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4500.0
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2021-04-28 00:00:00 UTC
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Spirit Airlines Is On Track to Enjoy a Spirited Recovery
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-is-on-track-to-enjoy-a-spirited-recovery-2021-04-28
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
One of the bright growth stories in the travel sector in recent times has been Spirit Airlines (NYSE:SAVE) and SAVE stock. The company has grown from two planes in 1990 to 173 planes by the end of 2021. As a budget, no-frills airline, Spirit competes in the same industry segment as Southwest Airlines (NYSE:LUV) and Allegiant Travel (NASDAQ:ALGT).
SAVE) branded airplane flying in the air" width="300" height="169">
Source: Markus Mainka / Shutterstock.com
Spirit’s ticketing business model involves ultra-low-cost base fares with the ability to add on features such as checked baggage, seat selection and early boarding.
Although SAVE stock was hurt during the 2020 pandemic year, it may be a decent recovery play.
The Truth About the Airline Industry
Most people think the airline business is about airplanes and carrying passengers from one destination to another in a timely fashion at a relatively affordable cost. But airline companies are largely in the data analytics and statistical arbitrage business.
Finding the right mix of ticket prices is a complex data-mining operation. Prices must be kept low enough to fill planes but high enough to cover costs and earn a profit. It’s been said that no two tickets purchased on a flight carry the same price. The operating statistics showed to investors in press releases and Securities and Exchange Commission (SEC) filings is an analyst’s or statistician’s dream (or nightmare in some cases).
7 Stocks to Buy for May
“Airfares are determined by both intertemporal price discrimination and dynamic adjustment to stochastic demand,” says the author of a 54-page dissertation on airline ticket pricing. Which means prospective customers are very fickle, and their demand for tickets covers all possible ranges of urgency and affordability.
The Fundamentals
The airline business is very labor intensive. For Spirit, labor costs represented approximately 39.3%, 26% and 24.2% of total operating costs for 2020, 2019 and 2018, respectively. Fuel costs alone eat up about 25% of the total revenue base.
Airlines are largely a fixed cost business as the number of planes, flights and employees remain relatively steady over the short- to mid-term. That’s why those super computers must crunch those stats to keep the planes full. That is also why airlines are notorious cost crunchers, as they are always looking to cut back on unnecessary expenses. Former American Airlines (NASDAQ:AAL) CEO Robert Crandall told a fabulous and entertaining story on how far airlines will go to cut costs.
Warren Buffett on the Airline Business
In 2007, when discussing the airline industry, Warren Buffett said:
“The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money – think airlines.”
Always seeking a moat, or a firm with a strong competitive advantage in all his investments, Buffett also famously said:
“Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.”
Yes, it is a tough industry, but there are always exceptions in any challenging sector.
Spirit’s Financials
Spirit, of course, felt the impact of the Covid-19 pandemic lockdowns in 2020. Revenues decreased 53%, and the company reported an adjusted loss of $638 million. The company expects a partial recovery in 2021 since demand appears to be strong in the first quarter of this year. Airlines across the board are showing strong demand as vaccinations increase rapidly and many states lower restrictive lockdown mandates.
Analysts expect Spirit to generate about $3 billion in revenues in 2021. Additionally, that number is expected to increase to $4.2 billion in 2022. Those 2022 numbers are about 10% above 2019 pre-Covid levels, as analysts expect SAVE to resume its growth track by then. Furthermore, EBITDA (earnings before interest, taxes, depreciation and amortization) will likely break even this year but start to creep back to historical levels in 2022 and beyond.
Spirit’s leverage ratios seem very high, but only because of negative EBITDA last year and expected breakeven EBITDA in 2021. During a normalized recovery year (hopefully next year), SAVE’s debt-to-EBITDA ratio is expected to fall to a comfortable range of three to four times EBITDA. Liquidity at the end of Q1 2021 totaled $1.9 billion, which includes $1.8 billion in cash and short-term securities.
What to Do With SAVE Stock
SAVE stock may be a great recovery play for long-term investors. It has one of the lowest unit cost base in the airline industry with a proven ancillary add-on business model. The company has the liquidity to survive more negative free cash flows, which analysts expect this year.
It looks like as the pandemic fades and the economic recovery remains strong, SAVE can reclaim its pre-pandemic highs of over $60 in coming years.
On the date of publication Tom Kerr did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Tom Kerr, CFA, is an experienced investment manager and business writer who has worked in the investment and securities business since 1994.
The post Spirit Airlines Is On Track to Enjoy a Spirited Recovery 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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Former American Airlines (NASDAQ:AAL) CEO Robert Crandall told a fabulous and entertaining story on how far airlines will go to cut costs. SAVE) branded airplane flying in the air" width="300" height="169"> Source: Markus Mainka / Shutterstock.com Spirit’s ticketing business model involves ultra-low-cost base fares with the ability to add on features such as checked baggage, seat selection and early boarding. The operating statistics showed to investors in press releases and Securities and Exchange Commission (SEC) filings is an analyst’s or statistician’s dream (or nightmare in some cases).
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Former American Airlines (NASDAQ:AAL) CEO Robert Crandall told a fabulous and entertaining story on how far airlines will go to cut costs. InvestorPlace - Stock Market News, Stock Advice & Trading Tips One of the bright growth stories in the travel sector in recent times has been Spirit Airlines (NYSE:SAVE) and SAVE stock. Airlines are largely a fixed cost business as the number of planes, flights and employees remain relatively steady over the short- to mid-term.
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Former American Airlines (NASDAQ:AAL) CEO Robert Crandall told a fabulous and entertaining story on how far airlines will go to cut costs. InvestorPlace - Stock Market News, Stock Advice & Trading Tips One of the bright growth stories in the travel sector in recent times has been Spirit Airlines (NYSE:SAVE) and SAVE stock. The Truth About the Airline Industry Most people think the airline business is about airplanes and carrying passengers from one destination to another in a timely fashion at a relatively affordable cost.
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Former American Airlines (NASDAQ:AAL) CEO Robert Crandall told a fabulous and entertaining story on how far airlines will go to cut costs. InvestorPlace - Stock Market News, Stock Advice & Trading Tips One of the bright growth stories in the travel sector in recent times has been Spirit Airlines (NYSE:SAVE) and SAVE stock. Analysts expect Spirit to generate about $3 billion in revenues in 2021.
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4501.0
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2021-04-28 00:00:00 UTC
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Russia's Alrosa recommends record high H2 dividend
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AAL
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https://www.nasdaq.com/articles/russias-alrosa-recommends-record-high-h2-dividend-2021-04-28
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nan
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nan
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Adds details, quotes, context
MOSCOW, April 28 (Reuters) - Russia's Alrosa ALRS.MM. the world's largest producer of diamonds, said on Wednesday its board of directors had recommended a record half-year dividend payment of 70.3 billion roubles ($938 million)representing 80% of its free cash flow.
"80% of free cash flow is a generous payment. The market is probably not bad for diamonds from Alrosa's point of view," said Yuriy Vlasov, senior analyst at Sova Capital.
The dividend amounts to 9.54 roubles ($0.13) per share for the second half of 2020.
Shares in the state-controlled company rose 1.6% in Moscow, outperforming a 0.4% fall in the broader index .IMOEX.
The recommended dividend is Alrosa's only payment for 2020 and 47% higher than the one for full 2019.
The firm, which competes with Anglo American AAL.L unit De Beers, did not pay a dividend for the first half of 2020 as the pandemic hit demand.
"The decision confirms the Company's commitment to balancing the interests of shareholders and robust financial stability of the business," CEO Sergey Ivanov said in a statement.
Alrosa's 2020 net profit fell by 49% to 32.2 billion roubles on lower sales and a weaker rouble.
Its net debt remained low with net debt to EBITDA standing at 0.4 at the end of December.
($1 = 74.9225 roubles)
(Reporting by Maxim Rodionov and Polina Devitt; writing by Polina Devitt; editing by Louise Heavens and Jason Neely)
((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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The firm, which competes with Anglo American AAL.L unit De Beers, did not pay a dividend for the first half of 2020 as the pandemic hit demand. the world's largest producer of diamonds, said on Wednesday its board of directors had recommended a record half-year dividend payment of 70.3 billion roubles ($938 million)representing 80% of its free cash flow. "The decision confirms the Company's commitment to balancing the interests of shareholders and robust financial stability of the business," CEO Sergey Ivanov said in a statement.
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The firm, which competes with Anglo American AAL.L unit De Beers, did not pay a dividend for the first half of 2020 as the pandemic hit demand. the world's largest producer of diamonds, said on Wednesday its board of directors had recommended a record half-year dividend payment of 70.3 billion roubles ($938 million)representing 80% of its free cash flow. The recommended dividend is Alrosa's only payment for 2020 and 47% higher than the one for full 2019.
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The firm, which competes with Anglo American AAL.L unit De Beers, did not pay a dividend for the first half of 2020 as the pandemic hit demand. the world's largest producer of diamonds, said on Wednesday its board of directors had recommended a record half-year dividend payment of 70.3 billion roubles ($938 million)representing 80% of its free cash flow. Alrosa's 2020 net profit fell by 49% to 32.2 billion roubles on lower sales and a weaker rouble.
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The firm, which competes with Anglo American AAL.L unit De Beers, did not pay a dividend for the first half of 2020 as the pandemic hit demand. the world's largest producer of diamonds, said on Wednesday its board of directors had recommended a record half-year dividend payment of 70.3 billion roubles ($938 million)representing 80% of its free cash flow. The dividend amounts to 9.54 roubles ($0.13) per share for the second half of 2020.
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4502.0
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2021-04-27 00:00:00 UTC
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7 Travel Stocks Nervous About the Vaccine Slowdown
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AAL
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https://www.nasdaq.com/articles/7-travel-stocks-nervous-about-the-vaccine-slowdown-2021-04-27
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The economic reopening this year hinges on one thing: vaccines. The more people get vaccinated against Covid-19, the faster and broader the economic reopening will be as people resume normal routines and feel safe congregating in-person again.
The U.S. has been doing great on the vaccine front in recent months, managing to inoculate 41% of the adult population. However, recent reports that vaccination rates across the country are slowing (down as much as 11% in a week, by some estimates) is cause for concern as it could hamper the economic recovery. And no industry is more concerned about a vaccine slowdown than travel and leisure.
People being inoculated and able to gather together again is critical to airlines, hotels, theme parks and other companies operating in the tourism space — especially with the peak summer season fast approaching.
7 Hot Stocks to Buy Because of Soaring Sales
In this article, we look at seven travel stocks that are nervous about the vaccine slowdown.
Six Flags Entertainment (NYSE:SIX)
Hilton Worldwide Holdings (NYSE:HLT)
American Airlines (NASDAQ:AAL)
Airbnb (NASDAQ:ABNB)
TripAdvisor (NASDAQ:TRIP)
Royal Caribbean (NYSE:RCL)
Century Casinos (NASDAQ:CNTY)
Travel Stocks: Six Flags Entertainment (SIX)
SIX) Magic Mountain sign in Los Angeles, California." width="300" height="169">
Source: Martina Badini/Shutterstock.com
Is it safe enough to terrify ourselves by riding roller coasters again? Theme park operator Six Flags is hoping so with plans to reopen most of its 27 properties in the U.S., Canada and Mexico this summer.
Six Flags Entertainment owns more amusement parks and water parks than any other company in the world. In 2019, before the pandemic descended, 32.8 million people visited Six Flags parks. To say 2020 was an abysmal year is an understatement. Attendance at its parks last year fell short of 7 million people, down 26 million from 2019. Revenue last year plunged by $1.1 billion and the company posted a net loss for the year of $423 million.
SIX stock began recovering this year on hopes that the economic recovery will lead to increased business at Six Flags amusement and water parks. However, the share price has stalled since early March at right around $50 as investors take a more “wait-and-see” approach to the company and its stock.
Any slowdown in the roll out of vaccines could be problematic for Six Flags and its hopes to get its attendance levels up. The summer is particularly important to Six Flags as it is when the company earns the vast majority of its revenue from people visiting its parks.
Some analysts see this stock as a risky bet until the economic recovery is firmly underway.
Hilton Worldwide (HLT)
HLT) hotel" width="300" height="169">
Source: josefkubes / Shutterstock.com
Travel is essential to hotels and Hilton has been affected more than most companies by the shutdown in domestic and international travel over the past year. After all, Hilton owns or operates more than 6,200 properties (including timeshares ) in 118 countries around the world. Empty hotel rooms spell doom for a company such as Hilton, which had an occupancy rate under 40% for most of last year.
Hilton Hotels reported a net loss for full year 2020 of $720 million, or $2.56 a share. Like most companies reliant on tourism, Hilton Hotels is looking for a lifeline from Covid-19 vaccines.
8 Hot, A-Rated Small-Cap Stocks to Buy Now
And, like other companies on this list, HLT stock started off this year strong, rising 20% in the first seven weeks. But since the last week of February, the share price has been stuck at $127. Investors might be waiting for Hilton to report first quarter results on May 5 to better gauge how the company is recovering before buying more shares, and could also be waiting to see how the broader U.S. economy performs in the coming weeks and months.
Like most cyclical stocks, Hilton Hotels moves in tandem with the U.S. economy’s performance, both in good times and bad.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
Airlines are among the most prominent travel stocks, and the major carriers are more reliant than ever before on tourism as business travel may be permanently replaced by video conference calls and meetings held over Skype. As the largest airline in the world, American Airlines needs to boost the number of flights being booked by travelers and increase capacity on those flights. And that will only happen if a majority of people get vaccinated against Covid-19.
Forh Worth, Texas-based American Airlines recently reported that it lost $1.25 billion in this year’s first quarter, it’s fifth-consecutive quarterly loss. Revenue in the first quarter was 53% lower than in the same quarter of 2020 at $4 billion.
While American and other airlines are reporting an uptick in leisure bookings heading into the all important summer travel season, the carrier is unlikely to fully recover until Covid-19 vaccinations accelerate all over the world. AAL stock peaked this year at $26.09 on March 15. Since then, the stock has fallen 19% to right around $21.
Airbnb (ABNB)
ABNB) app on a smartphone screen." width="300" height="169">
Source: AngieYeoh / Shutterstock.com
Speaking of bookings, few companies are as dependent on leisure travel and tourism bookings as Airbnb, the online marketplace for home stays and vacation rentals.
ABNB stock has struggled mightily since hitting an all-time high of $220 a share in mid-February, falling 21% since then to $175. The decline has been prompted by uncertainty concerning the company’s outlook this year, which is entirely dependent on a strong rebound in vacation travel.
7 Hot Stocks to Buy Because of Soaring Sales
Airbnb, which only went public last December, has never been a profitable company. But it reported an eye-popping net loss for 2020 of $4.6 billion. (Cue the stock selloff). Still, the company is trying to remain positive, pointing out whenever it can that it foresees an addressableglobal marketof $3.4 trillion, and that it has a competitive advantage in the leisure and travel space.
Airbnb did pioneer the home vacation rental concept and should recover once people are again willing to leave their house and sleep in someone else’s.
TripAdvisor (TRIP)
TRIP)" width="300" height="169">
Source: Tero Vesalainen / Shutterstock.com
TripAdvisor, the online company that enables people to compare prices and make reservations for hotels, restaurants and rental cars, needs for travel to recover for its business to start growing again.
TRIP stock has been recovering and is up 80% year-to-date at just under $50 a share. However, the company’s share price today is lower than it was in 2018 and about half the price it was at in 2014 when the stock was trading at $110 a share. In many respects, the global pandemic has exacerbated the problems that already existed at TripAdvisor.
TripAdvisor’s revenue fell 61% year-over-year in 2020 as online users of its website and advertising declined. The company reported a net loss of $289 million for the year compared to a profit of $126 million in 2019. However, even before the pandemic, TripAdvisor was seeing its hotel bookings decline.
In recent years, the company’s non-hotel business unit, known as “Experiences and Dining,” has driven revenue growth. Until travel and dining recover with the Covid-19 vaccine roll out and broader economy, it might be best to avoid TRIP stock.
Royal Caribbean (RCL)
Source: Laszlo Halasi / Shutterstock.com
The situation with the cruise line industry is getting so dire that the governor of Florida is suing the Centers for Disease Control and Prevention (CDC) for issuing onerous guidelines that companies such as Royal Caribbean must follow in order to take their massive ships out of dry dock and sail the high seas again.
While Royal Caribbean and others say they have their own protocols in place to protect people aboard their cruise ships, they may not be able to begin unencumbered operations again until Covid-19 vaccinations reach a critical mass.
The drama swirling around the entire cruise industry has hurt RCL stock, which has come down 11% since the end of February to $85.86 a share. Adhering to required local guidelines, Royal Caribbean has resumed operations in some parts of the world, but only in a very limited capacity.
8 Hot, A-Rated Small-Cap Stocks to Buy Now
So far, the Miami, Florida-based company has resumed operations in Singapore, Germany, Greece and the Canary Islands. However, to fully recover, Royal Caribbean will need to get its operations going again in the U.S., which is the world’s biggest market for cruising.
Century Casinos (CNTY)
Source: Pavel Kapysh / Shutterstock.com
It’s been a bad time to bet on casino stocks. Even among travel sector stocks, casinos, where people sit in close proximity to each other while breathing recycled air, have been hard hit. Case in point, Century Casinos, the gaming company headquartered in Colorado Springs that operates 11 casinos in the U.S., Canada and U.K. Not only have Century Casinos’ main properties been shuttered over the past year, but the company also operates casinos aboard cruise ships for several different cruise lines, including Diamond Cruise International, TUI Cruises and Windstar Cruises.
CNTY stock has been pulled higher this year, but at about $10.75 a share, it is currently at the same level it was at before the pandemic shut its operations.
As well, the company’s debt situation coming out of Covid-19 has raised some eye brows on Wall Street. The company had debt of just under $500 million at the end of 2020 and cash on hand of only $63.4 million. While the casinos have seen a boost in foot traffic in recent months, greater numbers will be needed to repair the company’s balance sheet.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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 Travel Stocks Nervous About the Vaccine Slowdown 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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Six Flags Entertainment (NYSE:SIX) Hilton Worldwide Holdings (NYSE:HLT) American Airlines (NASDAQ:AAL) Airbnb (NASDAQ:ABNB) TripAdvisor (NASDAQ:TRIP) Royal Caribbean (NYSE:RCL) Century Casinos (NASDAQ:CNTY) Travel Stocks: Six Flags Entertainment (SIX) SIX) Magic Mountain sign in Los Angeles, California." American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Airlines are among the most prominent travel stocks, and the major carriers are more reliant than ever before on tourism as business travel may be permanently replaced by video conference calls and meetings held over Skype. AAL stock peaked this year at $26.09 on March 15.
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Six Flags Entertainment (NYSE:SIX) Hilton Worldwide Holdings (NYSE:HLT) American Airlines (NASDAQ:AAL) Airbnb (NASDAQ:ABNB) TripAdvisor (NASDAQ:TRIP) Royal Caribbean (NYSE:RCL) Century Casinos (NASDAQ:CNTY) Travel Stocks: Six Flags Entertainment (SIX) SIX) Magic Mountain sign in Los Angeles, California." American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Airlines are among the most prominent travel stocks, and the major carriers are more reliant than ever before on tourism as business travel may be permanently replaced by video conference calls and meetings held over Skype. AAL stock peaked this year at $26.09 on March 15.
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Six Flags Entertainment (NYSE:SIX) Hilton Worldwide Holdings (NYSE:HLT) American Airlines (NASDAQ:AAL) Airbnb (NASDAQ:ABNB) TripAdvisor (NASDAQ:TRIP) Royal Caribbean (NYSE:RCL) Century Casinos (NASDAQ:CNTY) Travel Stocks: Six Flags Entertainment (SIX) SIX) Magic Mountain sign in Los Angeles, California." American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Airlines are among the most prominent travel stocks, and the major carriers are more reliant than ever before on tourism as business travel may be permanently replaced by video conference calls and meetings held over Skype. AAL stock peaked this year at $26.09 on March 15.
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Six Flags Entertainment (NYSE:SIX) Hilton Worldwide Holdings (NYSE:HLT) American Airlines (NASDAQ:AAL) Airbnb (NASDAQ:ABNB) TripAdvisor (NASDAQ:TRIP) Royal Caribbean (NYSE:RCL) Century Casinos (NASDAQ:CNTY) Travel Stocks: Six Flags Entertainment (SIX) SIX) Magic Mountain sign in Los Angeles, California." American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Airlines are among the most prominent travel stocks, and the major carriers are more reliant than ever before on tourism as business travel may be permanently replaced by video conference calls and meetings held over Skype. AAL stock peaked this year at $26.09 on March 15.
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4503.0
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2021-04-27 00:00:00 UTC
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GRAPHIC-New capacity needed to meet rapid copper demand growth
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AAL
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https://www.nasdaq.com/articles/graphic-new-capacity-needed-to-meet-rapid-copper-demand-growth-2021-04-27
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nan
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nan
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By Pratima Desai
LONDON, April 27 (Reuters) - Ample copper supplies next year and in 2023 will keep the market balanced, but miners need to start investing in new capacity now to meet a pick up in demand growth as economies switch to renewable energy.
Copper CMCU3 prices at around $9,900 a tonne, close to the record $10,190 a tonne hit in February 2011, are significantly above levels needed for new projects and expansions to be profitable.
Many projects were shelved after 2013 when prices fell below minimum profit thresholds.
"For 2030/2031 we are looking at a supply gap of 4.5 million tonnes of greenfield project capacity, " said William Tankard, analyst at Wood Mackenzie.
"There is a compelling need to press on with technical studies, mine permitting and financing efforts in order to maintain a supply trend that can keep pace with demand growth in the medium term."
Projects coming onstream next year and in 2023 were mostly approved in 2017 and 2018. They include the expansion of BHP's BHP.AX, BLT.L Spence mine in Chile, which is expected to ramp up to full capacity next year, producing 300,000 tonnes a year until at least 2026.
Anglo American's AAL.L Quellaveco project in Peru is expected to produce up to 300,000 tonnes a year from 2023.
"During the last price upcycle in 2016-2018, $25 billion worth of projects were approved with annual production capacity of 1.8 million tonnes," JPMorgan analysts said in a note.
"Supply from these projects will be entering the market over the next three years."
Many of these projects were approved when copper prices were around $6,500 a tonne.
They are now much higher, but miners are not committing to investment, according to Bank Of America analyst Michael Widmer. "To meet copper demand, miners need to spend $60 billion on capex annually until 2025, but this year we are only getting $45 billion."
Bank of America estimates copper demand last year linked to decarbonisation at 2.35 million tonnes or 10% of the global total. It expects that number to rise to 4 million tonnes in 2025 and 5.2 million tonnes in 2030.
Copper Priceshttps://tmsnrt.rs/3aDPf1s
Copper mining capexhttps://tmsnrt.rs/2R20M3z
Copper mining projectshttps://tmsnrt.rs/2QZvoCW
(Reporting by Pratima Desai. Editing by Mark Potter)
((pratima.desai@thomsonreuters.com; +44 207 513 5681;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Anglo American's AAL.L Quellaveco project in Peru is expected to produce up to 300,000 tonnes a year from 2023. By Pratima Desai LONDON, April 27 (Reuters) - Ample copper supplies next year and in 2023 will keep the market balanced, but miners need to start investing in new capacity now to meet a pick up in demand growth as economies switch to renewable energy. "There is a compelling need to press on with technical studies, mine permitting and financing efforts in order to maintain a supply trend that can keep pace with demand growth in the medium term."
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Anglo American's AAL.L Quellaveco project in Peru is expected to produce up to 300,000 tonnes a year from 2023. They include the expansion of BHP's BHP.AX, BLT.L Spence mine in Chile, which is expected to ramp up to full capacity next year, producing 300,000 tonnes a year until at least 2026. "During the last price upcycle in 2016-2018, $25 billion worth of projects were approved with annual production capacity of 1.8 million tonnes," JPMorgan analysts said in a note.
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Anglo American's AAL.L Quellaveco project in Peru is expected to produce up to 300,000 tonnes a year from 2023. By Pratima Desai LONDON, April 27 (Reuters) - Ample copper supplies next year and in 2023 will keep the market balanced, but miners need to start investing in new capacity now to meet a pick up in demand growth as economies switch to renewable energy. Copper CMCU3 prices at around $9,900 a tonne, close to the record $10,190 a tonne hit in February 2011, are significantly above levels needed for new projects and expansions to be profitable.
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Anglo American's AAL.L Quellaveco project in Peru is expected to produce up to 300,000 tonnes a year from 2023. By Pratima Desai LONDON, April 27 (Reuters) - Ample copper supplies next year and in 2023 will keep the market balanced, but miners need to start investing in new capacity now to meet a pick up in demand growth as economies switch to renewable energy. Many of these projects were approved when copper prices were around $6,500 a tonne.
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4504.0
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2021-04-26 00:00:00 UTC
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3 Stocks to Avoid This Week
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AAL
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-2021-04-26
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nan
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nan
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I took a look at three stocks to avoid last week, predicting that Coinbase Global (NASDAQ: COIN), American Airlines (NASDAQ: AAL), and Travelzoo (NASDAQ: TZOO) would have a bad week.
Coinbase was a big loser last week. It slipped every single trading day, plunging 15% along the way. Some of the shine was already starting to come off of this month's hot debutante, but it certainly didn't help that crypto prices were correcting sharply last week.
American Airlines declined 4% for the week. It reported mixed quarterly results. The legacy air carrier is seeing bookings start to pick up, but rising costs may eat away at a potential recovery.
Finally we have Travelzoo matching American Airlines with its own 4% descent last week. The travel deals publisher saw its quarterly revenue decline 30% from a week earlier, but there was better-than-expected sequential improvement. It wasn't enough to impress the market.
The three stocks averaged a 7.7% slide for the week. The S&P 500 was roughly flat for the week, with a 0.1% decline that was better than all three declining stocks. This is the second week in a row where all three stocks fall in a flat or rising market. This week, I see Coinbase Global, Six Flags Entertainment (NYSE: SIX), and MicroStrategy (NASDAQ: MSTR) as vulnerable investments in the near term. Here's why I think these are three stocks to avoid this week.
Image source: Getty Images.
1. Coinbase Global
Last week's crypto correction rocked Coinbase. The leading cryptocurrencies were showing signs of weakness even before buzz about a big tax hike on capital gains for the country's wealthiest earners ate into the market's enthusiasm.
Corrections are normal, and in many ways healthy. Bitcoin (CRYPTO: BTC) and other viable digital currencies should bounce back. The problem here is that Coinbase itself was overvalued and vulnerable. The leading marketplace for all things crypto is facing stiff competition in the near future, and it will have to cut its trading commissions if it wants to remain the top dog. I remain a long-term bull on cryptocurrency stocks in general, but Coinbase remains overpriced at 45 times trailing revenue.
2. Six Flags Entertainment
I have a soft spot for thrill rides and regional amusement parks. I'm proud to say that 67 of the 219 roller coasters that I have ridden -- yes, I do keep track -- are Six Flags attractions. However, with the thrill maker reporting financial results on Wednesday I do have my near-term concerns on the chain as an investment.
The stock is trading much higher than it was in the months leading up to the pandemic, and that's problematic. Don't get me wrong. Folks are clamoring for diversions. The economy is going to bounce back a lot faster than worrywarts thing with all of the money that we collectively saved during the past year. However, Six Flags still isn't worth more than it was before the COVID-19 crisis.
Wednesday morning's report may not seem very relevant. The first three months of the year are soft for this seasonal operator. Analysts see a 53% year-over-year decline in revenue, but Six Flags will talk up the upcoming summer season with strong pass sales and buoyant attendance at parks that have already opened. One trend that isn't so kind is that it has posted a larger-than-expected loss in each of its last three quarters. Until that streak is snapped, Six Flags doesn't deserve to be trading near an 18-month high.
3. MicroStrategy
If you like your enterprise software companies with a side of crypto you may as well order a plate of MicroStrategy. MicroStrategy is a meandering provider of enterprise analytics, and these days it's the CEO's commitment to Bitcoin on its balance sheet that is the real entree here.
The business itself of MicroStrategy will not impress you. It's a profitable platform, but it has seen its revenue decline for six consecutive quarters. Shrinking in a market that is actually growing is not a good sign. The silver lining at MicroStrategy is that founder CEO Michael Saylor has been investing the company's cash reserves in Bitcoin. MicroStrategy has spent $2.21 billion to acquire 91,326 Bitcoin tokens.
At the crypto's peak of nearly $65,000 two weeks ago, MicroStrategy's stake was valued at more than $5.9 billion. At a recent price of $48,000 as of early Sunday evening, we're not at $4.4 billion. MicroStrategy commands an enterprise value of $6.5 billion, but it's not as if the fading analytics business was worth more than $2 billion before Saylor's obsession with Bitcoin.
I think Saylor is right about Bitcoin, but it's hard to get investors excited about near-term upside when the world's leading crypto is going the wrong way. MicroStrategy reports financial results after Thursday's market close, and it will be hard to get the market excited unless Bitcoin stages a huge rally in the next few days.
If you're looking for safe stocks, you aren't likely to find them in Coinbase, Six Flags, and MicroStrategy this week.
10 stocks we like better than MicroStrategy
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and MicroStrategy 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 February 24, 2021
Rick Munarriz owns shares of Bitcoin. The Motley Fool owns shares of and recommends Bitcoin and Six Flags. The Motley Fool recommends MicroStrategy. 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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I took a look at three stocks to avoid last week, predicting that Coinbase Global (NASDAQ: COIN), American Airlines (NASDAQ: AAL), and Travelzoo (NASDAQ: TZOO) would have a bad week. The leading cryptocurrencies were showing signs of weakness even before buzz about a big tax hike on capital gains for the country's wealthiest earners ate into the market's enthusiasm. The leading marketplace for all things crypto is facing stiff competition in the near future, and it will have to cut its trading commissions if it wants to remain the top dog.
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I took a look at three stocks to avoid last week, predicting that Coinbase Global (NASDAQ: COIN), American Airlines (NASDAQ: AAL), and Travelzoo (NASDAQ: TZOO) would have a bad week. This week, I see Coinbase Global, Six Flags Entertainment (NYSE: SIX), and MicroStrategy (NASDAQ: MSTR) as vulnerable investments in the near term. Coinbase Global Last week's crypto correction rocked Coinbase.
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I took a look at three stocks to avoid last week, predicting that Coinbase Global (NASDAQ: COIN), American Airlines (NASDAQ: AAL), and Travelzoo (NASDAQ: TZOO) would have a bad week. This week, I see Coinbase Global, Six Flags Entertainment (NYSE: SIX), and MicroStrategy (NASDAQ: MSTR) as vulnerable investments in the near term. If you're looking for safe stocks, you aren't likely to find them in Coinbase, Six Flags, and MicroStrategy this week.
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I took a look at three stocks to avoid last week, predicting that Coinbase Global (NASDAQ: COIN), American Airlines (NASDAQ: AAL), and Travelzoo (NASDAQ: TZOO) would have a bad week. It wasn't enough to impress the market. MicroStrategy commands an enterprise value of $6.5 billion, but it's not as if the fading analytics business was worth more than $2 billion before Saylor's obsession with Bitcoin.
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4505.0
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2021-04-26 00:00:00 UTC
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Pre-Market Most Active for Apr 26, 2021 : SEAH, MVIS, SQQQ, UXIN, AMC, AAPL, QQQ, NIO, SOS, AAL, SKLZ, RLX
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-apr-26-2021-%3A-seah-mvis-sqqq-uxin-amc-aapl-qqq-nio-sos-aal-sklz
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The NASDAQ 100 Pre-Market Indicator is down -12.52 to 13,928.92. The total Pre-Market volume is currently 16,089,071 shares traded.
The following are the most active stocks for the pre-market session:
Sports Entertainment Acquisition Corp. (SEAH) is +0.62 at $10.40, with 3,553,675 shares traded.
Microvision, Inc. (MVIS) is +2.47 at $20.44, with 2,943,612 shares traded.MVIS is scheduled to provide an earnings report on 4/29/2021, for the fiscal quarter ending Mar2021. The consensus earnings per share forecast is -0.02 per share, which represents a -4 percent increase over the EPS one Year Ago
ProShares UltraPro Short QQQ (SQQQ) is +0.05 at $10.82, with 1,075,894 shares traded. This represents a 2.66% increase from its 52 Week Low.
Uxin Limited (UXIN) is -0.13 at $2.02, with 823,506 shares traded., following a 52-week high recorded in prior regular session.
AMC Entertainment Holdings, Inc. (AMC) is +0.54 at $10.70, with 817,642 shares traded. AMC's current last sale is 267.5% of the target price of $4.
Apple Inc. (AAPL) is +0.16 at $134.48, with 746,294 shares traded.AAPL is scheduled to provide an earnings report on 4/28/2021, for the fiscal quarter ending Mar2021. The consensus earnings per share forecast is 0.99 per share, which represents a 64 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is -0.57 at $338.85, with 739,240 shares traded. This represents a 61.74% increase from its 52 Week Low.
NIO Inc. (NIO) is +0.85 at $41.93, with 737,130 shares traded.NIO is scheduled to provide an earnings report on 4/29/2021, for the fiscal quarter ending Mar2021.
SOS Limited (SOS) is +0.13 at $4.46, with 733,696 shares traded.
American Airlines Group, Inc. (AAL) is +0.43 at $21.54, with 717,322 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 $-2.41. AAL's current last sale is 153.86% of the target price of $14.
Skillz Inc. (SKLZ) is -0.06 at $18.11, with 387,747 shares traded. As reported by Zacks, the current mean recommendation for SKLZ is in the "buy range".
RLX Technology Inc. (RLX) is +0.26 at $12.38, with 344,975 shares traded. As reported by Zacks, the current mean recommendation for RLX is in the "strong 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 +0.43 at $21.54, with 717,322 shares traded. AAL's current last sale is 153.86% of the target price of $14. Microvision, Inc. (MVIS) is +2.47 at $20.44, with 2,943,612 shares traded.MVIS is scheduled to provide an earnings report on 4/29/2021, for the fiscal quarter ending Mar2021.
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American Airlines Group, Inc. (AAL) is +0.43 at $21.54, with 717,322 shares traded. AAL's current last sale is 153.86% of the target price of $14. The consensus earnings per share forecast is -0.02 per share, which represents a -4 percent increase over the EPS one Year Ago
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American Airlines Group, Inc. (AAL) is +0.43 at $21.54, with 717,322 shares traded. AAL's current last sale is 153.86% of the target price of $14. The consensus earnings per share forecast is -0.02 per share, which represents a -4 percent increase over the EPS one Year Ago
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American Airlines Group, Inc. (AAL) is +0.43 at $21.54, with 717,322 shares traded. AAL's current last sale is 153.86% of the target price of $14. The NASDAQ 100 Pre-Market Indicator is down -12.52 to 13,928.92.
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4506.0
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2021-04-25 00:00:00 UTC
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JetBlue and American Airlines Add Routes as Alliance Faces Antitrust Scrutiny
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AAL
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https://www.nasdaq.com/articles/jetblue-and-american-airlines-add-routes-as-alliance-faces-antitrust-scrutiny-2021-04-25
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Last July, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) announced a wide-ranging partnership designed to improve their competitive positions in New York and Boston.
Over the past few months, the airlines have started to implement the first phase of this alliance. They have launched a codeshare agreement, begun ticket sales for dozens of new routes, and optimized their schedules on additional routes out of New York and Boston.
Last week, American and JetBlue rolled out the next phase of their alliance, again announcing dozens of new routes. With antitrust regulators at the Department of Justice taking a closer look at the airlines' plans to cooperate, the timing couldn't have been better.
Antitrust concerns resurface
The partnership between American Airlines and JetBlue Airways involves coordinating routes and schedules for flights to and from New York and Boston. Normally, this type of cooperation would violate antitrust law.
Image source: JetBlue Airways.
The airlines sought an exemption to the usual antitrust regulations on the grounds that teaming up would make them a better counterweight to United Airlines and especially Delta Air Lines in the Northeast. They promised to significantly increase capacity in New York -- and, to a lesser extent, Boston -- while also divesting some takeoff and landing slots to enable new competition.
Based on these commitments, the U.S. Department of Transportation gave its blessing to the partnership in January. However, antitrust regulators at the Department of Justice remain worried that letting the two airlines cooperate could lead to higher fares and worse service in New York and Boston. The DOJ's investigation has become more active in recent months, and antitrust regulators there may raise objections to the alliance, according to a recent report by The Wall Street Journal.
Time to announce more growth
To the extent that the DOJ's antitrust division remains skeptical of the American Airlines-JetBlue alliance, both airlines have an incentive to demonstrate the partnership's consumer benefits. Last week, they did just that, announcing another -- even more ambitious -- wave of growth.
JetBlue stated that it will add seven new cities to its route network between now and next summer. It will fly from both New York's JFK International Airport and Boston to Kansas City, Milwaukee, and San Antonio. It will also launch year-round flights from JFK to Puerto Vallarta, Mexico and San Pedro Sula, Honduras, along with seasonal service to Asheville, North Carolina and Vancouver.
Image source: JetBlue Airways.
Meanwhile, JetBlue plans to add six new routes out of New York's LaGuardia Airport (mainly targeting the Southeast), while offering more frequent service on several existing routes. Between these moves and various new routes announced in February, JetBlue will operate more than 50 daily departures at LaGuardia by next summer: up from just 18 in 2019.
As for American Airlines, the full-service airline will begin flying from JFK to Delhi later this year. That will complement new routes from JFK to Athens, Tel Aviv, and several destinations in South America that it announced previously. American will also launch flights from Boston to Cincinnati, St. Louis, and Toronto: key business markets that JetBlue does not serve. Finally, the carrier plans to begin flying from LaGuardia to Houston, Oklahoma City, and Omaha.
Demonstrating the alliance's benefits
The latest round of new route additions will give American Airlines and JetBlue firepower to counter the DOJ's antitrust probe. In particular, JetBlue's new routes from JFK and LaGuardia rely on using underutilized slots held by American Airlines. American's new international routes also depend on getting connecting traffic from JetBlue.
Image source: American Airlines.
To be fair, American Airlines will have to operate fewer flights from New York to certain cities in order to free up enough slots for JetBlue. While American and JetBlue aren't allowed to coordinate pricing, fares could potentially rise in those markets due to lower capacity levels.
However, American Airlines used cramped, single-class 44- and 50-seat jets on most of the flights it plans to eliminate. By contrast, most of the new flights will use mainline jets with more than 150 seats. On a net basis, the two partners will grow significantly in New York and Boston -- driving down fares, all else equal -- while operating more customer-friendly aircraft.
American and JetBlue have planned to grow in New York and Boston all along. The threat of tougher antitrust scrutiny probably didn't change their long-term plans. However, it may have encouraged them to announce their growth initiatives quickly: After all, some of the new routes announced last week won't start up for more than a year. From what we know now, the new alliance between American Airlines and JetBlue looks like it will provide important consumer benefits while also helping both airlines.
10 stocks we like better than JetBlue Airways
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 JetBlue Airways wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Adam Levine-Weinberg owns shares of Delta Air Lines and JetBlue Airways and is long January 2022 $10.0 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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Last July, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) announced a wide-ranging partnership designed to improve their competitive positions in New York and Boston. Time to announce more growth To the extent that the DOJ's antitrust division remains skeptical of the American Airlines-JetBlue alliance, both airlines have an incentive to demonstrate the partnership's consumer benefits. It will also launch year-round flights from JFK to Puerto Vallarta, Mexico and San Pedro Sula, Honduras, along with seasonal service to Asheville, North Carolina and Vancouver.
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Last July, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) announced a wide-ranging partnership designed to improve their competitive positions in New York and Boston. Antitrust concerns resurface The partnership between American Airlines and JetBlue Airways involves coordinating routes and schedules for flights to and from New York and Boston. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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Last July, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) announced a wide-ranging partnership designed to improve their competitive positions in New York and Boston. Antitrust concerns resurface The partnership between American Airlines and JetBlue Airways involves coordinating routes and schedules for flights to and from New York and Boston. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Adam Levine-Weinberg owns shares of Delta Air Lines and JetBlue Airways and is long January 2022 $10.0 calls on JetBlue Airways.
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Last July, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) announced a wide-ranging partnership designed to improve their competitive positions in New York and Boston. Antitrust concerns resurface The partnership between American Airlines and JetBlue Airways involves coordinating routes and schedules for flights to and from New York and Boston. It will fly from both New York's JFK International Airport and Boston to Kansas City, Milwaukee, and San Antonio.
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4507.0
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2021-04-23 00:00:00 UTC
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JetBlue Expanding To New York And Chicago As Part of American Airlines Alliance
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AAL
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https://www.nasdaq.com/articles/jetblue-expanding-to-new-york-and-chicago-as-part-of-american-airlines-alliance-2021-04-23
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JetBlue plans to bring its everyday low fares services to New York and Boston. The Northeast Alliance, approved by the Transportation Department, offers JetBlue an opportunity to access airports that it has been locked out of for years. Head of revenue and planning at JetBlue (JBLU), Scott Laurence, expects the expansion to allow the airline to connect with a much larger customer base and international network. As part of its Northeast Alliance with American Airlines (AAL), JetBlue will triple its flights to LaGuardia and introduce 40 additional codeshare routes. JetBlue has already confirmed plans to add seven new destinations to its route map this year and next. Some of the destinations the airline will target include the Midwest, Southern US, and Central America. Laurence said, “We can’t wait to shake up the status quo in these markets currently dominated by high-fare carriers, and we look forward to introducing new customers to JetBlue favorites like live seatback TV, free Wi-Fi, the most legroom in coach and great service from our friendly Crewmembers.” The company’s venture capital subsidiary, JetBlue Technology Ventures, has completed an investment in Universal Hydrogen, a company fueling carbon-free flights. The investment will allow Universal Hydrogen to accelerate the development of its hydrogen logistics network and bolster its commercial activities. The investment is aligned with JetBlue's environmental objectives. It should also allow the airline to play a role in the fast-growing hydrogen for aviation sector. (See JetBlue stock analysis on TipRanks) Raymond James analyst Savanthi Syth has already noted the potential impact of JetBlue’s strategic partnership with American Airlines. Likewise, the analyst has upgraded the stock to Outperform with a $24 price target, implying 20.9% upside potential to current levels. “Investor sentiment and earnings momentum are likely to be favorable for JetBlue due to the pent-up demand for leisure/VFR travel as pandemic-related restrictions are lifted. Moreover, the potential for normalized margin expansion exists if JetBlue were to execute on just a few of the identified earnings levers, including (1) the Northeast alliance with American […],” Syth wrote in a research note to investors. Wall Street is cautiously optimistic about JetBlue's prospects going by the Moderate Buy consensus rating based on 7 Buys and 3 Holds. The average analyst price target of $23.60 implies an 18.89% upside potential to current levels. JBLU scores an 8 out of 10 on TipRanks’ Smart Score rating system, implying it could outperform market expectations. Related News Apple’s Mobile Advertising Ambitions Could Hurt Facebook – Report Twitter Trials ‘Professional Profiles’ For Businesses – Report Amazon One Expands To Seven Whole Foods Markets In Seattle
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As part of its Northeast Alliance with American Airlines (AAL), JetBlue will triple its flights to LaGuardia and introduce 40 additional codeshare routes. Head of revenue and planning at JetBlue (JBLU), Scott Laurence, expects the expansion to allow the airline to connect with a much larger customer base and international network. Laurence said, “We can’t wait to shake up the status quo in these markets currently dominated by high-fare carriers, and we look forward to introducing new customers to JetBlue favorites like live seatback TV, free Wi-Fi, the most legroom in coach and great service from our friendly Crewmembers.” The company’s venture capital subsidiary, JetBlue Technology Ventures, has completed an investment in Universal Hydrogen, a company fueling carbon-free flights.
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As part of its Northeast Alliance with American Airlines (AAL), JetBlue will triple its flights to LaGuardia and introduce 40 additional codeshare routes. Likewise, the analyst has upgraded the stock to Outperform with a $24 price target, implying 20.9% upside potential to current levels. The average analyst price target of $23.60 implies an 18.89% upside potential to current levels.
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As part of its Northeast Alliance with American Airlines (AAL), JetBlue will triple its flights to LaGuardia and introduce 40 additional codeshare routes. Laurence said, “We can’t wait to shake up the status quo in these markets currently dominated by high-fare carriers, and we look forward to introducing new customers to JetBlue favorites like live seatback TV, free Wi-Fi, the most legroom in coach and great service from our friendly Crewmembers.” The company’s venture capital subsidiary, JetBlue Technology Ventures, has completed an investment in Universal Hydrogen, a company fueling carbon-free flights. (See JetBlue stock analysis on TipRanks) Raymond James analyst Savanthi Syth has already noted the potential impact of JetBlue’s strategic partnership with American Airlines.
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As part of its Northeast Alliance with American Airlines (AAL), JetBlue will triple its flights to LaGuardia and introduce 40 additional codeshare routes. The investment will allow Universal Hydrogen to accelerate the development of its hydrogen logistics network and bolster its commercial activities. Likewise, the analyst has upgraded the stock to Outperform with a $24 price target, implying 20.9% upside potential to current levels.
