuters) - The Biden administration is forming expert working groups with Canada, Mexico, the European Union and the United Kingdom to determine how best to safely restart travel after 15 months of pandemic restrictions, a White House official said on Tuesday.
Another U.S. official said an announcement expected on Tuesday indicated the administration will not move quickly to lift orders that bar people from much of the world from entering the United States because of the time it will take for the groups to do their work.
"While we are not reopening travel today, we hope that these expert working groups will help us use our collective expertise to chart a path forward, with a goal of reopening international travel with our key partners when it is determined that it is safe to do so," the White House official said.
They said "any decisions will be fully guided by the objective analysis and recommendations by public health and medical experts." The groups will be led by the White House COVID Response Team and the National Security Council and include the Centers for Disease Control (CDC) and other agencies.
The CDC said on Tuesday it was easing travel recommendations on 110 countries and territories, including Canada, Mexico, Japan, South Africa and Iran.
CDC Director Rochelle Walensky said the travel restrictions are subject to "an interagency conversation, and we are looking at the data in real time as to how we should move forward with that."
The Biden administration has faced pressure from some lawmakers who said U.S. communities along the Canadian border have faced economic hardship because of land border restrictions.
Airlines and others have pressed the administration to lift the restrictions on most non-U.S. citizens who have been in the United Kingdom, the 26 Schengen nations in Europe without border controls, Ireland, China, India, South Africa, Iran and Brazil. The United States also bars most non-essential travel at its land borders with Mexico and Canada.
On Monday, the heads of all passenger airlines flying between Britain and the United States called on both countries to lift limits on trans-Atlantic travel restrictions.
High vaccination rates in both countries meant travel could restart safely, said the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O in a virtual press conference.
U.S. President Joe Biden and British Prime Minister Boris Johnson will meet at the G7 meeting of advanced economies this week in Cornwall, England.
U.S. and UK airline officials said they do not expect Washington to lift restrictions until around July 4 at the earliest as the administration aims to get more Americans vaccinated.
(Reporting by David Shepardson; editing by Jonathan Oatis 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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High vaccination rates in both countries meant travel could restart safely, said the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O in a virtual press conference. By David Shepardson WASHINGTON, June 8 (Reuters) - The Biden administration is forming expert working groups with Canada, Mexico, the European Union and the United Kingdom to determine how best to safely restart travel after 15 months of pandemic restrictions, a White House official said on Tuesday. Another U.S. official said an announcement expected on Tuesday indicated the administration will not move quickly to lift orders that bar people from much of the world from entering the United States because of the time it will take for the groups to do their work.
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High vaccination rates in both countries meant travel could restart safely, said the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O in a virtual press conference. By David Shepardson WASHINGTON, June 8 (Reuters) - The Biden administration is forming expert working groups with Canada, Mexico, the European Union and the United Kingdom to determine how best to safely restart travel after 15 months of pandemic restrictions, a White House official said on Tuesday. The CDC said on Tuesday it was easing travel recommendations on 110 countries and territories, including Canada, Mexico, Japan, South Africa and Iran.
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High vaccination rates in both countries meant travel could restart safely, said the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O in a virtual press conference. By David Shepardson WASHINGTON, June 8 (Reuters) - The Biden administration is forming expert working groups with Canada, Mexico, the European Union and the United Kingdom to determine how best to safely restart travel after 15 months of pandemic restrictions, a White House official said on Tuesday. "While we are not reopening travel today, we hope that these expert working groups will help us use our collective expertise to chart a path forward, with a goal of reopening international travel with our key partners when it is determined that it is safe to do so," the White House official said.
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High vaccination rates in both countries meant travel could restart safely, said the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O in a virtual press conference. By David Shepardson WASHINGTON, June 8 (Reuters) - The Biden administration is forming expert working groups with Canada, Mexico, the European Union and the United Kingdom to determine how best to safely restart travel after 15 months of pandemic restrictions, a White House official said on Tuesday. Another U.S. official said an announcement expected on Tuesday indicated the administration will not move quickly to lift orders that bar people from much of the world from entering the United States because of the time it will take for the groups to do their work.
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4420.0
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2021-06-07 00:00:00 UTC
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Airline chiefs urge end to UK-U.S. travel restrictions
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AAL
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https://www.nasdaq.com/articles/airline-chiefs-urge-end-to-uk-u.s.-travel-restrictions-2021-06-07
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By Sarah Young and David Shepardson
LONDON/WASHINGTON, June 7 (Reuters) - The heads of all passenger airlines flying between Britain and the United States called on Monday for both countries to lift trans-Atlantic travel restrictions put in place to fight the COVID-19 pandemic.
High vaccination rates in both countries meant travel could restart safely after more than a year of restrictions, said the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.Oin a rare joint virtual press conference.
The push came days ahead of this week's meetings between U.S. President Joe Biden and British Prime Minister Boris Johnson at the G7 meeting of advanced economies this week in Cornwall, southwest England.
U.S. and UK airline officials told Reuters they do not expect Washington to lift restrictions until around July 4 at the earliest as the administration aims to get more Americans vaccinated.
British Airways chief executive Sean Doyle said lifting restrictions is essential.
"I think there's much more at stake here than a holiday, it's about trade, it's about visiting friends and relatives, and it's about getting back and doing business and re-employing people," Doyle said.
Since March 2020, the United States has barred nearly all non-U.S. citizens who have been in the United Kingdom within the previous 14 days from entering the country. Most U.S. travellers visiting the United Kingdom must quarantine for 10 days upon arrival.
Reopening is more crucial for Britain-based airlines British Airways and Virgin Atlantic, which are not benefiting from a rebounding domestic market like their U.S. peers.
JetBlue CEO Robin Hayes said "the human cost is just I think devastating" for people who have been vaccinated but "haven't seen their kids, grandkids for over a year now."
The vast majority of nations do not face the entry restrictions and were added by the United States on an ad hoc basis. Only the 26 Schengen nations in Europe without border controls, Ireland, China, India, South Africa, Iran and Brazil face the restrictions.
American Airlines Chief Executive Doug Parker said the list of countries that face those U.S. restrictions "doesn't make much sense anymore ... vaccinated travellers are safe to travel."
United Airlines CEO Scott Kirby said the airline "could add pretty significant capacity" within four weeks if restrictions were lifted. "We are in the peak travel season for travel between the US and UK, and every single day that goes by is a day lost for the recovery," he said.
(Reporting by Sarah Young in London and David Shepardson in Washington; editing by Michael Holden and David Gregorio)
((sarah.young@thomsonreuters.com; +44 20 7542 1109; Reuters Messaging: sarah.young.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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High vaccination rates in both countries meant travel could restart safely after more than a year of restrictions, said the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.Oin a rare joint virtual press conference. By Sarah Young and David Shepardson LONDON/WASHINGTON, June 7 (Reuters) - The heads of all passenger airlines flying between Britain and the United States called on Monday for both countries to lift trans-Atlantic travel restrictions put in place to fight the COVID-19 pandemic. U.S. and UK airline officials told Reuters they do not expect Washington to lift restrictions until around July 4 at the earliest as the administration aims to get more Americans vaccinated.
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High vaccination rates in both countries meant travel could restart safely after more than a year of restrictions, said the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.Oin a rare joint virtual press conference. British Airways chief executive Sean Doyle said lifting restrictions is essential. American Airlines Chief Executive Doug Parker said the list of countries that face those U.S. restrictions "doesn't make much sense anymore ... vaccinated travellers are safe to travel."
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High vaccination rates in both countries meant travel could restart safely after more than a year of restrictions, said the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.Oin a rare joint virtual press conference. By Sarah Young and David Shepardson LONDON/WASHINGTON, June 7 (Reuters) - The heads of all passenger airlines flying between Britain and the United States called on Monday for both countries to lift trans-Atlantic travel restrictions put in place to fight the COVID-19 pandemic. American Airlines Chief Executive Doug Parker said the list of countries that face those U.S. restrictions "doesn't make much sense anymore ... vaccinated travellers are safe to travel."
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High vaccination rates in both countries meant travel could restart safely after more than a year of restrictions, said the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.Oin a rare joint virtual press conference. British Airways chief executive Sean Doyle said lifting restrictions is essential. Most U.S. travellers visiting the United Kingdom must quarantine for 10 days upon arrival.
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4421.0
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2021-06-07 00:00:00 UTC
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Best Airline Stocks To Buy This Week? 3 To Watch
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https://www.nasdaq.com/articles/best-airline-stocks-to-buy-this-week-3-to-watch-2021-06-07
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Are These The Top Airline Stocks To Watch Right Now?
While investors are cautiously evaluating the most volatile stocks in the stock market today, airline stocks could be in focus. They may not post massive gains like meme stocks, but some would argue that airline stocks could take off now. After all, airline operators are, understandably, well-positioned to benefit from the reopening trade momentum now. This would especially be the case with the return of commercial air travel. For the most part, this is thanks to nationwide vaccination efforts and the return of in-person entertainment businesses. By extension, this would lead to an influx of flyers which could mark great news for airline companies and investors alike.
With the current positive sentiment from investors, airline stocks, in general, appear to be gunning for their pre-pandemic levels. For instance, we could look at the likes of Alaska Air (NYSE: ALK) and American Airlines Group Inc. (NASDAQ: AAL) to see this. Adding to that, airline companies also appear to be hard at work bolstering their services, anticipating better times ahead. On one hand, Alaska Air is looking to more than triple its available flights from the Paine Field-Snohomish County Airport by next year. On the other hand, American Airlines continues to expand its flight options, inaugurating its second route to Israel. Over the weekend, the company revealed that it plans to serve the route three times per week.
By and large, I can understand the appeal of top airline stocks now. With pandemic conditions projected to gradually continue improving, more investors could be looking for points of entry into the industry. If you are among said investors, here are three to consider in the stock market this week.
Top Airline Stocks To Watch In June 2021
Delta Air Lines Inc. (NYSE: DAL)
Southwest Airlines Company (NYSE: LUV)
Spirit Airlines Inc. (NYSE: SAVE)
Delta Air Lines
Starting us off today is Delta Air Lines. The Georgia-based airline operator is one of the major airlines in the U.S. today. In brief, it is a global leader in the industry when it comes to air travel services. For a sense of scale, the company runs over 5,000 daily departures and more than 15,000 affiliated departures through alliances. Through its fleet, Delta boasts a massive global network consisting of over 300 destinations in over 50 countries. According to Delta, the company served nearly 200 million people on an annual basis before the pandemic hit. Could all this make DAL stock a top airline stock now?
Source: TD Ameritrade TOS
For one thing, Delta appears serious about conforming to post-pandemic era practices. The company will require new employees to be fully vaccinated before joining the Delta team moving forward. Aside from that, CEO Ed Bastian also strongly encourages the company’s existing 75,000 employees to do the same. Should some employees opt out, Bastian mentioned work restrictions being put in place. This would bring an additional layer of assurance to consumers looking to fly in a post-coronavirus environment.
Moreover, Bastian also appears to have a positive outlook on the industry now. Last week, the Delta CEO predicted that business travel will be booming in September. He cited the awaited return of corporate America as well as physical businesses reopening as key factors to consider here. With this and the continued demand for Delta’s leisure bookings this summer, could DAL stock be a top buy for you now?
[Read More] 4 Artificial Intelligence Stocks To Watch Right Now
Southwest Airlines
Following that, we have the Southwest Airlines Company. For some context, Southwest, like our previous entry, is yet another major player in the U.S. airline market now. As it stands, the company’s current portfolio consists of flights to 115 destinations across the U.S. and ten additional countries. Primarily, Southwest is a go-to for U.S. consumers looking to travel domestically now. Given the current rate of inoculation locally, this could create a perfect storm for LUV stock this year. Even now, the company’s shares are already looking at year-to-date gains of 30%.
Source: TD Ameritrade TOS
Not to mention, Southwest continues to make the most out of its current leading position in the industry as well. Earlier last week, the company launched its “Wanna Get Away Day” in celebration of its 50th anniversary. On June 18, the company will be commemorating its first commercial flight by rewarding potential flyers. According to Southwest, it will be offering over 50 million bonus points, gift cards, and Companion Passes throughout this month. If anything, all this would incentivize consumer spending during the current summer travel season, marking a strategic play by Southwest.
Furthermore, the company is also currently looking to expand its workforce while recalling employees on temporary leave. Based on a report from CNBC, the company is also reaching out to eager candidates with conditional job offers before the pandemic. All in all, it seems like the company is kicking into high gear as it anticipates a busy quarter ahead. Would you say that all this makes LUV stock worth investing in now?
Read More
4 Semiconductor Stocks To Watch Right Now
Good Stocks To Invest In Right Now? 4 IPO Stocks To Watch
Spirit Airlines Inc.
Another top airline player to know now would be Spirit Airlines Inc. For the uninitiated, the Florida-based company identifies as an ultra-low-cost carrier. Regarding its destination portfolio, Spirit Airlines offers affordable flights throughout the U.S., Caribbean, and Latin America. Now, consumers are likely eager to spend their discretionary funds on leisure and travel. Given the company’s low-cost offerings, consumers who fly with Spirit Airlines would be able to spend more elsewhere. In turn, this would cater to the needs of more thrifty travelers which benefits Spirit Airlines nonetheless. Because of this, I could see investors eyeing SAVE stock right now.
Source: TD Ameritrade TOS
Meanwhile, the company continues to expand its current offerings as well. Late last month, Spirit Airlines added six routes to its two newest destinations in its latest network update. According to VP of network planning, John Kirby, this would mainly serve to accommodate a market that is “already outperforming expectations“. Kirby cited Spirit Airlines seeing positive advance bookings figures as a key growth driver moving forward, suggesting further route additions. With demand for its services on the rise, I can understand if investors are keen on the company’s shares now.
On the financial front, Spirit Airlines appears to be on the uptrend as well. Back in April, the company reported a total revenue of $461.28 million for the quarter. Additionally, it also ended the quarter with over $1.77 billion in cash on hand, marking a 125% year-over-year surge. In closing, CEO Ted Christie had this to say, “While acknowledging that the recovery is still in progress and may not be linear, we continue to believe we will be among the first U.S. carriers to reach sustained profitability.” Given all of this, will you be adding SAVE stock to your portfolio this week?
The views and 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 instance, we could look at the likes of Alaska Air (NYSE: ALK) and American Airlines Group Inc. (NASDAQ: AAL) to see this. Source: TD Ameritrade TOS Not to mention, Southwest continues to make the most out of its current leading position in the industry as well. Kirby cited Spirit Airlines seeing positive advance bookings figures as a key growth driver moving forward, suggesting further route additions.
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For instance, we could look at the likes of Alaska Air (NYSE: ALK) and American Airlines Group Inc. (NASDAQ: AAL) to see this. Top Airline Stocks To Watch In June 2021 Delta Air Lines Inc. (NYSE: DAL) Southwest Airlines Company (NYSE: LUV) Spirit Airlines Inc. (NYSE: SAVE) Delta Air Lines Starting us off today is Delta Air Lines. Source: TD Ameritrade TOS Meanwhile, the company continues to expand its current offerings as well.
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For instance, we could look at the likes of Alaska Air (NYSE: ALK) and American Airlines Group Inc. (NASDAQ: AAL) to see this. Top Airline Stocks To Watch In June 2021 Delta Air Lines Inc. (NYSE: DAL) Southwest Airlines Company (NYSE: LUV) Spirit Airlines Inc. (NYSE: SAVE) Delta Air Lines Starting us off today is Delta Air Lines. [Read More] 4 Artificial Intelligence Stocks To Watch Right Now Southwest Airlines Following that, we have the Southwest Airlines Company.
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For instance, we could look at the likes of Alaska Air (NYSE: ALK) and American Airlines Group Inc. (NASDAQ: AAL) to see this. If you are among said investors, here are three to consider in the stock market this week. Source: TD Ameritrade TOS Not to mention, Southwest continues to make the most out of its current leading position in the industry as well.
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4422.0
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2021-06-07 00:00:00 UTC
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Airline bosses call on UK and U.S. to lift trans-Atlantic travel restrictions
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AAL
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https://www.nasdaq.com/articles/airline-bosses-call-on-uk-and-u.s.-to-lift-trans-atlantic-travel-restrictions-2021-06-07
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LONDON, June 7 (Reuters) - The bosses of all airlines flying passenger services between Britain and the United States called on Monday for the countries' governments to relax COVID-19 restrictions to reopen travel routes between the two countries.
After more than a year of restrictions, the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O said high vaccination rates in both countries meant travel could restart safely.
The push for reopening trans-Atlantic routes on Monday comes ahead of meetings between U.S. President Joe Biden and British Prime Minister Boris Johnson at the G7 meeting of advanced economies later this week in Cornwall, southwest England, this week.
The pair must use those meetings to agree to restart travel, British Airways chief executive Sean Doyle said in a statement ahead of an online press conference.
"We urgently need them to look to the science and base their judgements on a proper risk analysis, allowing us all to benefit from the protection offered by our successful vaccine rollouts," Doyle said.
Since March 2020, the United States has barred nearly all non-U.S. citizens who have been in the United Kingdom within the previous 14 days from entering the country. Most U.S. travellers visiting the United Kingdom must quarantine for 10 days upon arrival.
The need for a reopening is much stronger for Britain-based airlines British Airways and Virgin Atlantic which are not benefiting from a rebounding domestic market like their U.S. peers.
(Reporting by Sarah Young in London and David Shepardson in Washington; editing by Michael Holden)
((sarah.young@thomsonreuters.com; +44 20 7542 1109; Reuters Messaging: sarah.young.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After more than a year of restrictions, the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O said high vaccination rates in both countries meant travel could restart safely. The pair must use those meetings to agree to restart travel, British Airways chief executive Sean Doyle said in a statement ahead of an online press conference. "We urgently need them to look to the science and base their judgements on a proper risk analysis, allowing us all to benefit from the protection offered by our successful vaccine rollouts," Doyle said.
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After more than a year of restrictions, the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O said high vaccination rates in both countries meant travel could restart safely. LONDON, June 7 (Reuters) - The bosses of all airlines flying passenger services between Britain and the United States called on Monday for the countries' governments to relax COVID-19 restrictions to reopen travel routes between the two countries. The pair must use those meetings to agree to restart travel, British Airways chief executive Sean Doyle said in a statement ahead of an online press conference.
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After more than a year of restrictions, the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O said high vaccination rates in both countries meant travel could restart safely. LONDON, June 7 (Reuters) - The bosses of all airlines flying passenger services between Britain and the United States called on Monday for the countries' governments to relax COVID-19 restrictions to reopen travel routes between the two countries. The push for reopening trans-Atlantic routes on Monday comes ahead of meetings between U.S. President Joe Biden and British Prime Minister Boris Johnson at the G7 meeting of advanced economies later this week in Cornwall, southwest England, this week.
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After more than a year of restrictions, the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O said high vaccination rates in both countries meant travel could restart safely. LONDON, June 7 (Reuters) - The bosses of all airlines flying passenger services between Britain and the United States called on Monday for the countries' governments to relax COVID-19 restrictions to reopen travel routes between the two countries. The push for reopening trans-Atlantic routes on Monday comes ahead of meetings between U.S. President Joe Biden and British Prime Minister Boris Johnson at the G7 meeting of advanced economies later this week in Cornwall, southwest England, this week.
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4423.0
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2021-06-07 00:00:00 UTC
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S.Africa coal miner Thungela valued at $253 mln after Anglo spin-off
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AAL
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https://www.nasdaq.com/articles/s.africa-coal-miner-thungela-valued-at-%24253-mln-after-anglo-spin-off-2021-06-07
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Adds detail, analyst comment
JOHANNESBURG, June 7 (Reuters) - South Africa's Thungela Resources TGAJ.J, which was spun off from Anglo American AAL.L, is valued at roughly 3.4 billion rand ($253 million) after listing on the Johannesburg Stock Exchange on Monday in a test of investor appetite for coal miners.
Thermal coal miners have been struggling to find investor favour amid growing climate concerns and a shift towards sustainable investing, with global mining giants offloading such assets as they transition out of the most polluting fossil fuels.
At market open the 136 million shares in Thungela, meaning 'to ignite' in isiZulu, were priced at 25.00 rand per share after the newly formed company listed in Johannesburg with a secondary listing on the London Stock Exchange.
The demerger gave ownership to existing owners with investors receiving 1 Thungela share for every 10 Anglo American shares they hold.
"Institutional investors have been moving away from coal mining in recent years. Investors now require many funds to avoid polluting assets such as coal miners making it difficult to find large cornerstone investors," said analyst John Meyer of SP Angel.
"The performance of Thungela shares will give us a clue as to how influential ESG is in terms of stock market investment," Meyer said.
"People who own Anglo American itself and were given these shares probably don't want them. I think over the next few weeks there will be more selling pressure on the stock," said Greg Davies, a trader at Cratos Capital.
Anglo American spun off its South African thermal coal mines joining the world’s largest mining company BHP Group BHP.AX, Australia's South32 and global miner Rio Tinto RIO.L in taking steps to go thermal coal free.
Despite calls to exit thermal coal, countries such as China and South Africa, which derive a majority of their power from coal, have plans for more coal-fired power stations.
"Our conviction is that thermal coal remains part of the energy mix for decades to come," Thungela CEO July Ndlovu said during the listing presentation.
Coal futures at $108 per tonne are up around 32% from a year ago, amid an economic rebound from the coronavirus pandemic and strong demand from China.
($1 = 13.4490 rand)
(Reporting by Tanisha Heiberg; editing by Jason Neely)
((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.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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Adds detail, analyst comment JOHANNESBURG, June 7 (Reuters) - South Africa's Thungela Resources TGAJ.J, which was spun off from Anglo American AAL.L, is valued at roughly 3.4 billion rand ($253 million) after listing on the Johannesburg Stock Exchange on Monday in a test of investor appetite for coal miners. Thermal coal miners have been struggling to find investor favour amid growing climate concerns and a shift towards sustainable investing, with global mining giants offloading such assets as they transition out of the most polluting fossil fuels. "Our conviction is that thermal coal remains part of the energy mix for decades to come," Thungela CEO July Ndlovu said during the listing presentation.
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Adds detail, analyst comment JOHANNESBURG, June 7 (Reuters) - South Africa's Thungela Resources TGAJ.J, which was spun off from Anglo American AAL.L, is valued at roughly 3.4 billion rand ($253 million) after listing on the Johannesburg Stock Exchange on Monday in a test of investor appetite for coal miners. The demerger gave ownership to existing owners with investors receiving 1 Thungela share for every 10 Anglo American shares they hold. Anglo American spun off its South African thermal coal mines joining the world’s largest mining company BHP Group BHP.AX, Australia's South32 and global miner Rio Tinto RIO.L in taking steps to go thermal coal free.
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Adds detail, analyst comment JOHANNESBURG, June 7 (Reuters) - South Africa's Thungela Resources TGAJ.J, which was spun off from Anglo American AAL.L, is valued at roughly 3.4 billion rand ($253 million) after listing on the Johannesburg Stock Exchange on Monday in a test of investor appetite for coal miners. At market open the 136 million shares in Thungela, meaning 'to ignite' in isiZulu, were priced at 25.00 rand per share after the newly formed company listed in Johannesburg with a secondary listing on the London Stock Exchange. Anglo American spun off its South African thermal coal mines joining the world’s largest mining company BHP Group BHP.AX, Australia's South32 and global miner Rio Tinto RIO.L in taking steps to go thermal coal free.
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Adds detail, analyst comment JOHANNESBURG, June 7 (Reuters) - South Africa's Thungela Resources TGAJ.J, which was spun off from Anglo American AAL.L, is valued at roughly 3.4 billion rand ($253 million) after listing on the Johannesburg Stock Exchange on Monday in a test of investor appetite for coal miners. Thermal coal miners have been struggling to find investor favour amid growing climate concerns and a shift towards sustainable investing, with global mining giants offloading such assets as they transition out of the most polluting fossil fuels. At market open the 136 million shares in Thungela, meaning 'to ignite' in isiZulu, were priced at 25.00 rand per share after the newly formed company listed in Johannesburg with a secondary listing on the London Stock Exchange.
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4424.0
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2021-06-07 00:00:00 UTC
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S.African coal miner Thungela valued at $253 million after Anglo spin-off
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AAL
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https://www.nasdaq.com/articles/s.african-coal-miner-thungela-valued-at-%24253-million-after-anglo-spin-off-2021-06-07
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JOHANNESBURG, June 7 (Reuters) - South African miner Thungela Resources TGAJ.J, spun-off from Anglo American's AAL.L thermal coal business, is valued at roughly 3.4 billion rand ($253 million) after listing on the Johannesburg Stock Exchange on Monday.
The JSE priced the 136 million shares at 25.00 rand per share after the newly formed company listed on the Johannesburg and London stock exchange.
The demerger gave ownership to existing owners with investors receiving 1 Thungela share for every 10 Anglo American shares they hold.
($1 = 13.4555 rand)
(Reporting by Tanisha Heiberg Editing by Promit Mukherjee)
((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.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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JOHANNESBURG, June 7 (Reuters) - South African miner Thungela Resources TGAJ.J, spun-off from Anglo American's AAL.L thermal coal business, is valued at roughly 3.4 billion rand ($253 million) after listing on the Johannesburg Stock Exchange on Monday. The JSE priced the 136 million shares at 25.00 rand per share after the newly formed company listed on the Johannesburg and London stock exchange. ($1 = 13.4555 rand) (Reporting by Tanisha Heiberg Editing by Promit Mukherjee) ((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.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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JOHANNESBURG, June 7 (Reuters) - South African miner Thungela Resources TGAJ.J, spun-off from Anglo American's AAL.L thermal coal business, is valued at roughly 3.4 billion rand ($253 million) after listing on the Johannesburg Stock Exchange on Monday. The JSE priced the 136 million shares at 25.00 rand per share after the newly formed company listed on the Johannesburg and London stock exchange. The demerger gave ownership to existing owners with investors receiving 1 Thungela share for every 10 Anglo American shares they hold.
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JOHANNESBURG, June 7 (Reuters) - South African miner Thungela Resources TGAJ.J, spun-off from Anglo American's AAL.L thermal coal business, is valued at roughly 3.4 billion rand ($253 million) after listing on the Johannesburg Stock Exchange on Monday. The JSE priced the 136 million shares at 25.00 rand per share after the newly formed company listed on the Johannesburg and London stock exchange. ($1 = 13.4555 rand) (Reporting by Tanisha Heiberg Editing by Promit Mukherjee) ((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.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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JOHANNESBURG, June 7 (Reuters) - South African miner Thungela Resources TGAJ.J, spun-off from Anglo American's AAL.L thermal coal business, is valued at roughly 3.4 billion rand ($253 million) after listing on the Johannesburg Stock Exchange on Monday. The JSE priced the 136 million shares at 25.00 rand per share after the newly formed company listed on the Johannesburg and London stock exchange. The demerger gave ownership to existing owners with investors receiving 1 Thungela share for every 10 Anglo American shares they hold.
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4425.0
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2021-06-07 00:00:00 UTC
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Pick Boeing Stock Over Northrop Grumman For Near-Term Gains
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AAL
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https://www.nasdaq.com/articles/pick-boeing-stock-over-northrop-grumman-for-near-term-gains-2021-06-07
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nan
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nan
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Northrop Grumman stock (NYSE: NOC) has recovered to pre-Covid levels, while competitor Boeing’s stock (NYSE: BA) remains 30% below its pre-Covid peak. Both companies have a sizable order backlog that can sustain revenues for more than two years. At the same time, multi-year government contracts safeguard long-term shareholder returns for both companies despite the uncertain timeline of macroeconomic recovery. While the U.S. government contributes less to Boeing’s top line than Northrop Grumman’s, we believe that Boeing stock is currently poised for stronger gains in the near term. The primary reason for our belief is the fact that the loss of $55 billion in Boeing’s market capitalization since early last year is unjustifiably more than the company’s $7.5-billion operating cash outflow in 2020 (excluding the impact of an $11 billion increase in inventories). The easing of inventory levels and resumption of MAX production are key triggers for a sizable upside in Boeing stock.
Northrop Grumman is a prominent aerospace & defense company and offers innovative systems and solutions for multiple areas, including space, hypersonics, cyber, communications, surveillance, logistics, etc. Boeing is the leading manufacturer of 100+ seat aircraft for the global commercial airplane industry, with a strong presence in the defense contracting business. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis, BA vs. NOC: Is BA Stock Appropriately Valued Compared to NOC
1. Revenue Growth
Northrop Grumman’s revenues have grown consistently over the last three years at an average rate of 12% per year, from $26 billion in 2017 to $36.8 billion in 2020. On the other hand, Boeing’s top line declined by 24%, from $76.5 billion in 2019 to $58 billion in 2020 due to a slump in travel demand and the grounding of MAX. But we expect Boeing’s Revenues to rebound sharply over the coming years.
Northrop Grumman’s four operating segments, Aeronautics, Defense, Mission, and Space, contribute 32%, 20%, 26%, and 23% of total revenues, respectively. The company’s Aeronautics and Space segments have observed strong growth in recent years driven by manned & autonomous aircraft systems and strategic missile sales, respectively. Notably, the company’s order backlog almost doubled in recent years, from $42 billion in 2017 to $80 billion in 2020, assisted by a rising defense budget and high demand for space systems.
Boeing’s three operating segments, Commercial Airplanes, Defense, and Global Services, contribute 57%, 26%, and 17% of total revenues, respectively. Despite a steep decline in the Commercial Aviation segment due to the grounding of MAX and the pandemic, the Defense & Space segment has been reporting promising numbers over the years. Per recent filings, the company’s order backlog still stands tall at $364 billion.
2. Returns (Profits)
Northrop Grumman and Boeing reported similar operating profit margins in the 10-14% range before the MAX crisis in 2019. Notably, the operating cash flow margin has also been similar – indicating an equal prowess of returning capital to shareholders.
In 2020, Northrop Grumman’s four operating segments, Aeronautics, Defense, Mission, and Space, reported an operating margin of 10%, 11%, 14%, and 10%, respectively. The company’s Aeronautics and Mission segments have been key earnings drivers over the years.
Before the MAX crisis, Boeing’s three operating segments, Commercial Airplanes, Defense, and Global Services, reported an operating margin of 14%, 7%, and 15%, respectively. Due to the suspension of MAX’s production, the Defense segment has been supporting earnings for the last two years.
3. Risk
Per annual filings, Northrop Grumman and Boeing reported $14 billion and $62 billion of long-term debt, respectively. The 450-plane inventory on Boeing’s balance sheet has been key to the surge in its long-term debt from $20 billion in 2019 to $62 billion in 2020.
Revenue expansion has assisted regular operating cash generation, dividend payouts, and share repurchases by Northrop Grumman.
Since 2018, Northrop Grumman’s dividend per share has increased by 20% – highlighting a strong focus on capital return to shareholders.
Additionally, NOC stock has a lower downside risk than Boeing as the U.S. government contributes around 85% of the company’s top line.
Notably, Boeing’s inventories observed a $20 billion jump from $62.5 billion in 2018 to $82 billion in 2020. As the balance sheet holds $25 billion of cash and short-term investments, a major portion of the $62 billion long-term debt is due to high inventory levels.
Is there a better pick over Boeing in the defense contracting business? Boeing Stock Comparison With Peers summarizes how BA compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Northrop Grumman is a prominent aerospace & defense company and offers innovative systems and solutions for multiple areas, including space, hypersonics, cyber, communications, surveillance, logistics, etc. Boeing is the leading manufacturer of 100+ seat aircraft for the global commercial airplane industry, with a strong presence in the defense contracting business. The company’s Aeronautics and Space segments have observed strong growth in recent years driven by manned & autonomous aircraft systems and strategic missile sales, respectively.
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Returns (Profits) Northrop Grumman and Boeing reported similar operating profit margins in the 10-14% range before the MAX crisis in 2019. In 2020, Northrop Grumman’s four operating segments, Aeronautics, Defense, Mission, and Space, reported an operating margin of 10%, 11%, 14%, and 10%, respectively. Before the MAX crisis, Boeing’s three operating segments, Commercial Airplanes, Defense, and Global Services, reported an operating margin of 14%, 7%, and 15%, respectively.
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The primary reason for our belief is the fact that the loss of $55 billion in Boeing’s market capitalization since early last year is unjustifiably more than the company’s $7.5-billion operating cash outflow in 2020 (excluding the impact of an $11 billion increase in inventories). Revenue Growth Northrop Grumman’s revenues have grown consistently over the last three years at an average rate of 12% per year, from $26 billion in 2017 to $36.8 billion in 2020. Risk Per annual filings, Northrop Grumman and Boeing reported $14 billion and $62 billion of long-term debt, respectively.
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Revenue Growth Northrop Grumman’s revenues have grown consistently over the last three years at an average rate of 12% per year, from $26 billion in 2017 to $36.8 billion in 2020. Northrop Grumman’s four operating segments, Aeronautics, Defense, Mission, and Space, contribute 32%, 20%, 26%, and 23% of total revenues, respectively. In 2020, Northrop Grumman’s four operating segments, Aeronautics, Defense, Mission, and Space, reported an operating margin of 10%, 11%, 14%, and 10%, respectively.
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4426.0
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2021-06-05 00:00:00 UTC
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American Airlines Group Inc.'s (NASDAQ:AAL) Intrinsic Value Is Potentially 68% Above Its Share Price
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc.s-nasdaq%3Aaal-intrinsic-value-is-potentially-68-above-its-share
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nan
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nan
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Today we will run through one way of estimating the intrinsic value of American Airlines Group Inc. (NASDAQ:AAL) by projecting its future cash flows and then discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex.
We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.
Is American Airlines Group fairly valued?
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
10-year free cash flow (FCF) forecast
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Levered FCF ($, Millions) -US$2.14b US$380.3m US$2.47b US$3.54b US$3.55b US$3.58b US$3.63b US$3.68b US$3.74b US$3.80b
Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x5 Analyst x2 Analyst x1 Est @ 0.82% Est @ 1.17% Est @ 1.42% Est @ 1.59% Est @ 1.71%
Present Value ($, Millions) Discounted @ 11% -US$1.9k US$306 US$1.8k US$2.3k US$2.1k US$1.9k US$1.7k US$1.5k US$1.4k US$1.3k
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$12b
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.0%. We discount the terminal cash flows to today's value at a cost of equity of 11%.
Terminal Value (TV)= FCF2030 × (1 + g) ÷ (r – g) = US$3.8b× (1 + 2.0%) ÷ (11%– 2.0%) = US$41b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$41b÷ ( 1 + 11%)10= US$14b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$26b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of US$24.3, the company appears quite good value at a 41% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
NasdaqGS:AAL Discounted Cash Flow June 5th 2021
The assumptions
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at American Airlines Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 11%, which is based on a levered beta of 2.000. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Moving On:
Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Can we work out why the company is trading at a discount to intrinsic value? For American Airlines Group, we've put together three fundamental items you should further research:
Risks: As an example, we've found 3 warning signs for American Airlines Group that you need to consider before investing here.
Future Earnings: How does AAL's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Future Earnings: How does AAL's growth rate compare to its peers and the wider market? Today we will run through one way of estimating the intrinsic value of American Airlines Group Inc. (NASDAQ:AAL) by projecting its future cash flows and then discounting them to today's value. NasdaqGS:AAL Discounted Cash Flow June 5th 2021 The assumptions The calculation above is very dependent on two assumptions.
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Today we will run through one way of estimating the intrinsic value of American Airlines Group Inc. (NASDAQ:AAL) by projecting its future cash flows and then discounting them to today's value. NasdaqGS:AAL Discounted Cash Flow June 5th 2021 The assumptions The calculation above is very dependent on two assumptions. Future Earnings: How does AAL's growth rate compare to its peers and the wider market?
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Today we will run through one way of estimating the intrinsic value of American Airlines Group Inc. (NASDAQ:AAL) by projecting its future cash flows and then discounting them to today's value. NasdaqGS:AAL Discounted Cash Flow June 5th 2021 The assumptions The calculation above is very dependent on two assumptions. Future Earnings: How does AAL's growth rate compare to its peers and the wider market?
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Today we will run through one way of estimating the intrinsic value of American Airlines Group Inc. (NASDAQ:AAL) by projecting its future cash flows and then discounting them to today's value. NasdaqGS:AAL Discounted Cash Flow June 5th 2021 The assumptions The calculation above is very dependent on two assumptions. Future Earnings: How does AAL's growth rate compare to its peers and the wider market?
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4427.0
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2021-06-04 00:00:00 UTC
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Airlines press U.S. on refusal to lift COVID-19 travel restrictions
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AAL
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https://www.nasdaq.com/articles/airlines-press-u.s.-on-refusal-to-lift-covid-19-travel-restrictions-2021-06-04
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nan
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By David Shepardson
ARLINGTON, Va., June 4 (Reuters) - Major airlines are pressing the United States government on its decision not to move quickly to relax COVID-19 restrictions that block travelers who have been in much of Europe and elsewhere even as other countries began to ease prohibitions.
On Monday, the heads of several major airlines as well as the chief executives of Heathrow Airport and industry group the U.S. Travel Association will hold a virtual news conference to push for removal of travel restrictions between the United States and the United Kingdom. On hand will be the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O.
The airline CEOs on May 11 had called for a summit between U.S. officials, UK officials, and airlines to discuss how to "expeditiously reopen transatlantic travel."
Since March 2020, the United States has barred nearly all non-U.S. citizens who have been in the UK within the last 14 days from entering the country. Most U.S. travelers visiting the UK must quarantine for 10 days upon arrival.
Airline and administration officials say no change is expected in the near term but add it is possible the restrictions could be removed as early as July 4 or thereabouts, but they caution no decisions have been made.
On Friday, France said vaccinated Americans starting on June 9 will be able to travel to the country. United said it would resume Paris flights from Washington in July and Delta said it was adding flights to France as well.
At a press event at Washington National Airport on Friday, American Airlines AAL.O President Robert Isom said, "We know there is tremendous pent-up demand for service."
Isom said the airline has "a lot of capacity to be ready to go" for European travel. Asked if July 4 would be too late for European summer travel, Isom said: "We're going to take it whenever it comes."
Airline officials had held out hope earlier that by late May, the United States would have lifted travel restrictions on the United Kingdom and Ireland, where new COVID-19 cases have plummeted. (See graphic, Global vaccination tracker: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/vaccination-rollout-and-access/)
The travel restrictions also apply to most non-U.S. citizens in Brazil, South Africa, India and Iran.
The Biden administration held a call with British officials on Thursday, people briefed on the matter said, but the White House gave no indication it is planning to lift restrictions.
The White House, which is focused on boosting U.S. vaccination rates and reducing COVID-19 cases, declined to comment on Friday.
President Joe Biden is certain to face questions about the issue from foreign leaders when he travels to Europe next week.
"We certainly understand the desire of many Europeans to come to travel the United States and vice versa," White House spokeswoman Jen Psaki said May 21. "We can't respond to public pressure or even emotion. We have to rely on the guidance of our health and medical experts."
Graphic-Global vaccination trackerhttps://graphics.reuters.com/world-coronavirus-tracker-and-maps/vaccination-rollout-and-access/
Graphic-COVID-19 global trackerhttps://tmsnrt.rs/34pvUyi
FACTBOX-Countries weigh 'mix and match' COVID-19 vaccines
(Reporting by David Shepardson in Washington Editing by Matthew Lewis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On hand will be the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O. At a press event at Washington National Airport on Friday, American Airlines AAL.O President Robert Isom said, "We know there is tremendous pent-up demand for service." By David Shepardson ARLINGTON, Va., June 4 (Reuters) - Major airlines are pressing the United States government on its decision not to move quickly to relax COVID-19 restrictions that block travelers who have been in much of Europe and elsewhere even as other countries began to ease prohibitions.
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On hand will be the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O. At a press event at Washington National Airport on Friday, American Airlines AAL.O President Robert Isom said, "We know there is tremendous pent-up demand for service." By David Shepardson ARLINGTON, Va., June 4 (Reuters) - Major airlines are pressing the United States government on its decision not to move quickly to relax COVID-19 restrictions that block travelers who have been in much of Europe and elsewhere even as other countries began to ease prohibitions.
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On hand will be the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O. At a press event at Washington National Airport on Friday, American Airlines AAL.O President Robert Isom said, "We know there is tremendous pent-up demand for service." By David Shepardson ARLINGTON, Va., June 4 (Reuters) - Major airlines are pressing the United States government on its decision not to move quickly to relax COVID-19 restrictions that block travelers who have been in much of Europe and elsewhere even as other countries began to ease prohibitions.
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On hand will be the CEOs of American Airlines AAL.O, IAG ICAG.L unit British Airways, Delta Air Lines DAL.N, United Airlines UAL.O and JetBlue Airways Corp JBLU.O. At a press event at Washington National Airport on Friday, American Airlines AAL.O President Robert Isom said, "We know there is tremendous pent-up demand for service." The airline CEOs on May 11 had called for a summit between U.S. officials, UK officials, and airlines to discuss how to "expeditiously reopen transatlantic travel."
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4428.0
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2021-06-04 00:00:00 UTC
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Is Now The Time to Buy Affirm?
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AAL
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https://www.nasdaq.com/articles/is-now-the-time-to-buy-affirm-2021-06-04
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nan
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nan
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Affirm Holdings (NASDAQ: AFRM) posted a $247 million net loss in its latest quarter. Since going public on Jan. 13, its stock has fallen 31%. Investors have expressed concern about the fintech company's reliance on Peloton Interactive for a big chunk of revenue, and Affirm has in fact estimated that Peloton's voluntary treadmill recall will cost it millions in potential losses.
Despite this, I think things are looking up for Affirm. The buy-now-pay-later specialist is working toward diversifying its income streams, and its partnership with Shopify should give it a big boost in the coming quarters. Not only that, but the company stands to benefit from the reopening of the economy; many of its travel-industry partners are already seeing increased bookings.
With all this good news, is now the time to buy Affirm?
A large loss in the quarter, but positive signs emerge
In the quarter that ended March 31 (the third quarter of its fiscal 2021), Affirm saw gross merchandise volume (GMV) of $2.3 billion, up 83% from last year. GMV is the total dollar amount of all transactions on the Affirm platform, and is one of the key operating metrics it tracks. Revenue came in at $230 million as a result, up 66.8% from last year. However, operating expenses outpaced revenue growth, increasing 82.1% from last year, resulting in a $247 million loss for the quarter.
The increased operating loss was due largely to $140 million in stock-based compensation following the company's IPO, as well as a $78.5 million adjustment to the fair value of the liability associated with its acquisition of PayBright.
One bright spot in the quarter is that travel was on the rebound. GMV growth in pent-up categories like travel and ticketing grew more than 50% compared to last year. CFO Michael Linford pointed out that travel-related expenses accounted for 11% of Affirm's GMV in the month of April after accounting for just 2% of its GMV in September last year.
Image source: Getty Images.
Affirm is in a good position to benefit as travel becomes more commonplace, thanks to its partnerships with Priceline, Expedia, American Airlines, and VRBO. Priceline has said that the partnership allows its customers to book with greater confidence, and that it has reached more millennial and Generation Z customers as a result of its flexible payments options.
A partnership with Shopify should springboard growth
One valid criticism of Affirm has been its heavy reliance on Peloton for revenue. In the first nine months of Affirm's fiscal 2021, Peloton accounted for 31% of its total revenue. In the most recent quarter, Affirm saw 20% of its total revenue come from Peloton.
During the quarter, Affirm's earnings included a $3.5 million reduction in total revenue related to the estimated financial impact to Affirm due to Peloton's voluntary recall on its Tread and Tread+ products. Concerns about the safety of the product, which resulted in injuries in children, led Peloton to issue a recall on May 5, offering full refunds in what could cost Peloton $165 million.
Affirm's heavy reliance on Peloton has been a concern, and the company is taking steps to diversify its income sources. One key way it has done so is by partnering with Shopify -- and this is the part of Affirm's story that intrigues me the most.
Affirm partnered with Shopify last July, offering Shop Pay installment options for customers. In February, it had 100 merchants participating in its pilot program, and over 12,500 merchants have gone live with the product as of May. Shopify chose Affirm as a partner because of its speed at converting customers and its ability to offer a scalable payment solution that can keep up with the growth of the Shopify platform.
The company says these payment options will be available to the general population of merchants on Shopify by the end of June, which will significantly expand its merchant base. This is huge for Affirm, as Shopify powers 1.7 million businesses across 175 countries and accounts for 8.6% of e-commerce sales, second to Amazon and ahead of Walmart and eBay. Shopify has grown rapidly, and the COVID-19 pandemic only accelerated its growth. In its first-quarter earnings, Shopify saw revenue of $989 million, up 110% from the same quarter last year, and GMV of $37.3 billion, up 114% from last year.
The partnership with Shopify should be a great one for Affirm, and it has me optimistic about the company's prospects. Shopify posts a GMV that is 16 times that of Affirm, and if Affirm can grab a fraction of this GMV with its payment solution, that would certainly boost its future earnings.
The addition of Returnly could increase sales too
Affirm has expanded its platform in another way by acquiring Returnly, a tech company focused on making returns seamless for customers and merchants. Returnly says it is "the only return solution that lets customers get the right item before returning the wrong one."