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4508.0
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2021-04-23 00:00:00 UTC
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American Airlines Earnings: High Costs Mar Revenue Recovery
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AAL
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https://www.nasdaq.com/articles/american-airlines-earnings%3A-high-costs-mar-revenue-recovery-2021-04-23
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Air travel demand is starting to rebound as the COVID-19 pandemic eases. American Airlines (NASDAQ: AAL) is implementing an aggressive recovery plan to tap into that demand.
On the surface, this plan might seem to be working. On Thursday, American reported stronger revenue results for the first quarter than its full-service airline peers Delta Air Lines (NYSE: DAL) and United Airlines (NASDAQ: UAL). However, this outperformance on revenue isn't translating to better earnings or cash flow results -- the things that really matter. This suggests that American Airlines' cost structure remains uncompetitive.
American Airlines prioritizes revenue
In conjunction with American's first-quarter earnings release, management noted that the carrier has reported much stronger passenger unit revenue than Delta and United for three straight quarters. Its total revenue has also been significantly higher. Last quarter, American Airlines generated $4 billion of revenue, compared to $3.6 billion for Delta (excluding its refinery) and $3.2 billion for United.
Image source: American Airlines.
Furthermore, demand has improved dramatically since late February, with net bookings nearly equaling 2018-2019 levels for the past several weeks. American Airlines is rebuilding its schedule much faster than its peers in order to cater to this demand.
In fact, the carrier only plans to operate 20% to 25% less capacity this quarter than it offered in the second quarter of 2019. (It's planning an even more aggressive schedule for the summer.) By contrast, Delta Air Lines expects to reduce capacity by 32% this quarter, compared to Q2 2019. United Airlines plans to take an even more conservative approach, with capacity down by about 45% from two years ago.
As a result, American expects to generate far more revenue than its peers this quarter, whereas the three big network carriers were fairly similar in size two years ago.
AIRLINE
Q2 2019 REVENUE
PROJECTED Q2 2021 REVENUE
American Airlines
$12 billion
$7.2 billion
Delta Air Lines
$12.5 billion
$5.6 billion to $6.2 billion
United Airlines
$11.4 billion
$5 billion
Data source: American Airlines, Delta Air Lines, and United Airlines earnings reports and forward guidance. Delta's revenue is adjusted to exclude its refinery business. Table by author.
Profitability still lags
Despite its stronger revenue results, American Airlines has consistently posted bigger losses and higher cash burn than Delta and United over the past year.
This underperformance continued last quarter. American Airlines rang up a $3.5 billion adjusted pre-tax loss. On the same basis, United Airlines lost $3.1 billion and Delta Air Lines lost $2.9 billion. Meanwhile, American's average daily cash burn of $18 million (excluding severance costs and debt principal payments) was roughly double the cash burn reported by its peers.
Looking ahead to the second quarter, American Airlines says it expects to record an adjusted pre-tax margin between -27% and -30%. Combined with its revenue guidance, this implies an adjusted pre-tax loss of right around $2 billion. That's similar to United's earnings outlook but substantially worse than Delta's projected adjusted pre-tax loss of $1 billion to $1.5 billion.
Matching United's pre-tax loss this quarter would not be much of an achievement. In 2019, American Airlines generated over 85% of its revenue in the U.S. and Latin America -- the two regions where travel demand is recovering fastest. Just 71% of United's revenue came from those regions. American ought to be outperforming its rivals on profitability thanks to its favorable geographic focus, but it isn't doing so.
Image source: United Airlines.
Costs still aren't under control
American Airlines has implemented meaningful cost cuts over the past year. It has made big cuts to its management workforce, boosted employee productivity, and simplified its fleet (among other things). It is also adding seats to many of its narrow-body jets to reduce unit costs.
However, the competition isn't standing still. Delta Air Lines and United Airlines have also identified billions of dollars of potential savings. Given that American has been generating higher unit revenue than its rivals due to its lower exposure to long-haul international routes, uncompetitive costs must be driving its persistent underperformance on earnings and cash flow.
Management appears to be either unable or unwilling to get costs in line with the company's rivals. As long as that remains true, American Airlines stock is likely to remain a chronic underperformer.
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 February 24, 2021
Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ: AAL) is implementing an aggressive recovery plan to tap into that demand. As a result, American expects to generate far more revenue than its peers this quarter, whereas the three big network carriers were fairly similar in size two years ago. Profitability still lags Despite its stronger revenue results, American Airlines has consistently posted bigger losses and higher cash burn than Delta and United over the past year.
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American Airlines (NASDAQ: AAL) is implementing an aggressive recovery plan to tap into that demand. On Thursday, American reported stronger revenue results for the first quarter than its full-service airline peers Delta Air Lines (NYSE: DAL) and United Airlines (NASDAQ: UAL). Last quarter, American Airlines generated $4 billion of revenue, compared to $3.6 billion for Delta (excluding its refinery) and $3.2 billion for United.
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American Airlines (NASDAQ: AAL) is implementing an aggressive recovery plan to tap into that demand. American Airlines prioritizes revenue In conjunction with American's first-quarter earnings release, management noted that the carrier has reported much stronger passenger unit revenue than Delta and United for three straight quarters. Last quarter, American Airlines generated $4 billion of revenue, compared to $3.6 billion for Delta (excluding its refinery) and $3.2 billion for United.
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American Airlines (NASDAQ: AAL) is implementing an aggressive recovery plan to tap into that demand. Last quarter, American Airlines generated $4 billion of revenue, compared to $3.6 billion for Delta (excluding its refinery) and $3.2 billion for United. American Airlines $12 billion $7.2 billion Delta Air Lines $12.5 billion $5.6 billion to $6.2 billion United Airlines $11.4 billion $5 billion Data source: American Airlines, Delta Air Lines, and United Airlines earnings reports and forward guidance.
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4509.0
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2021-04-23 00:00:00 UTC
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Anglo American workers 'fuming' about restart of coal mine after blast -union
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AAL
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https://www.nasdaq.com/articles/anglo-american-workers-fuming-about-restart-of-coal-mine-after-blast-union-2021-04-23
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Adds safety regulator comment; paragraphs 12,13
MELBOURNE, April 23 (Reuters) - Anglo American Plc AAL.L has not kept workers fully informed of plans to restart a coal mine in Queensland nearly a year after a blast injured five people, a union official said on Friday, but the company called the comments unfounded.
The miner re-opened its Grosvenor coal mine after securing regulatory approval on Thursday, and has begun a staged restart, Anglo said. The mine was shut after the explosion last May, the company's second incident in 15 months in the area.
"The workforce has said loud and clear that they want their union safety inspectors kept informed about re-entry plans," Stephen Smyth, the Queensland president of CFMEU Mining and Energy, said in a statement.
"Yet our industry safety and health representatives were not given any notice or information about the re-entry. This has left workers fuming."
In a statement, Anglo American said Smyth's comments were unfounded, adding that union representatives were part of the restart team and the key representative was notified and invited to the site.
"We have kept our workforce closely informed as we have worked through re-entry planning over the past few months, however, until the directive was lifted by the regulator, re-entry could not have proceeded," it said.
Workers have also raised concerns about a one-on-one interview process ahead of the restart that quizzed them about their mental health and ability to work safely underground, Smyth said in the union's statement.
"To put these labour hire workers on the spot, making them fear they’ll be targeted or lose their job, creates unnecessary stress and lack of trust," he said.
"We all want Grosvenor mine to re-open safely. Again, I’m urging the Anglo leadership ... to listen to the reasonable concerns of its workforce and build trust, not breach it."
The findings of an inquiry into the incident are set to be handed to the state government at the end of May.
Mine safety inspectors will visit this week after Anglo remotely sealed off the area of the explosion.
"Restricted re-entry can now be undertaken at an acceptable level of risk," Resources Safety and Health Queensland said in a statement.
But Anglo will not be able to restart until the mine is able to further demonstrate to the inspectorate that the safety and health management system "provides for suitable controls" to prevent a recurrence of the May incident, it added.
The mine produced 4.7 million tonnes of metallurgical or steel-making coal in 2019.
(Reporting by Melanie Burton; Editing by Tom Hogue and Clarence Fernandez)
((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 safety regulator comment; paragraphs 12,13 MELBOURNE, April 23 (Reuters) - Anglo American Plc AAL.L has not kept workers fully informed of plans to restart a coal mine in Queensland nearly a year after a blast injured five people, a union official said on Friday, but the company called the comments unfounded. "The workforce has said loud and clear that they want their union safety inspectors kept informed about re-entry plans," Stephen Smyth, the Queensland president of CFMEU Mining and Energy, said in a statement. Workers have also raised concerns about a one-on-one interview process ahead of the restart that quizzed them about their mental health and ability to work safely underground, Smyth said in the union's statement.
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Adds safety regulator comment; paragraphs 12,13 MELBOURNE, April 23 (Reuters) - Anglo American Plc AAL.L has not kept workers fully informed of plans to restart a coal mine in Queensland nearly a year after a blast injured five people, a union official said on Friday, but the company called the comments unfounded. "The workforce has said loud and clear that they want their union safety inspectors kept informed about re-entry plans," Stephen Smyth, the Queensland president of CFMEU Mining and Energy, said in a statement. In a statement, Anglo American said Smyth's comments were unfounded, adding that union representatives were part of the restart team and the key representative was notified and invited to the site.
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Adds safety regulator comment; paragraphs 12,13 MELBOURNE, April 23 (Reuters) - Anglo American Plc AAL.L has not kept workers fully informed of plans to restart a coal mine in Queensland nearly a year after a blast injured five people, a union official said on Friday, but the company called the comments unfounded. "The workforce has said loud and clear that they want their union safety inspectors kept informed about re-entry plans," Stephen Smyth, the Queensland president of CFMEU Mining and Energy, said in a statement. But Anglo will not be able to restart until the mine is able to further demonstrate to the inspectorate that the safety and health management system "provides for suitable controls" to prevent a recurrence of the May incident, it added.
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Adds safety regulator comment; paragraphs 12,13 MELBOURNE, April 23 (Reuters) - Anglo American Plc AAL.L has not kept workers fully informed of plans to restart a coal mine in Queensland nearly a year after a blast injured five people, a union official said on Friday, but the company called the comments unfounded. "The workforce has said loud and clear that they want their union safety inspectors kept informed about re-entry plans," Stephen Smyth, the Queensland president of CFMEU Mining and Energy, said in a statement. "We have kept our workforce closely informed as we have worked through re-entry planning over the past few months, however, until the directive was lifted by the regulator, re-entry could not have proceeded," it said.
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4510.0
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2021-04-23 00:00:00 UTC
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Pre-Market Most Active for Apr 23, 2021 : SYPR, INO, NIO, SKLZ, BP, SQQQ, SOS, SIRI, AAL, NKLA, SNAP, PLTR
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-apr-23-2021-%3A-sypr-ino-nio-sklz-bp-sqqq-sos-siri-aal-nkla-snap
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The NASDAQ 100 Pre-Market Indicator is up 30.13 to 13,792.49. The total Pre-Market volume is currently 15,158,307 shares traded.
The following are the most active stocks for the pre-market session:
Sypris Solutions, Inc. (SYPR) is +0.93 at $3.74, with 2,836,940 shares traded.
Inovio Pharmaceuticals, Inc. (INO) is -2.63 at $6.50, with 2,734,878 shares traded. As reported in the last short interest update the days to cover for INO is 8.825184; this calculation is based on the average trading volume of the stock.
NIO Inc. (NIO) is +0.34 at $39.91, with 1,687,438 shares traded.NIO is scheduled to provide an earnings report on 4/29/2021, for the fiscal quarter ending Mar2021.
Skillz Inc. (SKLZ) is +1.21 at $17.78, with 1,558,862 shares traded. As reported by Zacks, the current mean recommendation for SKLZ is in the "buy range".
BP p.l.c. (BP) is +0.04 at $24.38, with 1,051,052 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 $0.54. BP is scheduled to provide an earnings report on 4/27/2021, for the fiscal quarter ending Mar2021. The consensus earnings per share forecast is 0.43 per share, which represents a 24 percent increase over the EPS one Year Ago
ProShares UltraPro Short QQQ (SQQQ) is -0.04 at $11.15, with 837,664 shares traded. This represents a 5.79% increase from its 52 Week Low.
SOS Limited (SOS) is -0.11 at $4.03, with 779,440 shares traded.
Sirius XM Holdings Inc. (SIRI) is unchanged at $6.30, with 508,870 shares traded.SIRI is scheduled to provide an earnings report on 4/28/2021, for the fiscal quarter ending Mar2021. The consensus earnings per share forecast is 0.06 per share, which represents a 7 percent increase over the EPS one Year Ago
American Airlines Group, Inc. (AAL) is +0.18 at $20.25, with 505,816 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $-1.24. AAL's current last sale is 144.64% of the target price of $14.
Nikola Corporation (NKLA) is +0.66 at $12.43, with 472,950 shares traded. NKLA's current last sale is 44.39% of the target price of $28.
Snap Inc. (SNAP) is +2.67 at $59.72, with 306,168 shares traded. As reported by Zacks, the current mean recommendation for SNAP is in the "buy range".
Palantir Technologies Inc. (PLTR) is +0.0201 at $22.88, with 266,692 shares traded. PLTR's current last sale is 152.53% of the target price of $15.
The views and 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 +0.18 at $20.25, with 505,816 shares traded. AAL's current last sale is 144.64% of the target price of $14. As reported in the last short interest update the days to cover for INO is 8.825184; this calculation is based on the average trading volume of the stock.
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American Airlines Group, Inc. (AAL) is +0.18 at $20.25, with 505,816 shares traded. AAL's current last sale is 144.64% of the target price of $14. NIO Inc. (NIO) is +0.34 at $39.91, with 1,687,438 shares traded.NIO is scheduled to provide an earnings report on 4/29/2021, for the fiscal quarter ending Mar2021.
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American Airlines Group, Inc. (AAL) is +0.18 at $20.25, with 505,816 shares traded. AAL's current last sale is 144.64% of the target price of $14. NIO Inc. (NIO) is +0.34 at $39.91, with 1,687,438 shares traded.NIO is scheduled to provide an earnings report on 4/29/2021, for the fiscal quarter ending Mar2021.
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American Airlines Group, Inc. (AAL) is +0.18 at $20.25, with 505,816 shares traded. AAL's current last sale is 144.64% of the target price of $14. (BP) is +0.04 at $24.38, with 1,051,052 shares traded.
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4511.0
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2021-04-23 00:00:00 UTC
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Why American Airlines Stock Is Higher Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-stock-is-higher-today-2021-04-23
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nan
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What happened
Shares of American Airlines Group (NASDAQ: AAL) climbed nearly 5% higher on Friday after a Wall Street analyst took the stock out of the penalty box. The last 12 months have been tough for American and other airlines, but it appears the company is finally on the mend.
So what
American and other airlines have struggled to fly through the pandemic, with the entire industry sliding into the red in 2020 due to a lack of travel demand. But as vaccine counts rise, there is optimism that travelers are returning, and investors since last fall have been warming to the sector.
Image source: American Airlines.
American earlier in the week reported a first-quarter loss but said it is implementing an aggressive recovery plan to tap into expected demand. Equally important is the airline's claim that after loading up its balance sheet with significant debt in 2020 to survive the crisis, it has no further plans to raise liquidity and intends to use future cash flow to reduce its debt total.
Raymond James analyst Savanthi Syth on Friday upgraded the stock to market perform from underperform. Syth said in a research report that the recent sell-off in the shares provides a more balanced risk/reward profile. The analyst added that she is encouraged by American's efforts to improve profitability.
According to Syth, a domestic recovery, coupled with continued government funds and potential pension relief, has lowered the risks confronting American since she downgraded the stock back in November.
Now what
American is recovering, and I tend to agree with Syth that the downside from here is limited. A year ago, serious questions were being asked about the airline's ability to survive the crisis. Now, the most pressing issue is how quickly it will be able to recover.
Still, that's a tough question to answer. American appears ready to aggressively chase any and all passengers looking to fly this summer, running the risk of prioritizing revenue over profitability. Unfortunately, a lot of those efforts to improve profitability Syth mentioned are still in their early stages, and there are other airlines, including Spirit Airlines, that are better positioned to win fare wars.
American is a survivor, but it might be a while before the airline is an outperformer. I'd advise caution on the shares until the airline gets closer to hitting its profitability goals.
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 February 24, 2021
Lou Whiteman owns shares of Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of American Airlines Group (NASDAQ: AAL) climbed nearly 5% higher on Friday after a Wall Street analyst took the stock out of the penalty box. So what American and other airlines have struggled to fly through the pandemic, with the entire industry sliding into the red in 2020 due to a lack of travel demand. According to Syth, a domestic recovery, coupled with continued government funds and potential pension relief, has lowered the risks confronting American since she downgraded the stock back in November.
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What happened Shares of American Airlines Group (NASDAQ: AAL) climbed nearly 5% higher on Friday after a Wall Street analyst took the stock out of the penalty box. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines.
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What happened Shares of American Airlines Group (NASDAQ: AAL) climbed nearly 5% higher on Friday after a Wall Street analyst took the stock out of the penalty box. 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 February 24, 2021 Lou Whiteman owns shares of Spirit Airlines.
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What happened Shares of American Airlines Group (NASDAQ: AAL) climbed nearly 5% higher on Friday after a Wall Street analyst took the stock out of the penalty box. The last 12 months have been tough for American and other airlines, but it appears the company is finally on the mend. 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.
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4512.0
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2021-04-22 00:00:00 UTC
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US STOCKS-S&P 500, Dow edge lower as COVID-19 cases rise, home sales drop
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AAL
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https://www.nasdaq.com/articles/us-stocks-sp-500-dow-edge-lower-as-covid-19-cases-rise-home-sales-drop-2021-04-22
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By Shivani Kumaresan and Shreyashi Sanyal
April 22 (Reuters) - The S&P 500 and Dow Jones indexes edged lower on Thursday as a resurgence of COVID-19 cases globally sapped appetite for stocks, with data showing tepid U.S. home sales adding to the grim mood.
Investor sentiment dulled in the first half hour of trading, with eight of the 11 major S&P 500 sectors in the red.
American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported a smaller-than-expected quarterly loss, signaling a revival in travel demand. The performance of their shares was mixed though, with Southwest rising 0.5% and American Airlines falling 0.4%.
"Even with better-than-expected results from airlines this morning, at these elevated valuation levels, the market may have some agita digesting the cross currents from negative virus headlines," said Cliff Hodge, chief investment officer for Cornerstone Wealth.
"As we get closer to the slower season, investors should start thinking about taking some risk off the table if they have not done so already."
Shares of AT&T Inc T.N jumped 5.2% after the company's wireless subscriber additions trounced analysts' estimates.
Data showed existing home sales dropped 3.7% to a seasonally adjusted annual rate of 6.01 million units last month, the lowest level since August 2020, pulled down by an acute shortage of properties, which is boosting prices and making owning a house more expensive for some first-time buyers.
Speedy vaccination rollouts in the United States has improved the pace of economic recovery, infused confidence among people and given a solid start to the first-quarter earnings season.
However, a surge in COVID-19 cases in India and elsewhere in Asia is weighing on sentiment.
A Labor Department report showed initial claims for state unemployment benefits totaled 547,000 for the week ended April 17 compared to 586,000 in the prior week. The data suggested layoffs were subsiding and strengthened expectations for another month of blockbuster job growth in April.
At 10:28 a.m. ET the Dow Jones Industrial Average .DJI was down 150.19 points, or 0.44%, at 33,987.12, the S&P 500 .SPX was down 7.42 points, or 0.18%, at 4,166.00 and the Nasdaq Composite .IXIC was up 10.43 points, or 0.07%, at 13,960.65.
Chipmaker Intel Corp INTC.O is expected to post a drop in first-quarter revenue later in the day, with analysts looking forward to updates on its U.S. manufacturing plants and chips for automakers amid a global microchip supply shortage. Its shares fell 1%.
Declining issues outnumbered advancers for a 1.06-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.38-to-1 ratio on the Nasdaq.
The S&P index recorded 58 new 52-week highs and no new low, while the Nasdaq recorded 54 new highs and 6 new lows.
(Reporting by Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
The views and 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 and Southwest Airlines Co LUV.N reported a smaller-than-expected quarterly loss, signaling a revival in travel demand. By Shivani Kumaresan and Shreyashi Sanyal April 22 (Reuters) - The S&P 500 and Dow Jones indexes edged lower on Thursday as a resurgence of COVID-19 cases globally sapped appetite for stocks, with data showing tepid U.S. home sales adding to the grim mood. "Even with better-than-expected results from airlines this morning, at these elevated valuation levels, the market may have some agita digesting the cross currents from negative virus headlines," said Cliff Hodge, chief investment officer for Cornerstone Wealth.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported a smaller-than-expected quarterly loss, signaling a revival in travel demand. By Shivani Kumaresan and Shreyashi Sanyal April 22 (Reuters) - The S&P 500 and Dow Jones indexes edged lower on Thursday as a resurgence of COVID-19 cases globally sapped appetite for stocks, with data showing tepid U.S. home sales adding to the grim mood. Data showed existing home sales dropped 3.7% to a seasonally adjusted annual rate of 6.01 million units last month, the lowest level since August 2020, pulled down by an acute shortage of properties, which is boosting prices and making owning a house more expensive for some first-time buyers.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported a smaller-than-expected quarterly loss, signaling a revival in travel demand. By Shivani Kumaresan and Shreyashi Sanyal April 22 (Reuters) - The S&P 500 and Dow Jones indexes edged lower on Thursday as a resurgence of COVID-19 cases globally sapped appetite for stocks, with data showing tepid U.S. home sales adding to the grim mood. Data showed existing home sales dropped 3.7% to a seasonally adjusted annual rate of 6.01 million units last month, the lowest level since August 2020, pulled down by an acute shortage of properties, which is boosting prices and making owning a house more expensive for some first-time buyers.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported a smaller-than-expected quarterly loss, signaling a revival in travel demand. By Shivani Kumaresan and Shreyashi Sanyal April 22 (Reuters) - The S&P 500 and Dow Jones indexes edged lower on Thursday as a resurgence of COVID-19 cases globally sapped appetite for stocks, with data showing tepid U.S. home sales adding to the grim mood. The performance of their shares was mixed though, with Southwest rising 0.5% and American Airlines falling 0.4%.
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4513.0
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2021-04-22 00:00:00 UTC
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Vaccines put U.S. airlines on runway to recovery
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AAL
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https://www.nasdaq.com/articles/vaccines-put-u.s.-airlines-on-runway-to-recovery-2021-04-22-0
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By Sanjana Shivdas and Ankit Ajmera
April 22 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday signaled slower cash burn and pointed to a rebound in summer bookings as accelerated COVID-19 vaccinations make more people confident about traveling again.
After nearly a year in the doldrums due to the pandemic, airlines are seeing light at the end of the tunnel with over 50% of the U.S. population having received one dose of the vaccine.
"March was clearly a significant improvement over January and February and guidance is for continued improvement into the June quarter and the summer beyond it," Cowen and Co analyst Helane Becker said.
Southwest forecast second-quarter average daily core cash burn between $2 million and $4 million, compared with about $13 million per day in the prior quarter.
American said average daily cash burn slowed to $4 million in March, while its overall average daily cash burn rate was about $27 million in the first quarter.
Southwest said it expects second-quarter capacity to rise about 90% from a year earlier, while American sees capacity to be down between 20% and 25% compared with 2019, slowing from a 35% fall in the previous quarter.
Southwest shares rose 1.7%, while American Airlines stock was marginally down.
American has a bigger exposure to international travel, which is not expected to rebound soon as most borders remained closed, analysts have said.
"I know (the Biden administration) understands the importance of restoring international travel to the economy," American Airlines CEO Doug Parker said.
"We all need to go look at this in a risk-based way. No one wants to rush for certain, and no one's pushing that either."
Southwest is recalling some furloughed pilots and flight attendants, while American plans to do it later this year to prepare for 2022.
Meanwhile, operating revenue at the companies fell more than 50%, slower than the about 65% fall in the fourth quarter.
Alaska Air Group ALK.N also forecast improving cash flow from operations after reporting a smaller-than-expected loss.
(Reporting by Sanjana Shivdas and Ankit Ajmera in Bengaluru; Editing by Sriraj Kalluvila)
((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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By Sanjana Shivdas and Ankit Ajmera April 22 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday signaled slower cash burn and pointed to a rebound in summer bookings as accelerated COVID-19 vaccinations make more people confident about traveling again. After nearly a year in the doldrums due to the pandemic, airlines are seeing light at the end of the tunnel with over 50% of the U.S. population having received one dose of the vaccine. American has a bigger exposure to international travel, which is not expected to rebound soon as most borders remained closed, analysts have said.
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By Sanjana Shivdas and Ankit Ajmera April 22 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday signaled slower cash burn and pointed to a rebound in summer bookings as accelerated COVID-19 vaccinations make more people confident about traveling again. Southwest forecast second-quarter average daily core cash burn between $2 million and $4 million, compared with about $13 million per day in the prior quarter. American said average daily cash burn slowed to $4 million in March, while its overall average daily cash burn rate was about $27 million in the first quarter.
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By Sanjana Shivdas and Ankit Ajmera April 22 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday signaled slower cash burn and pointed to a rebound in summer bookings as accelerated COVID-19 vaccinations make more people confident about traveling again. Southwest forecast second-quarter average daily core cash burn between $2 million and $4 million, compared with about $13 million per day in the prior quarter. American said average daily cash burn slowed to $4 million in March, while its overall average daily cash burn rate was about $27 million in the first quarter.
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By Sanjana Shivdas and Ankit Ajmera April 22 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday signaled slower cash burn and pointed to a rebound in summer bookings as accelerated COVID-19 vaccinations make more people confident about traveling again. After nearly a year in the doldrums due to the pandemic, airlines are seeing light at the end of the tunnel with over 50% of the U.S. population having received one dose of the vaccine. Southwest forecast second-quarter average daily core cash burn between $2 million and $4 million, compared with about $13 million per day in the prior quarter.
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4514.0
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2021-04-22 00:00:00 UTC
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Anglo American workers 'fuming' about coal mine restart after blast -union
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AAL
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https://www.nasdaq.com/articles/anglo-american-workers-fuming-about-coal-mine-restart-after-blast-union-2021-04-22
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MELBOURNE, April 23 (Reuters) - Anglo American Plc AAL.L has not kept its workers fully informed of its plans to restart an underground coal mine in Queensland following a blast that critically injured five people nearly a year ago, a union official said on Thursday.
The miner reopened its Grosvenor coal mine after gaining regulatory approval on Wednesday, and has begun a staged restart, Anglo said. The mine was shut after the explosion last May, the company's second incident in 15 months in the area.
"The workforce has said loud and clear that they want their union safety inspectors kept informed about re-entry plans,” said CFMEU Mining and Energy president for Queensland, Dean Smyth, in a statement.
“Yet our Industry Safety and Health Representatives were not given any notice or information about the re-entry. This has left workers fuming,” he said.
Anglo American in a statement said Smyth's comments were unfounded and that union representatives were part of the restart team and the key representative was notified and invited to the site.
“We have kept our workforce closely informed as we have worked through re-entry planning over the past few months, however until the directive was lifted by the regulator re-entry could not have proceeded,” the company said.
Workers have also raised concerns about a one-on-one interview process that took place ahead of the mine's restart, where they were quizzed about their mental health and ability to work safely underground, Smyth said in the union's statement.
"To put these labour hire workers on the spot, making them fear they’ll be targeted or lose their job, creates unnecessary stress and lack of trust," he said.
“We all want Grosvenor mine to re-open safely. Again, I’m urging the Anglo leadership ... to listen to the reasonable concerns of its workforce and build trust, not breach it.”
The Queensland state government is still investigating the May 2020 incident at the mine, which produced 4.7 million tonnes of metallurgical or steel-making coal in 2019.
(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, April 23 (Reuters) - Anglo American Plc AAL.L has not kept its workers fully informed of its plans to restart an underground coal mine in Queensland following a blast that critically injured five people nearly a year ago, a union official said on Thursday. Workers have also raised concerns about a one-on-one interview process that took place ahead of the mine's restart, where they were quizzed about their mental health and ability to work safely underground, Smyth said in the union's statement. Again, I’m urging the Anglo leadership ... to listen to the reasonable concerns of its workforce and build trust, not breach it.” The Queensland state government is still investigating the May 2020 incident at the mine, which produced 4.7 million tonnes of metallurgical or steel-making coal in 2019.
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MELBOURNE, April 23 (Reuters) - Anglo American Plc AAL.L has not kept its workers fully informed of its plans to restart an underground coal mine in Queensland following a blast that critically injured five people nearly a year ago, a union official said on Thursday. "The workforce has said loud and clear that they want their union safety inspectors kept informed about re-entry plans,” said CFMEU Mining and Energy president for Queensland, Dean Smyth, in a statement. Workers have also raised concerns about a one-on-one interview process that took place ahead of the mine's restart, where they were quizzed about their mental health and ability to work safely underground, Smyth said in the union's statement.
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MELBOURNE, April 23 (Reuters) - Anglo American Plc AAL.L has not kept its workers fully informed of its plans to restart an underground coal mine in Queensland following a blast that critically injured five people nearly a year ago, a union official said on Thursday. "The workforce has said loud and clear that they want their union safety inspectors kept informed about re-entry plans,” said CFMEU Mining and Energy president for Queensland, Dean Smyth, in a statement. Workers have also raised concerns about a one-on-one interview process that took place ahead of the mine's restart, where they were quizzed about their mental health and ability to work safely underground, Smyth said in the union's statement.
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MELBOURNE, April 23 (Reuters) - Anglo American Plc AAL.L has not kept its workers fully informed of its plans to restart an underground coal mine in Queensland following a blast that critically injured five people nearly a year ago, a union official said on Thursday. "The workforce has said loud and clear that they want their union safety inspectors kept informed about re-entry plans,” said CFMEU Mining and Energy president for Queensland, Dean Smyth, in a statement. “Yet our Industry Safety and Health Representatives were not given any notice or information about the re-entry.
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4515.0
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2021-04-22 00:00:00 UTC
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American Airlines Group (AAL) Q1 2021 Earnings Call Transcript
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-q1-2021-earnings-call-transcript-2021-04-22
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nan
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Image source: The Motley Fool.
American Airlines Group (NASDAQ: AAL)
Q1 2021 Earnings Call
Apr 22, 2021, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the American Airlines Group first-quarter 2021earnings conference call Today's conference call is being recorded. [Operator instructions] And I would now like to turn the conference over to your moderator, managing director of investor relations, Mr. Dan Cravens.
Dan Cravens -- Moderator, Managing Director of Investor Relations
Thanks, Crystal. And good morning, everyone, and welcome to the American Airlines Group first-quarter 2021earnings conference call Joining us on the call this morning, we have Doug Parker, chairman and CEO; Robert Isom, president; and Derek Kerr, chief financial officer. Also on the call for our question-and-answer session are several of our senior executives, including Maya Leibman, Steve Johnson, Vasu Raja, Alison Taylor and Devon May.
Like we normally do, Doug will start the call with an overview of our quarter and the actions we've taken during this pandemic. Robert will then follow with some remarks about our commercial and other strategic initiatives. After Robert's remarks, Derek will follow with the details on the quarter and our operating plans going forward. After Derek's comments, we'll open the call for analyst questions, and lastly, questions from the media.
10 stocks we like better than American Airlines Group
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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 February 24, 2021
[Operator instructions]. Before we begin, we must state that today's call does contain forward-looking statements, including statements concerning future revenues, costs, forecast, capacity, fleet plans and liquidity. These statements represent our predictions and expectations as to future events, but numerous risks and uncertainties could cause actual results to differ from those projected. Information about some of these risks and uncertainties can be found in our earnings press release issued this morning and our Form 10-Q for the quarter ended March 31, 2021.
In addition, we will be discussing certain non-GAAP financial measures this morning, which exclude the impact of unusual items. A reconciliation to those numbers to the GAAP financials is included in the earnings release, and that can be found on the investor relations section of our website. A webcast of this call will also be archived on our website, and the information that we're giving you on the call is as of today's date, and we undertake no obligation to update the information subsequently. So thanks again for joining us.
At this point, I'd like to turn the call over to our chairman and CEO, Doug Parker.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Dan, and good morning, everybody. This morning, we reported a first-quarter pre-tax loss, excluding net special items of $3.5 billion. The loss was driven, of course, by the extreme drop in demand for air travel due to the global pandemic. Our revenues in the quarter were down 62% from the same period in 2019.
In the midst of this difficult environment, the American Airlines team produced remarkable results. We flew more customers than any other U.S. airline. We did so reliably and safe.
We produce the highest passenger unit revenue of any global U.S. carrier while having more available seats for sale. We completed the largest financing in airline history, a $10 billion transaction, secured by the most valuable loyalty program in the world, the AAdvantage frequent flyer program. And excluding that principle, we were cash positive in the month of March, our first such month since the beginning of the pandemic.
These results and more were made possible by our incredible team. Without their resiliency, creativity and compassion, we'd be facing a very difficult future. Instead, thanks to their hard work and determination, we're starting to see light at the end of this very long tunnel -- this very dark tunnel, and we're on a path that has us well positioned as demand for air travel returns. That path forward is guided by what we're calling our green flag plan.
For our industry, this pandemic has been much like a yellow flag during an auto race, where everyone slows down, takes a pit stop and get their cars ready for when the race resumes at full speed. We've used this period to improve and prepare, so that when the green flag does drop, it appears to be on the horizon. American will be ready. That plan is centered on four initiatives.
I'll take a minute to walk through those at a high level, and then Robert and Derek will expand on what we've achieved to date and what we see on the horizon. First, we're doubling down on our commitment to operational excellence. We had a great operation in the first quarter, carrying more than 24 million passengers on nearly 340,000 flights. During our business day of the quarter, we had more than 430,000 customers flying on our aircraft.
That's the highest we've had since March 2020. Our goal is to run the most reliable operation at American Airlines history once everyone is back to a full schedule. And the steps we put in place, including more reliable, profitable scheduling, new tools and technology to assist our team and customers during irregular operations and our claim commitment, will ensure we achieve that goal. Second, we're taking this opportunity to reconnect with our customers.
Robert will talk more about what we're doing. As customers return to the skies, they will see an even better American Airlines. One with the broadest and best global network has now been enhanced by new partnerships. And one with innovative technologies and procedures that make travel more convenient for our customers and ensures they feel safe and comfortable as they return to fly.
Third, we're planning to build on the positive momentum we've established with our team. This past year has tested our team in ways we could have imagined, but it also brought us much closer. We worked hand-in-hand with our union leaders to ensure that team members felt cared for, even as we experienced by far the most difficult financial circumstances in our industry's history. We're committed to building on that progress and continue to work together to ensure our team feels cared for every day.
On that note, we are very happy to tell 13,000 team members they could tear up their warn notices, following the passage of the COVID-19 Relief Act that included an extension of the payroll support program. We will continue to welcome team members back to the operations as we increase our schedule. In fact, earlier this week, we announced we will begin hiring pilots later this year to prepare for 2022 and beyond. Finally and importantly, we are committed to passionately driving efficiencies across the organization.
Derek will elaborate on this. But we are really proud of the aggressive and innovative ways the team has worked to position us to be more efficient on the other side of this pandemic. The efficiencies we've built into the business over the past year will drive more than $1.3 billion of permanent non-volume-related savings in 2021 and beyond. So before I turn it over to Robert, I'll close with this.
We are a long way from where we need to be. This crisis is far from over, and we have to continue fighting to give our customers, shareholders and team the company they deserve. But there is no doubt, the pace of the recovery is accelerating. And thanks to our team, in a thoughtful and proactive plan as the green flag drops, American Airlines is ready.
Robert Isom -- President
Thanks, Doug, and good morning, everyone. I also want to thank our entire team for everything that they've done for our airline throughout the pandemic. This phenomenal group continues to rise to the occasion and deliver for our customers every day, and we're incredibly grateful. Our first-quarter revenue of $4 billion was effectively flat on a sequential basis versus the fourth quarter of 2020.
However, our demand and revenue trends accelerated significantly as the quarter progressed. In January, our total revenue was 34% of what it was in 2019. And by March, it was 46% in 2019. This trend was driven by strong leisure demand in the U.S., Mexico, the Caribbean and Latin America.
This momentum has continued as our seven-day rolling average of system daily net bookings has reached 2019 levels this week. And this is in spite of business and long-haul international demand remaining weak, with net bookings of roughly 20% of their level -- of their 2019 levels. That said, there are early signs of recovery for business. Small business demand, which was roughly 17% of our system revenue has been improving steadily as vaccination rates have increased and as markets reopen.
An increasing number of our largest corporate accounts are coming back to the office and indicating that they'll be traveling in the third quarter and confirming in-person board meetings, conferences and events for this year. Importantly, we're focused on turning improved bookings and load factors into a leading unit revenue performance. We have continued to shape our network and our customer experience as nimbly and thoughtfully as possible, and we're seeing the results. The first quarter of 2021 was the third consecutive quarter in which our passenger unit revenue materially outperformed each of our network competitors.
Thanks to our team, our likelihood to recommend scores have improved for the last three quarters as well. Based on our results in the first quarter, we're on track to have our best LTR year since the merger. We have used the pandemic to reset our airlines that it consistently outperforms for our customers, our team and investors. The first sign of this is in our summer schedule and second-quarter capacity plan.
We expect to fly approximately 80% of our 2019 system seat capacity in the second quarter, and this increases to 90% this summer. We'll continue to do on a larger share of our assets to market where we can create unique value for our customers, and therefore, generate passenger unit revenue premium relative to our competition. When compared to 2019, we expect to find 90% of our domestic seat capacity during the summer peak and 100% in DFW and Charlotte. Our domestic network will constitute 85% of our system seat capacity in the summer peak.
We expect to operate 80% of our international seat capacity compared to 2019 in our peak. Our organic network in the Americas creates more unique choices for customers and more profitability for the airline. As such, in our summer peak, our Latin American network is expected to be the same size as it was in 2019. Our short long-haul Latin America network will constitute approximately 12% of our system seat capacity in the summer peak.
By contrast, our operation has been much more challenged in the Atlantic and Pacific as those markets have yet to fully reopen. And as a result, in our peak schedule, seat capacity in those parts of our network will only be 40% of what it was during the same period in 2019. Our Atlantic and Pacific networks will constitute just 3% of our system seat capacity in the summer peak. We expect to bring these markets back slowly and only when demand conditions warrant.
It's important to note there is significant pent-up demand for international travel, and we're seeing it most in markets like Tel Aviv and Athens where market reopenings are leading to steady increases in demand. As borders continue to open throughout the world, we'll be ready because of the changes that we made to our fleet and network and the strength of our partnerships around the world. Overall, we will deliver any increase in capacity in a more efficient and reliable fashion than we did in 2019. We've accelerated the retirement of over 150 older aircraft in our fleet, leaving American with by far the youngest fleet of our global U.S.
competitors. We intend to have all of our remaining aircraft active this summer and no longer sitting along tarmacs around the country. As Derek will share in a few minutes, we'll soon complete the harmonization of our Boeing 737 and Airbus A321 fleet, driving superior cost efficiency, a simpler operation and a better customer experience. Just as we is the past year to adapt our fleet network, we have also developed partnerships to offer our customers a seamless network in markets where we have structurally underperformed.
This has been most true on the West Coast and in the Northeast. We have been unable to grow these markets organically due to infrastructure constraints. However, through our recently announced partnerships with Alaska and JetBlue, we can now offer customers the largest network in these two regions and bring a level of competition and choice that has long been lacking. Of course, to make these partnerships work, the experience must be seamless for our customers.
As we like to say, an elite customer anywhere should be treated as an elite customer everywhere. We have several initiatives under way to make that a reality, including our announcement just yesterday to deliver on the next phase of our partnership with JetBlue. As we look toward the recovery, reconnecting with our customers will be centered on being the easiest airline to do business with. Our goal has always been to remove as many friction points as possible, and in the first quarter, we took a number of steps to help simplify the travel experience for customers as they return to flying.
We've enhanced our travel planning tool to help customers make informed decisions on where they travel and what to expect when they get there, add a new pre-flight COVID-19 testing options, expanded acceptance of VeriFLY, the mobile health wallet that simplifies and verify travel requirements. VeriFLY is now accepted for all of our international flights in the U.S. to the U.S. and our flights from the U.S.
to 11 countries. Our partners, Aer Lingus, British Airways, Iberia, Japan Airlines, now also accept VeriFLY. Building a curb to get contactless journey will be an ongoing effort as we reimagine safe and convenient travel in a post-COVID era. At DFW, we have expanded our touch technology trial to allow customers to use biometric scanners to check their bag's prior to departure, and we'll utilize that same technology to allow customers to gain entrance to an Admirals Club lounge later this year.
And today, as we celebrate Earth Day, I want to highlight some important strides we've made to run a more sustainable airline. The most important thing any airline can do is retire older aircraft and replace them with new, more fuel-efficient aircraft. And we've done that at American, with $24 billion of investment over the past seven years and a retirement of more than 650 older aircraft. But we need to do more to reach our goal of net-zero carbon emissions by 2050, and we have our eye on sustainable aviation fuel.
SAF is the most promising advancement available to us in the near to mid-term. We've been taking delivery of SAF for almost a year, and in the first quarter, we reached innovative offsetting agreements with two of our customers, Deloitte and Kuehne+Nagel. We appreciate that the Biden administration and many in Congress have engaged with our industry on climate issues or encouraged by the fact that we have common goals, especially when it comes to SAF. So in summary, over the past year, we've greatly simplified and modernized our fleet, rationalized our network and made many changes to our business and operations to ensure customers have flexibility and peace of mind when they return to travel.
We're encouraged by the trends in demand for air travel across all sectors and believe American is well-positioned for the recovery in the months and years ahead. And with that, I'll turn it over to Derek.
Derek Kerr -- Chief Financial Officer
Thanks, Robert, and good morning, everyone. Before I begin my remarks, I too want to take the opportunity to thank our team. Their leadership and hard work truly embodies what American Airlines team members are known for. This morning, we reported a first-quarter GAAP net loss of 1.3 billion or $1.97 per share.
Excluding net special credits, we reported a net loss of 2.7 billion or $4.32 per share. Robert talked about many of the commercial activities we're working on and the trends we're seeing in the demand environment, so I'll focus my remarks on the cost side of our P&L and our balance sheet as we look to the future. Throughout the entire pandemic, we have remained focused on keeping our capacity aligned with demand while preserving the maximum amount of flexibility to respond as demand returns. We took aggressive actions to reduce our cost structure, and we have reduced our first-quarter total operating expense, excluding net special items, by 26% versus 2020 on a 39% reduction in total capacity.
Nonfuel operating expenses, excluding net special credits, were up 6% sequentially from the fourth quarter as we gradually added back capacity. We ended the first quarter with 17.3 billion in total available liquidity, including approximately 3.1 billion of PSP2 funds we received from the Treasury Department during the quarter. We were recently notified that this amount will be increased by approximately $463 million to be received in the second quarter. In addition, we expect to receive 3.3 billion of PSP3 funds by the end of the second quarter.
We saw positive trends in our daily cash burn rate throughout the quarter. Our average daily cash burn was approximately 27 million per day, which came in better than our guidance of 30 million per day. This happened despite the drop-off in demand we saw in January and February and a significant increase in fuel prices at the beginning of the quarter. As a reminder, our definition of cash burn includes approximately 9 million per day of regular debt principal and cash severance payments.
For the month of March, our estimated average daily cash burn rate was approximately 4 million per day. And excluding approximately 8 million per day of regular debt principal and cash severance payments made in March. As Doug noted, the company's cash burn rate turned positive for the month. During the quarter, our Treasury team did a phenomenal job of continuing to strengthen our liquidity through a series of capital market transactions.
Notably, we completed our 10 billion financing transaction that was backed by the AAdvantage program at a blended rate of 5.6%, less than half of what we would have been able to do last summer, and use those proceeds to repay in full the 550 million secured loan we had with the Treasury Department. We also had 530 million of aircraft amortization payments, including the maturity of our 2011-1WTC, which, together with mortgage maturities, resulted in 35 mainline aircraft and nine regional aircraft becoming unencumbered. During the quarter, we also repaid in full our 2.8 billion of revolving credit facilities. This was a liquidity-neutral transaction that reduced the company's outstanding debt by 2.8 billion.
Importantly, we still retain the flexibility to either draw upon these revolving commitments again as needed or leave them undrawn until October 2024. During the quarter, we took delivery of seven Boeing 737 MAX aircraft, and we expect to take one more delivery later this year. As a reminder, these aircraft were built while the MAX was grounded and were efficiently financed through leasing transactions. In addition, we recently exercised our remaining deferral rights on 18 Boeing 737 MAX aircraft that were previously scheduled to be delivered in 2021 and 2022.
These deliveries are now expected to occur in 2023 and 2024. Lastly, we reached an agreement with Boeing related to our remaining 787-8 deliveries. Under the revised terms of the agreement, we have elected to defer and convert five 787-8 aircraft to 787-9 aircraft. These deliveries are now expected to occur in 2023.
The remaining 14 deliveries of 787-8 aircraft have been rescheduled to occur by the end of the first quarter of 2022, and all of these aircraft will retain their existing financings. In January, the company made 241 million in contributions to its pension plans and marks the new COVID-19 relief bill, included, among other things, funding relief for single employer pension plans. These new funding rules reduced the company's remaining required cash contribution for 2021 to zero, while lowering our projected required contributions over the next five years by over 2 billion. Under these new provisions for funding purposes, the combined plans are expected to be funded in excess of 90% for plan year 2021.
As Doug and Robert mentioned, we are starting to see signs of what appears to be a strong economic recovery. This fantastic news makes our 1.3 billion of efficiency measures even more important as we repair our business for the return to a more normal environment. On the fleet side, we have talked a lot about our fleet simplification efforts and the elimination of smaller sub-fleets, which resulted in the removal of more than 150 older and inefficient aircraft. Many of these aircraft -- retired aircraft have already been sold.
And by May, we will have completed disposal of all of our 730 -- 767 aircraft and Embraer 190 aircraft, generating more than 300 million in proceeds. Our fleet changes are expected to drive significant operational and cost savings in 2021 and beyond. With only four mainline aircraft types remaining, we will see improved aircraft utilization and operational efficiencies in the back half of 2021 through the increase in gauge and reduction in inactive aircraft, including spares and maintenance allocations. Additionally, our fleet harmonization project is picking up steam, and we expect to have our entire 737 fleet completed in the second quarter of this year.
These aircraft have 172 seats and come with larger overhead bins and in-seat power. We expect to have the A321 fleet completed by the end of this year. Aside from a better customer experience, these projects will provide significant opportunities to improve revenue production and lower our unit cost now and well into the future. So when demand returns to more normalized levels, we'll be able to fly -- efficiently fly 2019 levels of capacity with approximately 10% fewer aircraft.
In terms of our balance sheet following our transactions in the first quarter, 32% of our outstanding debt is prepayable without penalty. After all the COVID-related financings we have completed to date, our average cost of debt is approximately 4.5%. As we have said in the past, we will naturally reduce our debt from where we are today by 8 to 10 billion over the next five years through regularly scheduled debt amortization. We know going forward that since we are now starting at a higher debt level on account of pandemic-related debt, we will need to delever even more.
In the near term, we plan to maintain higher liquidity levels until we are generating sustained positive cash flow. Once this occurs, when combined with our efficiency measures and a lower capex profile, we plan to use any excess cash flow to more strategically delever our balance sheet by proactively retiring prepayable debt and concurrently increasing our unencumbered assets. As part of our plan, we also anticipate resetting our target minimum liquidity level. Overall, we expect second-quarter total capacity to be down approximately 20 to 25% versus second quarter of 2019.
With these capacity and demand assumptions, we expect to see a significant increase in our revenue versus the first quarter with our total revenue to be down approximately 40% versus the second quarter of 2019. These inputs lead to an estimated second-quarter pre-tax margin, excluding net special items of between negative 27 and 30%. We presently expect to end the second quarter with approximately 19.5 billion in total available liquidity, which includes the additional PSP2 and PSP3 funds I mentioned earlier. That would be the highest liquidity position in company history and our fifth consecutive quarter of increased liquidity despite the demand-driven operating losses we have incurred over that period.
Given these projected liquidity levels and the positive cash and demand trends, we are no longer looking to raise liquidity at American for the first time since the pandemic struck. For the full-year 2021, our debt principal payments will be 2.8 billion, excluding the prepayment of our revolving credit facilities. In the second quarter, we expect to pay down 595 million of aircraft and engine debt in addition to the 250 million PDP facility we paid off earlier this month. Our full-year capex is still expected to remain minimal.
Non-aircraft capex will be 900 million. And due to our negotiated settlements with Boeing attractive aircraft financing and our already modernized fleet, our net aircraft capex, including PDPs, will be an inflow of 1 billion. While we feel great about how much we have accomplished, we recognize that we still have a long way to go to get our business back to normal. Our team has done an amazing job of bolstering our liquidity, conserving cash and driving efficiencies throughout the organization, and we are very well positioned for the future.
And with that, I'll open up the line for analyst questions.
Questions & Answers:
Operator
[Operator instructions] Your first question comes from the line of Joseph DeNardi with Stifel.
Joseph DeNardi -- Stifel Financial Corp. -- Analyst
Doug, two questions for you on the loyalty program. I wanted to ask you a question I asked a few years ago at your investor day. Given how valuable the loyalty program has become and how lucrative the business of selling miles has become, do you need to reconsider what American Airlines is? Are you an airline or are you a marketing company?
Doug Parker -- Chairman and Chief Executive Officer
Yes. We're an airline, Joe, and always will be. The managed program is a big part of that, which helps us to market the airline.
Joseph DeNardi -- Stifel Financial Corp. -- Analyst
So Doug, in 2019, your loyalty program generated roughly the same amount of EBITDA as Marriott did. My question is, did you know that? Does that surprise you? And lastly, why don't you allocate 40% of the time on these calls to the loyalty program since that's how much EBITDA it represents for you all?
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Joe. Yes, look, I don't think it's possible to separate the EBITDA -- the AAdvantage program from the EBITDA airline. They're inextricably linked, and you can't have one without the other. So anyway, that's what I believe.
So the -- and therefore, we talk about running the airline, which what we do every day. And again, the AAdvantage program does indeed -- is an incredibly important part of that. Our -- because we do such a good job of running an airline, people want to have miles in our loyalty program. People want to have credit cards that allow them to earn miles as they spend to earn miles so they can fly more on our airline.
Those are all good things. But you can't have one without the other, and I don't think it's right to try and separate one P&L from the other.
Operator
Your next question comes from the line of Mike Linenberg with Deutsche Bank.
Mike Linenberg -- Deutsche Bank -- Analyst
Good morning, everybody. I guess just maybe Robert or Doug. Robert, you talked about international lagging. You talked about calling out transatlantic, and yet we are seeing headlines over the last week or so about the potential opening of at least the U.S./U.K.
corridor maybe as soon as the month of May, maybe June. Can you just give us an update on what you're hearing and whether or not we're going to see maybe unfettered access between the U.S. and U.K.?
Robert Isom -- President
So we're -- Mike, we're certainly hopeful, and we encourage our government to engage with the U.K. But look, this is a matter -- a bilateral matter, and it's one that first have to be predicated on confidence and safety of travel. So we're encouraged and we're certainly ready when the opportunity allows it. And we know, as I said, that there's tremendous demand, both from a corporate and from a leisure perspective, to take advantage, but we're going to have to make sure that we're coordinated with all parties, governments and government agencies to make sure that we're doing it in an appropriate manner.
Mike Linenberg -- Deutsche Bank -- Analyst
Great. And then, just my second call, just to Vasu on JetBlue, American. I mean, I know it's early. Any sort of quick wins with respect to flow traffic between the two of you in JFK and Boston? And then the story -- I mean, certainly a lot of criticism in -- at least it seems in the press and from other entities out there, and yet it feels like the story that's not being told is just the number of new service.
And I just think about the phase that was just launched in the last day or two, the number of markets that maybe didn't exist before that now exist like a JFK Cali, JFK Boise and then the number of city pairs where you're going from one to two, or two to three, or three to four. For whatever reason, that story doesn't seem to be out there because I sort of view that as being enhancing competition, not taking away from it. So any sort of update that you can give on -- with respect to that alliance?
Vasu Raja -- Chief Revenue Officer
Yes. Mike, thanks for the question. It's a great question. And look, it'll be a start to the story about that because you're absolutely right.
AA and JetBlue together, the fastest-growing airlines in the whole Northeast corridor. Not just adding new services that certainly AA would have never thought possible to JFK daily, but arguably in which JetBlue wouldn't have thought possible, such as Boston and Cincinnati. And there's a lot of things, but really -- so the first part of your question, it's all been enabled, really the customers are the true voice of this because if they like it, they'll fly on it. And we've seen that so far.
So March was our first month in which we turned on the codeshare. We only had about three weeks' worth of bookings. And at least for JetBlue on AA, that was only about 25 to 30 markets. But JetBlue has already become our largest global codeshare partner.
That's a little bit weird because so many of our international partners are flying 5 to 10% of their schedule, but what we do draw some encouragement from is that our codeshare scope is vastly smaller with JetBlue than just about any of our major partners. And as we look at these things, we look at not just the total revenue production on us, but how much of that revenue is really incremental that is coming in higher fares than what we -- what AA is organically booking or coming in periods where the flights were light. And we're finding that somewhere between 30 and 40% of that is incremental with similar rates in Alaska, and that compares extremely favorably to our historical global alliances. So that, for us, as much as anything, is an indication of exactly what you said, the customer is voting.
And the customer really likes the new services, likes the service expansion that's there. And as long as that's the case, it's going to be attractive for us financially. And so, we'll continue to grow and innovate and try things that would not have been possible without a partnership such as this.
Operator
Our next question comes from the line of Duane Pfennigwerth with Evercore ISI.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Hey, thanks. I appreciate it, can you just bridge us from the current international demand commentary of kind of 20% of normal or maybe that was a March comment, 20% of normal and then getting to 80% from a capacity perspective this summer?
Vasu Raja -- Chief Revenue Officer
Yes. This is Vasu. I can help with that. A big part, when we quote international, we're quoting both our long-haul business and our short-haul international business.
Of note, the way we get to 80% is that we are envisioning a long-haul business, which will be, come our peak summer schedule in July, 40% of its 2019 size. But a short haul of international business, which will be north of that, something like 20% larger than what it was in 2019, with our long-haul Latin American network being something like 80% of 2019, right? But maybe even the more colorful way to say is that, for us, long-haul is going to be a very small part of our system this summer. Our total long-haul network, Transatlantic, Transpacific and long-haul Latin America will roughly -- will be about 3 to 5% of the seat capacity of the airline from the Peak July schedule. So a lot of what you see is, in our international numbers, is more capacity going into the short-haul network, which, for us, has proven to be the most resilient part of the whole system ever since the pandemic started.
No matter what the headlines have been, no matter how the market turns, we've always defined bookings rebounding fastest soonest and greatest in those markets. And you see that in our RASM results, replying the biggest schedule in short haul, international and producing the greatest comparative RASMs out there too.
Duane Pfennigwerth -- Evercore ISI -- Analyst
And then just a follow-up for Derek. On the net aircraft capex inflow of 1 billion, can you just tell us how much of that is sale leaseback proceeds? And how much of that is sort of PDP refunds?
Derek Kerr -- Chief Financial Officer
Yes. Our net aircraft capex is about 145, so direct sale leaseback of aircraft is about 2.7. So we have about 2.7 -- 2.6 of aircraft capex, and that's all financed by direct lease and sale leasebacks. And then, the PDPs is about 850.
Duane Pfennigwerth -- Evercore ISI -- Analyst
OK. Sorry, just a small point of follow-up there. Can you give us a sense for where aircraft rent might be kind of exiting this year?
Derek Kerr -- Chief Financial Officer
Yes. Aircraft rent, we'll exit -- we have about 350 in the first quarter, exit around 400 in the fourth quarter.
Operator
Your next question comes from the line of Helane Becker with Cowen.
Helane Becker -- Cowen and Company -- Analyst
Thanks very much, operator. Hi, guys. Thanks for the time. So I have two questions.
One is, you guys said that you flew more passengers than any other airline, and I know your cargo revenue was fairly strong as well. But I was looking at your revenue compared to the -- just your absolute revenue, not your unit revenue, and it was lower than that of like Delta, and I'm kind of wondering what you think accounts for the difference. And then, my follow-up question is related to -- are you talking to the Biden administration about reopening borders, obviously, safely, but reopening borders this summer to gain at least some summer international traffic?
Doug Parker -- Chairman and Chief Executive Officer
I'll take the second.
Derek Kerr -- Chief Financial Officer
Yes. I can just -- I can try to take the first. Look, I can -- I don't know the detail on Delta's number. I can tell you this, that it's not passenger revenue and it's not cargo revenues.
Doug Parker -- Chairman and Chief Executive Officer
So what is it? [Inaudible] Anyway, now that we know exactly what it is in there. They do have business we don't have. On the Biden administration, absolutely, Helane. I mean, as Mike had asked about U.K./U.S.
corridor, we're heavily involved in that, given our relationship, given our -- how large we are to the U.K. and our relationship with BA, of course. And we're in regular contact. Look, what we support is a risk-based data-driven approach to restoring international travel.
What we've seen is pre-departure testing for international rail has been in place early this year. CC recently eased the guidance for domestic travel report. Vaccinated persons, following a lengthy study of that issue, so all these factors were taking into consideration. As formal guidance for travel is being developed, I think -- I know the administration understands that.
I know they understand the importance of international travel and restoring international travel to the economy. And we all need to go look at this in a risk-based way. No one wants to rush for certain, and no one's pushing that either. So anyway, I think it's going to happen gradually.
We're going to do it in a way that works with our governments and works with other governments to ensure that it's done in a way where it's safe. No doubt, there's enormous pent-up demand for it. And we see that as some other countries have relaxed their restrictions on things like coordinates. So we'll keep working on it.
Everyone who's involved are working productively. There's no sort of -- there's certainly sort of pushback on our size. We all want to do this in a way that makes sense.
Derek Kerr -- Chief Financial Officer
Yes. And Helane, the biggest difference on the revenue side is the refinery, just so you know.
Helane Becker -- Cowen and Company -- Analyst
Got you. That's very helpful. All right. Thanks, you guys.
Have a nice day.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Helane.
Operator
Your next question comes from the line of Hunter Keay with Wolfe Research.
Hunter Keay -- Wolfe Research -- Analyst
Hey, thank you. Good morning, everybody. So business travel, it's always been, obviously, a little bit more cyclical and riskier, but higher reward. Leisure travel tends to sort of endure and recover better.
So you knew that. But as you drive out, whatever, $2 billion in cost, you densify your aircraft, is there a thought maybe that you don't want as much of that corporate share on the other side of this? And then maybe, obviously, I know business travel is important to you. I understand that. But maybe like an 80-20 leisure business mix makes more sense for American longer term, given your network footprint and the cost savings and the seat densification and all the other factors just around the periphery.
Does that make sense?
Doug Parker -- Chairman and Chief Executive Officer
No, we don't think so. And again, we think -- actually, we're building a network that will serve business better than their network, and we're excited about that. So as soon as travel returns, we're building the airline to be there for them. And I think we'll be able to do that as well or better than anybody else.
Hunter Keay -- Wolfe Research -- Analyst
OK. And then, Derek, can you help me think about the SWB line in '22, '23 as we contemplate juniority of the pilots and some of the headcount cuts on management, if we assume the capacity is at or maybe slightly above 2019 levels?
Derek Kerr -- Chief Financial Officer
From a salary perspective?
Hunter Keay -- Wolfe Research -- Analyst
Yes, like an absolute SWB, not necessarily unit basis, but on just an absolute salaries basis relative to where you were pre-COVID with juniority and all that other stuff?
Derek Kerr -- Chief Financial Officer
Yes. I think we're going to have a significant amount of retirements as people went out. So when we talk about CASM in 2022 from a cost perspective on all of the groups, we should be down year over year from that perspective. So as we go out throughout the year, we're increasing just because from a salaries perspective, we have brought everybody back.
So it will increase as we go through the second quarter, but then we should be pretty flat as we go into the third and fourth quarter as we have already brought everybody back for the flying that is for the rest of the year. So it should be -- we should be in pretty good shape as we go forward with that. We all have contracts that are up, so it depends on when those negotiations happen. But on a steady-state basis, we'll be pretty flat throughout the rest of the year from a second all the way through the fourth quarter.
Operator
Your next question comes from the line of Jamie Baker with JPMorgan.
Jamie Baker -- J.P. Morgan -- Analyst
Hey, good morning everybody. First one for Robert. So a question I frequently get is how quickly American can ramp up capacity in the event that an incremental market opens up. And in more stable times, it kind of felt like it was about three months between something happening, such as a spike in fuel and flown capacity actually reflecting that change.
Where are we today? For example, if the EU announced today that vaccinated passengers are welcome, and I'm not suggesting this is going to happen, what months would we see that additional capacity?
Robert Isom -- President
So Jamie, I can start and others can chime in. First off, just in terms of market openings, just realize as well, we're dealing with booking curves, right? Much different than the domestic, where so much of the bookings occur within 30, 60 days. For some of these long-haul markets, even for business-related travel, the booking curve is much more extended. So even if markets were to reopen, so much of the actual window for purchasing for the summer has actually passed us by.
So we're going to be smart about how we ramp capacity up so that we make sure that we can match a full demand profile with the aircraft. And that actually matches pretty well with the kind of timing that's required to get aircraft in position, pilots in position and cities that have actually been mothballed in so many parts of the world, back up and operating as well. So for us, to be able to actually be able to serve these markets, we're dealing with timelines that are in kind of the three- to six-month range. Vasu, you want to add anything to that?
Vasu Raja -- Chief Revenue Officer
The only thing I'll say is the very specific part of your question, look, in 45 days, we can go and out in the market and sell it and operate it in a way that we couldn't have done before the pandemic. But to Robert's very good point, that doesn't mean that we should or that we would because so much of it is -- especially as markets reopen, is what's the best marginal use of the capacity that's out there? And just to add the dose of quality it is that even if so much of Europe opens up right now, the reality is we're, let's call it, 60 to 65% of the way through a historical booking curve for Europe, and a lot of the customers that would have gone there have already booked trips to Hawaii or Florida anyway. So the marginal value of that capacity may be a lot less than what might meet the eye, at least in the Americans.
Jamie Baker -- J.P. Morgan -- Analyst
Excellent. All good points. And then, second question, and this is related to the second-quarter guide. It feels somewhat reminiscent of last summer's strategy.
And we talked back then about the low marginal cost capacity given PSP and where fuel prices were and why it made sense to fly more than your competitors, right? This year feels like a more calculated decision, less of a sort of grow or die decision to, I think, somewhat paraphrase what Vasu has said in the past. But the question I'm getting from investors is whether this summer's plan is markedly different than when you basically tried something very similar last year. Any thoughts on that?
Doug Parker -- Chairman and Chief Executive Officer
Yes. I'll start, and Robert can chime in. Yes, it's dramatically different. And that -- well, first off, last summer, what we saw was what looked to be a real drop in the pandemic rates.
And as we saw that we started to add back when we got the second spike, demand fell off, and we adjusted accordingly. So all that was the right decision, it was based on that and nothing else. In this case, we have vaccines and the rates absolutely are falling. And as a result, you see not just us doing this, but virtually every other everyone.
So anyway, it feels -- again, I don't exactly -- I wouldn't concur exactly with what happened last July. Last July, we saw rates falling. It shows that capacity when they spiked back up, we pulled it back. Now we're seeing vaccinations resolved, something which feels much more permanent, should that not be the case, you'll see us pull back.
We can be very flexible, and we will be. I don't think that will be the case. Nothing about this feels anything close to that, but that's the distinction.
Vasu Raja -- Chief Revenue Officer
And Jamie, I would just add one thing to that. Building off of Robert's comments in the section, that what you see out there in our schedule is actually really indicative of where the airline is going. 85% of our capacity this summer will be deployed in domestic, almost 95% of it is between domestic and short-haul international. And as you look at it for the last three quarters of the pandemic, though we flow relatively more capacity, we've also produced more in nominal PRASM than certainly what any of our network competitors have.
But critically, when you look out there this summer, where the capacity is going is really important. But what we call the big four, Dallas, Fort Worth, Charlotte, Phoenix, Miami, are roughly 65 to 70% of our system capacity. And I'll put a little more color on it. In the first quarter, while our system produced PRASM that was maybe 16 -- 15 to 20% larger than what our network competitors were, Charlotte and DFW produced PRASMs that were 30 and 35% larger, with Phoenix and Miami pretty close to the 15 to 20% range too.
So a lot of what you see out there is actually -- there's some opportunism in there about flying Saturday-only trips or leisure-heavy trips or things like that. A lot of it is -- or as Robert said in his opening remarks, or getting the capacity of this network to market where we can produce outsized value to customers and therefore, outside RASMs to the airline.
Operator
Your next question comes from the line of Dan McKenzie with Seaport Global.
Dan McKenzie -- Seaport Global Securities -- Analyst
A couple of questions here. Regarding the plan to prepay 8 to $10 billion in debt through natural amortization, does that include or exclude the plan to use surplus free cash flow to prepay debt? And the reason I'm asking is it just seems like American could pay down substantially more than 10 billion over the coming five years. And if that's correct, I'm just wondering if you'd be willing to provide sort of a bigger picture number of what that could ultimately look like.
Derek Kerr -- Chief Financial Officer
Yes. It does not include anything extra. That's just what we have in amortization going forward. We're not ready to say, but I agree with your premise, that our liquidity is sitting at $19.5 billion at the end of the quarter.
We're going to go through the process of figuring out where we need our liquidity in the short-term and where we need it in the long term. And it's not -- it doesn't need to be at $19.5 billion. But as we said, until we see sustainable cash production, we're going to hold the cash where we're at and keep our cash levels higher than we need. We will then use that to go do that.
So as I said, we have a lot of prepayable debt. So once we're ready, we will go down that process and be able to delever more than the 8 to 10 billion. But I just wanted to make sure that that 8 to 10 billion number, everybody knows, it's going to happen. It has to happen as we go forward and pay off the debt that's due, aircraft debt, unsecured, things that are going to come due over the next few years.
But you're right, Dan. It's -- it can be a bigger number, it's just we want to wait till we get through everything, and we're comfortable to move forward.
Dan McKenzie -- Seaport Global Securities -- Analyst
Understood. OK. Vasu, a fleet that is 10% smaller, so call it 10% less flying. I'm wondering if you can provide some insight on the overhang to margins, say, in 2019, with that portion of the fleet.
And the reason I'm asking this question is just based on what American has done on the cost side, based on what you're doing on the revenue side, it just seems like normalized earnings in this next cycle are going to be higher than they were in the last cycle. And I'm just wondering if you guys would agree with that or what do we need to keep in mind?
Vasu Raja -- Chief Revenue Officer
Yes, some others can speak to what our earnings profile might look like, but you are on to something that we have made this airline materially more efficient through the pandemic here. This summer, we'll be almost 150 airplanes down. But in the schedule, we'll only be about 80 or 85 airplanes down. So all of that delta is efficiency.
It's inefficient airplane that went away, its superior gauge economics, superior utilization, wherever we have it. So if you went to back half 2019, we could fly roughly that same airline with materially fewer jets, and the network would be oriented a lot more to places where we could produce an outsized RASM. So that is very much the conscious design. I mean the whole point to the earlier remarks about the Green Flag Plan is to deliver an airline that can outperform in the future, and we think we've done that, but the proof will be when we do.
Operator
Your next question comes from the line of Savi Syth with Raymond James.
Savi Syth -- Raymond James -- Analyst
Good morning everybody. I wonder if you could talk about how you're thinking about the cadence of capacity as you kind of move away from the summer and kind of -- I know there's a lot of uncertainty. But right now, a lot of the demand is being driven by leisure. But should we expect that this level of capacity or better as we move into the fourth quarter?
Robert Isom -- President
Savi, I'll just -- look, we're going to be incredibly flexible as we go forward. I mean we've given a lot of detail as to what we intend to fly this summer. If things progress as we hope with vaccinations increasing and then hopefully, international markets opening up. And based on what we're hearing from our corporate customers in coming back to work, back into the office and setting meetings and events, we're optimistic.
But it really is dependent on the continued containment of COVID and people getting back to business.
Doug Parker -- Chairman and Chief Executive Officer
To Jamie's question, we have enormous flexibility in this regard. The schedule we have built is designed for the current amount of -- for the current leisure-based travel, that's why we have a 777s flying in the United States. They're not made to do that, it's not going to be happening a year from now. So as international markets open up, that's where those aircraft can be deployed.
And -- but again, we're going to wait for the demand to come back before we deploy the aircraft there. But right now, I think the team is doing a really nice job deploying airplanes where the existing demand is.
Savi Syth -- Raymond James -- Analyst
Great. And then, if I may just follow-up on -- partly your response to Hunter's question, just how much of kind of the 2Q costs are related to kind of getting capacity back online versus actually the capacity can be produced in the quarter? I was just wondering, as that kind of -- how much is in the number today that might wind down as you kind of increase capacity going ahead?
Robert Isom -- President
There's really not -- I mean, we don't have a lot of costs built into the second quarter for -- to get the capacity back up. Most of the aircraft have been ready to go. We will have higher costs, but the higher costs in the second quarter really due to volume-driven costs. So our maintenance costs will be up because our power by hour costs will be up and things like that.
But there's no built-in cost to retrain. There's no big built-in cost to get the fleet back up because the fleet is ready to go. Our team has done an incredible job of maintaining those aircraft over the last year and having them ready. We didn't malfunction any aircraft.
We didn't put them in a desert. We don't have to bring them back and spend a lot of money on engine costs and anything like that. So there's not a lot, I would say, in the second quarter to build the airline back up other than volume.
Operator
Your next question comes from the line of David Vernon with Bernstein.
David Vernon -- Sanford C. Bernstein -- Analyst
Hey, good morning, guys. Robert and Vasu, maybe could you help us understand the cadence of sort of leisure fares? What I'm trying to get at is where we are today in sort of 1Q on a sort of like-for-like distance neutral basis, the per fares versus kind of a precrisis level. And then, how the fare environment is changing as we move into the summer months? Obviously, we're adding a bunch of capacity, a bunch of demand is coming in. I'm just trying to get a sense for how the revenue management systems are working in terms of setting fares that would be expecting to see in sort of 2Q, 3Q.
Robert Isom -- President
OK, Vasu can help me with the real specifics. I'll just say this, though, to kick it off, which is being able to leverage yields is dependent on having base bookings. And from that perspective, as I said in my remarks, firstly, we're seeing not only bookings, but real load factors that actually allow for some optimism about where pricing is going. So Vasu?
Vasu Raja -- Chief Revenue Officer
Yes, that's right, David. We have seen an inflection point with yield, which is, for us, any -- the thing that we most draw in terms of encouragement. To put some context to it, when we came into the first quarter of this year, our selling spares were roughly half of what they were a year ago. For half of last year's price, you could gain access to the American Airline system.
As we go out into the summer, there's something like 90% of where they were a year ago. And indeed, in our leisure markets, and by leisure to be really specific here, we count that as short-haul international and also all the obvious domestic markets, Vegas, Orlando, Florida, things like that. Our seat capacity there is up about 25%. But there, our yields are about 95 to 100% -- bookings are 95 to 100% of what we were taking a year ago.
And so, that, for us, as much as anything, is really key because we are in a place now, if you'll notice the commentary, we're not spending a lot of time talking about bookings because in our system, engineering bookings is not the issue anymore. So much of it is about getting yields back and getting RASMs back, especially in our domestic system. As big as we are historically in our network and the way we're shaping it the summer, domestic RASM is key to our success. And given what's happening with traffic, yield is super important.
So we are doing all we can to go and yield up wherever we see it.
David Vernon -- Sanford C. Bernstein -- Analyst
So just to clarify, were you referring to 95% of 2020 levels or 2019 levels?
Vasu Raja -- Chief Revenue Officer
2019 levels, sorry. All years in my comments is actually 2019. I apologize.
David Vernon -- Sanford C. Bernstein -- Analyst
Yes, that was slightly frightening. Just as maybe a follow-up, Derek. You mentioned before managing the airlines to a little bit lower level of leverage. How do you think about talking to your Board about the financial liability risk when you've got all these unencumbered assets? I think one of the things that maybe surprised a lot of us is that there were a lot of assets that you could tap into for debt and credit.
How do you think about managing or measuring that or maybe communicating that to the market going forward so that we maybe have some visibility into additional liquidity that you could tap outside of like the traditional kind of debt-to-EBITDA metric just given the fungibility of the assets that are in the network, particularly if you buy down more aircraft with cash?
Derek Kerr -- Chief Financial Officer
Yes. I think, number one, we're not looking for more liquidity. So that's like -- the good news now is I come in every day and not have to go look for liquidity. But we will keep everybody up-to-date on the unencumbered assets.
And as we look forward and if we have excess cash, we're going to manage it properly to figure out what is the best thing to pay down as we move forward. So we are going to have conversations with the Board on liability management that we're going to discuss, what are we going to do over the next year or two years. That if we have excess cash, what do we pay off and what's the best things to unencumber as we move forward. In today's environment, our unencumbered assets are 3.7 billion.
They grow every time we pay off aircraft and AADCs. We have the first lien capacity of about 7 billion. So we have the ability to do more, but the good news is we're not looking to do more right now as we go forward. So I think the key is, as we move forward, what is the liquidity levels we need to be at, what are the ratios we want to be at as we move forward and how do we best do that over the time period with any excess cash that we have above the amount that we need.
And so, we'll be having those discussions over the next -- every board meeting, and we'll be discussing that with our board for a period of time as we move forward through this recovery.
Operator
Your next question comes from the line of Myles Walton with UBS.
Myles Walton -- UBS -- Analyst
I was just wondering, to clarify on the no longer looking to raise liquidity, would you also be comfortable saying that you have no interest, at this point, accelerating the deleverage with additional equity? And then maybe if you can just give us a bit of color on the walk from 17 3 to 19 5, and the PSP contribution in there. And if that's as simple as sort of $1 billion underlying cash burn offsetting the PSP?
Doug Parker -- Chairman and Chief Executive Officer
I'll take the first one. And I think I can do the second one also, but Derek can do better. So we -- anyway, on the first point, yes, when we say we're not looking to raise liquidity, we're not look at the raise financing and that includes equity. And as Derek said, we believe -- we know that we have just through our normal amortization schedule 8 to $10 billion of debt going down over the next five years.
And as was noted by Dan McKenzie, we have the ability to do a little bit more than that so long as the recovery continues on the path that it appears to because we'll end up with more cash than we need. So that's how we would choose to delever over time. And then, again, I'll try to be quick because I'm already talking, but Derek can probably do it better. If you -- I think what you're asking is, if you have the PSP payments and you look at our cash, you actually see that it's not as much as the PSP.
The reason for that is seasonality of -- first off, the seasonality of sales is not as strong in the second quarter as the first. And we also -- and the debt payments are larger in the second than the first. But even if you excluding debt payments, we're still cash positive in the second quarter, excluding debt payments on that forecast.
Derek Kerr -- Chief Financial Officer
Debt and interest.
Doug Parker -- Chairman and Chief Executive Officer
Debt and interest. Thanks, Derek. So that's what is seasonality. I will use this to go on a little so for because -- this is why, by the way, we -- there are GAAP principles.
It's because cash flow has a lot of seasonality. So we're going to be -- there was a real reason at some point when we were talking about cash burn, cash burn, cash burn because the market had real interest in where people's cash flows were and how much cash they were burning. We're all well past that. And if we keep talking about cash burn, we're going to keep commuting people because there's huge seasonality in cash in airlines.
There's huge seasonality in debt payments. And when we were -- when all of us were making large profits, we still had quarters where we had decline in cash. So that's why you go back to GAAP principles, and include things like accruals and smoothing and matching principles so that you can keep yourself actually know what's going on in the airline. So anyway, that's what some of the facts.
I'm glad we're going to stop talking about cash burn and get back to talking about earnings. But anyway, that's the reason, but thanks for asking.
Operator
Your next question comes from the line of Stephen Trent with Citi.
Stephen Trent -- Citi -- Analyst
Good morning everybody and thanks very much for taking my question. I was just curious what you guys are seeing, if you could give a little more color. I think you mentioned that you're going to hire some pilots later this year. Any color with respect to what this could mean from a headcount perspective? And is American planning to apply any ESG-type filters on the hiring as some of your competitors have telegraphed that you want to diversify their base?
Robert Isom -- President
So yes, look, it's great news that we're looking at hiring pilots later this year. And it's due to a number of factors, most notably that we've had significant retirements over the past few years. So this is going to put us in a position to fly and be flexible wherever we need to be. From bringing pilots on though, we're incredibly excited about the work that we've been doing, both at the mainline airline and within our regional airlines as well.
We also have been marching down the path to ensure that those that are coming into our regional airlines are wholly owned and also our mainline really represent the face of the country. Most notably, ensuring that we have more women and people of color that are taking the ranks of -- the pilot ranks. And so, you'll see that we have a cadet program that now has over 350 people in it. That's just going to grow in the future.
And as we look forward, we anticipate getting a substantial number of our total pilots brought in through that program. So very excited about where we're headed.
Doug Parker -- Chairman and Chief Executive Officer
And that program is diverse.
Robert Isom -- President
And that program is, by and large, designed to bring in, again, people of color and females into the pilot ranks.
Doug Parker -- Chairman and Chief Executive Officer
Females and people of color.
Stephen Trent -- Citi -- Analyst
Very helpful. Appreciate the color. Thank you.
Operator
This completes our analyst portion of the Q&A. We will now move to media questions. [Operator instructions] Your first question comes from the line of Alison Sider with Wall Street Journal.
Alison Sider -- Wall Street Journal -- Air Travel Reporter
Yes. I was wondering if you could talk a little bit about the latest issue with the 737 MAX and whether that creates any challenges for you all in kind of rebuilding confidence in the plane that something else has come off after all the vetting that happened sales to find the latest problem?
Robert Isom -- President
Aly, it's Robert. Look, I am really pleased with Boeing and the industry. We coalesce around safety. And so, with the MAX and -- with any aircraft, it's critically important that we take the right steps when there's any potential concerns.
And in the case of the 737 MAX. And these, at least for us, these 18 aircraft, we have a pretty good idea of exactly what the issue is and the remedies that need to be attended to. So the work that we're doing is with both Boeing and the FAA. We're waiting on a service portal to be developed, worthiness directors to be dropped and then getting the work done in those aircraft back up in the air.
We hope that that's just in a matter of weeks and not longer. In terms of the impact on our schedule, look, we've been flying the MAX now for four months back and incredibly successfully. Passenger reaction has been really that they like the product. They like the aircraft.
And as we take a look going forward, even with 18 aircraft out of service right now, there is virtually no impact to our schedule. We've been able to use other aircraft to fund the needs for the airlines. So overall, I think we've -- as an industry with Boeing and certainly with the FA, we've made all the right moves, and I have great confidence that this aircraft is going to be in the skies and the safest and most reliable for years to come.
Alison Sider -- Wall Street Journal -- Air Travel Reporter
OK. I mean have you seen any increase in book away on the MAXs that are still flying? Like is there any sign that customers have any elevated concerns?
Robert Isom -- President
Not at all.
Alison Sider -- Wall Street Journal -- Air Travel Reporter
Thank you.
Operator
Your next question comes from the line of Leslie Josephs with CNBC.
Leslie Josephs -- CNBC -- Airline Reporter
You've mentioned that bookings were ticking up. Of course, looks like a much stronger summer than last year. What are your projections for after summer vacation season starts to wane? Do you expect a lot of that leisure demand to go away? And do you think there's going to be enough business demand to replace it?
Robert Isom -- President
Leslie, this is Vasu. Thanks for the question. Look, it remains to be seen. Throughout the pandemic, it's always difficult to forecast or prognosticate that far out.
Those things are recovering, that difficulty remains. So it remains to be seen, as Robert and Doug mentioned earlier. Though, for us, the real lever is our capacity. And if things change, we can change with it.
Over the last year, we have any number of tools and techniques to go and make the airline pretty nimble and responding to it. So first things first is to manage the summer and then we'll treat fall as it gets closer.
Leslie Josephs -- CNBC -- Airline Reporter
OK. And then, the bookings that you have so far, are you seeing that they drop off after August or July? Or is there any one point where you see kind of a slowdown?
Vasu Raja -- Chief Revenue Officer
We're seeing pretty consistent bookings growth throughout periods. Indeed, where bookings are falling is a conscious decision on the part of the airline so that we don't do things like, for example, sell-out Thanksgiving week too soon. But we see continued strong bookings as we go out there. We just want to make sure they're coming in at their --
Operator
Your next question comes from the line of Mary Schlangenstein with Bloomberg News.
Mary Schlangenstein -- Bloomberg News -- Airlines Reporter
Hey, how are you? I want to ask first real quick, if I can go back to Alison's question on the MAX, I wanted to see if you have any information or can you comment on if there's the frustration level on the fact that you haven't yet gotten a service bulletin on that repair, which originally, the talk was that those repairs would be fairly simple and straightforward. But now it's been weeks and you don't have anything yet from Boeing?
Doug Parker -- Chairman and Chief Executive Officer
Not at all. That's the FA's job, and they do it well, and we work really well with them. And as Robert said, we all coalesce around safety, that's part of the process, but at least they're trusted.
Mary Schlangenstein -- Bloomberg News -- Airlines Reporter
OK. Thank you. And if I can also ask, Vasu, if you could talk a little bit about the wide-bodies domestically and what plane you're flying where domestically?
Vasu Raja -- Chief Revenue Officer
Yes. Mary, I can talk a little bit about it. But really, the biggest story on the wide-body is just how -- frankly, how dynamic the airline has gotten in managing capacity around the system, which is frankly easy to do in the world of scheduling. It's a lot harder to actually deliver it for our customers and do so reliably in a way that they like.
And so, through the pandemic because international demand is falling, sometimes even as opposed to 45 or 60 days from departure, we've been taking out international flights. But as we've seen strong bookings in, say, Miami or what have you, we've been putting those wide-bodies in there. So a big part of it is very dynamic, and it changes a lot. What we're most encouraged about is wherever we've seen them, indeed, we've been able to deliver it on short notice and for our earlier comments in a way our customers like.
Our customer satisfaction scores have indeed never been higher. The only real method beyond that to where the wide-bodies go this summer if they are concentrated disproportionately and what we call hub-to-hub markets, those are markets like Miami, DFW and also our big Sun Belt market, especially in Miami. So we're now in a place where Miami to New York is all on wide-bodies, Miami to Los Angeles on wide-bodies, Miami to Boston largely on wide-bodies, too. So we don't anticipate very many material changes versus what you see on the schedule.
But if things change in international, that's a real lever for us. The marginal capacity of that is probably better spent in domestic right now than what it is in most of long-haul.
Mary Schlangenstein -- Bloomberg News -- Airlines Reporter
Great. Thank you very much.
Operator
Your next question comes from the line of David Koenig with The Associated Press.
David Koenig -- The Associated Press -- Business Writer
Thank you. Good morning, folks. I guess, this is for Vasu. I wanted to follow-up on what you were saying to David Vernon on fares.
The 90% -- as you approach this summer, the 90% of 2019 levels, is that due in any part to more business travel? Or is it pretty much just that you can get higher fares from leisure travelers? And then to follow up on that, is that pretty much leisure fares across your system, domestic and short-haul international?
Vasu Raja -- Chief Revenue Officer
Thanks for the question. And look, to be clear, that 90% of the book yields we're taking right now, there could be any number of factors that impact that they actually come in at once the summer is all said and done. But yes, it is primarily driven by lease demand growth. We are seeing signs of business growth, but it's coming off of a small base, and it's still a pretty small part of our system total.
So most of the yield growth we're seeing is from the leisure travel segment. And frankly, a lot of what yield growth is there is just because we're seeing a lot of cases where, especially on peak holidays and things like that, where, frankly, the demand for seats is greater than supply of seats, and so that's what produces higher yield.
David Koenig -- The Associated Press -- Business Writer
And that's pretty much systemwide?
Vasu Raja -- Chief Revenue Officer
No, it's not. Our system is really uneven. It's much more heavily concentrated among our domestic leisure and short-haul international markets.
David Koenig -- The Associated Press -- Business Writer
OK. Thanks.
Operator
Your next question comes from the line of Dawn Gilbertson with USA Today.
Dawn Gilbertson -- USA Today -- Consumer Travel Reporter
Hey, good morning. I wanted to ask a question for you, Vasu. The State Department earlier this week raised the travel alerts to their highest level for most countries. I'm wondering if you have seen or expect to see any impact on bookings? And if not, why not?
Vasu Raja -- Chief Revenue Officer
Hey, Dawn. Good to hear from you. I'll start and others can add. But if you look at the range to be seen in the last, whatever, it's been 48 hours, maybe 96 hours since it's happened, it's been too early to tell what's going on and what its impact to bookings might be.
If indeed, there is one, we have ample tools to be able to adjust the airline should it come to pass. But then also the last thing I'll add to it is, from my earlier comments, the way we've configured the airline this summer is very much to make it resilient to just these kinds of changes where 85% of our capacity is in the domestic system, in large part because we realize that the recovery is not just going to be choppy from a demand perspective, but choppy from a market opening perspective as well. And so, by building the plan like that is something that we could deliver upon for our team and our customers and create a lot more resilience as the world recovers.
Dawn Gilbertson -- USA Today -- Consumer Travel Reporter
Thank you.
Operator
Your next question comes from the line of Kyle Arnold with Dallas Morning News.
Kyle Arnold -- Dallas Morning News -- Aviation Writer
OK, guys. I appreciate it. I know you have some plans and you announced the plans to start hiring some pilots. Do you guys have any -- will there be any need going to the year for other employee groups, flight attendants or ground workers or gate agents?
Robert Isom -- President
The answer to that is, yes. And you'll see that throughout our network, and it's especially from a passenger service, a team member or those folks that work on the fleet side of things, we're going to have needs throughout the network, but it's really just based on location needs more than anything else. And too soon to say anything about where we stand with our flight attendants, but I can tell you that I anticipate that there will be a need there as well.
Doug Parker -- Chairman and Chief Executive Officer
Yes. The part is kind of -- we have so many of our -- took this opportunity to take leads that what we're doing rather than hiring new flight attendants is bringing flight attendants back from leave earlier than their leave would have extended. So having them come back off of leaves than they would have otherwise. Once we get through that, we'll need to hire, but we're not there yet.
Operator
Your next question comes from the line of Edward Russell with Skift.
Edward Russell -- Skift -- Journalist
Thank you for taking my questions. Robert, could you tell me a bit more about how many aircraft American needs to reactivate to fly all of its fleet this summer? And what types are still needing to be reactivated?
Robert Isom -- President
No. We have aircraft that are ready to go. Of course, we had -- as Derek mentioned in his comments, we're accelerating our reconfiguration program, our harmonization programs on the 737 and A321. So we'll have some aircraft that are caught up in that.
But the way to look at our fleet is that they're all out there and maybe not utilized as much as they will be, but we feel great about the work that our maintenance team has done to keep everything ready to file when necessary.
Edward Russell -- Skift -- Journalist
So just a follow-up, you don't have any aircraft temporarily stored anymore at this point? Is that the way to characterize it?
Robert Isom -- President
Correct. Yes.
Edward Russell -- Skift -- Journalist
OK. Thank you.
Operator
And at this time, I would now like to turn the conference back to Doug Parker for closing remarks.
Doug Parker -- Chairman and Chief Executive Officer
Fantastic. Thanks, everybody for your interest. If you have any further questions, please let us know. Appreciate your time.
Operator
[Operator signoff]
Duration: 82 minutes
Call participants:
Dan Cravens -- Moderator, Managing Director of Investor Relations
Doug Parker -- Chairman and Chief Executive Officer
Robert Isom -- President
Derek Kerr -- Chief Financial Officer
Joseph DeNardi -- Stifel Financial Corp. -- Analyst
Mike Linenberg -- Deutsche Bank -- Analyst
Vasu Raja -- Chief Revenue Officer
Duane Pfennigwerth -- Evercore ISI -- Analyst
Helane Becker -- Cowen and Company -- Analyst
Hunter Keay -- Wolfe Research -- Analyst
Jamie Baker -- J.P. Morgan -- Analyst
Dan McKenzie -- Seaport Global Securities -- Analyst
Savi Syth -- Raymond James -- Analyst
David Vernon -- Sanford C. Bernstein -- Analyst
Myles Walton -- UBS -- Analyst
Stephen Trent -- Citi -- Analyst
Alison Sider -- Wall Street Journal -- Air Travel Reporter
Leslie Josephs -- CNBC -- Airline Reporter
Mary Schlangenstein -- Bloomberg News -- Airlines Reporter
David Koenig -- The Associated Press -- Business Writer
Dawn Gilbertson -- USA Today -- Consumer Travel Reporter
Kyle Arnold -- Dallas Morning News -- Aviation Writer
Edward Russell -- Skift -- Journalist
More AAL analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) Q1 2021 Earnings Call Apr 22, 2021, 8:30 a.m. Operator [Operator signoff] Duration: 82 minutes Call participants: Dan Cravens -- Moderator, Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Joseph DeNardi -- Stifel Financial Corp. -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Vasu Raja -- Chief Revenue Officer Duane Pfennigwerth -- Evercore ISI -- Analyst Helane Becker -- Cowen and Company -- Analyst Hunter Keay -- Wolfe Research -- Analyst Jamie Baker -- J.P. Morgan -- Analyst Dan McKenzie -- Seaport Global Securities -- Analyst Savi Syth -- Raymond James -- Analyst David Vernon -- Sanford C. Bernstein -- Analyst Myles Walton -- UBS -- Analyst Stephen Trent -- Citi -- Analyst Alison Sider -- Wall Street Journal -- Air Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter Mary Schlangenstein -- Bloomberg News -- Airlines Reporter David Koenig -- The Associated Press -- Business Writer Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Kyle Arnold -- Dallas Morning News -- Aviation Writer Edward Russell -- Skift -- Journalist More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Notably, we completed our 10 billion financing transaction that was backed by the AAdvantage program at a blended rate of 5.6%, less than half of what we would have been able to do last summer, and use those proceeds to repay in full the 550 million secured loan we had with the Treasury Department.