Affirm CEO Max Levchin said that the company saw an opportunity, saying Returnly "picks up where Affirm leaves off." Affirm has the front end of transactions down, providing installment options for customers. But when customers would return an item, Affirm would wait until the merchant restocked and refunded the transaction. Returnly allows Affirm to give trusted customers flexibility to shop with its installment options before they box up and return the item.
Affirm ultimately hopes that this accelerates transactions and helps merchants sell inventory quicker. The acquisition of Returnly could be another key piece to Affirm's growth as it works alongside Shopify and other major platforms.
What to expect going forward
Affirm provided guidance for its upcoming fourth quarter, expecting GMV of $2.20 billion to $2.25 billion and revenue of $215 million to $225 million. It expects to see a smaller operating loss of $50 million to $55 million.
This has some analysts optimistic about Affirm, with Bank of America securities analyst Jason Kupferberg giving the company a buy rating with a price target of $71, a roughly 15% gain from here. If the company's partnership with Shopify pays off, there's no reason Affirm couldn't blow past that price target. The stock is 56% off its high, and I think at this price it's not a bad time to start a position.
10 stocks we like better than Affirm Holdings, Inc.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Courtney Carlsen owns shares of Amazon and eBay. The Motley Fool owns shares of and recommends Amazon and Peloton Interactive. The Motley Fool recommends eBay and recommends the following options: long January 2022 $1,920 calls on Amazon, short January 2022 $1,940 calls on Amazon, and short June 2021 $65 calls on eBay. 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 buy-now-pay-later specialist is working toward diversifying its income streams, and its partnership with Shopify should give it a big boost in the coming quarters. Affirm is in a good position to benefit as travel becomes more commonplace, thanks to its partnerships with Priceline, Expedia, American Airlines, and VRBO. This is huge for Affirm, as Shopify powers 1.7 million businesses across 175 countries and accounts for 8.6% of e-commerce sales, second to Amazon and ahead of Walmart and eBay.
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Investors have expressed concern about the fintech company's reliance on Peloton Interactive for a big chunk of revenue, and Affirm has in fact estimated that Peloton's voluntary treadmill recall will cost it millions in potential losses. During the quarter, Affirm's earnings included a $3.5 million reduction in total revenue related to the estimated financial impact to Affirm due to Peloton's voluntary recall on its Tread and Tread+ products. The Motley Fool recommends eBay and recommends the following options: long January 2022 $1,920 calls on Amazon, short January 2022 $1,940 calls on Amazon, and short June 2021 $65 calls on eBay.
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Investors have expressed concern about the fintech company's reliance on Peloton Interactive for a big chunk of revenue, and Affirm has in fact estimated that Peloton's voluntary treadmill recall will cost it millions in potential losses. During the quarter, Affirm's earnings included a $3.5 million reduction in total revenue related to the estimated financial impact to Affirm due to Peloton's voluntary recall on its Tread and Tread+ products. Shopify posts a GMV that is 16 times that of Affirm, and if Affirm can grab a fraction of this GMV with its payment solution, that would certainly boost its future earnings.
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Revenue came in at $230 million as a result, up 66.8% from last year. However, operating expenses outpaced revenue growth, increasing 82.1% from last year, resulting in a $247 million loss for the quarter. That's right -- they think these 10 stocks are even better buys.
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4429.0
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2021-06-03 00:00:00 UTC
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Workers again block rail line supplying Colombia coal miner Cerrejon
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AAL
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https://www.nasdaq.com/articles/workers-again-block-rail-line-supplying-colombia-coal-miner-cerrejon-2021-06-03
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nan
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nan
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BOGOTA, June 3 (Reuters) - Former workers have again blocked Colombian coal miner Cerrejon's rail line, the company said on Thursday, the latest protest to recently affect the beleaguered miner's operations.
Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, has had repeated disagreements with nearby Wayuu indigenous communities and its largest union, which held a three-month strike last year.
The company in late May declared force majeure and halted operations because of two blockades which prevented it from bringing in supplies of gasoline. One was mounted by former workers upset by recent job cuts and another by members of a nearby indigenous community which has made repeated environmental complaints about Cerrejon.
The company and the government had conversations with ex-workers blocking the company rail line and the Media Luna community, which was barricading a road out of Cerrejon's port. They made deals late last week to lift blockades and on Saturday Cerrejon said it would gradually restart operations.
But the group of former employees, who left the company in February, has once again blocked the line, Cerrejon said.
"The company asks the authorities for their immediate intervention in the face of the illegal blockades and actions which put in danger the employment stability of more than 9,000 families," Cerrejon said in a statement.
It said it is willing to hold further talks with workers, but not under the pressure of illegal barricades.
It said the workers let go were given more generous benefits than those required by law, but did not accept them. It said it told them they will not be rehired.
Cerrejon produced 12.4 million tonnes of coal in 2020, down almost 52% from 2019, and its exports fell to their lowest level in the past 18 years amid coronavirus restrictions and falling global demand for coal.
(Reporting by Julia Symmes Cobb; Editing by David Gregorio)
((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, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, has had repeated disagreements with nearby Wayuu indigenous communities and its largest union, which held a three-month strike last year. The company in late May declared force majeure and halted operations because of two blockades which prevented it from bringing in supplies of gasoline. One was mounted by former workers upset by recent job cuts and another by members of a nearby indigenous community which has made repeated environmental complaints about Cerrejon.
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Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, has had repeated disagreements with nearby Wayuu indigenous communities and its largest union, which held a three-month strike last year. BOGOTA, June 3 (Reuters) - Former workers have again blocked Colombian coal miner Cerrejon's rail line, the company said on Thursday, the latest protest to recently affect the beleaguered miner's operations. One was mounted by former workers upset by recent job cuts and another by members of a nearby indigenous community which has made repeated environmental complaints about Cerrejon.
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Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, has had repeated disagreements with nearby Wayuu indigenous communities and its largest union, which held a three-month strike last year. BOGOTA, June 3 (Reuters) - Former workers have again blocked Colombian coal miner Cerrejon's rail line, the company said on Thursday, the latest protest to recently affect the beleaguered miner's operations. The company and the government had conversations with ex-workers blocking the company rail line and the Media Luna community, which was barricading a road out of Cerrejon's port.
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Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, has had repeated disagreements with nearby Wayuu indigenous communities and its largest union, which held a three-month strike last year. BOGOTA, June 3 (Reuters) - Former workers have again blocked Colombian coal miner Cerrejon's rail line, the company said on Thursday, the latest protest to recently affect the beleaguered miner's operations. The company in late May declared force majeure and halted operations because of two blockades which prevented it from bringing in supplies of gasoline.
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4430.0
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2021-06-03 00:00:00 UTC
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AAL July 23rd Options Begin Trading
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AAL
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https://www.nasdaq.com/articles/aal-july-23rd-options-begin-trading-2021-06-03
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 23rd contracts and identified one put and one call contract of particular interest.
The put contract at the $24.50 strike price has a current bid of 88 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $24.50, but will also collect the premium, putting the cost basis of the shares at $23.62 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $25.36/share today.
Because the $24.50 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.59% return on the cash commitment, or 26.22% 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 $24.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $27.00 strike price has a current bid of 67 cents. If an investor was to purchase shares of AAL stock at the current price level of $25.36/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $27.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.11% if the stock gets called away at the July 23rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $27.00 strike highlighted in red:
Considering the fact that the $27.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.64% boost of extra return to the investor, or 19.29% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $25.36) to be 65%. 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 $27.00 strike highlighted in red: Considering the fact that the $27.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 23rd expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $27.00 strike highlighted in red: Considering the fact that the $27.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 23rd contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $27.00 strike highlighted in red: Considering the fact that the $27.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 23rd contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $27.00 strike highlighted in red: Considering the fact that the $27.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 23rd contracts and identified one put and one call contract of particular interest.
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4431.0
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2021-06-03 00:00:00 UTC
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American Airlines Backs Q2 System Capacity, Revenue Growth Outlook - Quick Facts
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AAL
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https://www.nasdaq.com/articles/american-airlines-backs-q2-system-capacity-revenue-growth-outlook-quick-facts-2021-06-03
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nan
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) on Thursday revealed in a Form 8-K filling that its continues to expect second quarter system capacity (total available seat miles) to be down 20% to 25% and total revenue to be down approximately 40% from last year.
Amid strong summer bookings, the Company generated cash for the month of May and expects to end the second quarter with more than $20 billion of total liquidity, compared to the previous guidance of $19.5 billion.
The Company said it has experienced continued strength in net bookings and load factors, with current seven day moving average of its net bookings at approximately 90% of the level experienced in the same period of 2019.
The Company presently expects this strength in bookings to continue through the end of the second quarter and into the third quarter.
In addition, the Company's domestic load factor for the month of May was approximately 84% and greater than 88% over the Memorial Day holiday.
The Company said it is starting to see increased demand among small and medium sized enterprises and certain large corporate customers, despite business demand continuing to be weak.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) on Thursday revealed in a Form 8-K filling that its continues to expect second quarter system capacity (total available seat miles) to be down 20% to 25% and total revenue to be down approximately 40% from last year. The Company said it has experienced continued strength in net bookings and load factors, with current seven day moving average of its net bookings at approximately 90% of the level experienced in the same period of 2019. In addition, the Company's domestic load factor for the month of May was approximately 84% and greater than 88% over the Memorial Day holiday.
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(RTTNews) - American Airlines Group Inc. (AAL) on Thursday revealed in a Form 8-K filling that its continues to expect second quarter system capacity (total available seat miles) to be down 20% to 25% and total revenue to be down approximately 40% from last year. The Company said it has experienced continued strength in net bookings and load factors, with current seven day moving average of its net bookings at approximately 90% of the level experienced in the same period of 2019. The Company presently expects this strength in bookings to continue through the end of the second quarter and into the third quarter.
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(RTTNews) - American Airlines Group Inc. (AAL) on Thursday revealed in a Form 8-K filling that its continues to expect second quarter system capacity (total available seat miles) to be down 20% to 25% and total revenue to be down approximately 40% from last year. Amid strong summer bookings, the Company generated cash for the month of May and expects to end the second quarter with more than $20 billion of total liquidity, compared to the previous guidance of $19.5 billion. The Company said it has experienced continued strength in net bookings and load factors, with current seven day moving average of its net bookings at approximately 90% of the level experienced in the same period of 2019.
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(RTTNews) - American Airlines Group Inc. (AAL) on Thursday revealed in a Form 8-K filling that its continues to expect second quarter system capacity (total available seat miles) to be down 20% to 25% and total revenue to be down approximately 40% from last year. The Company said it has experienced continued strength in net bookings and load factors, with current seven day moving average of its net bookings at approximately 90% of the level experienced in the same period of 2019. The Company presently expects this strength in bookings to continue through the end of the second quarter and into the third quarter.
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4432.0
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2021-06-03 00:00:00 UTC
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Pre-Market Most Active for Jun 3, 2021 : AMC, BB, NOK, GTT, SQQQ, EXPR, TLRY, CLOV, AHT, QQQ, AAL, TQQQ
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-jun-3-2021-%3A-amc-bb-nok-gtt-sqqq-expr-tlry-clov-aht-qqq-aal
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -114.36 to 13,561.43. The total Pre-Market volume is currently 26,728,596 shares traded.
The following are the most active stocks for the pre-market session:
AMC Entertainment Holdings, Inc. (AMC) is -3.95 at $58.60, with 32,479,831 shares traded., following a 52-week high recorded in prior regular session.
BlackBerry Limited (BB) is +2.13 at $17.38, with 30,377,599 shares traded. BB's current last sale is 231.73% of the target price of $7.5.
Nokia Corporation (NOK) is +0.06 at $5.51, with 4,954,181 shares traded. NOK's current last sale is 96.67% of the target price of $5.7.
GTT Communications, Inc. (GTT) is +0.6 at $3.10, with 4,784,960 shares traded.GTT is scheduled to provide an earnings report on 6/4/2021, for the fiscal quarter ending Mar2021. The consensus earnings per share forecast is -0.37 per share, which represents a -79 percent increase over the EPS one Year Ago
ProShares UltraPro Short QQQ (SQQQ) is +0.35 at $11.47, with 4,036,403 shares traded. This represents a 9.87% increase from its 52 Week Low.
Express, Inc. (EXPR) is -0.82 at $5.69, with 3,273,163 shares traded. EXPR's current last sale is 162.57% of the target price of $3.5.
Tilray, Inc. (TLRY) is +0.62 at $19.62, with 2,761,965 shares traded. TLRY's current last sale is 98.1% of the target price of $20.
Clover Health Investments, Corp. (CLOV) is +0.56 at $9.30, with 2,267,933 shares traded. CLOV's current last sale is 62% of the target price of $15.001.
Ashford Hospitality Trust Inc (AHT) is +0.06 at $5.67, with 1,824,667 shares traded. AHT's current last sale is 189% of the target price of $3.
Invesco QQQ Trust, Series 1 (QQQ) is -3.51 at $329.96, with 1,063,190 shares traded. This represents a 42.55% increase from its 52 Week Low.
American Airlines Group, Inc. (AAL) is -0.44 at $25.38, with 820,422 shares traded. AAL's current last sale is 158.63% of the target price of $16.
ProShares UltraPro QQQ (TQQQ) is -3.2 at $98.92, with 783,689 shares traded. This represents a 147.11% increase from its 52 Week Low.
The views and 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 -0.44 at $25.38, with 820,422 shares traded. AAL's current last sale is 158.63% of the target price of $16. The total Pre-Market volume is currently 26,728,596 shares traded.
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American Airlines Group, Inc. (AAL) is -0.44 at $25.38, with 820,422 shares traded. AAL's current last sale is 158.63% of the target price of $16. BB's current last sale is 231.73% of the target price of $7.5.
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American Airlines Group, Inc. (AAL) is -0.44 at $25.38, with 820,422 shares traded. AAL's current last sale is 158.63% of the target price of $16. The total Pre-Market volume is currently 26,728,596 shares traded.
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American Airlines Group, Inc. (AAL) is -0.44 at $25.38, with 820,422 shares traded. AAL's current last sale is 158.63% of the target price of $16. BB's current last sale is 231.73% of the target price of $7.5.
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4433.0
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2021-06-02 00:00:00 UTC
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American Airlines Launches Self-administered Covid-19 Home Test For International Travel
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AAL
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https://www.nasdaq.com/articles/american-airlines-launches-self-administered-covid-19-home-test-for-international-travel
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nan
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nan
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(RTTNews) - The covid-19 vaccination program has been reaping its benefits in the country as states are slowly lifting their mask mandates and businesses are getting back into full operation. On Tuesday, American Airlines Group Inc., (AAL) announced took the post-covid experience a step ahead by expanding its pre-flight coronavirus testing program by offering a 15-minute self-administered testing kit via eMed for international flight passengers to the United States.
The customers can order an Abbott BinaxNOW Home Test via eMed and get tested 72 hours before their flight to the States. "We want customers to focus on planning their trip to reconnect with family or unwind after more than a year at home, without the added stress of figuring out where and how they will get the right test," said Julie Rath, Vice President of Customer Experience at American.
Individuals can order six Home Tests for $150, which includes the cost of a certified guide to walk the buyer through the process. The result will be automatically added to Abbott's NAVICA app for the user.
American has also partnered with CareNow and the customers will be able to schedule a test at one of the 160 CareNow locations depending on their destination.
Users of the VeriFly app can also opt for an easy check-in by entering their origin, destination, and other necessary documents, and the app will run it through the system to check if it matches with the guidelines of the concerned countries to show a pass or failed message.
The views and 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 Tuesday, American Airlines Group Inc., (AAL) announced took the post-covid experience a step ahead by expanding its pre-flight coronavirus testing program by offering a 15-minute self-administered testing kit via eMed for international flight passengers to the United States. (RTTNews) - The covid-19 vaccination program has been reaping its benefits in the country as states are slowly lifting their mask mandates and businesses are getting back into full operation. Individuals can order six Home Tests for $150, which includes the cost of a certified guide to walk the buyer through the process.
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On Tuesday, American Airlines Group Inc., (AAL) announced took the post-covid experience a step ahead by expanding its pre-flight coronavirus testing program by offering a 15-minute self-administered testing kit via eMed for international flight passengers to the United States. The customers can order an Abbott BinaxNOW Home Test via eMed and get tested 72 hours before their flight to the States. "We want customers to focus on planning their trip to reconnect with family or unwind after more than a year at home, without the added stress of figuring out where and how they will get the right test," said Julie Rath, Vice President of Customer Experience at American.
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On Tuesday, American Airlines Group Inc., (AAL) announced took the post-covid experience a step ahead by expanding its pre-flight coronavirus testing program by offering a 15-minute self-administered testing kit via eMed for international flight passengers to the United States. The customers can order an Abbott BinaxNOW Home Test via eMed and get tested 72 hours before their flight to the States. "We want customers to focus on planning their trip to reconnect with family or unwind after more than a year at home, without the added stress of figuring out where and how they will get the right test," said Julie Rath, Vice President of Customer Experience at American.
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On Tuesday, American Airlines Group Inc., (AAL) announced took the post-covid experience a step ahead by expanding its pre-flight coronavirus testing program by offering a 15-minute self-administered testing kit via eMed for international flight passengers to the United States. (RTTNews) - The covid-19 vaccination program has been reaping its benefits in the country as states are slowly lifting their mask mandates and businesses are getting back into full operation. The customers can order an Abbott BinaxNOW Home Test via eMed and get tested 72 hours before their flight to the States.
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4434.0
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2021-06-02 00:00:00 UTC
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Anglo American flags restarts of Australian metallurgical coal mines
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AAL
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https://www.nasdaq.com/articles/anglo-american-flags-restarts-of-australian-metallurgical-coal-mines-2021-06-02
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nan
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nan
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Adds detail on coal mines, production
MELBOURNE, June 3 (Reuters) - Anglo American AAL.L said on Thursday that it has restarted underground mining at its Moranbah North coal mine in northern Queensland state after it withdrew its workforce from the mine following a reading of elevated gases on Feb. 20.
Mining development activities at its Grosvenor mine, in central Queensland's Bowen Basin, have also resumed this week, as part of the mine’s staged restart of underground mining operations following an explosion in May 2020 that critically injured five workers, it said in a statement.
“I would like to thank our workforces at Moranbah North and Grosvenor mines for their patience and dedication in actioning a range of measures to ensure a safe return to mining activities," Chief Executive of Anglo American’s Metallurgical Coal business, Tyler Mitchelson, said.
He said that Anglo would continue with its plans to improve safety via automation and instituting remote working operations.
The two mines accounted for almost half of Anglo American's met coal, or steel-making coal, production in 2019. Grosvenor produced 4.7 million tonnes in 2019. Moranbah North produced 4.43 million tonnes of met coal in 2020, down from 6.15 million tonnes in 2019.
(Reporting by Melanie Burton; Editing by Tom Hogue and Muralikumar Anantharaman)
((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.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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Adds detail on coal mines, production MELBOURNE, June 3 (Reuters) - Anglo American AAL.L said on Thursday that it has restarted underground mining at its Moranbah North coal mine in northern Queensland state after it withdrew its workforce from the mine following a reading of elevated gases on Feb. 20. “I would like to thank our workforces at Moranbah North and Grosvenor mines for their patience and dedication in actioning a range of measures to ensure a safe return to mining activities," Chief Executive of Anglo American’s Metallurgical Coal business, Tyler Mitchelson, said. He said that Anglo would continue with its plans to improve safety via automation and instituting remote working operations.
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Adds detail on coal mines, production MELBOURNE, June 3 (Reuters) - Anglo American AAL.L said on Thursday that it has restarted underground mining at its Moranbah North coal mine in northern Queensland state after it withdrew its workforce from the mine following a reading of elevated gases on Feb. 20. The two mines accounted for almost half of Anglo American's met coal, or steel-making coal, production in 2019. Moranbah North produced 4.43 million tonnes of met coal in 2020, down from 6.15 million tonnes in 2019.
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Adds detail on coal mines, production MELBOURNE, June 3 (Reuters) - Anglo American AAL.L said on Thursday that it has restarted underground mining at its Moranbah North coal mine in northern Queensland state after it withdrew its workforce from the mine following a reading of elevated gases on Feb. 20. Mining development activities at its Grosvenor mine, in central Queensland's Bowen Basin, have also resumed this week, as part of the mine’s staged restart of underground mining operations following an explosion in May 2020 that critically injured five workers, it said in a statement. “I would like to thank our workforces at Moranbah North and Grosvenor mines for their patience and dedication in actioning a range of measures to ensure a safe return to mining activities," Chief Executive of Anglo American’s Metallurgical Coal business, Tyler Mitchelson, said.
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Adds detail on coal mines, production MELBOURNE, June 3 (Reuters) - Anglo American AAL.L said on Thursday that it has restarted underground mining at its Moranbah North coal mine in northern Queensland state after it withdrew its workforce from the mine following a reading of elevated gases on Feb. 20. He said that Anglo would continue with its plans to improve safety via automation and instituting remote working operations. Moranbah North produced 4.43 million tonnes of met coal in 2020, down from 6.15 million tonnes in 2019.
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4435.0
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2021-06-02 00:00:00 UTC
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Should You Consider United Airlines Stock For A Bull Run?
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AAL
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https://www.nasdaq.com/articles/should-you-consider-united-airlines-stock-for-a-bull-run-2021-06-02
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nan
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nan
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In a recent press release, United Airlines (NASDAQ: UAL) revised its second quarter and full year guidance due to an uptick in passenger bookings. The company received another round of payroll support aid (PSP-3) as tepid air travel demand continued to weigh on its finances. Despite a slowdown in the travel industry, consumer spending has been rising for goods & services business over the past few quarters. Notably, the shares of American Express, Mastercard, and Visa are trading at 10-15% above pre-Covid levels. Interestingly, the trend is observed across geographies and led by the United States. Per American Express’ earnings release, billed volumes for goods & services businesses surged by 8% (y-o-y) in the first quarter. We compare United Airlines historical stock performance with Mastercard and American Express to highlight rising consumer spending as a key indicator of an upside in UAL stock, UAL Stock Has 51% Chance Of A Decline Over The Next Month After Rising 6% In The Last 5 Days.
Payment volumes indicate strong spending growth
For the quarter ending in March, Visa and Mastercard reported 9.5% and 9.3% of annual network volume growth, respectively. The U.S. government’s stimulus package has been assisting consumer spending despite a macroeconomic slowdown and widespread job losses. Thus, the shares of payment companies including Visa, Mastercard, American Express, PayPal, and Square have been racing ahead this year. While passenger numbers at TSA checkpoints are 35% below 2019 levels, the high spending growth signals a strong rebound in travel demand as fears of new coronavirus variants are put to rest. Importantly, domestic travel demand is likely to get a boost by next quarter as three-quarters of the U.S. population will get vaccinated, according to Bloomberg.
United stock looks fairly valued, but will investors overlook pandemic losses?
United Airlines stock has lost $7 billion in market capitalization from pre-Covid levels, which is slightly higher than $4 billion of operating cash outflow reported during the same period. The company strengthened its balance sheet with multiple debt and equity offerings to tackle any adverse pandemic scenario. However, the third phase of payroll support program (PSP-3) is a boon during this recovery phase. All airlines are required to suspend dividends and share repurchases until September 2022 and investors can only bet on strong travel demand to realize gains.
Do United’s peers offer better gains? United Airlines Stock Comparison With Peers summarizes how UAL compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a recent press release, United Airlines (NASDAQ: UAL) revised its second quarter and full year guidance due to an uptick in passenger bookings. While passenger numbers at TSA checkpoints are 35% below 2019 levels, the high spending growth signals a strong rebound in travel demand as fears of new coronavirus variants are put to rest. All airlines are required to suspend dividends and share repurchases until September 2022 and investors can only bet on strong travel demand to realize gains.
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We compare United Airlines historical stock performance with Mastercard and American Express to highlight rising consumer spending as a key indicator of an upside in UAL stock, UAL Stock Has 51% Chance Of A Decline Over The Next Month After Rising 6% In The Last 5 Days. Thus, the shares of payment companies including Visa, Mastercard, American Express, PayPal, and Square have been racing ahead this year. United Airlines Stock Comparison With Peers summarizes how UAL compares against peers on metrics that matter.
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We compare United Airlines historical stock performance with Mastercard and American Express to highlight rising consumer spending as a key indicator of an upside in UAL stock, UAL Stock Has 51% Chance Of A Decline Over The Next Month After Rising 6% In The Last 5 Days. Payment volumes indicate strong spending growth For the quarter ending in March, Visa and Mastercard reported 9.5% and 9.3% of annual network volume growth, respectively. United Airlines Stock Comparison With Peers summarizes how UAL compares against peers on metrics that matter.
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Notably, the shares of American Express, Mastercard, and Visa are trading at 10-15% above pre-Covid levels. Payment volumes indicate strong spending growth For the quarter ending in March, Visa and Mastercard reported 9.5% and 9.3% of annual network volume growth, respectively. Do United’s peers offer better gains?
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4436.0
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2021-06-02 00:00:00 UTC
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Anglo American flags Australian coal mine restarts
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AAL
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https://www.nasdaq.com/articles/anglo-american-flags-australian-coal-mine-restarts-2021-06-02
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nan
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nan
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MELBOURNE, June 3 (Reuters) - Anglo American AAL.L said on Thursday that it has restarted longwall mining at its Moranbah North coal mine in northern Australia.
Mining development activities at its Grosvenor mine have also resumed this week, it said in a statement, part of the mine’s staged restart of longwall mining operations after a blast last year that critically injured five workers.
(Reporting by Melanie Burton; Editing by Tom Hogue)
((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.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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MELBOURNE, June 3 (Reuters) - Anglo American AAL.L said on Thursday that it has restarted longwall mining at its Moranbah North coal mine in northern Australia. Mining development activities at its Grosvenor mine have also resumed this week, it said in a statement, part of the mine’s staged restart of longwall mining operations after a blast last year that critically injured five workers. (Reporting by Melanie Burton; Editing by Tom Hogue) ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.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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MELBOURNE, June 3 (Reuters) - Anglo American AAL.L said on Thursday that it has restarted longwall mining at its Moranbah North coal mine in northern Australia. Mining development activities at its Grosvenor mine have also resumed this week, it said in a statement, part of the mine’s staged restart of longwall mining operations after a blast last year that critically injured five workers. (Reporting by Melanie Burton; Editing by Tom Hogue) ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.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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MELBOURNE, June 3 (Reuters) - Anglo American AAL.L said on Thursday that it has restarted longwall mining at its Moranbah North coal mine in northern Australia. Mining development activities at its Grosvenor mine have also resumed this week, it said in a statement, part of the mine’s staged restart of longwall mining operations after a blast last year that critically injured five workers. (Reporting by Melanie Burton; Editing by Tom Hogue) ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.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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MELBOURNE, June 3 (Reuters) - Anglo American AAL.L said on Thursday that it has restarted longwall mining at its Moranbah North coal mine in northern Australia. Mining development activities at its Grosvenor mine have also resumed this week, it said in a statement, part of the mine’s staged restart of longwall mining operations after a blast last year that critically injured five workers. (Reporting by Melanie Burton; Editing by Tom Hogue) ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.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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4437.0
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2021-06-02 00:00:00 UTC
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Chile's Codelco, Escondida copper mines saw production drops in April - Cochilco
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AAL
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https://www.nasdaq.com/articles/chiles-codelco-escondida-copper-mines-saw-production-drops-in-april-cochilco-2021-06-02
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By Fabian Cambero
SANTIAGO, June 2 (Reuters) - Chile's Codelco copper mine's production fell 0.5% year on year to 132,700 tonnes in April, while global miner BHP´s Escondida BHP.AX mine saw a 16.5% drop to 85,700 tonnes, the country´s copper commission Cochilco reported on Wednesday.
Collahuasi copper mine - a joint venture by Glencore GLEN.L and Anglo American AAL.L - meanwhile saw an uptick of 5.4% year-on-year production to 57,000 tonnes in April.
(Reporting by Fabian Cambero, writing by Aislinn Laing)
((Aislinn.Laing@thomsonreuters.com; +56 223704250;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Collahuasi copper mine - a joint venture by Glencore GLEN.L and Anglo American AAL.L - meanwhile saw an uptick of 5.4% year-on-year production to 57,000 tonnes in April. By Fabian Cambero SANTIAGO, June 2 (Reuters) - Chile's Codelco copper mine's production fell 0.5% year on year to 132,700 tonnes in April, while global miner BHP´s Escondida BHP.AX mine saw a 16.5% drop to 85,700 tonnes, the country´s copper commission Cochilco reported on Wednesday. (Reporting by Fabian Cambero, writing by Aislinn Laing) ((Aislinn.Laing@thomsonreuters.com; +56 223704250;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Collahuasi copper mine - a joint venture by Glencore GLEN.L and Anglo American AAL.L - meanwhile saw an uptick of 5.4% year-on-year production to 57,000 tonnes in April. By Fabian Cambero SANTIAGO, June 2 (Reuters) - Chile's Codelco copper mine's production fell 0.5% year on year to 132,700 tonnes in April, while global miner BHP´s Escondida BHP.AX mine saw a 16.5% drop to 85,700 tonnes, the country´s copper commission Cochilco reported on Wednesday. (Reporting by Fabian Cambero, writing by Aislinn Laing) ((Aislinn.Laing@thomsonreuters.com; +56 223704250;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Collahuasi copper mine - a joint venture by Glencore GLEN.L and Anglo American AAL.L - meanwhile saw an uptick of 5.4% year-on-year production to 57,000 tonnes in April. By Fabian Cambero SANTIAGO, June 2 (Reuters) - Chile's Codelco copper mine's production fell 0.5% year on year to 132,700 tonnes in April, while global miner BHP´s Escondida BHP.AX mine saw a 16.5% drop to 85,700 tonnes, the country´s copper commission Cochilco reported on Wednesday. (Reporting by Fabian Cambero, writing by Aislinn Laing) ((Aislinn.Laing@thomsonreuters.com; +56 223704250;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Collahuasi copper mine - a joint venture by Glencore GLEN.L and Anglo American AAL.L - meanwhile saw an uptick of 5.4% year-on-year production to 57,000 tonnes in April. By Fabian Cambero SANTIAGO, June 2 (Reuters) - Chile's Codelco copper mine's production fell 0.5% year on year to 132,700 tonnes in April, while global miner BHP´s Escondida BHP.AX mine saw a 16.5% drop to 85,700 tonnes, the country´s copper commission Cochilco reported on Wednesday. (Reporting by Fabian Cambero, writing by Aislinn Laing) ((Aislinn.Laing@thomsonreuters.com; +56 223704250;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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4438.0
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2021-06-01 00:00:00 UTC
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Senators criticize U.S. airlines over voucher expiration dates
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AAL
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https://www.nasdaq.com/articles/senators-criticize-u.s.-airlines-over-voucher-expiration-dates-2021-06-01
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nan
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By David Shepardson and Tracy Rucinski
WASHINGTON, June 1 (Reuters) - Two senators on Monday criticized seven major U.S. airlines for failing to make all pandemic-related flight credits valid indefinitely and vowed to pursue legislative or regulatory actions in response.
Democrats Edward Markey and Richard Blumenthal said the airlines trade group had "refused to offer any commitment to expand cash refund policies or eliminate expiration dates for pandemic-related flight credits."
The lawmakers said the airlines "continue to sit on more than $10 billion in unused flight credits and are still refusing to return consumers' hard-earned money, more than a year after the pandemic began."
Without removing expiration dates, "your company may be encouraging travelers to fly before they feel safe boarding a plane, lest they lose tickets that they have already purchased," they added.
On Friday, trade group Airlines for America representing American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N and others told the senators in a letter that major U.S. airlines issued $12.84 billion in cash refunds to customers in 2020 as the coronavirus pandemic upended the travel industry.
The group declined further comment Monday.
Airlines have faced criticism over their handling of redemptions for flights canceled during the pandemic.
In the letter, reviewed by Reuters, Nicholas Calio, the group's chief executive, said U.S. airlines had maintained a steadfast commitment to the traveling public during the pandemic and issued refunds in accordance with all federal laws and regulations.
The cash refunds, which accounted for about 20% of airline revenues last year, came on top of billions of dollars of travel credits that are now being used "at a rapid clip" to book fresh flights, he said.
The redemption of vouchers currently accounted for 10% to 15% of carriers' monthly ticket sales and was expected to increase in coming months as the pandemic winds down, Calio added.
(Reporting by David Shepardson and Tracy Rucinski, Editing by Rosalba O'Brien and Richard Pullin)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Friday, trade group Airlines for America representing American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N and others told the senators in a letter that major U.S. airlines issued $12.84 billion in cash refunds to customers in 2020 as the coronavirus pandemic upended the travel industry. By David Shepardson and Tracy Rucinski WASHINGTON, June 1 (Reuters) - Two senators on Monday criticized seven major U.S. airlines for failing to make all pandemic-related flight credits valid indefinitely and vowed to pursue legislative or regulatory actions in response. Democrats Edward Markey and Richard Blumenthal said the airlines trade group had "refused to offer any commitment to expand cash refund policies or eliminate expiration dates for pandemic-related flight credits."
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On Friday, trade group Airlines for America representing American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N and others told the senators in a letter that major U.S. airlines issued $12.84 billion in cash refunds to customers in 2020 as the coronavirus pandemic upended the travel industry. By David Shepardson and Tracy Rucinski WASHINGTON, June 1 (Reuters) - Two senators on Monday criticized seven major U.S. airlines for failing to make all pandemic-related flight credits valid indefinitely and vowed to pursue legislative or regulatory actions in response. Democrats Edward Markey and Richard Blumenthal said the airlines trade group had "refused to offer any commitment to expand cash refund policies or eliminate expiration dates for pandemic-related flight credits."
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On Friday, trade group Airlines for America representing American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N and others told the senators in a letter that major U.S. airlines issued $12.84 billion in cash refunds to customers in 2020 as the coronavirus pandemic upended the travel industry. By David Shepardson and Tracy Rucinski WASHINGTON, June 1 (Reuters) - Two senators on Monday criticized seven major U.S. airlines for failing to make all pandemic-related flight credits valid indefinitely and vowed to pursue legislative or regulatory actions in response. Democrats Edward Markey and Richard Blumenthal said the airlines trade group had "refused to offer any commitment to expand cash refund policies or eliminate expiration dates for pandemic-related flight credits."
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On Friday, trade group Airlines for America representing American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N and others told the senators in a letter that major U.S. airlines issued $12.84 billion in cash refunds to customers in 2020 as the coronavirus pandemic upended the travel industry. By David Shepardson and Tracy Rucinski WASHINGTON, June 1 (Reuters) - Two senators on Monday criticized seven major U.S. airlines for failing to make all pandemic-related flight credits valid indefinitely and vowed to pursue legislative or regulatory actions in response. Democrats Edward Markey and Richard Blumenthal said the airlines trade group had "refused to offer any commitment to expand cash refund policies or eliminate expiration dates for pandemic-related flight credits."
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4439.0
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2021-06-01 00:00:00 UTC
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American Airlines Stock Should Hit $33 or More By 2022
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AAL
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https://www.nasdaq.com/articles/american-airlines-stock-should-hit-%2433-or-more-by-2022-2021-06-01
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines Group (NASDAQ:AAL) is in recovery mode as traffic is picking up and its financials are improving. Based on my assessment of its potential cash flow over the next year, I think AAL stock is still undervalued. My forecast is that the stock could reach $33, or about one-third higher than the present price.
AAL) airplane waiting on the tarmac. Represents airline stocks." width="300" height="169">
Source: GagliardiPhotography / Shutterstock.com
Over the Memorial Day weekend, U.S. airline bookings moved higher than 2019 levels, according to Bank of America (NYSE:BAC).
As a result, analysts are not projecting significantly higher revenue for both 2021 (compared to several months ago) as well as for 2022. Seeking Alpha indicates that 2021 sales will hit $28.05 billion. This is up 3.1% from $27.21 billion, at the end of last year, as seen in my last article on AAL stock. Moreover, for 2022, they see sales rising 37% to $38.47 billion.
7 Cheap Stocks to Put on Your Buy List for June
We can use these numbers to forecast what AAL stock is worth.
What American Airlines Is Worth
In my last article on Dec. 2, 2020, I estimated the cash flow from operations (CFFO) for AAL stock and then applied a multiple to derive its value. With this method, I forecast that American Airlines would be worth $22.92 per share when it was at $14.86. Today, June 1, six months later, AAL stock is at $24.74. So this model works, and we can use it to project out the next six to 12 months.
At the time CFFO was negative at American Airlines. However, recently in Q1 the company produced its first quarter with positive CFFO. Using a 5% CFFO margin, we can estimate that the run-rate CFFO for 2021 will be $1.4025 billion. This is seen by multiplying 5% by the 2021 revenue estimate of $28.05 billion.
Now the actual 2021 run-rate CFFO may not be that high, as the CFFO margin will increase each quarter. But the run rate margin (i.e., the estimate on a going-forward basis) can be conservatively estimated as 5%.
Now we can determine the value for American Airlines. For example, using an 8% cash flow yield, we can estimate its value at $17.53 billion. This is seen by dividing $1.4025 billion CFFO by 8%. Since the existing market capitalization for AAL stock is $15.55 billion, the stock is worth 12.7% more. This means that its value for 2021 is $27.88 (i.e., 12.7% over $24.74 today).
But what about 2022? Using the analyst estimates of $38.47 billion in revenue by then, and a 5% CFFO margin, cash flow will reach $1.9235 billion. Using an 8% cash flow yield, the market value is worth $24 billion (i.e., $1.9235 billion divided by 8%). This is 54.6% higher than today’s $15.55 billion market value.
What to Do With AAL Stock
As a result, sometime in 2022 AAL stock will be worth 54.6% higher than today or $38.25 per share. Or more specifically, the stock will reflect this price based on a forward estimate of its 2022 year-end cash flow from operations. Whether the company will actually reach these CFFO levels by the end of 2022 could be another issue.
Therefore, the best way to estimate the value for AAL stock today is to take an average of its existing value of $27.88 per share and its 2022 value of $38.25. That equals $33 per share, which is also 33% above today’s price of $24.74.
Analysts have been consistently wrong on the stock. When I last wrote about AAL stock the average estimate polled by TipRanks.com was $10.20. That was a 12-month forward price target. Obviously, they were way off as the stock is now at $24.74 six months later.
The same holds true today. The average estimate at TipRanks.com at $20.50, which is 17% below today’s price. So maybe don’t depend on analyst estimates. They have been consistently wrong.
My simplistic model is probably as good as any to use to predict the stock price. If I am right, investors in AAL stock stand to make a good return of over 33% by buying American Airlines.
On the date of publication, Mark R. Hake did not hold a position in any security mentioned in the article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here.
The post American Airlines Stock Should Hit $33 or More By 2022 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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What American Airlines Is Worth In my last article on Dec. 2, 2020, I estimated the cash flow from operations (CFFO) for AAL stock and then applied a multiple to derive its value. InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group (NASDAQ:AAL) is in recovery mode as traffic is picking up and its financials are improving. Based on my assessment of its potential cash flow over the next year, I think AAL stock is still undervalued.
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What American Airlines Is Worth In my last article on Dec. 2, 2020, I estimated the cash flow from operations (CFFO) for AAL stock and then applied a multiple to derive its value. InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group (NASDAQ:AAL) is in recovery mode as traffic is picking up and its financials are improving. Based on my assessment of its potential cash flow over the next year, I think AAL stock is still undervalued.
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What American Airlines Is Worth In my last article on Dec. 2, 2020, I estimated the cash flow from operations (CFFO) for AAL stock and then applied a multiple to derive its value. Since the existing market capitalization for AAL stock is $15.55 billion, the stock is worth 12.7% more. What to Do With AAL Stock As a result, sometime in 2022 AAL stock will be worth 54.6% higher than today or $38.25 per share.
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What to Do With AAL Stock As a result, sometime in 2022 AAL stock will be worth 54.6% higher than today or $38.25 per share. InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group (NASDAQ:AAL) is in recovery mode as traffic is picking up and its financials are improving. Based on my assessment of its potential cash flow over the next year, I think AAL stock is still undervalued.
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4440.0
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2021-06-01 00:00:00 UTC
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US STOCKS-Dow, S&P 500 rise on optimism about economic recovery
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AAL
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https://www.nasdaq.com/articles/us-stocks-dow-sp-500-rise-on-optimism-about-economic-recovery-2021-06-01
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By Shashank Nayar and Medha Singh
June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record highas investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation.
The two indexes are rising for the fourth straight session as investors bet on economically sensitive stocks benefiting the most from a post-COVID-19 recovery. The S&P 1500 airlines .SPXOMAIR index added 2.7%.
The S&P energy index .SPNY jumped 3.8% on a promising outlook for fuel demand, while financials .SPSY and materials .SPLRCM were up almost 1% each. O/R
Stock markets were unperturbed on Friday by a surge in key inflation readings for April following reassurances from Federal Reserve officials that the ultra-loose monetary policy would remain in place.
Latest data showed U.S. manufacturing activity picked up in May as pent-up demand amid a reopening economy boosted orders, but unfinished work piled up because of shortages of raw materials and labor.
Focus will be on key manufacturing and services sector Purchasing Managers' Indexes (PMIs) later in the week to judge the pace of an economic reopening, with the main event of U.S. payrolls due on Friday.
"For now, they (investors) are embracing the economic data that shows improvements in the economy and are ignoring data that suggests that it's going to lead to much higher prices and shortages that affect specific companies," said Rick Meckler, partner, Cherry Lane Investments in New Vernon, New Jersey.
"The main driver behind the stock market is the reopening of the country ... that's motivating investors to feel a sense of optimism about markets and cause them to come back in and buy stocks with the idea that things will be better by the fall and earnings will improve."
American Airlines AAL.O, United Airlines UAL.O and Marriott International MAR.O, the travel stocks that stand to perform better as the economy reopens, gained between 1.1%and 2.4%.
At 10:19 a.m. ET, the Dow Jones Industrial Average .DJIwas up 118.64 points, or 0.34%, at 34,648.09 and the S&P 500 .SPXwas up 4.33 points, or 0.10%, at 4,208.44.
The Nasdaq Composite .IXICwas down 26.13 points, or 0.19%, at 13,722.61 as losses in Apple Inc AAPL.O, Microsoft Corp MSFT.O and Netflix Inc NFLX.O weighed.
Cloudera Inc CLDR.N jumped 23.6% after private equity firms KKR & Co KKR.N and Clayton Dubilier & Rice LLC agreed to take the data analytics firm private in a $5.3 billion dollar deal.
A group of "meme stocks" extended gains from the previous week with shares of AMC Entertainment Holdings Inc AMC.N up 14.5% after the movie theater chain announced a $230 million capital raise.
Abbott Laboratories ABT.N fell 6.2% after cutting its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand.
Advancing issues outnumbered decliners by a 2.47-to-1 ratio on the NYSE and by a 1.36-to-1 ratio on the Nasdaq.
The S&P index recorded 59 new 52-week highs and no new low, while the Nasdaq recorded 114 new highs and 11 new lows.
(Reporting by Shashank Nayar and Medha Singh in Bengaluru; Editing by Subhranshu Sahu and Maju Samuel)
((Shashank.Nayar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2256;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O, United Airlines UAL.O and Marriott International MAR.O, the travel stocks that stand to perform better as the economy reopens, gained between 1.1%and 2.4%. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record highas investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. Latest data showed U.S. manufacturing activity picked up in May as pent-up demand amid a reopening economy boosted orders, but unfinished work piled up because of shortages of raw materials and labor.
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American Airlines AAL.O, United Airlines UAL.O and Marriott International MAR.O, the travel stocks that stand to perform better as the economy reopens, gained between 1.1%and 2.4%. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record highas investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. The S&P index recorded 59 new 52-week highs and no new low, while the Nasdaq recorded 114 new highs and 11 new lows.
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American Airlines AAL.O, United Airlines UAL.O and Marriott International MAR.O, the travel stocks that stand to perform better as the economy reopens, gained between 1.1%and 2.4%. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record highas investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. "For now, they (investors) are embracing the economic data that shows improvements in the economy and are ignoring data that suggests that it's going to lead to much higher prices and shortages that affect specific companies," said Rick Meckler, partner, Cherry Lane Investments in New Vernon, New Jersey.
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American Airlines AAL.O, United Airlines UAL.O and Marriott International MAR.O, the travel stocks that stand to perform better as the economy reopens, gained between 1.1%and 2.4%. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record highas investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. The two indexes are rising for the fourth straight session as investors bet on economically sensitive stocks benefiting the most from a post-COVID-19 recovery.
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4441.0
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2021-06-01 00:00:00 UTC
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4 Best Airline Stocks Ready to Take Off on the Reopening
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AAL
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https://www.nasdaq.com/articles/4-best-airline-stocks-ready-to-take-off-on-the-reopening-2021-06-01
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airline stocks were among the worst hit at the onset of the Covid-19 pandemic and the subsequent lock-down. However, with the support of the government coupled with fundraising, airline companies have navigated the worst of the crisis. It seems that airline stocks are positioned for another leg of upside.