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Operator [Operator signoff] Duration: 82 minutes Call participants: Dan Cravens -- Moderator, Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Joseph DeNardi -- Stifel Financial Corp. -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Vasu Raja -- Chief Revenue Officer Duane Pfennigwerth -- Evercore ISI -- Analyst Helane Becker -- Cowen and Company -- Analyst Hunter Keay -- Wolfe Research -- Analyst Jamie Baker -- J.P. Morgan -- Analyst Dan McKenzie -- Seaport Global Securities -- Analyst Savi Syth -- Raymond James -- Analyst David Vernon -- Sanford C. Bernstein -- Analyst Myles Walton -- UBS -- Analyst Stephen Trent -- Citi -- Analyst Alison Sider -- Wall Street Journal -- Air Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter Mary Schlangenstein -- Bloomberg News -- Airlines Reporter David Koenig -- The Associated Press -- Business Writer Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Kyle Arnold -- Dallas Morning News -- Aviation Writer Edward Russell -- Skift -- Journalist More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q1 2021 Earnings Call Apr 22, 2021, 8:30 a.m. And good morning, everyone, and welcome to the American Airlines Group first-quarter 2021earnings conference call Joining us on the call this morning, we have Doug Parker, chairman and CEO; Robert Isom, president; and Derek Kerr, chief financial officer.
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Operator [Operator signoff] Duration: 82 minutes Call participants: Dan Cravens -- Moderator, Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Joseph DeNardi -- Stifel Financial Corp. -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Vasu Raja -- Chief Revenue Officer Duane Pfennigwerth -- Evercore ISI -- Analyst Helane Becker -- Cowen and Company -- Analyst Hunter Keay -- Wolfe Research -- Analyst Jamie Baker -- J.P. Morgan -- Analyst Dan McKenzie -- Seaport Global Securities -- Analyst Savi Syth -- Raymond James -- Analyst David Vernon -- Sanford C. Bernstein -- Analyst Myles Walton -- UBS -- Analyst Stephen Trent -- Citi -- Analyst Alison Sider -- Wall Street Journal -- Air Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter Mary Schlangenstein -- Bloomberg News -- Airlines Reporter David Koenig -- The Associated Press -- Business Writer Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Kyle Arnold -- Dallas Morning News -- Aviation Writer Edward Russell -- Skift -- Journalist More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q1 2021 Earnings Call Apr 22, 2021, 8:30 a.m. And good morning, everyone, and welcome to the American Airlines Group first-quarter 2021earnings conference call Joining us on the call this morning, we have Doug Parker, chairman and CEO; Robert Isom, president; and Derek Kerr, chief financial officer.
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Operator [Operator signoff] Duration: 82 minutes Call participants: Dan Cravens -- Moderator, Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Joseph DeNardi -- Stifel Financial Corp. -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Vasu Raja -- Chief Revenue Officer Duane Pfennigwerth -- Evercore ISI -- Analyst Helane Becker -- Cowen and Company -- Analyst Hunter Keay -- Wolfe Research -- Analyst Jamie Baker -- J.P. Morgan -- Analyst Dan McKenzie -- Seaport Global Securities -- Analyst Savi Syth -- Raymond James -- Analyst David Vernon -- Sanford C. Bernstein -- Analyst Myles Walton -- UBS -- Analyst Stephen Trent -- Citi -- Analyst Alison Sider -- Wall Street Journal -- Air Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter Mary Schlangenstein -- Bloomberg News -- Airlines Reporter David Koenig -- The Associated Press -- Business Writer Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Kyle Arnold -- Dallas Morning News -- Aviation Writer Edward Russell -- Skift -- Journalist More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q1 2021 Earnings Call Apr 22, 2021, 8:30 a.m. And good morning, everyone, and welcome to the American Airlines Group first-quarter 2021earnings conference call Joining us on the call this morning, we have Doug Parker, chairman and CEO; Robert Isom, president; and Derek Kerr, chief financial officer.
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4516.0
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2021-04-22 00:00:00 UTC
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Buy Spirit Airlines Stock as Air Travel Makes a Comeback
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AAL
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https://www.nasdaq.com/articles/buy-spirit-airlines-stock-as-air-travel-makes-a-comeback-2021-04-22
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Spirit Airlines (NYSE:SAVE) stock may have more than doubled since the start of the vaccine rollout. But, don’t think it’s too late to buy shares in this low-cost airline. Why? Namely, it continues to have two key strengths. Those would be its strong balance sheet, along with its lean cost structure, which enabled the company to mitigate the severity of its cash burn during the pandemic.
Source: Markus Mainka / Shutterstock.com
Last year, when Covid-19 headwinds were at their peak, I made the case why, with its aforementioned strengths, this airline would bounce back relatively fast compared to legacy carriers like American Airlines (NASDAQ:AAL).
Flash forward to now, and it’s clear this has started to play out. Sure, as seen from its recent quarterly results (more below), results for January and February reflect a still-challenging environment. To some, this may signal investors have gotten ahead of themselves bidding travel stocks back up.
7 A-Rated Retirement Stocks to Buy
But that line of thinking is short-sighted. Diving into the details, it’s clear things will continue to improve as 2021 plays out. So, what does that mean, for those who may be interested but haven’t yet entered a position?
In anticipation of the comeback, the stock has mostly bounced back. But, with room to run in both the near-term and long-term, this remains a buy at today’s prices ($36.46 per share).
SAVE Stock and Recent Results
On April 21, Spirit Airlines released its numbers for the quarter ending Mar 31, 2021. As I hinted at above, getting back to normal is still a work in progress. Revenue remains down year-over-year (with last year’s first quarter being when the outbreak began to impact U.S. travel demand). Adjusted EBITDA margins continue to run high (negative 43.3%).
But, per management’s commentary, there’s much pointing to improved results going forward. Beginning in March, Spirit saw a material pickup in demand trends. With its assumption that said trend will continue, the company’s guidance for next quarter says breakeven Adjusted EBITDA is attainable.
Again, the market has already anticipated a massive recovery ahead for this carrier. That’s why SAVE stock has bounced back tremendously from its initial pandemic-driven collapse last spring. If you recall, shares briefly fell to prices in the single-digits. Since then, it’s delivered jaw-dropping returns for those who bought near the bottom. Yet, shares still have considerable runway.
And, not only because the stock, at $36.46 per share, remains around 15-20% below its pre-outbreak price levels. The continued improvements in travel demand will help the stock make up the rest of its losses. But, its long-term edge against the legacy carriers, and to some extent, rival low-cost carriers, will be what helps to keep it moving upwards long after we close the books on Covid-19.
Don’t Forget About Its Long-Term Potential
The continued recovery will help SAVE stock continue to gain in the short-term. But, that’s not where the story ends. This airline play has long-term potential as well. And, it comes from its industry-leading low-cost structure.
This advantage has been key in making it the fifth-largest domestic airline by market share. Not only will it enable it to maintain its lead over the other low-cost carriers that trail it. It also opens the door for it to gain substantial market share in the coming years.
Right now, it holds just a 5.8% share of the overall U.S. air travel market. The three largest carriers, legacy airlines American and Delta Airlines (NYSE:DAL), along with low-cost leader Southwest Airlines (NYSE:LUV), each hold around a 15-20% share. With its advantageous cost structure, combined with its financial strength, it has plenty of potential to narrow this gap.
Granted, materially expanding its market share will take time. Right now, its main focus is to ride out the pandemic, and return to full-year profitability. But, once it gets through the waning storms, consider this a long-term catalyst that could help propel the stock down the road.
With More Runway Ahead, Shares Remain a Buy at Today’s Prices
It’s premature to say airlines have made a comeback. Even as more Americans have become vaccinated, air travel demand remains far below pre-pandemic levels. Yet, investors have not been wrong in anticipating stronger numbers starting in the third quarter of 2021.
As seen from Spirit’s bullish guidance, it’s clear things have started to pick up — in a big way. This points to a continued recovery in results. And, in turn, a path for shares to fully recover from their pandemic-related losses. But, that’s not the only story with this low-cost carrier.
Considering its strong liquidity and low-cost structure, this airline has the potential to greatly expand its market share in the coming years. SAVE stock remains a solid buying opportunity.
On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Thomas Niel, a contributor to InvestorPlace, has written single stock analysis since 2016.
The post Buy Spirit Airlines Stock as Air Travel Makes a Comeback 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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Source: Markus Mainka / Shutterstock.com Last year, when Covid-19 headwinds were at their peak, I made the case why, with its aforementioned strengths, this airline would bounce back relatively fast compared to legacy carriers like American Airlines (NASDAQ:AAL). Those would be its strong balance sheet, along with its lean cost structure, which enabled the company to mitigate the severity of its cash burn during the pandemic. SAVE Stock and Recent Results On April 21, Spirit Airlines released its numbers for the quarter ending Mar 31, 2021.
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Source: Markus Mainka / Shutterstock.com Last year, when Covid-19 headwinds were at their peak, I made the case why, with its aforementioned strengths, this airline would bounce back relatively fast compared to legacy carriers like American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Spirit Airlines (NYSE:SAVE) stock may have more than doubled since the start of the vaccine rollout. The three largest carriers, legacy airlines American and Delta Airlines (NYSE:DAL), along with low-cost leader Southwest Airlines (NYSE:LUV), each hold around a 15-20% share.
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Source: Markus Mainka / Shutterstock.com Last year, when Covid-19 headwinds were at their peak, I made the case why, with its aforementioned strengths, this airline would bounce back relatively fast compared to legacy carriers like American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Spirit Airlines (NYSE:SAVE) stock may have more than doubled since the start of the vaccine rollout. The three largest carriers, legacy airlines American and Delta Airlines (NYSE:DAL), along with low-cost leader Southwest Airlines (NYSE:LUV), each hold around a 15-20% share.
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Source: Markus Mainka / Shutterstock.com Last year, when Covid-19 headwinds were at their peak, I made the case why, with its aforementioned strengths, this airline would bounce back relatively fast compared to legacy carriers like American Airlines (NASDAQ:AAL). The continued improvements in travel demand will help the stock make up the rest of its losses. With More Runway Ahead, Shares Remain a Buy at Today’s Prices It’s premature to say airlines have made a comeback.
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4517.0
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2021-04-22 00:00:00 UTC
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U.S. stocks close down on news of Biden tax proposal
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AAL
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https://www.nasdaq.com/articles/u.s.-stocks-close-down-on-news-of-biden-tax-proposal-2021-04-22
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nan
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nan
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By Herbert Lash
NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week.
The three main indexes on Wall Street also fell on reports that Biden planned to raise income taxes on the wealthy, a proposal some said would be hard to pass in Congress.
"If it had a chance of passing, we'd be down 2,000 points," said Thomas Hayes, chairman and managing member at hedge fund Great Hill Capital LLC.
Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago, said when a proposal is floated about raising taxes or capital gains, everybody gets excited, sells first and asks questions later.
"It is more of a short-term, knee-jerk reaction," he said.
Biden will propose raising the marginal income tax rate to 39.6% from 37% and nearly double capital gains taxes to 39.6% for people earning more than $1 million, sources told Reuters.
The proposal targets about $1 trillion for child care, universal pre-kindergarten education and paid leave for workers, the sources said.
Markets have been listless after the Dow .DJI and S&P 500 .SPX recently scaled all-time peaks as investors await guidance from Microsoft Corp MSFT.O, Google parent Alphabet Inc GOOGL.O and Facebook Inc FB.O when they report earnings next week.
"Until we get out of this information vacuum the market is going to be generally directionless," he said. "All that really matters moving forward is what are those big tech earnings next week?"
During the session, the S&P 500 healthcare sector .SPXHC hit a fresh record high while industrials .SPLRCI were the biggest gainers.
American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. Both stocks fell, with American down 4.5% and Southwest 1.6%.
Investors welcomed data showing the number of Americans filing new claims for unemployment benefits last week dropped to a fresh one-year low. The Labor Department report suggested layoffs were subsiding and expectations were rising for another month of blockbuster job growth in April.
The speedy U.S. vaccination rollout has improved the economic outlook as people plan summer vacations and leisure spending, but a surge in COVID-19 cases in India and elsewhere in Asia has kept investors anxious, Hayes said.
Equities have likely reached a near-term top as expectations are too high, said Randy Frederick, vice president of trading and derivatives at Charles Schwab.
"There's going to be continued positive moves throughout the remainder of the year but we are due for some sort of a pullback in the very short term," he said. "Then the dip buyers will step back in."
First-quarter earnings are expected to increase 31.9% from a year ago, the highest rate since the fourth quarter, according to IBES Refinitiv data.
All 11 S&P 500 sectors closed lower as Microsoft, Apple IncAAPL.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O weighted the most on the downdraft.
The Dow Jones Industrial Average .DJI fell 0.94% to 33,815.9, the S&P 500 .SPX lost 0.92% at 4,134.98, and the Nasdaq Composite .IXIC dropped 0.94% to 13,818.41.
Volume on U.S. exchanges was 10.35 billion shares, compared with the 10.32 billion full-session average over the last 20 trading days.
AT&T Inc T.N beat Wall Street revenue targets as the U.S. economic reopening following pandemic-linked restrictions boosted smartphone sales and the media business. AT&T shares rose 4.2%.
Biogen Inc BIIB.O beat quarterly profit estimates on stronger-than-expected sales for its muscle wasting disorder drug, though concerns over its reliance on its yet-to-be approved Alzheimer's therapy, aducanumab, weighed on shares. Biogen shares fell 4.0%.
Declining issues outnumbered advancing ones on the NYSE by a 1.57-to-1 ratio; on Nasdaq, a 1.04-to-1 ratio favored decliners.
The S&P 500 posted 84 new 52-week highs and no new lows; the Nasdaq Composite recorded 86 new highs and 20 new lows.
(Reporting by Herbert Lash, additional reporting by Lewis Krauskopf in New York, Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva and Richard Chang)
((herb.lash@thomsonreuters.com; 1-646-223-6019; Reuters Messaging: herb.lash.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week. Markets have been listless after the Dow .DJI and S&P 500 .SPX recently scaled all-time peaks as investors await guidance from Microsoft Corp MSFT.O, Google parent Alphabet Inc GOOGL.O and Facebook Inc FB.O when they report earnings next week.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week. The three main indexes on Wall Street also fell on reports that Biden planned to raise income taxes on the wealthy, a proposal some said would be hard to pass in Congress.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week. Biden will propose raising the marginal income tax rate to 39.6% from 37% and nearly double capital gains taxes to 39.6% for people earning more than $1 million, sources told Reuters.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week. Biogen shares fell 4.0%.
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4518.0
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2021-04-22 00:00:00 UTC
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U.S. stocks drop on news of Biden tax proposals
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AAL
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https://www.nasdaq.com/articles/u.s.-stocks-drop-on-news-of-biden-tax-proposals-2021-04-22
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nan
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nan
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By Herbert Lash
NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week.
The three main indexes on Wall Street also fell on reports that Biden planned to raise income taxes on the wealthy, a proposal some said would be hard to pass in Congress.
"If it had a chance of passing, we'd be down 2,000 points," said Thomas Hayes, chairman and managing member at hedge fund Great Hill Capital LLC.
Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago, said when a proposal is floated about raising taxes or capital gains, everybody gets excited, sells first and asks questions later.
"It is more of a short-term, knee-jerk reaction," he said.
Biden will propose raising the marginal income tax rate to 39.6% from 37% and nearly double capital gains taxes to 39.6% for people earning more than $1 million, sources told Reuters.
The proposal targets about $1 trillion for child care, universal pre-kindergarten education and paid leave for workers, the sources said.
Markets have been listless after the Dow .DJI and S&P 500 .SPX scaled all-time peaks last week as investors await guidance from Microsoft Corp MSFT.O, Google parent Alphabet Inc GOOGL.O and Facebook Inc FB.O when they report earnings next week.
"Until we get out of this information vacuum the market is going to be generally directionless," he said. "All that really matters moving forward is what are those big tech earnings next week?"
Earlier in the session the S&P 500 healthcare sector .SPXHC hit a fresh record high while industrials .SPLRCI were the biggest gainers.
American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. Both shares fell.
Investors welcomed data showing the number of Americans filing new claims for unemployment benefits last week dropped to a fresh one-year low. The Labor Department report suggested layoffs were subsiding and expectations were rising for another month of blockbuster job growth in April.
Separately, data showed U.S. home sales fell to a seven-month low in March, as an acute property shortage boosted prices and made owning a house more expensive for some first-time buyers.
The speedy U.S. vaccination rollout has improved the economic outlook as people plan summer vacations and spending on leisure activities, but a surge in COVID-19 cases in India and elsewhere in Asia has kept investors anxious, Hayes said.
Equities have likely reached a near-term top as expectations are too high, said Randy Frederick, vice president of trading and derivatives at Charles Schwab.
"What moves markets most of the time is not the actual earnings results but the results versus expectations," he said. "We've had pretty spectacular results overall."
First-quarter earnings are expected to increase 31.9% from a year ago, the highest rate since the fourth-quarter of 2010, according to IBES Refinitiv data.
All 11 S&P 500 sectors closed lower as Microsoft, Apple Inc, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O weighted the most on the downdraft.
Unofficially, the Dow Jones Industrial Average .DJI fell 0.94%, the S&P 500 .SPX lost 0.92% and the Nasdaq Composite .IXIC dropped 0.94%.
AT&T Inc T.N beat Wall Street revenue targets as the reopening of the U.S. economy following pandemic-linked restrictions boosted smartphone sales and the media business.
Chipmaker Intel Corp INTC.O is expected to post a drop in first-quarter revenue later in the day, with analysts looking forward to updates on its U.S. manufacturing plants and chips for automakers amid a global microchip supply shortage.
Biogen Inc BIIB.O beat estimates for quarterly profit on stronger-than-expected sales for its muscle wasting disorder drug, though concerns over its reliance on its yet-to-be approved Alzheimer's therapy, aducanumab, weighed on shares.
(Reporting by Herbert Lash, additional reporting by Lewis Krauskopf in New York, Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva and Richard Chang)
((herb.lash@thomsonreuters.com; 1-646-223-6019; Reuters Messaging: herb.lash.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week. The speedy U.S. vaccination rollout has improved the economic outlook as people plan summer vacations and spending on leisure activities, but a surge in COVID-19 cases in India and elsewhere in Asia has kept investors anxious, Hayes said.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week. The three main indexes on Wall Street also fell on reports that Biden planned to raise income taxes on the wealthy, a proposal some said would be hard to pass in Congress.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week. Biden will propose raising the marginal income tax rate to 39.6% from 37% and nearly double capital gains taxes to 39.6% for people earning more than $1 million, sources told Reuters.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week. The three main indexes on Wall Street also fell on reports that Biden planned to raise income taxes on the wealthy, a proposal some said would be hard to pass in Congress.
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4519.0
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2021-04-22 00:00:00 UTC
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US STOCKS-U.S. stock sink on reports of Biden tax proposals
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AAL
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https://www.nasdaq.com/articles/us-stocks-u.s.-stock-sink-on-reports-of-biden-tax-proposals-2021-04-22
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nan
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nan
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By Herbert Lash
NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, but analysts said the news was an excuse to take profits in a listless market ahead of big tech's earnings next week.
The three main indexes on Wall Street were trending slightly lower when Bloomberg reported Biden also planned to raise income taxes for the wealthy, a proposal some said would be hard to pass in Congress.
"If it had a chance of passing, we'd be down 2,000 points," said Thomas Hayes, chairman and managing member at hedge fund Great Hill Capital LLC.
Biden will propose raising the marginal income tax rate to 39.6% from 37% and nearly double taxes on capital gains to 39.6% for people earning more than $1 million, sources told Reuters.
Markets have been listless as investors await guidance from Microsoft Corp MSFT.O, Google parent Alphabet Inc GOOGL.O and Facebook Inc FB.O when they report earnings next week, Hayes said.
"Until we get out of this information vacuum the market is going to be generally directionless," he said. "All that really matters moving forward is what are those big tech earnings next week?"
Earlier in the session the S&P 500 healthcare sector .SPXHC hit a fresh record high while industrials .SPLRCI were the biggest gainers.
American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. Both shares fell, with American down 3.3% and Southwest 0.2%.
Investors welcomed data showing the number of Americans filing new claims for unemployment benefits last week dropped to a fresh one-year low. The Labor Department report suggested layoffs were subsiding and expectations were rising for another month of blockbuster job growth in April.
Separately, data showed U.S. home sales fell to a seven-month low in March, as an acute property shortage boosted prices and made owning a house more expensive for some first-time buyers.
The speedy U.S. vaccination rollout has improved the economic outlook as people plan summer vacations or spending on leisure activities, while giving a solid start to the first-quarter earnings season.
However, a surge in COVID-19 cases in India and elsewhere in Asia has kept investors anxious, Hayes said.
The Dow Jones Industrial Average .DJI fell 0.89%, the S&P 500 .SPX lost 0.78% and the Nasdaq Composite .IXIC dropped 0.74%.
Chipmaker Intel Corp INTC.O is expected to post a drop in first-quarter revenue later in the day, with analysts looking forward to updates on its U.S. manufacturing plants and chips for automakers amid a global microchip supply shortage. Its shares fell 1.1%.
Declining issues outnumbered advancing ones on the NYSE by a 1.40-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favored advancers.
The S&P 500 posted 83 new 52-week highs and no new lows; the Nasdaq Composite recorded 83 new highs and 16 new lows.
(Reporting by Herbert Lash, additional reporting by Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva and Richard Chang)
((herb.lash@thomsonreuters.com; 1-646-223-6019; Reuters Messaging: herb.lash.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, but analysts said the news was an excuse to take profits in a listless market ahead of big tech's earnings next week. Separately, data showed U.S. home sales fell to a seven-month low in March, as an acute property shortage boosted prices and made owning a house more expensive for some first-time buyers.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, but analysts said the news was an excuse to take profits in a listless market ahead of big tech's earnings next week. The three main indexes on Wall Street were trending slightly lower when Bloomberg reported Biden also planned to raise income taxes for the wealthy, a proposal some said would be hard to pass in Congress.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, but analysts said the news was an excuse to take profits in a listless market ahead of big tech's earnings next week. Markets have been listless as investors await guidance from Microsoft Corp MSFT.O, Google parent Alphabet Inc GOOGL.O and Facebook Inc FB.O when they report earnings next week, Hayes said.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported smaller-than-expected quarterly losses, signaling a revival in travel demand. By Herbert Lash NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, but analysts said the news was an excuse to take profits in a listless market ahead of big tech's earnings next week. Both shares fell, with American down 3.3% and Southwest 0.2%.
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4520.0
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2021-04-22 00:00:00 UTC
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Top Cyclical Stocks Worth Investing In? 4 To Consider
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AAL
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https://www.nasdaq.com/articles/top-cyclical-stocks-worth-investing-in-4-to-consider-2021-04-22
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Could These Be The Top Cyclical Stocks In The Stock Market Today?
Cyclical stocks are likely among the most trending stocks in the stock market today. Why? Well, for starters, cyclical stocks tend to follow the flow of the economy. Accordingly, there has been a slew of positive figures pointing towards broader economic recovery lately. Just this morning, the U.S. Labor Department revealed that there were 547,000 first-time unemployment insurance claims last week. Notably, this marks another pandemic-era low following last week’s 576,000 claims, below the Dow Jones estimate of 603,000. On this news, it would not surprise me to see investors looking out for the top cyclical stocks now.
After all, seasoned investors such as National Securities’ chief market strategist, Art Hogan, appear bullish on cyclical stocks now. Hogan said in a recent CNBC interview that it is important to have “a balance” of growth stocks and cyclical stocks now. In turn, he also argues that rebalancing between the two every couple of months puts investors “in a position to beat the S&P handily”. Evidently, both Southwest Airlines (NYSE: LUV) and Carnival Corporation (NYSE: CCL) continue to outpace the S&P 500 threefold year-to-date. As pandemic conditions continue to improve, I could see this trend continue. Having read till this point, you might be interested to invest in some of the top cyclical stocks on the stock market now. Should that be the case, here are four in focus now.
Cyclical Stocks To Buy [Or Sell] Right Now
American Airlines Group Inc. (NASDAQ: AAL)
AT&T Inc. (NYSE: T)
Pool Corporation (NASDAQ: POOL)
Norwegian Cruise Line Holdings (NYSE: NCLH)
American Airlines Group Inc.
American Airlines (AAL) is one of the largest airlines in the world. Pre-pandemic, it offered nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries. The company also has a cargo division that provides a range of freight and mail services with facilities and interline connections available across the globe. AAL stock currently trades at $20.45 as of 1:59 p.m. ET and is up by over 35% year-to-date. Today, the company reported its first-quarter financial results and continues to see a recovery in demand for air travel.
Source: TD Ameritrade TOS
In detail, revenue for the quarter was $4 billion. Despite the airline industry being badly hit last year, the company could be on the verge of a comeback. It has managed to raise $10 billion through debt offering and this could help the company weather through what hopefully could be the last leg of the pandemic. AAL also ended the quarter with approximately $17.3 billion in total available liquidity.
AAL’s Chairman and CEO Doug Parker had this to say, “Looking forward, with the momentum underway from the first quarter, we see signs of continued recovery in demand. We remain confident the network enhancements, customer-focused improvements, and efficiency measures we’ve put into place will ensure American is well-positioned for the recovery.” Given all of this, should you consider buying AAL stock ahead of the economy fully reopening?
[Read More] Best Stocks To Buy Now? 4 Software Stocks For Your Watchlist
AT&T Inc.
AT&T is a multinational conglomerate holding company with headquarters in Texas. It is a provider of telecommunications, media, and technology services globally. Through the company’s communications segment, it provides wireless and wireline telecom to consumers. AT&T’s WarnerMedia segment develops, produces, and distributes feature films, television, and gaming among others. T stock currently trades at $31.21 per share as of 2:00 p.m. ET. The company today reported its first-quarter results.
Source: TD Ameritrade TOS
In it, the company reported consolidated revenues of $43.9 billion. AT&T also posted a diluted earnings per share of $1.04, up by 65% compared to a year ago. Its cash from operations increased by 12% to $9.9 billion. Also, the company ended the quarter with $5.9 billion in cash. It continues to excel in growing customer relationships in its market focus areas of mobility, fiber, and HBO Max.
For instance, HBO Max subscribers increased to nearly 64 million globally during the quarter. AT&T also continues to increase penetration in markets involving fiber broadband. With impressive financials, will you consider adding T stock to your portfolio?
Read More
Best Gold Stocks To Watch This Week? 4 Names To Know
Are These The Best Airline Stocks To Buy Amid The Positive Vaccine News?
Pool Corporation
Pool is the world’s largest wholesale distributor of swimming pools and related outdoor living products. It operates over 395 sales centers across North America, Europe, and Australia. Impressively, it has distributed more than 200,000 national brand and private label products to roughly 120,000 wholesale customers. POOL stock currently trades at $412.15 as of 2:01 p.m. ET and has been up by over 25% since March. Today, the company reported record financials for its first quarter of 2021. Pool also increased its 2021 earnings guidance in light of this.
Source: TD Ameritrade TOS
Diving into its financials, the company reported record net sales of over $1 billion for the quarter, a 56% increase year-over-year. Its diluted earnings per share increased by 223% to a record $2.42. This record quarter seems to come from elevated demand for residential pool products, driven by home-centric trends that were influenced by the pandemic.
Looking ahead, the company expects to achieve strong growth tempered by tougher comps in the back half of the year. It is also well-positioned to accomplish its strategic initiatives given the circumstances. All things considered, will you buy POOL stock?
[Read More] 4 Hot Retail Stocks To Watch In April
Norwegian Cruise Line Holdings
Last but not least, we have Norwegian Cruise Line Holdings (NCLH). In short, the company is among the largest cruise line operators globally, in terms of passengers. By NCLH’s estimates, the company boasts a combined fleet of 28 ships, offering voyages to over 490 destinations worldwide.
Source: TD Ameritrade TOS
If that wasn’t enough, NCLH is also among the key cruise line players in active discussions with the CDC to restart cruise operations. With the company’s portfolio and influence in the industry, investors may be watching NCLH stock closely now. Likewise, the company’s shares are currently looking at gains of over 170% in the past year. Could it be worth investing in right now?
Well, Goldman Sachs (NYSE: GS) analyst Stephen Grambling appears to believe so. Earlier this week, Grambling hit NCLH stock with a buy rating, raising his price target from $27 to $37 a share. Specifically, he argues that NCLH has “industry-leading capacity growth”. Bear in mind, this is after considering its larger peers such as Carnival and Royal Caribbean Cruises (NYSE: RCL). The likes of which Goldman Sachs rates at a Neutral as of now. Time will tell if this holds to be true. In the meantime, would you consider NCLH stock a buy right now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We remain confident the network enhancements, customer-focused improvements, and efficiency measures we’ve put into place will ensure American is well-positioned for the recovery.” Given all of this, should you consider buying AAL stock ahead of the economy fully reopening? Cyclical Stocks To Buy [Or Sell] Right Now American Airlines Group Inc. (NASDAQ: AAL) AT&T Inc. (NYSE: T) Pool Corporation (NASDAQ: POOL) Norwegian Cruise Line Holdings (NYSE: NCLH) American Airlines Group Inc. American Airlines (AAL) is one of the largest airlines in the world. AAL stock currently trades at $20.45 as of 1:59 p.m.
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Cyclical Stocks To Buy [Or Sell] Right Now American Airlines Group Inc. (NASDAQ: AAL) AT&T Inc. (NYSE: T) Pool Corporation (NASDAQ: POOL) Norwegian Cruise Line Holdings (NYSE: NCLH) American Airlines Group Inc. American Airlines (AAL) is one of the largest airlines in the world. AAL stock currently trades at $20.45 as of 1:59 p.m. AAL also ended the quarter with approximately $17.3 billion in total available liquidity.
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Cyclical Stocks To Buy [Or Sell] Right Now American Airlines Group Inc. (NASDAQ: AAL) AT&T Inc. (NYSE: T) Pool Corporation (NASDAQ: POOL) Norwegian Cruise Line Holdings (NYSE: NCLH) American Airlines Group Inc. American Airlines (AAL) is one of the largest airlines in the world. AAL stock currently trades at $20.45 as of 1:59 p.m. AAL also ended the quarter with approximately $17.3 billion in total available liquidity.
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Cyclical Stocks To Buy [Or Sell] Right Now American Airlines Group Inc. (NASDAQ: AAL) AT&T Inc. (NYSE: T) Pool Corporation (NASDAQ: POOL) Norwegian Cruise Line Holdings (NYSE: NCLH) American Airlines Group Inc. American Airlines (AAL) is one of the largest airlines in the world. AAL stock currently trades at $20.45 as of 1:59 p.m. AAL also ended the quarter with approximately $17.3 billion in total available liquidity.
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4521.0
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2021-04-22 00:00:00 UTC
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US STOCKS-S&P 500, Dow subdued as COVID-19 cases rise globally
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AAL
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https://www.nasdaq.com/articles/us-stocks-sp-500-dow-subdued-as-covid-19-cases-rise-globally-2021-04-22
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By Shivani Kumaresan and Shreyashi Sanyal
April 22 (Reuters) - The S&P 500 and the Dow edged lower on Thursday as a resurgence of COVID-19 cases globally sapped appetite for stocks, while market participants digested earnings from U.S. airlines and AT&T, along with mixed readings on economic data.
Investor sentiment gradually improved by early afternoon, with seven of the 11 main S&P 500 sectors rising. The S&P 500 healthcare sector .SPXHC hit a fresh record high, while industrials .SPLRCI were the biggest gainers.
Supporting the mood was data showing the number of Americans filing new claims for unemployment benefits last week dropped to a fresh one-year low.
The Labor Department report suggested layoffs were subsiding and expectations were rising for another month of blockbuster job growth in April.
Investors are now awaiting quarterly results from technology behemoths next week to provide markets with some direction. Shares of Apple Inc AAPL.O rose 0.3%, helping the tech-heavy Nasdaq .IXIC remain afloat.
"The most important catalyst is waiting for key FAANG earnings next week, that's going to tell us the next 50 points on the S&P, either up or down ... And in that information vacuum the market really is struggling for direction," Great Hill Capital Chairman Thomas Hayes said.
American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported a smaller-than-expected quarterly loss, signaling a revival in travel demand. The performance of their shares was mixed though, with Southwest rising 1.5% and American Airlines falling 0.7%.
Shares of AT&T Inc T.N jumped 4.3% after the company's wireless subscriber additions trounced analysts' estimates.
Separately, data showed U.S. home sales fell to a seven-month low in March, pulled lower by an acute property shortage, which is boosting prices and making owning a house more expensive for some first-time buyers.
Speedy vaccination rollouts in the United States has improved the pace of economic recovery, infused confidence among people and given a solid start to the first-quarter earnings season.
However, a surge in COVID-19 cases in India and elsewhere in Asia has kept investors guarded.
"The market is a little bit concerned the coronavirus cases flaring up in India and in parts of Asia which have not had vaccine rollouts as strongly as we had in the U.S.," Hayes said.
At 12:05 p.m. ET the Dow Jones Industrial Average .DJI was down 64.28 points, or 0.19%, at 34,073.03, the S&P 500 .SPX was down 1.51 points, or 0.04%, at 4,171.91 and the Nasdaq Composite .IXIC was up 29.57 points, or 0.21%, at 13,979.79.
Chipmaker Intel Corp INTC.O is expected to post a drop in first-quarter revenue later in the day, with analysts looking forward to updates on its U.S. manufacturing plants and chips for automakers amid a global microchip supply shortage. Its shares fell 1.1%.
Advancing issues outnumbered decliners by a 1.48-to-1 ratio on the NYSE and by a 2.35-to-1 ratio on the Nasdaq.
The S&P index recorded 76 new 52-week highs and no new low, while the Nasdaq recorded 74 new highs and seven new lows.
(Reporting by Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
The views and 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 and Southwest Airlines Co LUV.N reported a smaller-than-expected quarterly loss, signaling a revival in travel demand. By Shivani Kumaresan and Shreyashi Sanyal April 22 (Reuters) - The S&P 500 and the Dow edged lower on Thursday as a resurgence of COVID-19 cases globally sapped appetite for stocks, while market participants digested earnings from U.S. airlines and AT&T, along with mixed readings on economic data. Separately, data showed U.S. home sales fell to a seven-month low in March, pulled lower by an acute property shortage, which is boosting prices and making owning a house more expensive for some first-time buyers.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported a smaller-than-expected quarterly loss, signaling a revival in travel demand. By Shivani Kumaresan and Shreyashi Sanyal April 22 (Reuters) - The S&P 500 and the Dow edged lower on Thursday as a resurgence of COVID-19 cases globally sapped appetite for stocks, while market participants digested earnings from U.S. airlines and AT&T, along with mixed readings on economic data. The performance of their shares was mixed though, with Southwest rising 1.5% and American Airlines falling 0.7%.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported a smaller-than-expected quarterly loss, signaling a revival in travel demand. By Shivani Kumaresan and Shreyashi Sanyal April 22 (Reuters) - The S&P 500 and the Dow edged lower on Thursday as a resurgence of COVID-19 cases globally sapped appetite for stocks, while market participants digested earnings from U.S. airlines and AT&T, along with mixed readings on economic data. The S&P index recorded 76 new 52-week highs and no new low, while the Nasdaq recorded 74 new highs and seven new lows.
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American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N reported a smaller-than-expected quarterly loss, signaling a revival in travel demand. "The most important catalyst is waiting for key FAANG earnings next week, that's going to tell us the next 50 points on the S&P, either up or down ... And in that information vacuum the market really is struggling for direction," Great Hill Capital Chairman Thomas Hayes said. "The market is a little bit concerned the coronavirus cases flaring up in India and in parts of Asia which have not had vaccine rollouts as strongly as we had in the U.S.," Hayes said.
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4522.0
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2021-04-22 00:00:00 UTC
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June 4th Options Now Available For American Airlines Group (AAL)
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AAL
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https://www.nasdaq.com/articles/june-4th-options-now-available-for-american-airlines-group-aal-2021-04-22
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the June 4th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 4th contracts and identified one put and one call contract of particular interest.
The put contract at the $20.00 strike price has a current bid of 79 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $20.00, but will also collect the premium, putting the cost basis of the shares at $19.21 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $20.84/share today.
Because the $20.00 strike represents an approximate 4% 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 3.95% return on the cash commitment, or 33.53% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $20.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $21.50 strike price has a current bid of $1.06. If an investor was to purchase shares of AAL stock at the current price level of $20.84/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $21.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.25% if the stock gets called away at the June 4th 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 $21.50 strike highlighted in red:
Considering the fact that the $21.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.09% boost of extra return to the investor, or 43.18% 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 $20.84) to be 80%. 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 $21.50 strike highlighted in red: Considering the fact that the $21.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the June 4th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $21.50 strike highlighted in red: Considering the fact that the $21.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the June 4th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 4th 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 $21.50 strike highlighted in red: Considering the fact that the $21.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the June 4th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 4th 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 $21.50 strike highlighted in red: Considering the fact that the $21.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the June 4th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 4th contracts and identified one put and one call contract of particular interest.
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4523.0
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2021-04-22 00:00:00 UTC
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Vaccines put U.S. airlines on runway to recovery
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AAL
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https://www.nasdaq.com/articles/vaccines-put-u.s.-airlines-on-runway-to-recovery-2021-04-22
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nan
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By Sanjana Shivdas and Ankit Ajmera
April 22 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday signaled a slower cash burn and pointed to a rebound in summer bookings as accelerated COVID-19 vaccinations make more people confident about traveling again.
After nearly a year in the doldrums due to the pandemic and accompanying travel restrictions, airlines are seeing light at the end of the tunnel with over 50% of the U.S. population having received one dose of the vaccine.
"March was clearly a significant improvement over January and February and guidance is for continued improvement into the June quarter and the summer beyond it," Cowen and Co analyst Helane Becker said.
"The airlines are turning their attention to paying down some of the debt they took on to get through the pandemic which is encouraging."
Southwest forecast second-quarter average daily core cash burn between $2 million and $4 million, compared with about $13 million per day in the previous three months.
American, on the other hand, said average daily cash burn slowed to $4 million in March, while its overall average daily cash burn rate was about $27 million in the first quarter.
Southwest said it expects second-quarter capacity to rise about 90% from a year earlier, while American sees capacity to be down between 20% and 25% compared with 2019, slowing from a 35% fall in the first quarter.
Southwest shares were up 1%, while American Airlines stock was down marginally.
American has a bigger exposure to international travel, which is not expected to rebound in the summer as most borders remained closed, analysts have said.
"I know (the Biden administration) understands the importance of restoring international travel to the economy," American Airlines Chief Executive Officer Doug Parker said.
"We all need to go look at this in a risk-based way. No one wants to rush for certain, and no one's pushing that either."
Meanwhile, operating revenue at both the companies fell more than 50%, but slowed from an about 65% fall in the fourth quarter.
(Reporting by Sanjana Shivdas and Ankit Ajmera in Bengaluru; Editing by Sriraj Kalluvila)
((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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By Sanjana Shivdas and Ankit Ajmera April 22 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday signaled a slower cash burn and pointed to a rebound in summer bookings as accelerated COVID-19 vaccinations make more people confident about traveling again. After nearly a year in the doldrums due to the pandemic and accompanying travel restrictions, airlines are seeing light at the end of the tunnel with over 50% of the U.S. population having received one dose of the vaccine. American has a bigger exposure to international travel, which is not expected to rebound in the summer as most borders remained closed, analysts have said.
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By Sanjana Shivdas and Ankit Ajmera April 22 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday signaled a slower cash burn and pointed to a rebound in summer bookings as accelerated COVID-19 vaccinations make more people confident about traveling again. Southwest forecast second-quarter average daily core cash burn between $2 million and $4 million, compared with about $13 million per day in the previous three months. American, on the other hand, said average daily cash burn slowed to $4 million in March, while its overall average daily cash burn rate was about $27 million in the first quarter.
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By Sanjana Shivdas and Ankit Ajmera April 22 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday signaled a slower cash burn and pointed to a rebound in summer bookings as accelerated COVID-19 vaccinations make more people confident about traveling again. Southwest forecast second-quarter average daily core cash burn between $2 million and $4 million, compared with about $13 million per day in the previous three months. American, on the other hand, said average daily cash burn slowed to $4 million in March, while its overall average daily cash burn rate was about $27 million in the first quarter.
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By Sanjana Shivdas and Ankit Ajmera April 22 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday signaled a slower cash burn and pointed to a rebound in summer bookings as accelerated COVID-19 vaccinations make more people confident about traveling again. Southwest said it expects second-quarter capacity to rise about 90% from a year earlier, while American sees capacity to be down between 20% and 25% compared with 2019, slowing from a 35% fall in the first quarter. American has a bigger exposure to international travel, which is not expected to rebound in the summer as most borders remained closed, analysts have said.
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4524.0
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2021-04-22 00:00:00 UTC
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Pre-Market Most Active for Apr 22, 2021 : SKLZ, T, FSR, HZAC, F, AAL, GSK, CLOU, SQQQ, FCEL, MVIS, CAN
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-apr-22-2021-%3A-sklz-t-fsr-hzac-f-aal-gsk-clou-sqqq-fcel-mvis-can
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The NASDAQ 100 Pre-Market Indicator is down -1.48 to 13,933.67. The total Pre-Market volume is currently 14,309,729 shares traded.
The following are the most active stocks for the pre-market session:
Skillz Inc. (SKLZ) is +2.34 at $19.10, with 5,390,070 shares traded. As reported by Zacks, the current mean recommendation for SKLZ is in the "buy range".
AT&T Inc. (T) is +0.99 at $31.10, with 2,904,967 shares traded. Business Wire Reports: AT&T Reports Fourth-Quarter and Full-Year Results
Fisker Inc. (FSR) is -1.55 at $13.60, with 1,659,202 shares traded. As reported by Zacks, the current mean recommendation for FSR is in the "buy range".
Horizon Acquisition Corporation (HZAC) is +0.3025 at $10.10, with 1,478,642 shares traded.
Ford Motor Company (F) is +0.28 at $12.01, with 1,204,998 shares traded.F is scheduled to provide an earnings report on 4/28/2021, for the fiscal quarter ending Mar2021. The consensus earnings per share forecast is 0.15 per share, which represents a -23 percent increase over the EPS one Year Ago
American Airlines Group, Inc. (AAL) is +0.59 at $21.60, with 1,042,932 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 $-2.41. GlobeNewswire Reports: American Airlines Reports Fourth-Quarter and Full-Year 2020 Financial Results
GlaxoSmithKline PLC (GSK) is -0.38 at $37.87, with 1,040,465 shares traded.GSK is scheduled to provide an earnings report on 4/28/2021, for the fiscal quarter ending Mar2021. The consensus earnings per share forecast is 0.64 per share, which represents a 97 percent increase over the EPS one Year Ago
Global X Cloud Computing ETF (CLOU) is +0.0033 at $26.75, with 800,300 shares traded. This represents a 63.13% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +0.05 at $10.85, with 639,453 shares traded. This represents a 2.94% increase from its 52 Week Low.
FuelCell Energy, Inc. (FCEL) is +0.39 at $9.68, with 578,029 shares traded. FCEL's current last sale is 96.8% of the target price of $10.
Microvision, Inc. (MVIS) is +0.925 at $13.42, with 538,396 shares traded.
Canaan Inc. (CAN) is +0.54 at $14.31, with 469,084 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 +0.59 at $21.60, with 1,042,932 shares traded. Ford Motor Company (F) is +0.28 at $12.01, with 1,204,998 shares traded.F is scheduled to provide an earnings report on 4/28/2021, for the fiscal quarter ending Mar2021. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021.
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American Airlines Group, Inc. (AAL) is +0.59 at $21.60, with 1,042,932 shares traded. The consensus earnings per share forecast is 0.15 per share, which represents a -23 percent increase over the EPS one Year Ago GlobeNewswire Reports: American Airlines Reports Fourth-Quarter and Full-Year 2020 Financial Results
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American Airlines Group, Inc. (AAL) is +0.59 at $21.60, with 1,042,932 shares traded. AT&T Inc. (T) is +0.99 at $31.10, with 2,904,967 shares traded. The consensus earnings per share forecast is 0.15 per share, which represents a -23 percent increase over the EPS one Year Ago
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American Airlines Group, Inc. (AAL) is +0.59 at $21.60, with 1,042,932 shares traded. The total Pre-Market volume is currently 14,309,729 shares traded. AT&T Inc. (T) is +0.99 at $31.10, with 2,904,967 shares traded.