Vaccinations against Covid-19 are being administered at a robust pace in the United States. Recent data shows that “roughly 61.3% of American adults have received at least one Covid-19 vaccine dose.” Further, about 49.6% are fully vaccinated. This is already having a sizable positive impact, as Covid-19 cases have declined by more than 50% since the beginning of May 2021.
As the vaccination drive continues at a healthy pace and Covid-19 cases decline, full economic reopening is in the cards. With significant pent-up demand for leisure travel, airline stocks look positioned to benefit.
7 Cheap Stocks to Put on Your Buy List for June
Let’s talk about four fundamentally strong airline stocks that can deliver health returns in the next few quarters.
Southwest Airlines (NYSE:LUV)
JetBlue Airways (NASDAQ:JBLU)
Alaska Air (NYSE:ALK)
Spirit Airlines (NYSE:SAVE)
4 Best Airline Stocks: Southwest Airlines (LUV)
Source: Jeramey Lende / Shutterstock.com
From a fundamental perspective, LUV stock is among the top names among airline stocks. For almost three months, the stock has been sideways after a big rally. With wider economic reopening, LUV stock seems positioned for another break-out.
Talking about fundamentals, the stock is the only airline stocks in the U.S. with an investment grade rating. As of May 2021, the airline reported a strong liquidity buffer of $16.7 billion. It’s also worth noting that the company’s unencumbered assets totaled $11 billion. Further, with a leverage of 58%, the company has ample financial flexibility as it navigates challenging times.
Another factor to like about Southwest is a 22% domestic market share. The airline is a market leader in 22 of the top 50 U.S. metro areas. With pent-up demand for travel and tourism within the country, the airline is well positioned to benefit.
For the first quarter of 2021, the airline reported average cash burn of $13 million per day. However, for March 2021, the airline had a cash burn of $9 million per day. Clearly, as cash burn reduces, the stock is well positioned for upside with strong fundamentals.
Southwest also has a robust orderbook of 628 aircraft to be delivered over the next ten years. This provides visibility for steady revenue and cash flow growth once the industry is back to pre-pandemic levels.
Airline Stocks: JetBlue Airways (JBLU)
JBLU) aircraft interior" width="300" height="169">
Source: Shutterstock
JBLU stock is another name among airline stocks that has relatively strong fundamentals from a balance sheet perspective. The stock has also been in a consolidation mode and looks attractive as demand picks up.
Amid the weakness in the industry, JetBlue has increased the number of routes domestically. Further, the company is making an entry into the transatlantic market with non-stop service between New York and London.
Additionally, the Northeast alliance with American Airlines (NASDAQ:AAL) will help JetBlue make inroads into broader geographies. Overall, these initiatives will have a positive impact on growth once travel and tourism is near pre-pandemic levels.
From a balance sheet perspective, the company closed Q1 2021 with total liquidity of $3.2 billion. With an adjusted-debt-to-capital ratio of 59%, the company airline has robust financial flexibility.
Another reason to like JetBlue is the focus on investing in next generation fuel efficient aircraft. In the next few years, this is likely to have a positive impact on the EBITDA margin and cash flows.
7 Best Stocks for Upcoming Grads to Buy and Hold Forever
In April 2021, JetBlue announced that the airline will be investing $20.5 million in Universal Hydrogen. The latter is in the development of a hydrogen logistics network and regional aircraft conversion kits. With global focus on clean energy, the investment can yield positive long-term results.
Airline Stocks: Alaska Air (ALK)
ALK) aircraft is airborne as it departs Los Angeles International Airport" width="300" height="169">
Source: Philip Pilosian / Shutterstock.com
ALK stock is another quality name among airline stocks. The stock is currently trading near its 52-week high. However, it seems that the positive stock momentum will sustain.
There were several positives from Q1 2021 results. First and foremost, the airline reported positive operating cash flow of $167 million. Cash flow upside was driven by robust advance bookings. Further, the airline had a total liquidity buffer of $5.3 billion. With a debt-to-capitalization of 62%, the airline is emerging from the crisis with a healthy balance sheet.
Alaska Air is also focused on continued cost reduction. For the year, the airline expects to reduce structural cost by $250 million. As airline capacity improves, Alaska is positioned for higher EBITDA margin and robust cash flows.
The airline also announced 12 new routes for Q1 2021 with a focus on West Coast destinations. Alaska also announced recall notice for 350 pilots who were on extended leaves. This is an indication of the point that demand is likely to increase meaningfully in the next few quarters.
Spirit Airlines (SAVE)
SAVE) branded airplane flying in the air" width="300" height="169">
Source: Markus Mainka / Shutterstock.com
SAVE stock has trended higher by 57% in the last six months. Considering the demand growth and the expansion plans, SAVE stock is among the top airline stocks to consider.
In terms of the flight expansion, Spirit closed Q1 2021 with a fleet of 159 aircraft. By the end of the year, the company expects to increase the fleet to 173 aircraft. Further, by the end of FY2023, the number of aircraft in the fleet is expected to increase to 221. Clearly, with a robust fleet expansion plan, Spirit is well positioned for revenue and cash flow growth.
It’s also worth noting that for Q1 2021, the company has guided for an adjusted EBITDA margin of negative 5% to break-even. Therefore, as airline capacity increases, Spirit is well positioned to deliver positive EBITDA in Q3 2021.
The airline ended Q1 2021 with a total liquidity buffer of $1.9 billion. Spirit is therefore well positioned from a growth financing perspective. Once operating cash flows accelerate, the airline will have enhanced capital expenditure flexibility.
8 Best Utility Stocks to Buy for Downside Protection
Overall, SAVE stock looks attractive considering the growth plans and focus on lowering cost. As a matter of fact, the airline already has the lowest unit-cost base in the U.S. airline sector.
On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modelling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
The post 4 Best Airline Stocks Ready to Take Off on the Reopening 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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Additionally, the Northeast alliance with American Airlines (NASDAQ:AAL) will help JetBlue make inroads into broader geographies. As the vaccination drive continues at a healthy pace and Covid-19 cases decline, full economic reopening is in the cards. 7 Best Stocks for Upcoming Grads to Buy and Hold Forever In April 2021, JetBlue announced that the airline will be investing $20.5 million in Universal Hydrogen.
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Additionally, the Northeast alliance with American Airlines (NASDAQ:AAL) will help JetBlue make inroads into broader geographies. Southwest Airlines (NYSE:LUV) JetBlue Airways (NASDAQ:JBLU) Alaska Air (NYSE:ALK) Spirit Airlines (NYSE:SAVE) 4 Best Airline Stocks: Southwest Airlines (LUV) Source: Jeramey Lende / Shutterstock.com From a fundamental perspective, LUV stock is among the top names among airline stocks. Airline Stocks: JetBlue Airways (JBLU) JBLU) aircraft interior" width="300" height="169"> Source: Shutterstock JBLU stock is another name among airline stocks that has relatively strong fundamentals from a balance sheet perspective.
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Additionally, the Northeast alliance with American Airlines (NASDAQ:AAL) will help JetBlue make inroads into broader geographies. Southwest Airlines (NYSE:LUV) JetBlue Airways (NASDAQ:JBLU) Alaska Air (NYSE:ALK) Spirit Airlines (NYSE:SAVE) 4 Best Airline Stocks: Southwest Airlines (LUV) Source: Jeramey Lende / Shutterstock.com From a fundamental perspective, LUV stock is among the top names among airline stocks. Airline Stocks: JetBlue Airways (JBLU) JBLU) aircraft interior" width="300" height="169"> Source: Shutterstock JBLU stock is another name among airline stocks that has relatively strong fundamentals from a balance sheet perspective.
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Additionally, the Northeast alliance with American Airlines (NASDAQ:AAL) will help JetBlue make inroads into broader geographies. As the vaccination drive continues at a healthy pace and Covid-19 cases decline, full economic reopening is in the cards. Considering the demand growth and the expansion plans, SAVE stock is among the top airline stocks to consider.
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4442.0
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2021-06-01 00:00:00 UTC
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US STOCKS-S&P 500, Dow futures hover near record highs
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AAL
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https://www.nasdaq.com/articles/us-stocks-sp-500-dow-futures-hover-near-record-highs-2021-06-01
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By Shashank Nayar and Medha Singh
June 1 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, kicking off a week packed with major economic data that is expected to shed more light on the path of inflation.
Dow and S&P 500 futures were near record highs, set to extend last week's strong gains as investors bet on economically sensitive stocks benefiting the most from a post-COVID-19 recovery.
The S&P 500 rose to a level last Friday that was within 0.6% of its record high as investors were unperturbed by a surge in key inflation readings for April following reassurances from Federal Reserve officials that the ultra-loose monetary policy would remain in place.
Investors are now awaiting key manufacturing and services sector PMIs later in the week to judge the pace of an economic reopening, with the main event of U.S. payrolls due on Friday.
"For now, they (investors) are embracing the economic data that shows improvements in the economy and are ignoring data that suggests that it's going to lead to much higher prices and shortages that affect specific companies," said Rick Meckler, partner, Cherry Lane Investments in New Vernon, New Jersey.
"The main driver behind the stock market is the reopening of the country... that's motivating investors to feel a sense of optimism about markets and cause them to come back in and buy stocks with the idea that things will be better by the fall and earnings will improve."
Industrial and airline stocks, which stand to perform better as the economy reopens, were among the top gainers in pre-market trade, while oil heavyweights Chevron CVX.N and Exxon Mobil Corp XOM.N rose between 1.7% and 1.6% on a promising outlook for fuel demand. O/R
Exxon Mobil also entered an agreement with Equinor EQNR.OL and Petrogal Brasil to develop an $8 billion oil field in Brazil.
American Airlines AAL.O, United Airlines UAL.O and Marriott International MAR.O gained between 1% and 2%.
At 8:36 a.m. ET, Dow e-minis 1YMcv1 were up 260 points, or 0.75%, S&P 500 e-minis EScv1 were up 22.25 points, or 0.53%, and Nasdaq 100 e-minis NQcv1 were up 54.75 points, or 0.4%.
Cloudera Inc CLDR.N jumped 23.3% after private-equity firms KKR & Co KKR.N and Clayton Dubilier & Rice LLC agreed to take the data analytics firm private in a $5.3 billion dollar deal.
A group of "meme stocks" extended gains from the previous week with shares of AMC Entertainment Holdings Inc AMC.N up 16.4% after the movie theater chain announced a $230 million capital raise.
(Reporting by Shashank Nayar and Medha Singh in Bengaluru; Editing by Subhranshu Sahu)
((Shashank.Nayar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2256;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O, United Airlines UAL.O and Marriott International MAR.O gained between 1% and 2%. By Shashank Nayar and Medha Singh June 1 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, kicking off a week packed with major economic data that is expected to shed more light on the path of inflation. The S&P 500 rose to a level last Friday that was within 0.6% of its record high as investors were unperturbed by a surge in key inflation readings for April following reassurances from Federal Reserve officials that the ultra-loose monetary policy would remain in place.
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American Airlines AAL.O, United Airlines UAL.O and Marriott International MAR.O gained between 1% and 2%. By Shashank Nayar and Medha Singh June 1 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, kicking off a week packed with major economic data that is expected to shed more light on the path of inflation. Dow and S&P 500 futures were near record highs, set to extend last week's strong gains as investors bet on economically sensitive stocks benefiting the most from a post-COVID-19 recovery.
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American Airlines AAL.O, United Airlines UAL.O and Marriott International MAR.O gained between 1% and 2%. By Shashank Nayar and Medha Singh June 1 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, kicking off a week packed with major economic data that is expected to shed more light on the path of inflation. Dow and S&P 500 futures were near record highs, set to extend last week's strong gains as investors bet on economically sensitive stocks benefiting the most from a post-COVID-19 recovery.
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American Airlines AAL.O, United Airlines UAL.O and Marriott International MAR.O gained between 1% and 2%. By Shashank Nayar and Medha Singh June 1 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, kicking off a week packed with major economic data that is expected to shed more light on the path of inflation. Dow and S&P 500 futures were near record highs, set to extend last week's strong gains as investors bet on economically sensitive stocks benefiting the most from a post-COVID-19 recovery.
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4443.0
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2021-06-01 00:00:00 UTC
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Commodity rally, record factory growth lift European shares to new peak
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AAL
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https://www.nasdaq.com/articles/commodity-rally-record-factory-growth-lift-european-shares-to-new-peak-2021-06-01
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By Sruthi Shankar
June 1 (Reuters) - European stocks hit fresh record highs on Tuesday, as strong metal and oil prices boosted shares of big commodity companies, while data showed euro zone manufacturing activity expanded at a record pace in May.
The pan-European STOXX 600 index .STOXX gained 0.9% in the first trading session of June, with UK's blue-chip index .FTSE rising 1.1% after a holiday on Monday.
The German DAX .GDAXI jumped 1.3% to a new record high, while France's CAC 40 .FCHI added 0.7%.
IHS Markit's final reading of euro zone's factory activity rose to 63.1 in May, above an initial 62.8 "flash" estimate and the highest since the survey began in June 1997.
The survey suggested growth would have been even faster without supply bottlenecks that have led to an unprecedented rise in input costs.
While investors worry that higher inflation could force the European Central Bank to dial back its stimulus measures, policymakers have said in recent weeks that the rise in prices is transitory and have reaffirmed continued support.
"We've had the Fed and ECB say they expect a surge in inflation as economies open up," said Keith Temperton, a sales trader at Forte Securities.
"It will become a problem once the economies have opened up and numbers continue higher. Until then, the market is embracing what we're seeing."
Euro zone consumer prices data for May is due later in the morning. Data on Monday showed Germany's annual consumer price inflation accelerated in May, advancing further above the ECB's target of close to but below 2%.
Miners such as Anglo American AAL.L, BHP Group BLPB.L and Glencore GLEN.L climbed nearly 4% each, giving the biggest boost to the STOXX 600 as prices of copper and other metals rose. MET/L
Oil majors BP BP.L, Royal Dutch Shell RDSa.L and Total TOTF.PA inched up as Brent crude futures LCOc1 topped $70 per barrel to trade at its highest since March on optimism over fuel demand outlook. O/R
The benchmark STOXX 600 ended May with a 2% gain, its fourth straight monthly rise as optimism about economic reopening drove investors toward economically sensitive sectors such as materials and energy.
German carmaker Daimler DAIGn.DE rose 2.7% after it agreed to pay Nokia NOKIA.HE for using its patents, ending a row over royalties for key technologies.
Warsaw-listed CD Projekt SA CDR.WA fell 8.5% as its quarterly profit fell by more than half as its flagship game, "Cyberpunk 2077," was kept off Sony's PlayStation Store.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Miners such as Anglo American AAL.L, BHP Group BLPB.L and Glencore GLEN.L climbed nearly 4% each, giving the biggest boost to the STOXX 600 as prices of copper and other metals rose. IHS Markit's final reading of euro zone's factory activity rose to 63.1 in May, above an initial 62.8 "flash" estimate and the highest since the survey began in June 1997. While investors worry that higher inflation could force the European Central Bank to dial back its stimulus measures, policymakers have said in recent weeks that the rise in prices is transitory and have reaffirmed continued support.
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Miners such as Anglo American AAL.L, BHP Group BLPB.L and Glencore GLEN.L climbed nearly 4% each, giving the biggest boost to the STOXX 600 as prices of copper and other metals rose. By Sruthi Shankar June 1 (Reuters) - European stocks hit fresh record highs on Tuesday, as strong metal and oil prices boosted shares of big commodity companies, while data showed euro zone manufacturing activity expanded at a record pace in May. Euro zone consumer prices data for May is due later in the morning.
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Miners such as Anglo American AAL.L, BHP Group BLPB.L and Glencore GLEN.L climbed nearly 4% each, giving the biggest boost to the STOXX 600 as prices of copper and other metals rose. By Sruthi Shankar June 1 (Reuters) - European stocks hit fresh record highs on Tuesday, as strong metal and oil prices boosted shares of big commodity companies, while data showed euro zone manufacturing activity expanded at a record pace in May. While investors worry that higher inflation could force the European Central Bank to dial back its stimulus measures, policymakers have said in recent weeks that the rise in prices is transitory and have reaffirmed continued support.
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Miners such as Anglo American AAL.L, BHP Group BLPB.L and Glencore GLEN.L climbed nearly 4% each, giving the biggest boost to the STOXX 600 as prices of copper and other metals rose. By Sruthi Shankar June 1 (Reuters) - European stocks hit fresh record highs on Tuesday, as strong metal and oil prices boosted shares of big commodity companies, while data showed euro zone manufacturing activity expanded at a record pace in May. "It will become a problem once the economies have opened up and numbers continue higher.
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4444.0
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2021-06-01 00:00:00 UTC
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European stocks climb on commodity boost ahead of data
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AAL
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https://www.nasdaq.com/articles/european-stocks-climb-on-commodity-boost-ahead-of-data-2021-06-01
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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
June 1 (Reuters) - European stocks rose on Tuesday, with commodity-linked shares leading the way on strong metal and oil prices, while investors looked ahead to the latest set of factory activity and inflation data.
The pan-European STOXX 600 index .STOXX gained 0.5% in the first trading session of June, hovering below a record high hit last week, with UK shares .FTSE gaining 0.4% after a holiday on Monday.
Miners such as Anglo American AAL.L, BHP Group BLPB.L and Glencore GLEN.L climbed more than 2% each, giving the biggest boost to the STOXX 600 as prices of copper and other metals rose. MET/L
Oil majors BP BP.L, Royal Dutch Shell RDSa.L and Total TOTF.PA inched up as Brent crude futures LCOc1 topped $70 per barrel to trade at its highest since March on growing optimism over fuel demand outlook. O/R
Surveys earlier showed Asia's factory activity continued to expand in May, thanks to an ongoing recovery in global demand.
Investors are awaiting final readings of IHS Markit's factory activity data for euro zone and UK, as well as consumer prices data for May.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Miners such as Anglo American AAL.L, BHP Group BLPB.L and Glencore GLEN.L climbed more than 2% each, giving the biggest boost to the STOXX 600 as prices of copper and other metals rose. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window June 1 (Reuters) - European stocks rose on Tuesday, with commodity-linked shares leading the way on strong metal and oil prices, while investors looked ahead to the latest set of factory activity and inflation data. MET/L Oil majors BP BP.L, Royal Dutch Shell RDSa.L and Total TOTF.PA inched up as Brent crude futures LCOc1 topped $70 per barrel to trade at its highest since March on growing optimism over fuel demand outlook.
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Miners such as Anglo American AAL.L, BHP Group BLPB.L and Glencore GLEN.L climbed more than 2% each, giving the biggest boost to the STOXX 600 as prices of copper and other metals rose. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window June 1 (Reuters) - European stocks rose on Tuesday, with commodity-linked shares leading the way on strong metal and oil prices, while investors looked ahead to the latest set of factory activity and inflation data. The pan-European STOXX 600 index .STOXX gained 0.5% in the first trading session of June, hovering below a record high hit last week, with UK shares .FTSE gaining 0.4% after a holiday on Monday.
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Miners such as Anglo American AAL.L, BHP Group BLPB.L and Glencore GLEN.L climbed more than 2% each, giving the biggest boost to the STOXX 600 as prices of copper and other metals rose. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window June 1 (Reuters) - European stocks rose on Tuesday, with commodity-linked shares leading the way on strong metal and oil prices, while investors looked ahead to the latest set of factory activity and inflation data. Investors are awaiting final readings of IHS Markit's factory activity data for euro zone and UK, as well as consumer prices data for May.
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Miners such as Anglo American AAL.L, BHP Group BLPB.L and Glencore GLEN.L climbed more than 2% each, giving the biggest boost to the STOXX 600 as prices of copper and other metals rose. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window June 1 (Reuters) - European stocks rose on Tuesday, with commodity-linked shares leading the way on strong metal and oil prices, while investors looked ahead to the latest set of factory activity and inflation data. The pan-European STOXX 600 index .STOXX gained 0.5% in the first trading session of June, hovering below a record high hit last week, with UK shares .FTSE gaining 0.4% after a holiday on Monday.
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4445.0
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2021-05-31 00:00:00 UTC
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Boeing Shares Down 1.5% on 787 Dreamliners Delivery Delays – Report
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AAL
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https://www.nasdaq.com/articles/boeing-shares-down-1.5-on-787-dreamliners-delivery-delays-report-2021-05-31
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nan
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Shares of Boeing (BA) declined 1.5% on Friday as the company has paused deliveries of its 787 Dreamliners, according to the Wall Street Journal.
American Airlines (AAL) was expected to receive a new Dreamliner this week. However, the delivery cannot be fulfilled by Boeing until next week at the earliest.
The delay follows a recent 5-month suspension in deliveries of aircraft due to production issues. Last year, a review of Boeing’s Dreamliner production was initiated by the Federal Aviation Administration (FAA), which has increased scrutiny of the company's 737 MAX manufacturing operations following earlier factory slip-ups.
The FAA recently requested more information about the company’s proposed solution for addressing previously identified quality lapses. (See Boeing stock analysis on TipRanks)
Boeing told the WSJ that it is working in a speedily and transparent manner to give out the details. The company is required to prove that its inspection method, which is time-consuming and labor-intensive, adheres to the federal safety regulations.
Last month, Boeing CEO David Calhoun revealed plans to deliver 10-12 Dreamliners every month. With the recent development, the company will most likely miss that target.
The delivery halt could bring further pressure on the company’s finances since customers usually pay most of the aircraft’s price on receipt of the aircraft.
On May 25, Morgan Stanley analyst Kristine Liwag maintained a Buy rating and a price target of $274 (10.9% upside potential) on the stock.
Liwag believes that 737 aircraft are flying at an increasing number of airlines both in the U.S. and internationally. He added, “Airlines have shown some improvement in the number of flights following the grounding of 737 MAX planes in April. WoW, AAL had an increase of 29% while UAL had an increase of 46%.”
Overall, the stock has a Moderate Buy consensus rating based on 7 Buys and 7 Holds. The average analyst price target of $270 implies 9.3% upside potential from current levels. Shares of Boeing have jumped 63.2% over the past year.
Related News:
Nutanix Posts Smaller-Than-Feared Quarterly Loss, Revenue Beats Estimates
Medtronic Posts a Blowout Quarter as Revenue Outperforms, Bumps up Dividend
Sanofi and GSK Commence Phase 3 Study of COVID-19 Vaccine Candidate
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) was expected to receive a new Dreamliner this week. WoW, AAL had an increase of 29% while UAL had an increase of 46%.” Overall, the stock has a Moderate Buy consensus rating based on 7 Buys and 7 Holds. Last year, a review of Boeing’s Dreamliner production was initiated by the Federal Aviation Administration (FAA), which has increased scrutiny of the company's 737 MAX manufacturing operations following earlier factory slip-ups.
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American Airlines (AAL) was expected to receive a new Dreamliner this week. WoW, AAL had an increase of 29% while UAL had an increase of 46%.” Overall, the stock has a Moderate Buy consensus rating based on 7 Buys and 7 Holds. On May 25, Morgan Stanley analyst Kristine Liwag maintained a Buy rating and a price target of $274 (10.9% upside potential) on the stock.
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American Airlines (AAL) was expected to receive a new Dreamliner this week. WoW, AAL had an increase of 29% while UAL had an increase of 46%.” Overall, the stock has a Moderate Buy consensus rating based on 7 Buys and 7 Holds. Shares of Boeing (BA) declined 1.5% on Friday as the company has paused deliveries of its 787 Dreamliners, according to the Wall Street Journal.
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American Airlines (AAL) was expected to receive a new Dreamliner this week. WoW, AAL had an increase of 29% while UAL had an increase of 46%.” Overall, the stock has a Moderate Buy consensus rating based on 7 Buys and 7 Holds. With the recent development, the company will most likely miss that target.
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4446.0
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2021-05-31 00:00:00 UTC
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Vote on Texas bill to make voting tougher blocked by no quorum
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AAL
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https://www.nasdaq.com/articles/vote-on-texas-bill-to-make-voting-tougher-blocked-by-no-quorum-2021-05-31
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nan
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By Brad Brooks
SAN ANTONIO, May 30 (Reuters) - Democrats in the Texas House of Representatives boycotted a legislative session late Sunday, blocking a vote on an election reform bill critics say would make it harder for Blacks and Hispanics to vote.
With just over an hour before a midnight deadline to pass the measure, Republican members of the House said that Democrats had walked out to deny the House a quorum for a vote.
The Texas House went into recess until 10 a.m. local time on Monday - beyond the midnight Sunday deadline to pass legislation in this session.
A vote on the measure is certain to pass the Republican-dominated house. Texas Governor Greg Abbott, who strongly supports the bill, said in a late Sunday emailed statement that the bill would be added to a special legislative session planned for this fall.
Supporters of the legislation said it is needed to bolster election security. The country's second-most-populous state already has some of the most restrictive electoral laws in the United States, even without the pending bill.
The proposed bill states that the changes "are not intended to impair the right of free suffrage" but are necessary to "prevent fraud in the electoral process."
Republican U.S. Representative Michael McCaul of Texas told CNN's "State of the Union" that the intent is to "give the American people more trust in our elections."
Democrats and civil rights groups argue that such legislation disproportionately burdens or discourages voters of color, as well as the elderly and disabled.
There were no substantial allegations of fraud in Texas in last year's election and Republicans maintained their three-decade grip on all statewide offices.
Republican state lawmakers across the country have pursued more stringent voting restrictions following former President Donald Trump's false claim that he lost the 2020 election because of widespread election fraud.
So far, 14 other U.S. states have enacted 22 laws this year that make it more difficult for Americans to vote, according to a report released on Friday by the Brennan Center for Justice.
SCRAPPING INNOVATIONS
The Texas bill would strike down innovations used during last November's election because of the coronavirus pandemic.
Drive-through voting, credited with helping spark record voter turnout in Houston, will no longer be allowed. The bill also limits early hours to vote, makes it more difficult to cast absentee ballots and does away with drop boxes.
The bill would forbid voting on Sundays before 1 p.m. Critics called that a blatant strike on the "Souls to the Polls" effort at Black churches, when worshippers have traditionally traveled in caravans to polling sites to cast votes after morning services.
The legislation would also scrap 24-hour polling sites and ban mobile units or temporary structures from being used as polling places.
The bill would also make it easier for courts to overturn elections where fraud is alleged. Instead of requiring evidence that fraudulent votes directly resulted in a candidate's win, a court could overturn an election if the number of fraudulent votes is equal to the margin of victory, regardless of who those fraudulent votes were cast for.
New requirements would take effect as well for Texans who want to vote through the mail and election officials would be barred from sending unsolicited mail-in ballot applications to voters. The legislation would also make the removal of disruptive, partisan poll watchers more difficult.
Democratic President Joe Biden said in a statement on Saturday that the legislation in Texas "attacks the sacred right to vote."
Earlier this month, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots.
'IN THEIR PLACE'
Members of the Texas Legislative Black Caucus and the state's NAACP civil rights organization said the bill hearkened back to the Jim Crow-era, when laws were enacted to block Blacks from voting and to maintain racial segregation in the U.S. South from the late 19th century into the 1960s.
"This is a clear case of taking power and putting minorities in their place so they can never share power in Texas," Gary Bledsoe, president of the state's NAACP chapter, said ahead of the vote.
Julian Castro, secretary of housing and urban development under former President Barack Obama and a former mayor of San Antonio, told a Democratic Party news conference that the rapidly shifting demographics of Texas had Republicans "running scared because they know that this state is changing and they're afraid of the consequences."
Hispanics are forecast by the official Texas state demographer to surpass non-Hispanic whites as the largest group later this year.
Former Democratic Representative Beto O'Rourke, speaking during the same news conference, urged the U.S. Congress to pass expanded voting rights to stymie the vote-restriction efforts in Republican-controlled states, so that the United States would not revert to "Jim Crow 2.0."
Texas lawmakers to vote on Republican-backed voting limits
Republican-backed bills restricting vote advance across U.S., report finds
Business coalitions urge Texas lawmakers to reject voting restrictions
(Reporting by Brad Brooks in San Antonio and Peter Szekely in New York; Editing by Peter Cooney)
((Peter.Szekely@thomsonreuters.com; (646) 223-5302; Reuters Messaging: @peszeke))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earlier this month, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. New requirements would take effect as well for Texans who want to vote through the mail and election officials would be barred from sending unsolicited mail-in ballot applications to voters. Julian Castro, secretary of housing and urban development under former President Barack Obama and a former mayor of San Antonio, told a Democratic Party news conference that the rapidly shifting demographics of Texas had Republicans "running scared because they know that this state is changing and they're afraid of the consequences."
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Earlier this month, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. By Brad Brooks SAN ANTONIO, May 30 (Reuters) - Democrats in the Texas House of Representatives boycotted a legislative session late Sunday, blocking a vote on an election reform bill critics say would make it harder for Blacks and Hispanics to vote. With just over an hour before a midnight deadline to pass the measure, Republican members of the House said that Democrats had walked out to deny the House a quorum for a vote.
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Earlier this month, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. By Brad Brooks SAN ANTONIO, May 30 (Reuters) - Democrats in the Texas House of Representatives boycotted a legislative session late Sunday, blocking a vote on an election reform bill critics say would make it harder for Blacks and Hispanics to vote. Members of the Texas Legislative Black Caucus and the state's NAACP civil rights organization said the bill hearkened back to the Jim Crow-era, when laws were enacted to block Blacks from voting and to maintain racial segregation in the U.S. South from the late 19th century into the 1960s.
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Earlier this month, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. By Brad Brooks SAN ANTONIO, May 30 (Reuters) - Democrats in the Texas House of Representatives boycotted a legislative session late Sunday, blocking a vote on an election reform bill critics say would make it harder for Blacks and Hispanics to vote. Texas Governor Greg Abbott, who strongly supports the bill, said in a late Sunday emailed statement that the bill would be added to a special legislative session planned for this fall.
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4447.0
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2021-05-30 00:00:00 UTC
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Texas legislature close to approving measure to make voting more difficult
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AAL
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https://www.nasdaq.com/articles/texas-legislature-close-to-approving-measure-to-make-voting-more-difficult-2021-05-30
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nan
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nan
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May 30 (Reuters) - The Texas Legislature on Sunday moved closer to approving a sweeping bill that curtails voting opportunities in the country's second most-populous state, as Republicans fast-tracked the measure before the legislative session closes.
After an overnight debate, the state Senate voted along party lines to pass the bill, whose provisions include limiting early hours to cast ballots, banning drive-through polling sites and placing new requirements on voters.
The measure, which follows Republican moves to impose voting restrictions in other states, now goes to the House, also dominated by Republicans, which has placed the bill on its calendar for late Sunday afternoon, with the legislative session due to expire at midnight.
Republican Governor Greg Abbott has indicated he will sign the bill into law.
The bill would bar Texans from using 24-hour polling sites or cast ballots at drive-through polling places located in parking garages and lots. It also would ban mobile units or temporary structures from being used as polling places.
The legislation also places new requirements on Texans who want to vote through the mail and would bar election officials from sending unsolicited mail-in ballot applications to voters. It also would make the removal of disruptive poll watchers more difficult.
President Joe Biden said in a statement on Saturday that the legislation in Texas "attacks the sacred right to vote."
"It’s wrong and un-American," Biden said. "In the 21st century, we should be making it easier, not harder, for every eligible voter to vote."
Republican lawmakers across the nation have pursued more stringent voting restrictions in the wake of former President Donald Trump's false claims of election fraud. So far, 14 other U.S. states have enacted 22 laws this year that make it more difficult for Americans to vote, according to a report released on Friday.
Earlier this month, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots.
Texas lawmakers to vote on Republican-backed voting limits
Republican-backed bills restricting vote advance across U.S., report finds
Business coalitions urge Texas lawmakers to reject voting restrictions
(Reporting by Peter Szekely in New York and Brendan O'Brien in Chicago;)
((Peter.Szekely@thomsonreuters.com; (646) 223-5302; Reuters Messaging: @peszeke))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earlier this month, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. May 30 (Reuters) - The Texas Legislature on Sunday moved closer to approving a sweeping bill that curtails voting opportunities in the country's second most-populous state, as Republicans fast-tracked the measure before the legislative session closes. After an overnight debate, the state Senate voted along party lines to pass the bill, whose provisions include limiting early hours to cast ballots, banning drive-through polling sites and placing new requirements on voters.
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Earlier this month, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. After an overnight debate, the state Senate voted along party lines to pass the bill, whose provisions include limiting early hours to cast ballots, banning drive-through polling sites and placing new requirements on voters. The bill would bar Texans from using 24-hour polling sites or cast ballots at drive-through polling places located in parking garages and lots.
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Earlier this month, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. After an overnight debate, the state Senate voted along party lines to pass the bill, whose provisions include limiting early hours to cast ballots, banning drive-through polling sites and placing new requirements on voters. The measure, which follows Republican moves to impose voting restrictions in other states, now goes to the House, also dominated by Republicans, which has placed the bill on its calendar for late Sunday afternoon, with the legislative session due to expire at midnight.
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Earlier this month, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. After an overnight debate, the state Senate voted along party lines to pass the bill, whose provisions include limiting early hours to cast ballots, banning drive-through polling sites and placing new requirements on voters. The bill would bar Texans from using 24-hour polling sites or cast ballots at drive-through polling places located in parking garages and lots.
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4448.0
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2021-05-28 00:00:00 UTC
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ANALYSIS-Pilot training puzzle tests U.S. airlines as travel takes off
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AAL
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https://www.nasdaq.com/articles/analysis-pilot-training-puzzle-tests-u.s.-airlines-as-travel-takes-off-2021-05-28
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nan
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nan
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By Tracy Rucinski
CHICAGO, May 28 (Reuters) - As millions of Americans gear up for a summer of vacation flights, Ben Wallander is hitting the books and the simulator.
The 27-year-old is one of hundreds of pilots Delta Air Lines DAL.N and American Airlines AAL.O are rushing to train after a surge in travel bookings spurred by COVID-19 vaccinations.
Thousands of pilots at Delta and American have lost their active status, which lapses after 90 days of not flying, at some point over the past year as the coronavirus pandemic slammed the brakes on air travel and brought airlines to their knees.
But a long U.S. Memorial Day weekend from Friday is expected to usher in a forecast surge in summer leisure travel that will test the ability of airlines to manage a long-awaited comeback.
While the airlines have already retrained many of their pilots, the travel revival has forced Delta and American to seek more simulators and flight instructors to expedite training and unblock a logjam, people with knowledge of the matter said.
Both airlines are beneficiaries of three COVID-19 relief packages worth $54 billion mostly in free money the industry argued was necessary to keep workers like pilots with costly training requirements ready.
Analysts warn that failing to ensure a smooth travel recovery could lead to flight cancellations and delays in generating cash needed to repay pandemic debt.
"It's quite the puzzle," McKinsey aviation consultant Vik Krishnan said of the pilot training logistics, likening them to a game of Tetris.
Delta and American must train pilots who flew on fleets retired due to the pandemic as well as those filling vacancies on different aircraft types after colleagues took buyouts, in addition to annual recurrent training requirements.
"Our pilot training has remained on track with our scheduled operational plans and continues to be," Delta spokesman Anthony Black said.
American spokeswoman Sarah Jantz said: "We have the training capacity ready and are able to meet the anticipated increase in flying."
BOOM AND BUST
Before the coronavirus crisis, global air travel was growing at a record 5% a year, generating a need for 804,000 pilots over the next 20 years, based on Boeing BA.N estimates.
But volatility in pilot availability has plagued the airline industry, which lurched from worldwide shortages before COVID-19 to unemployment or furlough schemes during the pandemic and now renewed concerns about bottlenecks in the key U.S. market.
The problem has snowballed during the industry's worst ever crisis, leading to yet another squeeze.
Delta has around 12,600 pilots and has posted 1,600 internal positions for captain and first officer, memos show.
Wallander, an Airbus AIR.PA A220 pilot, was recalled by Delta in March, but is not scheduled for training until June.
He told Reuters he has decided to stick with the A220 for his return to the cockpit as this means he does not "have to go through a long training course".
Courses can range from days to weeks depending on how long pilots have been away and whether they are upgrading positions or switching plane types.
All pilots must spend time in simulators, of which airlines own a finite number, followed by flights alongside a training captain, who signs off on their return.
However, many of these "check" pilots in turn need training on different aircraft types following fleet changes or have retired, leaving a gap in knowledge and resources.
"All of this creates a cascading effect on training," said Dennis Tajer, spokesman for the Allied Pilots Association, which represents 15,000 pilots at American.
United Airlines UAL.O, the other major international U.S. airline, struck a deal with its pilots union that helped nearly 12,000 maintain active flying status through the pandemic.
Among measures to boost training, American is renting simulators owned by Canada's CAE CAE.TO in its Texas home base while Delta is conducting more training beyond its Atlanta base and adjusting briefings around simulator time to squeeze in about 25% more sessions per day, sources said.
American plans to fly around 90% of its pre-pandemic domestic schedule this summer. Delta is also ramping up flights and expects its planes to be about 90% full this weekend.
"We slammed on the brakes really fast and now we're coming back even quicker," Chris Riggins, spokesman for the Air Line Pilots Association at Delta, said.
FOCUS-Last in, first out: Female pilots bear brunt of airline job cuts
(Reporting by Tracy Rucinski, Editing by Tim Hepher and Alexander Smith)
((tracy.rucinski@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 27-year-old is one of hundreds of pilots Delta Air Lines DAL.N and American Airlines AAL.O are rushing to train after a surge in travel bookings spurred by COVID-19 vaccinations. Thousands of pilots at Delta and American have lost their active status, which lapses after 90 days of not flying, at some point over the past year as the coronavirus pandemic slammed the brakes on air travel and brought airlines to their knees. But a long U.S. Memorial Day weekend from Friday is expected to usher in a forecast surge in summer leisure travel that will test the ability of airlines to manage a long-awaited comeback.
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The 27-year-old is one of hundreds of pilots Delta Air Lines DAL.N and American Airlines AAL.O are rushing to train after a surge in travel bookings spurred by COVID-19 vaccinations. Thousands of pilots at Delta and American have lost their active status, which lapses after 90 days of not flying, at some point over the past year as the coronavirus pandemic slammed the brakes on air travel and brought airlines to their knees. "We slammed on the brakes really fast and now we're coming back even quicker," Chris Riggins, spokesman for the Air Line Pilots Association at Delta, said.
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The 27-year-old is one of hundreds of pilots Delta Air Lines DAL.N and American Airlines AAL.O are rushing to train after a surge in travel bookings spurred by COVID-19 vaccinations. Thousands of pilots at Delta and American have lost their active status, which lapses after 90 days of not flying, at some point over the past year as the coronavirus pandemic slammed the brakes on air travel and brought airlines to their knees. While the airlines have already retrained many of their pilots, the travel revival has forced Delta and American to seek more simulators and flight instructors to expedite training and unblock a logjam, people with knowledge of the matter said.
|
The 27-year-old is one of hundreds of pilots Delta Air Lines DAL.N and American Airlines AAL.O are rushing to train after a surge in travel bookings spurred by COVID-19 vaccinations. Thousands of pilots at Delta and American have lost their active status, which lapses after 90 days of not flying, at some point over the past year as the coronavirus pandemic slammed the brakes on air travel and brought airlines to their knees. All pilots must spend time in simulators, of which airlines own a finite number, followed by flights alongside a training captain, who signs off on their return.
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4449.0
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2021-05-27 00:00:00 UTC
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Chile royalty bill could risk 1 mln T of future copper output, Goldman Sachs says
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AAL
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https://www.nasdaq.com/articles/chile-royalty-bill-could-risk-1-mln-t-of-future-copper-output-goldman-sachs-says-2021-05
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nan
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nan
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SANTIAGO, May 27 (Reuters) - A Chilean bill to ratchet up royalties on mining companies in the world's top copper producing nation could, if unaltered, put at risk some 1 million tonnes of annual output, representing around 4% of global copper supply, Goldman Sachs said in a note.
The legislation, which faces multiple procedural hurdles, including a discussion and vote in the senate, would impose a royalty as high as 75% on sales of copper as prices rise to pay for social programs during the COVID-19 pandemic, analysts say.
Goldman Sachs said more than half of the foreign-owned copper mines in Chile have tax stability agreements that expire in 2023, limiting immediate exposure to the bill's eventual passage. But future mine development would be in jeopardy, the note dated May 26 said.
"All else equal, we believe fiscal uncertainty will act as an overhang on mining companies’ decision-making processes to sanction new projects, which could further exacerbate our expectations of a longer-term copper supply gap," Goldman Sachs said.
Mineral-rich Chile currently churns out 28% of the world's copper but has for more than a decade lost marketshare, hobbled by declining ore grades and ageing projects.
The royalty bill lands as political risk in the world's top producing region has soared, with higher taxes on miners proposed both in Chile and Peru, the world's No.2 producer of the metal.
Given the extent of their exposure to the Chilean market, Goldman said Anglo-American AAL.L, BHP BHP.AX, BHPB.L, Antofagasta ANTO.L and Lundin would likely take the biggest hit in 2024, after the tax agreements expire.
The global investment bank expects the copper price to be $4.50/lb in 2024, which, under the legislation as currently written, would prompt a royalty rate of up to 75%.
That figure, however, could vary depending on the outcome of the Senate debate, and the potential modification of other laws that govern taxation of miners in Chile.
Chile's Senate is expected to take up the royalty bill in June.
(Reporting by Dave Sherwood; editing by Barbara Lewis)
((dave.sherwood@thomsonreuters.com; +56 9 9138 1047, +56 2 2370 4224; Reuters Messaging: dave.sherwood.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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Given the extent of their exposure to the Chilean market, Goldman said Anglo-American AAL.L, BHP BHP.AX, BHPB.L, Antofagasta ANTO.L and Lundin would likely take the biggest hit in 2024, after the tax agreements expire. The legislation, which faces multiple procedural hurdles, including a discussion and vote in the senate, would impose a royalty as high as 75% on sales of copper as prices rise to pay for social programs during the COVID-19 pandemic, analysts say. Goldman Sachs said more than half of the foreign-owned copper mines in Chile have tax stability agreements that expire in 2023, limiting immediate exposure to the bill's eventual passage.
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Given the extent of their exposure to the Chilean market, Goldman said Anglo-American AAL.L, BHP BHP.AX, BHPB.L, Antofagasta ANTO.L and Lundin would likely take the biggest hit in 2024, after the tax agreements expire. SANTIAGO, May 27 (Reuters) - A Chilean bill to ratchet up royalties on mining companies in the world's top copper producing nation could, if unaltered, put at risk some 1 million tonnes of annual output, representing around 4% of global copper supply, Goldman Sachs said in a note. Goldman Sachs said more than half of the foreign-owned copper mines in Chile have tax stability agreements that expire in 2023, limiting immediate exposure to the bill's eventual passage.
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Given the extent of their exposure to the Chilean market, Goldman said Anglo-American AAL.L, BHP BHP.AX, BHPB.L, Antofagasta ANTO.L and Lundin would likely take the biggest hit in 2024, after the tax agreements expire. SANTIAGO, May 27 (Reuters) - A Chilean bill to ratchet up royalties on mining companies in the world's top copper producing nation could, if unaltered, put at risk some 1 million tonnes of annual output, representing around 4% of global copper supply, Goldman Sachs said in a note. Goldman Sachs said more than half of the foreign-owned copper mines in Chile have tax stability agreements that expire in 2023, limiting immediate exposure to the bill's eventual passage.
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Given the extent of their exposure to the Chilean market, Goldman said Anglo-American AAL.L, BHP BHP.AX, BHPB.L, Antofagasta ANTO.L and Lundin would likely take the biggest hit in 2024, after the tax agreements expire. SANTIAGO, May 27 (Reuters) - A Chilean bill to ratchet up royalties on mining companies in the world's top copper producing nation could, if unaltered, put at risk some 1 million tonnes of annual output, representing around 4% of global copper supply, Goldman Sachs said in a note. The global investment bank expects the copper price to be $4.50/lb in 2024, which, under the legislation as currently written, would prompt a royalty rate of up to 75%.
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4450.0
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2021-05-27 00:00:00 UTC
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AAL July 9th Options Begin Trading
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AAL
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https://www.nasdaq.com/articles/aal-july-9th-options-begin-trading-2021-05-27
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 9th contracts and identified one put and one call contract of particular interest.
The put contract at the $21.00 strike price has a current bid of 41 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $21.00, but will also collect the premium, putting the cost basis of the shares at $20.59 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $23.80/share today.
Because the $21.00 strike represents an approximate 12% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. 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 1.95% return on the cash commitment, or 16.57% 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 $21.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $27.50 strike price has a current bid of 21 cents. If an investor was to purchase shares of AAL stock at the current price level of $23.80/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $27.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 16.43% if the stock gets called away at the July 9th 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 $27.50 strike highlighted in red:
Considering the fact that the $27.50 strike represents an approximate 16% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.88% boost of extra return to the investor, or 7.49% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $23.80) to be 74%. 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 $27.50 strike highlighted in red: Considering the fact that the $27.50 strike represents an approximate 16% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 9th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $27.50 strike highlighted in red: Considering the fact that the $27.50 strike represents an approximate 16% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 9th 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 $27.50 strike highlighted in red: Considering the fact that the $27.50 strike represents an approximate 16% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 9th 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 $27.50 strike highlighted in red: Considering the fact that the $27.50 strike represents an approximate 16% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 9th contracts and identified one put and one call contract of particular interest.