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4525.0
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2021-04-22 00:00:00 UTC
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American Airlines Sees Signs Of Continued Recovery In Demand; Stock Up
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AAL
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https://www.nasdaq.com/articles/american-airlines-sees-signs-of-continued-recovery-in-demand-stock-up-2021-04-22
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nan
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nan
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(RTTNews) - While reporting narrower net loss in its first quarter, American Airlines Group Inc. (AAL) on Thursday said it expects its second-quarter total revenue to be down approximately 40 percent compared to the pre-covid levels in 2019.
Based on current trends, American expects its second-quarter capacity to be down 20 to 25 percent compared to the second quarter of 2019. The company also expects its second- quarter adjusted pre-tax margin to be between negative 27 percent and negative 30 percent.
The company will continue to match its forward capacity with observed bookings trends.
American's Chairman and CEO Doug Parker said, "Looking forward, with the momentum underway from the first quarter, we see signs of continued recovery in demand. We remain confident the network enhancements, customer-focused improvements and efficiency measures we've put into place will ensure American is well-positioned for the recovery."
For the first quarter, net loss was $1.25 billion, or $1.97 per share, compared to last year's loss of $2.24 billion or $5.26 per share. Excluding net special items, first-quarter net loss was $2.7 billion, or $4.32 per share.
On average, 17 analysts polled by Thomson Reuters expected loss of $4.30 per share. Analysts' estimates typically exclude special items.
Total operating revenues were $4.01 billion, down 53 percent from last year's $8.52 billion, on a 39 percent year-over-year reduction in total available seat miles or ASMs. Analysts were looking for revenues of $4.04 billion.
Passenger revenues fell 58.6 percent from last year to $3.18 billion. Cargo revenues more than doubled from last year.
In pre-market activity on Nasdaq, American Airlines shares were trading at $21.63, up 2.95 percent.
The views and 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) - While reporting narrower net loss in its first quarter, American Airlines Group Inc. (AAL) on Thursday said it expects its second-quarter total revenue to be down approximately 40 percent compared to the pre-covid levels in 2019. American's Chairman and CEO Doug Parker said, "Looking forward, with the momentum underway from the first quarter, we see signs of continued recovery in demand. We remain confident the network enhancements, customer-focused improvements and efficiency measures we've put into place will ensure American is well-positioned for the recovery."
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(RTTNews) - While reporting narrower net loss in its first quarter, American Airlines Group Inc. (AAL) on Thursday said it expects its second-quarter total revenue to be down approximately 40 percent compared to the pre-covid levels in 2019. Based on current trends, American expects its second-quarter capacity to be down 20 to 25 percent compared to the second quarter of 2019. For the first quarter, net loss was $1.25 billion, or $1.97 per share, compared to last year's loss of $2.24 billion or $5.26 per share.
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(RTTNews) - While reporting narrower net loss in its first quarter, American Airlines Group Inc. (AAL) on Thursday said it expects its second-quarter total revenue to be down approximately 40 percent compared to the pre-covid levels in 2019. For the first quarter, net loss was $1.25 billion, or $1.97 per share, compared to last year's loss of $2.24 billion or $5.26 per share. Total operating revenues were $4.01 billion, down 53 percent from last year's $8.52 billion, on a 39 percent year-over-year reduction in total available seat miles or ASMs.
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(RTTNews) - While reporting narrower net loss in its first quarter, American Airlines Group Inc. (AAL) on Thursday said it expects its second-quarter total revenue to be down approximately 40 percent compared to the pre-covid levels in 2019. Based on current trends, American expects its second-quarter capacity to be down 20 to 25 percent compared to the second quarter of 2019. For the first quarter, net loss was $1.25 billion, or $1.97 per share, compared to last year's loss of $2.24 billion or $5.26 per share.
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4526.0
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2021-04-22 00:00:00 UTC
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American Airlines loss narrows as travel demand picks up
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AAL
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https://www.nasdaq.com/articles/american-airlines-loss-narrows-as-travel-demand-picks-up-2021-04-22-0
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nan
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nan
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Adds share movement, details on cash burn, total revenue
April 22 (Reuters) - American Airlines Group Inc AAL.O reported a smaller quarterly loss on Thursday as rising vaccination rates prompted more people to opt for air travel.
Shares of the airline rose 3.2% to $21.66 in premarket trade as it said it reduced its cash burn rate to about $27 million a day in the first quarter, compared with $30 million in the previous quarter.
Demand for air travel is expected to pick up as more people receive vaccines, leading to a drop in COVID-19 infection rates and hospitalizations.
"Looking forward, with the momentum underway from the first quarter, we see signs of continued recovery in demand," Chief Executive Officer Dough Parker said in a statement.
The company posted a net loss of $1.25 billion, or $1.97 per share, for the quarter ended March 31, compared with a loss of $2.24 billion, or $5.26 per share, a year earlier.
On an adjusted basis, the company lost $4.32 per share.
Total operating revenue fell 52.9% to $4.01 billion.
American Airlines ended the quarter with about $17.3 billion in available liquidity.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D'Silva, Aditya Soni)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and 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 share movement, details on cash burn, total revenue April 22 (Reuters) - American Airlines Group Inc AAL.O reported a smaller quarterly loss on Thursday as rising vaccination rates prompted more people to opt for air travel. Demand for air travel is expected to pick up as more people receive vaccines, leading to a drop in COVID-19 infection rates and hospitalizations. "Looking forward, with the momentum underway from the first quarter, we see signs of continued recovery in demand," Chief Executive Officer Dough Parker said in a statement.
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Adds share movement, details on cash burn, total revenue April 22 (Reuters) - American Airlines Group Inc AAL.O reported a smaller quarterly loss on Thursday as rising vaccination rates prompted more people to opt for air travel. The company posted a net loss of $1.25 billion, or $1.97 per share, for the quarter ended March 31, compared with a loss of $2.24 billion, or $5.26 per share, a year earlier. American Airlines ended the quarter with about $17.3 billion in available liquidity.
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Adds share movement, details on cash burn, total revenue April 22 (Reuters) - American Airlines Group Inc AAL.O reported a smaller quarterly loss on Thursday as rising vaccination rates prompted more people to opt for air travel. Shares of the airline rose 3.2% to $21.66 in premarket trade as it said it reduced its cash burn rate to about $27 million a day in the first quarter, compared with $30 million in the previous quarter. The company posted a net loss of $1.25 billion, or $1.97 per share, for the quarter ended March 31, compared with a loss of $2.24 billion, or $5.26 per share, a year earlier.
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Adds share movement, details on cash burn, total revenue April 22 (Reuters) - American Airlines Group Inc AAL.O reported a smaller quarterly loss on Thursday as rising vaccination rates prompted more people to opt for air travel. "Looking forward, with the momentum underway from the first quarter, we see signs of continued recovery in demand," Chief Executive Officer Dough Parker said in a statement. The company posted a net loss of $1.25 billion, or $1.97 per share, for the quarter ended March 31, compared with a loss of $2.24 billion, or $5.26 per share, a year earlier.
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4527.0
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2021-04-22 00:00:00 UTC
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American Airlines loss narrows as travel demand picks up
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AAL
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https://www.nasdaq.com/articles/american-airlines-loss-narrows-as-travel-demand-picks-up-2021-04-22
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nan
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nan
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April 22 (Reuters) - American Airlines Group Inc AAL.O on Thursday reported a smaller quarterly loss as rising vaccination rates prompted more people to opt for air travel.
The company posted a net loss of $1.25 billion, or $1.97 per share, for the first quarter ended March 31, compared with a loss of $2.24 billion, or $5.26 per share, a year earlier.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D'Silva)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 22 (Reuters) - American Airlines Group Inc AAL.O on Thursday reported a smaller quarterly loss as rising vaccination rates prompted more people to opt for air travel. The company posted a net loss of $1.25 billion, or $1.97 per share, for the first quarter ended March 31, compared with a loss of $2.24 billion, or $5.26 per share, a year earlier. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D'Silva) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 22 (Reuters) - American Airlines Group Inc AAL.O on Thursday reported a smaller quarterly loss as rising vaccination rates prompted more people to opt for air travel. The company posted a net loss of $1.25 billion, or $1.97 per share, for the first quarter ended March 31, compared with a loss of $2.24 billion, or $5.26 per share, a year earlier. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D'Silva) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 22 (Reuters) - American Airlines Group Inc AAL.O on Thursday reported a smaller quarterly loss as rising vaccination rates prompted more people to opt for air travel. The company posted a net loss of $1.25 billion, or $1.97 per share, for the first quarter ended March 31, compared with a loss of $2.24 billion, or $5.26 per share, a year earlier. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D'Silva) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 22 (Reuters) - American Airlines Group Inc AAL.O on Thursday reported a smaller quarterly loss as rising vaccination rates prompted more people to opt for air travel. The company posted a net loss of $1.25 billion, or $1.97 per share, for the first quarter ended March 31, compared with a loss of $2.24 billion, or $5.26 per share, a year earlier. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D'Silva) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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4528.0
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2021-04-22 00:00:00 UTC
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American Airlines Group Q1 21 Earnings Conference Call At 8:30 AM ET
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-q1-21-earnings-conference-call-at-8%3A30-am-et-2021-04-22
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nan
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on April 22, 2021, to discuss Q1 21 earnings results.
To access the live webcast, log on to http://aa.com/investorrelations
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on April 22, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on April 22, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on April 22, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on April 22, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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4529.0
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2021-04-22 00:00:00 UTC
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Miner Anglo American's first-quarter production up 3%
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AAL
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https://www.nasdaq.com/articles/miner-anglo-americans-first-quarter-production-up-3-2021-04-22
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nan
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nan
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Adds detail, background
LONDON, April 22 (Reuters) - Mining group Anglo American's AAL.L first-quarter production rose 3% year on year despite some operations running at 95% capacity because of COVID-19 disruptions, it said on Thursday.
Copper production climbed 9% to 160,000 tonnes in the quarter from 147,000 tonnes in the same period last year, but down from 168,000 tonnes in the previous three months. Diamond output slipped 7% year-on-year, partly due to excessive rainfall in southern Africa and a COVID-19-related shutdown in Canada.
Iron ore production was up 1% at 16.2 million tonnes in the first quarter, while production of platinum group metals rose to 1.02 million ounces from 955,000 in the same period a year ago.
Anglo expects copper output to reach between 640,000 tonnes and 680,000 tonnes this year. It also kept its output targets unchanged for other resources, including iron ore and platinum group metals.
But it cut its guidance for metallurgical coal to between 14 and 16 million tonnes from 18-20 million earlier, as the Moranbah operation in Australia remains suspended.
"The company has maintained its full year 2021 production guidance, except for met coal ... we do not see major earnings changes for consensus earnings on the back of production results," Citi analysts said in a note.
The London-listed miner is in the process of spinning off its South African thermal coal business into a new company, as it moves to transition out of assets that mine the most polluting fossil fuel.
"Anglo American's portfolio is increasingly tilted towards future-enabling metals and minerals, with our recently proposed demerger of our thermal coal operations in South Africa moving us further in that direction," Chief Executive Mark Cutifani said in the company's production statement.
(Reporting by Clara Denina. Editing by David Goodman and Mark Potter)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail, background LONDON, April 22 (Reuters) - Mining group Anglo American's AAL.L first-quarter production rose 3% year on year despite some operations running at 95% capacity because of COVID-19 disruptions, it said on Thursday. Diamond output slipped 7% year-on-year, partly due to excessive rainfall in southern Africa and a COVID-19-related shutdown in Canada. The London-listed miner is in the process of spinning off its South African thermal coal business into a new company, as it moves to transition out of assets that mine the most polluting fossil fuel.
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Adds detail, background LONDON, April 22 (Reuters) - Mining group Anglo American's AAL.L first-quarter production rose 3% year on year despite some operations running at 95% capacity because of COVID-19 disruptions, it said on Thursday. Iron ore production was up 1% at 16.2 million tonnes in the first quarter, while production of platinum group metals rose to 1.02 million ounces from 955,000 in the same period a year ago. "Anglo American's portfolio is increasingly tilted towards future-enabling metals and minerals, with our recently proposed demerger of our thermal coal operations in South Africa moving us further in that direction," Chief Executive Mark Cutifani said in the company's production statement.
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Adds detail, background LONDON, April 22 (Reuters) - Mining group Anglo American's AAL.L first-quarter production rose 3% year on year despite some operations running at 95% capacity because of COVID-19 disruptions, it said on Thursday. Copper production climbed 9% to 160,000 tonnes in the quarter from 147,000 tonnes in the same period last year, but down from 168,000 tonnes in the previous three months. Iron ore production was up 1% at 16.2 million tonnes in the first quarter, while production of platinum group metals rose to 1.02 million ounces from 955,000 in the same period a year ago.
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Adds detail, background LONDON, April 22 (Reuters) - Mining group Anglo American's AAL.L first-quarter production rose 3% year on year despite some operations running at 95% capacity because of COVID-19 disruptions, it said on Thursday. Copper production climbed 9% to 160,000 tonnes in the quarter from 147,000 tonnes in the same period last year, but down from 168,000 tonnes in the previous three months. Diamond output slipped 7% year-on-year, partly due to excessive rainfall in southern Africa and a COVID-19-related shutdown in Canada.
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4530.0
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2021-04-22 00:00:00 UTC
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Miner Anglo American reports first-quarter production up 3%
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AAL
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https://www.nasdaq.com/articles/miner-anglo-american-reports-first-quarter-production-up-3-2021-04-22
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nan
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nan
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LONDON, April 22 (Reuters) - Mining group Anglo American's AAL.L total first-quarter production rose 3% year on year despite some operations running at 95% capacity because of COVID-19 disruptions, it said on Thursday.
(Reporting by Clara Denina Editing by David Goodman )
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LONDON, April 22 (Reuters) - Mining group Anglo American's AAL.L total first-quarter production rose 3% year on year despite some operations running at 95% capacity because of COVID-19 disruptions, it said on Thursday. (Reporting by Clara Denina Editing by David Goodman ) ((Clara.Denina@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LONDON, April 22 (Reuters) - Mining group Anglo American's AAL.L total first-quarter production rose 3% year on year despite some operations running at 95% capacity because of COVID-19 disruptions, it said on Thursday. (Reporting by Clara Denina Editing by David Goodman ) ((Clara.Denina@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LONDON, April 22 (Reuters) - Mining group Anglo American's AAL.L total first-quarter production rose 3% year on year despite some operations running at 95% capacity because of COVID-19 disruptions, it said on Thursday. (Reporting by Clara Denina Editing by David Goodman ) ((Clara.Denina@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LONDON, April 22 (Reuters) - Mining group Anglo American's AAL.L total first-quarter production rose 3% year on year despite some operations running at 95% capacity because of COVID-19 disruptions, it said on Thursday. (Reporting by Clara Denina Editing by David Goodman ) ((Clara.Denina@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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4531.0
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2021-04-22 00:00:00 UTC
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Boeing still working on fix for 106 grounded 737 MAX planes: FAA
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AAL
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https://www.nasdaq.com/articles/boeing-still-working-on-fix-for-106-grounded-737-max-planes%3A-faa-2021-04-22
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nan
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By David Shepardson
WASHINGTON, April 22 (Reuters) - The Federal Aviation Administration (FAA) on Thursday said 106 Boeing 737 MAX airplanes have been grounded worldwide by an electrical issue and said the U.S. planemaker is still working on a fix.
Boeing disclosed an electrical power system issue on April 7 and recommended operators temporarily remove these airplanes from service.
The problem involved the electrical grounding - or connections designed to maintain safety in the event of a surge of voltage - inside a backup power control system. The FAA said Thursday "subsequent analysis and testing showed the issue could involve additional systems."
The FAA said in a formal notice to international air regulators that 106 airplanes are covered by the notice, including 71 registered in the United States. "All of these airplanes remain on the ground while Boeing continues to develop a proposed fix. The FAA is in contact with the airlines and the manufacturer," the agency added.
The FAA said Boeing's investigation showed the issue could impact the standby power control unit, a circuit breaker panel and main instrument panel.
The notice said the "FAA expects to issue an airworthiness directive mandating corrective action before further flight for all affected airplanes."
Boeing did not immediately comment.
The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines - removed more than 60 jets from service following the notice from Boeing.
The FAA said other carriers impacted 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 FAA said it "verified all operators with affected airplanes have voluntarily taken those aircraft out of service."
(Reporting by David Shepardson Editing by Chizu Nomiyama, Kirsten Donovan)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines - removed more than 60 jets from service following the notice from Boeing. By David Shepardson WASHINGTON, April 22 (Reuters) - The Federal Aviation Administration (FAA) on Thursday said 106 Boeing 737 MAX airplanes have been grounded worldwide by an electrical issue and said the U.S. planemaker is still working on a fix. Boeing disclosed an electrical power system issue on April 7 and recommended operators temporarily remove these airplanes from service.
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The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines - removed more than 60 jets from service following the notice from Boeing. Boeing disclosed an electrical power system issue on April 7 and recommended operators temporarily remove these airplanes from service. The FAA said Boeing's investigation showed the issue could impact the standby power control unit, a circuit breaker panel and main instrument panel.
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The top three U.S. 737 MAX operators - Southwest Airlines LUV.N, American Airlines AAL.O and United Airlines - removed more than 60 jets from service following the notice from Boeing. By David Shepardson WASHINGTON, April 22 (Reuters) - The Federal Aviation Administration (FAA) on Thursday said 106 Boeing 737 MAX airplanes have been grounded worldwide by an electrical issue and said the U.S. planemaker is still working on a fix. The FAA said other carriers impacted 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 - removed more than 60 jets from service following the notice from Boeing. By David Shepardson WASHINGTON, April 22 (Reuters) - The Federal Aviation Administration (FAA) on Thursday said 106 Boeing 737 MAX airplanes have been grounded worldwide by an electrical issue and said the U.S. planemaker is still working on a fix. Boeing disclosed an electrical power system issue on April 7 and recommended operators temporarily remove these airplanes from service.
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4532.0
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2021-04-22 00:00:00 UTC
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US STOCKS-Wall St to open flat as earnings roll in; jobless claims fall
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-to-open-flat-as-earnings-roll-in-jobless-claims-fall-2021-04-22
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nan
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nan
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By Shivani Kumaresan and Shreyashi Sanyal
April 22 (Reuters) - Wall Street's main indexes were set to open flat on Thursday as investors assessed earnings from U.S. airlines and AT&T, while data showed fewer Americans filed fresh claims for unemployment benefits last week.
Shares of American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N rose more than 2% each after the two airlines reported a smaller-than-expected quarterly loss.
Shares of AT&T Inc T.N jumped 4.5% after the company's wireless subscriber additions trounced analysts' estimates.
"The issue for investors in earnings season is whether you'll start to see continued growth in earnings projections or whether you'll start to get a flagging out as it seems like there is some inflation and disruption in the supply chain," said Rick Meckler, partner, Cherry Lane Investments, New Jersey.
"At these elevated levels you continue to need more good news to support higher stock prices."
U.S. stock index futures briefly turned positive after initial claims for state unemployment benefits totaled 547,000 for the week ended April 17 compared to 586,000 in the prior week. The data suggested layoffs were subsiding and strengthened expectations for another month of blockbuster job growth in April.
Wall Street's main indexes closed higher on Wednesday, recovering from a two-day decline, with the economically sensitive value stocks .RLV gaining about 1.1%.
Speedy vaccination rollouts in the United States has improved the pace of economic recovery, infused confidence among people and given a solid start to the first-quarter earnings season. The U.S. economy will grow at its fastest annual pace in decades this year and outperform most of its major peers, with the outlook upgraded sharply, but another COVID-19 surge was the biggest risk over the next three months, a Reuters poll showed.
At 8:43 a.m. ET, Dow e-minis 1YMcv1 were down 4 points, or 0.01%, S&P 500 e-minis EScv1 were up 0.5 points, or 0.01%, and Nasdaq 100 e-minis NQcv1 were down 6.5 points, or 0.05%.
Chipmaker Intel Corp INTC.O is expected to post a drop in first-quarter revenue later in the day, with analysts looking forward to updates on its U.S. manufacturing plants and chips for automakers amid a global microchip supply shortage. Its shares rose 0.2% in premarket trading.
(Reporting by Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N rose more than 2% each after the two airlines reported a smaller-than-expected quarterly loss. By Shivani Kumaresan and Shreyashi Sanyal April 22 (Reuters) - Wall Street's main indexes were set to open flat on Thursday as investors assessed earnings from U.S. airlines and AT&T, while data showed fewer Americans filed fresh claims for unemployment benefits last week. The U.S. economy will grow at its fastest annual pace in decades this year and outperform most of its major peers, with the outlook upgraded sharply, but another COVID-19 surge was the biggest risk over the next three months, a Reuters poll showed.
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Shares of American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N rose more than 2% each after the two airlines reported a smaller-than-expected quarterly loss. By Shivani Kumaresan and Shreyashi Sanyal April 22 (Reuters) - Wall Street's main indexes were set to open flat on Thursday as investors assessed earnings from U.S. airlines and AT&T, while data showed fewer Americans filed fresh claims for unemployment benefits last week. Wall Street's main indexes closed higher on Wednesday, recovering from a two-day decline, with the economically sensitive value stocks .RLV gaining about 1.1%.
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Shares of American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N rose more than 2% each after the two airlines reported a smaller-than-expected quarterly loss. By Shivani Kumaresan and Shreyashi Sanyal April 22 (Reuters) - Wall Street's main indexes were set to open flat on Thursday as investors assessed earnings from U.S. airlines and AT&T, while data showed fewer Americans filed fresh claims for unemployment benefits last week. "The issue for investors in earnings season is whether you'll start to see continued growth in earnings projections or whether you'll start to get a flagging out as it seems like there is some inflation and disruption in the supply chain," said Rick Meckler, partner, Cherry Lane Investments, New Jersey.
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Shares of American Airlines Group Inc AAL.O and Southwest Airlines Co LUV.N rose more than 2% each after the two airlines reported a smaller-than-expected quarterly loss. By Shivani Kumaresan and Shreyashi Sanyal April 22 (Reuters) - Wall Street's main indexes were set to open flat on Thursday as investors assessed earnings from U.S. airlines and AT&T, while data showed fewer Americans filed fresh claims for unemployment benefits last week. Wall Street's main indexes closed higher on Wednesday, recovering from a two-day decline, with the economically sensitive value stocks .RLV gaining about 1.1%.
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4533.0
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2021-04-21 00:00:00 UTC
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American Airlines To Start Hiring Pilots Again
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-start-hiring-pilots-again-2021-04-21
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nan
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nan
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(RTTNews) - American Airlines is planning to resume hiring pilots this year to meet a rebound in travel demand in the summer season, reports said citing a company memo.
The airline is expected to add 300 pilots by the end of the year and double that in 2022.
Chip Long, American's vice president of flight operations, wrote in a staff note, that the return to flying of so many American's pilots and the addition of hundreds more, the resumption of many old routes and the introduction of new destinations are hopeful signs for the company.
The carrier had announced last week its plans to fly more than 90 percent of its 2019 domestic schedule this summer.
The Fort Worth, Texas-based company earlier had stated that it experienced softness in its bookings at the beginning of the first quarter, due to the Centers for Disease Control and Prevention order to require a negative COVID-19 test for entry into the U.S. at the beginning of 2021.
However, American recently experienced strength in domestic and short-haul international bookings, as infection and hospitalization rates have materially declined and vaccine distribution has increased during the first quarter.
In late March, American disclosed in a regulatory filing that it expected its first-quarter system capacity - total available seat miles- to be down about 40% to 45% from first quarter 2019, compared to previous guidance of down 45%.
As of March 26, the company's seven-day moving average of its net bookings is about 90% of the level experienced in 2019, with a domestic load factor of approximately 80% during that same period.
The company now expects the strength in bookings to continue through the end of the first quarter and into the second quarter.
American Airlines in a filing in March had stated that it would send notices to around 13,000 U.S.- based employees regarding possible furloughs, including 1,850 pilots.
American is expected to detail its demand and hiring outlook along with its first-quarter results announcement on Thursday.
United Airlines on April 1 had said it plans to recall its pilots ahead of the summer vacation season, while low-cost carrier Spirit Airlines began training for new pilots in March. JetBlue Airways also announced plans to start hiring pilots later this year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines is planning to resume hiring pilots this year to meet a rebound in travel demand in the summer season, reports said citing a company memo. However, American recently experienced strength in domestic and short-haul international bookings, as infection and hospitalization rates have materially declined and vaccine distribution has increased during the first quarter. In late March, American disclosed in a regulatory filing that it expected its first-quarter system capacity - total available seat miles- to be down about 40% to 45% from first quarter 2019, compared to previous guidance of down 45%.
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(RTTNews) - American Airlines is planning to resume hiring pilots this year to meet a rebound in travel demand in the summer season, reports said citing a company memo. American Airlines in a filing in March had stated that it would send notices to around 13,000 U.S.- based employees regarding possible furloughs, including 1,850 pilots. JetBlue Airways also announced plans to start hiring pilots later this year.
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(RTTNews) - American Airlines is planning to resume hiring pilots this year to meet a rebound in travel demand in the summer season, reports said citing a company memo. Chip Long, American's vice president of flight operations, wrote in a staff note, that the return to flying of so many American's pilots and the addition of hundreds more, the resumption of many old routes and the introduction of new destinations are hopeful signs for the company. United Airlines on April 1 had said it plans to recall its pilots ahead of the summer vacation season, while low-cost carrier Spirit Airlines began training for new pilots in March.
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The company now expects the strength in bookings to continue through the end of the first quarter and into the second quarter. United Airlines on April 1 had said it plans to recall its pilots ahead of the summer vacation season, while low-cost carrier Spirit Airlines began training for new pilots in March. JetBlue Airways also announced plans to start hiring pilots later this year.
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4534.0
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2021-04-21 00:00:00 UTC
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Notable Wednesday Option Activity: OCDX, AAL, SBNY
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AAL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-ocdx-aal-sbny-2021-04-21
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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 Ortho Clinical Diagnostics Holdings plc (Symbol: OCDX), where a total of 4,446 contracts have traded so far, representing approximately 444,600 underlying shares. That amounts to about 44.4% of OCDX's average daily trading volume over the past month of 1.0 million shares. Especially high volume was seen for the $22.50 strike call option expiring May 21, 2021, with 2,068 contracts trading so far today, representing approximately 206,800 underlying shares of OCDX. Below is a chart showing OCDX's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) saw options trading volume of 154,044 contracts, representing approximately 15.4 million underlying shares or approximately 44.2% of AAL's average daily trading volume over the past month, of 34.9 million shares. Especially high volume was seen for the $22 strike call option expiring April 23, 2021, with 11,131 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 $22 strike highlighted in orange:
And Signature Bank (Symbol: SBNY) options are showing a volume of 2,593 contracts thus far today. That number of contracts represents approximately 259,300 underlying shares, working out to a sizeable 44% of SBNY's average daily trading volume over the past month, of 589,220 shares. Especially high volume was seen for the $180 strike put option expiring May 21, 2021, with 458 contracts trading so far today, representing approximately 45,800 underlying shares of SBNY. Below is a chart showing SBNY's trailing twelve month trading history, with the $180 strike highlighted in orange:
For the various different available expirations for OCDX options, AAL options, or SBNY 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 $22 strike call option expiring April 23, 2021, with 11,131 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL. Below is a chart showing OCDX's trailing twelve month trading history, with the $22.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 154,044 contracts, representing approximately 15.4 million underlying shares or approximately 44.2% of AAL's average daily trading volume over the past month, of 34.9 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $22 strike highlighted in orange: And Signature Bank (Symbol: SBNY) options are showing a volume of 2,593 contracts thus far today.
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Below is a chart showing OCDX's trailing twelve month trading history, with the $22.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 154,044 contracts, representing approximately 15.4 million underlying shares or approximately 44.2% of AAL's average daily trading volume over the past month, of 34.9 million shares. Especially high volume was seen for the $22 strike call option expiring April 23, 2021, with 11,131 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 $22 strike highlighted in orange: And Signature Bank (Symbol: SBNY) options are showing a volume of 2,593 contracts thus far today.
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Below is a chart showing OCDX's trailing twelve month trading history, with the $22.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 154,044 contracts, representing approximately 15.4 million underlying shares or approximately 44.2% of AAL's average daily trading volume over the past month, of 34.9 million shares. Especially high volume was seen for the $22 strike call option expiring April 23, 2021, with 11,131 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 $22 strike highlighted in orange: And Signature Bank (Symbol: SBNY) options are showing a volume of 2,593 contracts thus far today.
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Below is a chart showing OCDX's trailing twelve month trading history, with the $22.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 154,044 contracts, representing approximately 15.4 million underlying shares or approximately 44.2% of AAL's average daily trading volume over the past month, of 34.9 million shares. Especially high volume was seen for the $22 strike call option expiring April 23, 2021, with 11,131 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 $22 strike highlighted in orange: And Signature Bank (Symbol: SBNY) options are showing a volume of 2,593 contracts thus far today.
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4535.0
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2021-04-21 00:00:00 UTC
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American Airlines Is Bringing Back Pilots; Wants to Hire More
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AAL
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https://www.nasdaq.com/articles/american-airlines-is-bringing-back-pilots-wants-to-hire-more-2021-04-21
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nan
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nan
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American Airlines Group (NASDAQ: AAL) is recalling all furloughed pilots and plans to resume hiring this fall, a clear sign that the carrier believes the worst of the pandemic-related travel slowdown is behind it.
In a bulletin to employees, American said it hopes to hire 300 new pilots by year's end, and to double that total in 2022. The airline hopes to fill some of those positions by reaching out to pilots whom they had intended to hire last year prior to the pandemic.
Image source: American Airlines.
"This positive news for our pilots and our airline represents a change in course," the airline said in the bulletin. "The return to flying of so many of our pilots and the addition of hundreds more, the resumption of many old routes and the introduction of new destinations are hopeful signs, opportunities to look beyond the immediate and into a brighter future."
American and other airline stocks plummeted in the early days of the pandemic, but a combination of government assistance and private fundraising allowed the industry to remain airborne through the crisis. As vaccine numbers increase, travelers are slowly returning, and American has been among the most-aggressive airlines in restoring flights.
The move is not without risks. While traveler numbers are increasing, it is largely lower-fare leisure passengers and not the business and international fares who tend to drive profitability in good times.
So far this earnings season, airlines have warned they do not expect to have much pricing power heading into the summer. Adding capacity in a price-sensitive environment runs the risk of putting pressure on margins.
10 stocks we like better than American Airlines Group
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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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American Airlines Group (NASDAQ: AAL) is recalling all furloughed pilots and plans to resume hiring this fall, a clear sign that the carrier believes the worst of the pandemic-related travel slowdown is behind it. American and other airline stocks plummeted in the early days of the pandemic, but a combination of government assistance and private fundraising allowed the industry to remain airborne through the crisis. While traveler numbers are increasing, it is largely lower-fare leisure passengers and not the business and international fares who tend to drive profitability in good times.
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American Airlines Group (NASDAQ: AAL) is recalling all furloughed pilots and plans to resume hiring this fall, a clear sign that the carrier believes the worst of the pandemic-related travel slowdown is behind it. 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 February 24, 2021 Lou Whiteman has no position in any of the stocks mentioned.
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American Airlines Group (NASDAQ: AAL) is recalling all furloughed pilots and plans to resume hiring this fall, a clear sign that the carrier believes the worst of the pandemic-related travel slowdown is behind it. 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 February 24, 2021 Lou Whiteman has no position in any of the stocks mentioned.
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American Airlines Group (NASDAQ: AAL) is recalling all furloughed pilots and plans to resume hiring this fall, a clear sign that the carrier believes the worst of the pandemic-related travel slowdown is behind it. "This positive news for our pilots and our airline represents a change in course," the airline said in the bulletin. That's right -- they think these 10 stocks are even better buys.
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4536.0
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2021-04-20 00:00:00 UTC
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Why Airline Stocks Are Down Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-down-today-2021-04-20
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nan
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nan
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What happened
United Airlines Holdings (NASDAQ: UAL) provided a tepid outlook for the next few months, putting the entire sector under pressure. Shares of United traded down by as much as 10% on Tuesday, and American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all fell, as well.
So what
After a miserable 2020, the airlines, which were weighed down by the pandemic, are on a path toward recovery. But after digesting United's earnings report, investors got a reminder of how long that recovery will take. United lost $7.50 per share in the quarter, which was worse than anticipated, on revenue that was down 59.6% from the prior year.
Image source: Getty Images.
Management was largely upbeat, with CEO Scott Kirby saying he sees "a clear path to profitability" as a post-pandemic recovery takes hold. But United also said it sees capacity down 45% year over year in the second quarter and revenue per available seat mile, a common industry metric, down 20%.
United also doesn't see a quick recovery for international and business travel, and said it could take until 2023 before the airline generates margins that exceed 2019.
These are hardly United-specific issues. On a day when broader markets were under pressure, the entire airline industry took it on the chin. American and Delta have business models similar to United and will be impacted by sluggish international and corporate demand.
While JetBlue and Spirit are arguably set up to better take advantage of a domestic-focused recovery, United's commentary on margins indicates that there isn't much pricing power, even with demand coming back.
Now what
The airlines have been a big part of the so-called "recovery rally," with some of these stocks up 60% for the year only a few weeks ago. There's good reason for optimism, but the stocks arguably have gotten ahead of the results.
United's results are a reminder of how much work is still to be done. On Tuesday, at least, investors were in no mood to sit around and wait for a recovery.
10 stocks we like better than Delta Air Lines
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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 February 24, 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 United traded down by as much as 10% on Tuesday, and American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all fell, as well. What happened United Airlines Holdings (NASDAQ: UAL) provided a tepid outlook for the next few months, putting the entire sector under pressure. Management was largely upbeat, with CEO Scott Kirby saying he sees "a clear path to profitability" as a post-pandemic recovery takes hold.
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Shares of United traded down by as much as 10% on Tuesday, and American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all fell, as well. See the 10 stocks *Stock Advisor returns as of February 24, 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 United traded down by as much as 10% on Tuesday, and American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all fell, as well. 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 February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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Shares of United traded down by as much as 10% on Tuesday, and American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all fell, as well. But United also said it sees capacity down 45% year over year in the second quarter and revenue per available seat mile, a common industry metric, down 20%. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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4537.0
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2021-04-20 00:00:00 UTC
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These Travel Stocks Are Leading the Nasdaq Down
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AAL
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https://www.nasdaq.com/articles/these-travel-stocks-are-leading-the-nasdaq-down-2021-04-20
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nan
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nan
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The stock market took a hit on Tuesday, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) wasn't able to avoid the downdraft. As of 3:30 p.m. EDT, the Nasdaq was down more than 1% on the day.
Most Nasdaq investors focus their attention on innovative tech companies, because they make up the market's biggest stocks and have a high profile in the investment community. On Tuesday, though, it was a different group of companies that took some of the biggest hits. That came on the heels of an upsurge in COVID-19 cases across the globe that is posing a threat to the thesis for a global economic recovery. That sentiment affected several groups of stocks on Tuesday.
Airlines hit turbulence
Airline stocks on the Nasdaq were broadly lower on Tuesday. That included United Airlines Holdings (NASDAQ: UAL), down 8% on the day, as well as JetBlue Airways (NASDAQ: JBLU) and American Airlines Group (NASDAQ: AAL) and their declines of 4% to 5%. Regional airline Mesa Air Group (NASDAQ: MESA) suffered a 5% hit.
Image source: United Airlines.
The coronavirus pandemic has had a huge impact on the airline industry, and even the gradual rollout of vaccines in the U.S. hasn't eliminated all the risk for global carriers like United and American. International travel restrictions will likely last a lot longer than those on domestic air travel. That could pose a major threat to airlines going forward, and the threat of new variants of coronavirus stemming from outbreaks in areas like India and across Europe could contribute to longer-term anxiety.
Meanwhile, airlines are still working to emerge from financial strain. United reported its first-quarter results late Monday, which included revenue that was down by two-thirds from its pre-pandemic level two years ago. Adjusted net loss came in at $2.4 billion, and United is still burning cash, albeit at a slower rate of $9 million per day.
The outlook at United is grim as well, as second-quarter capacity is likely to be down 45% and total revenue per available seat mile faces a 20% hit compared to 2019 levels. Even with measures like opening up new routes, airlines face a huge amount of uncertainty.
Accommodation providers face tough times
Meanwhile, companies that specialize in giving people a place to stay also fell on hard times on Tuesday. That was evident both in traditional hotel providers and in alternatives.
Marriott (NASDAQ: MAR) was down almost 4%, leading a retreat in hotel chains. Online travel portals Booking Holdings (NASDAQ: BKNG) and Expedia Group (NASDAQ: EXPE), which get a large portion of their overall revenue from booking hotels and other accommodations, were similarly down 3% to 4% on the day. Even newly public Airbnb (NASDAQ: ABNB), which had its IPO just a few months ago, lost 3%.
Booking in particular relies a lot on international travel, so it faces some of the same challenges as United and American. Yet the declines across the board suggest that investors might have gotten a bit carried away in their fervor for travel stocks during the early stages of vaccine rollouts. The reality may not prove quite as strong as optimistic assessments had anticipated, especially if global vaccine availability lags far behind what the U.S. has thus far seen.
People will eventually travel again, and the companies that provide travel services will likely have the resources to recover. However, investors will have to put up with some bumps along the way, and that's what the stock market is dealing with on Tuesday.
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. 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 United Airlines Holdings 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 February 24, 2021
Dan Caplinger owns shares of Booking Holdings. The Motley Fool owns shares of and recommends Airbnb, Inc. and Booking Holdings. The Motley Fool recommends JetBlue Airways, Marriott International, and Nasdaq. 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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That included United Airlines Holdings (NASDAQ: UAL), down 8% on the day, as well as JetBlue Airways (NASDAQ: JBLU) and American Airlines Group (NASDAQ: AAL) and their declines of 4% to 5%. Most Nasdaq investors focus their attention on innovative tech companies, because they make up the market's biggest stocks and have a high profile in the investment community. The coronavirus pandemic has had a huge impact on the airline industry, and even the gradual rollout of vaccines in the U.S. hasn't eliminated all the risk for global carriers like United and American.
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That included United Airlines Holdings (NASDAQ: UAL), down 8% on the day, as well as JetBlue Airways (NASDAQ: JBLU) and American Airlines Group (NASDAQ: AAL) and their declines of 4% to 5%. Regional airline Mesa Air Group (NASDAQ: MESA) suffered a 5% hit. The Motley Fool owns shares of and recommends Airbnb, Inc. and Booking Holdings.
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That included United Airlines Holdings (NASDAQ: UAL), down 8% on the day, as well as JetBlue Airways (NASDAQ: JBLU) and American Airlines Group (NASDAQ: AAL) and their declines of 4% to 5%. Airlines hit turbulence Airline stocks on the Nasdaq were broadly lower on Tuesday. Online travel portals Booking Holdings (NASDAQ: BKNG) and Expedia Group (NASDAQ: EXPE), which get a large portion of their overall revenue from booking hotels and other accommodations, were similarly down 3% to 4% on the day.
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That included United Airlines Holdings (NASDAQ: UAL), down 8% on the day, as well as JetBlue Airways (NASDAQ: JBLU) and American Airlines Group (NASDAQ: AAL) and their declines of 4% to 5%. On Tuesday, though, it was a different group of companies that took some of the biggest hits. The coronavirus pandemic has had a huge impact on the airline industry, and even the gradual rollout of vaccines in the U.S. hasn't eliminated all the risk for global carriers like United and American.
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4538.0
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2021-04-20 00:00:00 UTC
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US STOCKS-Wall Street closes lower as virus spike hits travel stocks
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-lower-as-virus-spike-hits-travel-stocks-2021-04-20-0
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nan
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nan
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By Herbert Lash
NEW YORK, April 20 (Reuters) - Stocks on Wall Street fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks' apparently stellar earnings last week.
Kansas City Southern KSU.N surged 15.2% on the prospect of a bidding war after Canadian National CNR.TO offered about $30 billion for the U.S. railroad, some $5 billion more than an earlier offer from Canadian Pacific CP.TO.
Boeing Co BA.N slid 4.1% on the unexpected departure of its finance chief, the latest shock to hit the planemaker as it fights to recover from the pandemic and 737 MAX crisis.
Investors piled into defensive sectors considered relatively safe during times of economic uncertainty, lifting real estate .SPLRCR, utilities .SPLRCU, consumer staples .SPLRCS and healthcare .SPXHC as financials and energy shares fell hard.
Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.Nand Carnival Corp CCL.N, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell more than 4%.
Some of the recent optimism about the leisure industry has waned as the reopening might take a bit longer than initially thought, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
"We're not out of the woods yet when it comes to the COVID virus and getting to where global economies are reopening," he said. "Some of that enthusiasm has diminished."
A leading epidemiologist at the World Health Organization said on Monday the latest rise in COVID-19 infections worldwide reflected increases among all age groups.
Wall Street scaled record highs last week as investors bet on stocks such as industrials and miners that are seen as benefiting from the economic rebound, while highly valued technology stocks regained favor after a retreat in bond yields.
The Dow Jones Industrial Average .DJI fell 0.75% to 33,821.3. The S&P 500 .SPX shed 0.68% to 4,134.94 and the Nasdaq Composite .IXIC dropped 0.92% to 13,786.27.
It was the first back-to-back declines for the S&P since the end of March.
Volume on U.S. exchanges was 10.21 billion shares, compared with the 10.59 billion average for the full session over the last 20 trading days.
The CBOE volatility index .VIX, known as Wall Street's fear gauge, climbed above 19 points for the first time since March 31, before closing at 18.71.
JPMorgan Chase & Co JPM.N, Bank of America Corp BAC.N, Citigroup Inc C.N and Wells Fargo & Co WFC.N led financials lower as analysts reassessed their earnings reports, said Dick Bove, senior research analyst at Odeon Capital Group.
Accounting changes on how to report loan reserves skewered numbers when compared to a year ago, he said.
"People made the assumption this was a gangbusters quarter for the banking industry when that's far from the truth," Bove said, adding second-half profits are expected to be very strong.
United Airlines Holdings Inc UAL.OQ was the largest decliner, falling 8.5%, on the S&P 500 after reporting a bigger-than-expected adjusted net loss to push the S&P 1500 airline index .SPCOMAIR down 4.6%.
Shares of video-streaming service provider Netflix Inc NFLX.O, which thrived during last year's lockdowns, fell 0.9% ahead of its results due after the closing bell.
Netflix tumbled about 10% in after-hours trade following news that the company added fewer-than-expected paid subscribers in the first quarter, weighed down by a lighter content slate in the first half of 2021 due to COVID-19 production delays.
International Business Machines Corp IBM.N rose 3.8% after recording the biggest increase in quarterly sales in more than two years.
Analysts expect first-quarter earnings from S&P 500 firms to jump 31.5% from a year earlier, according to Refinitiv IBES data.
Declining issues outnumbered advancing ones on the NYSE by a 2.71-to-1 ratio; on Nasdaq, a 3.18-to-1 ratio favored decliners.
The S&P 500 posted 61 new 52-week highs and no new lows; the Nasdaq Composite recorded 47 new highs and 116 new lows.
(Reporting by Shivani Kumaresan and Medha Singh in Bengaluru; Editing by Sriraj Kalluvila, Anil D'Silva and Arun Koyyur and Richard Chang)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
The views and 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 airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.Nand Carnival Corp CCL.N, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell more than 4%. By Herbert Lash NEW YORK, April 20 (Reuters) - Stocks on Wall Street fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks' apparently stellar earnings last week. Investors piled into defensive sectors considered relatively safe during times of economic uncertainty, lifting real estate .SPLRCR, utilities .SPLRCU, consumer staples .SPLRCS and healthcare .SPXHC as financials and energy shares fell hard.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.Nand Carnival Corp CCL.N, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell more than 4%. Wall Street scaled record highs last week as investors bet on stocks such as industrials and miners that are seen as benefiting from the economic rebound, while highly valued technology stocks regained favor after a retreat in bond yields. Volume on U.S. exchanges was 10.21 billion shares, compared with the 10.59 billion average for the full session over the last 20 trading days.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.Nand Carnival Corp CCL.N, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell more than 4%. By Herbert Lash NEW YORK, April 20 (Reuters) - Stocks on Wall Street fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks' apparently stellar earnings last week. Wall Street scaled record highs last week as investors bet on stocks such as industrials and miners that are seen as benefiting from the economic rebound, while highly valued technology stocks regained favor after a retreat in bond yields.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.Nand Carnival Corp CCL.N, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell more than 4%. It was the first back-to-back declines for the S&P since the end of March. Volume on U.S. exchanges was 10.21 billion shares, compared with the 10.59 billion average for the full session over the last 20 trading days.
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4539.0
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2021-04-20 00:00:00 UTC
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US STOCKS-Wall Street closes lower as virus spike hits travel stocks
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-lower-as-virus-spike-hits-travel-stocks-2021-04-20
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nan
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nan
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By Herbert Lash
NEW YORK, April 20 (Reuters) - Stocks on Wall Street fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks' apparently stellar earnings last week.
Kansas City Southern KSU.N surged on the prospect of a bidding war after Canadian National CNR.TO offered about $30 billion for the U.S. railroad, some $5 billion more than an earlier offer from Canadian Pacific CP.TO.
Boeing Co BA.N slid on the unexpected departure of its finance chief, the latest shock to hit the planemaker as it fights to recover from the pandemic and 737 MAX crisis.
Investors piled into defensive sectors considered relatively safe during times of economic uncertainty, lifting real estate .SPLRCR, utilities .SPLRCU, consumer staples .SPLRCS and healthcare .SPXHC as financials and energy shares fell hard.
Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell around 5%.
Some of the recent optimism about the leisure industry has waned as the reopening might take a bit longer than initially thought, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
"We're not out of the woods yet when it comes to the COVID virus and getting to where global economies are reopening," he said. "Some of that enthusiasm has diminished."
A leading epidemiologist at the World Health Organization said on Monday the latest rise in COVID-19 infections worldwide reflected increases among all age groups.
Wall Street scaled record highs last week as investors bet on stocks such as industrials and miners that are seen as benefiting from the economic rebound, while highly valued technology stocks regained favor after a retreat in bond yields.
The CBOE volatility index .VIX, known as Wall Street's fear gauge, climbed above 19 points for the first time since March 31, but closed a bit below that.
JPMorgan Chase & Co JPM.N, Bank of America Corp BAC.N, Citigroup Inc C.N and Wells Fargo & Co WFC.N led financials lower as analysts reassessed their earnings reports, said Dick Bove, senior research analyst at Odeon Capital Group.
Accounting changes on how to report loan reserves skewered numbers when compared to a year ago, he said.
"People made the assumption this was a gangbusters quarter for the banking industry when that's far from the truth," Bove said, adding second-half profits are expected to be very strong.
United Airlines Holdings Inc UAL.OQ was the largest decliner on the S&P 500 after reporting a bigger-than-expected adjusted net loss to push the S&P 1500 airline index .SPCOMAIR down.
Shares of video-streaming service provider Netflix Inc NFLX.O, which thrived during last year's lockdowns, fell ahead of its results due after the closing bell.
International Business Machines Corp IBM.N rose after recording the biggest increase in quarterly sales in more than two years.
Analysts expect first-quarter earnings from S&P 500 firms to jump 31.5% from a year earlier, according to Refinitiv IBES data.
(Reporting by Shivani Kumaresan and Medha Singh in Bengaluru; Editing by Sriraj Kalluvila, Anil D'Silva and Arun Koyyur and Richard Chang)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
The views and 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 airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell around 5%. By Herbert Lash NEW YORK, April 20 (Reuters) - Stocks on Wall Street fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks' apparently stellar earnings last week. Investors piled into defensive sectors considered relatively safe during times of economic uncertainty, lifting real estate .SPLRCR, utilities .SPLRCU, consumer staples .SPLRCS and healthcare .SPXHC as financials and energy shares fell hard.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell around 5%. By Herbert Lash NEW YORK, April 20 (Reuters) - Stocks on Wall Street fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks' apparently stellar earnings last week. Wall Street scaled record highs last week as investors bet on stocks such as industrials and miners that are seen as benefiting from the economic rebound, while highly valued technology stocks regained favor after a retreat in bond yields.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell around 5%. By Herbert Lash NEW YORK, April 20 (Reuters) - Stocks on Wall Street fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks' apparently stellar earnings last week. JPMorgan Chase & Co JPM.N, Bank of America Corp BAC.N, Citigroup Inc C.N and Wells Fargo & Co WFC.N led financials lower as analysts reassessed their earnings reports, said Dick Bove, senior research analyst at Odeon Capital Group.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell around 5%. By Herbert Lash NEW YORK, April 20 (Reuters) - Stocks on Wall Street fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks' apparently stellar earnings last week. Kansas City Southern KSU.N surged on the prospect of a bidding war after Canadian National CNR.TO offered about $30 billion for the U.S. railroad, some $5 billion more than an earlier offer from Canadian Pacific CP.TO.
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4540.0
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2021-04-20 00:00:00 UTC
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US STOCKS-Wall Street slides as virus spike hits travel stocks
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-street-slides-as-virus-spike-hits-travel-stocks-2021-04-20
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nan
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nan
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By Herbert Lash and Medha Singh
April 20 (Reuters) - Wall Street's main indexes fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel stocks and investors had second thoughts about big U.S. banks' apparently stellar earnings last week.
Kansas City Southern KSU.N surged 16.1% on the prospect of a bidding war after Canadian National CNR.TO offered about $30 billion for the U.S. railroad, some $5 billion more than an earlier offer from Canadian Pacific CP.TO.
Boeing Co BA.N slid 4.6% on the unexpected departure of its finance chief, the latest shock to hit the planemaker as it fights to recover from the pandemic and 737 MAX crisis.
Investors piled into defensive sectors considered relatively safe during times of economic uncertainty: real estate .SPLRCR, utilities .SPLRCU, consumer staples .SPLRCS and healthcare .SPXHC.
Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%.
Some of the recent optimism about the leisure industry has waned as the reopening might take a bit longer than initially thought, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
"We're not out of the woods yet when it comes to the COVID virus and getting to where global economies are reopening," he said. "Some of that enthusiasm has diminished."
Wall Street scaled record highs last week as investors bet on stocks such as industrials and miners that are seen as benefiting from the economic rebound, while highly valued technology stocks regained favor after a retreat in bond yields.
The Dow Jones Industrial Average .DJIfell 1.08%, the S&P 500 .SPXlost 0.97% and the Nasdaq Composite .IXICdropped 1.31%.
The CBOE volatility index .VIX, known as Wall Street's fear gauge, rose above 19 points for the first time since March 31.
JPMorgan Chase & Co JPM.N, Bank of America Corp BAC.N, Citigroup Inc C.N and Wells Fargo & Co WFC.N led financials lower as analysts reassessed their first-quarter earnings reports, said Dick Bove, senior research analyst at Odeon Capital Group.
Accounting changes on how to report loan reserves skewered numbers when compared to a year ago, he said.
"People made the assumption this was a gangbusters quarter for the banking industry when that's far from the truth," Bove said, adding second-half profits are expected to be very strong.
United Airlines Holdings Inc UAL.OQ tumbled 9.6%, the largest decliner on the S&P 500, after reporting a bigger-than-expected adjusted net loss. Its shares dragged the S&P 1500 airline index .SPCOMAIR down 5.2%.
Shares of video-streaming service provider Netflix IncNFLX.O, which thrived during last year's lockdowns, fell about 0.5% ahead of its results due after the closing bell.
International Business Machines Corp IBM.N rose 3.8% after recording the biggest rise in quarterly sales in more than two years.
Analysts expect first-quarter earnings from S&P 500 firms to jump 31.5% from a year earlier, according to Refinitiv IBES data.
Declining issues outnumbered advancing ones on the NYSE by a 3.32-to-1 ratio; on Nasdaq, a 3.84-to-1 ratio favored decliners.
The S&P 500 posted 59 new 52-week highs and no new lows; the Nasdaq Composite recorded 43 new highs and 106 new lows.
(Reporting by Shivani Kumaresan and Medha Singh in Bengaluru; Editing by Sriraj Kalluvila, Anil D'Silva and Arun Koyyur and Richard Chang)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
The views and 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 airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%. By Herbert Lash and Medha Singh April 20 (Reuters) - Wall Street's main indexes fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel stocks and investors had second thoughts about big U.S. banks' apparently stellar earnings last week. Investors piled into defensive sectors considered relatively safe during times of economic uncertainty: real estate .SPLRCR, utilities .SPLRCU, consumer staples .SPLRCS and healthcare .SPXHC.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%. By Herbert Lash and Medha Singh April 20 (Reuters) - Wall Street's main indexes fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel stocks and investors had second thoughts about big U.S. banks' apparently stellar earnings last week. Wall Street scaled record highs last week as investors bet on stocks such as industrials and miners that are seen as benefiting from the economic rebound, while highly valued technology stocks regained favor after a retreat in bond yields.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%. By Herbert Lash and Medha Singh April 20 (Reuters) - Wall Street's main indexes fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel stocks and investors had second thoughts about big U.S. banks' apparently stellar earnings last week. Wall Street scaled record highs last week as investors bet on stocks such as industrials and miners that are seen as benefiting from the economic rebound, while highly valued technology stocks regained favor after a retreat in bond yields.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%. Its shares dragged the S&P 1500 airline index .SPCOMAIR down 5.2%. The S&P 500 posted 59 new 52-week highs and no new lows; the Nasdaq Composite recorded 43 new highs and 106 new lows.
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4541.0
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2021-04-20 00:00:00 UTC
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US STOCKS-Boeing, travel stocks pull Wall Street lower as virus cases rise
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AAL
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https://www.nasdaq.com/articles/us-stocks-boeing-travel-stocks-pull-wall-street-lower-as-virus-cases-rise-2021-04-20
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nan
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nan
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By Shivani Kumaresan and Medha Singh
April 20 (Reuters) - Wall Street's main indexes fell for a second straight day on Tuesday as a spike in coronavirus cases globally hit travel stocks, while Boeing slid on the unexpected departure of its finance chief.
Seven of the 11 S&P indexes were down, with investors piling into defensive stocks that are considered relatively safe during times of economic uncertainty: real estate .SPLRCR, utilities .SPLRCU, consumer staples .SPLRCS and healthcare .SPXHC.
Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%.
"Rising COVID-19 cases around the world is a risk," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
"Investors may be taking a little bit of profit as they recognize that a lot the 'reopening trade' may already be priced in to the markets at this point."
Wall Street's main indexes scaled record highs last week as investors bet on stocks such as industrials and miners that are deemed to benefit from a faster-than-expected economic rebound, while richly valued technology stocks found favor after a retreat in bond yields.
On Tuesday, the technology-heavy Nasdaq .IXIC, which comprises some of the best performing stocks from last year including Apple Inc AAPL.O and Tesla Inc TSLA.O, was down 0.9% even as Treasury yields ticked lower. US/
The CBOE volatility index .VIX, known as Wall Street's fear gauge, rose above 19 points for the first time since March 31.
At 12:25 p.m. ET, the Dow Jones Industrial Average .DJI was down 0.64%, the S&P 500 .SPX was down 0.66% and the Nasdaq Composite .IXIC was down 0.91%.
Boeing Co BA.N fell 4% after it announced the unexpected retirement of its chief financial officer for the past decade, Greg Smith.
Nike Inc NKE.N dropped 4.2% and was among the top drags on the blue-chip Dow after Citigroup lowered its rating on the company's shares to "neutral" from "buy".
Focus turns to quarterly earnings reports from technology heavyweights after a blockbuster set of results last week from big banks.
Shares of video-streaming service provider Netflix NFLX.O, which thrived during last year's lockdowns, fell about 1.1% ahead of its results after the closing bell.
International Business Machines Corp IBM.N rose 4.2% after recording the biggest rise in quarterly sales in more than two years.
Overall, analysts expect first-quarter earnings S&P 500 firms to have jumped 31.5% from a year earlier, according to Refinitiv IBES data.
United Airlines UAL.O slumped about 9% after reporting a bigger-than-expected adjusted net loss. Its shares dragged the S&P 1500 airline index .SPCOMAIR down 5.5%.
Kansas City Southern KSU.N jumped 16% to a record high after Canadian National CNR.TO offered to buy the U.S. railroad operator for about $30 billion, trumping a rival bid by Canadian Pacific CP.TO.
Declining issues outnumbered advancers 3.09-to-1 on the NYSE and 3.42-to-1 on the Nasdaq.
The S&P index recorded 56 new 52-week highs and no new low, while the Nasdaq recorded 40 new highs and 93 new lows.
(Reporting by Shivani Kumaresan and Medha Singh in Bengaluru; Editing by Sriraj Kalluvila, Anil D'Silva and Arun Koyyur)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
The views and 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 airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%. By Shivani Kumaresan and Medha Singh April 20 (Reuters) - Wall Street's main indexes fell for a second straight day on Tuesday as a spike in coronavirus cases globally hit travel stocks, while Boeing slid on the unexpected departure of its finance chief. Seven of the 11 S&P indexes were down, with investors piling into defensive stocks that are considered relatively safe during times of economic uncertainty: real estate .SPLRCR, utilities .SPLRCU, consumer staples .SPLRCS and healthcare .SPXHC.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%. By Shivani Kumaresan and Medha Singh April 20 (Reuters) - Wall Street's main indexes fell for a second straight day on Tuesday as a spike in coronavirus cases globally hit travel stocks, while Boeing slid on the unexpected departure of its finance chief. Wall Street's main indexes scaled record highs last week as investors bet on stocks such as industrials and miners that are deemed to benefit from a faster-than-expected economic rebound, while richly valued technology stocks found favor after a retreat in bond yields.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%. By Shivani Kumaresan and Medha Singh April 20 (Reuters) - Wall Street's main indexes fell for a second straight day on Tuesday as a spike in coronavirus cases globally hit travel stocks, while Boeing slid on the unexpected departure of its finance chief. Wall Street's main indexes scaled record highs last week as investors bet on stocks such as industrials and miners that are deemed to benefit from a faster-than-expected economic rebound, while richly valued technology stocks found favor after a retreat in bond yields.
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Shares of airline operators and cruiseliners including JetBlue Airways JBLU.O, American Airlines AAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%. By Shivani Kumaresan and Medha Singh April 20 (Reuters) - Wall Street's main indexes fell for a second straight day on Tuesday as a spike in coronavirus cases globally hit travel stocks, while Boeing slid on the unexpected departure of its finance chief. Wall Street's main indexes scaled record highs last week as investors bet on stocks such as industrials and miners that are deemed to benefit from a faster-than-expected economic rebound, while richly valued technology stocks found favor after a retreat in bond yields.
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4542.0
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2021-04-20 00:00:00 UTC
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American Airlines Ramps Up Capacity for the Summer
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AAL
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https://www.nasdaq.com/articles/american-airlines-ramps-up-capacity-for-the-summer-2021-04-20
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nan
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nan
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For more than a year, the COVID-19 pandemic has kept most Americans cooped up at home. There is a light at the end of the tunnel, though: More than half of U.S. adults have received at least one dose of a COVID-19 vaccine. That's driving a recovery in air travel demand.
American Airlines (NASDAQ: AAL) hopes to tap into this demand rebound by restoring most of its pre-pandemic flying by the summer. However, business travel demand is unlikely to recover that soon. As a result, the airline giant risks making another unforced error with this aggressive move.
Image source: American Airlines.
Demand is returning
Air travel demand has increased dramatically over the past two months or so as the COVID-19 vaccination campaign has gained steam. Last week, passenger screenings at TSA checkpoints averaged 58% of 2019 levels, up from just 38% of 2019 levels in the first seven days of February.
All signs point toward even stronger demand over the summer. American Airlines and its peers all reported big inflections in their cash flow last month as leisure customers began to book travel for the upcoming peak season. In fact, American told investors late last month that net bookings were averaging 90% of 2019 levels.
Restoring most capacity
As demand has started to recover over the past few months, American Airlines has announced a series of capacity expansions.
For example, it is growing in Miami, capitalizing on a surge in demand for leisure travel to South Florida and to destinations in the Caribbean and Latin America that it serves from its Miami hub. The full-service airline is also launching new routes from New York and Boston, where it recently inaugurated a partnership with JetBlue Airways. Last month, American announced a slew of new routes from Austin, where the local economy is booming.
Last week, American Airlines rolled out yet another set of new routes. The carrier is also ramping up capacity on many existing domestic and short-haul international routes to well beyond 2019 levels in response to strong leisure demand. That includes redeploying many wide-body planes -- typically used for long-haul flights -- to domestic routes.
Image source: American Airlines.
All told, American says that it "expects to fly more than 90% of its domestic seat capacity compared to summer 2019 and 80% of its international seat capacity compared to 2019" during the upcoming peak season.
Can leisure demand support this flying?
While leisure demand is recovering rapidly, leisure travelers tend to be far more price sensitive than business travelers. To be fair, the combination of high savings rates over the past year and cabin fever could make leisure travelers willing to spend a little more on airfares this summer. Still, it's doubtful that leisure fares will rise enough to offset the impact of muted business travel demand on average fares and profitability.
Indeed, Delta Air Lines (NYSE: DAL) President Glen Hauenstein told investors last week that summer leisure fares would likely be similar to 2019 levels. Moreover, Delta reported that corporate travel volumes were still down 80% from 2019 in the month of March -- even though the airline has gained share in that market segment.
Based on this demand environment, Delta expects to ramp up capacity to 67% of 2019 levels in the month of June. United Airlines is currently planning an even more conservative June schedule. American Airlines' approach looks extremely aggressive by comparison. It anticipates operating more than 80% of its 2019 capacity by June, with further increases in July.
A risky approach
In its recent guidance update, American Airlines projected that it will report an adjusted net loss between $2.7 billion and $2.8 billion for the first quarter. That would be significantly worse than Delta's Q1 adjusted net loss of $2.3 billion.
Generally speaking, businesses with higher profit margins have more reason to grow than those with inferior margins. American Airlines remains one of the least-profitable U.S. airlines, making its plan to restore capacity much faster than rivals especially dubious.
Moreover, American Airlines' plans for the upcoming summer season mirror its strategy a year ago. The carrier operated an aggressive summer schedule in the hope of capitalizing on a modest leisure travel revival. The strategy backfired spectacularly, as American posted the biggest loss and the highest cash burn in the industry during the third quarter of 2020.
Could this time be different? Sure. But given American Airlines' poor track record, investors shouldn't count on this summer capacity surge leading to strong financial performance relative to competitors.
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Adam Levine-Weinberg owns shares of Delta Air Lines and JetBlue Airways and is long January 2022 $10.0 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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American Airlines (NASDAQ: AAL) hopes to tap into this demand rebound by restoring most of its pre-pandemic flying by the summer. American Airlines and its peers all reported big inflections in their cash flow last month as leisure customers began to book travel for the upcoming peak season. Indeed, Delta Air Lines (NYSE: DAL) President Glen Hauenstein told investors last week that summer leisure fares would likely be similar to 2019 levels.
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American Airlines (NASDAQ: AAL) hopes to tap into this demand rebound by restoring most of its pre-pandemic flying by the summer. All told, American says that it "expects to fly more than 90% of its domestic seat capacity compared to summer 2019 and 80% of its international seat capacity compared to 2019" during the upcoming peak season. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Adam Levine-Weinberg owns shares of Delta Air Lines and JetBlue Airways and is long January 2022 $10.0 calls on JetBlue Airways.
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American Airlines (NASDAQ: AAL) hopes to tap into this demand rebound by restoring most of its pre-pandemic flying by the summer. American Airlines and its peers all reported big inflections in their cash flow last month as leisure customers began to book travel for the upcoming peak season. Restoring most capacity As demand has started to recover over the past few months, American Airlines has announced a series of capacity expansions.
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American Airlines (NASDAQ: AAL) hopes to tap into this demand rebound by restoring most of its pre-pandemic flying by the summer. The carrier is also ramping up capacity on many existing domestic and short-haul international routes to well beyond 2019 levels in response to strong leisure demand. While leisure demand is recovering rapidly, leisure travelers tend to be far more price sensitive than business travelers.
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4543.0
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2021-04-20 00:00:00 UTC
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COLUMN-The stampede to exit coal is a worrying harbinger for LNG: Russell
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AAL
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https://www.nasdaq.com/articles/column-the-stampede-to-exit-coal-is-a-worrying-harbinger-for-lng%3A-russell-2021-04-20-0
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nan
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nan
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By Clyde Russell
LAUNCESTON, Australia, April 20 (Reuters) - A global diversified miner paying to exit its coal assets, and a multibillion-dollar dollar investment by Qatar to reclaim its status as the world's largest producer of liquefied natural gas have more in common than might be visible at first glance.
South32 S32.AX, the Australian commodity producer spun out of BHP Group BHP.AX, is effectively handing over up to $250 million to Seriti Resources to take South African thermal coal operations off its hands.
While it's not unusual for sellers of mining assets to cover rehabilitation costs, the sizeable amount involved shows just how much South32 wanted out of thermal coal - and in effect, just how little the assets are worth.
South32 is one of several major coal miners seeking to exit a business that has become increasingly problematic amid action by environmental activists, concern among shareholders and the withdrawal of financing and insurance for mines viewed as contributing to climate change.
In short, coal mines, particularly those producing thermal coal for use in power plants, are increasingly seen as a millstone around the neck of diversified miners. The latter would prefer to focus on producing commodities seen as essential to decarbonising the world's energy systems.
There isn't a straight line between the rush to exit coal and Qatar's $28.7 billion plan to boost its LNG capacity 40% to 110 million tonnes by 2026, with a potential second-phase expansion to a total annual capacity of 127 million tonnes.
On the surface, such a massive investment in LNG would seem to be a vote of confidence in the future of the super-chilled fuel, touted by proponents as a cleaner-burning alternative to coal.
Still, the LNG business is condemned by opponents as producing enough pollution to still be part of the climate change problem. And Qatar's push to produce more LNG could be view through a more cynical prism: the Gulf nation may be seeking to maximise the revenue from its extremely low-cost natural gas assets while it still can - before decarbonisation does to LNG what it's busy doing to coal.
Qatar is believed to be able to produce LNG at a break-even cost of about $4 per million British thermal units (mmBtu), below the $5 to $8 per mmBtu for new projects in Mozambique, Russia and the United States, and the $7 to $11 for current top exporter Australia for new projects, according to figures from the Boston Consulting Group.
This in effect means Qatar can afford to take the view that even if there is an oversupply of LNG in the future, it will be the last producer standing, and it can monetise its natural gas reserves better than its competitors.
This raises the possibility that the billions of dollars currently being invested in LNG projects in places from Mozambique to Russia to North America may end up facing the same issues coal has right now - writing down the value of assets and struggling to sell them.
COAL EXIT STAMPEDE
Of course, for buyers of distressed coal assets such as Seriti, the opportunity remains to run the acquired mines for many years and sell the coal profitably to South Africa's state-owned energy utility Eskom.
The sale of South32's South African energy coal assets to Seriti is expected to close before the end of the company's financial year, pending government approvals and an agreement with Eskom over coal supply.
The planned sale was first announced in November 2019 with Seriti, a company owned by Black South African investors, initially agreeing to pay 100 million rand ($6.7 million) upfront plus deferred payments based on future cash flows until March 2024, with a ceiling of 1.5 billion rand per year.
These terms have now changed, with the deferred payments scrapped, the purchase price reduced to a token 1 rand and South32 agreeing to pay for rehabilitation and other costs.
If the deal does go through, it will be the latest coal exit by a major mining company, following plans by Anglo American AAL.L to spin off its South African coal assets and exit from its joint venture in Colombia, something BHP is keen to do as well.
Additionally BHP wishes to sell, or spin off, its energy coal assets in Australia, and earlier this year cut the value of its Mount Arthur thermal coal in New South Wales state by up to $1.25 billion, reflecting the market view that such assets have plunged in value.
It's possible the present rush for the exit from coal will be matched by major oil and gas producers making a similar dash to get out of LNG in a few years time.
(Editing by Kenneth Maxwell)
((clyde.russell@thomsonreuters.com)(+61 437 622 448)(Reuters Messaging: clyde.russell.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
If the deal does go through, it will be the latest coal exit by a major mining company, following plans by Anglo American AAL.L to spin off its South African coal assets and exit from its joint venture in Colombia, something BHP is keen to do as well. By Clyde Russell LAUNCESTON, Australia, April 20 (Reuters) - A global diversified miner paying to exit its coal assets, and a multibillion-dollar dollar investment by Qatar to reclaim its status as the world's largest producer of liquefied natural gas have more in common than might be visible at first glance. South32 is one of several major coal miners seeking to exit a business that has become increasingly problematic amid action by environmental activists, concern among shareholders and the withdrawal of financing and insurance for mines viewed as contributing to climate change.
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If the deal does go through, it will be the latest coal exit by a major mining company, following plans by Anglo American AAL.L to spin off its South African coal assets and exit from its joint venture in Colombia, something BHP is keen to do as well. South32 S32.AX, the Australian commodity producer spun out of BHP Group BHP.AX, is effectively handing over up to $250 million to Seriti Resources to take South African thermal coal operations off its hands. There isn't a straight line between the rush to exit coal and Qatar's $28.7 billion plan to boost its LNG capacity 40% to 110 million tonnes by 2026, with a potential second-phase expansion to a total annual capacity of 127 million tonnes.
|
If the deal does go through, it will be the latest coal exit by a major mining company, following plans by Anglo American AAL.L to spin off its South African coal assets and exit from its joint venture in Colombia, something BHP is keen to do as well. And Qatar's push to produce more LNG could be view through a more cynical prism: the Gulf nation may be seeking to maximise the revenue from its extremely low-cost natural gas assets while it still can - before decarbonisation does to LNG what it's busy doing to coal. Additionally BHP wishes to sell, or spin off, its energy coal assets in Australia, and earlier this year cut the value of its Mount Arthur thermal coal in New South Wales state by up to $1.25 billion, reflecting the market view that such assets have plunged in value.
|
If the deal does go through, it will be the latest coal exit by a major mining company, following plans by Anglo American AAL.L to spin off its South African coal assets and exit from its joint venture in Colombia, something BHP is keen to do as well. South32 is one of several major coal miners seeking to exit a business that has become increasingly problematic amid action by environmental activists, concern among shareholders and the withdrawal of financing and insurance for mines viewed as contributing to climate change. The planned sale was first announced in November 2019 with Seriti, a company owned by Black South African investors, initially agreeing to pay 100 million rand ($6.7 million) upfront plus deferred payments based on future cash flows until March 2024, with a ceiling of 1.5 billion rand per year.
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4544.0
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2021-04-20 00:00:00 UTC
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4 Robinhood Stocks I Wouldn't Buy With Free Money
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AAL
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https://www.nasdaq.com/articles/4-robinhood-stocks-i-wouldnt-buy-with-free-money-2021-04-20
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nan
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nan
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For more than a year, we've watched an interesting phenomenon take shape on Wall Street. The more volatile things have been for equities, the more enticing it's been to young and novice investors. How do we know this, you ask? Just take a closer look at the success of online investing app Robinhood.
Robinhood, which is known for its commission-free trades and gifting of free shares of stock to new members, gained in the neighborhood of 3 million new users in 2020. The thing is, the average age of its user base is only 31. It's become an investing destination that young and/or novice retail investors have flocked to.
In one respect, it's fantastic to see young people putting their money to work in a proven wealth creator (the stock market). Conversely, it's terrifying to see what they've been buying. With many focused on the short term and looking to get rich quickly, Robinhood's leaderboard (the 100 most-held stocks on the platform) is packed with momentum plays, penny stocks, and other undesirable companies.
Among these most-held stocks are four extremely popular companies that I wouldn't buy, even with free money.
Image source: Getty Images.
Sundial Growers
Let's begin with the fourth most-held stock on the entire platform, Canadian marijuana stock Sundial Growers (NASDAQ: SNDL). Sundial was caught up in the Reddit frenzy in late January and early February and also happens to be a penny stock, which creates double the attraction for young investors. Unfortunately, management appears hell-bent on diluting the daylights out of its shareholders, and the company's operating performance has, thus far, been poor.
In an effort to clean up its balance sheet, Sundial has undertaken numerous share offerings and debt-to-equity swaps, as well as had warrants executed. All told, in the five-month span between Oct. 1, 2020, and Feb. 28, 2021, Sundial Growers' outstanding share count more than tripled to 1.66 billion.
Worse yet, Sundial recently filed to sell up to $800 million worth of its stock via at-the-market offerings. Based on its closing price of $0.852 on April 15, this could add another 939 million shares to the outstanding count, if fully executed. This enormous share count will make it impossible for the company to generate meaningful earnings per share and could make it difficult to remain listed on the Nasdaq exchange without enacting a reverse split.
The last straw is that Sundial is still years away from becoming profitable or even hitting $100 million in sales. It has no business being valued at $1.42 billion.
Image source: American Airlines.
American Airlines Group
I will never understand the fascination Robinhood investors have with airline stocks. It's an industry with exceptionally high capital inputs that, even under ideal conditions, generates mediocre margins. But there are even more reasons why the 13th most-held stock on the platform, American Airlines Group (NASDAQ: AAL), is unworthy of my money.
Although it's been a popular reopening trade, American Airlines' balance sheet is the train wreck of the airline industry. It's lugging around $41 billion in debt and has less than $6.9 billion in cash. It was forced to raise a lot of capital during the pandemic to ride out the uncertainty, and it made a poor decision to modernize its fleet in 2018, resulting in the company taking on debt long before it was necessary to do so.
Also, ramping the company's operations back up won't happen overnight. In a perfect scenario, coronavirus variants won't slow the push to herd immunity in the United States. Even then, it could still be another year or two before American Airlines is back to generating a profit.
And let's not forget that as part of accepting coronavirus relief capital, American Airlines will no longer be repurchasing its stock or paying a dividend. Without a capital return plan, the only reason to own airline stocks has flown the coop.
Image source: Getty Images.
Aurora Cannabis
The former most-held Robinhood stock, Aurora Cannabis (NYSE: ACB), is yet another pot company I wouldn't invest in with free money. Though it was the most-held stock at this time last year, it's since fallen to the No. 18 spot on the leaderboard.
Many of the reasons I believe Sundial Growers is a terrible company are also applicable to Aurora Cannabis. In particular, Aurora's share-based dilution has been off the charts for years, and it's absolutely destroying shareholder value. In a roughly 6.5-year stretch, Aurora's outstanding share count has risen by more than 13,500% to 186.2 million shares. Keep in mind that this takes into account the 1-for-12 reverse split enacted by the company in May 2020. Otherwise, it would have over 2.2 billion shares outstanding today.
Aurora Cannabis's acquisition track record is also quite poor. It's responsible for what I believe is the worst acquisition in marijuana history: the 2018 all-stock purchase of MedReleaf for 2.64 billion Canadian dollars (about $2.11 billion). Aurora ultimately sold a key greenhouse that was never retrofit for cannabis production for what seemed like pennies on the dollar and shuttered another of MedReleaf's cultivation facilities. It's now left with 28,000 kilos of annual output and a handful of proprietary brands -- for CA$2.64 billion.
If you need one final reason why Aurora should be avoided, here it is: The company's management has moved the finish line for reaching positive earnings before interest, taxes, depreciation, and amortization (EBITDA) further down the road on numerous occasions.
Image source: Getty Images.
AMC Entertainment
Lastly, I wouldn't put free money to work in the third most-held stock on the platform, movie theater operator AMC Entertainment (NYSE: AMC).
AMC has been particularly popular among young investors following its short-squeeze event in late January. The problem is young investors seem so focused on short interest and the possibility of another short squeeze that they're ignoring blatant fundamental and balance sheet red flags.
For example, AMC and its shareholders look to be faced with a no-win scenario come May 4. The company wants the authority to issue up to 500 million shares, as needed, to raise capital. This capital will be vital to meeting the company's debt obligations in the years to come. If shareholders approve the issuance, AMC will almost certainly dilute its investors in the years to come. And if they vote no, it's unlikely the company will have enough operating cash flow to resolve its debt in future years. There is no positive outcome.
The pandemic has also taught us that the movie theater industry can be disrupted. In a handful of instances in 2021, new movies are debuting on streaming services the same day they're slated to hit theaters. This could weaken the film exclusivity AMC needs to draw people to its theaters.
To boot, AMC's short ratio (also known as days to cover) isn't high enough to trap short-sellers in their positions, which likely negates any possibility of a sustained short squeeze. AMC simply isn't worth your (or my) hard-earned money.
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 February 24, 2021
Sean Williams has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But there are even more reasons why the 13th most-held stock on the platform, American Airlines Group (NASDAQ: AAL), is unworthy of my money. Sundial was caught up in the Reddit frenzy in late January and early February and also happens to be a penny stock, which creates double the attraction for young investors. It was forced to raise a lot of capital during the pandemic to ride out the uncertainty, and it made a poor decision to modernize its fleet in 2018, resulting in the company taking on debt long before it was necessary to do so.
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But there are even more reasons why the 13th most-held stock on the platform, American Airlines Group (NASDAQ: AAL), is unworthy of my money. Sundial Growers Let's begin with the fourth most-held stock on the entire platform, Canadian marijuana stock Sundial Growers (NASDAQ: SNDL). Aurora Cannabis The former most-held Robinhood stock, Aurora Cannabis (NYSE: ACB), is yet another pot company I wouldn't invest in with free money.
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But there are even more reasons why the 13th most-held stock on the platform, American Airlines Group (NASDAQ: AAL), is unworthy of my money. With many focused on the short term and looking to get rich quickly, Robinhood's leaderboard (the 100 most-held stocks on the platform) is packed with momentum plays, penny stocks, and other undesirable companies. Aurora Cannabis The former most-held Robinhood stock, Aurora Cannabis (NYSE: ACB), is yet another pot company I wouldn't invest in with free money.
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But there are even more reasons why the 13th most-held stock on the platform, American Airlines Group (NASDAQ: AAL), is unworthy of my money. Among these most-held stocks are four extremely popular companies that I wouldn't buy, even with free money. AMC Entertainment Lastly, I wouldn't put free money to work in the third most-held stock on the platform, movie theater operator AMC Entertainment (NYSE: AMC).
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4545.0
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2021-04-20 00:00:00 UTC
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COLUMN-The stampede to exit coal is a worrying harbinger for LNG: Russell
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AAL
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https://www.nasdaq.com/articles/column-the-stampede-to-exit-coal-is-a-worrying-harbinger-for-lng%3A-russell-2021-04-20
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nan
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nan
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By Clyde Russell
LAUNCESTON, Australia, April 20 (Reuters) - A global diversified miner paying to exit its coal assets, and a multi-bil-lion dollar investment by Qatar to reclaim its status as the world's largest producer of liquefied natural gas have more in common than might be visible at first glance.
South32 S32.AX, the Australian commodity producer spun out of BHP Group BHP.AX, is effectively handing over up to $250 million to Seriti Resources to take South African thermal coal operations off its hands.
While it's not unusual for sellers of mining assets to cover rehabilitation costs, the sizeable amount involved shows just how much South32 wanted out of thermal coal - and in effect, just how little the assets are worth.
South32 is one of several major coal miners seeking to exit a business that has become increasingly problematic amid action by environmental activists, concern among shareholders and the withdrawal of financing and insurance for mines viewed as contributing to climate change.
In short, coal mines, particularly those producing thermal coal for use in power plants, are increasingly seen as a millstone around the neck of diversified miners. The latter would prefer to focus on producing commodities seen as essential to decarbonising the world's energy systems.
There isn't a straight line between the rush to exit coal and Qatar's $28.7 billion plan to boost its LNG capacity 40% to 110 million tonnes by 2026, with a potential second-phase expansion to a total annual capacity of 127 million tonnes.
On the surface, such a massive investment in LNG would seem to be a vote of confidence in the future of the super-chilled fuel, touted by proponents as a cleaner-burning alternative to coal.
Still, the LNG business is condemned by opponents as producing enough pollution to still be part of the climate change problem. And Qatar's push to produce more LNG could be view through a more cynical prism: the Gulf nation may be seeking to maximise the revenue from its extremely low-cost natural gas assets while it still can - before decarbonisation does to LNG what it's busy doing to coal.
Qatar is believed to be able to produce LNG at a break-even cost of about $4 per million British thermal units (mmBtu), below the $5 to $8 per mmBtu for new projects in Mozambique, Russia and the United States, and the $7 to $11 for current top exporter Australia for new projects, according to figures from the Boston Consulting Group.
This in effect means Qatar can afford to take the view that even if there is an oversupply of LNG in the future, it will be the last producer standing, and it can monetise its natural gas reserves better than its competitors.
This raises the possibility that the billions of dollars currently being invested in LNG projects in places from Mozambique to Russia to North America may end up facing the same issues coal has right now - writing down the value of assets and struggling to sell them.
COAL EXIT STAMPEDE
Of course, for buyers of distressed coal assets such as Seriti, the opportunity remains to run the acquired mines for many years and sell the coal profitably to South Africa's state-owned energy utility Eskom.
The sale of South32's South African energy coal assets to Seriti is expected to close before the end of the company's financial year, pending government approvals and an agreement with Eskom over coal supply.
The planned sale was first announced in November 2019 with Seriti, a company owned by Black South African investors, initially agreeing to pay 100 million rand ($6.7 million) upfront plus deferred payments based on future cash flows until March 2024, with a ceiling of 1.5 billion rand per year.
These terms have now changed, with the deferred payments scrapped, the purchase price reduced to a token 1 rand and South32 agreeing to pay for rehabilitation and other costs.
If the deal does go through, it will be the latest coal exit by a major mining company, following plans by Anglo American AAL.L to spin off its South African coal assets and exit from its joint venture in Colombia, something BHP is keen to do as well.
Additionally BHP wishes to sell, or spin off, its energy coal assets in Australia, and earlier this year cut the value of its Mount Arthur thermal coal in New South Wales state by up to $1.25 billion, reflecting the market view that such assets have plunged in value.
It's possible the present rush for the exit from coal will be matched by major oil and gas producers making a similar dash to get out of LNG in a few years time.
(Editing by Kenneth Maxwell)
((clyde.russell@thomsonreuters.com)(+61 437 622 448)(Reuters Messaging: clyde.russell.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
If the deal does go through, it will be the latest coal exit by a major mining company, following plans by Anglo American AAL.L to spin off its South African coal assets and exit from its joint venture in Colombia, something BHP is keen to do as well. By Clyde Russell LAUNCESTON, Australia, April 20 (Reuters) - A global diversified miner paying to exit its coal assets, and a multi-bil-lion dollar investment by Qatar to reclaim its status as the world's largest producer of liquefied natural gas have more in common than might be visible at first glance. South32 is one of several major coal miners seeking to exit a business that has become increasingly problematic amid action by environmental activists, concern among shareholders and the withdrawal of financing and insurance for mines viewed as contributing to climate change.
|
If the deal does go through, it will be the latest coal exit by a major mining company, following plans by Anglo American AAL.L to spin off its South African coal assets and exit from its joint venture in Colombia, something BHP is keen to do as well. South32 S32.AX, the Australian commodity producer spun out of BHP Group BHP.AX, is effectively handing over up to $250 million to Seriti Resources to take South African thermal coal operations off its hands. There isn't a straight line between the rush to exit coal and Qatar's $28.7 billion plan to boost its LNG capacity 40% to 110 million tonnes by 2026, with a potential second-phase expansion to a total annual capacity of 127 million tonnes.
|
If the deal does go through, it will be the latest coal exit by a major mining company, following plans by Anglo American AAL.L to spin off its South African coal assets and exit from its joint venture in Colombia, something BHP is keen to do as well. And Qatar's push to produce more LNG could be view through a more cynical prism: the Gulf nation may be seeking to maximise the revenue from its extremely low-cost natural gas assets while it still can - before decarbonisation does to LNG what it's busy doing to coal. Additionally BHP wishes to sell, or spin off, its energy coal assets in Australia, and earlier this year cut the value of its Mount Arthur thermal coal in New South Wales state by up to $1.25 billion, reflecting the market view that such assets have plunged in value.
|
If the deal does go through, it will be the latest coal exit by a major mining company, following plans by Anglo American AAL.L to spin off its South African coal assets and exit from its joint venture in Colombia, something BHP is keen to do as well. South32 is one of several major coal miners seeking to exit a business that has become increasingly problematic amid action by environmental activists, concern among shareholders and the withdrawal of financing and insurance for mines viewed as contributing to climate change. The planned sale was first announced in November 2019 with Seriti, a company owned by Black South African investors, initially agreeing to pay 100 million rand ($6.7 million) upfront plus deferred payments based on future cash flows until March 2024, with a ceiling of 1.5 billion rand per year.
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4546.0
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2021-04-19 00:00:00 UTC
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3 Stocks to Avoid This Week
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AAL
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-2021-04-19
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nan
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nan
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I took a look at three stocks to avoid last week, predicting that Delta Airlines (NYSE: DAL), Norwegian Cruise Line (NYSE: NCLH), and Carnival (NYSE: CCL) would have a bad week.
Delta Airlines shareholders buckled up for a 5% descent during the week. I figured the legacy air carrier would put out a poorly received report, and the financials did come into a little turbulence with another huge loss on a sharp decline in revenue.
Norwegian Cruise Line tumbled 7% for the week. It was a rough week for cruise lines. There was more pressure to keep the industry from resuming operations out of stateside ports this summer.
Carnival stock was the biggest sinker of the three stocks, losing 8% of its value. It was a great week to double up on the number of cruise stocks on this list to avoid. Carnival had risen 9% the week before, and this wiped nearly all of those previous gains out.
The three stocks averaged a 6.7% slide for the week. The S&P 500 actually rose during the week. The 1.4% gain naturally beat the three stocks that all went the wrong way. This week, I see Coinbase Global (NASDAQ: COIN), American Airlines (NASDAQ: AAL), and Travelzoo (NASDAQ: TZOO) as vulnerable investments in the near term. Here's why I think these are three stocks to avoid this week.
Image source: Getty Images.
1. Coinbase Global
Last week's buzzworthy IPO was Coinbase Global. The leading cryptocurrency marketplace is growingly briskly. Revenue soared 144% to $1.3 billion in 2020. It was a mesmerizing debutante, of course. Coinbase priced its direct listing at a reference price of $250, and it wasn't enough. It soared when it began trading well into Wednesday's trading day. It closed out the week trading 37% above its reference price.
Coinbase is going to be one of the market's best cryptocurrency stocks, giving investors to play the entire marketplace instead of individual tokens or players. However, the $68 billion market cap it has entering the new week of trading is problematic. There are a growing number of places to trade crypto, and trading costs for investors will invariably head lower in the process. If you saw the race to zero for stock brokerages it's easy to see this become a cutthroat niche as well.
Coinbase finds itself in a potentially lose-lose situation. If cryptocurrency begins losing favor obviously this will end horribly for Coinbase. However, success for the next-gen currency vehicles can also end badly for Coinbase as major financial hotbeds embrace crypto trading at more competitive commission rates.
2. American Airlines
I was right to be worried about Delta's quarterly report last week, and now we have American Airlines as the next legacy carrier on the runway. It reports on Thursday morning.
It's fair to point out that investors are more prepared for a dud out of American Airlines now that they heard from Delta last week. American Airlines stock took a 6% hit in an otherwise buoyant market trading last week, partly in sympathy with Delta's poorly received financials -- but also because American previewed its upcoming financials. It wasn't pretty. American Airlines expects to post a larger loss than analysts were modeling. Wall Street pros see revenue cut by more than half for the period.
A rough report isn't normally going to be a deal breaker, but then you have the stock's valuation to worry about. American Airlines is fetching an enterprise value well above the $33 billion it was commanding at the end of 2019 before the pandemic became a fundamentals-crushing reality. American Airlines ascending shares along with financing through fresh shares and debt have bloated the value of the business. The valuation is out of whack, and a rough report on Thursday will only hammer that point home.
3. Travelzoo
Travelzoo reported fourth-quarter results just five weeks ago, but it's back with its first-quarter results on Thursday. Travelzoo is a popular provider of travel deals with 30.2 million members worldwide, and I'll concede that this is a dangerous name to put on this list. Stimulus checks and COVID-19 vaccinations are picking up, and Travelzoo's a smart way for folks to travel sponsored getaway bargains.
The rub here is that there are still plenty of international travel restrictions in place. Travelzoo's overhead is low enough where it returned to profitability in the previous quarter, but it fell well short of analyst revenue targets. I see a repeat performance this week.
If you're looking for safe stocks, you aren't likely to find them in Coinbase, American Airlines, and Travelzoo this week.
10 stocks we like better than Travelzoo
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 Travelzoo 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 February 24, 2021
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool recommends Carnival and 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.
|
This week, I see Coinbase Global (NASDAQ: COIN), American Airlines (NASDAQ: AAL), and Travelzoo (NASDAQ: TZOO) as vulnerable investments in the near term. I figured the legacy air carrier would put out a poorly received report, and the financials did come into a little turbulence with another huge loss on a sharp decline in revenue. Coinbase is going to be one of the market's best cryptocurrency stocks, giving investors to play the entire marketplace instead of individual tokens or players.
|
This week, I see Coinbase Global (NASDAQ: COIN), American Airlines (NASDAQ: AAL), and Travelzoo (NASDAQ: TZOO) as vulnerable investments in the near term. I took a look at three stocks to avoid last week, predicting that Delta Airlines (NYSE: DAL), Norwegian Cruise Line (NYSE: NCLH), and Carnival (NYSE: CCL) would have a bad week. I figured the legacy air carrier would put out a poorly received report, and the financials did come into a little turbulence with another huge loss on a sharp decline in revenue.
|
This week, I see Coinbase Global (NASDAQ: COIN), American Airlines (NASDAQ: AAL), and Travelzoo (NASDAQ: TZOO) as vulnerable investments in the near term. I took a look at three stocks to avoid last week, predicting that Delta Airlines (NYSE: DAL), Norwegian Cruise Line (NYSE: NCLH), and Carnival (NYSE: CCL) would have a bad week. American Airlines stock took a 6% hit in an otherwise buoyant market trading last week, partly in sympathy with Delta's poorly received financials -- but also because American previewed its upcoming financials.