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4451.0
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2021-05-27 00:00:00 UTC
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Pre-Market Most Active for May 27, 2021 : AMC, SOS, F, BILI, SQQQ, IVR, LIZI, TAK, CAN, QQQ, AAL, GE
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-may-27-2021-%3A-amc-sos-f-bili-sqqq-ivr-lizi-tak-can-qqq-aal-ge
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -46 to 13,656.74. The total Pre-Market volume is currently 16,741,781 shares traded.
The following are the most active stocks for the pre-market session:
AMC Entertainment Holdings, Inc. (AMC) is -0.86 at $18.70, with 7,268,257 shares traded. AMC's current last sale is 467.5% of the target price of $4.
SOS Limited (SOS) is +0.5601 at $3.82, with 3,393,541 shares traded.
Ford Motor Company (F) is +0.38 at $14.28, with 2,521,574 shares traded., following a 52-week high recorded in prior regular session.
Bilibili Inc. (BILI) is +0.08 at $103.68, with 1,871,794 shares traded. As reported by Zacks, the current mean recommendation for BILI is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is +0.15 at $11.20, with 1,723,207 shares traded. This represents a 7.28% increase from its 52 Week Low.
INVESCO MORTGAGE CAPITAL INC (IVR) is -0.18 at $3.40, with 1,446,164 shares traded. IVR's current last sale is 123.64% of the target price of $2.75.
LIZHI INC. (LIZI) is -0.55 at $6.29, with 1,354,082 shares traded. LIZI's current last sale is 69.89% of the target price of $9.
Takeda Pharmaceutical Company Limited (TAK) is +0.11 at $17.32, with 1,006,384 shares traded. TAK's current last sale is 82.48% of the target price of $21.
Canaan Inc. (CAN) is +0.44 at $9.10, with 860,120 shares traded.
Invesco QQQ Trust, Series 1 (QQQ) is -1.52 at $332.61, with 577,264 shares traded. This represents a 48.53% increase from its 52 Week Low.
American Airlines Group, Inc. (AAL) is +0.13 at $24.03, with 551,936 shares traded. AAL's current last sale is 150.19% of the target price of $16.
General Electric Company (GE) is +0.12 at $13.52, with 454,029 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021. The consensus EPS forecast is $0.04. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +0.13 at $24.03, with 551,936 shares traded. AAL's current last sale is 150.19% of the target price of $16. Ford Motor Company (F) is +0.38 at $14.28, with 2,521,574 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.13 at $24.03, with 551,936 shares traded. AAL's current last sale is 150.19% of the target price of $16. SOS Limited (SOS) is +0.5601 at $3.82, with 3,393,541 shares traded.
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American Airlines Group, Inc. (AAL) is +0.13 at $24.03, with 551,936 shares traded. AAL's current last sale is 150.19% of the target price of $16. The total Pre-Market volume is currently 16,741,781 shares traded.
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American Airlines Group, Inc. (AAL) is +0.13 at $24.03, with 551,936 shares traded. AAL's current last sale is 150.19% of the target price of $16. The NASDAQ 100 Pre-Market Indicator is down -46 to 13,656.74.
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4452.0
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2021-05-26 00:00:00 UTC
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Pre-Market Most Active for May 26, 2021 : AMC, NBRV, F, GOTU, RLX, LOTZ, SQQQ, GME, PDD, NOK, AAL, LI
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-may-26-2021-%3A-amc-nbrv-f-gotu-rlx-lotz-sqqq-gme-pdd-nok-aal-li
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is up 53.78 to 13,711.51. The total Pre-Market volume is currently 17,431,411 shares traded.
The following are the most active stocks for the pre-market session:
AMC Entertainment Holdings, Inc. (AMC) is +1.27 at $17.68, with 10,963,726 shares traded. AMC's current last sale is 442% of the target price of $4.
Nabriva Therapeutics plc (NBRV) is +0.67 at $2.15, with 8,563,049 shares traded. NBRV's current last sale is 57.33% of the target price of $3.75.
Ford Motor Company (F) is +0.28 at $13.09, with 2,022,113 shares traded. As reported by Zacks, the current mean recommendation for F is in the "buy range".
GSX Techedu Inc. (GOTU) is -2.95 at $17.00, with 1,483,599 shares traded. GOTU's current last sale is 36.17% of the target price of $47.
RLX Technology Inc. (RLX) is -1.08 at $9.94, with 1,479,251 shares traded. As reported by Zacks, the current mean recommendation for RLX is in the "strong buy range".
CarLotz, Inc. (LOTZ) is -0.99 at $4.22, with 965,073 shares traded. As reported by Zacks, the current mean recommendation for LOTZ is in the "strong buy range".
ProShares UltraPro Short QQQ (SQQQ) is -0.15 at $11.01, with 730,944 shares traded. This represents a 5.46% increase from its 52 Week Low.
Gamestop Corporation (GME) is +17.28 at $226.71, with 650,549 shares traded. GME's current last sale is 906.84% of the target price of $25.
Pinduoduo Inc. (PDD) is +7.41 at $138.23, with 648,936 shares traded. As reported by Zacks, the current mean recommendation for PDD is in the "buy range".
Nokia Corporation (NOK) is -0.06 at $4.94, with 480,685 shares traded. NOK's current last sale is 86.67% of the target price of $5.7.
American Airlines Group, Inc. (AAL) is +0.37 at $23.58, with 300,007 shares traded. AAL's current last sale is 147.38% of the target price of $16.
Li Auto Inc. (LI) is +0.16 at $20.15, with 279,406 shares traded. As reported by Zacks, the current mean recommendation for LI is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +0.37 at $23.58, with 300,007 shares traded. AAL's current last sale is 147.38% of the target price of $16. As reported by Zacks, the current mean recommendation for RLX is in the "strong buy range".
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American Airlines Group, Inc. (AAL) is +0.37 at $23.58, with 300,007 shares traded. AAL's current last sale is 147.38% of the target price of $16. As reported by Zacks, the current mean recommendation for RLX is in the "strong buy range".
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American Airlines Group, Inc. (AAL) is +0.37 at $23.58, with 300,007 shares traded. AAL's current last sale is 147.38% of the target price of $16. The total Pre-Market volume is currently 17,431,411 shares traded.
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American Airlines Group, Inc. (AAL) is +0.37 at $23.58, with 300,007 shares traded. AAL's current last sale is 147.38% of the target price of $16. The NASDAQ 100 Pre-Market Indicator is up 53.78 to 13,711.51.
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4453.0
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2021-05-25 00:00:00 UTC
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Why Airline Stocks Are Higher Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-higher-today-2021-05-25
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nan
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nan
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What happened
A number of airline executives are making the rounds at an investment conference this week, and their tone is optimistic. That, coupled with a new milestone in the return of air traffic following the pandemic, has airline stocks gaining altitude on Tuesday.
Shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) were each up more than 5%, while Delta Air Lines (NYSE: DAL) and JetBlue Airways (NASDAQ: JBLU) were up more than 4%. The enthusiasm even extended to Brazil-based, but New York-traded, Azul (NYSE: AZUL), which was up as much as 5.9% as of this writing.
So what
Airline stocks endured a miserable 2020 as the pandemic quelched demand for air travel, but the sector has mostly been on the rise since the initial vaccine rollout. Passengers have indeed been returning. On Sunday, the number of U.S. air passengers flying topped 90% of the 2019 figure for the same day, the first time we've hit that mark since the pandemic began.
Image source: Getty Images.
Speaking at a conference organized by Wolfe Research, airline execs sounded optimistic that the rebound is sustainable. Delta president Glen Hauenstein said the recovery has progressed faster than the airline had expected, while United management said the airline was closing in on profitability.
American perhaps provided the commentary investors most want to hear, with CFO Derek Kerr saying that business travel and international, two segments expected to lag leisure for the time being, are showing "encouraging signs." Those business lines tend to be the most lucrative part of the operation for large carriers like American, Delta, and United, and a quicker-than-expected recovery would help the airlines return to profitability faster.
There was no company-specific news on Azul, and in fact, the COVID-19 pandemic in its native Brazil is still raging. But Azul is among the healthiest airlines in Latin America, and the company has reportedly engaged with advisors to explore ways to take drive consolidation in the region.
In a statement, Azul CEO John Rodgerson said the airline "is emerging from this crisis in a leadership position in terms of liquidity, network recovery and competitive advantages."
Now what
The airlines have indeed come a long way since the start of the pandemic, but the question for investors should be whether a lot of that progress is already priced in. On an enterprise value basis, factoring in both market capitalization and debt, American and United are valued today at a premium to where they were prior to the pandemic.
Given that pandemic-related risks still remain, and factoring in the recovery we've already seen, it is hard to predict that airline stock prices will continue to soar in the months to come. For long-term investors able to look past any turbulence on the immediate horizon, Delta is a well-run company with a relatively affordable stock. Just be sure to exercise caution, even if it does appear the pandemic has receded in some countries.
10 stocks we like better than United Airlines Holdings
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Lou Whiteman owns shares of Delta Air Lines. The Motley Fool recommends Delta Air Lines and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) were each up more than 5%, while Delta Air Lines (NYSE: DAL) and JetBlue Airways (NASDAQ: JBLU) were up more than 4%. American perhaps provided the commentary investors most want to hear, with CFO Derek Kerr saying that business travel and international, two segments expected to lag leisure for the time being, are showing "encouraging signs." Those business lines tend to be the most lucrative part of the operation for large carriers like American, Delta, and United, and a quicker-than-expected recovery would help the airlines return to profitability faster.
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Shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) were each up more than 5%, while Delta Air Lines (NYSE: DAL) and JetBlue Airways (NASDAQ: JBLU) were up more than 4%. Those business lines tend to be the most lucrative part of the operation for large carriers like American, Delta, and United, and a quicker-than-expected recovery would help the airlines return to profitability faster. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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Shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) were each up more than 5%, while Delta Air Lines (NYSE: DAL) and JetBlue Airways (NASDAQ: JBLU) were up more than 4%. Delta president Glen Hauenstein said the recovery has progressed faster than the airline had expected, while United management said the airline was closing in on profitability. 10 stocks we like better than United Airlines Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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Shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) were each up more than 5%, while Delta Air Lines (NYSE: DAL) and JetBlue Airways (NASDAQ: JBLU) were up more than 4%. Passengers have indeed been returning. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Lou Whiteman owns shares of Delta Air Lines.
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4454.0
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2021-05-24 00:00:00 UTC
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United Airlines, union agree against mandatory COVID-19 vaccinations for pilots
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AAL
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https://www.nasdaq.com/articles/united-airlines-union-agree-against-mandatory-covid-19-vaccinations-for-pilots-2021-05-24
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nan
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nan
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May 24 (Reuters) - United Airlines UAL.O and its pilots' union have reached an agreement to prohibit the airline from mandating COVID-19 vaccinations to its pilots, the Air Line Pilots Association said on Monday.
"Since the COVID vaccination is not mandatory, pilots who elect not to be vaccinated will not be subject to any discipline," the agreement stated.
United's chief executive officer, Scott Kirby, had told workers at a meeting in January that the company may make the vaccine mandatory for employees and urged other companies to do the same.
The agreement between the airline and the union also adds that those pilots who have been vaccinated would be eligible for extra pay.
Earlier this month, Delta Air Lines DAL.N said it would require all new hires in the United States to be vaccinated against the coronavirus.
American Airlines AAL.O had said in January it does not plan to make vaccinations mandatory for pilots and other employees unless it was mandatory for entry into certain destinations.
While private U.S. companies can require employees to get vaccinated against COVID-19, experts have said they could put themselves at risk of legal and cultural backlash if they do so.
(Reporting by Radhika Anilkumar in Bengaluru and Tracy Rucinski; Editing by Ramakrishnan M.)
((Radhika.Anilkumar@thomsonreuters.com; +91 8067490824;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O had said in January it does not plan to make vaccinations mandatory for pilots and other employees unless it was mandatory for entry into certain destinations. The agreement between the airline and the union also adds that those pilots who have been vaccinated would be eligible for extra pay. Earlier this month, Delta Air Lines DAL.N said it would require all new hires in the United States to be vaccinated against the coronavirus.
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American Airlines AAL.O had said in January it does not plan to make vaccinations mandatory for pilots and other employees unless it was mandatory for entry into certain destinations. May 24 (Reuters) - United Airlines UAL.O and its pilots' union have reached an agreement to prohibit the airline from mandating COVID-19 vaccinations to its pilots, the Air Line Pilots Association said on Monday. United's chief executive officer, Scott Kirby, had told workers at a meeting in January that the company may make the vaccine mandatory for employees and urged other companies to do the same.
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American Airlines AAL.O had said in January it does not plan to make vaccinations mandatory for pilots and other employees unless it was mandatory for entry into certain destinations. May 24 (Reuters) - United Airlines UAL.O and its pilots' union have reached an agreement to prohibit the airline from mandating COVID-19 vaccinations to its pilots, the Air Line Pilots Association said on Monday. "Since the COVID vaccination is not mandatory, pilots who elect not to be vaccinated will not be subject to any discipline," the agreement stated.
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American Airlines AAL.O had said in January it does not plan to make vaccinations mandatory for pilots and other employees unless it was mandatory for entry into certain destinations. May 24 (Reuters) - United Airlines UAL.O and its pilots' union have reached an agreement to prohibit the airline from mandating COVID-19 vaccinations to its pilots, the Air Line Pilots Association said on Monday. United's chief executive officer, Scott Kirby, had told workers at a meeting in January that the company may make the vaccine mandatory for employees and urged other companies to do the same.
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4455.0
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2021-05-24 00:00:00 UTC
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Noteworthy Monday Option Activity: AAL, APPS, SBUX
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AAL
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-aal-apps-sbux-2021-05-24
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 152,405 contracts have traded so far, representing approximately 15.2 million underlying shares. That amounts to about 46.1% of AAL's average daily trading volume over the past month of 33.1 million shares. Especially high volume was seen for the $18 strike put option expiring November 19, 2021, with 10,868 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $18 strike highlighted in orange:
Digital Turbine Inc (Symbol: APPS) options are showing a volume of 12,511 contracts thus far today. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 44.6% of APPS's average daily trading volume over the past month, of 2.8 million shares. Particularly high volume was seen for the $80 strike call option expiring May 28, 2021, with 809 contracts trading so far today, representing approximately 80,900 underlying shares of APPS. Below is a chart showing APPS's trailing twelve month trading history, with the $80 strike highlighted in orange:
And Starbucks Corp. (Symbol: SBUX) options are showing a volume of 29,075 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 44.4% of SBUX's average daily trading volume over the past month, of 6.5 million shares. Particularly high volume was seen for the $111 strike call option expiring June 11, 2021, with 4,759 contracts trading so far today, representing approximately 475,900 underlying shares of SBUX. Below is a chart showing SBUX's trailing twelve month trading history, with the $111 strike highlighted in orange:
For the various different available expirations for AAL options, APPS options, or SBUX 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 put option expiring November 19, 2021, with 10,868 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 152,405 contracts have traded so far, representing approximately 15.2 million underlying shares. That amounts to about 46.1% of AAL's average daily trading volume over the past month of 33.1 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 152,405 contracts have traded so far, representing approximately 15.2 million underlying shares. That amounts to about 46.1% of AAL's average daily trading volume over the past month of 33.1 million shares. Especially high volume was seen for the $18 strike put option expiring November 19, 2021, with 10,868 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 152,405 contracts have traded so far, representing approximately 15.2 million underlying shares. That amounts to about 46.1% of AAL's average daily trading volume over the past month of 33.1 million shares. Especially high volume was seen for the $18 strike put option expiring November 19, 2021, with 10,868 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL.
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Especially high volume was seen for the $18 strike put option expiring November 19, 2021, with 10,868 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL. Below is a chart showing SBUX's trailing twelve month trading history, with the $111 strike highlighted in orange: For the various different available expirations for AAL options, APPS options, or SBUX options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 152,405 contracts have traded so far, representing approximately 15.2 million underlying shares.
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4456.0
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2021-05-23 00:00:00 UTC
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Coal miner Cerrejon to halt operations after blockades cut gasoline supplies
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AAL
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https://www.nasdaq.com/articles/coal-miner-cerrejon-to-halt-operations-after-blockades-cut-gasoline-supplies-2021-05-23
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nan
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nan
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BOGOTA, May 23 (Reuters) - Colombian coal mine Cerrejon will halt operations because of two blockades that have prevented from it bringing in supplies of gasoline, it said on Sunday, the latest trouble for the major miner.
Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, has had repeated disagreements with nearby Wayuu indigenous communities and its largest union, which held a three-month strike last year.
"Cerrejon is currently suffering two blockades, led by people unconnected to the company, which have impeded the transport of coal and the delivery of water to communities and made the arrival of essential supplies for mining operations impossible," the company said in a statement.
"The lack of gasoline, caused by these blockades, has meant Cerrejon cannot carry out its mining activities because of force majeure and in consequence, from today, will stop operations."
The first blockade, which the company says is led by a group of ex-workers who were let go in February, began on May 5 on Cerrejon's railway line. The workers have rejected dialogue with the company, it said.
People from the Media Luna community are responsible for the second blockade on a road out of its port, Cerrejon said.
Worker and contractor contracts will be suspended under the force majeure, it added.
The announcement comes as other blockades, associated with nearly a month of anti-government protests, cause transportation problems around Colombia.
The barricades have cost the economy more than 10.3 trillion pesos, about $2.75 billion, the government has said.
The blockades have halted the export of 200,000 tonnes of coal and caused 80 billion pesos in losses for that industry, the Mines and Energy Ministry said on Twitter on Saturday.
Cerrejon produced 12.4 million tonnes of coal in 2020, down almost 52% from 2019, and its exports fell to their lowest level in the past 18 years amid coronavirus restrictions and falling global demand for coal.
(Reporting by Julia Symmes Cobb; Editing by Peter Cooney)
((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, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, has had repeated disagreements with nearby Wayuu indigenous communities and its largest union, which held a three-month strike last year. BOGOTA, May 23 (Reuters) - Colombian coal mine Cerrejon will halt operations because of two blockades that have prevented from it bringing in supplies of gasoline, it said on Sunday, the latest trouble for the major miner. "The lack of gasoline, caused by these blockades, has meant Cerrejon cannot carry out its mining activities because of force majeure and in consequence, from today, will stop operations."
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Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, has had repeated disagreements with nearby Wayuu indigenous communities and its largest union, which held a three-month strike last year. BOGOTA, May 23 (Reuters) - Colombian coal mine Cerrejon will halt operations because of two blockades that have prevented from it bringing in supplies of gasoline, it said on Sunday, the latest trouble for the major miner. "Cerrejon is currently suffering two blockades, led by people unconnected to the company, which have impeded the transport of coal and the delivery of water to communities and made the arrival of essential supplies for mining operations impossible," the company said in a statement.
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Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, has had repeated disagreements with nearby Wayuu indigenous communities and its largest union, which held a three-month strike last year. BOGOTA, May 23 (Reuters) - Colombian coal mine Cerrejon will halt operations because of two blockades that have prevented from it bringing in supplies of gasoline, it said on Sunday, the latest trouble for the major miner. "Cerrejon is currently suffering two blockades, led by people unconnected to the company, which have impeded the transport of coal and the delivery of water to communities and made the arrival of essential supplies for mining operations impossible," the company said in a statement.
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Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, has had repeated disagreements with nearby Wayuu indigenous communities and its largest union, which held a three-month strike last year. BOGOTA, May 23 (Reuters) - Colombian coal mine Cerrejon will halt operations because of two blockades that have prevented from it bringing in supplies of gasoline, it said on Sunday, the latest trouble for the major miner. "Cerrejon is currently suffering two blockades, led by people unconnected to the company, which have impeded the transport of coal and the delivery of water to communities and made the arrival of essential supplies for mining operations impossible," the company said in a statement.
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4457.0
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2021-05-23 00:00:00 UTC
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Pick Boeing Stock Over Spirit AeroSystems For Better Gains
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AAL
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https://www.nasdaq.com/articles/pick-boeing-stock-over-spirit-aerosystems-for-better-gains-2021-05-23
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nan
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nan
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The shares of Spirit AeroSystems (NYSE: SPR) have trended downward since March largely due to low production at Boeing and a slump in travel demand. The company designs and manufactures commercial aerostructures such as fuselage systems, propulsion systems, and wing systems, and supplies to aircraft manufacturers including Boeing (NYSE:BA) and Airbus. While the $34 billion order backlog strengthens long-term shareholder returns, the stock is unlikely to provide quick gains as 737 MAX production is expected to resume next year. Moreover, the company incurred $745 million of operating cash outflow last year due to high fixed costs and tepid production numbers. Given the $3 billion contraction in SPR’s market capitalization from pre-Covid levels and high operational costs, Trefis believes that the stock will continue to face downward pressure in the near term. We compare the historical stock price trends between Spirit AeroSystems and Boeing in an interactive dashboard analysis, SPR Stock Has 54% Chance Of A Rise Over The Next Month After Declining 5.3% In The Last 5 Days.
After observing a strong pullback, airline stocks are trending lower due to demand uncertainty
The shares of Southwest Airlines and American Airlines have observed a strong pullback earlier this year as indicated by the 34% and 42% YTD growth, respectively. However, airline stocks have been observing a correction in the past ten days subsequently leading to a contraction in Boeing and Spirit AeroSystems’ stock. Per Boeing’s commercial market outlook, global passenger traffic and aircraft fleet are expected to grow annually by 4% and 3.2% in the next twenty years, respectively. As 737 Max’s production is expected to resume next year, Spirit AeroSystems is likely to observe high fixed costs due to delayed demand. Notably, the 737 Max program accounts for 54% of Spirit AeroSystems’ order backlog.
Spirit AeroSystems’ debt is due to operational losses but Boeing’s debt is not
Spirit AeroSystems and Boeing’s stock have observed a 5.5% and 2.5% contraction in the past ten days – indicating a negative sentiment surrounding both stocks. In 2020, Spirit AeroSystems observed $745 million of operating cash outflow and a similar surge in long-term debt obligations. However, Boeing’s soaring debt is primarily from piled-up inventories which are expected to ease with rising air travel demand. Therefore, Spirit AeroSystems’ stock is likely to observe a slower recovery than Boeing.
Are defense stocks also better picks over Spirit AeroSystems? See Spirit AeroSystems Peer Comparisons on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and 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 Spirit AeroSystems (NYSE: SPR) have trended downward since March largely due to low production at Boeing and a slump in travel demand. While the $34 billion order backlog strengthens long-term shareholder returns, the stock is unlikely to provide quick gains as 737 MAX production is expected to resume next year. Given the $3 billion contraction in SPR’s market capitalization from pre-Covid levels and high operational costs, Trefis believes that the stock will continue to face downward pressure in the near term.
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After observing a strong pullback, airline stocks are trending lower due to demand uncertainty The shares of Southwest Airlines and American Airlines have observed a strong pullback earlier this year as indicated by the 34% and 42% YTD growth, respectively. As 737 Max’s production is expected to resume next year, Spirit AeroSystems is likely to observe high fixed costs due to delayed demand. Spirit AeroSystems’ debt is due to operational losses but Boeing’s debt is not Spirit AeroSystems and Boeing’s stock have observed a 5.5% and 2.5% contraction in the past ten days – indicating a negative sentiment surrounding both stocks.
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We compare the historical stock price trends between Spirit AeroSystems and Boeing in an interactive dashboard analysis, SPR Stock Has 54% Chance Of A Rise Over The Next Month After Declining 5.3% In The Last 5 Days. However, airline stocks have been observing a correction in the past ten days subsequently leading to a contraction in Boeing and Spirit AeroSystems’ stock. Spirit AeroSystems’ debt is due to operational losses but Boeing’s debt is not Spirit AeroSystems and Boeing’s stock have observed a 5.5% and 2.5% contraction in the past ten days – indicating a negative sentiment surrounding both stocks.
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The shares of Spirit AeroSystems (NYSE: SPR) have trended downward since March largely due to low production at Boeing and a slump in travel demand. As 737 Max’s production is expected to resume next year, Spirit AeroSystems is likely to observe high fixed costs due to delayed demand. Spirit AeroSystems’ debt is due to operational losses but Boeing’s debt is not Spirit AeroSystems and Boeing’s stock have observed a 5.5% and 2.5% contraction in the past ten days – indicating a negative sentiment surrounding both stocks.
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4458.0
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2021-05-21 00:00:00 UTC
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Generalist funds flow back into mining as prices, inflation climb
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AAL
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https://www.nasdaq.com/articles/generalist-funds-flow-back-into-mining-as-prices-inflation-climb-2021-05-21
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nan
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nan
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By Zandi Shabalala and Clara Denina
LONDON, May 21 (Reuters) - Surging prices for commodities, stronger balance sheets and rising inflation have lured back to mining stocks generalist investors that for years shunned the sector, data shows.
Shares in diversified mining companies Rio Tinto RIO.L, RIO.AX, BHP BHPB.L, BHP.AX, Anglo American AAL.L and Glencore GLEN.L have doubled in the last year, as policy support measures in advanced economies in response to the COVID-19 pandemic stoked inflation.
Commodities serve as a hedge against inflation, meaning their prices are expected to stay strong, and at the same time the transition to a low carbon economy and channelling of stimulus funds into infrastructure is generating demand for raw materials.
The size of natural resources mutual and exchange-traded funds tracked by Refinitiv Lipper data exceeded $70 billion by the end of April for the first time since September 2018 at $72.4 billion.
Many generalist investors - or money managers whose focus is not solely on mining companies - fled the sector when a commodity boom crashed in 2015 as China's appetite for raw materials slowed down.
"The inflation fears and metals price action has brought investors back to mining stocks," said London & Capital head of equities Roger Jones, whose fund holds mining stocks.
A Bank of America survey of fund managers published in May found that a net 21% of European investors participating in it were overweight metals and mining versus a net 56% that said they were underweight a year ago.
The survey found fund managers were underweight defensive sectors such as utilities and pharma.
This is not only visible in Europe, as several hedge funds have piled into Canada-listed Teck Resources Ltd TECKb.TO, for example, U.S. regulatory filings show.
AVOIDING BOOM AND BUST
Miners have learnt a hard lesson since the last boom, when they overpaid by billions to buy assets, sometimes in complex jurisdictions or difficult geologies.
By maintaining discipline on costs, spending and acquisitions, they cut debt and gave shareholders dividends that have become loftier as commodity prices rose.
Prices for copper, which is expected to be one of the biggest beneficiaries of the lower carbon economy, hit a record this month CMCU3, while battery minerals nickel, lithium and cobalt have also jumped.
Sell-side analysts have hailed the latest rally as the beginning of a supercycle, but some fund managers caution against too much enthusiasm, as supply disruptions caused by the COVID-19 restrictions ease, potentially curbing prices.
"Supply chains are still not working as smoothly because of COVID lockdowns, so we have to wait until there is a normalisation to get a better idea of what is really driving commodity prices," said Ben Ritchie, head of European equities at Aberdeen Standard Investments.
Fund managers also said China was not consuming as much metal as it was during a 2000-2008 supercycle, and mining stocks are trading on low multiples compared to tech for example, which suggests broader scepticism that prices can be sustained.
Another concern for investors has been the level of risk associated with mining that has led to environmental disasters and legal action.
As ESG (environmental, social and governance) criteria have shot to prominence, miners have drawn up sustainability reports and ethical and green targets that may reassure some investors.
"ESG has been a challenge for miners to adapt to, but it is arguably the best thing that has happened to the mining sector," said Janus Henderson fund manager Tal Lomnitzer, whose funds hold Anglo American and copper miner Freeport-McMoRan FCX.N.
"Decarbonisation should bring in those investors who would otherwise avoid the sector."
Assets and flows of fundshttps://tmsnrt.rs/3f2GhgJ
Mining vs FTSE 100https://tmsnrt.rs/33Yu32w
Miners vs FTSEhttps://tmsnrt.rs/3wBlEP1
(Reporting by Zandi Shabalala and Clara Denina; additional reporting by Maiya Keidan in Toronto. Editing by Barbara Lewis)
((clara.denina@thomsonreuters.com + 44 207 542 9420. Reuters Messaging: clara.denina.thomsonreuters.com@reuters.net. Twitter: https://twitter.com/claradenina))
The views and 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 in diversified mining companies Rio Tinto RIO.L, RIO.AX, BHP BHPB.L, BHP.AX, Anglo American AAL.L and Glencore GLEN.L have doubled in the last year, as policy support measures in advanced economies in response to the COVID-19 pandemic stoked inflation. By Zandi Shabalala and Clara Denina LONDON, May 21 (Reuters) - Surging prices for commodities, stronger balance sheets and rising inflation have lured back to mining stocks generalist investors that for years shunned the sector, data shows. Commodities serve as a hedge against inflation, meaning their prices are expected to stay strong, and at the same time the transition to a low carbon economy and channelling of stimulus funds into infrastructure is generating demand for raw materials.
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Shares in diversified mining companies Rio Tinto RIO.L, RIO.AX, BHP BHPB.L, BHP.AX, Anglo American AAL.L and Glencore GLEN.L have doubled in the last year, as policy support measures in advanced economies in response to the COVID-19 pandemic stoked inflation. By Zandi Shabalala and Clara Denina LONDON, May 21 (Reuters) - Surging prices for commodities, stronger balance sheets and rising inflation have lured back to mining stocks generalist investors that for years shunned the sector, data shows. "The inflation fears and metals price action has brought investors back to mining stocks," said London & Capital head of equities Roger Jones, whose fund holds mining stocks.
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Shares in diversified mining companies Rio Tinto RIO.L, RIO.AX, BHP BHPB.L, BHP.AX, Anglo American AAL.L and Glencore GLEN.L have doubled in the last year, as policy support measures in advanced economies in response to the COVID-19 pandemic stoked inflation. By Zandi Shabalala and Clara Denina LONDON, May 21 (Reuters) - Surging prices for commodities, stronger balance sheets and rising inflation have lured back to mining stocks generalist investors that for years shunned the sector, data shows. "The inflation fears and metals price action has brought investors back to mining stocks," said London & Capital head of equities Roger Jones, whose fund holds mining stocks.
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Shares in diversified mining companies Rio Tinto RIO.L, RIO.AX, BHP BHPB.L, BHP.AX, Anglo American AAL.L and Glencore GLEN.L have doubled in the last year, as policy support measures in advanced economies in response to the COVID-19 pandemic stoked inflation. By Zandi Shabalala and Clara Denina LONDON, May 21 (Reuters) - Surging prices for commodities, stronger balance sheets and rising inflation have lured back to mining stocks generalist investors that for years shunned the sector, data shows. Commodities serve as a hedge against inflation, meaning their prices are expected to stay strong, and at the same time the transition to a low carbon economy and channelling of stimulus funds into infrastructure is generating demand for raw materials.
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4459.0
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2021-05-20 00:00:00 UTC
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After Hours Most Active for May 20, 2021 : ITUB, AAPL, FSR, MSFT, RTX, AAL, ET, CHNG, QQQ, XP, BAC, NEE^P
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AAL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-20-2021-%3A-itub-aapl-fsr-msft-rtx-aal-et-chng-qqq-xp-bac
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 3.44 to 13,497.53. The total After hours volume is currently 59,505,566 shares traded.
The following are the most active stocks for the after hours session:
Itau Unibanco Banco Holding SA (ITUB) is unchanged at $5.52, with 6,167,136 shares traded. ITUB's current last sale is 89.03% of the target price of $6.2.
Apple Inc. (AAPL) is +0.03 at $127.34, with 2,633,417 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021. The consensus EPS forecast is $0.97. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Fisker Inc. (FSR) is unchanged at $12.33, with 2,544,776 shares traded. As reported by Zacks, the current mean recommendation for FSR is in the "buy range".
Microsoft Corporation (MSFT) is -0.14 at $246.34, with 2,309,867 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021. The consensus EPS forecast is $1.9. MSFT's current last sale is 84.94% of the target price of $290.
Raytheon Technologies Corporation (RTX) is +0.2 at $85.43, with 2,142,854 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021. The consensus EPS forecast is $0.92. As reported by Zacks, the current mean recommendation for RTX is in the "buy range".
American Airlines Group, Inc. (AAL) is unchanged at $22.60, with 1,731,465 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021. The consensus EPS forecast is $-2.48. AAL's current last sale is 141.25% of the target price of $16.
Energy Transfer L.P. (ET) is unchanged at $10.02, with 1,673,401 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2021. The consensus EPS forecast is $0.25. ET's current last sale is 83.5% of the target price of $12.
Change Healthcare Inc. (CHNG) is +0.01 at $22.83, with 1,541,946 shares traded.CHNG is scheduled to provide an earnings report on 5/26/2021, for the fiscal quarter ending Mar2021. The consensus earnings per share forecast is 0.35 per share, which represents a 40 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is unchanged at $328.83, with 1,437,410 shares traded. This represents a 46.84% increase from its 52 Week Low.
XP Inc. (XP) is unchanged at $41.68, with 1,304,646 shares traded. XP's current last sale is 85.94% of the target price of $48.5.
Bank of America Corporation (BAC) is -0.04 at $41.83, with 1,119,027 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
NextEra Energy, Inc. (NEE^P) is +0.0133 at $48.95, with 1,071,264 shares traded.
The views and 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 $22.60, with 1,731,465 shares traded. AAL's current last sale is 141.25% of the target price of $16. Itau Unibanco Banco Holding SA (ITUB) is unchanged at $5.52, with 6,167,136 shares traded.
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American Airlines Group, Inc. (AAL) is unchanged at $22.60, with 1,731,465 shares traded. AAL's current last sale is 141.25% of the target price of $16. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021.
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American Airlines Group, Inc. (AAL) is unchanged at $22.60, with 1,731,465 shares traded. AAL's current last sale is 141.25% of the target price of $16. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021.
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American Airlines Group, Inc. (AAL) is unchanged at $22.60, with 1,731,465 shares traded. AAL's current last sale is 141.25% of the target price of $16. The NASDAQ 100 After Hours Indicator is up 3.44 to 13,497.53.
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4460.0
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2021-05-19 00:00:00 UTC
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United, American carry out repairs on Boeing 737 MAX planes
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AAL
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https://www.nasdaq.com/articles/united-american-carry-out-repairs-on-boeing-737-max-planes-2021-05-19
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nan
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nan
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By David Shepardson
WASHINGTON, May 19 (Reuters) - United Airlines UAL.O said Wednesday it has completed repairs on its 17 Boeing BA.N 737 MAX planes that were grounded over an electrical problem, while American Airlines AAL.O said it has completed repairs on 14 of 18 737 MAX planes in its fleet.
Boeing last Wednesday sent affected carriers service bulletins on how to address the production issue that could have interfered with some critical systems after the fixes were approved by the Federal Aviation Administration.
The action was a relief for American carriers, which have more than 65 of the 109 aircraft affected worldwide and were eager to get planes back into the air before the summer travel season.
Boeing resumed deliveries of its best-selling 737 MAX on Wednesday, following approval of the fix for the electrical grounding issue, a person familiar with the matter told Reuters.
U.S. air travel demand is rising as more Americans get vaccinated. The U.S. Transportation Security Administration screened 1.85 million passengers on Sunday at U.S. airports, the highest number since March 2020, when the coronavirus pandemic slashed travel demand.
(Reporting by David Shepardson Editing by Chizu Nomiyama and Richard Pullin)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, May 19 (Reuters) - United Airlines UAL.O said Wednesday it has completed repairs on its 17 Boeing BA.N 737 MAX planes that were grounded over an electrical problem, while American Airlines AAL.O said it has completed repairs on 14 of 18 737 MAX planes in its fleet. Boeing last Wednesday sent affected carriers service bulletins on how to address the production issue that could have interfered with some critical systems after the fixes were approved by the Federal Aviation Administration. Boeing resumed deliveries of its best-selling 737 MAX on Wednesday, following approval of the fix for the electrical grounding issue, a person familiar with the matter told Reuters.
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By David Shepardson WASHINGTON, May 19 (Reuters) - United Airlines UAL.O said Wednesday it has completed repairs on its 17 Boeing BA.N 737 MAX planes that were grounded over an electrical problem, while American Airlines AAL.O said it has completed repairs on 14 of 18 737 MAX planes in its fleet. Boeing resumed deliveries of its best-selling 737 MAX on Wednesday, following approval of the fix for the electrical grounding issue, a person familiar with the matter told Reuters. U.S. air travel demand is rising as more Americans get vaccinated.
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By David Shepardson WASHINGTON, May 19 (Reuters) - United Airlines UAL.O said Wednesday it has completed repairs on its 17 Boeing BA.N 737 MAX planes that were grounded over an electrical problem, while American Airlines AAL.O said it has completed repairs on 14 of 18 737 MAX planes in its fleet. Boeing last Wednesday sent affected carriers service bulletins on how to address the production issue that could have interfered with some critical systems after the fixes were approved by the Federal Aviation Administration. The action was a relief for American carriers, which have more than 65 of the 109 aircraft affected worldwide and were eager to get planes back into the air before the summer travel season.
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By David Shepardson WASHINGTON, May 19 (Reuters) - United Airlines UAL.O said Wednesday it has completed repairs on its 17 Boeing BA.N 737 MAX planes that were grounded over an electrical problem, while American Airlines AAL.O said it has completed repairs on 14 of 18 737 MAX planes in its fleet. The action was a relief for American carriers, which have more than 65 of the 109 aircraft affected worldwide and were eager to get planes back into the air before the summer travel season. Boeing resumed deliveries of its best-selling 737 MAX on Wednesday, following approval of the fix for the electrical grounding issue, a person familiar with the matter told Reuters.
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4461.0
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2021-05-19 00:00:00 UTC
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3 Consumer Cyclical Stocks to Buy for the Coming Travel Explosion
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AAL
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https://www.nasdaq.com/articles/3-consumer-cyclical-stocks-to-buy-for-the-coming-travel-explosion-2021-05-19
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
For nearly a year, when it came to the novel coronavirus, there have been multiple divisions in America. Now that the nation looks poised to be (mostly) on one page regarding the coronavirus, many cyclical stocks, especially those in the travel sector, look positioned to get a big lift.
Until very recently, there were important divisions among states and consumers. And in the travel sector, there was a sharp contrast between business travel and leisure travel.
In general, the economies and schools of so-called red states were opened, while many schools and businesses in blue states remained fully or partially closed. Most consumers who had received vaccines were no longer afraid of going back to their pre-pandemic lives, but some were still fearful. And while leisure travel had bounced back dramatically, business travel remained depressed.
7 High Quality Industrial Stocks to Buy Now
I believe that the May 14 announcement by the Centers for Disease Control and Prevention, as well as President Joe Biden saying that vaccinated people no longer have to wear masks, will largely end those divisions. To most Americans, the announcement will show that those who have received vaccinations no longer have to worry much about the virus.
Lior Rennert, assistant professor of biostatistics in the Department of Public Health Science at Clemson University, wrote in an email to InvestorPlace that, “Fortunately, we are at a point now in the United States where we will soon have a surplus of the Pfizer and Moderna vaccines. … Furthermore, all vaccines have proved to be highly effective against severe infection. Therefore, we should not expect many lockdowns this year.”
“Starting this summer, the EU will allow fully vaccinated American tourists to visit,” he further wrote. “However, it is not yet clear which countries will still have strict lockdown measures. The good news is that all vaccines have proven to be highly effective in preventing severe SARS-CoV-2 infections. Therefore, we should expect to see an increase in travel among those vaccinated in the coming months.”
Indeed, since Biden and his administration are seen as extremely cautious about the coronavirus and are trusted by most of those who were afraid of the illness, the proclamation will act as an “all-clear” sign regarding the virus. Further, most of the adults who haven’t received a shot probably are not scared of the coronavirus.
Consequently, schools and businesses are going to open across the country. Fear of travel will decline. With most of their employees no longer afraid of traveling, companies will be able to send their sales teams and executives on trips again.
All of this, of course, is great news for cyclical stocks in general and travel stocks in particular. Three of the best consumer cyclical plays on the (very welcome!) “end of the end” of the pandemic in the U.S. are:
Hyatt Hotels (NYSE:H)
Expedia (NASDAQ:EXPE)
American Airlines (NASDAQ:AAL)
Cyclical Stocks: Hyatt Hotels (H)
H) building with logo in front of shrubbery" width="300" height="169">
Source: EQRoy/Shutterstock.com
Encouragingly, on Hyatt’s first-quarter results conference call, CEO Mark Hoplamazian said, “The pent-up demand for travel is immense. And with the number of fully vaccinated potential travelers growing by the millions each day, we feel we’re at the beginning of a growing level of demand for our hotels.”
Further, the hotel operator’s revenue per available room (Rev PAR) increased 54% in March versus January, compared with the usual seasonal gain of about 25%. Powered by strong spring break demand in the U.S. and relaxed travel restrictions in China, leisure travel led the way. And in the second “half of March,… leisure transient room nights for comparable hotels surpassed levels during the same period in 2019,” Hoplamazian said.
Hyatt’s focus on high-end consumers is positive because white-collar workers tended to have been largely unaffected financially by the pandemic. Moreover, upper-income consumers are less likely to be hurt by inflation than people with lower incomes.
Finally, Hyatt should get much more of a boost from the return of business travel than lower-end hotel chains.
Expedia (EXPE)
EXPE) group logo" width="300" height="169">
Source: VDB Photos / Shutterstock.com
The company’s Q1 results showed that its business already began rebounding meaningfully last quarter. as its sales jumped to $1.25 billion versus $920 million in Q4. What’s more, Expedia’s Q1 bookings dropped just 14% from the previous year, and its top- and bottom-line results came in well above analysts’ average outlook.
Speaking on the company’s Q1 earnings conference call, CEO Peter Kern said that “the summer looks strong,” setting up EXPE stock to continue performing well over the next few months. He added that “the (booking) trends are very good, and we’re excited about that.”
In recent weeks, a number of analysts have been very bullish on Expedia. On May 3, for example, Wells Fargo named the shares as one of its “signature picks” in the consumer discretionary category. UBS on April 26 identified Expedia as a company whose “strong pricing power” should enable it to outperform other stocks even as inflation rises.
Given its high market share and strong brand, Expedia is positioned to benefit tremendously from pent-up demand in the travel sector.
Cyclical Stocks: American Airlines (AAL)
AAL) airplane waiting on the tarmac. Represents airline stocks." width="300" height="169">
Source: GagliardiPhotography / Shutterstock.com
On April 22, American Airlines reported that it expects its Q2 capacity to drop 20% to 25% from 2019 levels, amid “signs of continued recovery in demand.” The airline expects to end Q2 with a robust $19.5 billion of liquidity.
And supporting my thesis on business travel returning, American says it is seeing early signs of a rebound in that category, saying that “small business demand, which was roughly 17% of our system revenue, has been improving steadily as vaccination rates have increased and as markets reopened.”
With small business travel accounting for 17% of AAL stock’s revenue, the company is positioned to benefit from a much bigger comeback of business travel.
On April 23, Raymond James raised AAL stock to “market perform” from “underperform,” citing improved profitability and a better risk-reward ratio.
Unlike some of its peers, AAL stock remains well below its 52-week high and its 2019 levels, indicating that it has a great deal of room to rally.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 3 Consumer Cyclical Stocks to Buy for the Coming Travel Explosion 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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“end of the end” of the pandemic in the U.S. are: Hyatt Hotels (NYSE:H) Expedia (NASDAQ:EXPE) American Airlines (NASDAQ:AAL) Cyclical Stocks: Hyatt Hotels (H) H) building with logo in front of shrubbery" width="300" height="169"> Source: EQRoy/Shutterstock.com Encouragingly, on Hyatt’s first-quarter results conference call, CEO Mark Hoplamazian said, “The pent-up demand for travel is immense. Cyclical Stocks: American Airlines (AAL) AAL) airplane waiting on the tarmac. And supporting my thesis on business travel returning, American says it is seeing early signs of a rebound in that category, saying that “small business demand, which was roughly 17% of our system revenue, has been improving steadily as vaccination rates have increased and as markets reopened.” With small business travel accounting for 17% of AAL stock’s revenue, the company is positioned to benefit from a much bigger comeback of business travel.
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“end of the end” of the pandemic in the U.S. are: Hyatt Hotels (NYSE:H) Expedia (NASDAQ:EXPE) American Airlines (NASDAQ:AAL) Cyclical Stocks: Hyatt Hotels (H) H) building with logo in front of shrubbery" width="300" height="169"> Source: EQRoy/Shutterstock.com Encouragingly, on Hyatt’s first-quarter results conference call, CEO Mark Hoplamazian said, “The pent-up demand for travel is immense. And supporting my thesis on business travel returning, American says it is seeing early signs of a rebound in that category, saying that “small business demand, which was roughly 17% of our system revenue, has been improving steadily as vaccination rates have increased and as markets reopened.” With small business travel accounting for 17% of AAL stock’s revenue, the company is positioned to benefit from a much bigger comeback of business travel. Cyclical Stocks: American Airlines (AAL) AAL) airplane waiting on the tarmac.