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This week, I see Coinbase Global (NASDAQ: COIN), American Airlines (NASDAQ: AAL), and Travelzoo (NASDAQ: TZOO) as vulnerable investments in the near term. Here's why I think these are three stocks to avoid this week. American Airlines I was right to be worried about Delta's quarterly report last week, and now we have American Airlines as the next legacy carrier on the runway.
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4547.0
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2021-04-19 00:00:00 UTC
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American Airlines cutting flights to South America because of COVID-19
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AAL
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https://www.nasdaq.com/articles/american-airlines-cutting-flights-to-south-america-because-of-covid-19-2021-04-19
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nan
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nan
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WASHINGTON, April 19 (Reuters) - American Airlines Co AAL.O said on Monday it will reduce flights to some destinations in South America because the COVID-19 pandemic has reduced demand.
The U.S. airline said it was suspending service to Manaus, Brazil, from Miami until Nov. 2 and delaying the start of service from New York to Santiago until July 2, instead of the planned May 7 start. It will also reduce the frequency of flights to Rio de Janeiro and Sao Paulo in Brazil, and to Lima from some U.S. airports.
(Reporting by David Shepardson; Editing by Leslie Adler)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, April 19 (Reuters) - American Airlines Co AAL.O said on Monday it will reduce flights to some destinations in South America because the COVID-19 pandemic has reduced demand. The U.S. airline said it was suspending service to Manaus, Brazil, from Miami until Nov. 2 and delaying the start of service from New York to Santiago until July 2, instead of the planned May 7 start. It will also reduce the frequency of flights to Rio de Janeiro and Sao Paulo in Brazil, and to Lima from some U.S. airports.
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WASHINGTON, April 19 (Reuters) - American Airlines Co AAL.O said on Monday it will reduce flights to some destinations in South America because the COVID-19 pandemic has reduced demand. The U.S. airline said it was suspending service to Manaus, Brazil, from Miami until Nov. 2 and delaying the start of service from New York to Santiago until July 2, instead of the planned May 7 start. (Reporting by David Shepardson; Editing by Leslie Adler) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, April 19 (Reuters) - American Airlines Co AAL.O said on Monday it will reduce flights to some destinations in South America because the COVID-19 pandemic has reduced demand. The U.S. airline said it was suspending service to Manaus, Brazil, from Miami until Nov. 2 and delaying the start of service from New York to Santiago until July 2, instead of the planned May 7 start. (Reporting by David Shepardson; Editing by Leslie Adler) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, April 19 (Reuters) - American Airlines Co AAL.O said on Monday it will reduce flights to some destinations in South America because the COVID-19 pandemic has reduced demand. The U.S. airline said it was suspending service to Manaus, Brazil, from Miami until Nov. 2 and delaying the start of service from New York to Santiago until July 2, instead of the planned May 7 start. It will also reduce the frequency of flights to Rio de Janeiro and Sao Paulo in Brazil, and to Lima from some U.S. airports.
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4548.0
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2021-04-19 00:00:00 UTC
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Top 5 Things To Watch In The Stock Market This Week
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https://www.nasdaq.com/articles/top-5-things-to-watch-in-the-stock-market-this-week-2021-04-19
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U.S. Stock Futures Edges Lower After Indices Closed At Record Highs
U.S. stock futures edges lower to start the week ahead, after the S&P 500 and Dow Jones Industrial Average closed at record highs on Friday. This came after a week of strong gains as bank stocks earnings topped estimates. Economic data were also instrumental in lifting the indices. Despite stocks trading around record levels, UBS recently said that the rally is far from over. In fact, UBS envisions the S&P 500 ending this year at 4,400. That implies a 5% upside above the benchmark index closed on Friday.
“While investing at all-time highs may be daunting for some, we believe there is more upside ahead…“Following two rounds of stimulus deployed in the quarter and the ongoing vaccination effort, there is growing evidence that U.S. economic activity is picking up. The latest jobs data, business sentiment readings, and retail sales all point to a strong recovery.”- UBS wrote in a note to clients
With strong economic data backing the recovery of the U.S. economy, Wall Street is expected to kick off the second quarter with a strong rally. However, the stock futures seem to paint a different picture in the stock market today. Investors started the week on a cautious note amid concerns that the rollout of COVID-19 vaccines was facing hiccups. The Dow, S&P 500 and Nasdaq futures are all trading in the negative territory, sliding 0.24%, 0.26%, and 0.37% as of 8:03 a.m. ET.
[Read More] Best Stocks To Buy Now? 4 Cyclical Stocks To Consider
Bitcoin & Dogecoin Are Still The Talks Of Wall Street
In the run-up to the Coinbase (NASDAQ: COIN) IPO last week, Bitcoin and many other cryptocurrencies have skyrocketed in prices. However, traders were woken up on Sunday morning to massive liquidation notifications. This is rather unusual as weekends are usually the time where traders take time off from trading. But that doesn’t seem to be the case last week. So, what happened?
Now, no one can be sure what led to the massive liquidation event. There were some speculations that the U.S. Treasury is looking to charge several financial institutions for money laundering through the use of cryptocurrencies. Another possible cause related to the decline in Bitcoin prices was the power outages occurring in Xinjiang, China. According to the Cambridge Bitcoin Energy Consumption Index, or BECI, Xinjiang represents nearly one-quarter of the global hash rate. Whether these are the real reasons behind the plunge remains to be seen.
Apart from Bitcoin, Dogecoin has been catching attention on Wall Street as of late. The 400% rally in a week has created another FOMO moment among traders and investors alike. Its rising popularity came partly as a result of the apparent support from Tesla’s (NASDAQ: TSLA) Elon Musk. Despite giving up a lot of those gains from last week, Dogecoin seems to make a comeback again as of Sunday. This came after a few companies have started to accept Dogecoin as a payment option.
Read More
4 Top Communication Stocks To Watch In April
The Most Frequently Asked Questions About The Stock Market In 2021
Netflix Earnings
Netflix (NASDAQ: NFLX) will be among the major names reporting results this week. The streaming giant is slated to report its first-quarter results on April 20 after the closing bell. Given that the company comes out as one of the best stay-at-home stocks, it has a new challenge. And that is to show that it can stay profitably. After all, vaccinations are picking up in momentum. Therefore, investors are wondering if the stay-at-home darlings like Netflix could continue to grow healthily.
That said, the big number to watch when the company reports tomorrow is its subscriber growth. Of course, the growth we’ve seen last year is unusual and clearly, not sustainable. In comparison, the results could look mild. In particular, the company guided 6 million new paid subscribers during the period. While producing new content during the pandemic continues to be challenging, the company’s multi-year deal with Sony Pictures to have access to its theatrical movies should bode well for NFLX stock.
“While we continue to view Netflix as a long-term winner in the video-on-demand space, we remain hesitant around near-term factors including 1) risk to the pace of subscriber additions post-pandemic; 2) the pandemic’s effects on content releases into 2021; and 3) the impact of price releases on subscriber retention, especially given scaling of competing direct-to-consumer services, most of which are priced at a discount to Netflix,” Aaron Kessler, analyst at Raymond James.
[Read More] Best Dividend Stocks To Buy Right Now? 4 To Watch
Snap Earnings
Within the increasingly competitive social media landscape, Snap (NYSE: SNAP) continues to deliver. Snapchat got a boost with users spending more time on their devices during the pandemic. But it’s worth pointing out that the company could do just as well when the economy reopens. Why? That’s because the core use of the app actually coincides with users doing things. The more activities there are, the more pictures and videos users will snap.
Wall Street is optimistic about the quarterly figures where the firm reports its earnings on April 22 after the closing bell. Some of the key drivers of Snap’s upcoming quarterly result will be persistently strong user growth and ramping direct response advertising. Considering the strong growth metrics of the social media company, would you consider buying SNAP stock now?
Q1 Earnings Season Kicks Into High Gear
Earnings season kicked off last week when major banks reported quarterly results that have exceeded Wall Street’s already elevated expectations. Now, as the first-quarter earnings season ramps up this week, could we expect another week of strong earnings? Some of the big consumer names reporting are Coca-Cola (NYSE: KO), Chipotle Mexican Grill (NYSE: CMG), and Procter & Gamble (NYSE: PG).
If you are keen on reopening stocks, many airline stocks are also reporting earnings this week. They include United Airlines (NASDAQ: UAL), Spirit Airlines (NYSE: SAVE), Alaska Air Group (NYSE: ALK), American Airlines (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV). There are also notable names in the industrial sector that are reporting this week. These include Lockheed Martin (NYSE: LMT), Honeywell (NYSE: HON), and Kimberly-Clark (NYSE: KMB). So, whether it is chasing cryptocurrencies or following a string of earnings, there is a lot to keep up with as the week gets underway.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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They include United Airlines (NASDAQ: UAL), Spirit Airlines (NYSE: SAVE), Alaska Air Group (NYSE: ALK), American Airlines (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV). “While investing at all-time highs may be daunting for some, we believe there is more upside ahead…“Following two rounds of stimulus deployed in the quarter and the ongoing vaccination effort, there is growing evidence that U.S. economic activity is picking up. While producing new content during the pandemic continues to be challenging, the company’s multi-year deal with Sony Pictures to have access to its theatrical movies should bode well for NFLX stock.
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They include United Airlines (NASDAQ: UAL), Spirit Airlines (NYSE: SAVE), Alaska Air Group (NYSE: ALK), American Airlines (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV). U.S. Stock Futures Edges Lower After Indices Closed At Record Highs U.S. stock futures edges lower to start the week ahead, after the S&P 500 and Dow Jones Industrial Average closed at record highs on Friday. Read More 4 Top Communication Stocks To Watch In April The Most Frequently Asked Questions About The Stock Market In 2021 Netflix Earnings Netflix (NASDAQ: NFLX) will be among the major names reporting results this week.
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They include United Airlines (NASDAQ: UAL), Spirit Airlines (NYSE: SAVE), Alaska Air Group (NYSE: ALK), American Airlines (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV). U.S. Stock Futures Edges Lower After Indices Closed At Record Highs U.S. stock futures edges lower to start the week ahead, after the S&P 500 and Dow Jones Industrial Average closed at record highs on Friday. Read More 4 Top Communication Stocks To Watch In April The Most Frequently Asked Questions About The Stock Market In 2021 Netflix Earnings Netflix (NASDAQ: NFLX) will be among the major names reporting results this week.
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They include United Airlines (NASDAQ: UAL), Spirit Airlines (NYSE: SAVE), Alaska Air Group (NYSE: ALK), American Airlines (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV). Read More 4 Top Communication Stocks To Watch In April The Most Frequently Asked Questions About The Stock Market In 2021 Netflix Earnings Netflix (NASDAQ: NFLX) will be among the major names reporting results this week. Given that the company comes out as one of the best stay-at-home stocks, it has a new challenge.
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4549.0
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2021-04-19 00:00:00 UTC
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GLOBAL MARKETS-Asian stocks hit 1-mth highs, Bitcoin climbs
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https://www.nasdaq.com/articles/global-markets-asian-stocks-hit-1-mth-highs-bitcoin-climbs-2021-04-19
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By Swati Pandey
SYDNEY, April 19 (Reuters) - Asian shares hit a one-month high on Monday helped by expectations monetary policy will remain accommodative the world over, while COVID-19 vaccine rollouts help ease fears of another dangerous wave of coronavirus infections.
Indicators were positive for Europe as well with futures for Eurostoxx 50 STXEc1 up 0.2% and Germany's DAX FDXc1 adding 0.1% though those for London's FTSE FFIc1 were barely changed.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS went as high as 699.70, a level not seen since March 18. It was last up 0.1% at 696.46.
The index jumped 1.2% last week and is up 5.1% so far this year, on track for its third straight yearly gain.
"The extremely supportive monetary and fiscal policy setting continues to provide a fertile environment for risk assets," said Rodrigo Catril, senior forex strategist at National Australia Bank.
Australian shares .AXJO finished unchanged from Friday's close while New Zealand's benchmark index .NZ50 gained 0.6% and South Korea's KOSPI .KS11 added 0.1%. Japan's Nikkei .N225 turned around its losses to end flat.
Chinese shares, which started in negative territory, recouped losses with the blue-chip index .CSI300 up 2.2%. Hong Kong's Hang Seng index rose 0.6%.
On Friday, the S&P 500 .SPX gained 0.4% to close at a new record high while clocking its sixth straight weekly gain. The Dow .DJI finished 0.5%, also at a record high while the Nasdaq .IXIC climbed 0.1%.
The gains are unlikely to extend further with e-mini futures for the S&P 500 ESc1 down 0.2%.
This week is off to a quiet start with no major data releases slated on Monday.
Investors will keep their eyes peeled for earnings from IBM IBM.N and Coca-Cola COKE.O later in the day. Netflix NFLX.O reports on Tuesday while later in the week American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results.
The European Central Bank (ECB) meets on Thursday with no changes to rates or guidance expected while preliminary data on factory activity around the globe for April is due on Friday.
Elsewhere, Bitcoin BTC=BTSP, the world's biggest cryptocurrency, reversed its losses after plunging as much as 14% on Sunday following speculation the U.S. Treasury may be looking at cracking down on money-laundering activity within digital assets, NAB's Catril said.
Data website CoinMarketCap cited a blackout in China’s Xinjiang region, which reportedly powers a lot of bitcoin mining, for the selloff.
The retreat in Bitcoin also comes after Turkey's central bank banned the use of cryptocurrencies for purchases on Friday.
Bitcoin was last up 1%. It has risen more than 90% year to date, driven by its mainstream acceptance as an investment and a means of payment, accompanied by the rush of retail cash into stocks, exchange-traded funds and other risky assets.
In currencies, the U.S. dollar =USD loitered near a four-week low against a basket of currencies as investors increasingly bought into the Federal Reserve's insistence it would keep an accommodative policy stance for a while longer.
The dollar index measuring the greenback against a basket of six currencies was unchanged at 91.567, not far from its lowest since March 18 touched on Friday.
Against the Japanese yen JPY=, the greenback was off 0.2% at 108.52. The euro was a tad lower EUR= at $1.1964 while the British pound GBP= gained 0.2% to $1.3854. FRX/
The risk-sensitive Aussie dollar AUD=D3 climbed to $0.7740.
In commodities, oil prices were down with the Brent LCOc1 slipping 22 cents to $66.55 a barrel and U.S. crude CLc1 falling 19 cents to $62.94.
Gold was up a tad at $1,776.7 an ounce XAU=.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Editing by Michael Perry and Sam Holmes)
((swati.pandey@thomsonreuters.com; +61 2 9321 8166; Reuters Messaging: swati.pandey.thomsonreuters.com@reuters.net; twitter.com/swatisays))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Netflix NFLX.O reports on Tuesday while later in the week American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. "The extremely supportive monetary and fiscal policy setting continues to provide a fertile environment for risk assets," said Rodrigo Catril, senior forex strategist at National Australia Bank. The European Central Bank (ECB) meets on Thursday with no changes to rates or guidance expected while preliminary data on factory activity around the globe for April is due on Friday.
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Netflix NFLX.O reports on Tuesday while later in the week American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. By Swati Pandey SYDNEY, April 19 (Reuters) - Asian shares hit a one-month high on Monday helped by expectations monetary policy will remain accommodative the world over, while COVID-19 vaccine rollouts help ease fears of another dangerous wave of coronavirus infections. The index jumped 1.2% last week and is up 5.1% so far this year, on track for its third straight yearly gain.
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Netflix NFLX.O reports on Tuesday while later in the week American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. Australian shares .AXJO finished unchanged from Friday's close while New Zealand's benchmark index .NZ50 gained 0.6% and South Korea's KOSPI .KS11 added 0.1%. On Friday, the S&P 500 .SPX gained 0.4% to close at a new record high while clocking its sixth straight weekly gain.
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Netflix NFLX.O reports on Tuesday while later in the week American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. On Friday, the S&P 500 .SPX gained 0.4% to close at a new record high while clocking its sixth straight weekly gain. The retreat in Bitcoin also comes after Turkey's central bank banned the use of cryptocurrencies for purchases on Friday.
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4550.0
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2021-04-19 00:00:00 UTC
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GLOBAL MARKETS-World shares hit highs as markets focus on earnings
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https://www.nasdaq.com/articles/global-markets-world-shares-hit-highs-as-markets-focus-on-earnings-2021-04-19
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By Elizabeth Howcroft
LONDON, April 19 (Reuters) - World shares hit record highs in the European session on Monday, as markets were generally upbeat about the prospects for a global economic recovery from COVID-19, ahead of a busy week for earnings.
Europe's STOXX 600 rose to a record high before easing some gains, up 0.1% at 1105 GMT .STOXX. Asian shares hit one-month highs overnight.
MSCI world equity index, which tracks shares in 49 countries, also climbed to a new peak, up 0.2% .MIWD00000PUS.
But U.S. stock futures pointed to a lower open for Wall Street, after the S&P 500 and the Dow closed at record highs in the previous session.
Matthias Scheiber, global head of portfolio management at Wells Fargo Asset Management cited low interest rates, the rollout of COVID-19 vaccines and the fiscal stimulus package in the United States as reasons for his bullish stance on equities.
"Risk is coming down, volatility is coming down … we see the slow reopening of global economies, the rollout of the vaccine and the huge catch-up in demand so from that perspective it should be positive for economic growth."
"We had a strong rally in cyclical and value stocks since the start of this year - we would like to see confirmation in the earnings."
Earnings from IBM IBM.N and Coca-Cola COKE.O are due later in the session. Netflix NFLX.O reports on Tuesday. Later in the week, American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results.
The European Central Bank meeting on Thursday will also be in focus this week. ECB President Christine Lagarde said last week that the euro zone economy is still standing on the "two crutches" of monetary and fiscal stimulus and these cannot be taken away until it makes a full recovery.
The benchmark U.S. Treasury yield, which dropped as low as 1.528% last Thursday, was at 1.5764% US10YT=RR.
In currency markets, the dollar index was down 0.6% at its lowest levels in more than a month =USD, at 91.052, having weakened since its recent peak of 93.439 at the end of March.
Dollar-yen was also down 0.6%, changing hands at 108.145JPY=EBS.
The euro was up 0.5% versus the dollar at $1.20435EUR=EBS.
"We have been highlighting over the past two months that USD could bottom out, in contrast to consensus, and believed that this would be a tactical problem for EM and for certain commodity trades," wrote JP Morgan's head of global and European equity strategy, Mislav Matejka, in a note to clients. "We think the risk of a firmer USD, through rising US-Europe interest rate differential, is not finished."
Matejka also said that, although there is the technical potential for a correction in equities, he would not cut stocks exposure on the six- to nine-month horizon.
"We think that it is more likely that we will be raising our year-end targets, rather than reducing them, as we move through the summer," he said.
Likewise, Wells Fargo Asset Management's Matthias Scheiber said "We believe we are in the 'buy the dip' environment at this moment given that both fiscal and monetary policy are very supportive, so if we would see a correction … we would probably increase the equity position.”
Bitcoin was up 1%BTC=BTSP at around $56,850, nursing losses from Sunday, when it plunged as much as 14% to $51,541.
Oil prices fell as rising COVID-19 infections in India prompted concern than stronger measures to contain the pandemic would hurt economic activity.
A recent surge in COVID-19 cases could see major parts of Japan slide back into states of emergency, with authorities in Tokyo and Osaka looking at renewed curbs.
Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
ECB PEPPhttps://tmsnrt.rs/2Ni0Zyb
(Reporting by Elizabeth Howcroft, editing by Larry King)
((Elizabeth.Howcroft@thomsonreuters.com; +44 02075427104;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Later in the week, American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. By Elizabeth Howcroft LONDON, April 19 (Reuters) - World shares hit record highs in the European session on Monday, as markets were generally upbeat about the prospects for a global economic recovery from COVID-19, ahead of a busy week for earnings. "We have been highlighting over the past two months that USD could bottom out, in contrast to consensus, and believed that this would be a tactical problem for EM and for certain commodity trades," wrote JP Morgan's head of global and European equity strategy, Mislav Matejka, in a note to clients.
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Later in the week, American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. Matthias Scheiber, global head of portfolio management at Wells Fargo Asset Management cited low interest rates, the rollout of COVID-19 vaccines and the fiscal stimulus package in the United States as reasons for his bullish stance on equities. Likewise, Wells Fargo Asset Management's Matthias Scheiber said "We believe we are in the 'buy the dip' environment at this moment given that both fiscal and monetary policy are very supportive, so if we would see a correction … we would probably increase the equity position.” Bitcoin was up 1%BTC=BTSP at around $56,850, nursing losses from Sunday, when it plunged as much as 14% to $51,541.
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Later in the week, American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. By Elizabeth Howcroft LONDON, April 19 (Reuters) - World shares hit record highs in the European session on Monday, as markets were generally upbeat about the prospects for a global economic recovery from COVID-19, ahead of a busy week for earnings. Matthias Scheiber, global head of portfolio management at Wells Fargo Asset Management cited low interest rates, the rollout of COVID-19 vaccines and the fiscal stimulus package in the United States as reasons for his bullish stance on equities.
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Later in the week, American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. By Elizabeth Howcroft LONDON, April 19 (Reuters) - World shares hit record highs in the European session on Monday, as markets were generally upbeat about the prospects for a global economic recovery from COVID-19, ahead of a busy week for earnings. Matthias Scheiber, global head of portfolio management at Wells Fargo Asset Management cited low interest rates, the rollout of COVID-19 vaccines and the fiscal stimulus package in the United States as reasons for his bullish stance on equities.
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4551.0
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2021-04-19 00:00:00 UTC
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United Airlines Stock Looks Fairly Valued But Obstacles Remain
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https://www.nasdaq.com/articles/united-airlines-stock-looks-fairly-valued-but-obstacles-remain-2021-04-19
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With the progress in mass vaccination, passenger numbers at TSA checkpoints have observed a strong uptick in the past two months. United Airlines (NASDAQ: UAL) along with its peers, American and Delta, have revised their full-year outlook with a likelihood of positive cash generation in summer. Assisted by the government’s payroll support program, United reported just $4 billion of operating cash outflow in 2020 – fairly lower than the $6.5 billion drop in the stock’s market capitalization. Positive sentiment surrounding a quicker than anticipated recovery in travel demand has pushed UAL stock from $40 in early January to $58 at present. However, the risks associated with a fourth wave of the pandemic triggered by new virus strains remains a concern. Thus, Trefis believes that the stock is fairly valued and highlights quarterly trends in revenues and earnings in an interactive dashboard, United Airlines Earnings Preview.
United Airlines has $27 billion of debt and $11 billion of cash on the balance sheet
In a historic move, United Airlines raised $6.8 billion of long-term debt in July 2020 by collateralizing its loyalty program assets. Subsequently, the company raised capital through multiple debt and equity offerings to support its large daily cash burn figures. However, the government launched the second round of payroll support in January 2021 due to continued slump in air travel demand and again limited operating losses. Thus, the company holds a bulk of its long-term debt as short-term investments due to stringent capital preservation measures including capex curtailments and dividend suspension. In conformity with PSP-2 requirements, the company has suspended dividends and share-repurchases until March 2022 and investors can only benefit from capital gains as travel demand recovers.
How has UAL stock fared in comparison to the S&P 500?
UAL stock declined from levels of around $80 in February 2020 (pre-crisis peak) to levels of around $21 in March 2020 (as the markets bottomed out), implying UAL stock lost 74% from its approximate pre-crisis peak. With the easing of restriction measures, the stock has more than doubled to $58, but the newly imposed lockdown in Europe and prevalence of U.K. strain across the world are a concern for the travel industry. Thus, the stock is likely to observe headwinds in the near term.
The coronavirus pandemic has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for FedEx vs. Quest Diagnostics shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.
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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United Airlines (NASDAQ: UAL) along with its peers, American and Delta, have revised their full-year outlook with a likelihood of positive cash generation in summer. Thus, the company holds a bulk of its long-term debt as short-term investments due to stringent capital preservation measures including capex curtailments and dividend suspension. With the easing of restriction measures, the stock has more than doubled to $58, but the newly imposed lockdown in Europe and prevalence of U.K. strain across the world are a concern for the travel industry.
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United Airlines (NASDAQ: UAL) along with its peers, American and Delta, have revised their full-year outlook with a likelihood of positive cash generation in summer. Assisted by the government’s payroll support program, United reported just $4 billion of operating cash outflow in 2020 – fairly lower than the $6.5 billion drop in the stock’s market capitalization. United Airlines has $27 billion of debt and $11 billion of cash on the balance sheet In a historic move, United Airlines raised $6.8 billion of long-term debt in July 2020 by collateralizing its loyalty program assets.
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Assisted by the government’s payroll support program, United reported just $4 billion of operating cash outflow in 2020 – fairly lower than the $6.5 billion drop in the stock’s market capitalization. United Airlines has $27 billion of debt and $11 billion of cash on the balance sheet In a historic move, United Airlines raised $6.8 billion of long-term debt in July 2020 by collateralizing its loyalty program assets. UAL stock declined from levels of around $80 in February 2020 (pre-crisis peak) to levels of around $21 in March 2020 (as the markets bottomed out), implying UAL stock lost 74% from its approximate pre-crisis peak.
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Assisted by the government’s payroll support program, United reported just $4 billion of operating cash outflow in 2020 – fairly lower than the $6.5 billion drop in the stock’s market capitalization. United Airlines has $27 billion of debt and $11 billion of cash on the balance sheet In a historic move, United Airlines raised $6.8 billion of long-term debt in July 2020 by collateralizing its loyalty program assets. Subsequently, the company raised capital through multiple debt and equity offerings to support its large daily cash burn figures.
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4552.0
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2021-04-18 00:00:00 UTC
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GLOBAL MARKETS-Asian shares near 1-1/2 week highs, Bitcoin recoups losses
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https://www.nasdaq.com/articles/global-markets-asian-shares-near-1-1-2-week-highs-bitcoin-recoups-losses-2021-04-18
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By Swati Pandey
SYDNEY, April 19 (Reuters) - Asian shares hovered near 1-1/2 week highs on Monday helped by expectations monetary policy will remain accommodative the world over, while COVID-19 vaccine rollouts help ease fears of another dangerous wave of coronavirus infections.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was last at 695.59, within striking distance of Friday's high of 696.48 - a level not seen since Apr. 7.
The index jumped 1.2% last week and is up 5% so far this year, on track for its third straight yearly gain.
"The extremely supportive monetary and fiscal policy setting continues to provide a fertile environment for risk assets," said Rodrigo Catril, senior forex strategist at National Australia Bank.
Australian shares .AXJO were 0.25% higher while New Zealand's benchmark index .NZ50 and South Korea's KOSPI .KS11 added 0.4% each. Japan's Nikkei .N225 eased 0.4%.
On Friday, the S&P 500 .SPX gained 0.4% to close at a new record high while clocking its sixth straight weekly gain. The Dow .DJI finished 0.5%, also at a record high while the Nasdaq .IXIC climbed 0.1%.
E-mini futures for the S&P 500 ESc1 were down 0.3% in early Asian trading.
This week is off to a quiet start with no major data releases slated on Monday.
Investors will keep their eyes peeled for earnings from IBM IBM.N and Coca-Cola COKE.O later in the day. Netflix NFLX.O reports on Tuesday while later in the week American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results.
The European Central Bank (ECB) meets on Thursday with no changes to rates or guidance expected while preliminary data on factory activity around the globe for April is due on Friday.
Elsewhere, Bitcoin BTC=BTSP, the world's biggest cryptocurrency, recouped most of its losses after plunging as much as 14% on Sunday following speculation the U.S. Treasury may be looking at cracking down on money-laundering activity within digital assets, NAB's Catril said.
Data website CoinMarketCap cited a blackout in China’s Xinjiang region, which reportedly powers a lot of bitcoin mining, for the selloff.
The retreat in Bitcoin also comes after Turkey's central bank banned the use of cryptocurrencies for purchases on Friday.
Bitcoin is up more than 90% year to date, driven by its mainstream acceptance as an investment and a means of payment, accompanied by the rush of retail cash into stocks, exchange-traded funds and other risky assets.
In currencies, the U.S. dollar =USD loitered near a four-week low against a basket of currencies as investors increasingly bought into the Federal Reserve's insistence it would keep an accommodative policy stance for a while longer.
The dollar index measuring the greenback against a basket of six currencies was unchanged at 91.612, not far from its lowest since March 18 touched on Friday.
Against the Japanese yen JPY=, the greenback was off a touch at 108.72. The euro was a tad lower EUR= at $1.1966 while the British pound GBP= eased 0.07% to $1.3820. FRX/
The risk-sensitive Aussie dollar AUD=D3 slipped for a second straight day to be down 0.2% at $0.7715.
In commodities, oil prices were down with the Brent LCOc1 slipping 34 cents to $66.43 a barrel and U.S. crude CLc1 falling 29 cents to $62.84.
Gold was up 0.2% at $1,779.3 an ounce XAU=.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Editing by Michael Perry)
((swati.pandey@thomsonreuters.com; +61 2 9321 8166; Reuters Messaging: swati.pandey.thomsonreuters.com@reuters.net; twitter.com/swatisays))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Netflix NFLX.O reports on Tuesday while later in the week American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. "The extremely supportive monetary and fiscal policy setting continues to provide a fertile environment for risk assets," said Rodrigo Catril, senior forex strategist at National Australia Bank. The European Central Bank (ECB) meets on Thursday with no changes to rates or guidance expected while preliminary data on factory activity around the globe for April is due on Friday.
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Netflix NFLX.O reports on Tuesday while later in the week American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. By Swati Pandey SYDNEY, April 19 (Reuters) - Asian shares hovered near 1-1/2 week highs on Monday helped by expectations monetary policy will remain accommodative the world over, while COVID-19 vaccine rollouts help ease fears of another dangerous wave of coronavirus infections. The index jumped 1.2% last week and is up 5% so far this year, on track for its third straight yearly gain.
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Netflix NFLX.O reports on Tuesday while later in the week American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. By Swati Pandey SYDNEY, April 19 (Reuters) - Asian shares hovered near 1-1/2 week highs on Monday helped by expectations monetary policy will remain accommodative the world over, while COVID-19 vaccine rollouts help ease fears of another dangerous wave of coronavirus infections. On Friday, the S&P 500 .SPX gained 0.4% to close at a new record high while clocking its sixth straight weekly gain.
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Netflix NFLX.O reports on Tuesday while later in the week American Airlines AAL.O and Southwest LUV.N will be the first major post-COVID cyclicals to post results. The index jumped 1.2% last week and is up 5% so far this year, on track for its third straight yearly gain. The retreat in Bitcoin also comes after Turkey's central bank banned the use of cryptocurrencies for purchases on Friday.
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4553.0
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2021-04-16 00:00:00 UTC
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Boeing's Probe Into 737 MAX Electrical Issues Expands
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AAL
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https://www.nasdaq.com/articles/boeings-probe-into-737-max-electrical-issues-expands-2021-04-16
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Inspections of Boeing (NYSE: BA) 737 MAX jets grounded last week have reportedly turned up additional potential electrical issues, raising questions about the scale and size of a potential fix.
Boeing on April 8 requested that about 60 737 MAX jets be grounded temporarily to address potential electrical system problems in the jets, a move that impacted 16 airlines, including Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL).
Image source: Boeing.
Boeing, according to an Aviation Week report, has since discovered the issues extend beyond the area originally flagged. The initial issue was said to be a problem with the electrical insulation, which could lead to grounding issues.
There is not yet any indication the investigation will lead to a wider recall, though it is possible the planes affected could require a costly overhaul of their electrical systems.
The reports come at a difficult time for both the 737 MAX and Boeing. The plane was pulled out of service for more than 18 months after a pair of fatal accidents, only returning to the air last fall. So far, there has been little talk of consumer hesitancy to board the plane, but both Boeing and the airlines would prefer to avoid a fresh round of negative headlines concerning the plane.
The issue also adds to Boeing's laundry list of recent manufacturing issues. In addition to its 737 MAX problems, Boeing's 787 Dreamliner recently dealt with a delivery halt to address issues with its carbon fiber skin, and a new version of the 777 has been delayed by a few years due in part to development issues.
On the military side, Boeing's long-troubled KC-46 tanker in recent years has dealt with issues including debris left inside after manufacture and cargo-fastener issues.
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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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Boeing on April 8 requested that about 60 737 MAX jets be grounded temporarily to address potential electrical system problems in the jets, a move that impacted 16 airlines, including Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). Boeing, according to an Aviation Week report, has since discovered the issues extend beyond the area originally flagged. There is not yet any indication the investigation will lead to a wider recall, though it is possible the planes affected could require a costly overhaul of their electrical systems.
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Boeing on April 8 requested that about 60 737 MAX jets be grounded temporarily to address potential electrical system problems in the jets, a move that impacted 16 airlines, including Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). Inspections of Boeing (NYSE: BA) 737 MAX jets grounded last week have reportedly turned up additional potential electrical issues, raising questions about the scale and size of a potential fix. In addition to its 737 MAX problems, Boeing's 787 Dreamliner recently dealt with a delivery halt to address issues with its carbon fiber skin, and a new version of the 777 has been delayed by a few years due in part to development issues.
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Boeing on April 8 requested that about 60 737 MAX jets be grounded temporarily to address potential electrical system problems in the jets, a move that impacted 16 airlines, including Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). Inspections of Boeing (NYSE: BA) 737 MAX jets grounded last week have reportedly turned up additional potential electrical issues, raising questions about the scale and size of a potential fix. In addition to its 737 MAX problems, Boeing's 787 Dreamliner recently dealt with a delivery halt to address issues with its carbon fiber skin, and a new version of the 777 has been delayed by a few years due in part to development issues.
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Boeing on April 8 requested that about 60 737 MAX jets be grounded temporarily to address potential electrical system problems in the jets, a move that impacted 16 airlines, including Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). Inspections of Boeing (NYSE: BA) 737 MAX jets grounded last week have reportedly turned up additional potential electrical issues, raising questions about the scale and size of a potential fix. The initial issue was said to be a problem with the electrical insulation, which could lead to grounding issues.
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4554.0
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2021-04-16 00:00:00 UTC
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Reject incoming Glencore CEO's pay package, advisers recommend
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AAL
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https://www.nasdaq.com/articles/reject-incoming-glencore-ceos-pay-package-advisers-recommend-2021-04-16
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LONDON, April 16 (Reuters) - Glencore GLEN.L shareholders should reject a proposed pay package for incoming CEO Gary Nagle at the mining and trading firm's annual general meeting (AGM) this month, proxy advisers Glass Lewis and Institutional Shareholder Services (ISS) have recommended.
Glencore announced in December that Nagle would take over as CEO from Ivan Glasenberg, who has been at the helm for 19 years, from July.
Glasenberg had a yearly salary of $1.5 million with no further incentives. He is the company's second largest shareholder at 9.1%, according to Refinitiv data.
Under the new proposed pay plan, Nagle would receive a maximum total compensation of $10.4 million, including short-term incentives and the introduction of a restricted share plan (RSP), a form of long-term pay whereby shares are held by the employer for a certain period. Share rewards would account for 60% of the total.
Around 40% would be held back until two years post employment under the holding requirement, Glencore said in its annual report.
"The maximum total annual remuneration that the CEO will actually receive during his employment is c. $6.4 million compared to the peer maximum of $11-18 million," it said.
Executive pay has come under increased scrutiny since the 2009 financial crisis and regulators are calling for restraint as the extent of the damage wrought by the COVID-19 pandemic emerges.
Companies argue that competitive compensation is key to retain talent.
In a note to shareholders on Thursday, ISS said the "proposed pay package is considered excessive with a large proportion being non-performance-related, partly due to the introduction of an RSP."
"The package is driven by a salary of $1.8 million, which stands out as relatively high amongst peers," said ISS, which as a proxy adviser provides shareholders with research and voting recommendations.
Glencore's remuneration committee, which said in its annual report that the proposed remuneration of up to $10.4 million is aligned to shareholders' interests, compared the executive pay to peers including Anglo American AAL.L, BHP BHPB.L, BP BP.L, Rio Tinto RIO.L and Royal Dutch Shell RDSa.L.
Glass Lewis noted Nagle's compensation would be excessive for a "newly appointed CEO with no previous experience of running a publicly listed company."
Glencore's AGM will be split between a webcast on April 22 and a closed meeting on April 29.
(Reporting by Clara Denina; editing by Jason Neely)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Glencore's remuneration committee, which said in its annual report that the proposed remuneration of up to $10.4 million is aligned to shareholders' interests, compared the executive pay to peers including Anglo American AAL.L, BHP BHPB.L, BP BP.L, Rio Tinto RIO.L and Royal Dutch Shell RDSa.L. In a note to shareholders on Thursday, ISS said the "proposed pay package is considered excessive with a large proportion being non-performance-related, partly due to the introduction of an RSP." "The package is driven by a salary of $1.8 million, which stands out as relatively high amongst peers," said ISS, which as a proxy adviser provides shareholders with research and voting recommendations.
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Glencore's remuneration committee, which said in its annual report that the proposed remuneration of up to $10.4 million is aligned to shareholders' interests, compared the executive pay to peers including Anglo American AAL.L, BHP BHPB.L, BP BP.L, Rio Tinto RIO.L and Royal Dutch Shell RDSa.L. LONDON, April 16 (Reuters) - Glencore GLEN.L shareholders should reject a proposed pay package for incoming CEO Gary Nagle at the mining and trading firm's annual general meeting (AGM) this month, proxy advisers Glass Lewis and Institutional Shareholder Services (ISS) have recommended. Under the new proposed pay plan, Nagle would receive a maximum total compensation of $10.4 million, including short-term incentives and the introduction of a restricted share plan (RSP), a form of long-term pay whereby shares are held by the employer for a certain period.
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Glencore's remuneration committee, which said in its annual report that the proposed remuneration of up to $10.4 million is aligned to shareholders' interests, compared the executive pay to peers including Anglo American AAL.L, BHP BHPB.L, BP BP.L, Rio Tinto RIO.L and Royal Dutch Shell RDSa.L. LONDON, April 16 (Reuters) - Glencore GLEN.L shareholders should reject a proposed pay package for incoming CEO Gary Nagle at the mining and trading firm's annual general meeting (AGM) this month, proxy advisers Glass Lewis and Institutional Shareholder Services (ISS) have recommended. Under the new proposed pay plan, Nagle would receive a maximum total compensation of $10.4 million, including short-term incentives and the introduction of a restricted share plan (RSP), a form of long-term pay whereby shares are held by the employer for a certain period.
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Glencore's remuneration committee, which said in its annual report that the proposed remuneration of up to $10.4 million is aligned to shareholders' interests, compared the executive pay to peers including Anglo American AAL.L, BHP BHPB.L, BP BP.L, Rio Tinto RIO.L and Royal Dutch Shell RDSa.L. LONDON, April 16 (Reuters) - Glencore GLEN.L shareholders should reject a proposed pay package for incoming CEO Gary Nagle at the mining and trading firm's annual general meeting (AGM) this month, proxy advisers Glass Lewis and Institutional Shareholder Services (ISS) have recommended. Glasenberg had a yearly salary of $1.5 million with no further incentives.
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2021-04-16 00:00:00 UTC
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Ahead Of Earnings, Are More Gains Anticipated In Delta Airlines Stock?
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https://www.nasdaq.com/articles/ahead-of-earnings-are-more-gains-anticipated-in-delta-airlines-stock-2021-04-16
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As passenger numbers improved at TSA checkpoints over the past two months, Delta Airlines (NYSE: DAL) revised its first-quarter outlook in mid-March. While revenues are expected to be 60% below Q1 2019 levels, the likelihood of positive cash flow during the summer has pushed the stock from $40 in December to near $50 at present. Assisted by the government’s payroll support program, Delta reported $3.7 billion of operating cash outflow in 2020 – fairly lower than the $6 billion drop in the stock’s market capitalization since February 2020.
While the airline industry continues to face significant headwinds, Trefis believes that Delta Airlines is likely to report better-than-expected revenue and earnings for Q1 2021 which will result in the company’s stock trending higher this week. That said, we believe the stock has limited upside over the next several months given the risks associated with a fourth wave of the pandemic triggered by new virus strains. We highlight quarterly revenue trends for the company along with our estimates for Q1 2021 as well as full-year 2021 in an interactive dashboard, Delta Airlines Earnings Preview.
Delta Airlines has $27 billion of debt and $14 billion of cash on the balance sheet
In 2020, the company raised capital through multiple debt and equity offerings to support its huge daily cash burn figures. The company entered into the second round of payroll support in January 2021 due to a continued slump in air travel demand and further limited its operating losses. Stringent capital preservation measures, capex curtailments, and dividend suspension have supported Delta in maintaining a strong balance sheet with a bulk of long-term debt utilized to purchase short-term investments. In conformity with PSP-2 requirements, the company has suspended dividends and share repurchases until March 2022 and investors can only benefit from capital gains as travel demand recovers.
How has DAL stock fared in comparison to the S&P 500?
DAL stock declined from levels of around $58 in February 2020 (pre-crisis peak) to levels of around $22 in March 2020 (as the markets bottomed out), implying DAL stock lost 62% from its approximate pre-crisis peak. With the easing of restriction measures, the stock has more than doubled to near $50, but the newly imposed restriction measures in Europe and prevalence of the U.K. strain across the world are a concern for the travel industry. Thus, the stock is likely to observe headwinds in the near term.
The coronavirus pandemic has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for FedEx vs. Quest Diagnostics shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.
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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As passenger numbers improved at TSA checkpoints over the past two months, Delta Airlines (NYSE: DAL) revised its first-quarter outlook in mid-March. The company entered into the second round of payroll support in January 2021 due to a continued slump in air travel demand and further limited its operating losses. Stringent capital preservation measures, capex curtailments, and dividend suspension have supported Delta in maintaining a strong balance sheet with a bulk of long-term debt utilized to purchase short-term investments.
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Assisted by the government’s payroll support program, Delta reported $3.7 billion of operating cash outflow in 2020 – fairly lower than the $6 billion drop in the stock’s market capitalization since February 2020. While the airline industry continues to face significant headwinds, Trefis believes that Delta Airlines is likely to report better-than-expected revenue and earnings for Q1 2021 which will result in the company’s stock trending higher this week. Delta Airlines has $27 billion of debt and $14 billion of cash on the balance sheet In 2020, the company raised capital through multiple debt and equity offerings to support its huge daily cash burn figures.
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While the airline industry continues to face significant headwinds, Trefis believes that Delta Airlines is likely to report better-than-expected revenue and earnings for Q1 2021 which will result in the company’s stock trending higher this week. Delta Airlines has $27 billion of debt and $14 billion of cash on the balance sheet In 2020, the company raised capital through multiple debt and equity offerings to support its huge daily cash burn figures. DAL stock declined from levels of around $58 in February 2020 (pre-crisis peak) to levels of around $22 in March 2020 (as the markets bottomed out), implying DAL stock lost 62% from its approximate pre-crisis peak.
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While the airline industry continues to face significant headwinds, Trefis believes that Delta Airlines is likely to report better-than-expected revenue and earnings for Q1 2021 which will result in the company’s stock trending higher this week. Delta Airlines has $27 billion of debt and $14 billion of cash on the balance sheet In 2020, the company raised capital through multiple debt and equity offerings to support its huge daily cash burn figures. DAL stock declined from levels of around $58 in February 2020 (pre-crisis peak) to levels of around $22 in March 2020 (as the markets bottomed out), implying DAL stock lost 62% from its approximate pre-crisis peak.
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4556.0
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2021-04-16 00:00:00 UTC
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LIVE MARKETS-Housing starts party like it's 2006, UMich touches 1-year high
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https://www.nasdaq.com/articles/live-markets-housing-starts-party-like-its-2006-umich-touches-1-year-high-2021-04-16
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S&P, Dow modestly green; Nasdaq slightly red
Materials biggest gainer among S&P sectors; energy down most
Euro STOXX 600 up ~0.8%; on track for 7th-straight weekly gain
Dollar edges lower; gold gains; crude down
U.S. 10-Year Treasury yield ~1.58%
Welcome to the home for real-time coverage of equity markets brought to you by Reuters reporters.
HOUSING STARTS PARTY LIKE IT'S 2006, UMICH TOUCHES 1-YEAR HIGH (1100 EDT/1500 GMT)
A data duet released on Friday showed a housing market rushing to fill the discrepancy between spiking demand and record low supply, and the best consumer attitude in a year, with some caveats.