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“end of the end” of the pandemic in the U.S. are: Hyatt Hotels (NYSE:H) Expedia (NASDAQ:EXPE) American Airlines (NASDAQ:AAL) Cyclical Stocks: Hyatt Hotels (H) H) building with logo in front of shrubbery" width="300" height="169"> Source: EQRoy/Shutterstock.com Encouragingly, on Hyatt’s first-quarter results conference call, CEO Mark Hoplamazian said, “The pent-up demand for travel is immense. And supporting my thesis on business travel returning, American says it is seeing early signs of a rebound in that category, saying that “small business demand, which was roughly 17% of our system revenue, has been improving steadily as vaccination rates have increased and as markets reopened.” With small business travel accounting for 17% of AAL stock’s revenue, the company is positioned to benefit from a much bigger comeback of business travel. Cyclical Stocks: American Airlines (AAL) AAL) airplane waiting on the tarmac.
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“end of the end” of the pandemic in the U.S. are: Hyatt Hotels (NYSE:H) Expedia (NASDAQ:EXPE) American Airlines (NASDAQ:AAL) Cyclical Stocks: Hyatt Hotels (H) H) building with logo in front of shrubbery" width="300" height="169"> Source: EQRoy/Shutterstock.com Encouragingly, on Hyatt’s first-quarter results conference call, CEO Mark Hoplamazian said, “The pent-up demand for travel is immense. Cyclical Stocks: American Airlines (AAL) AAL) airplane waiting on the tarmac. And supporting my thesis on business travel returning, American says it is seeing early signs of a rebound in that category, saying that “small business demand, which was roughly 17% of our system revenue, has been improving steadily as vaccination rates have increased and as markets reopened.” With small business travel accounting for 17% of AAL stock’s revenue, the company is positioned to benefit from a much bigger comeback of business travel.
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4462.0
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2021-05-19 00:00:00 UTC
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JetBlue set for transatlantic debut to London in August
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AAL
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https://www.nasdaq.com/articles/jetblue-set-for-transatlantic-debut-to-london-in-august-2021-05-19
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nan
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nan
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By Tracy Rucinski
CHICAGO, May 19 (Reuters) - JetBlue Airways JBLU.O said on Wednesday it plans to enter the transatlantic market with low-fare flights from New York to London in August, disrupting what is normally one of the world's busiest international routes.
The airline will launch daily flights to London's Heathrow Airport on Aug. 11 and to Gatwick on Sept. 29, it said in a statement.
While the COVID-19 pandemic has largely stalled travel between the United States and Britain, it opened the door for JetBlue to secure coveted slots at the two London airports, where it hopes to build a larger presence over time and expand the success of its Mint domestic business-class service.
For now, JetBlue has the slots for daily Heathrow service through October but is selling flights through March 26, 2022 because it believes it can secure slots through the winter while it works to obtain longer-term access.
"We expect Heathrow is going to want us to stay once they see what we can do in terms of driving competition," JetBlue President Joanna Geraghty told Reuters.
JetBlue is launching the London flights from New York's John F. Kennedy Airport (JFK) on its new Airbus A321LR jets, a longer-range variant of the A321neo, with roundtrip Core cabin fares starting at $599 for U.S.-based travelers and 329 pounds for those based in the U.K.
Fares for Mint class, which features 24 lie-flat private suites, will start at $1,979 and 999 pounds.
By comparison, a roundtrip flight from JFK to Heathrow on American Airlines AAL.O or partner British Airways between Aug. 11 and Aug. 18 is selling at $2,573 in business class and $5,489 in first class, according to a web search.
JetBlue is among airlines calling for a speedy reopening of U.S.-Britain travel, something Geraghty was "cautiously optimistic" would happen before its London flights begin in August.
Once that happens, JetBlue expects demand patterns to mirror those within the United States, where leisure travel is quickly climbing toward pre-pandemic levels as COVID-19 restrictions ease and more Americans get vaccinated.
JetBlue plans to launch a London service from Boston in the summer of 2022 and continues to seek other European destinations, Geraghty said.
(Reporting by Tracy Rucinski; Editing by Muralikumar Anantharaman)
((tracy.rucinski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By comparison, a roundtrip flight from JFK to Heathrow on American Airlines AAL.O or partner British Airways between Aug. 11 and Aug. 18 is selling at $2,573 in business class and $5,489 in first class, according to a web search. By Tracy Rucinski CHICAGO, May 19 (Reuters) - JetBlue Airways JBLU.O said on Wednesday it plans to enter the transatlantic market with low-fare flights from New York to London in August, disrupting what is normally one of the world's busiest international routes. While the COVID-19 pandemic has largely stalled travel between the United States and Britain, it opened the door for JetBlue to secure coveted slots at the two London airports, where it hopes to build a larger presence over time and expand the success of its Mint domestic business-class service.
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By comparison, a roundtrip flight from JFK to Heathrow on American Airlines AAL.O or partner British Airways between Aug. 11 and Aug. 18 is selling at $2,573 in business class and $5,489 in first class, according to a web search. The airline will launch daily flights to London's Heathrow Airport on Aug. 11 and to Gatwick on Sept. 29, it said in a statement. JetBlue is launching the London flights from New York's John F. Kennedy Airport (JFK) on its new Airbus A321LR jets, a longer-range variant of the A321neo, with roundtrip Core cabin fares starting at $599 for U.S.-based travelers and 329 pounds for those based in the U.K. Fares for Mint class, which features 24 lie-flat private suites, will start at $1,979 and 999 pounds.
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By comparison, a roundtrip flight from JFK to Heathrow on American Airlines AAL.O or partner British Airways between Aug. 11 and Aug. 18 is selling at $2,573 in business class and $5,489 in first class, according to a web search. By Tracy Rucinski CHICAGO, May 19 (Reuters) - JetBlue Airways JBLU.O said on Wednesday it plans to enter the transatlantic market with low-fare flights from New York to London in August, disrupting what is normally one of the world's busiest international routes. While the COVID-19 pandemic has largely stalled travel between the United States and Britain, it opened the door for JetBlue to secure coveted slots at the two London airports, where it hopes to build a larger presence over time and expand the success of its Mint domestic business-class service.
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By comparison, a roundtrip flight from JFK to Heathrow on American Airlines AAL.O or partner British Airways between Aug. 11 and Aug. 18 is selling at $2,573 in business class and $5,489 in first class, according to a web search. By Tracy Rucinski CHICAGO, May 19 (Reuters) - JetBlue Airways JBLU.O said on Wednesday it plans to enter the transatlantic market with low-fare flights from New York to London in August, disrupting what is normally one of the world's busiest international routes. For now, JetBlue has the slots for daily Heathrow service through October but is selling flights through March 26, 2022 because it believes it can secure slots through the winter while it works to obtain longer-term access.
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4463.0
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2021-05-18 00:00:00 UTC
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U.S. lawmakers seeking records on 737 MAX, 787 production issues
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AAL
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https://www.nasdaq.com/articles/u.s.-lawmakers-seeking-records-on-737-max-787-production-issues-2021-05-18-0
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nan
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nan
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By David Shepardson
WASHINGTON, May 18 (Reuters) - Two key U.S. lawmakers said on Tuesday they are seeking records from Boeing BA.N and the Federal Aviation Administration (FAA) on production issues involving the 737 MAX and 787 Dreamliner.
House Transportation Committee Chairman Peter DeFazio and Rick Larsen, who chairs a subcommittee, said they were seeking records after multiple issues recently emerged "regarding the 737 MAX as well as the 787, including electrical problems, the presence of foreign object debris in newly manufactured aircraft, and other issues."
The panel conducted an extensive investigation into the 737 MAX after two fatal crashes led to a 20-month grounding that was lifted in November. The committee's report was part of the reason Congress approved an overhaul of the FAA's aircraft certification program in December.
The pair want the FAA and Boeing to "provide records regarding production-related issues and the FAA’s oversight of Boeing’s manufacturing operations."
The FAA did not immediately comment.
Boeing, which said it had seen a letter from DeFazio and Larsen and would respond, last week won approval from the FAA for a fix of an electrical grounding issue that had affected 109 737 MAX airplanes worldwide.
The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines UAL.O - removed more than 60 jets from service after the notice from Boeing.
American said Tuesday 10 of its 18 affected 737 MAX planes had resumed flying and the remainder expected over the next few days.
The FAA said in September it was investigating manufacturing flaws involving some Boeing 787 Dreamliners. Boeing said in August airlines operating its 787 Dreamliners removed eight jets from service as a result of two distinct manufacturing issues.
In March, the FAA said it was taking "a number of corrective actions" to address multiple 787 production issues, including retaining authority to issue approval certificates for four specific aircraft.
(Reporting by David Shepardson Editing by Chris Reese and Steve Orlofsky)
((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 top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines UAL.O - removed more than 60 jets from service after the notice from Boeing. By David Shepardson WASHINGTON, May 18 (Reuters) - Two key U.S. lawmakers said on Tuesday they are seeking records from Boeing BA.N and the Federal Aviation Administration (FAA) on production issues involving the 737 MAX and 787 Dreamliner. Boeing, which said it had seen a letter from DeFazio and Larsen and would respond, last week won approval from the FAA for a fix of an electrical grounding issue that had affected 109 737 MAX airplanes worldwide.
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The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines UAL.O - removed more than 60 jets from service after the notice from Boeing. By David Shepardson WASHINGTON, May 18 (Reuters) - Two key U.S. lawmakers said on Tuesday they are seeking records from Boeing BA.N and the Federal Aviation Administration (FAA) on production issues involving the 737 MAX and 787 Dreamliner. In March, the FAA said it was taking "a number of corrective actions" to address multiple 787 production issues, including retaining authority to issue approval certificates for four specific aircraft.
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The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines UAL.O - removed more than 60 jets from service after the notice from Boeing. By David Shepardson WASHINGTON, May 18 (Reuters) - Two key U.S. lawmakers said on Tuesday they are seeking records from Boeing BA.N and the Federal Aviation Administration (FAA) on production issues involving the 737 MAX and 787 Dreamliner. House Transportation Committee Chairman Peter DeFazio and Rick Larsen, who chairs a subcommittee, said they were seeking records after multiple issues recently emerged "regarding the 737 MAX as well as the 787, including electrical problems, the presence of foreign object debris in newly manufactured aircraft, and other issues."
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The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines UAL.O - removed more than 60 jets from service after the notice from Boeing. House Transportation Committee Chairman Peter DeFazio and Rick Larsen, who chairs a subcommittee, said they were seeking records after multiple issues recently emerged "regarding the 737 MAX as well as the 787, including electrical problems, the presence of foreign object debris in newly manufactured aircraft, and other issues." Boeing said in August airlines operating its 787 Dreamliners removed eight jets from service as a result of two distinct manufacturing issues.
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4464.0
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2021-05-18 00:00:00 UTC
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Russian diamond producer Alrosa to raise output in 2022
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AAL
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https://www.nasdaq.com/articles/russian-diamond-producer-alrosa-to-raise-output-in-2022-2021-05-18
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nan
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nan
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Adds detail, context
MOSCOW, May 18 (Reuters) - Russian state-controlled diamond producer Alrosa ALRS.MM expects to produce at least 33 million carats of the precious stones in 2022, up from 31.5 million carats this year, it said on Tuesday.
Alrosa, which competes with Anglo American AAL.L unit De Beers, is gradually restoring production after last year's 22% reduction when global diamond sales were hit by the COVID-19 pandemic.
Global demand for rough diamonds started to recover in the second half of 2020. This helped Alrosa to reduce its stockpile to 12.8 million carats from 20.7 million carats at the end of 2020.
Alrosa expects its stockpile to be between 11 million and 12 million carats at the end of 2021, Chief Financial Officer Alexey Philippovskiy said on a conference call on Tuesday.
The company also said on Tuesday that its first-quarter core earnings rose 12% year on year to 33.5 billion roubles ($454 million) on revenue up 45% at 90.8 billion roubles.
($1 = 73.7250 roubles)
(Reporting by Anastasia Lyrchikova Writing by Polina Devitt Editing by David Goodman)
((Polina.Devitt@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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Alrosa, which competes with Anglo American AAL.L unit De Beers, is gradually restoring production after last year's 22% reduction when global diamond sales were hit by the COVID-19 pandemic. Adds detail, context MOSCOW, May 18 (Reuters) - Russian state-controlled diamond producer Alrosa ALRS.MM expects to produce at least 33 million carats of the precious stones in 2022, up from 31.5 million carats this year, it said on Tuesday. ($1 = 73.7250 roubles) (Reporting by Anastasia Lyrchikova Writing by Polina Devitt Editing by David Goodman) ((Polina.Devitt@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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Alrosa, which competes with Anglo American AAL.L unit De Beers, is gradually restoring production after last year's 22% reduction when global diamond sales were hit by the COVID-19 pandemic. Adds detail, context MOSCOW, May 18 (Reuters) - Russian state-controlled diamond producer Alrosa ALRS.MM expects to produce at least 33 million carats of the precious stones in 2022, up from 31.5 million carats this year, it said on Tuesday. This helped Alrosa to reduce its stockpile to 12.8 million carats from 20.7 million carats at the end of 2020.
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Alrosa, which competes with Anglo American AAL.L unit De Beers, is gradually restoring production after last year's 22% reduction when global diamond sales were hit by the COVID-19 pandemic. Adds detail, context MOSCOW, May 18 (Reuters) - Russian state-controlled diamond producer Alrosa ALRS.MM expects to produce at least 33 million carats of the precious stones in 2022, up from 31.5 million carats this year, it said on Tuesday. This helped Alrosa to reduce its stockpile to 12.8 million carats from 20.7 million carats at the end of 2020.
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Alrosa, which competes with Anglo American AAL.L unit De Beers, is gradually restoring production after last year's 22% reduction when global diamond sales were hit by the COVID-19 pandemic. Adds detail, context MOSCOW, May 18 (Reuters) - Russian state-controlled diamond producer Alrosa ALRS.MM expects to produce at least 33 million carats of the precious stones in 2022, up from 31.5 million carats this year, it said on Tuesday. Global demand for rough diamonds started to recover in the second half of 2020.
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4465.0
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2021-05-18 00:00:00 UTC
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Delta Fights Back Against American Airlines and JetBlue in Boston
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https://www.nasdaq.com/articles/delta-fights-back-against-american-airlines-and-jetblue-in-boston-2021-05-18
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In recent months, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) have announced a slew of new routes serving New York and Boston as part of their new Northeast Alliance. The primary goal of this partnership is to help both airlines compete better with Delta Air Lines (NYSE: DAL).
Despite this ongoing expansion by two key rivals, Delta remains the clear leader in New York. On the other hand, the buildup by American and JetBlue threatens its recently created Boston hub. Last week, Delta responded with its own growth plan in Boston as it tries to maintain its position there.
JetBlue and American Airlines fill in the gaps in Boston
JetBlue became Boston's largest airline more than a decade ago, as it capitalized on growth opportunities that became available as rivals retrenched during and after the Great Recession. Its status as the city's largest airline made it popular with many business travelers there, despite JetBlue's reputation as a leisure-focused carrier.
As of four years ago, JetBlue served 39 of the top 50 destinations from Boston. But that still left room for Delta Air Lines to start building a competing hub in Boston, particularly because its hub-and-spoke network allows it to offer one-stop service from Boston to hundreds of destinations around the world.
Image source: Delta Air Lines.
Together, JetBlue and American Airlines make a much more formidable rival to Delta in Boston. The partnership immediately gave American Airlines customers dozens of new nonstop flight options in Boston, while giving JetBlue customers broad one-stop market coverage.
Moreover, the airlines have announced numerous new nonstop routes from Boston this year. American Airlines is launching service to markets including Columbus, Ohio; Indianapolis; Cincinnati, St. Louis, and Toronto. Meanwhile, JetBlue is adding nonstop flights to cities such as Milwaukee, Kansas City, and San Antonio -- not to mention its long-awaited entry into the London market. With these moves, the two airlines combined will fly nonstop to at least 46 of the top 50 markets from Boston by next summer.
Delta tries to catch up
For the most part, Delta Air Lines has focused on rebuilding service at its four "interior" hubs (Atlanta, Detroit, Minneapolis-St. Paul, and Salt Lake City) this year. It has been slower to resume service at coastal hubs like Boston, although it has announced new nonstop flights to several tourist markets, including Reykjavik and Rome.
Delta got more aggressive last week, announcing new nonstop routes from Boston to Charlotte and Dallas-Fort Worth: American Airlines' two biggest hubs. Those are the two busiest routes from Boston that Delta doesn't serve today. It will also launch nonstop flights to Toronto.
Meanwhile, Delta is upgrading to mainline service on its new Airbus A220 fleet for flights to Cincinnati, where it faces new competition from American. Lastly, it will switch back to Boeing 757s with flat-bed seats in the premium cabin for Boston-Los Angeles flights to better compete with the amenities offered by JetBlue and American Airlines on that route.
Image source: Airbus.
Delta's disadvantage
These moves will contribute to Delta Air Lines' continued relevance in Boston, but the full-service airline is still likely to lose ground to JetBlue and American over time. Indeed, even before accounting for their planned growth, JetBlue and American together carry over half of the passenger traffic in Boston and offer many more nonstop flight options than Delta.
Importantly, JetBlue has addressed its two key weaknesses with respect to Delta in Boston. First, the arrival of longer-range A321LR and A321XLR aircraft will allow JetBlue to expand into Europe, starting with London. Second, the American Airlines partnership allows JetBlue to offer Boston-based customers the same kind of global access that Delta Air Lines provides.
Delta Air Lines' biggest problem in Boston is simple: it has much less at stake there than JetBlue. Boston is the only major city where JetBlue is the top airline: a position that usually confers significant unit revenue advantages. By contrast, Delta dominates many of its hub markets (but not Boston). Additionally, while Delta has funneled some connecting traffic to Europe through Boston, it can serve that demand equally well via other hubs: especially New York.
If necessary, JetBlue will fight a war of attrition to win in Boston -- with American Airlines' help -- because losing isn't an option. Delta has lots of good options for profitable growth. That's a great position to be in, but it makes a costly fight for supremacy in Boston seem unwise.
10 stocks we like better than Delta Air Lines
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of May 11, 2021
Adam Levine-Weinberg owns shares of Delta Air Lines and JetBlue Airways and is long January 2022 $10 calls on JetBlue Airways. The Motley Fool recommends Delta Air Lines and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent months, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) have announced a slew of new routes serving New York and Boston as part of their new Northeast Alliance. Delta got more aggressive last week, announcing new nonstop routes from Boston to Charlotte and Dallas-Fort Worth: American Airlines' two biggest hubs. Lastly, it will switch back to Boeing 757s with flat-bed seats in the premium cabin for Boston-Los Angeles flights to better compete with the amenities offered by JetBlue and American Airlines on that route.
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In recent months, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) have announced a slew of new routes serving New York and Boston as part of their new Northeast Alliance. Image source: Delta Air Lines. The partnership immediately gave American Airlines customers dozens of new nonstop flight options in Boston, while giving JetBlue customers broad one-stop market coverage.
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In recent months, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) have announced a slew of new routes serving New York and Boston as part of their new Northeast Alliance. JetBlue and American Airlines fill in the gaps in Boston JetBlue became Boston's largest airline more than a decade ago, as it capitalized on growth opportunities that became available as rivals retrenched during and after the Great Recession. Delta's disadvantage These moves will contribute to Delta Air Lines' continued relevance in Boston, but the full-service airline is still likely to lose ground to JetBlue and American over time.
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In recent months, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) have announced a slew of new routes serving New York and Boston as part of their new Northeast Alliance. Image source: Delta Air Lines. Moreover, the airlines have announced numerous new nonstop routes from Boston this year.
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4466.0
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2021-05-17 00:00:00 UTC
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U.S. airlines add COVID-tested flights to Italy as country reopens to tourists
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AAL
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https://www.nasdaq.com/articles/u.s.-airlines-add-covid-tested-flights-to-italy-as-country-reopens-to-tourists-2021-05-17
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By Tracy Rucinski
CHICAGO, May 17 (Reuters) - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O are adding flights to Italy with protocols for coronavirus testing as the country opens to leisure travelers from the United States for the first time in more than a year.
On Sunday, the Italian government eased a number of COVID-19 travel restrictions and requirements as it looks to boost summer tourism, including scrapping a mandatory quarantine for visitors from certain countries as long as they test negative for COVID-19.
As a result, United on Monday joined Delta and American in announcing additional COVID-tested flights to the popular European travel spot, which had been closed to tourists from countries including the United States, Canada and Japan.
The three U.S. airlines have multiple nonstop options to Rome and Milan and Delta plans to add nonstop flights to Venice from New York in July and from Atlanta in August.
U.S. travelers to Italy must take a COVID-19 test no more than 48 hours before boarding and again on arrival. If negative, they will be exempted from quarantine.
To return to the United States, travelers must present a negative test taken no more than 72 hours before departure, even if they have been vaccinated.
Airlines have lobbied for COVID-tested flights as a path to restart international travel, which has been severely restricted as governments seek to contain coronavirus infections.
As cases decline in parts of the world with effective vaccination campaigns, the European Union's executive has recommended easing COVID-19 travel restrictions to let foreign travelers from more countries enter the bloc, which at times has struggled to agree on a common response to the pandemic.
The United States continues to ban entry of non-U.S. citizens arriving from most of Europe, despite growing calls from airline industry leaders to speed the reopening of transatlantic travel.
(Reporting by Tracy Rucinski; Editing by Peter Cooney)
((tracy.rucinski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Tracy Rucinski CHICAGO, May 17 (Reuters) - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O are adding flights to Italy with protocols for coronavirus testing as the country opens to leisure travelers from the United States for the first time in more than a year. On Sunday, the Italian government eased a number of COVID-19 travel restrictions and requirements as it looks to boost summer tourism, including scrapping a mandatory quarantine for visitors from certain countries as long as they test negative for COVID-19. Airlines have lobbied for COVID-tested flights as a path to restart international travel, which has been severely restricted as governments seek to contain coronavirus infections.
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By Tracy Rucinski CHICAGO, May 17 (Reuters) - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O are adding flights to Italy with protocols for coronavirus testing as the country opens to leisure travelers from the United States for the first time in more than a year. As a result, United on Monday joined Delta and American in announcing additional COVID-tested flights to the popular European travel spot, which had been closed to tourists from countries including the United States, Canada and Japan. To return to the United States, travelers must present a negative test taken no more than 72 hours before departure, even if they have been vaccinated.
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By Tracy Rucinski CHICAGO, May 17 (Reuters) - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O are adding flights to Italy with protocols for coronavirus testing as the country opens to leisure travelers from the United States for the first time in more than a year. As a result, United on Monday joined Delta and American in announcing additional COVID-tested flights to the popular European travel spot, which had been closed to tourists from countries including the United States, Canada and Japan. As cases decline in parts of the world with effective vaccination campaigns, the European Union's executive has recommended easing COVID-19 travel restrictions to let foreign travelers from more countries enter the bloc, which at times has struggled to agree on a common response to the pandemic.
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By Tracy Rucinski CHICAGO, May 17 (Reuters) - United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O are adding flights to Italy with protocols for coronavirus testing as the country opens to leisure travelers from the United States for the first time in more than a year. The three U.S. airlines have multiple nonstop options to Rome and Milan and Delta plans to add nonstop flights to Venice from New York in July and from Atlanta in August. If negative, they will be exempted from quarantine.
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4467.0
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2021-05-17 00:00:00 UTC
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ANALYSIS-In world's top copper region political risk rises
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AAL
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https://www.nasdaq.com/articles/analysis-in-worlds-top-copper-region-political-risk-rises-2021-05-17
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By Marco Aquino and Fabian Cambero
LIMA/SANTIAGO, May 17 (Reuters) - In South America's copper-rich Andes political risk is rising as high poverty and debt levels amid the COVID-19 pandemic drive potentially sharp policy shifts and put mining wealth into the crosshairs of angry citizens and political leaders.
In No. 1 copper producer Chile, an overhaul of its market-orientated constitution is underway, and it is debating whether to hike royalties on miners. Peru, the No. 2 producer, is heading for a polarized June presidential election with a little-known socialist leading in the polls who wants to redistribute mining wealth.
"Some 42% of world copper mining production is under political uncertainty that could entail risks on future production," said Juan Carlos Guajardo, head of the Chilean consulting firm Plusmining.
That uncertainty is helping support global copper prices CMCU3 that have hit record highs as post-pandemic Chinese demand bounces back, as well as rapid development of a green revolution of electrification seen as driving further appetite for the metal in years ahead.
But in Latin America itself a bounceback looks some way off. The COVID-19 pandemic has driven a spike in poverty, propelling measures to unlock and redistribute wealth as many struggle to stay afloat amid lockdowns and high healthcare costs.
That has put mineral resources in focus, given the outsized role they play in the region's economic engine.
Peruvian presidential front-runner Pedro Castillo has pledged to keep 70% of mining profits in the country and stop foreign firms' "plundering", and has warned he could nationalize some resources. He leads in opinion polls ahead of the June 6 vote, though right-wing Keiko Fujimori is gaining ground.
Chile is in the midst of a longer process to rewrite its Augusto Pinochet-era constitution, which underpinned decades of growth but has also been blamed for stoking inequality that led to violent protests that rocked the country in 2019.
Chile's lower house also approved this month a bill that would sharply hike taxes on copper mining to pay for social programs, which some industry insiders warned could bring mining to a halt.
Pablo de la Flor, executive director of Peru's main mining chamber, said there were issues of resource allocation that needed to be addressed. But the solution lay in reforming inefficient local governments rather than the tax regime, he said.
"Sadly the funds haven't been used properly to close social gaps, leaving productive regions lagging behind," he said.
COMMON SENSE TO PREVAIL?
The convergence of risks is creating the most uncertain backdrop in years, although the region has long been volatile, with frequent political changes, protests and strikes.
Mining executives said that some of the risk may be tempered as those seeking the boldest changes came up against political opposition and were forced to water down their plans.
Diego Hernandez, head of Chile's mining industry group Sonami, said the opposition-led mining royalties bill would likely get amended in the upper house before being given the green light.
"I do not think the project will be approved as it is today in the Senate because it would be very irresponsible and reckless," he told Reuters. He warned earlier in May the bill would be a vote in favor of "no more mining".
"In a period where we all have to worry about the economic recovery, dispensing with or strangling mining does neither of these countries any good. In the end, one hopes that common sense will prevail."
Chilean state miner Codelco COBRE.UL is the world's largest producer of copper, while the Andean country is home to BHP's BHP.AX huge Escondida mine and Collahuasi, a joint venture by Glencore GLEN.N and Anglo American AAL.L.
In Peru, Diego Macera, director of the Peruvian Institute of Economics, said redistribution of mineral wealth was an obvious way to raise public funds for the post-pandemic recovery, though a fragmented congress would likely limit the power of whoever becomes president.
But, he added, the uncertainty could put off investors, fearful the state will seize assets.
"Nobody likes to put in $1-1.5 billion of investment when the head of state might nationalize it," he said.
Peru has a slate of some $56 billion in mining investments. Longrunning community opposition has already paralyzed some projects, including Southern Copper's SCCO.N Tia Maria project and a $5 billion gold project by Newmont NEM.N and local firm Buenaventura.
In Chile, Plusmining's Guajardo said miners' focus on existing "brownfield" projects meant production levels would dip if new investments weren't made to upgrade them.
"If you don't make those investments you will have to manage an asset that is going to have a tendency to decline in its grades and variables," he said.
"That will be reflected in lower production."
Copper prices hit recordshttps://tmsnrt.rs/3eyZNRX
Yearly copper priceshttps://tmsnrt.rs/3txHtNo
Top Peru presidential candidate vows to curb foreign firms 'looting' mining wealth
Chile copper miners cry foul as royalty bill advances to Senate
(Reporting by Marco Aquino in Lima and Fabian Cambero in Santiago; Editing by Adam Jourdan and Rosalba O'Brien)
((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chilean state miner Codelco COBRE.UL is the world's largest producer of copper, while the Andean country is home to BHP's BHP.AX huge Escondida mine and Collahuasi, a joint venture by Glencore GLEN.N and Anglo American AAL.L. That uncertainty is helping support global copper prices CMCU3 that have hit record highs as post-pandemic Chinese demand bounces back, as well as rapid development of a green revolution of electrification seen as driving further appetite for the metal in years ahead. In Peru, Diego Macera, director of the Peruvian Institute of Economics, said redistribution of mineral wealth was an obvious way to raise public funds for the post-pandemic recovery, though a fragmented congress would likely limit the power of whoever becomes president.
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Chilean state miner Codelco COBRE.UL is the world's largest producer of copper, while the Andean country is home to BHP's BHP.AX huge Escondida mine and Collahuasi, a joint venture by Glencore GLEN.N and Anglo American AAL.L. By Marco Aquino and Fabian Cambero LIMA/SANTIAGO, May 17 (Reuters) - In South America's copper-rich Andes political risk is rising as high poverty and debt levels amid the COVID-19 pandemic drive potentially sharp policy shifts and put mining wealth into the crosshairs of angry citizens and political leaders. "Some 42% of world copper mining production is under political uncertainty that could entail risks on future production," said Juan Carlos Guajardo, head of the Chilean consulting firm Plusmining.
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Chilean state miner Codelco COBRE.UL is the world's largest producer of copper, while the Andean country is home to BHP's BHP.AX huge Escondida mine and Collahuasi, a joint venture by Glencore GLEN.N and Anglo American AAL.L. By Marco Aquino and Fabian Cambero LIMA/SANTIAGO, May 17 (Reuters) - In South America's copper-rich Andes political risk is rising as high poverty and debt levels amid the COVID-19 pandemic drive potentially sharp policy shifts and put mining wealth into the crosshairs of angry citizens and political leaders. Chile's lower house also approved this month a bill that would sharply hike taxes on copper mining to pay for social programs, which some industry insiders warned could bring mining to a halt.
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Chilean state miner Codelco COBRE.UL is the world's largest producer of copper, while the Andean country is home to BHP's BHP.AX huge Escondida mine and Collahuasi, a joint venture by Glencore GLEN.N and Anglo American AAL.L. By Marco Aquino and Fabian Cambero LIMA/SANTIAGO, May 17 (Reuters) - In South America's copper-rich Andes political risk is rising as high poverty and debt levels amid the COVID-19 pandemic drive potentially sharp policy shifts and put mining wealth into the crosshairs of angry citizens and political leaders. Chile's lower house also approved this month a bill that would sharply hike taxes on copper mining to pay for social programs, which some industry insiders warned could bring mining to a halt.
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4468.0
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2021-05-14 00:00:00 UTC
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Delta will require COVID-19 vaccine for new employees
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AAL
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https://www.nasdaq.com/articles/delta-will-require-covid-19-vaccine-for-new-employees-2021-05-14-0
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By Tracy Rucinski
May 14 (Reuters) - Delta Air Lines DAL.N will require all new hires in the United States to be vaccinated against COVID-19, one of the first major companies to issue such a mandate.
"Any person joining Delta in the future, future employees, we're going to mandate they be vaccinated before they can sign up with the company," Chief Executive Ed Bastian told CNN in an interview late Thursday.
Delta is not making the requirement for current employees, he said. More than 60% of Delta's employees are already vaccinated, according to the company.
While private U.S. companies can require employees to get vaccinated against COVID-19, experts have said they could put themselves at risk of legal and cultural backlash if they do so.
Delta's Bastian noted, however, that employees who are not vaccinated may not be able to work on international flights given possible entry requirements by other countries.
"We know that vaccines are the best tool we have to protect one another and bring an end to the pandemic," Delta said in a statement on Friday. It called the move to require vaccines for new hires important as "our business recovers and demand for air travel continues to rise."
Delta is among U.S. airlines that plan to resume pilot hiring this year after a freeze on hires during the pandemic.
Among its large peers, United Airlines' UAL.O CEO Scott Kirby said in January that he may mandate vaccinations for employees and called on other companies to do the same but has yet to make a move in that direction.
A United spokeswoman on Friday said there was no change to the company's policy.
American Airlines AAL.O said it does not plan to require the vaccine unless it is mandatory for entry into certain destinations. To encourage inoculation, it has offered employees who get the vaccine an additional vacation day in 2022 and a $50 gift card.
(Reporting by Tracy Rucinski Editing by Frances Kerry and Jane Merriman)
((tracy.rucinski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O said it does not plan to require the vaccine unless it is mandatory for entry into certain destinations. By Tracy Rucinski May 14 (Reuters) - Delta Air Lines DAL.N will require all new hires in the United States to be vaccinated against COVID-19, one of the first major companies to issue such a mandate. It called the move to require vaccines for new hires important as "our business recovers and demand for air travel continues to rise."
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American Airlines AAL.O said it does not plan to require the vaccine unless it is mandatory for entry into certain destinations. By Tracy Rucinski May 14 (Reuters) - Delta Air Lines DAL.N will require all new hires in the United States to be vaccinated against COVID-19, one of the first major companies to issue such a mandate. It called the move to require vaccines for new hires important as "our business recovers and demand for air travel continues to rise."
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American Airlines AAL.O said it does not plan to require the vaccine unless it is mandatory for entry into certain destinations. By Tracy Rucinski May 14 (Reuters) - Delta Air Lines DAL.N will require all new hires in the United States to be vaccinated against COVID-19, one of the first major companies to issue such a mandate. "Any person joining Delta in the future, future employees, we're going to mandate they be vaccinated before they can sign up with the company," Chief Executive Ed Bastian told CNN in an interview late Thursday.
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American Airlines AAL.O said it does not plan to require the vaccine unless it is mandatory for entry into certain destinations. By Tracy Rucinski May 14 (Reuters) - Delta Air Lines DAL.N will require all new hires in the United States to be vaccinated against COVID-19, one of the first major companies to issue such a mandate. More than 60% of Delta's employees are already vaccinated, according to the company.
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4469.0
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2021-05-14 00:00:00 UTC
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Why Airline Stocks Are Up Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-up-today-2021-05-14
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nan
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What happened
The U.S. Centers for Disease Control and Prevention (CDC) provided new fuel for the so-called "reopening trade," and airline stocks are taking flight as a result. Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) are leading the way, all up more than 5% on Friday.
So what
Few sectors were hit harder by the pandemic than airline stocks, and the industry endured a miserable 2020 as demand for travel all but vanished. But 2021 has been a different story. With vaccines available and vaccination rates climbing, so have airline stocks on hope for a strong summer vacation season.
Image source: Getty Images.
The stocks of late have been choppy, with investors worried about new COVID-19 variants and fears of a new wave. But late Thursday, the CDC took a big step toward signaling the all-clear, announcing that people who are fully vaccinated against COVID-19 do not need to wear masks or practice social distancing.
There are a lot of caveats in the announcement, and by no means is the pandemic over. But the announcement was the most optimistic statement out of a federal health agency in a long time. It seems sure to encourage more people to travel this summer, and airline stocks are up as a result.
Spirit, with its industry-low costs and focus on leisure travel, is viewed as a likely beneficiary of an uptick in demand. Delta, United, and American are three of the nation's largest airlines and have some of the most complex balance sheets and route networks. They both need a recovery, and thanks to their scale, should soak up a lot of the traffic that comes back this summer.
Now what
There is still reason for caution. Despite the CDC's new guidance, there is still the risk of a new wave of the pandemic. And even if travel does come back, the uptick in demand is arguably already priced into the share prices.
For buy-and-hold investors able to ignore any near-term turbulence, I think Delta is the best investment among these choices today. The company was the best-run major airline prior to the pandemic and a good bet to power through whatever headwinds might be ahead.
10 stocks we like better than Delta Air Lines
When investing geniuses David and Tom Gardner have 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.*
David and Tom 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 May 11, 2021
Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. The Motley Fool recommends Delta Air Lines and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) are leading the way, all up more than 5% on Friday. What happened The U.S. Centers for Disease Control and Prevention (CDC) provided new fuel for the so-called "reopening trade," and airline stocks are taking flight as a result. So what Few sectors were hit harder by the pandemic than airline stocks, and the industry endured a miserable 2020 as demand for travel all but vanished.
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Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) are leading the way, all up more than 5% on Friday. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) are leading the way, all up more than 5% on Friday. 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) are leading the way, all up more than 5% on Friday. It seems sure to encourage more people to travel this summer, and airline stocks are up as a result. * David and Tom 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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2021-05-14 00:00:00 UTC
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Are Odds In Favor Of American Airlines Stock?
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https://www.nasdaq.com/articles/are-odds-in-favor-of-american-airlines-stock-2021-05-14
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With the progress in mass vaccination, passenger numbers at TSA checkpoints have observed a strong uptick in recent months. However, the air travel demand remains 50% below pre-Covid levels – indicating a downside risk for American Airlines (NASDAQ: AAL). After two rounds of payroll support, the U.S. government initiated a third phase as the huge salary cost head can trigger involuntary furloughs. While government support programs have buoyed investor sentiments and pushed airline stocks higher, American Airlines’ low net margins due to sizable interest expenses are likely to impact long-term shareholder returns. Notably, the PSP-3 requirements include suspension of dividends and share repurchases until September 2022. Given the tepid air travel demand and a slow macroeconomic recovery, Trefis believes that AAL stock is a risky bet at current levels. We highlight the historical trends in the company’s revenues, margins, and valuation multiple in an interactive dashboard analysis, American Airlines Valuation.
Second quarter expectations highlight the lull in air travel business
Per Q1 earnings release, the company expects its second-quarter revenues to observe a 40% contraction from pre-Covid levels (Q2 2019). Growth in passenger figures led to a guidance revision by American’s peers including United and Delta with an expectation of positive cash generation during the latter half of the year. However, the resurgence in coronavirus cases in various countries continues to impact international and business travel demand. Also, the third round of payroll support indicates that the lull in air travel business is likely to remain this year. The company will receive $3.3 billion of aid under the third round as opposed to $2.1 billion in the previous quarter.
Government support has offset huge fixed costs in the past four quarters
In 2020, American Airlines reported $17 billion of total revenues and $6.5 billion of operating cash outflow – assisted by the $6 billion of PSP-1. Subsequently, the company’s reported $4 billion of revenues in Q1 2021 and operating cash turned positive to $174 million due to $2.1 billion of PSP-2. Thus, government aid has been a key factor offsetting AAL’s salary-related expenses (salary and wages are 30% of total revenues). Moreover, the $1 billion of annual interest expenses weighed on the company’s net margins even before the pandemic and are expected to impact the balance sheet de-leveraging prospects in the coming years.
Is there a better investment over American Airlines? American Airlines Stock Comparison With Peers summarizes how AAL compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given the tepid air travel demand and a slow macroeconomic recovery, Trefis believes that AAL stock is a risky bet at current levels. However, the air travel demand remains 50% below pre-Covid levels – indicating a downside risk for American Airlines (NASDAQ: AAL). Thus, government aid has been a key factor offsetting AAL’s salary-related expenses (salary and wages are 30% of total revenues).
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However, the air travel demand remains 50% below pre-Covid levels – indicating a downside risk for American Airlines (NASDAQ: AAL). Given the tepid air travel demand and a slow macroeconomic recovery, Trefis believes that AAL stock is a risky bet at current levels. Thus, government aid has been a key factor offsetting AAL’s salary-related expenses (salary and wages are 30% of total revenues).
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However, the air travel demand remains 50% below pre-Covid levels – indicating a downside risk for American Airlines (NASDAQ: AAL). Given the tepid air travel demand and a slow macroeconomic recovery, Trefis believes that AAL stock is a risky bet at current levels. Thus, government aid has been a key factor offsetting AAL’s salary-related expenses (salary and wages are 30% of total revenues).
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However, the air travel demand remains 50% below pre-Covid levels – indicating a downside risk for American Airlines (NASDAQ: AAL). American Airlines Stock Comparison With Peers summarizes how AAL compares against peers on metrics that matter. Given the tepid air travel demand and a slow macroeconomic recovery, Trefis believes that AAL stock is a risky bet at current levels.
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4471.0
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2021-05-14 00:00:00 UTC
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Wizz Air joins airlines cancelling Tel Aviv flights
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AAL
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https://www.nasdaq.com/articles/wizz-air-joins-airlines-cancelling-tel-aviv-flights-2021-05-14
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nan
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DUBAI, May 14 (Reuters) - Wizz Air WIZZ.L has cancelled all flights to Tel Aviv on Friday and Saturday, joining other airlines in avoiding Israel due to escalating conflict there.
Flights to Tel Aviv from Abu Dhabi in the United Arab Emirates, Larnaca in Cyprus and Varna in Bulgaria were cancelled on Friday, Wizz Air's website showed.
The European Union Aviation Safety Agency (EASA) has warned airlines to monitor heightened tensions in Israel, including exchanges of rocket fire and air strikes. "The situation in the region remains a matter of high concern for commercial aviation," it said in a bulletin to airlines on Wednesday.
Emirati carrier flydubai was to operate three of four scheduled flights from Dubai to Tel Aviv on Friday, and two of four scheduled services on Saturday, its website showed.
An airline spokeswoman said fewer flights were being operated due to a drop in demand.
Other airlines including British Airways ICAG.L and American Airlines AAL.O cancelled flights to Tel Aviv earlier in the week.
Palestinian militants have repeatedly shelled the Tel Aviv area during hostilities that erupted on Monday, raising safety concerns about Ben Gurion Airport, Israel's main airport, and prompting some carriers to reroute flights to Ramon Airport, some 200 km (125 miles) to the south, near the Red Sea city of Eilat.
(Reporting by Alexander Cornwell; editing by Jason Neely)
((Alexander.Cornwell@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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Other airlines including British Airways ICAG.L and American Airlines AAL.O cancelled flights to Tel Aviv earlier in the week. DUBAI, May 14 (Reuters) - Wizz Air WIZZ.L has cancelled all flights to Tel Aviv on Friday and Saturday, joining other airlines in avoiding Israel due to escalating conflict there. Flights to Tel Aviv from Abu Dhabi in the United Arab Emirates, Larnaca in Cyprus and Varna in Bulgaria were cancelled on Friday, Wizz Air's website showed.
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Other airlines including British Airways ICAG.L and American Airlines AAL.O cancelled flights to Tel Aviv earlier in the week. DUBAI, May 14 (Reuters) - Wizz Air WIZZ.L has cancelled all flights to Tel Aviv on Friday and Saturday, joining other airlines in avoiding Israel due to escalating conflict there. Flights to Tel Aviv from Abu Dhabi in the United Arab Emirates, Larnaca in Cyprus and Varna in Bulgaria were cancelled on Friday, Wizz Air's website showed.
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Other airlines including British Airways ICAG.L and American Airlines AAL.O cancelled flights to Tel Aviv earlier in the week. DUBAI, May 14 (Reuters) - Wizz Air WIZZ.L has cancelled all flights to Tel Aviv on Friday and Saturday, joining other airlines in avoiding Israel due to escalating conflict there. Palestinian militants have repeatedly shelled the Tel Aviv area during hostilities that erupted on Monday, raising safety concerns about Ben Gurion Airport, Israel's main airport, and prompting some carriers to reroute flights to Ramon Airport, some 200 km (125 miles) to the south, near the Red Sea city of Eilat.
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Other airlines including British Airways ICAG.L and American Airlines AAL.O cancelled flights to Tel Aviv earlier in the week. DUBAI, May 14 (Reuters) - Wizz Air WIZZ.L has cancelled all flights to Tel Aviv on Friday and Saturday, joining other airlines in avoiding Israel due to escalating conflict there. Flights to Tel Aviv from Abu Dhabi in the United Arab Emirates, Larnaca in Cyprus and Varna in Bulgaria were cancelled on Friday, Wizz Air's website showed.
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4472.0
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2021-05-13 00:00:00 UTC
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Colonial Pipeline Paid $5 Million Ransom After Hack
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https://www.nasdaq.com/articles/colonial-pipeline-paid-%245-million-ransom-after-hack-2021-05-13
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The company that operates a key transmission pipeline that delivers gasoline and jet fuel to East Coast markets paid $5 million to hackers to regain control of its systems.
Colonial Pipeline had initially said it had no intention of paying the ransom demanded by hackers who disabled its computer networks and shut down the pipeline. But the company did pay the ransom, according to a Bloomberg report, delivering about $5 million in an untraceable cryptocurrency within hours after the attack.
Image source: Getty Images.
The pipeline shutdown has led to fuel shortages and lines at gas stations from Texas to New Jersey, and caused American Airlines Group to add fuel stops to some of its Charlotte flights. The identity of the hackers is unknown, though the FBI said they are believed to be linked to a group operating out of Russia or Eastern Europe.
Even with the ransom payment, Colonial was unable to prevent disruptions. According to the report, Colonial received a decrypting tool to restore its network after paying the ransom, but the tool was so slow that the company was forced to rely on its internal backups to help restore the system.
Colonial said Thursday morning that the pipeline had resumed service after being off line for five days, but disruptions could last for days while reserves are refilled and supply chains normalize.
10 stocks we like better than American Airlines Group
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company that operates a key transmission pipeline that delivers gasoline and jet fuel to East Coast markets paid $5 million to hackers to regain control of its systems. But the company did pay the ransom, according to a Bloomberg report, delivering about $5 million in an untraceable cryptocurrency within hours after the attack. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them!
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The company that operates a key transmission pipeline that delivers gasoline and jet fuel to East Coast markets paid $5 million to hackers to regain control of its systems. According to the report, Colonial received a decrypting tool to restore its network after paying the ransom, but the tool was so slow that the company was forced to rely on its internal backups to help restore the system. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Colonial Pipeline had initially said it had no intention of paying the ransom demanded by hackers who disabled its computer networks and shut down the pipeline. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Lou Whiteman has no position in any of the stocks mentioned.
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Even with the ransom payment, Colonial was unable to prevent disruptions. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. The Motley Fool has no position in any of the stocks mentioned.
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4473.0
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2021-05-13 00:00:00 UTC
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British Airways cancels flight to Tel Aviv amid escalating conflict
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AAL
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https://www.nasdaq.com/articles/british-airways-cancels-flight-to-tel-aviv-amid-escalating-conflict-2021-05-13-0
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Adds easyJet statement, background
LONDON, May 13 (Reuters) - British Airways ICAG.L cancelled its flights to and from Tel Aviv on Thursday, the latest international carrier to avoid flying to Israel amid an escalating conflict there.
"The safety and security of our colleagues and customers is always our top priority, and we continue to monitor the situation closely," British Airways said.
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O on Wednesday all cancelled flights between the United States and Tel Aviv.
The fiercest hostilities in years continued on Thursday, as Israel was preparing ground troops along the Gaza border and Hamas launched rocket barrages at southern Israel.
British airline easyJet EZJ.L said that it was not yet cancelling its flights to Tel Aviv. Its next flight there is from Berlin and not scheduled until May 16, with a service from London Luton to Tel Aviv scheduled for May 18.
"We will of course continue to monitor the situation," an easyJet spokeswoman said.
From May 17, Israel is one of the few low-risk COVID-19 destinations which Britons can visit without needing to quarantine on their return, but the conflict is already making getting there difficult and will likely deter visitors.
(Reporting by Sarah Young; editing by Guy Faulconbridge and Michael Holden)
((sarah.young@thomsonreuters.com; +44 20 7542 1109; Reuters Messaging: sarah.young.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O on Wednesday all cancelled flights between the United States and Tel Aviv. Adds easyJet statement, background LONDON, May 13 (Reuters) - British Airways ICAG.L cancelled its flights to and from Tel Aviv on Thursday, the latest international carrier to avoid flying to Israel amid an escalating conflict there. "The safety and security of our colleagues and customers is always our top priority, and we continue to monitor the situation closely," British Airways said.
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United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O on Wednesday all cancelled flights between the United States and Tel Aviv. Adds easyJet statement, background LONDON, May 13 (Reuters) - British Airways ICAG.L cancelled its flights to and from Tel Aviv on Thursday, the latest international carrier to avoid flying to Israel amid an escalating conflict there. "The safety and security of our colleagues and customers is always our top priority, and we continue to monitor the situation closely," British Airways said.
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United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O on Wednesday all cancelled flights between the United States and Tel Aviv. Adds easyJet statement, background LONDON, May 13 (Reuters) - British Airways ICAG.L cancelled its flights to and from Tel Aviv on Thursday, the latest international carrier to avoid flying to Israel amid an escalating conflict there. British airline easyJet EZJ.L said that it was not yet cancelling its flights to Tel Aviv.
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United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O on Wednesday all cancelled flights between the United States and Tel Aviv. The fiercest hostilities in years continued on Thursday, as Israel was preparing ground troops along the Gaza border and Hamas launched rocket barrages at southern Israel. British airline easyJet EZJ.L said that it was not yet cancelling its flights to Tel Aviv.
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4474.0
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2021-05-12 00:00:00 UTC
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Boeing wins FAA OK for 737 MAX electrical fix, notifies airlines
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https://www.nasdaq.com/articles/boeing-wins-faa-ok-for-737-max-electrical-fix-notifies-airlines-2021-05-12
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By David Shepardson
WASHINGTON, May 12 (Reuters) - Boeing Co BA.N on Wednesday won approval from U.S. regulators for a fix of an electrical grounding issue that had affected about 100 737 MAX airplanes, clearing the way for their quick return to service after flights were halted in early April, the planemaker confirmed.
Sources had told Reuters the Federal Aviation Administration (FAA) had signed off on two service bulletins Boeing sent to air carriers on Wednesday on the fixes.
"After gaining final approvals from the FAA, we have issued service bulletins for the affected fleet," Boeing told Reuters. "We are also completing the work as we prepare to resume deliveries."
The announcement is a relief for U.S. air carriers that have been anxiously waiting to get the planes back into service before the traditional late May start to the summer travel season as air travel demand increases.
The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines UAL.O - removed more than 60 jets from service after the notice from Boeing.
The FAA did not immediately comment, but earlier on Wednesday, FAA Administrator Steve Dickson told U.S. lawmakers that the electrical issue, which had grounded about a quarter of the MAX fleet, would need a "pretty straightforward fix."
Dickson also said he was fully confident in the safety of the MAX, which was approved to returned to service in November 2020 after being grounded for 20 months following two fatal crashes in five months that killed 346 people.
Reuters reported on May 4 that the FAA asked Boeing to supply fresh analysis showing numerous 737 MAX subsystems would not be affected by electrical grounding issues first flagged in three areas of the jet in April.
The electrical issue emerged after Boeing changed a manufacturing method as it worked to speed up production of the jetliner, a third person said. A fourth person said the change improved a hole-drilling process.
Boeing CEO Dave Calhoun in April told CNBC it was a "three- to four-day fix recovery time frame" after the bulletins were issued.
Airlines pulled dozens of 737 MAX jets from service in early April after Boeing warned of the electrical problem, linked to a backup power control unit in the cockpit on some recently built airplanes.
The problem, which also halted delivery of new planes, was then found in two other places on the flight deck, including the storage rack where the control unit is kept and the instrument panel facing the pilots.
The FAA said other carriers affected include Cayman Airways, Copa Airlines, GOL Linhas Aereas, Iceland Air, Minsheng Leasing, Neos Air, Shanding Airlines, SilkAir, Spice Jet, Sunwing Airlines, TUI, Turkish Airlines, Valla Jets Limited, WestJet Airlines and Xiamen Airlines.
The regulator has daily meetings with Boeing to discuss the MAX's performance, Dickson said. In February, the FAA said it was tracking all Boeing 737 MAX airplanes using satellite data under an agreement with air traffic surveillance firm Aireon LLC.
(Reporting by David Shepardson; Editing by Tom Hogue and Gerry Doyle)
((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 top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines UAL.O - removed more than 60 jets from service after the notice from Boeing. By David Shepardson WASHINGTON, May 12 (Reuters) - Boeing Co BA.N on Wednesday won approval from U.S. regulators for a fix of an electrical grounding issue that had affected about 100 737 MAX airplanes, clearing the way for their quick return to service after flights were halted in early April, the planemaker confirmed. Reuters reported on May 4 that the FAA asked Boeing to supply fresh analysis showing numerous 737 MAX subsystems would not be affected by electrical grounding issues first flagged in three areas of the jet in April.
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The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines UAL.O - removed more than 60 jets from service after the notice from Boeing. By David Shepardson WASHINGTON, May 12 (Reuters) - Boeing Co BA.N on Wednesday won approval from U.S. regulators for a fix of an electrical grounding issue that had affected about 100 737 MAX airplanes, clearing the way for their quick return to service after flights were halted in early April, the planemaker confirmed. "After gaining final approvals from the FAA, we have issued service bulletins for the affected fleet," Boeing told Reuters.
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The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines UAL.O - removed more than 60 jets from service after the notice from Boeing. By David Shepardson WASHINGTON, May 12 (Reuters) - Boeing Co BA.N on Wednesday won approval from U.S. regulators for a fix of an electrical grounding issue that had affected about 100 737 MAX airplanes, clearing the way for their quick return to service after flights were halted in early April, the planemaker confirmed. The FAA said other carriers affected include Cayman Airways, Copa Airlines, GOL Linhas Aereas, Iceland Air, Minsheng Leasing, Neos Air, Shanding Airlines, SilkAir, Spice Jet, Sunwing Airlines, TUI, Turkish Airlines, Valla Jets Limited, WestJet Airlines and Xiamen Airlines.
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The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines UAL.O - removed more than 60 jets from service after the notice from Boeing. By David Shepardson WASHINGTON, May 12 (Reuters) - Boeing Co BA.N on Wednesday won approval from U.S. regulators for a fix of an electrical grounding issue that had affected about 100 737 MAX airplanes, clearing the way for their quick return to service after flights were halted in early April, the planemaker confirmed. Sources had told Reuters the Federal Aviation Administration (FAA) had signed off on two service bulletins Boeing sent to air carriers on Wednesday on the fixes.
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2021-05-12 00:00:00 UTC
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EXCLUSIVE-Boeing wins FAA OK for 737 MAX electrical fix, notifies airlines -sources
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AAL
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https://www.nasdaq.com/articles/exclusive-boeing-wins-faa-ok-for-737-max-electrical-fix-notifies-airlines-sources-2021-05
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nan
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WASHINGTON, May 12 (Reuters) - Boeing Co BA.N on Wednesday won approval from U.S. regulators for a fix of an electrical grounding issue that had halted flights for about 100 737 MAX airplanes, clearing the way for their quick return to service after flights were halted in early April, sources told Reuters.
The largest U.S. planemaker confirmed to Reuters the Federal Aviation Administration (FAA) had signed off on the service bulletins Boeing sent to carriers on Wednesday on the fixes.
"After gaining final approvals from the FAA, we have issued service bulletins for the affected fleet," Boeing told Reuters.
"We are also completing the work as we prepare to resume deliveries."
(Reporting by David Shepardson; Editing by Tom Hogue)
((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, May 12 (Reuters) - Boeing Co BA.N on Wednesday won approval from U.S. regulators for a fix of an electrical grounding issue that had halted flights for about 100 737 MAX airplanes, clearing the way for their quick return to service after flights were halted in early April, sources told Reuters. The largest U.S. planemaker confirmed to Reuters the Federal Aviation Administration (FAA) had signed off on the service bulletins Boeing sent to carriers on Wednesday on the fixes. "After gaining final approvals from the FAA, we have issued service bulletins for the affected fleet," Boeing told Reuters.
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WASHINGTON, May 12 (Reuters) - Boeing Co BA.N on Wednesday won approval from U.S. regulators for a fix of an electrical grounding issue that had halted flights for about 100 737 MAX airplanes, clearing the way for their quick return to service after flights were halted in early April, sources told Reuters. The largest U.S. planemaker confirmed to Reuters the Federal Aviation Administration (FAA) had signed off on the service bulletins Boeing sent to carriers on Wednesday on the fixes. "After gaining final approvals from the FAA, we have issued service bulletins for the affected fleet," Boeing told Reuters.
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WASHINGTON, May 12 (Reuters) - Boeing Co BA.N on Wednesday won approval from U.S. regulators for a fix of an electrical grounding issue that had halted flights for about 100 737 MAX airplanes, clearing the way for their quick return to service after flights were halted in early April, sources told Reuters. "We are also completing the work as we prepare to resume deliveries." (Reporting by David Shepardson; Editing by Tom Hogue) ((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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"After gaining final approvals from the FAA, we have issued service bulletins for the affected fleet," Boeing told Reuters. "We are also completing the work as we prepare to resume deliveries." (Reporting by David Shepardson; Editing by Tom Hogue) ((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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4476.0
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2021-05-12 00:00:00 UTC
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European stocks steady after Tuesday's rout, eyes on U.S. inflation data
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AAL
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https://www.nasdaq.com/articles/european-stocks-steady-after-tuesdays-rout-eyes-on-u.s.-inflation-data-2021-05-12
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By Sruthi Shankar
May 12 (Reuters) - European stocks steadied on Wednesday after their worst selloff this year as strong earnings reports and signs of a speedy economic recovery offset concerns about a rapid rise in prices.
The pan-European STOXX 600 index .STOXX rose 0.2% after falling almost 2% on Tuesday as investors offloaded riskier assets on worries that rising U.S. inflation could lead to tighter monetary policy.
Ample liquidity, a global semiconductor shortage and a recent rally in commodity prices are adding to fears of inflation as developed economies gradually reopen after lockdowns.
All eyes will be on U.S. consumer price data for April that is due later in the day, with analysts expecting a 3.6% lift in year-on-year prices, boosted by last April's low base.
"We suspect that the market knows about it, and is positioned for it," said Marija Veitmane, senior multi-asset strategist at State Street Global Markets.
"What we're not going to get an answer for and is really crucial is whether this increase in prices is transitory as the Fed is telling us or is it something more persistent that market is worried about."
UK's blue-chip FTSE 100 .FTSE outperformed as data showed Britain's economy grew by a stronger-than-expected 2.1% in March from February. .L
Miners .SXPP provided the biggest boost, with shares of Glencore GLEN.L, Anglo American AAL.L and Rio Tinto RIO.L gaining about a percent each as commodity prices continued to rally. MET/L
"We have a kind of central bank-sanctioned rally in commodities because they want the economy to run hot. That is great for industrials and materials and those stocks will continue to do well," added Veitmane.
European earnings are now expected to surge 90.2% in the first quarter, as per Refinitiv IBES data, up from a forecast of 83.1% growth last week.
German lender Commerzbank CBKG.DE jumped 7.6% after it beat expectations for first-quarter profit and raised its revenue outlook.
Spirits maker Diageo DGE.L rose 3.2% on restarting its capital return program, while Amsterdam-based technology investor Prosus NV PRX.AS gained 1.8% after plans to acquire up to 45.4% of shares in its parent Naspers NPNJn.J.
French video games company Ubisoft UBIP.PA fell 7.7% after it warned operating profit might fall this financial year.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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.L Miners .SXPP provided the biggest boost, with shares of Glencore GLEN.L, Anglo American AAL.L and Rio Tinto RIO.L gaining about a percent each as commodity prices continued to rally. By Sruthi Shankar May 12 (Reuters) - European stocks steadied on Wednesday after their worst selloff this year as strong earnings reports and signs of a speedy economic recovery offset concerns about a rapid rise in prices. Ample liquidity, a global semiconductor shortage and a recent rally in commodity prices are adding to fears of inflation as developed economies gradually reopen after lockdowns.
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.L Miners .SXPP provided the biggest boost, with shares of Glencore GLEN.L, Anglo American AAL.L and Rio Tinto RIO.L gaining about a percent each as commodity prices continued to rally. By Sruthi Shankar May 12 (Reuters) - European stocks steadied on Wednesday after their worst selloff this year as strong earnings reports and signs of a speedy economic recovery offset concerns about a rapid rise in prices. Ample liquidity, a global semiconductor shortage and a recent rally in commodity prices are adding to fears of inflation as developed economies gradually reopen after lockdowns.
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.L Miners .SXPP provided the biggest boost, with shares of Glencore GLEN.L, Anglo American AAL.L and Rio Tinto RIO.L gaining about a percent each as commodity prices continued to rally. By Sruthi Shankar May 12 (Reuters) - European stocks steadied on Wednesday after their worst selloff this year as strong earnings reports and signs of a speedy economic recovery offset concerns about a rapid rise in prices. Ample liquidity, a global semiconductor shortage and a recent rally in commodity prices are adding to fears of inflation as developed economies gradually reopen after lockdowns.
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.L Miners .SXPP provided the biggest boost, with shares of Glencore GLEN.L, Anglo American AAL.L and Rio Tinto RIO.L gaining about a percent each as commodity prices continued to rally. By Sruthi Shankar May 12 (Reuters) - European stocks steadied on Wednesday after their worst selloff this year as strong earnings reports and signs of a speedy economic recovery offset concerns about a rapid rise in prices. The pan-European STOXX 600 index .STOXX rose 0.2% after falling almost 2% on Tuesday as investors offloaded riskier assets on worries that rising U.S. inflation could lead to tighter monetary policy.
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4477.0
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2021-05-12 00:00:00 UTC
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Strong demand for diamonds, rough and smooth, boosts Alrosa sales
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AAL
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https://www.nasdaq.com/articles/strong-demand-for-diamonds-rough-and-smooth-boosts-alrosa-sales-2021-05-12
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Adds detail, quotes, context
MOSCOW, May 12 (Reuters) - Russia's Alrosa ALRS.MM, the world's largest producer of rough diamonds, said on Wednesday its April sales of rough and polished stones rose by 12% month-on-month to $401 million after demand for diamond jewellery strengthened in the main markets.
Global demand for precious stones has been recovering from the impact of the COVID-19 pandemic since the second half of 2020.
Sales by the state-controlled company totalled $1.6 billion for the first four months of 2021. At the height of the pandemic in April 2020, Alrosa's sales were only $15.6 million. They rose to $357 million in March this year.
Alrosa, which competes with Anglo American AAL.L unit De Beers, is gradually restoring its production after last year's 22% reduction. It plans to return to its usual annual output of 36-37 million carats within 2-3 years from 31-32 million carats in 2021.
Rough diamonds account for the bulk of Alrosa's sales, although it polishes those of rare colours or of large size for sale in auctions.
"Our April sales were well supported by the successful results delivered by auctions of high-quality large rough, as well as by strong sales of polished diamonds," Evgeny Agureev, its deputy chief executive, said in a statement.
A 100.94 carat stone called the Alrosa Spectacle - the largest polished diamond ever cut in Russia - will be auctioned by Christie's in Geneva on Wednesday.
(Reporting by Polina Devitt; editing by Louise Heavens and Barbara Lewis)
((Polina.Devitt@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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Alrosa, which competes with Anglo American AAL.L unit De Beers, is gradually restoring its production after last year's 22% reduction. Adds detail, quotes, context MOSCOW, May 12 (Reuters) - Russia's Alrosa ALRS.MM, the world's largest producer of rough diamonds, said on Wednesday its April sales of rough and polished stones rose by 12% month-on-month to $401 million after demand for diamond jewellery strengthened in the main markets. A 100.94 carat stone called the Alrosa Spectacle - the largest polished diamond ever cut in Russia - will be auctioned by Christie's in Geneva on Wednesday.
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Alrosa, which competes with Anglo American AAL.L unit De Beers, is gradually restoring its production after last year's 22% reduction. Adds detail, quotes, context MOSCOW, May 12 (Reuters) - Russia's Alrosa ALRS.MM, the world's largest producer of rough diamonds, said on Wednesday its April sales of rough and polished stones rose by 12% month-on-month to $401 million after demand for diamond jewellery strengthened in the main markets. It plans to return to its usual annual output of 36-37 million carats within 2-3 years from 31-32 million carats in 2021.
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Alrosa, which competes with Anglo American AAL.L unit De Beers, is gradually restoring its production after last year's 22% reduction. Adds detail, quotes, context MOSCOW, May 12 (Reuters) - Russia's Alrosa ALRS.MM, the world's largest producer of rough diamonds, said on Wednesday its April sales of rough and polished stones rose by 12% month-on-month to $401 million after demand for diamond jewellery strengthened in the main markets. Rough diamonds account for the bulk of Alrosa's sales, although it polishes those of rare colours or of large size for sale in auctions.
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Alrosa, which competes with Anglo American AAL.L unit De Beers, is gradually restoring its production after last year's 22% reduction. Adds detail, quotes, context MOSCOW, May 12 (Reuters) - Russia's Alrosa ALRS.MM, the world's largest producer of rough diamonds, said on Wednesday its April sales of rough and polished stones rose by 12% month-on-month to $401 million after demand for diamond jewellery strengthened in the main markets. Sales by the state-controlled company totalled $1.6 billion for the first four months of 2021.
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4478.0
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2021-05-11 00:00:00 UTC
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FEATURE-'Want the COVID-19 vaccine? Have a U.S. visa?' Latinos travel north for the shot
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AAL
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https://www.nasdaq.com/articles/feature-want-the-covid-19-vaccine-have-a-u.s.-visa-latinos-travel-north-for-the-shot-2021
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nan
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nan
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By Anthony Esposito, Cassandra Garrison and Marco Aquino
MEXICO CITY/LIMA, May 11 (Reuters) - "Want the COVID-19 vaccine? Have a U.S. visa? Contact us," reads a travel agency advertisement, offering deals to Mexicans to fly to the United States to get inoculated.
From Mexico to far-flung Argentina, thousands of Latin Americans are booking flights to the United States to take advantage of one of the world's most successful vaccination campaigns, as rollouts in their own countries sputter.
Latin America is one of the regions worst affected by the coronavirus pandemic, with the death toll set to pass 1 million this month, and many do not want to wait any longer for their turn to get vaccinated.
Some people are going it alone, while others have tapped travel agencies, which have responded by offering packages that arrange the vaccine appointment, flights, hotel stay and even offer extras such as city and shopping tours.
Gloria Sanchez, 66, and her husband, Angel Menendez 69, traveled in late April to Las Vegas to get Johnson & Johnson's JNJ.N single dose vaccine.
"We don't trust the public health services in this country," said Sanchez, now back in Mexico. "If we hadn't traveled to the United States where I felt a little more comfortable I wouldn't have gotten vaccinated here."
A travel agent in Mexico City organized the trip for them and an associate in Las Vegas handled things on the U.S. side, Sanchez said.
The U.S.-based associate signed them up for a vaccine appointment, then drove them to a Las Vegas convention center where they presented their Mexican passports and received their shots.
"We decided to make it a vacation and we went for a whole week, walked like crazy, ate really expensive but good food, and did some shopping," said Sanchez.
As demand has boomed, flight prices from Mexico to the United States have risen an average of 30%-40% since mid-March, said Rey Sanchez, who runs travel agency RSC Travel World.
"There are thousands of Mexicans and thousands of Latin Americans who have gone to the United States to get vaccinated," he said, adding that the top destinations have been Houston, Dallas, Miami and Las Vegas.
Reuters was unable to find official data on how many Latin Americans are traveling to the United States to get vaccinated. Travelers do not generally state vaccination as a reason to travel.
But U.S. cities have caught on to the trend, which is ushering much needed business into cash-strapped hotels, restaurants and other service activities.
"Welcome to New York, your vaccine is waiting for you! We'll administer the Johnson & Johnson vaccine at iconic sites across our city," New York City's government announced on Twitter on May 6.
The U.S. embassy in Peru recently advised residents on Twitter that travelers could visit the United States for medical treatment, including vaccinations.
Latin Americans who had traveled on a U.S. tourist visa that Reuters spoke to said they were able to obtain shots with IDs from their home countries.
As far south as Argentina, travel agencies are selling vaccination tourism trips.
An advertisement in Buenos Aires details the estimated cost of getting vaccinated in Miami: air ticket $2,000, hotel for a week $550, food $350, car rental $500, vaccine $0. For a total of $3,400.
NO HOPE OF A VACCINE SOON
While initially it was mostly wealthy Latin Americans looking to travel, increasingly people with more modest means are making bookings. For many, the cost of lengthy flights makes it a major undertaking.
"I'm getting money together to travel to California in June," said a worker at a car parts store in Lima, who asked not to be named for fear it could jeopardize his travel plans. "Considering how things are going here, there's no hope of a vaccine shot soon."
The slow rollout of vaccinations in most Latin American countries was a common reason cited for traveling to the United States, said Sanchez.
With little to no infrastructure to make vaccines domestically, campaigns in Latin America have been hampered by supply delays and shortages. The United States has administered nearly 262 million vaccine doses, some 2.3 times the number of shots given in all of Latin America, which has roughly twice the population, according to figures from the U.S. Centers for Disease Control and Prevention and Our World in Data.
Distrust in vaccination campaigns in Latin America is also a factor, said Sanchez.
Reports of batches of fake doses being seized by authorities or the required second dose not being available when it was time are some of the reasons Latin Americans gave for their distrust.
Vaccine tourism has fueled a jump in air travel to the United States, with fares for some last-minute flights doubling or even tripling since January, even as airlines increase capacity, according to Rene Armas Maes, commercial vice president at MIDAS Aviation, a London-based consultancy.
LATAM Airlines Group LTM.SN, the region's largest carrier, said on Thursday it was seeing increased demand from South Americans seeking to travel to the United States to get vaccinated against the coronavirus.
Aeromexico AEROMEX.MX said passenger traffic between Mexico and the United States increased 35% from March to April.
And American Airlines AAL.O also said it had seen demand growing rapidly from parts of Latin America in recent months and it had increased capacity, particularly to Colombia, Ecuador and Mexico.
"We're matching the increased demand in many of these markets, with additional frequencies, new routes or with the use of widebody aircraft, resulting in more capacity," said American Airlines.
For 29-year-old Giuliana Colameo, the chance to get vaccinated was a relief after she and her boyfriend in Mexico City were both infected by the coronavirus in 2020.
They traveled to New York City where they got vaccinated at a pharmacy last month. She said they were the only two people getting the shots.
"When they give you the vaccine it's like you almost cry. It's a relief: it gives you hope," said Colameo. "I feel very happy I did it and hopefully more people can do it."
(Reporting by Anthony Esposito and Cassandra Garrison in Mexico City and Marco Aquino in Lima; Additional reporting by Carolina Mandl in Sao Paulo and Anthony Boadle in Brasilia; Writing by Anthony Esposito; Editing by Rosalba O'Brien)
((anthony.esposito@tr.com; +5255 5282 7140;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And American Airlines AAL.O also said it had seen demand growing rapidly from parts of Latin America in recent months and it had increased capacity, particularly to Colombia, Ecuador and Mexico. From Mexico to far-flung Argentina, thousands of Latin Americans are booking flights to the United States to take advantage of one of the world's most successful vaccination campaigns, as rollouts in their own countries sputter. The United States has administered nearly 262 million vaccine doses, some 2.3 times the number of shots given in all of Latin America, which has roughly twice the population, according to figures from the U.S. Centers for Disease Control and Prevention and Our World in Data.
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And American Airlines AAL.O also said it had seen demand growing rapidly from parts of Latin America in recent months and it had increased capacity, particularly to Colombia, Ecuador and Mexico. By Anthony Esposito, Cassandra Garrison and Marco Aquino MEXICO CITY/LIMA, May 11 (Reuters) - "Want the COVID-19 vaccine? From Mexico to far-flung Argentina, thousands of Latin Americans are booking flights to the United States to take advantage of one of the world's most successful vaccination campaigns, as rollouts in their own countries sputter.
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And American Airlines AAL.O also said it had seen demand growing rapidly from parts of Latin America in recent months and it had increased capacity, particularly to Colombia, Ecuador and Mexico. From Mexico to far-flung Argentina, thousands of Latin Americans are booking flights to the United States to take advantage of one of the world's most successful vaccination campaigns, as rollouts in their own countries sputter. Reuters was unable to find official data on how many Latin Americans are traveling to the United States to get vaccinated.
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And American Airlines AAL.O also said it had seen demand growing rapidly from parts of Latin America in recent months and it had increased capacity, particularly to Colombia, Ecuador and Mexico. From Mexico to far-flung Argentina, thousands of Latin Americans are booking flights to the United States to take advantage of one of the world's most successful vaccination campaigns, as rollouts in their own countries sputter. She said they were the only two people getting the shots.
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4479.0
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2021-05-11 00:00:00 UTC
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Why Airline Stocks Are Under Pressure Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-under-pressure-today-2021-05-11
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nan
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nan
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What happened
Airline stocks fell faster than the broader markets on an ugly day of trading, weighed down by fears that two significant expenses for the industry could soon shoot higher. Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and Spirit Airlines (NYSE: SAVE) led the way with 5% declines, and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) were all down 4% or more.
So what
Airline stocks after a miserable 2020 have enjoyed a rebound in 2021, fueled by hope that as the pandemic fades demand for travel will return. There are some initial signs that this will be a busy summer for travel, but on Tuesday airline investors got a reminder that we are still in the early days of a recovery.
Image source: Getty Images.
Wall Street was in the red on fears that inflation might be creeping in, with a Bank of America report saying that mentions of inflation increased 800% from a year ago on quarterly earnings calls and reports.
Inflation could lead to the Federal Reserve raising rates faster than expected, which would be bad news for airline balance sheets. The U.S. industry raised more than $50 billion last year to survive the pandemic, with much of that total coming in the form of new borrowings. Higher rates could add significantly to interest expense, which could crimp a recovery, or make it harder for the airlines to continue to borrow.
Fuel could also soon be getting more expensive. A cyberattack has caused the temporary shutdown of the Colonial Pipeline, which carries about half of the fuel consumed along the U.S. East Coast.
American said Tuesday it was adding a fuel stop to flights between Charlotte and both Honolulu and London to try to make sure they have enough supply. If supply and demand are unbalanced, rising jet fuel prices, even if temporary, could cut into results this quarter.
Now what
The long-term trajectory for airlines is solid and more secure now than it has been for a long time. However, the near term contains a lot of uncertainty, even without these added concerns weighing on investors today. Meanwhile, in some cases, the stocks now trade higher than they did prior to the pandemic.
For those looking to buy in now and ride out the turbulence, Delta and Southwest look like the most attractive long-term options. But given the risks and the likely slow recovery up ahead, it is a good time to be cautious about airline stocks.
10 stocks we like better than Southwest Airlines
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and Spirit Airlines (NYSE: SAVE) led the way with 5% declines, and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) were all down 4% or more. What happened Airline stocks fell faster than the broader markets on an ugly day of trading, weighed down by fears that two significant expenses for the industry could soon shoot higher. Inflation could lead to the Federal Reserve raising rates faster than expected, which would be bad news for airline balance sheets.
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Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and Spirit Airlines (NYSE: SAVE) led the way with 5% declines, and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) were all down 4% or more. Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and Spirit Airlines (NYSE: SAVE) led the way with 5% declines, and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) were all down 4% or more. What happened Airline stocks fell faster than the broader markets on an ugly day of trading, weighed down by fears that two significant expenses for the industry could soon shoot higher. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and Spirit Airlines (NYSE: SAVE) led the way with 5% declines, and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) were all down 4% or more. Fuel could also soon be getting more expensive. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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4480.0
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2021-05-11 00:00:00 UTC
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Major airline CEOs call for summit to speed UK-US travel
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AAL
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https://www.nasdaq.com/articles/major-airline-ceos-call-for-summit-to-speed-uk-us-travel-2021-05-11
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nan
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nan
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WASHINGTON, May 11 (Reuters) - The chief executives of major U.S. and UK and passenger airlines on Tuesday called for a summit with the two governments to speed the reopening of transatlantic travel.
"The airline industry needs adequate lead time to establish a plan for restarting air services, including scheduling aircraft and crews for these routes as well as for marketing and selling tickets," said the letter signed by the CEOs of American Airlines AAL.O , Delta Air Lines DAL.N, United Airlines UAL.O, British Airways, Virgin Atlantic and JetBlue Airways JBLU.O.
(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 airline industry needs adequate lead time to establish a plan for restarting air services, including scheduling aircraft and crews for these routes as well as for marketing and selling tickets," said the letter signed by the CEOs of American Airlines AAL.O , Delta Air Lines DAL.N, United Airlines UAL.O, British Airways, Virgin Atlantic and JetBlue Airways JBLU.O. WASHINGTON, May 11 (Reuters) - The chief executives of major U.S. and UK and passenger airlines on Tuesday called for a summit with the two governments to speed the reopening of transatlantic travel. (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 airline industry needs adequate lead time to establish a plan for restarting air services, including scheduling aircraft and crews for these routes as well as for marketing and selling tickets," said the letter signed by the CEOs of American Airlines AAL.O , Delta Air Lines DAL.N, United Airlines UAL.O, British Airways, Virgin Atlantic and JetBlue Airways JBLU.O. WASHINGTON, May 11 (Reuters) - The chief executives of major U.S. and UK and passenger airlines on Tuesday called for a summit with the two governments to speed the reopening of transatlantic travel. (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 airline industry needs adequate lead time to establish a plan for restarting air services, including scheduling aircraft and crews for these routes as well as for marketing and selling tickets," said the letter signed by the CEOs of American Airlines AAL.O , Delta Air Lines DAL.N, United Airlines UAL.O, British Airways, Virgin Atlantic and JetBlue Airways JBLU.O. WASHINGTON, May 11 (Reuters) - The chief executives of major U.S. and UK and passenger airlines on Tuesday called for a summit with the two governments to speed the reopening of transatlantic travel. (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 airline industry needs adequate lead time to establish a plan for restarting air services, including scheduling aircraft and crews for these routes as well as for marketing and selling tickets," said the letter signed by the CEOs of American Airlines AAL.O , Delta Air Lines DAL.N, United Airlines UAL.O, British Airways, Virgin Atlantic and JetBlue Airways JBLU.O. WASHINGTON, May 11 (Reuters) - The chief executives of major U.S. and UK and passenger airlines on Tuesday called for a summit with the two governments to speed the reopening of transatlantic travel. (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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4481.0
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2021-05-10 00:00:00 UTC
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American Airlines adds stops to two flights after pipeline outage
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AAL
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https://www.nasdaq.com/articles/american-airlines-adds-stops-to-two-flights-after-pipeline-outage-2021-05-10
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nan
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nan
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Adds flight details
May 10 (Reuters) - American Airlines AAL.O said on Monday it has added a stop to two long-haul flights out of Charlotte, North Carolina, because of a fuel supply shortage after the shutdown of the Colonial Pipeline following a ransomware cyber attack.
American is the first U.S. airline to report an impact from the attack on Colonial, which carries nearly half the fuel consumed along the U.S. East Coast.
"We are closely monitoring the situation and working around the clock to ensure that we have an adequate supply of fuel across our network," American, the largest U.S. airline said, adding that the two impacted flights are expected to return to the original schedule on May 15.
American said its daily flight from Charlotte to Honolulu will now stop in Dallas, where passengers will change planes before flying onto Honolulu, while its daily flight from Charlotte to London will stop in Boston for additional fuel.
(Reporting by Tracy Rucinski; Editing by Christian Schmollinger and Leslie Adler)
((tracy.rucinski@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 flight details May 10 (Reuters) - American Airlines AAL.O said on Monday it has added a stop to two long-haul flights out of Charlotte, North Carolina, because of a fuel supply shortage after the shutdown of the Colonial Pipeline following a ransomware cyber attack. American is the first U.S. airline to report an impact from the attack on Colonial, which carries nearly half the fuel consumed along the U.S. East Coast. "We are closely monitoring the situation and working around the clock to ensure that we have an adequate supply of fuel across our network," American, the largest U.S. airline said, adding that the two impacted flights are expected to return to the original schedule on May 15.
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Adds flight details May 10 (Reuters) - American Airlines AAL.O said on Monday it has added a stop to two long-haul flights out of Charlotte, North Carolina, because of a fuel supply shortage after the shutdown of the Colonial Pipeline following a ransomware cyber attack. American is the first U.S. airline to report an impact from the attack on Colonial, which carries nearly half the fuel consumed along the U.S. East Coast. "We are closely monitoring the situation and working around the clock to ensure that we have an adequate supply of fuel across our network," American, the largest U.S. airline said, adding that the two impacted flights are expected to return to the original schedule on May 15.
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Adds flight details May 10 (Reuters) - American Airlines AAL.O said on Monday it has added a stop to two long-haul flights out of Charlotte, North Carolina, because of a fuel supply shortage after the shutdown of the Colonial Pipeline following a ransomware cyber attack. "We are closely monitoring the situation and working around the clock to ensure that we have an adequate supply of fuel across our network," American, the largest U.S. airline said, adding that the two impacted flights are expected to return to the original schedule on May 15. American said its daily flight from Charlotte to Honolulu will now stop in Dallas, where passengers will change planes before flying onto Honolulu, while its daily flight from Charlotte to London will stop in Boston for additional fuel.
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Adds flight details May 10 (Reuters) - American Airlines AAL.O said on Monday it has added a stop to two long-haul flights out of Charlotte, North Carolina, because of a fuel supply shortage after the shutdown of the Colonial Pipeline following a ransomware cyber attack. American is the first U.S. airline to report an impact from the attack on Colonial, which carries nearly half the fuel consumed along the U.S. East Coast. "We are closely monitoring the situation and working around the clock to ensure that we have an adequate supply of fuel across our network," American, the largest U.S. airline said, adding that the two impacted flights are expected to return to the original schedule on May 15.
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4482.0
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2021-05-10 00:00:00 UTC
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American Airlines adds fuel stops to two flights after pipeline outage
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AAL
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https://www.nasdaq.com/articles/american-airlines-adds-fuel-stops-to-two-flights-after-pipeline-outage-2021-05-10
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nan
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nan
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May 10 (Reuters) - American Airlines AAL.O said on Monday it has added a fuel stop to two daily long-haul flights out of Charlotte, North Carolina, because of a fuel supply shortage after the Colonial Pipeline shut following a ransomware cyber attack.
It is the first U.S. airline to report an impact from the attack on Colonial, which carries nearly half the fuel consumed along the U.S. East Coast.
"We are closely monitoring the situation and working around the clock to ensure that we have an adequate supply of fuel across our network," American said, adding that the two impacted flights are expected to return to the original schedule on May 15.
(Reporting by Tracy Rucinski; Editing by Christian Schmollinger)
((tracy.rucinski@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.
|
May 10 (Reuters) - American Airlines AAL.O said on Monday it has added a fuel stop to two daily long-haul flights out of Charlotte, North Carolina, because of a fuel supply shortage after the Colonial Pipeline shut following a ransomware cyber attack. It is the first U.S. airline to report an impact from the attack on Colonial, which carries nearly half the fuel consumed along the U.S. East Coast. "We are closely monitoring the situation and working around the clock to ensure that we have an adequate supply of fuel across our network," American said, adding that the two impacted flights are expected to return to the original schedule on May 15.
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May 10 (Reuters) - American Airlines AAL.O said on Monday it has added a fuel stop to two daily long-haul flights out of Charlotte, North Carolina, because of a fuel supply shortage after the Colonial Pipeline shut following a ransomware cyber attack. It is the first U.S. airline to report an impact from the attack on Colonial, which carries nearly half the fuel consumed along the U.S. East Coast. "We are closely monitoring the situation and working around the clock to ensure that we have an adequate supply of fuel across our network," American said, adding that the two impacted flights are expected to return to the original schedule on May 15.
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May 10 (Reuters) - American Airlines AAL.O said on Monday it has added a fuel stop to two daily long-haul flights out of Charlotte, North Carolina, because of a fuel supply shortage after the Colonial Pipeline shut following a ransomware cyber attack. "We are closely monitoring the situation and working around the clock to ensure that we have an adequate supply of fuel across our network," American said, adding that the two impacted flights are expected to return to the original schedule on May 15. (Reporting by Tracy Rucinski; Editing by Christian Schmollinger) ((tracy.rucinski@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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May 10 (Reuters) - American Airlines AAL.O said on Monday it has added a fuel stop to two daily long-haul flights out of Charlotte, North Carolina, because of a fuel supply shortage after the Colonial Pipeline shut following a ransomware cyber attack. It is the first U.S. airline to report an impact from the attack on Colonial, which carries nearly half the fuel consumed along the U.S. East Coast. "We are closely monitoring the situation and working around the clock to ensure that we have an adequate supply of fuel across our network," American said, adding that the two impacted flights are expected to return to the original schedule on May 15.
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4483.0
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2021-05-09 00:00:00 UTC
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American Airlines Courts Danger With Partnership Strategy
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AAL
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https://www.nasdaq.com/articles/american-airlines-courts-danger-with-partnership-strategy-2021-05-09
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nan
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nan
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Despite being the largest U.S. airline by many metrics, American Airlines (NASDAQ: AAL) had some glaring strategic weaknesses even before the COVID-19 pandemic crushed the industry last year.
First, American is undersized on the West Coast compared to top rivals Delta Air Lines (NYSE: DAL) and United Airlines (NASDAQ: UAL). Relatedly, American Airlines has a weak position on routes to Asia relative to Delta and (especially) United. Second, American Airlines has a much smaller footprint in New York City -- the largest and most important air travel market in the U.S. -- than its rivals.
Last year, American Airlines announced partnerships with Alaska Air (NYSE: ALK) and JetBlue Airways (NASDAQ: JBLU) to address its shortcomings on the West Coast and in the Northeast, respectively. Yet teaming up with JetBlue in particular could backfire in the long run. Let's take a look.
American's West Coast partnership: a win-win
Last February, American Airlines and Alaska Airlines announced that they would work together along the West Coast. American committed to launch long-haul flights from Alaska's main hub in Seattle to Bangalore, India and London. It subsequently announced that it would drop its Los Angeles-Shanghai route in favor of flying from Seattle to Shanghai. The airlines also agreed to expand their codeshare arrangement while adding reciprocal loyalty and lounge benefits.
Image source: American Airlines.
The American-Alaska partnership should be a win-win for both airlines. Alaska Airlines is strong along the West Coast -- and dominant in the Pacific Northwest -- but has a limited presence in the eastern half of the U.S. By contrast, American Airlines is the market share leader east of the Rockies but much smaller than United and Delta along the West Coast. With most of its hubs spread across the Sun Belt, it is particularly weak in the Pacific Northwest.
These complementary strengths make Alaska and American natural partners. Alaska Airlines can help American Airlines customers get better service to West Coast destinations and provide lots of connecting traffic for long-haul routes from Seattle. Conversely, American Airlines will help Alaska compete for customers in Seattle by offering access to its massive route network.
A different situation in the Northeast
American Airlines faces a different strategic conundrum in the Northeast. With hubs in New York, Philadelphia, and Washington, D.C., it already has a big footprint in the region. But in New York, specifically, United Airlines has a dominant position at Newark International Airport and Delta holds much bigger slot allocations than American at LaGuardia Airport and JFK International Airport. That has left American Airlines in third place in this crucial market, hurting its ability to win corporate contracts.
Last July, American Airlines and JetBlue announced a strategic partnership designed to address those weaknesses. JetBlue carried 36% of domestic traffic at JFK in 2019, making it an ideal partner to supply connecting traffic for existing and new American Airlines long-haul routes.
Image source: JetBlue Airways.
American Airlines and JetBlue are building out a set of complementary flight offerings in New York (and in Boston) that will help them jointly compete for corporate contracts there. In conjunction with this strategy, JetBlue will add flights in New York using underutilized American Airlines slots.
Supporting a future competitor?
On the surface, American Airlines' Northeast partnership with JetBlue may look similar to its West Coast partnership with Alaska. In each case, a smaller rival is providing connecting traffic for long-haul flights and supplementing American's flight offerings to make them more competitive with those of Delta and United.
But there's one big difference. Whereas Alaska has no interest in expanding into Europe or Asia, JetBlue is months away from launching its first flights to London. By 2025, it could have about two dozen Airbus A321LRs and A321XLRs plying routes from New York and Boston to Europe. JetBlue eventually might use these long-range models to fly deeper into South America, too.
In short, JetBlue is poised to invade many of American Airlines' most important markets over the next decade -- with lower costs (and therefore lower prices). Meanwhile, the airlines' partnership effectively encourages American Airlines customers to try flying JetBlue. If they enjoy the JetBlue experience, those customers might fly American less frequently as JetBlue expands its route network in the coming years.
Despite the long-term risks of the JetBlue partnership, American Airlines may not have had a better alternative. Its weaknesses vis-a-vis Delta and United represent far more pressing concerns than the threat of losing customers to JetBlue years down the road. Nevertheless, investors should recognize that any near-term gains for American Airlines from the JetBlue partnership could come at a long-term cost.
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Adam Levine-Weinberg owns shares of Alaska Air Group, Delta Air Lines, and JetBlue Airways and is long January 2022 $10 calls on JetBlue Airways and short January 2022 $80 calls on Alaska Air Group. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite being the largest U.S. airline by many metrics, American Airlines (NASDAQ: AAL) had some glaring strategic weaknesses even before the COVID-19 pandemic crushed the industry last year. First, American is undersized on the West Coast compared to top rivals Delta Air Lines (NYSE: DAL) and United Airlines (NASDAQ: UAL). Last year, American Airlines announced partnerships with Alaska Air (NYSE: ALK) and JetBlue Airways (NASDAQ: JBLU) to address its shortcomings on the West Coast and in the Northeast, respectively.
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Despite being the largest U.S. airline by many metrics, American Airlines (NASDAQ: AAL) had some glaring strategic weaknesses even before the COVID-19 pandemic crushed the industry last year. Last year, American Airlines announced partnerships with Alaska Air (NYSE: ALK) and JetBlue Airways (NASDAQ: JBLU) to address its shortcomings on the West Coast and in the Northeast, respectively. American's West Coast partnership: a win-win Last February, American Airlines and Alaska Airlines announced that they would work together along the West Coast.
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Despite being the largest U.S. airline by many metrics, American Airlines (NASDAQ: AAL) had some glaring strategic weaknesses even before the COVID-19 pandemic crushed the industry last year. Last year, American Airlines announced partnerships with Alaska Air (NYSE: ALK) and JetBlue Airways (NASDAQ: JBLU) to address its shortcomings on the West Coast and in the Northeast, respectively. American's West Coast partnership: a win-win Last February, American Airlines and Alaska Airlines announced that they would work together along the West Coast.
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Despite being the largest U.S. airline by many metrics, American Airlines (NASDAQ: AAL) had some glaring strategic weaknesses even before the COVID-19 pandemic crushed the industry last year. American Airlines and JetBlue are building out a set of complementary flight offerings in New York (and in Boston) that will help them jointly compete for corporate contracts there. Meanwhile, the airlines' partnership effectively encourages American Airlines customers to try flying JetBlue.
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4484.0
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2021-05-07 00:00:00 UTC
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United to scale back India flying, delay Bangalore launch as pandemic rages
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https://www.nasdaq.com/articles/united-to-scale-back-india-flying-delay-bangalore-launch-as-pandemic-rages-2021-05-07
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By Tracy Rucinski
CHICAGO, May 7 (Reuters) - United Airlines said on Friday it is temporarily pausing service between Chicago and New Delhi in June and delaying the planned launch of flights between San Francisco and Bangalore as a catastrophic explosion of COVID-19 cases hits demand.
India reported another record daily rise in coronavirus infections on Friday, bringing total new cases for the week to 1.57 million, as its vaccination rate falls dramatically due to a lack of supplies and transport problems.
Until the Chicago-Delhi route is halted on May 31, United said will use its larger Boeing 777-300ER jets on seven roundtrip flights to accelerate the repatriation of citizens between the two countries and the delivery of vital medical supplies. It was previously using the Boeing 787-9.
United, the only U.S. carrier flying to India, said it will continue its daily flights to Delhi from Newark and San Francisco and to Mumbai from Newark.
However, it will "continue to monitor customer demand to determine if any additional changes to its schedule are necessary," it said.
As of now it expects to resume the Chicago-Delhi flights, which it launched in December, in July and kick off its San Francisco-Bangalore service on August 1 versus previous plans for a May 27 launch.
Rival American Airlines plans to launch flights from Seattle to Bangalore, known as the Silicon Valley of India, later this year. (Reporting by Tracy Rucinski Editing by Chizu Nomiyama) ((tracy.rucinski@thomsonreuters.com;)) Keywords: HEALTH CORONAVIRUS/UNITED ARLNS INDIA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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India reported another record daily rise in coronavirus infections on Friday, bringing total new cases for the week to 1.57 million, as its vaccination rate falls dramatically due to a lack of supplies and transport problems. Until the Chicago-Delhi route is halted on May 31, United said will use its larger Boeing 777-300ER jets on seven roundtrip flights to accelerate the repatriation of citizens between the two countries and the delivery of vital medical supplies. Rival American Airlines plans to launch flights from Seattle to Bangalore, known as the Silicon Valley of India, later this year.
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By Tracy Rucinski CHICAGO, May 7 (Reuters) - United Airlines said on Friday it is temporarily pausing service between Chicago and New Delhi in June and delaying the planned launch of flights between San Francisco and Bangalore as a catastrophic explosion of COVID-19 cases hits demand. United, the only U.S. carrier flying to India, said it will continue its daily flights to Delhi from Newark and San Francisco and to Mumbai from Newark. Rival American Airlines plans to launch flights from Seattle to Bangalore, known as the Silicon Valley of India, later this year.
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By Tracy Rucinski CHICAGO, May 7 (Reuters) - United Airlines said on Friday it is temporarily pausing service between Chicago and New Delhi in June and delaying the planned launch of flights between San Francisco and Bangalore as a catastrophic explosion of COVID-19 cases hits demand. United, the only U.S. carrier flying to India, said it will continue its daily flights to Delhi from Newark and San Francisco and to Mumbai from Newark. As of now it expects to resume the Chicago-Delhi flights, which it launched in December, in July and kick off its San Francisco-Bangalore service on August 1 versus previous plans for a May 27 launch.
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By Tracy Rucinski CHICAGO, May 7 (Reuters) - United Airlines said on Friday it is temporarily pausing service between Chicago and New Delhi in June and delaying the planned launch of flights between San Francisco and Bangalore as a catastrophic explosion of COVID-19 cases hits demand. India reported another record daily rise in coronavirus infections on Friday, bringing total new cases for the week to 1.57 million, as its vaccination rate falls dramatically due to a lack of supplies and transport problems. It was previously using the Boeing 787-9.
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2021-05-07 00:00:00 UTC
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7 Hot Stocks to Buy Now for Less Than $50
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https://www.nasdaq.com/articles/7-hot-stocks-to-buy-now-for-less-than-%2450-2021-05-07
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s not all doom and gloom in the stock market these days.
Several stocks have outperformed their respective sectors and the major stock indexes year-to-date. These winners tend to be stocks of companies that stand to benefit from the reopening of the U.S. and global economies following the Covid-19 pandemic.
While investors have to ferret out these successful stocks, they are out there and are delivering big returns to shareholders. And despite their impressive gains, many of these red hot stocks continue to trade for less than $50 a share, making them affordable to retail investors.
7 Cryptocurrencies Under $2 That Could Be The Next Bitcoin
Here are 7 hot stocks to buy now for under $50.
The Gap (NYSE:GPS)
Wells Fargo (NYSE:WFC)
New York Times (NYSE:NYT)
American Airlines (NASDAQ:AAL)
Molson Coors (NYSE:TAP)
MGM Resorts (NYSE:MGM)
Ford Motor (NYSE:F)
Let’s take a closer look.
Hot Stocks to Buy Now for Less Than $50: The Gap (GPS)
Source: Shutterstock
When it comes to hot stocks, few have been as hot as clothing retailer The Gap. The San Francisco-headquartered chain known for selling khakis and chinos has seen its stock nearly double year-to-date.
GPS stock is up 84% since the first trading day of 2021 and currently sits at $35.36. The Gap’s stock price has outperformed most other retailers and the major stock indexes by a wide margin and continues to trend higher as investors play the economic reopening trade.
GPS stock jumped 7% at the start of May amid signs that the entire retail sector was gathering strength. The company has also been getting a boost from the growth and expansion of its Athleta brand, which aims to take market share from Lululemon Athletica (NASDAQ:LULU). Gap recently announced that it is opening Athleta retail stores in Canada, its first foray outside the U.S., and has stated that its goal is to reach $2 billion in net sales annually from Athleta by 2023.
The company is scheduled to report first-quarter earnings on May 27. Better-than-expected results could send GPS stock even higher.
Wells Fargo (WFC)
WFC) sign hangs on a brick building in Bloomfield, Connecticut." width="300" height="169">
Source: Martina Badini / Shutterstock.com
Bank stocks have also been outperforming this year as the economy reopens and the prospect of higher interest rates loom on the horizon. And among bank stocks, Wells Fargo has been the clear standout, up 57% year-to-date at $46.53 a share. The turnaround in Wells Fargo is particularly sweet for shareholders given that the lender had been grappling with a major crisis even before the global pandemic caused an economic downturn last year.
In February 2020, just before Covid-19 upended the world economy, Wells Fargo was dealing with a fake account scandal that cost the bank $3 billion in legal settlements. This came after the bank was caught using widespread fraud to meet its sales goals. Their lenders opened millions of accounts in customers’ names without their knowledge, signed account holders up for credit cards, created fake identification numbers, forged signatures and even transferred customers’ money without their knowledge. As scandals go, it was a doozy.
7 Cryptocurrencies Under $2 That Could Be The Next Bitcoin
But now, with the scandal and settlement behind it, Wells Fargo is once again in the good graces of investors and its share price is marching higher.
New York Times (NYT)
NYT) at night." width="300" height="169">
Source: Osugi / Shutterstock.com
People who say traditional media is dead forgot to tell The New York Times Company. The publisher of the “paper of record” has been bucking the downturn in print media that has been accelerating over the past decade.
NYT has done so through a successful online subscription model and by diversifying into podcasts, video and other technologies that complement the reporting and writing that appear in its trademark newspaper and on its website.
When reporting its recent first-quarter earnings, The New York Times announced that it now has 100 million registered users and 7.8 million paid subscribers across digital and print products. The company has a goal of reaching 10 million paid subscribers by 2025.
Subscriptions have now replaced advertising as the main driver of the Times’ revenue growth, according to the company. Subscription revenue increased by 15.3% to $329.1 million in the first quarter of this year.
NYT stock has fallen 24% to $44.94 a share after reaching a 52-week high of $58.73 at the end of January. Investors should buy the dip before the stock rebounds higher.
American Airlines (AAL)
AAL) airplane waiting on the tarmac. Represents airline stocks." width="300" height="169">
Source: GagliardiPhotography / Shutterstock.com
American Airlines reached a tipping point in its recovery from the global pandemic recently when it announced that it plans to resume hiring pilots for its commercial aircraft. The company announced that it will hire 300 pilots by the end of this year and double that to 600 new pilots in 2022.
The Fort Worth, Texas-based airline, which is the largest carrier in the world, employs about 15,000 pilots total. The reason for its new hiring spree is a recovery in travel demand that is growing in the U.S. and in many key foreign markets such as China and the United Kingdom.
American Airlines also recently announced that it plans to fly more than 90% of its 2019 domestic U.S. schedule this summer as more Americans get vaccinated against Covid-19 and the economy nears a full reopening.
That’s music to the ears of investors, who have been pushing the airline sector higher this year in anticipation of a return to pre-pandemic operations. AAL stock had jumped as much as 72% earlier this year, touching a high of $26.09 a share.
7 Cryptocurrencies Under $2 That Could Be The Next Bitcoin
The stock has since come down to right around $22 per share. Investors should get in now before the next leg up.
Molson Coors (TAP)
TAP) logo on a web browser magnified by a magnifying glass" width="300" height="169">
Source: OleksandrShnuryk / Shutterstock.com
Alcoholic beverage maker Molson Coors is one of the best reopening stocks any investor can have in their portfolio. TAP stock has been running hot this year as people anticipate demand for beer and other alcohol to spike as restaurants, sports stadiums and music concerts reopen. Since mid-February, Molson Coors stock has climbed 34% higher and now sits at $59.51 a share. While that’s higher than $50 per share, it’s only a little higher, and the stock has only been above the $50 threshold since April 9 with more gains likely in store.
The company, which owns popular beer brands such as Miller, Coors and Molson Canadian to name just a few, is already seeing its financial health improve as we come out of the pandemic. For this year’s first-quarter, Molson Coors reported earnings of $0.01 per share, a decline of 34 cents from a year earlier but much better than the loss of 12 cents a share that analysts expected in this year’s first quarter. The better than anticipated results have helped to keep TAP stock trending upwards, with a promise of brighter days ahead.
MGM Resorts (MGM)
Source: Michael Neil Thomas / Shutterstock.com
Vegas, baby! Gambling is a popular pastime and casinos are popular travel destinations, and both should pick-up in coming months. This explains why shares of MGM Resorts are up 43% year-to-date but remain affordable at right around $40 per share. MGM, which operates casinos and entertainment properties in Las Vegas, Massachusetts, Detroit, Mississippi, Maryland and New Jersey, including marquee name such as the Bellagio, Mandalay Bay and MGM Grand, is poised to do brisk business once vacation and recreation travel gain traction in this year’s second half.
In addition to its physical casinos, which remain incredibly popular, MGM Resorts used the pandemic to beef-up its sports betting and online gaming business to the point where it is now viewed as a legitimate rival to sport betting sites such as Draftkings (NASDAQ:DKNG) and FanDuel.
7 Cryptocurrencies Under $2 That Could Be The Next Bitcoin
Going forward, the twin focuses of its casino business and sports betting operations should help to buoy MGM Resorts business and stock.
Ford Motor (F)
Source: Vitaliy Karimov / Shutterstock.com
Don’t give up on Ford. Not when its stock has finally experienced a breakout after flirting with penny stock territory for the better part of the past year.
Year-to-date, Ford stock is up 39% to $11.82 a share. And that’s after a recent pullback when the company announced that the global semiconductor shortage would continue impacting production of popular vehicles such as the Bronco SUV and Ranger pick-up truck.
However, the legendary Detroit automaker won’t let the global chip shortage stop its future plans. The company is proceeding to invest $185 million into a new battery lab as it moves to manufacture its own battery cells for future electric vehicles. The company also plans to build Ford Ion Park, a 200,000-square-foot production facility expected to open in Detroit by the end of 2022. Like other major automakers, Ford is all in on electric vehicles and the ascent of its share price this year reflects the company’s focus on an all electric future.
On the date of publication, Joel Baglole held a long position in DKNG.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
The post 7 Hot Stocks to Buy Now for Less Than $50 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 Gap (NYSE:GPS) Wells Fargo (NYSE:WFC) New York Times (NYSE:NYT) American Airlines (NASDAQ:AAL) Molson Coors (NYSE:TAP) MGM Resorts (NYSE:MGM) Ford Motor (NYSE:F) Let’s take a closer look. American Airlines (AAL) AAL) airplane waiting on the tarmac. AAL stock had jumped as much as 72% earlier this year, touching a high of $26.09 a share.
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The Gap (NYSE:GPS) Wells Fargo (NYSE:WFC) New York Times (NYSE:NYT) American Airlines (NASDAQ:AAL) Molson Coors (NYSE:TAP) MGM Resorts (NYSE:MGM) Ford Motor (NYSE:F) Let’s take a closer look. American Airlines (AAL) AAL) airplane waiting on the tarmac. AAL stock had jumped as much as 72% earlier this year, touching a high of $26.09 a share.
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The Gap (NYSE:GPS) Wells Fargo (NYSE:WFC) New York Times (NYSE:NYT) American Airlines (NASDAQ:AAL) Molson Coors (NYSE:TAP) MGM Resorts (NYSE:MGM) Ford Motor (NYSE:F) Let’s take a closer look. American Airlines (AAL) AAL) airplane waiting on the tarmac. AAL stock had jumped as much as 72% earlier this year, touching a high of $26.09 a share.
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The Gap (NYSE:GPS) Wells Fargo (NYSE:WFC) New York Times (NYSE:NYT) American Airlines (NASDAQ:AAL) Molson Coors (NYSE:TAP) MGM Resorts (NYSE:MGM) Ford Motor (NYSE:F) Let’s take a closer look. American Airlines (AAL) AAL) airplane waiting on the tarmac. AAL stock had jumped as much as 72% earlier this year, touching a high of $26.09 a share.
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4486.0
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2021-05-07 00:00:00 UTC
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Texas House backs Republican-backed voting curbs
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https://www.nasdaq.com/articles/texas-house-backs-republican-backed-voting-curbs-2021-05-07
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By Joseph Ax and Steve Gorman
May 6 (Reuters) - The Texas House of Representatives on Friday backed a bill to bar election officials from sending voters unsolicited mail-in ballot applications, while giving party-affiliated poll watchers greater access to voting sites.
The overnight vote in the Republican-controlled legislature followed enactment of similar measures in Georgia and Florida in the wake of Democrat Joe Biden's presidential election win.
Sponsors of the bills assert they are intended to prevent voter fraud while bolstering election integrity and public confidence in balloting.
Democrats and civil liberties advocates counter that there is no evidence of widespread ballot tampering, and argue that such legislation disproportionately burdens or discourages voters of color, as well as the elderly and disabled.
On Tuesday, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots.
Friday's Texas vote ran along party lines, with the bill, which still requires final approval in both the House and Senate after a third reading, passing by 81 to 64.
The Senate, also Republican-controlled, has already passed related legislation that imposes limits on the early casting of election ballots, and abolishes drive-through voting and round-the-clock voting, among other provisions.
Republican Governor Greg Abbott has expressed support for the measures.
"This bill is about protecting voters, making sure the voter rules are clean," Republican Representative Briscoe Cain said during the House floor debate.
"I'm not sure what kind of problem we're trying to solve today," Democratic Representative Jessica Gonzalez said.
Critics also say that granting partisan poll-watchers greater access to election sites is meant to intimidate Blacks and Hispanics, who tend to vote more heavily in favor of Democratic candidates than Republicans.
Voting by mail, and early voting in general, surged during the 2020 election as voters sought to avoid ballot-box queues in the midst of the coronavirus pandemic.
Republican legislators in numerous states have since pushed new voting limits in the wake of former President Donald Trump's false claims that his loss to Biden last November was the result of massive voter fraud.
On Thursday, Florida's Republican governor, Ron DeSantis, signed a new law making it more difficult for voters to cast ballots by mail or to use ballot drop boxes.
In March, Georgia adopted a Republican-backed law that included sweeping new restrictions, sparking backlash from major U.S. corporations and prompting Major League Baseball to move its All-Star Game from Atlanta in protest.
More than three months after Biden was sworn in, Trump has continued to assert that the election was stolen. Courts have rejected those claims in more than 60 lawsuits challenging the results.
(Reporting by Joseph Ax in New York and Steve Gorman in Los Angeles; Additional reporting by Brad Brooks in Lubbock, Texas, and Bhargav Acharya; Editing by Gerry Doyle and John Stonestreet)
((joseph.ax@thomsonreuters.com; 1-646-223-6594 1-917-848-0813; Reuters Messaging: joseph.ax.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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On Tuesday, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. By Joseph Ax and Steve Gorman May 6 (Reuters) - The Texas House of Representatives on Friday backed a bill to bar election officials from sending voters unsolicited mail-in ballot applications, while giving party-affiliated poll watchers greater access to voting sites. Critics also say that granting partisan poll-watchers greater access to election sites is meant to intimidate Blacks and Hispanics, who tend to vote more heavily in favor of Democratic candidates than Republicans.
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On Tuesday, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. By Joseph Ax and Steve Gorman May 6 (Reuters) - The Texas House of Representatives on Friday backed a bill to bar election officials from sending voters unsolicited mail-in ballot applications, while giving party-affiliated poll watchers greater access to voting sites. The Senate, also Republican-controlled, has already passed related legislation that imposes limits on the early casting of election ballots, and abolishes drive-through voting and round-the-clock voting, among other provisions.
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On Tuesday, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. By Joseph Ax and Steve Gorman May 6 (Reuters) - The Texas House of Representatives on Friday backed a bill to bar election officials from sending voters unsolicited mail-in ballot applications, while giving party-affiliated poll watchers greater access to voting sites. The Senate, also Republican-controlled, has already passed related legislation that imposes limits on the early casting of election ballots, and abolishes drive-through voting and round-the-clock voting, among other provisions.
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On Tuesday, dozens of companies - including American Airlines Group Inc AAL.O, Hewlett Packard Enterprise Co HPE.N and Microsoft Corp MSFT.O - urged legislators to reject any law restricting access to ballots. By Joseph Ax and Steve Gorman May 6 (Reuters) - The Texas House of Representatives on Friday backed a bill to bar election officials from sending voters unsolicited mail-in ballot applications, while giving party-affiliated poll watchers greater access to voting sites. The Senate, also Republican-controlled, has already passed related legislation that imposes limits on the early casting of election ballots, and abolishes drive-through voting and round-the-clock voting, among other provisions.
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2021-05-06 00:00:00 UTC
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Pre-Market Most Active for May 6, 2021 : VIAC, RKT, SQQQ, PFE, SOS, MRNA, EDU, QQQ, AAL, TSLA, NIO, AMC
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https://www.nasdaq.com/articles/pre-market-most-active-for-may-6-2021-%3A-viac-rkt-sqqq-pfe-sos-mrna-edu-qqq-aal-tsla-nio
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The NASDAQ 100 Pre-Market Indicator is down -6.66 to 13,496.71. The total Pre-Market volume is currently 24,247,216 shares traded.
The following are the most active stocks for the pre-market session:
ViacomCBS Inc. (VIAC) is +0.82 at $39.92, with 1,503,874 shares traded. Business Wire Reports: BET to Air “COVID-19 Vaccine and the Black Community A Tyler Perry Special” Premiering Thursday, January 28 at 9 PM ET/PT on BET and BET Her
Rocket Companies, Inc. (RKT) is -2.86 at $19.94, with 1,173,031 shares traded. RKT's current last sale is 81.39% of the target price of $24.5.
ProShares UltraPro Short QQQ (SQQQ) is +0.03 at $11.81, with 1,043,855 shares traded. This represents a 13.12% increase from its 52 Week Low.
Pfizer, Inc. (PFE) is -1.04 at $38.54, with 1,013,557 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021. The consensus EPS forecast is $0.9. PFE's current last sale is 95.16% of the target price of $40.5.
SOS Limited (SOS) is +0.21 at $4.48, with 879,991 shares traded.
Moderna, Inc. (MRNA) is -14.95 at $147.89, with 770,968 shares traded. Business Wire Reports: Moderna Confirms Discussions with U.S. Government for Additional 100 Million Doses of the Moderna COVID-19 Vaccine
New Oriental Education & Technology Group, Inc. (EDU) is -0.1884 at $14.31, with 604,892 shares traded. As reported by Zacks, the current mean recommendation for EDU is in the "strong buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.19 at $328.84, with 594,066 shares traded. This represents a 52.25% increase from its 52 Week Low.
American Airlines Group, Inc. (AAL) is -0.16 at $21.41, with 543,493 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021. The consensus EPS forecast is $-2.38. AAL's current last sale is 152.93% of the target price of $14.
Tesla, Inc. (TSLA) is +6.9671 at $677.91, with 526,331 shares traded. TSLA's current last sale is 95.14% of the target price of $712.5.
NIO Inc. (NIO) is -0.22 at $37.49, with 467,819 shares traded. NIO's current last sale is 62.48% of the target price of $60.
AMC Entertainment Holdings, Inc. (AMC) is +0.26 at $9.43, with 413,453 shares traded. Business Wire Reports: AMC Completes At the Market Equity Program
The views and 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 -0.16 at $21.41, with 543,493 shares traded. AAL's current last sale is 152.93% of the target price of $14. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021.
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American Airlines Group, Inc. (AAL) is -0.16 at $21.41, with 543,493 shares traded. AAL's current last sale is 152.93% of the target price of $14. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021.
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American Airlines Group, Inc. (AAL) is -0.16 at $21.41, with 543,493 shares traded. AAL's current last sale is 152.93% of the target price of $14. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021.
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American Airlines Group, Inc. (AAL) is -0.16 at $21.41, with 543,493 shares traded. AAL's current last sale is 152.93% of the target price of $14. RKT's current last sale is 81.39% of the target price of $24.5.
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2021-05-06 00:00:00 UTC
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Anglo American investors approve spin-off of S. African thermal coal
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https://www.nasdaq.com/articles/anglo-american-investors-approve-spin-off-of-s.-african-thermal-coal-2021-05-06
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JOHANNESBURG, May 6 (Reuters) - Anglo American plc AAL.L said on Thursday shareholders had approved the spin-off of its South African thermal coal business into a new company, paving the way for its listing in Johannesburg and London next month.
If the transaction meets all other approvals, Thungela Resources Limited is expected to be listed on the Johannesburg Stock Exchange and on the London Stock Exchange on June, 7.
Anglo is shifting away from assets that mine the most polluting fossil fuels and is also looking to exit from its Colombian thermal coal mine.
(Reporting by Tanisha Heiberg; editing by Carmel Crimmins)
((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.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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JOHANNESBURG, May 6 (Reuters) - Anglo American plc AAL.L said on Thursday shareholders had approved the spin-off of its South African thermal coal business into a new company, paving the way for its listing in Johannesburg and London next month. If the transaction meets all other approvals, Thungela Resources Limited is expected to be listed on the Johannesburg Stock Exchange and on the London Stock Exchange on June, 7. (Reporting by Tanisha Heiberg; editing by Carmel Crimmins) ((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.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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JOHANNESBURG, May 6 (Reuters) - Anglo American plc AAL.L said on Thursday shareholders had approved the spin-off of its South African thermal coal business into a new company, paving the way for its listing in Johannesburg and London next month. If the transaction meets all other approvals, Thungela Resources Limited is expected to be listed on the Johannesburg Stock Exchange and on the London Stock Exchange on June, 7. Anglo is shifting away from assets that mine the most polluting fossil fuels and is also looking to exit from its Colombian thermal coal mine.
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JOHANNESBURG, May 6 (Reuters) - Anglo American plc AAL.L said on Thursday shareholders had approved the spin-off of its South African thermal coal business into a new company, paving the way for its listing in Johannesburg and London next month. If the transaction meets all other approvals, Thungela Resources Limited is expected to be listed on the Johannesburg Stock Exchange and on the London Stock Exchange on June, 7. (Reporting by Tanisha Heiberg; editing by Carmel Crimmins) ((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.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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JOHANNESBURG, May 6 (Reuters) - Anglo American plc AAL.L said on Thursday shareholders had approved the spin-off of its South African thermal coal business into a new company, paving the way for its listing in Johannesburg and London next month. If the transaction meets all other approvals, Thungela Resources Limited is expected to be listed on the Johannesburg Stock Exchange and on the London Stock Exchange on June, 7. Anglo is shifting away from assets that mine the most polluting fossil fuels and is also looking to exit from its Colombian thermal coal mine.
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4489.0
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2021-05-05 00:00:00 UTC
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European stocks bounce as earnings, data spur recovery hopes
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https://www.nasdaq.com/articles/european-stocks-bounce-as-earnings-data-spur-recovery-hopes-2021-05-05
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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
Copper rally lifts miners
STOXX 600 earnings to jump 83.1% in Q1
EZ service sector activity expands in April-PMI
Adds comment, updates prices
May 5 (Reuters) - European stocks bounced back on Wednesday after a sharp selloff in the previous session, helped by gains in commodity and banking stocks, while optimism about a strong earnings season and a speedy economic recovery dominated the markets.
The pan-European STOXX 600 index .STOXX rose 1.3%, wiping out almost all of its 1.4% loss on Tuesday, with the German DAX .GDAXI jumping 1.3% and UK's FTSE 100 .FTSE gaining 1.1%.
Big UK miners, including Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L, rose about 3% each as copper prices rose past a key psychological level of $10,000 a tonne, buoyed by optimism about a speedy recovery in the global economy. MET/L
Euro zone business activity accelerated in April as the bloc's dominant services industry shrugged off renewed lockdowns and returned to growth, a survey showed.
European tech stocks .SX8P rose 1.8% after a 3.7% plunge in the previous session.
Wall Street's tech-heavy Nasdaq tumbled on Tuesday as investors pulled out of fast-growing companies such as Apple AAPL.O and Amazon AMZN.O amid concerns over rising interest rate and uncertainty over an upcoming jobs report. .N
"Yesterday's sell-off in equities is a reminder that valuations in markets are tight," Unicredit analysts said in a note. They, however, pointed out that earnings season continued to be supportive of risk appetite.
German logistics company Deutsche Post DPWGn.DE rose 2.6% on raising its operating profit forecast for 2021, while Danish shipping company Maersk MAERSKb.CO was up 3.4% after it said it was expecting an "exceptionally strong" performance in the first quarter to continue for the rest of the year.
European earnings are now expected to surge 83.1% in the first quarter, according to Refinitiv IBES data, up from last week's forecast of 71.3% growth.
Stellantis STLA.MI rallied 2.7% after the carmaker reported better-than-expected quarterly revenue but warned that a global shortage of semiconductors would affect production this quarter more heavily.
Auto stocks .SXAP lagged their cyclical counterparts, rising only 0.3%, as Daimler DAIGn.DE slipped after Japan's Nissan Motor 7201.T said it was selling its roughly 1.5% stake in the German carmaker.
German fashion house Hugo Boss BOSSn.DE rose 4.2% as it saw first-quarter sales almost double in mainland China, and its casual business returned to growth.
Delivery Hero DHER.DE fell 3.8% as former owners of Woowa Brothers sold shares worth about 1.25 billion euros ($1.5 billion) in the online takeaway food company.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big UK miners, including Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L, rose about 3% each as copper prices rose past a key psychological level of $10,000 a tonne, buoyed by optimism about a speedy recovery in the global economy. MET/L Euro zone business activity accelerated in April as the bloc's dominant services industry shrugged off renewed lockdowns and returned to growth, a survey showed. Wall Street's tech-heavy Nasdaq tumbled on Tuesday as investors pulled out of fast-growing companies such as Apple AAPL.O and Amazon AMZN.O amid concerns over rising interest rate and uncertainty over an upcoming jobs report.
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Big UK miners, including Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L, rose about 3% each as copper prices rose past a key psychological level of $10,000 a tonne, buoyed by optimism about a speedy recovery in the global economy. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Copper rally lifts miners STOXX 600 earnings to jump 83.1% in Q1 EZ service sector activity expands in April-PMI Adds comment, updates prices May 5 (Reuters) - European stocks bounced back on Wednesday after a sharp selloff in the previous session, helped by gains in commodity and banking stocks, while optimism about a strong earnings season and a speedy economic recovery dominated the markets. They, however, pointed out that earnings season continued to be supportive of risk appetite.
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Big UK miners, including Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L, rose about 3% each as copper prices rose past a key psychological level of $10,000 a tonne, buoyed by optimism about a speedy recovery in the global economy. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Copper rally lifts miners STOXX 600 earnings to jump 83.1% in Q1 EZ service sector activity expands in April-PMI Adds comment, updates prices May 5 (Reuters) - European stocks bounced back on Wednesday after a sharp selloff in the previous session, helped by gains in commodity and banking stocks, while optimism about a strong earnings season and a speedy economic recovery dominated the markets. German logistics company Deutsche Post DPWGn.DE rose 2.6% on raising its operating profit forecast for 2021, while Danish shipping company Maersk MAERSKb.CO was up 3.4% after it said it was expecting an "exceptionally strong" performance in the first quarter to continue for the rest of the year.
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Big UK miners, including Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L, rose about 3% each as copper prices rose past a key psychological level of $10,000 a tonne, buoyed by optimism about a speedy recovery in the global economy. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Copper rally lifts miners STOXX 600 earnings to jump 83.1% in Q1 EZ service sector activity expands in April-PMI Adds comment, updates prices May 5 (Reuters) - European stocks bounced back on Wednesday after a sharp selloff in the previous session, helped by gains in commodity and banking stocks, while optimism about a strong earnings season and a speedy economic recovery dominated the markets. MET/L Euro zone business activity accelerated in April as the bloc's dominant services industry shrugged off renewed lockdowns and returned to growth, a survey showed.
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4490.0
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2021-05-05 00:00:00 UTC
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European stocks rebound after selloff, miners jump
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https://www.nasdaq.com/articles/european-stocks-rebound-after-selloff-miners-jump-2021-05-05
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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
May 5 (Reuters) - European stocks bounced back on Wednesday after a sharp selloff in the previous session, as surging commodity prices lifted mining stocks, while the earnings season kept its positive momentum, brightening the mood in the markets.
The pan-European STOXX 600 index .STOXX rose 0.8% in early trading, with the German DAX .GDAXI jumping 0.9% and UK's FTSE 100 .FTSE gaining 0.6%.
Shares in big UK miners including Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L rose about 2% each as copper prices rose past a key psychological level of $10,000 a tonne, buoyed by optimism about a speedy recovery in the global economy. MET/L
Tech stocks .SX8P rose 1.4% after a 3.7% plunge in the previous session.
Stellantis STLA.MI edged up 0.8% after the carmaker reported a better-than-expected quarterly revenue but warned that a global shortage of semiconductors would affect production this quarter more heavily.
German fashion house Hugo Boss BOSSn.DE rose 2.9% as it saw first-quarter sales almost double in mainland China, and its casual business returned to growth.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares in big UK miners including Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L rose about 2% each as copper prices rose past a key psychological level of $10,000 a tonne, buoyed by optimism about a speedy recovery in the global economy. The pan-European STOXX 600 index .STOXX rose 0.8% in early trading, with the German DAX .GDAXI jumping 0.9% and UK's FTSE 100 .FTSE gaining 0.6%. German fashion house Hugo Boss BOSSn.DE rose 2.9% as it saw first-quarter sales almost double in mainland China, and its casual business returned to growth.
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Shares in big UK miners including Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L rose about 2% each as copper prices rose past a key psychological level of $10,000 a tonne, buoyed by optimism about a speedy recovery in the global economy. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window May 5 (Reuters) - European stocks bounced back on Wednesday after a sharp selloff in the previous session, as surging commodity prices lifted mining stocks, while the earnings season kept its positive momentum, brightening the mood in the markets. MET/L Tech stocks .SX8P rose 1.4% after a 3.7% plunge in the previous session.
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Shares in big UK miners including Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L rose about 2% each as copper prices rose past a key psychological level of $10,000 a tonne, buoyed by optimism about a speedy recovery in the global economy. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window May 5 (Reuters) - European stocks bounced back on Wednesday after a sharp selloff in the previous session, as surging commodity prices lifted mining stocks, while the earnings season kept its positive momentum, brightening the mood in the markets. (Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares in big UK miners including Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L rose about 2% each as copper prices rose past a key psychological level of $10,000 a tonne, buoyed by optimism about a speedy recovery in the global economy. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window May 5 (Reuters) - European stocks bounced back on Wednesday after a sharp selloff in the previous session, as surging commodity prices lifted mining stocks, while the earnings season kept its positive momentum, brightening the mood in the markets. The pan-European STOXX 600 index .STOXX rose 0.8% in early trading, with the German DAX .GDAXI jumping 0.9% and UK's FTSE 100 .FTSE gaining 0.6%.
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4491.0
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2021-05-04 00:00:00 UTC
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Business coalitions urge Texas lawmakers to reject voting restrictions
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https://www.nasdaq.com/articles/business-coalitions-urge-texas-lawmakers-to-reject-voting-restrictions-2021-05-04
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By Jessica DiNapoli
May 4 (Reuters) - Two coalitions of business leaders on Tuesday urged Texas state lawmakers to reject any laws that would limit voters' access to ballots, adding corporate America's voice to a statewide debate over proposed voting restrictions.
American Airlines Group Inc AAL.O, based in Forth Worth, Texas, Hewlett Packard Enterprise Co HPE.N, Microsoft Corp MSFT.O, Salesforce.com Inc CRM.N and Unilever Plc ULVR.L are among more than 50 companies, chambers of commerce and business leaders in one of the coalitions, Fair Elections Texas.
"When more people participate in our democratic process, we will all prosper," the group wrote in a letter released on Tuesday.
State legislators are considering two Republican-backed bills, one from the House and one from the Senate, that would limit early voting, change polling locations, restrict how voters can apply for mail-in ballots and give partisan poll watchers more power.
The House will bring its proposal to the floor on Thursday for a possible vote, according to a legislative schedule posted online on Tuesday. If the legislation is approved, a committee of lawmakers from the House and Senate would then work to reconcile differences between the bills.
Republicans have also introduced or passed voting limits in Georgia, Arizona and Florida, citing unsubstantiated claims by former President Donald Trump that the November election he lost to Democrat Joe Biden was stolen. Democrats have condemned the restrictions as an attack on democracy.
Top U.S. companies decried Georgia's law, and Major League Baseball moved its All-Star game out of the state in protest.
In a second letter to Texas lawmakers, a group of about 175 Houston-area business and community leaders said the bills under consideration would "damage our competitiveness in attracting businesses and workers to Houston."
The office of the state's Speaker of the House, Republican Dade Phelan, did not return a call for comment.
After American Airlines first criticized one of the proposed bills in April, Texas Lieutenant Governor Dan Patrick accused American's chief executive of failing to read it, which the airline denied.
(Reporting by Jessica DiNapoli and Joseph Ax; Writing by Julia Harte Editing by Colleen Jenkins and Grant McCool)
((Julia.Harte@thomsonreuters.com; 202-590-7402;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O, based in Forth Worth, Texas, Hewlett Packard Enterprise Co HPE.N, Microsoft Corp MSFT.O, Salesforce.com Inc CRM.N and Unilever Plc ULVR.L are among more than 50 companies, chambers of commerce and business leaders in one of the coalitions, Fair Elections Texas. By Jessica DiNapoli May 4 (Reuters) - Two coalitions of business leaders on Tuesday urged Texas state lawmakers to reject any laws that would limit voters' access to ballots, adding corporate America's voice to a statewide debate over proposed voting restrictions. Republicans have also introduced or passed voting limits in Georgia, Arizona and Florida, citing unsubstantiated claims by former President Donald Trump that the November election he lost to Democrat Joe Biden was stolen.
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American Airlines Group Inc AAL.O, based in Forth Worth, Texas, Hewlett Packard Enterprise Co HPE.N, Microsoft Corp MSFT.O, Salesforce.com Inc CRM.N and Unilever Plc ULVR.L are among more than 50 companies, chambers of commerce and business leaders in one of the coalitions, Fair Elections Texas. By Jessica DiNapoli May 4 (Reuters) - Two coalitions of business leaders on Tuesday urged Texas state lawmakers to reject any laws that would limit voters' access to ballots, adding corporate America's voice to a statewide debate over proposed voting restrictions. In a second letter to Texas lawmakers, a group of about 175 Houston-area business and community leaders said the bills under consideration would "damage our competitiveness in attracting businesses and workers to Houston."
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American Airlines Group Inc AAL.O, based in Forth Worth, Texas, Hewlett Packard Enterprise Co HPE.N, Microsoft Corp MSFT.O, Salesforce.com Inc CRM.N and Unilever Plc ULVR.L are among more than 50 companies, chambers of commerce and business leaders in one of the coalitions, Fair Elections Texas. By Jessica DiNapoli May 4 (Reuters) - Two coalitions of business leaders on Tuesday urged Texas state lawmakers to reject any laws that would limit voters' access to ballots, adding corporate America's voice to a statewide debate over proposed voting restrictions. State legislators are considering two Republican-backed bills, one from the House and one from the Senate, that would limit early voting, change polling locations, restrict how voters can apply for mail-in ballots and give partisan poll watchers more power.
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American Airlines Group Inc AAL.O, based in Forth Worth, Texas, Hewlett Packard Enterprise Co HPE.N, Microsoft Corp MSFT.O, Salesforce.com Inc CRM.N and Unilever Plc ULVR.L are among more than 50 companies, chambers of commerce and business leaders in one of the coalitions, Fair Elections Texas. State legislators are considering two Republican-backed bills, one from the House and one from the Senate, that would limit early voting, change polling locations, restrict how voters can apply for mail-in ballots and give partisan poll watchers more power. In a second letter to Texas lawmakers, a group of about 175 Houston-area business and community leaders said the bills under consideration would "damage our competitiveness in attracting businesses and workers to Houston."
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4492.0
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2021-05-04 00:00:00 UTC
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Chilean mining chief warns royalties bill in current form 'akin to expropriation'
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https://www.nasdaq.com/articles/chilean-mining-chief-warns-royalties-bill-in-current-form-akin-to-expropriation-2021-05-04
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By Fabian Cambero
SANTIAGO, May 4 (Reuters) - Chile's National Mining Society (Sonami) has warned that a royalty project being discussed in Congress proposes levels of taxation that are "akin to expropriation" and would paralyze investment in the Andean nation.
The plan, which proposes a progressive tax of at least 3% on copper and lithium sales, is driven by opposition-party legislators as a way to fund more expansive government social programmes as the country struggles to recover from the coronavirus pandemic.
The bill has been tweaked in Congress' mining and finance commissions and will be voted on in the chamber of deputies on Thursday. If approved, it will move to the Senate.
Chile has seen a number of initiatives aimed at extracting more value from its largest industry over the years but the latest bill is gathering steam and alarming miners.
It follows intense social protests over inequality and elitism that exploded in October 2019 and simmer to this day, and comes after economic hardships inflicted by the pandemic.
The government opposes the royalties plan, with Mining Minister Juan Carlos Jobet saying it risked putting Chile "completely out of kilter" with other mining nations.
However, last week Congress - including ruling-coalition lawmakers - approved a third drawdown by citizens on Chile's privately held pension pots despite staunch government opposition. The country is also in the process of forging a new constitution - a key demand of the protests.
Big miners are stepping up lobbying efforts to oppose the latest plan.
Diego Hernandez, the president of Sonami, which represents copper miners across Chile, issued a statement reiterating earlier comments that the project is unconstitutional, and that if it were approved as currently conceived it would have serious consequences for the industry and the country.
He said that under the current proposal, 12 of the 15 biggest miners operating in the country would end up operating at a loss.
"These are tax levels akin to expropriation and this is going to inhibit investment immediately," he said.
In addition to the state-owned Codelco, Chile is host to mining operations by BHP Group Ltd BHP.AX, Anglo American Plc AAL.L, Glencore Plc GLEN.L, Antofagasta Minerals ANTO.L and Freeport-McMoRan Inc FCX.N.
(Reporting by Aislinn Laing in Santiago Editing by Matthew Lewis)
((Aislinn.Laing@thomsonreuters.com; +56 223704250;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition to the state-owned Codelco, Chile is host to mining operations by BHP Group Ltd BHP.AX, Anglo American Plc AAL.L, Glencore Plc GLEN.L, Antofagasta Minerals ANTO.L and Freeport-McMoRan Inc FCX.N. The plan, which proposes a progressive tax of at least 3% on copper and lithium sales, is driven by opposition-party legislators as a way to fund more expansive government social programmes as the country struggles to recover from the coronavirus pandemic. However, last week Congress - including ruling-coalition lawmakers - approved a third drawdown by citizens on Chile's privately held pension pots despite staunch government opposition.
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In addition to the state-owned Codelco, Chile is host to mining operations by BHP Group Ltd BHP.AX, Anglo American Plc AAL.L, Glencore Plc GLEN.L, Antofagasta Minerals ANTO.L and Freeport-McMoRan Inc FCX.N. By Fabian Cambero SANTIAGO, May 4 (Reuters) - Chile's National Mining Society (Sonami) has warned that a royalty project being discussed in Congress proposes levels of taxation that are "akin to expropriation" and would paralyze investment in the Andean nation. The government opposes the royalties plan, with Mining Minister Juan Carlos Jobet saying it risked putting Chile "completely out of kilter" with other mining nations.
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In addition to the state-owned Codelco, Chile is host to mining operations by BHP Group Ltd BHP.AX, Anglo American Plc AAL.L, Glencore Plc GLEN.L, Antofagasta Minerals ANTO.L and Freeport-McMoRan Inc FCX.N. By Fabian Cambero SANTIAGO, May 4 (Reuters) - Chile's National Mining Society (Sonami) has warned that a royalty project being discussed in Congress proposes levels of taxation that are "akin to expropriation" and would paralyze investment in the Andean nation. The government opposes the royalties plan, with Mining Minister Juan Carlos Jobet saying it risked putting Chile "completely out of kilter" with other mining nations.
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In addition to the state-owned Codelco, Chile is host to mining operations by BHP Group Ltd BHP.AX, Anglo American Plc AAL.L, Glencore Plc GLEN.L, Antofagasta Minerals ANTO.L and Freeport-McMoRan Inc FCX.N. By Fabian Cambero SANTIAGO, May 4 (Reuters) - Chile's National Mining Society (Sonami) has warned that a royalty project being discussed in Congress proposes levels of taxation that are "akin to expropriation" and would paralyze investment in the Andean nation. The plan, which proposes a progressive tax of at least 3% on copper and lithium sales, is driven by opposition-party legislators as a way to fund more expansive government social programmes as the country struggles to recover from the coronavirus pandemic.
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4493.0
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2021-05-04 00:00:00 UTC
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Chile's March copper production mixed with drop at Escondida
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https://www.nasdaq.com/articles/chiles-march-copper-production-mixed-with-drop-at-escondida-2021-05-04
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By Fabian Cambero
SANTIAGO, May 4 (Reuters) - Copper production at most of Chile's mines was mixed in March because of strong output from state-miner Codelco and Collahuasi but a continued downturn in production at BHP's Escondida BHP.AX.
Chilean state Copper Commission Cochilco reported that Codelco's production rose 0.7% this March compared to the same month the previous year to 148,700 tonnes, while Collahuasi - a joint venture by Glencore GLEN.N and Anglo American AAL.L - posted a 5.2% year-on-year uptick in its production, to 53,000 tonnes.
However the world's largest copper mine, Escondida, saw a drop in production for the eight month running, with a decline of 11.7% year-on-year to 89,900 tonnes.
Escondida has curtailed some operations since the outbreak of the coronavirus pandemic and imposition of restrictions, including reducing cathode production.
The country's total production was down 1.2% year-on-year in March to 488,700 tonnes, Cochilco said.
(Reporting by Fabian Cambero, writing by Aislinn Laing)
((Aislinn.Laing@thomsonreuters.com; +56 223704250;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chilean state Copper Commission Cochilco reported that Codelco's production rose 0.7% this March compared to the same month the previous year to 148,700 tonnes, while Collahuasi - a joint venture by Glencore GLEN.N and Anglo American AAL.L - posted a 5.2% year-on-year uptick in its production, to 53,000 tonnes. However the world's largest copper mine, Escondida, saw a drop in production for the eight month running, with a decline of 11.7% year-on-year to 89,900 tonnes. Escondida has curtailed some operations since the outbreak of the coronavirus pandemic and imposition of restrictions, including reducing cathode production.
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Chilean state Copper Commission Cochilco reported that Codelco's production rose 0.7% this March compared to the same month the previous year to 148,700 tonnes, while Collahuasi - a joint venture by Glencore GLEN.N and Anglo American AAL.L - posted a 5.2% year-on-year uptick in its production, to 53,000 tonnes. However the world's largest copper mine, Escondida, saw a drop in production for the eight month running, with a decline of 11.7% year-on-year to 89,900 tonnes. The country's total production was down 1.2% year-on-year in March to 488,700 tonnes, Cochilco said.
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Chilean state Copper Commission Cochilco reported that Codelco's production rose 0.7% this March compared to the same month the previous year to 148,700 tonnes, while Collahuasi - a joint venture by Glencore GLEN.N and Anglo American AAL.L - posted a 5.2% year-on-year uptick in its production, to 53,000 tonnes. By Fabian Cambero SANTIAGO, May 4 (Reuters) - Copper production at most of Chile's mines was mixed in March because of strong output from state-miner Codelco and Collahuasi but a continued downturn in production at BHP's Escondida BHP.AX. However the world's largest copper mine, Escondida, saw a drop in production for the eight month running, with a decline of 11.7% year-on-year to 89,900 tonnes.
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Chilean state Copper Commission Cochilco reported that Codelco's production rose 0.7% this March compared to the same month the previous year to 148,700 tonnes, while Collahuasi - a joint venture by Glencore GLEN.N and Anglo American AAL.L - posted a 5.2% year-on-year uptick in its production, to 53,000 tonnes. By Fabian Cambero SANTIAGO, May 4 (Reuters) - Copper production at most of Chile's mines was mixed in March because of strong output from state-miner Codelco and Collahuasi but a continued downturn in production at BHP's Escondida BHP.AX. However the world's largest copper mine, Escondida, saw a drop in production for the eight month running, with a decline of 11.7% year-on-year to 89,900 tonnes.
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4494.0
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2021-05-04 00:00:00 UTC
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Why Hertz Stock Could Become the Top Penny Stock of 2021
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https://www.nasdaq.com/articles/why-hertz-stock-could-become-the-top-penny-stock-of-2021-2021-05-04
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When Hertz (OTCMKTS:HTZGQ) declared bankruptcy last May, investors might have initially wondered if things could get any worse. Hertz stock had already lost 86% of its value since the start of the coronavirus pandemic.
HTZGQ) sign in Montevrain, France on May 8, 2016." width="300" height="169">
Source: aureliefrance / Shutterstock.com
Any lingering questions regarding the indebted rental car company were soon answered. That day, Hertz shares would sink another 81% to 56 cents. Only foolhardy retail investors seemed willing to defy Wall Street logic and buy in.
Yet, these so-called “dumb money” investors might have the last laugh. This week, shares in rival Avis Budget (NASDAQ:CAR) hit an all-time high of $90, driven by a combination of consumer pent-up-demand and vehicle scarcity. An equivalent valuation on Hertz would have priced shares at $720 million (or $4.60 per share) before its bankruptcy reorganization. With its remaining rental fleet of almost 300,000 vehicles, Hertz’s value could grow even higher.
Things won’t be smooth sailing. Bankruptcy court rulings are often unpredictable, particularly when multiple debts are involved. And another economic slowdown — whether self-inflicted or exogenous — would almost guarantee that Hertz equity holders will receive nothing.
But given the sub-$3 price of Hertz stock, it’s a one-way gamble that could be worth taking. Because if a stock has a potential 200% to 1,000% upside, investors only need a slight chance for the bet to pay off.
7 Consumer Stocks to Buy Before Picnic Season Begins
Don’t bet your house on it. But if you have some “vacation money” to spare, Hertz looks like a gamble worth taking.
Hertz Stock: A Lesson From American Airlines
Corporate bankruptcies typically signal the end for owners of common stock. Banks and bondholders have priority in recouping losses, while shareholders get whatever scraps remain. In short, when a firm’s enterprise value plus cash drops below the value of its total debt, the resulting negative market cap means shares are worthless.
For years, Hertz stock has teetered on this same knife’s edge. Its abnormally large $15 billion debt burden — a byproduct of its private equity days — meant that Hertz has struggled to pay down debt. (Analysts have labeled the root cause, an ill-advised $1 billion dividend recap, as “one of that era’s most-criticized transactions“). The decade before the Covid-19 pandemic, Hertz spent more on interest payments ($6.85 billion) than it earned from operations ($6.71 billion).
Still, bankruptcies can occasionally end in success. In 2013, American Airlines (NASDAQ:AAL) shareholders emerged victorious from a high-profile bankruptcy.
When the airline filed for bankruptcy in 2011, Shares sank to pennies on the expectation that AAL’s $17.8 billion of liabilities outweighed its enterprise value. American Airlines would get delisted from major exchanges, leaving its pink-sheet listings available for 36 cents apiece.
But then something interesting happened. When U.S. Airways CEO Doug Parker approached American Airlines with a buyout offer, American’s Chairman, Tom Horton, managed to negotiate a 72-28 equity split. As an added twist, the ownership escalator was based on stock performance 120 days after the IPO.
In other words, creditors could get paid off with equity in the new company. At the time, neither side knew whether that would leave American Airlines shareholders with anything.
The gamble worked. As shares in the merged airline surged to $36 by 2014, those who bought American Airlines as an OTC penny stock at 36 cents would have walked away happy.
Hertz and the Used Car Market
Today, Hertz finds itself in a similar situation. In early March, the car rental company accepted an offer that valued the aggregate firm at $4.8 billion — a steep discount to its $20 billion pre-coronavirus valuation. By mid-April, two more bids had raised the value of Hertz’s debt alone to $6.2 billion.
Core to this rise is a simple problem of supply and demand. At the start of the pandemic, car manufacturers decreased production in anticipation of lower demand. The cuts, however, proved too steep. When sales shrank by a less-than-expected 15%, carmakers proved unable to keep up. Used car prices rose 20% for the year.
Then came the computer chip shortage. Driven by unprecedented demand for personal electronics, the world’s chip makers reduced allocation to car manufacturers. As firms from Tesla (NASDAQ:TSLA) to Peugeot (NYSE:STLA) have idled production, used car prices have risen further. The Manheim Used Vehicle Value Index is now up 52% year-on-year. Had Hertz held onto its entire fleet (assuming it had the means), they might have earned $8 billion in paper gains.
The legacy firm’s slimmed-down 300,000 vehicle fleet could become its greatest asset. As used car prices continue to rise, Hertz will find itself able to borrow more (and at lower interest rates) against each vehicle. That might not eliminate the firm’s total debts, but refinancing will lower interest payments and create a road to solvency.
What Is Hertz Worth?
Even American Airlines’ bosses didn’t know what their company was worth in bankruptcy. When you have $19 billion in debt, the difference between $18 billion and $20 billion enterprise value is negative versus positive $1 billion equity value.
Hertz shareholders have found themselves equally in the dark. In late March, Hertz’s management agreed to a plan that would repay 70 cents per dollar for unsecured creditors. Shareholders would presumably receive zero. Since then, shares in the industry have risen on investor optimism. Junior Hertz bonds now trade at 100 cents to the dollar.
That means a bankruptcy judge will now likely reject Hertz’s original proposition. If other entities are willing to buy Hertz’s debt for fuller valuations, there’s little reason to settle for a lower price that would eliminate shareholders and penalize unsecured debt holders.
HTZGQ Stock Could Be the Top Penny Stock of 2021
Investors in over-the-counter pink sheets often face a bewildering choice of low-revenue, opaque firms. Most of these bets go on to disappoint. In fact, the average penny stock “returns” -32%. Bankrupt companies fall even further — the average stock in bankruptcy drops 70% during their proceedings, according to a study by professors at UMass and Philadelphia University. More than half of bankrupt firms go straight to zero.
Yet Hertz is a strange standout among its unlisted penny stock peers. Its global brand — which includes Hertz, Dollar and Thrifty — has 12,000 locations around the world. That makes the firm larger than 10,600-location Avis and twice as big as 6,000-location Enterprise. The industry is also riding a surge of Covid-19 reopening demand.
Rental car prices have increased 30% nationally, with some tourist destinations reporting 300% increases. Meanwhile, rental car companies have delayed replacing their fleet. Avis sold 250,000 vehicles in 2020, joining Hertz and others in shrinking available inventory. Demand for rental cars may outpace supply for years.
Hertz bondholders have wasted no time. Today, the firm’s unsecured bonds are trading at par, signaling that investors believe full repayment is forthcoming. If that’s the case, Hertz’s equity value might be worth anywhere between $800 million to $3 billion, depending on the speed of the coronavirus recovery.
That makes Hertz stock a bet worth taking. Because, strangely enough, the longer Hertz spends in bankruptcy court, the better its chance of survival. Investors take note: the Hertz saga isn’t quite finished yet.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing.
The post Why Hertz Stock Could Become the Top Penny Stock of 2021 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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In 2013, American Airlines (NASDAQ:AAL) shareholders emerged victorious from a high-profile bankruptcy. When the airline filed for bankruptcy in 2011, Shares sank to pennies on the expectation that AAL’s $17.8 billion of liabilities outweighed its enterprise value. This week, shares in rival Avis Budget (NASDAQ:CAR) hit an all-time high of $90, driven by a combination of consumer pent-up-demand and vehicle scarcity.
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In 2013, American Airlines (NASDAQ:AAL) shareholders emerged victorious from a high-profile bankruptcy. When the airline filed for bankruptcy in 2011, Shares sank to pennies on the expectation that AAL’s $17.8 billion of liabilities outweighed its enterprise value. In short, when a firm’s enterprise value plus cash drops below the value of its total debt, the resulting negative market cap means shares are worthless.
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In 2013, American Airlines (NASDAQ:AAL) shareholders emerged victorious from a high-profile bankruptcy. When the airline filed for bankruptcy in 2011, Shares sank to pennies on the expectation that AAL’s $17.8 billion of liabilities outweighed its enterprise value. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When Hertz (OTCMKTS:HTZGQ) declared bankruptcy last May, investors might have initially wondered if things could get any worse.
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In 2013, American Airlines (NASDAQ:AAL) shareholders emerged victorious from a high-profile bankruptcy. When the airline filed for bankruptcy in 2011, Shares sank to pennies on the expectation that AAL’s $17.8 billion of liabilities outweighed its enterprise value. Even American Airlines’ bosses didn’t know what their company was worth in bankruptcy.
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4495.0
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2021-05-04 00:00:00 UTC
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ANALYSIS-Stricken airlines seek lifeline from transatlantic opening
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AAL
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https://www.nasdaq.com/articles/analysis-stricken-airlines-seek-lifeline-from-transatlantic-opening-2021-05-04
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nan
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nan
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By Laurence Frost and Sarah Young
PARIS/LONDON, May 4 (Reuters) - Diplomatic moves to ease transatlantic air travel could unleash fierce competition to entice passengers back into near-empty cabins at a time when tottering airlines can ill afford a price war in the world's richest aviation market.
Talks between Brussels and Washington on resuming mass travel for vaccinated tourists have raised hopes of a summer rebound - further buoyed by new EU reopening proposals.
Airlines are desperate for good news after a year of COVID-19 lockdowns that pushed many to the brink of collapse, or into the arms of governments.
The United States will reopen to Europeans in "a matter of the next two or three weeks", Lufthansa LHAG.DE Chief Executive Carsten Spohr predicted last week.
But the German airline boss also cautioned against any race to the bottom on fares.
"The North Atlantic is historically the most disciplined traffic region," Spohr told investors. "I expect this discipline (to) prevail."
United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N have added summer routes to countries like Iceland and Greece that plan to welcome vaccinated travellers.
Consumers are showing some interest.
Air France-KLM said U.S. sales twitched back to life last month after French President Emmanuel Macron announced restrictions may be eased for vaccinated Americans - and again when the EU confirmed talks with Washington.
Air France is adding a Paris-Denver service, in what network chief Olivier Piette described as a "big bet" on a secondary U.S. leisure route with less direct competition.
The Franco-Dutch group is partnered with Delta and Virgin Atlantic in one of three transatlantic joint-ventures that allow extensive commercial cooperation. Lufthansa is paired with United, and British Airways ICAG.L with American.
Virgin is expecting a scrap, Chief Executive Shai Weiss said recently. "I'm sure there's going to be tremendous competition and we'll rise to it."
But airlines bled dry by the crisis will resist aggressive discounting, predicts analyst John Grant of data specialist OAG.
"The bean counters will be keeping a close eye on that," he said. "Investors will also want to see airlines behaving responsibly in the recovery."
DISNEY AND A DOSE OF REALITY
Airlines currently plan about 65% of pre-crisis transatlantic capacity in the third quarter, according to OAG - but many flights could end up cancelled.
Mid-sized Boeing BA.N 787s and Airbus AIR.PA A350s will be summer favourites, OAG expects, thanks to fuel efficiency and freight capacity. Grounded 747s and A380 superjumbos are unlikely to return so soon.
Summer bookings are just a fifth of their level at the same point in 2019, separate ForwardKeys data show.
Greece, which has been promising unfettered access for visitors with vaccines or negative tests, is so far the standout destination for U.S. tourists with sales at 74% of pre-crisis levels.
For Britons, Disney World DIS.N remains a draw, with Orlando, Florida bookings down 52%, a relatively strong showing.
Airline network managers have suffered repeated false starts, with a shift to last-minute booking further obscuring recovery prospects.
American Airlines revenue chief Vasu Raja offered a "dose of reality" on summer traffic to Europe. "A lot of the customers that would have gone there have already booked trips to Hawaii or Florida anyway," he told investors.
European carriers such as Virgin and British Airways have more at stake in the North Atlantic than U.S. peers cushioned by a rebounding domestic market. Hopes are high for a return to quarantine-free travel between Britain and the United States.
European airline shares rose on the latest EU reopening steps, with British Airways parent IAG up 2.5% on Tuesday as London trading resumed after a public holiday.
Geoffrey Weston, a consultant with Bain & Co., expects airlines to rein in revenue management software that typically sets fares to fill planes.
"In recovering markets there's more human intervention and control over pricing," Weston said, adding that Norwegian Air's NORR.OL transatlantic exit had also eased pressure.
Soaring cargo rates have allowed airlines to keep routes open with low passenger occupancy and may limit the competitive drive to slash fares as demand picks up.
Air France is serving 11 U.S. cities - increasing to 12 with Denver - with A350s, 787s and first class-equipped 777s whose freight loads largely cover the costs of running the flight.
"It's thanks to cargo that we've been able to maintain our long-haul programme," said Piette.
"It's a good fit with current consumer behaviour."
EU aims to open up to foreign tourists this summer amidst COVID-19
European Union will let vaccinated Americans visit this summer - official
Capital hike brings Air France under government's wing
(Reporting by Laurence Frost and Sarah Young; Additional reporting by Tracy Rucinski in Chicago and Ilona Wissenbach in Frankfurt; Editing by Tim Hepher and Pravin Char)
((laurence.frost@thomsonreuters.com; +33 1 4949 5683 @Laurence_Frost DMs on; Reuters Messaging: N/A))
The views and 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.O, American Airlines AAL.O and Delta Air Lines DAL.N have added summer routes to countries like Iceland and Greece that plan to welcome vaccinated travellers. By Laurence Frost and Sarah Young PARIS/LONDON, May 4 (Reuters) - Diplomatic moves to ease transatlantic air travel could unleash fierce competition to entice passengers back into near-empty cabins at a time when tottering airlines can ill afford a price war in the world's richest aviation market. Air France-KLM said U.S. sales twitched back to life last month after French President Emmanuel Macron announced restrictions may be eased for vaccinated Americans - and again when the EU confirmed talks with Washington.
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United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N have added summer routes to countries like Iceland and Greece that plan to welcome vaccinated travellers. By Laurence Frost and Sarah Young PARIS/LONDON, May 4 (Reuters) - Diplomatic moves to ease transatlantic air travel could unleash fierce competition to entice passengers back into near-empty cabins at a time when tottering airlines can ill afford a price war in the world's richest aviation market. EU aims to open up to foreign tourists this summer amidst COVID-19 European Union will let vaccinated Americans visit this summer - official Capital hike brings Air France under government's wing (Reporting by Laurence Frost and Sarah Young; Additional reporting by Tracy Rucinski in Chicago and Ilona Wissenbach in Frankfurt; Editing by Tim Hepher and Pravin Char) ((laurence.frost@thomsonreuters.com; +33 1 4949 5683 @Laurence_Frost DMs on; Reuters Messaging: N/A)) The views and 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.O, American Airlines AAL.O and Delta Air Lines DAL.N have added summer routes to countries like Iceland and Greece that plan to welcome vaccinated travellers. By Laurence Frost and Sarah Young PARIS/LONDON, May 4 (Reuters) - Diplomatic moves to ease transatlantic air travel could unleash fierce competition to entice passengers back into near-empty cabins at a time when tottering airlines can ill afford a price war in the world's richest aviation market. EU aims to open up to foreign tourists this summer amidst COVID-19 European Union will let vaccinated Americans visit this summer - official Capital hike brings Air France under government's wing (Reporting by Laurence Frost and Sarah Young; Additional reporting by Tracy Rucinski in Chicago and Ilona Wissenbach in Frankfurt; Editing by Tim Hepher and Pravin Char) ((laurence.frost@thomsonreuters.com; +33 1 4949 5683 @Laurence_Frost DMs on; Reuters Messaging: N/A)) The views and 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.O, American Airlines AAL.O and Delta Air Lines DAL.N have added summer routes to countries like Iceland and Greece that plan to welcome vaccinated travellers. By Laurence Frost and Sarah Young PARIS/LONDON, May 4 (Reuters) - Diplomatic moves to ease transatlantic air travel could unleash fierce competition to entice passengers back into near-empty cabins at a time when tottering airlines can ill afford a price war in the world's richest aviation market. European carriers such as Virgin and British Airways have more at stake in the North Atlantic than U.S. peers cushioned by a rebounding domestic market.
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4496.0
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2021-05-04 00:00:00 UTC
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ANALYSIS-Punch-drunk airlines seek succour from transatlantic opening
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AAL
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https://www.nasdaq.com/articles/analysis-punch-drunk-airlines-seek-succour-from-transatlantic-opening-2021-05-04
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nan
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nan
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By Laurence Frost and Sarah Young
PARIS/LONDON, May 4 (Reuters) - Diplomatic moves to ease transatlantic air travel could unleash fierce competition to entice passengers back into near-empty cabins at a time when tottering airlines can ill afford a price war in the world's richest aviation market.
Talks between Brussels and Washington on resuming mass travel for vaccinated tourists have raised hopes of a summer rebound - further buoyed by new EU reopening proposals. [pnL8N2MQ1MJ]
Airlines are desperate for good news after a year of COVID-19 lockdowns that pushed many to the brink of collapse, or into the arms of governments.
The United States will reopen to Europeans in "a matter of the next two or three weeks", Lufthansa LHAG.DE Chief Executive Carsten Spohr predicted last week.
But the German airline boss also cautioned against any race to the bottom on fares.
"The North Atlantic is historically the most disciplined traffic region," Spohr told investors. "I expect this discipline (to) prevail."
United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N have added summer routes to countries like Iceland and Greece that plan to welcome vaccinated travellers.
Consumers are showing some interest.
Air France-KLM said U.S. sales twitched back to life last month after French President Emmanuel Macron announced restrictions may be eased for vaccinated Americans - and again when the EU confirmed talks with Washington.
Air France is adding a Paris-Denver service, in what network chief Olivier Piette described as a "big bet" on a secondary U.S. leisure route with less direct competition.
The Franco-Dutch group is partnered with Delta and Virgin Atlantic in one of three transatlantic joint-ventures that allow extensive commercial cooperation. Lufthansa is paired with United, and British Airways ICAG.L with American.
Virgin is expecting a scrap, Chief Executive Shai Weiss said recently. "I'm sure there's going to be tremendous competition and we'll rise to it."
But airlines bled dry by the crisis will resist aggressive discounting, predicts analyst John Grant of data specialist OAG.
"The bean counters will be keeping a close eye on that," he said. "Investors will also want to see airlines behaving responsibly in the recovery."
DISNEY AND A DOSE OF REALITY
Airlines currently plan about 65% of pre-crisis transatlantic capacity in the third quarter, according to OAG - but many flights could end up cancelled.
Mid-sized Boeing BA.N 787s and Airbus AIR.PA A350s will be summer favourites, OAG expects, thanks to fuel efficiency and freight capacity. Grounded 747s and A380 superjumbos are unlikely to return so soon.
Summer bookings are just a fifth of their level at the same point in 2019, separate ForwardKeys data show.
Greece, which has been promising unfettered access for visitors with vaccines or negative tests, is so far the standout destination for U.S. tourists with sales at 74% of pre-crisis levels.
For Britons, Disney World DIS.N remains a draw, with Orlando, Florida bookings down 52%, a relatively strong showing.
Airline network managers have suffered repeated false starts, with a shift to last-minute booking further obscuring recovery prospects.
American Airlines revenue chief Vasu Raja offered a "dose of reality" on summer traffic to Europe. "A lot of the customers that would have gone there have already booked trips to Hawaii or Florida anyway," he told investors.
European carriers such as Virgin and British Airways have more at stake in the North Atlantic than U.S. peers cushioned by a rebounding domestic market. Hopes are high for a return to quarantine-free travel between Britain and the United States.
Geoffrey Weston, a consultant with Bain & Co., expects airlines to rein in revenue management software that typically sets fares to fill planes.
"In recovering markets there's more human intervention and control over pricing," Weston said, adding that Norwegian Air's NORR.OL transatlantic exit had also eased pressure.
Soaring cargo rates have allowed airlines to keep routes open with low passenger occupancy and may limit the competitive drive to slash fares as demand picks up.
Air France is serving 11 U.S. cities - increasing to 12 with Denver - with A350s, 787s and first class-equipped 777s whose freight loads largely cover the costs of running the flight.
"It's thanks to cargo that we've been able to maintain our long-haul programme," said Piette.
"It's a good fit with current consumer behaviour."
(Reporting by Laurence Frost and Sarah Young; Additional reporting by Tracy Rucinski in Chicago and Ilona Wissenbach in Frankfurt; Editing by Tim Hepher and Pravin Char)
((laurence.frost@thomsonreuters.com; +33 1 4949 5683 @Laurence_Frost DMs on; Reuters Messaging: N/A))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N have added summer routes to countries like Iceland and Greece that plan to welcome vaccinated travellers. By Laurence Frost and Sarah Young PARIS/LONDON, May 4 (Reuters) - Diplomatic moves to ease transatlantic air travel could unleash fierce competition to entice passengers back into near-empty cabins at a time when tottering airlines can ill afford a price war in the world's richest aviation market. Air France-KLM said U.S. sales twitched back to life last month after French President Emmanuel Macron announced restrictions may be eased for vaccinated Americans - and again when the EU confirmed talks with Washington.
|
United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N have added summer routes to countries like Iceland and Greece that plan to welcome vaccinated travellers. By Laurence Frost and Sarah Young PARIS/LONDON, May 4 (Reuters) - Diplomatic moves to ease transatlantic air travel could unleash fierce competition to entice passengers back into near-empty cabins at a time when tottering airlines can ill afford a price war in the world's richest aviation market. The United States will reopen to Europeans in "a matter of the next two or three weeks", Lufthansa LHAG.DE Chief Executive Carsten Spohr predicted last week.
|
United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N have added summer routes to countries like Iceland and Greece that plan to welcome vaccinated travellers. By Laurence Frost and Sarah Young PARIS/LONDON, May 4 (Reuters) - Diplomatic moves to ease transatlantic air travel could unleash fierce competition to entice passengers back into near-empty cabins at a time when tottering airlines can ill afford a price war in the world's richest aviation market. American Airlines revenue chief Vasu Raja offered a "dose of reality" on summer traffic to Europe.
|
United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N have added summer routes to countries like Iceland and Greece that plan to welcome vaccinated travellers. By Laurence Frost and Sarah Young PARIS/LONDON, May 4 (Reuters) - Diplomatic moves to ease transatlantic air travel could unleash fierce competition to entice passengers back into near-empty cabins at a time when tottering airlines can ill afford a price war in the world's richest aviation market. Hopes are high for a return to quarantine-free travel between Britain and the United States.
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4497.0
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2021-05-02 00:00:00 UTC
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The 5 Biggest Stories of the Stock Market You Missed in April
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AAL
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https://www.nasdaq.com/articles/the-5-biggest-stories-of-the-stock-market-you-missed-in-april-2021-05-02
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nan
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nan
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Worried that you missed some game-changingstock market informationlast month? We've got you covered with some big stories that might not have received the attention they deserved. Read on to learn about the forces shaping the market in the short term so that you can confidently build a portfolio for long-term growth.
1. Powell on 60 Minutes
Federal Reserve Chairman Jerome Powell appeared on 60 Minutes to discuss monetary policy and the recovering economy. Powell reaffirmed previous assertions that the central bank would not raise interest rates anytime soon. He cited high unemployment, especially among lower-income households, as motivation to keep rates low in 2021.
Reading between the lines, we can see softening language and specific references to the level of inflation that could trigger future policy changes. The Fed previously vowed to keep rates low until 2024, but we seem far from that timeline as the economy springs back to life. The Fed is still prioritizing unemployment, but Powell indicated that monetary stimulus would be reduced after inflation consistently exceeded 2% for several periods.
With signs of inflation starting to manifest, this interview validated speculation that rates will rise ahead of schedule. This would put downward pressure on stock prices, especially for growth stocks with high valuations.
Image source: Getty Images.
2. Economists expect Fed action sooner rather than later
Economists are skeptical about the Fed's timeline, too. A recent survey by Bloomberg revealed that economists expect the Fed to taper its bond purchasing activity in the fourth quarter of this year. This is noteworthy given bond market activity over the past two months. Great economic data and corporate results are telling a lot of smart people that the central bank's publicly disclosed timeline isn't realistic. Don't be one of the investors who is caught off guard if the situation changes too quickly. Set your portfolio up to succeed regardless of the Fed's timing.
3. Great news for retail and distressed industries
First-quarter retail sales increased 14% from year, and March 2021 sales rose nearly 10% from February. Restaurants and bars were an especially bright spot in the data. We shouldn't read too much into that annual growth figure because March 2020 was deeply disrupted by the pandemic, and gasoline prices are substantially higher this year, but this is still important information.
April also saw some encouraging news for industries that have been suffering. American Airlines (NASDAQ: AAL) is ramping up domestic capacity this summer and planning to operate at 90% of its summer 2019 volume. That's a very bullish sign for travel and hospitality stocks.
Financials are also turning around. The five largest US banks helped kick off earnings season on a good note. They all exceeded estimates, and some completely smashed forecasts. Investment and corporate banking activity were bright spots, so these bellwethers are painting a reassuring picture of economic activity.
4. Economic data showed shortages across the supply chain
The Purchasing Managers Index (PMI) is a popular metric for measuring economic activity. Manufacturing PMI for the US reached its highest level since the 1980s, and the newer Services PMI metric hit an all-time high. Surging demand is common across all the largest sectors tracked, and constrained supply is failing to meet that demand. That combination of market forces drives prices higher at every link of the supply chain. It's a clear indicator of consumer price inflation down the road.
5. Whirlpool told us a lot about the state of the economy and consumers
Whirlpool (NYSE: WHR) CEO Marc Bitzer's public statements after the company reported earnings in April told us a lot about where the economy stands. First, the stimulus helped catalyze big-ticket durable goods purchases, which was one of its intended purposes. The appliance manufacturer also absorbed double-digit price increases for raw material and transportation, and it was able to pass them on to the consumer. That's textbook inflation.
A common thread runs through all these stories. We can conclude that the recovery is real and accelerating. It also seems fiscal stimulus has served its intended purpose. Those trends are likely to lead to higher employment and inflation. This is good news for retail stock shareholders and investors playing the reopening trade. It might not end so well for tech-heavy growth investors if the Fed adjusts its timeline. Keep these dynamics in mind as you manage your long-term investment portfolio through the next few months.
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Ryan Downie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ: AAL) is ramping up domestic capacity this summer and planning to operate at 90% of its summer 2019 volume. A recent survey by Bloomberg revealed that economists expect the Fed to taper its bond purchasing activity in the fourth quarter of this year. Great economic data and corporate results are telling a lot of smart people that the central bank's publicly disclosed timeline isn't realistic.
|
American Airlines (NASDAQ: AAL) is ramping up domestic capacity this summer and planning to operate at 90% of its summer 2019 volume. Great news for retail and distressed industries First-quarter retail sales increased 14% from year, and March 2021 sales rose nearly 10% from February. Investment and corporate banking activity were bright spots, so these bellwethers are painting a reassuring picture of economic activity.
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American Airlines (NASDAQ: AAL) is ramping up domestic capacity this summer and planning to operate at 90% of its summer 2019 volume. The Fed is still prioritizing unemployment, but Powell indicated that monetary stimulus would be reduced after inflation consistently exceeded 2% for several periods. This would put downward pressure on stock prices, especially for growth stocks with high valuations.
|
American Airlines (NASDAQ: AAL) is ramping up domestic capacity this summer and planning to operate at 90% of its summer 2019 volume. The Fed is still prioritizing unemployment, but Powell indicated that monetary stimulus would be reduced after inflation consistently exceeded 2% for several periods. Investment and corporate banking activity were bright spots, so these bellwethers are painting a reassuring picture of economic activity.
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4498.0
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2021-05-01 00:00:00 UTC
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10 Key Takeaways From Warren Buffett and Charlie Munger at Berkshire Hathaway's 2021 Shareholder Meeting
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AAL
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https://www.nasdaq.com/articles/10-key-takeaways-from-warren-buffett-and-charlie-munger-at-berkshire-hathaways-2021
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nan
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nan
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The annual shareholder meeting of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has become easily the most popular formal corporate gathering in the world. In normal times, thousands of investors flock to Omaha to see CEO Warren Buffett and vice-chair Charlie Munger talk about Berkshire, investing, and the business world.
For the second straight year, the pandemic prevented Berkshire from holding an in-person meeting. However, by moving the event to Los Angeles, Munger was able to join Buffett on stage, making the mood of the event a lot more upbeat than Buffett's largely solo performance in 2020. Below, we'll look at some of the most memorable things Buffett and Munger talked about at the May 1 shareholder meeting.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
1. Stock market leadership is fleeting
Buffett believes in the power of capitalism and in the role the U.S. plays in leading the global economy forward. He pointed out that among the world's biggest companies, five of the top six are American, with only oil giant Saudi Aramco breaking up the list led by Apple, Microsoft, Amazon, Alphabet, and Facebook.
Yet Buffett also warned investors not to be complacent. Pointing to the similar list from 1989, the Berkshire CEO noted that not one of the 20 top companies 32 years ago are still among the top 20 today. That includes powerhouses like ExxonMobil and General Electric, which have diminished greatly in importance in the intervening decades. Buffett suggested, "Make your own guess: How many companies on [today's] list are gonna be on the list 30 years from now?" Indeed, some could fall off a lot sooner than that.
2. Buffett and Munger disagree on the S&P 500 vs. Berkshire
Buffett has frequently advised investors to keep things simple and invest in an S&P 500 index fund. Indeed, when he dies, Buffett will leave a fund for his spouse, and 90% of that money is set to go into such an index fund. "I've never recommended Berkshire to anybody," Buffett said, as he has always wanted to avoid any appearance of giving an inside tip on the stock of the company he runs.
But Munger has a different view. "I personally prefer holding Berkshire to holding the market," he said, arguing that Berkshire's set of businesses and investments are in his view "better than the average" across the stock market.
3. Buffett: Airlines have "done better because we sold"
The move Berkshire Hathaway made to sell off airline stocks Delta Air Lines, Southwest Airlines, United Airlines Holdings, and American Airlines Group in the spring of 2020 was discussed at length during 2020's meeting, with Buffett justifying his sales by observing that "the world changed for airlines." Indeed, Buffett foresaw huge industry disruptions like contracting fleet sizes and reduced capacity.
What Buffett didn't foresee, though, was the massive government support that airlines got. Indeed, looking back, the Berkshire CEO believes that airlines might well not have gotten that support if he'd remained a shareholder. "They might very well have had a very different result," he noted, "if they'd had a very rich shareholder that owned 8% or 9%." Even now, though, Buffett wouldn't want to get back into his airline positions, pointing out that his position in American Express (NYSE: AXP) and his ownership of aerospace components specialist Precision Castparts give him plenty of exposure to the industry.
4. A minor mistake from Buffett
Some have questioned why Buffett trimmed his stake in tech giant Apple. The Oracle of Omaha admitted that was probably a mistake. "Charlie in his usual low-key way let me know it was a mistake," he added.
But Buffett did note that because of stock repurchases from Berkshire and Apple, Berkshire shareholders still saw their proportional stake in Apple increase. Nevertheless, ordinary investors will find it nice to see that even someone of Buffett's stature can make the same sort of mistakes they make.
5. Why Buffett doesn't like SPACs
Special purpose acquisition companies (SPACs) were all the rage throughout much of 2020 and into the beginning of 2021. But Buffett expressed his dislike for their business model, specifically the requirement most SPACs have to find a business within two years. "If you put a gun to my head and said you've got to buy a business in two years, I'd buy one," Buffett said. "But it wouldn't be much of one."
Moreover, Buffett reminded investors that SPAC managers typically have plenty of upside through private investments in public equity once a deal gets done, but they lack the downside. In his view, that leads to too many transactions, bidding up prices of potential acquisition candidates and making Berkshire uncompetitive as a buyer.
6. Views on the impact of low interest rates
Buffett and Munger both commented on the Federal Reserve's extraordinary efforts on monetary policy. Buffett explained, "Interest rates basically are to the value of assets what gravity is to matter," with the implication that a future rise in rates could send asset values falling sharply. Meanwhile, the Berkshire CEO noted that the current rate environment is tough, as "If you tell me I'm gonna have to lend money to the government at minus 2% a year, you're just telling me how I'll go broke."
Munger was more succinct in describing the risks involved with aggressive monetary and fiscal policy. "There's a good chance that this extreme conduct is more feasible than anybody thought," Munger said, "but if you keep just doing it without any limit, it'll end in disaster."
7. Munger on Bitcoin
Responding to a shareholder questions about Bitcoin (CRYPTO: BTC), Buffett decided to dodge the question. His motivation: avoiding making the hundreds of thousands of viewers who own the cryptocurrency unhappy.
Munger didn't hold back, however. "I hate the Bitcoin success," the vice-chair said. "The whole damn development is disgusting and contrary to the interest of civilization."
8. A Buffett dig at Elon Musk
Another shareholder question was addressed to Berkshire's insurance business head Ajit Jain, asking whether he'd write an insurance policy for Tesla's (NASDAQ: TSLA) CEO and SpaceX founder Elon Musk for his proposed missions to Mars. Jain quickly said no.
Buffett demurred, however. "It would depend on the premium," the Berkshire CEO said, "and I would probably have a somewhat different rate if Elon was on board."
9. Buffett and Munger smack down Robinhood
The popular Robinhood investing app has introduced millions of newcomers to investing. Buffett and Munger, however, were deeply critical of the brokerage company.
Buffett noted that Robinhood has "become a very significant part of the casino group that's joined the stock market in the last year and a half." Although there's nothing illegal or immoral about it in his eyes, the Berkshire CEO added, "I don't think you build a society around people doing it."
Munger went further: "It's just god-awful that something like that would draw investment from civilized men and decent citizens. It's deeply wrong. We don't wanna make our money selling things that are bad for people."
10. Berkshire's dynamic duo has learned some lessons in the past year
Near the conclusion of the Q&A period, Buffett and Munger were asked what lessons they've learned from the past year. Buffett quipped: "My biggest lesson has been to listen more to Charlie. He's been right on some things that I've been wrong on."
Munger answered: "If you're not a little confused by what's going on, you don't understand it. We're in sort of uncharted territory." Yet Buffett added that no matter how crazy things have been, "Stranger things are going to happen in the future." That's redoubled Buffett's commitment to ensure that Berkshire will stand the test of time for the long haul.
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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dan Caplinger owns shares of Alphabet (A shares), Alphabet (C shares), Apple, and Berkshire Hathaway (B shares) but does not own any cryptocurrencies mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Bitcoin, Facebook, Microsoft, and Tesla. The Motley Fool recommends Delta Air Lines and Southwest Airlines and recommends the following options: long January 2022 $1920.0 calls on Amazon, long January 2023 $200.0 calls on Berkshire Hathaway (B shares), long March 2023 $120.0 calls on Apple, short January 2022 $1940.0 calls on Amazon, short January 2023 $200.0 puts on Berkshire Hathaway (B shares), short June 2021 $240.0 calls on Berkshire Hathaway (B shares), and short March 2023 $130.0 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In normal times, thousands of investors flock to Omaha to see CEO Warren Buffett and vice-chair Charlie Munger talk about Berkshire, investing, and the business world. He pointed out that among the world's biggest companies, five of the top six are American, with only oil giant Saudi Aramco breaking up the list led by Apple, Microsoft, Amazon, Alphabet, and Facebook. Moreover, Buffett reminded investors that SPAC managers typically have plenty of upside through private investments in public equity once a deal gets done, but they lack the downside.
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Buffett: Airlines have "done better because we sold" The move Berkshire Hathaway made to sell off airline stocks Delta Air Lines, Southwest Airlines, United Airlines Holdings, and American Airlines Group in the spring of 2020 was discussed at length during 2020's meeting, with Buffett justifying his sales by observing that "the world changed for airlines." The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Bitcoin, Facebook, Microsoft, and Tesla. The Motley Fool recommends Delta Air Lines and Southwest Airlines and recommends the following options: long January 2022 $1920.0 calls on Amazon, long January 2023 $200.0 calls on Berkshire Hathaway (B shares), long March 2023 $120.0 calls on Apple, short January 2022 $1940.0 calls on Amazon, short January 2023 $200.0 puts on Berkshire Hathaway (B shares), short June 2021 $240.0 calls on Berkshire Hathaway (B shares), and short March 2023 $130.0 calls on Apple.
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Buffett and Munger disagree on the S&P 500 vs. Berkshire Buffett has frequently advised investors to keep things simple and invest in an S&P 500 index fund. Buffett: Airlines have "done better because we sold" The move Berkshire Hathaway made to sell off airline stocks Delta Air Lines, Southwest Airlines, United Airlines Holdings, and American Airlines Group in the spring of 2020 was discussed at length during 2020's meeting, with Buffett justifying his sales by observing that "the world changed for airlines." The Motley Fool recommends Delta Air Lines and Southwest Airlines and recommends the following options: long January 2022 $1920.0 calls on Amazon, long January 2023 $200.0 calls on Berkshire Hathaway (B shares), long March 2023 $120.0 calls on Apple, short January 2022 $1940.0 calls on Amazon, short January 2023 $200.0 puts on Berkshire Hathaway (B shares), short June 2021 $240.0 calls on Berkshire Hathaway (B shares), and short March 2023 $130.0 calls on Apple.
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In normal times, thousands of investors flock to Omaha to see CEO Warren Buffett and vice-chair Charlie Munger talk about Berkshire, investing, and the business world. Nevertheless, ordinary investors will find it nice to see that even someone of Buffett's stature can make the same sort of mistakes they make. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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4499.0
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2021-04-30 00:00:00 UTC
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ANALYSIS-BHP’s Mt. Arthur bind illustrates mining’s coal dilemma
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AAL
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https://www.nasdaq.com/articles/analysis-bhps-mt.-arthur-bind-illustrates-minings-coal-dilemma-2021-04-30
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nan
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nan
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By Melanie Burton
MELBOURNE, April 30 (Reuters) - As BHP Group BHP.AX looks at options to spin off or sell its thermal coal assets, the miner is facing pressure from climate conscious investors who want divergent paths and that's even before getting to the tough task of finding a buyer.
The world’s largest miner has been in talks with stakeholders on its plans to divest the Mt. Arthur thermal coal mine, its stake in a steel-making coal project with Japan's Mitsui 8031.T and a stake in a thermal coal mine in Colombia.
Some large shareholders are pushing the miner to exit immediately while other investors want a slower exit, to ensure the mine is wound down responsibly.
How BHP, which faces about $1 billion in clean up costs at Mt. Arthur alone, divests could be a template for other miners, including Glencore Plc GLEN.L and Anglo American AAL.L who are also mulling ways to offload coal assets.
BHP spin-off South32 S32.AX agreed this month to pay up to A$250 million ($194.70 million) to smooth the sale of its South African thermal coal business, partly funding environmental clean up costs over a decade.
"The best thing that BHP could do is set a global precedent about how to exit responsibly," said Tim Buckley, director of Austrian think tank Institute for Energy Economics and Financial Analysis (IEEFA).
BHP said that it had rehabilitated more than 1,211 hectares already at Mt. Arthur and that transparency was “fundamentally important” to any mine rehabilitation. It said it could not speculate on the outcome of any potential divestment of the Mt. Arthur asset.
BHP's exit from thermal coal would satisfy investment criteria laid down by Norway’s government pension fund, which owns about 5.58% of BHP’s London-listed arm.
It put BHP under observation for possible exclusion if it did not address its use or production of coal last year before raising its stake after BHP announced divestment plans.
The Norwegian wealth fund declined comment.
MINING LICENCE SET TO EXPIRE
Shareholder proposals that press companies to exit from fossil fuels without taking into account rehabilitation needs do not solve the problem, said Alison George at investment advisor Regnan, part of the Pendal Group which manages about A$97.4 billion.
"We have been concerned that (the proposals) really aren’t well targeted to address the system risk nor are they really likely to get the company to manage that risk better," she said.
BHP is considering smaller buyers and splitting the assets, with bids due in the next few weeks, said a banker familiar with the matter who declined to be identified as the information is not public.
While it would be a coup for a small company, BHP prefers a buyer that can sustain long term responsibilities, the banker added.
In 2016, Rio Tinto RIO.AX sold its Blair Athol mine in Queensland to coal junior Terracom TER.AX for A$1 along with providing a rehabilitation fund of A$80 million.
The fund now stands at about A$50 million after the state government trimmed its rehabilitation requirements at Terracom's request and allowed Terracom to draw down A$27 million in exchange for an insurer's guarantee.
One stumbling block to a sale has been the expiration of BHP's mining licence, set for June 2026. BHP said in March it will apply to extend operations to 2045.
The miner wrote down its Mt. Arthur coal business by $1.2 billion this year and took a smaller write-down on its Colombia coal asset, Cerrejon.
A listing may also not garner the value that BHP desires, with recent coal IPOs attracting tepid demand in Australia. RBC recently valued any spin-off at $2.7 billion.
As part of any spin off, think tank IEEFA has proposed BHP set up a $1 billion sinking fund to cover future rehabilitation liabilities.
That would see BHP maintain a controlling minority stake to prevent vulture funds stripping the fund or cashflow and with capital invested to reward shareholders with dividends and any land resale.
One institutional investor, who has been approached about the proposal via a third party, said the model carried high risk because it was untested and may not offer the security of returns his organization was looking for.
The competing shareholder pressures add to BHP's coal headaches for a business that has become problematic for miners amid action by environmental activists and with banks and insurers scaling back financing because of global warming concerns.
"The question is, how do you ensure the clean up of the mess that you have created in a socially responsible way?" said IEEFA director Buckley. ($1 = 1.2840 Australian dollars)
FACTBOX-Varied ESG targets of big mining companies
(Additional reporting by Gwladys Fouche in Oslo; Editing by Raju Gopalakrishnan)
((Raju.Gopalakrishnan@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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Arthur alone, divests could be a template for other miners, including Glencore Plc GLEN.L and Anglo American AAL.L who are also mulling ways to offload coal assets. By Melanie Burton MELBOURNE, April 30 (Reuters) - As BHP Group BHP.AX looks at options to spin off or sell its thermal coal assets, the miner is facing pressure from climate conscious investors who want divergent paths and that's even before getting to the tough task of finding a buyer. Shareholder proposals that press companies to exit from fossil fuels without taking into account rehabilitation needs do not solve the problem, said Alison George at investment advisor Regnan, part of the Pendal Group which manages about A$97.4 billion.
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Arthur alone, divests could be a template for other miners, including Glencore Plc GLEN.L and Anglo American AAL.L who are also mulling ways to offload coal assets. BHP spin-off South32 S32.AX agreed this month to pay up to A$250 million ($194.70 million) to smooth the sale of its South African thermal coal business, partly funding environmental clean up costs over a decade. Arthur coal business by $1.2 billion this year and took a smaller write-down on its Colombia coal asset, Cerrejon.
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Arthur alone, divests could be a template for other miners, including Glencore Plc GLEN.L and Anglo American AAL.L who are also mulling ways to offload coal assets. Arthur thermal coal mine, its stake in a steel-making coal project with Japan's Mitsui 8031.T and a stake in a thermal coal mine in Colombia. BHP spin-off South32 S32.AX agreed this month to pay up to A$250 million ($194.70 million) to smooth the sale of its South African thermal coal business, partly funding environmental clean up costs over a decade.
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Arthur alone, divests could be a template for other miners, including Glencore Plc GLEN.L and Anglo American AAL.L who are also mulling ways to offload coal assets. Arthur thermal coal mine, its stake in a steel-making coal project with Japan's Mitsui 8031.T and a stake in a thermal coal mine in Colombia. How BHP, which faces about $1 billion in clean up costs at Mt.
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