Groundbreaking on new U.S. homes USHST=ECI jumped 19.4% in March to 1.739 million units at a seasonally adjusted annualized rate (SAAR), according to the Commerce Department.
The number came in 126,000 units more than analysts expected, representing a robust bounce-back from February's 11.3% plunge, while marking the biggest monthly surge since June 2006, the height of the housing market bubble.
Building permits USBPE=ECI, a more forward-looking indicator, increased at a more docile 2.7% to 1.766 million units SAAR in a partial rebound from the 8.8% drop the previous month.
"We expect the pace of housing starts to slow modestly over the balance of 2021, but still look for starts to be up more than 6% for the year," writes Nancy Vanden Houten, lead economist at Oxford Economics. "While homebuilders face considerable pressures on the cost side, particularly from record-high lumber prices, they remain upbeat and report strong demand from prospective buyers."
The National Association of Homebuilders (NAHB) would agree. The NAHB's homebuilder sentiment indicator, released on Thursday, remains well above pre-pandemic levels, though down from recent highs.
"There is a growing backlog of starts based on permits already issued," Vanden Houten adds. "The backlog of starts in part reflects supply chain issues that are delaying the start of construction and should support the pace of starts (as) these issues are resolved."
Next, the good folks at the University of Michigan gave a sneak preview of consumer mood this month with the release of their advance consumer sentiment index USUMSP=ECI.
It showed the consumer, who contributes about 70% to U.S. GDP, has grown slightly more optimistic in April, the index inching up to a reading of 86.5, below the anticipated 89.6.
Despite its smaller-than-expected gain, the report marked the highest UMich level in a year.
The slight consensus miss was largely attributable to the closely watched expectations component, which stayed flat at 79.7 instead of advancing to 83.6 as projected.
Current conditions, by contrast, advanced to 97.2.
"This is opposite of the usual pattern over the past fifty years, when recoveries were paced by larger and earlier gains in expectations," notes Richard Curtin, chief economist at UMich's Surveys of Consumers.
"The strength in current economic conditions reflects much larger than usual stimulus payments during the past year," Curtin said, adding "factors that held back expectations included persistent concerns with vaccine safety as well as a surge in year-ahead inflation expectations."
The chart below shows headline and expectations components against the saving rate, seen by many as a barometer of consumer outlook:
Investor moods were also generally optimistic as they head into the weekend with the first week of first-quarter results in the books.
While the Nasdaq .IXIC is slightly red, the three major U.S. indexes are headed for weekly gains.
(Stephen Culp)
*****
THE TGIF REOPENING PLAY: STOCKS PUSHED TO RECORD HIGHS - AGAIN (0955 EDT/1355 GMT)
Wall Street opened mostly higher on Friday, as investors prepared to sail into the weekend under the power of upside surprises in earnings and economic data.
Economically sensitive cyclicals and transports .DJT are ahead of the pack. However, megacap market leaders, Tesla TSLA.O, Apple AAPL.O, and Amazon.com AMZN.O are quickly dragging the Nasdaq .IXIC into negative territory.
The S&P 500 .SPX and the Dow .DJI, which have reached several new closing highs this week, have set courses for their fourth consecutive weekly gains, and the Nasdaq is on track for its third.
Morgan Stanley MS.N wrapped up a week of big bank earnings which fired the starting pistol for first-quarter reporting season. The broker hummed a tune we've grown familiar with this week; better-than-expected quarterly profit largely due to benefits from reserve releases, record capital markets activity and a surge in trading volumes.
On the downside, they disclosed a near $1 billion loss from the Archegos fire sale. MS shares are modestly lower.
Next week, earning season puts the pedal to the metal, with Netflix NFLX.O, Johnson & Johnson JNJ.N, Procter & Gamble PG.N, American Airlines AAL.O, and Intel INTC.O among the heavy hitters due at bat.
Here's your opening snapshot:
(Stephen Culp)
*****
DON'T GET SHORT WITH ME! (0900 EDT/1300 GMT)
Short sellers have been reducing their exposure to U.S. stocks recently with the value of shares sold short decreasing by 3.2%, or $35.4 billion, to $1.08 trillion, according to the latest data from S3 Partners.
While the list of five stocks with the most short exposure is unchanged, Ihor Dusaniwsky pointed to "positional jockeying below" with the most dramatic changes showing up in ViacomCBS VIAC.O:
ViacomCBS, whose shares have fallen more than 60% from its record high since March 15, dropped from the No. 6 position to the No. 38 position in the most shorted league table, according to S3.
Also, Walt Disney Co DIS.N fell from a 17 ranking to 26 while Baidu Inc ADR BIDU.O dropped from 22nd place to 50th and Exxon Mobil Corp XOM.N fell from No. 25 to No. 51.
Meanwhile Analog Devices Inc ADI.O moved into 10th place from 15th while AstraZeneca AZN.O climbed from 20th to 15th while S&P Global Inc SPGI.K climbed to 21st from 31st.
Stocks that are a big focus among members of online forums on Reddit, and stocks caught up in the Archegos margin call liquidation, saw the biggest decrease in short exposure.
Although S3 notes that most of the declines are the result of mark-to-market stock price moves and not short covering which means that it is not due to shorts exiting their positions.
In this category S3 includes Viacom, GSX Techedu Inc GSX.N, Discovery Inc's DISCA.O, DISCK.O class A and C shares, iQIYI IQ.O, GameStop GME.N and Futu Holdings FUTU.O.
(Sinéad Carew)
*****
FOR FRIDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EDT/1300 GMT - CLICK HERE:
VIAC04162021https://tmsnrt.rs/3mTtXSD
Opening snapshothttps://tmsnrt.rs/3aguKry
Housing startshttps://tmsnrt.rs/3mX3L9t
Consumer sentimenthttps://tmsnrt.rs/32lDg4c
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Next week, earning season puts the pedal to the metal, with Netflix NFLX.O, Johnson & Johnson JNJ.N, Procter & Gamble PG.N, American Airlines AAL.O, and Intel INTC.O among the heavy hitters due at bat. "This is opposite of the usual pattern over the past fifty years, when recoveries were paced by larger and earlier gains in expectations," notes Richard Curtin, chief economist at UMich's Surveys of Consumers. The chart below shows headline and expectations components against the saving rate, seen by many as a barometer of consumer outlook: Investor moods were also generally optimistic as they head into the weekend with the first week of first-quarter results in the books.
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Next week, earning season puts the pedal to the metal, with Netflix NFLX.O, Johnson & Johnson JNJ.N, Procter & Gamble PG.N, American Airlines AAL.O, and Intel INTC.O among the heavy hitters due at bat. The NAHB's homebuilder sentiment indicator, released on Thursday, remains well above pre-pandemic levels, though down from recent highs. Next, the good folks at the University of Michigan gave a sneak preview of consumer mood this month with the release of their advance consumer sentiment index USUMSP=ECI.
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Next week, earning season puts the pedal to the metal, with Netflix NFLX.O, Johnson & Johnson JNJ.N, Procter & Gamble PG.N, American Airlines AAL.O, and Intel INTC.O among the heavy hitters due at bat. S&P, Dow modestly green; Nasdaq slightly red Materials biggest gainer among S&P sectors; energy down most Euro STOXX 600 up ~0.8%; on track for 7th-straight weekly gain Dollar edges lower; gold gains; crude down U.S. 10-Year Treasury yield ~1.58% Welcome to the home for real-time coverage of equity markets brought to you by Reuters reporters. "We expect the pace of housing starts to slow modestly over the balance of 2021, but still look for starts to be up more than 6% for the year," writes Nancy Vanden Houten, lead economist at Oxford Economics.
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Next week, earning season puts the pedal to the metal, with Netflix NFLX.O, Johnson & Johnson JNJ.N, Procter & Gamble PG.N, American Airlines AAL.O, and Intel INTC.O among the heavy hitters due at bat. S&P, Dow modestly green; Nasdaq slightly red Materials biggest gainer among S&P sectors; energy down most Euro STOXX 600 up ~0.8%; on track for 7th-straight weekly gain Dollar edges lower; gold gains; crude down U.S. 10-Year Treasury yield ~1.58% Welcome to the home for real-time coverage of equity markets brought to you by Reuters reporters. The NAHB's homebuilder sentiment indicator, released on Thursday, remains well above pre-pandemic levels, though down from recent highs.
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4557.0
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2021-04-15 00:00:00 UTC
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Anglo American enters deal to power Peru copper mine by renewables
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https://www.nasdaq.com/articles/anglo-american-enters-deal-to-power-peru-copper-mine-by-renewables-2021-04-15
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April 15 (Reuters) - Diversified miner Anglo American AAL.L said on Thursday it has signed a deal to provide 100% renewable energy for its Quellaveco copper mine in Peru, as it aims to power all of its Latin American operations through renewables.
The company, which has already secured commitments to be 100% renewable powered in Brazil and Chile, said the agreement has been signed with Engie Energía Perú.
The Quellaveco mine is expected to start in 2022.
(Reporting by Aniruddha Ghosh in Bengaluru; Editing by Shailesh Kuber)
((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 15 (Reuters) - Diversified miner Anglo American AAL.L said on Thursday it has signed a deal to provide 100% renewable energy for its Quellaveco copper mine in Peru, as it aims to power all of its Latin American operations through renewables. The company, which has already secured commitments to be 100% renewable powered in Brazil and Chile, said the agreement has been signed with Engie Energía Perú. (Reporting by Aniruddha Ghosh in Bengaluru; Editing by Shailesh Kuber) ((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 15 (Reuters) - Diversified miner Anglo American AAL.L said on Thursday it has signed a deal to provide 100% renewable energy for its Quellaveco copper mine in Peru, as it aims to power all of its Latin American operations through renewables. The company, which has already secured commitments to be 100% renewable powered in Brazil and Chile, said the agreement has been signed with Engie Energía Perú. The Quellaveco mine is expected to start in 2022.
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April 15 (Reuters) - Diversified miner Anglo American AAL.L said on Thursday it has signed a deal to provide 100% renewable energy for its Quellaveco copper mine in Peru, as it aims to power all of its Latin American operations through renewables. The company, which has already secured commitments to be 100% renewable powered in Brazil and Chile, said the agreement has been signed with Engie Energía Perú. (Reporting by Aniruddha Ghosh in Bengaluru; Editing by Shailesh Kuber) ((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 15 (Reuters) - Diversified miner Anglo American AAL.L said on Thursday it has signed a deal to provide 100% renewable energy for its Quellaveco copper mine in Peru, as it aims to power all of its Latin American operations through renewables. The company, which has already secured commitments to be 100% renewable powered in Brazil and Chile, said the agreement has been signed with Engie Energía Perú. The Quellaveco mine is expected to start in 2022.
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4558.0
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2021-04-15 00:00:00 UTC
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Earnings, metal rally spur record high for European stocks
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AAL
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https://www.nasdaq.com/articles/earnings-metal-rally-spur-record-high-for-european-stocks-2021-04-15
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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
April 15 (Reuters) - European stocks hit a record high on Thursday as a rally in commodity prices lifted miners, while some positive earnings reports offset worries about the pace of COVID-19 vaccination in the continent.
The pan-European STOXX 600 index .STOXX inched up 0.3% in its third session of gains, with miners and travel stocks leading the rise.
UK's commodity-heavy FTSE 100 .FTSE outperformed as a surge in metals prices lifted shares of companies such as Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L. MET/L
Swiss engineering company ABB ABBN.S rose 3.3% after raising its full-year sales outlook.
French advertising group Publicis PUBP.PA gained 2.6% as it returned to organic growth for the first time since before the COVID-19 pandemic.
Britain's food delivery company Deliveroo ROO.L slipped 1.5% even as its quarterly orders more than doubled in its first trading update since its underwhelming market debut last month.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)
((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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UK's commodity-heavy FTSE 100 .FTSE outperformed as a surge in metals prices lifted shares of companies such as Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window April 15 (Reuters) - European stocks hit a record high on Thursday as a rally in commodity prices lifted miners, while some positive earnings reports offset worries about the pace of COVID-19 vaccination in the continent. Britain's food delivery company Deliveroo ROO.L slipped 1.5% even as its quarterly orders more than doubled in its first trading update since its underwhelming market debut last month.
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UK's commodity-heavy FTSE 100 .FTSE outperformed as a surge in metals prices lifted shares of companies such as Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window April 15 (Reuters) - European stocks hit a record high on Thursday as a rally in commodity prices lifted miners, while some positive earnings reports offset worries about the pace of COVID-19 vaccination in the continent. The pan-European STOXX 600 index .STOXX inched up 0.3% in its third session of gains, with miners and travel stocks leading the rise.
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UK's commodity-heavy FTSE 100 .FTSE outperformed as a surge in metals prices lifted shares of companies such as Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window April 15 (Reuters) - European stocks hit a record high on Thursday as a rally in commodity prices lifted miners, while some positive earnings reports offset worries about the pace of COVID-19 vaccination in the continent. Britain's food delivery company Deliveroo ROO.L slipped 1.5% even as its quarterly orders more than doubled in its first trading update since its underwhelming market debut last month.
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UK's commodity-heavy FTSE 100 .FTSE outperformed as a surge in metals prices lifted shares of companies such as Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window April 15 (Reuters) - European stocks hit a record high on Thursday as a rally in commodity prices lifted miners, while some positive earnings reports offset worries about the pace of COVID-19 vaccination in the continent. The pan-European STOXX 600 index .STOXX inched up 0.3% in its third session of gains, with miners and travel stocks leading the rise.
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4559.0
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2021-04-15 00:00:00 UTC
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Earnings, metal rally spur record high for European stocks
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AAL
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https://www.nasdaq.com/articles/earnings-metal-rally-spur-record-high-for-european-stocks-2021-04-15-0
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By Sruthi Shankar
April 15 (Reuters) - European stocks hit a record high on Thursday as a rally in commodity prices lifted miners, while some positive earnings reports offset worries about the pace of COVID-19 vaccination.
The pan-European STOXX 600 index .STOXX was up 0.4% in its third session of gains, with miners .SXPP leading the rise. Travel & leisure stocks .SXTP hit a record high earlier in the session.
UK's commodity-heavy FTSE 100 .FTSE outperformed as a surge in metals prices lifted shares of companies such as Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L. MET/L
While European stocks have recovered all of its pandemic-induced losses, worries remain about the pace of recovery as the continent's choppy vaccine roll-out hits more trouble.
U.S. drugmaker Johnson & Johnson JNJ.N delayed its COVID-19 shot to Europe and Denmark said it would drop a similar vaccine from AstraZeneca AZN.L over the risk of blood clotting.
"The euro zone economy might lag behind others more than we had expected previously, because of the concerns around AstraZeneca," said Paul Jackson, global head of asset allocation research at Invesco.
"Notwithstanding that, once they are vaccinated, European countries have more to gain than most others."
Expectations of a strong earnings season and global economic rebound have also helped investors look past these concerns. Data on U.S. retail sales and weekly jobless claims will be keenly watched later in the day as investors gauge the pace of U.S. economic rebound.
Swiss engineering company ABB ABBN.S rose 3.5% after raising its full-year sales outlook.
French advertising group Publicis PUBP.PA gained 3.7% as it returned to organic growth for the first time since before the COVID-19 pandemic. Shares in British rival WPP WPP.L rose 0.4%.
German real estate companies Deutsche Wohnen DWNG.DE, LEG Immobilien LEGn.DE and TAG Immobilien TEGG.DE rose between 0.9% and 3.5% after the Constitutional Court ruled that a law putting a rent cap on apartments in Berlin is invalid.
Britain's food delivery company Deliveroo ROO.L slipped 0.4% even as its quarterly orders more than doubled in its first trading update since its underwhelming market debut last month.
Norwegian lender Sbanken SBANK.OL soared 30.3% after the country's largest bank DNB DNB.OL agreed to buy the smaller competitor in a deal worth 11.1 billion Norwegian crowns ($1.3 billion).
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)
((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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UK's commodity-heavy FTSE 100 .FTSE outperformed as a surge in metals prices lifted shares of companies such as Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L. By Sruthi Shankar April 15 (Reuters) - European stocks hit a record high on Thursday as a rally in commodity prices lifted miners, while some positive earnings reports offset worries about the pace of COVID-19 vaccination. MET/L While European stocks have recovered all of its pandemic-induced losses, worries remain about the pace of recovery as the continent's choppy vaccine roll-out hits more trouble.
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UK's commodity-heavy FTSE 100 .FTSE outperformed as a surge in metals prices lifted shares of companies such as Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L. By Sruthi Shankar April 15 (Reuters) - European stocks hit a record high on Thursday as a rally in commodity prices lifted miners, while some positive earnings reports offset worries about the pace of COVID-19 vaccination. Travel & leisure stocks .SXTP hit a record high earlier in the session.
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UK's commodity-heavy FTSE 100 .FTSE outperformed as a surge in metals prices lifted shares of companies such as Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L. By Sruthi Shankar April 15 (Reuters) - European stocks hit a record high on Thursday as a rally in commodity prices lifted miners, while some positive earnings reports offset worries about the pace of COVID-19 vaccination. MET/L While European stocks have recovered all of its pandemic-induced losses, worries remain about the pace of recovery as the continent's choppy vaccine roll-out hits more trouble.
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UK's commodity-heavy FTSE 100 .FTSE outperformed as a surge in metals prices lifted shares of companies such as Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L. By Sruthi Shankar April 15 (Reuters) - European stocks hit a record high on Thursday as a rally in commodity prices lifted miners, while some positive earnings reports offset worries about the pace of COVID-19 vaccination. Travel & leisure stocks .SXTP hit a record high earlier in the session.
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4560.0
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2021-04-14 00:00:00 UTC
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COLUMN-U.S. ethanol trends slightly improve ahead of summer travel season -Braun
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AAL
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https://www.nasdaq.com/articles/column-u.s.-ethanol-trends-slightly-improve-ahead-of-summer-travel-season-braun-2021-04-14
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By Karen Braun
FORT COLLINS, Colo., April 14 (Reuters) - Projected U.S. corn supplies are still waning toward multi-year lows despite dragging ethanol output, though recent production and demand figures along with an upbeat outlook for the summer driving season should instill some optimism over the corn-based biofuel.
In the four weeks ended April 9, U.S. ethanol output averaged 951,000 barrels per day, off the recent highs observed in November and December and 6.6% below the 2017-2019 average for the same period. That departure from normal is a post-pandemic best.
The latest production average reflects a slight downturn from the late March levels, somewhat consistent with seasonal trends for the time of year. (https://tmsnrt.rs/3sdfems)
Ethanol output first diverged from typical levels in late March 2020 due to the onset of the coronavirus pandemic, so year-on-year comparisons should no longer be made. The three years prior to 2020 provide a good baseline for “normal” since they contain one strong, one weaker and one average year of production.
With demand recently outpacing production, U.S. ethanol stocks have fallen to seven-year lows for the date. Stocks totaled 20.5 million barrels as of April 9, down nearly 16% in two months.
Trends in gasoline demand track well with ethanol output since almost all U.S. gasoline is blended with the biofuel. Last week, finished motor gasoline supplied to the market averaged 8.94 million barrels per day, the second-best week in the virus era. In the latest four weeks, gas demand was just 6% below the pre-virus average, the smallest post-pandemic margin.
Americans are itching to get out this summer after largely missing out on vacations in 2020. Travel spending by Americans last year plunged an estimated 42% and U.S. driving fell by 13% to its lowest level since 2001. U.S. passenger airline traffic dropped 60% to the lightest since 1984.
But the vaccination progress and an increase in travel bookings are already setting up a much busier summer. American Airlines AAL.O said on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021 based on a boost in reservations.
By Wednesday, more than 37% of Americans had received at least one dose of a coronavirus vaccine and 23% had been fully inoculated, according to the Centers for Disease Control and Prevention. The pace of vaccinations has been increasing, but 70% of the population could be vaccinated by early June at the current rate.
DEMAND BOOST
Last week, the U.S. Department of Agriculture increased its 2020-21 corn use for ethanol estimate by 25 million bushels to 4.975 billion bushels, up 2.4% from 2019-20’s seven-year low.
On average, that forecast is down 9% from the previous three uninterrupted marketing years starting with 2016-17. Since the start of the current marketing year on Sept. 1, weekly ethanol production has averaged about 9.5% below the same period in those three years.
That indicates that ethanol output does not have to make a huge recovery going forward to meet expectations. In fact, if output through August maintained its recent 6-7% deviation from the previous years, corn use for ethanol could possibly rise by 25 million to 50 million bushels over USDA’s latest 2020-21 peg.
Good prospects for summer travel increase the odds for ethanol output and demand to inch even closer to normal levels into mid-year, though next year’s volumes are subject to greater debate as the economy continues to recover from the pandemic.
USDA in February tentatively slated 2021-22 corn used for ethanol at 5.2 billion bushels, down about 5% from pre-virus levels, though the agency will issue a fresh assessment next month. Any increase in this number will amplify pressure to new-crop corn supplies, which could be even smaller than the seven-year low predicted for 2020-21.
Graphic- Four-week average U.S. ethanol outputhttps://tmsnrt.rs/3sdfems
(Editing by Matthew Lewis)
((karen.braun@thomsonreuters.com; Reuters Messaging: karen.braun.thomsonreuters.net@reuters.com; Twitter: @kannbwx))
The views and 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 on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021 based on a boost in reservations. By Karen Braun FORT COLLINS, Colo., April 14 (Reuters) - Projected U.S. corn supplies are still waning toward multi-year lows despite dragging ethanol output, though recent production and demand figures along with an upbeat outlook for the summer driving season should instill some optimism over the corn-based biofuel. (https://tmsnrt.rs/3sdfems) Ethanol output first diverged from typical levels in late March 2020 due to the onset of the coronavirus pandemic, so year-on-year comparisons should no longer be made.
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American Airlines AAL.O said on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021 based on a boost in reservations. In the four weeks ended April 9, U.S. ethanol output averaged 951,000 barrels per day, off the recent highs observed in November and December and 6.6% below the 2017-2019 average for the same period. Last week, the U.S. Department of Agriculture increased its 2020-21 corn use for ethanol estimate by 25 million bushels to 4.975 billion bushels, up 2.4% from 2019-20’s seven-year low.
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American Airlines AAL.O said on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021 based on a boost in reservations. By Karen Braun FORT COLLINS, Colo., April 14 (Reuters) - Projected U.S. corn supplies are still waning toward multi-year lows despite dragging ethanol output, though recent production and demand figures along with an upbeat outlook for the summer driving season should instill some optimism over the corn-based biofuel. Since the start of the current marketing year on Sept. 1, weekly ethanol production has averaged about 9.5% below the same period in those three years.
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American Airlines AAL.O said on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021 based on a boost in reservations. Last week, finished motor gasoline supplied to the market averaged 8.94 million barrels per day, the second-best week in the virus era. Since the start of the current marketing year on Sept. 1, weekly ethanol production has averaged about 9.5% below the same period in those three years.
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4561.0
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2021-04-14 00:00:00 UTC
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Justice Dept. Intensifies Probe Into American Airlines-JetBlue Deal: WSJ
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AAL
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https://www.nasdaq.com/articles/justice-dept.-intensifies-probe-into-american-airlines-jetblue-deal%3A-wsj-2021-04-14
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nan
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(RTTNews) - The U.S. Department of Justice has intensified an antitrust probe into American Airlines' (AAL) partnership with JetBlue Airways on apprehensions that the partnership could result in high fares at important traffic points, Wall Street Journal reported on Wednesday.
The first phase of the deal was inaugurated by both airlines in February even while the Justice Department and attorneys general of New York, Massachusetts and other places were studying the partnership.
The U.S Department of Justice is looking into codeshares on nearly 80 routes from New York and Boston. The department initiated the probe as it felt that such a deal will kill competition in the already busy airports at New York and Boston. The Justice Department report said that the investigation is ongoing and no final conclusions have been arrived at. American Airlines and JetBlue had announced their partnership in July 2020.
The views and 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) - The U.S. Department of Justice has intensified an antitrust probe into American Airlines' (AAL) partnership with JetBlue Airways on apprehensions that the partnership could result in high fares at important traffic points, Wall Street Journal reported on Wednesday. The first phase of the deal was inaugurated by both airlines in February even while the Justice Department and attorneys general of New York, Massachusetts and other places were studying the partnership. The department initiated the probe as it felt that such a deal will kill competition in the already busy airports at New York and Boston.
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(RTTNews) - The U.S. Department of Justice has intensified an antitrust probe into American Airlines' (AAL) partnership with JetBlue Airways on apprehensions that the partnership could result in high fares at important traffic points, Wall Street Journal reported on Wednesday. The first phase of the deal was inaugurated by both airlines in February even while the Justice Department and attorneys general of New York, Massachusetts and other places were studying the partnership. The Justice Department report said that the investigation is ongoing and no final conclusions have been arrived at.
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(RTTNews) - The U.S. Department of Justice has intensified an antitrust probe into American Airlines' (AAL) partnership with JetBlue Airways on apprehensions that the partnership could result in high fares at important traffic points, Wall Street Journal reported on Wednesday. The first phase of the deal was inaugurated by both airlines in February even while the Justice Department and attorneys general of New York, Massachusetts and other places were studying the partnership. The views and 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) - The U.S. Department of Justice has intensified an antitrust probe into American Airlines' (AAL) partnership with JetBlue Airways on apprehensions that the partnership could result in high fares at important traffic points, Wall Street Journal reported on Wednesday. The first phase of the deal was inaugurated by both airlines in February even while the Justice Department and attorneys general of New York, Massachusetts and other places were studying the partnership. The U.S Department of Justice is looking into codeshares on nearly 80 routes from New York and Boston.
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4562.0
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2021-04-14 00:00:00 UTC
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Department of Justice Reportedly Probing American/JetBlue Alliance
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AAL
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https://www.nasdaq.com/articles/department-of-justice-reportedly-probing-american-jetblue-alliance-2021-04-14
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The U.S. Department of Justice (DOJ) is reportedly probing an alliance between American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU), investigating whether coordination between the two airlines would lead to anticompetitive behavior and higher fares at certain airports.
In January American and JetBlue won Department of Transportation approval for a new alliance covering New York and Boston. The airlines argued that by cooperating and swapping landing rights at New York's many airports, they could offer better options to fliers in the region.
Image source: JetBlue.
But the DOJ is worried that the alliance could diminish competition in the Northeast, according to a Wall Street Journal report. The report notes that the DOJ investigation is continuing with no final conclusions reached and that any decision could be impacted by input from Transportation.
Spirit Airlines, a competitor to both American and JetBlue, has requested a full and formal investigation of the agreement, according to the report, a move that could allow Department of Transportation officials some leeway to reconsider its views.
American and JetBlue have argued the agreement is pro-competition because it allows them to better compete with Delta Air Lines and United Airlines Holdings, which both have major presences at large New York airports. Prior to the agreement and the pandemic, American had scaled back operations in New York and Boston due in part to the flood of competition in the region.
American and JetBlue agreed to a number of conditions to win approval for their partnership, including putting restrictions on how it operates, and giving up some landing slots in both New York and Washington.
Antitrust regulators have expressed concern about consolidation in the airline industry. American is the product of two recent deals: In 2013 it merged with US Airways, which had previously combined with America West Airlines. Meanwhile, JetBlue in 2016 made an unsuccessful bid at Virgin America, which was eventually acquired by Alaska Air Group.
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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 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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The U.S. Department of Justice (DOJ) is reportedly probing an alliance between American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU), investigating whether coordination between the two airlines would lead to anticompetitive behavior and higher fares at certain airports. Spirit Airlines, a competitor to both American and JetBlue, has requested a full and formal investigation of the agreement, according to the report, a move that could allow Department of Transportation officials some leeway to reconsider its views. American and JetBlue have argued the agreement is pro-competition because it allows them to better compete with Delta Air Lines and United Airlines Holdings, which both have major presences at large New York airports.
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The U.S. Department of Justice (DOJ) is reportedly probing an alliance between American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU), investigating whether coordination between the two airlines would lead to anticompetitive behavior and higher fares at certain airports. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and JetBlue Airways.
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The U.S. Department of Justice (DOJ) is reportedly probing an alliance between American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU), investigating whether coordination between the two airlines would lead to anticompetitive behavior and higher fares at certain airports. Spirit Airlines, a competitor to both American and JetBlue, has requested a full and formal investigation of the agreement, according to the report, a move that could allow Department of Transportation officials some leeway to reconsider its views. American and JetBlue have argued the agreement is pro-competition because it allows them to better compete with Delta Air Lines and United Airlines Holdings, which both have major presences at large New York airports.
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The U.S. Department of Justice (DOJ) is reportedly probing an alliance between American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU), investigating whether coordination between the two airlines would lead to anticompetitive behavior and higher fares at certain airports. In January American and JetBlue won Department of Transportation approval for a new alliance covering New York and Boston. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and JetBlue Airways.
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4563.0
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2021-04-14 00:00:00 UTC
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U.S. Justice Department steps up probe of American-JetBlue partnership - WSJ
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AAL
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https://www.nasdaq.com/articles/u.s.-justice-department-steps-up-probe-of-american-jetblue-partnership-wsj-2021-04-14
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Adds details from the WSJ report
April 14 (Reuters) - The U.S. Justice Department has stepped up an antitrust probe of American Airlines' AAL.O partnership with JetBlue Airways JBLU.O on concerns the deal can lead to inflated fares at key traffic hubs, the Wall Street Journal reported on Wednesday.
American and JetBlue launched the first phase of their partnership in February, even as the Justice Department and attorneys general in New York, Massachusetts and other jurisdictions were reviewing the proposed tie-up with codeshares on nearly 80 routes from New York and Boston.
The department is concerned that an American-JetBlue deal could reduce competition at congested Northeast airports in New York and Boston, the WSJ reported, citing people familiar with the matter.
Those airports are hubs for U.S. and international travel.
The investigation is continuing and no final conclusions have been reached, according to the report.
The Justice Department, American Airlines and JetBlue were not immediately available for comment.
American and JetBlue announced their partnership in July 2020.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D'Silva)
((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 from the WSJ report April 14 (Reuters) - The U.S. Justice Department has stepped up an antitrust probe of American Airlines' AAL.O partnership with JetBlue Airways JBLU.O on concerns the deal can lead to inflated fares at key traffic hubs, the Wall Street Journal reported on Wednesday. American and JetBlue launched the first phase of their partnership in February, even as the Justice Department and attorneys general in New York, Massachusetts and other jurisdictions were reviewing the proposed tie-up with codeshares on nearly 80 routes from New York and Boston. The department is concerned that an American-JetBlue deal could reduce competition at congested Northeast airports in New York and Boston, the WSJ reported, citing people familiar with the matter.
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Adds details from the WSJ report April 14 (Reuters) - The U.S. Justice Department has stepped up an antitrust probe of American Airlines' AAL.O partnership with JetBlue Airways JBLU.O on concerns the deal can lead to inflated fares at key traffic hubs, the Wall Street Journal reported on Wednesday. The department is concerned that an American-JetBlue deal could reduce competition at congested Northeast airports in New York and Boston, the WSJ reported, citing people familiar with the matter. The Justice Department, American Airlines and JetBlue were not immediately available for comment.
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Adds details from the WSJ report April 14 (Reuters) - The U.S. Justice Department has stepped up an antitrust probe of American Airlines' AAL.O partnership with JetBlue Airways JBLU.O on concerns the deal can lead to inflated fares at key traffic hubs, the Wall Street Journal reported on Wednesday. American and JetBlue launched the first phase of their partnership in February, even as the Justice Department and attorneys general in New York, Massachusetts and other jurisdictions were reviewing the proposed tie-up with codeshares on nearly 80 routes from New York and Boston. The department is concerned that an American-JetBlue deal could reduce competition at congested Northeast airports in New York and Boston, the WSJ reported, citing people familiar with the matter.
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Adds details from the WSJ report April 14 (Reuters) - The U.S. Justice Department has stepped up an antitrust probe of American Airlines' AAL.O partnership with JetBlue Airways JBLU.O on concerns the deal can lead to inflated fares at key traffic hubs, the Wall Street Journal reported on Wednesday. The department is concerned that an American-JetBlue deal could reduce competition at congested Northeast airports in New York and Boston, the WSJ reported, citing people familiar with the matter. Those airports are hubs for U.S. and international travel.
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4564.0
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2021-04-14 00:00:00 UTC
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American Airlines sees bookings rebounding in summer
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AAL
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https://www.nasdaq.com/articles/american-airlines-sees-bookings-rebounding-in-summer-2021-04-14
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April 14 (Reuters) - American Airlines AAL.O said on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021, compared with the same period in 2019, due to a strong rebound in bookings.
The U.S. airline also said it expects to utilize 80% of its international seat capacity this summer, compared with 2019 levels. (https://bit.ly/3wPJgjP)
(Reporting by Ankit Ajmera in Bengaluru; Editing by Amy Caren Daniel)
((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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April 14 (Reuters) - American Airlines AAL.O said on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021, compared with the same period in 2019, due to a strong rebound in bookings. The U.S. airline also said it expects to utilize 80% of its international seat capacity this summer, compared with 2019 levels. (https://bit.ly/3wPJgjP) (Reporting by Ankit Ajmera in Bengaluru; Editing by Amy Caren Daniel) ((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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April 14 (Reuters) - American Airlines AAL.O said on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021, compared with the same period in 2019, due to a strong rebound in bookings. The U.S. airline also said it expects to utilize 80% of its international seat capacity this summer, compared with 2019 levels. (https://bit.ly/3wPJgjP) (Reporting by Ankit Ajmera in Bengaluru; Editing by Amy Caren Daniel) ((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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April 14 (Reuters) - American Airlines AAL.O said on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021, compared with the same period in 2019, due to a strong rebound in bookings. The U.S. airline also said it expects to utilize 80% of its international seat capacity this summer, compared with 2019 levels. (https://bit.ly/3wPJgjP) (Reporting by Ankit Ajmera in Bengaluru; Editing by Amy Caren Daniel) ((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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April 14 (Reuters) - American Airlines AAL.O said on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021, compared with the same period in 2019, due to a strong rebound in bookings. The U.S. airline also said it expects to utilize 80% of its international seat capacity this summer, compared with 2019 levels. (https://bit.ly/3wPJgjP) (Reporting by Ankit Ajmera in Bengaluru; Editing by Amy Caren Daniel) ((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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4565.0
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2021-04-14 00:00:00 UTC
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3 of Warren Buffett's Biggest Billion-Dollar Blunders
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https://www.nasdaq.com/articles/3-of-warren-buffetts-biggest-billion-dollar-blunders-2021-04-14
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett is widely considered to be one of the greatest investors of our time. Since taking the helm at conglomerate Berkshire Hathaway, the Oracle of Omaha, as he's affably known, has led his company's stock to an annual average return of 20%. That might not sound all that impressive, but when done on an annual basis since 1964, it equates to a better than 2,800,000% return on investment.
Perhaps the craziest thing about Buffett's investing style is that he's not doing anything John and Jane Q. Investor couldn't themselves do...short of buying another company outright. He's made a living by focusing his research on a handful of sectors, purchasing businesses that he believes have sustainable competitive advantages, and, most importantly, holding those stakes for very long periods of time.
But one thing the Oracle of Omaha is not is perfect. Like all investors, Buffett has made his fair share of mistakes. In his case, some of these mistakes cost Berkshire Hathaway billions of dollars. Here are three of Warren Buffett's biggest billion-dollar blunders.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Selling Walt Disney not once but twice: A more than $31 billion error
The unquestioned mother of all goofs for Buffett was his premature selling of theme park operator and content-creation machine Walt Disney (NYSE: DIS).
Back in 1966, Buffett and a consortium of investors decided to put $4 million to work in Disney, giving the consortium a cool 5% stake in the company. At the time, Walt Disney was in the midst of adding attractions to its Disneyland theme park in Southern California, and the company had a handful of successful films. But with a market valuation of $80 million, it wasn't exactly a powerhouse.
The following year, in 1967, Buffett and his team sold their stake for $6 million, ultimately netting a 50% return on investment. However, with Walt Disney stock ending last week with a market cap of $341 billion, selling for a 50% gain looks to have effectively cost Buffett and his team $17 billion in gains. Also, don't forget the more than $1 billion dividend income that would have been collected on this stake, so it's really more like an $18 billion error.
Now here's the "D'oh!" moment: Buffett got a second chance to own Disney stock and again sold relatively quickly. In 1995, when Disney announced that it would acquire Capital Cities/ABC in a cash-and-stock deal, Berkshire Hathaway received Disney stock (it was a Capital Cities/ABC shareholder). In 1996, Buffett's company reported owning 24,614,214 shares, which were split 3-for-1 in 1998 and sold in their entirety between 1999 and 2000. Buffett's cost basis on these shares was $577 million, but they'd be worth almost $13.9 billion today.
All told, between the 1967 divestment, the 1999-2000 share sale, and the forgone dividend income, Buffett has given up a not-so-Goofy $31 billion-plus in potential gains from Disney.
Image source: Getty Images.
Selling airline stocks during the height of the pandemic: About a $4.6 billion boo-boo
Even though I wholeheartedly agreed with the move at the time, the Oracle of Omaha's handling of his airline stocks during the coronavirus pandemic was less than stellar.
As of the end of the first quarter of 2020, Berkshire Hathaway owned sizable stakes in four major airlines:
Delta Air Lines (NYSE: DAL): 71,886,963 shares
Southwest Airlines (NYSE: LUV): 53,642,713 shares
United Airlines (NASDAQ: UAL): 22,157,608 shares
American Airlines (NASDAQ: AAL): 41,909,000 shares
But early in the second quarter of 2020, Buffett and his team sold all four stakes in their entirety. Although we don't precisely know what Berkshire Hathaway sold these stakes for, we can estimate what sort of unrealized gains or recouped value has been lost. Taking into account the holdings listed above, Buffett has forgone the following gains over the trailing year (through April 11, 2021):
Delta Air Lines: $1.87 billion
Southwest Airlines: $1.56 billion
United Airlines: $654 million
American Airlines: $502 million
By my estimation, dumping airline stocks at very nearly the trough of the pandemic has cost Berkshire Hathaway in the neighborhood of $4.6 billion.
For what it's worth, I believe Buffett is right to be leery of the airlines. For instance, American Airlines took on a boatload of debt and will struggle with growth initiatives due to servicing its $41 billion in total debt. Likewise, any airlines that took coronavirus relief capital won't be paying dividends or repurchasing their common stock any longer.
Image source: Home Depot.
Selling Home Depot & Lowe's shortly after the Great Recession: A $2.3 billion mistake
Lastly, Warren Buffett might well be kicking himself for selling his company's stakes in do-it-yourself (DIY) home-improvement retailers Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) following the Great Recession.
According to company filings with the Securities and Exchange Commission, Berkshire Hathaway had previously owned as many as 3.7 million shares of Home Depot. Approximately a quarter of this stake was sold in mid-2009, with the remainder jettisoned in the third quarter of 2010. My ballpark estimation is that these sales raised around $110 million in capital.
However, Home Depot's share price has skyrocketed about tenfold from where Berkshire Hathaway dumped its stake. A 3.7-million-share stake in Home Depot today would be worth almost $1.2 billion.
It's a similar story with Lowe's. In the fourth quarter of 2010, just one quarter after Home Depot was kicked to the curb, Buffett and his team sold Berkshire's entire 6.5-million-share stake in Lowe's. At the time, selling Lowe's stock raised around $160 million in capital.
But if the Oracle of Omaha had held his company's position in Lowe's, those 6.5 million shares would have a market value of close to $1.3 billion today.
Tack on a little more than $200 million in forgone dividends for both companies on a combined basis, and Buffett's hasty sales on these do-it-yourself giants have cost approximately $2.3 billion in missed gains.
If there's anything we've learned about these DIY giants, it's that they can benefit in almost any environment. A booming economy means plenty of demand from the contractor side of the business. Meanwhile, a weakened economy tends to do wonders for home renovations and projects. This is something the Oracle of Omaha appears to have overlooked, and it's cost him dearly.
10 stocks we like better than Home Depot
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 Home Depot 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 February 24, 2021
Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Home Depot, and Walt Disney. The Motley Fool recommends Delta Air Lines, Lowes, and Southwest Airlines and recommends the following options: long January 2023 $200.0 calls on Berkshire Hathaway (B shares), short January 2023 $200.0 puts on Berkshire Hathaway (B shares), and short June 2021 $240.0 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As of the end of the first quarter of 2020, Berkshire Hathaway owned sizable stakes in four major airlines: Delta Air Lines (NYSE: DAL): 71,886,963 shares Southwest Airlines (NYSE: LUV): 53,642,713 shares United Airlines (NASDAQ: UAL): 22,157,608 shares American Airlines (NASDAQ: AAL): 41,909,000 shares But early in the second quarter of 2020, Buffett and his team sold all four stakes in their entirety. He's made a living by focusing his research on a handful of sectors, purchasing businesses that he believes have sustainable competitive advantages, and, most importantly, holding those stakes for very long periods of time. At the time, Walt Disney was in the midst of adding attractions to its Disneyland theme park in Southern California, and the company had a handful of successful films.
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As of the end of the first quarter of 2020, Berkshire Hathaway owned sizable stakes in four major airlines: Delta Air Lines (NYSE: DAL): 71,886,963 shares Southwest Airlines (NYSE: LUV): 53,642,713 shares United Airlines (NASDAQ: UAL): 22,157,608 shares American Airlines (NASDAQ: AAL): 41,909,000 shares But early in the second quarter of 2020, Buffett and his team sold all four stakes in their entirety. Selling Home Depot & Lowe's shortly after the Great Recession: A $2.3 billion mistake Lastly, Warren Buffett might well be kicking himself for selling his company's stakes in do-it-yourself (DIY) home-improvement retailers Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) following the Great Recession. The Motley Fool recommends Delta Air Lines, Lowes, and Southwest Airlines and recommends the following options: long January 2023 $200.0 calls on Berkshire Hathaway (B shares), short January 2023 $200.0 puts on Berkshire Hathaway (B shares), and short June 2021 $240.0 calls on Berkshire Hathaway (B shares).
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As of the end of the first quarter of 2020, Berkshire Hathaway owned sizable stakes in four major airlines: Delta Air Lines (NYSE: DAL): 71,886,963 shares Southwest Airlines (NYSE: LUV): 53,642,713 shares United Airlines (NASDAQ: UAL): 22,157,608 shares American Airlines (NASDAQ: AAL): 41,909,000 shares But early in the second quarter of 2020, Buffett and his team sold all four stakes in their entirety. Taking into account the holdings listed above, Buffett has forgone the following gains over the trailing year (through April 11, 2021): Delta Air Lines: $1.87 billion Southwest Airlines: $1.56 billion United Airlines: $654 million American Airlines: $502 million By my estimation, dumping airline stocks at very nearly the trough of the pandemic has cost Berkshire Hathaway in the neighborhood of $4.6 billion. The Motley Fool recommends Delta Air Lines, Lowes, and Southwest Airlines and recommends the following options: long January 2023 $200.0 calls on Berkshire Hathaway (B shares), short January 2023 $200.0 puts on Berkshire Hathaway (B shares), and short June 2021 $240.0 calls on Berkshire Hathaway (B shares).
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As of the end of the first quarter of 2020, Berkshire Hathaway owned sizable stakes in four major airlines: Delta Air Lines (NYSE: DAL): 71,886,963 shares Southwest Airlines (NYSE: LUV): 53,642,713 shares United Airlines (NASDAQ: UAL): 22,157,608 shares American Airlines (NASDAQ: AAL): 41,909,000 shares But early in the second quarter of 2020, Buffett and his team sold all four stakes in their entirety. Taking into account the holdings listed above, Buffett has forgone the following gains over the trailing year (through April 11, 2021): Delta Air Lines: $1.87 billion Southwest Airlines: $1.56 billion United Airlines: $654 million American Airlines: $502 million By my estimation, dumping airline stocks at very nearly the trough of the pandemic has cost Berkshire Hathaway in the neighborhood of $4.6 billion. But if the Oracle of Omaha had held his company's position in Lowe's, those 6.5 million shares would have a market value of close to $1.3 billion today.
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2021-04-13 00:00:00 UTC
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4 Top Stock Trades for Wednesday: AAL, WFC, RIOT, TSLA
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https://www.nasdaq.com/articles/4-top-stock-trades-for-wednesday%3A-aal-wfc-riot-tsla-2021-04-13
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Trading volume may be anemic, but that hasn’t stopped investors from pushing the indices to more new highs ahead of earnings. That said, let’s look at a few top stock trades as we approach mid-week.
Top Stock Trades for Tomorrow No. 1: American Airlines (AAL)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Declining in its sixth-straight session and in eighth of the last nine days, American Airlines (NASDAQ:AAL) is attempting to locate a short-term bottom.
Shares are bouncing nicely from the 61.8% retracement and the 10-week moving average. A decline below Tuesday’s low may put the 50-day moving average in play too.
7 Restaurant Stocks Worth a Visit
Below that, though, and we could see a sub-$20 move, landing AAL stock around $18.50. That’s a prior breakout spot and about where the 100-day and 21-week moving averages start to come into play.
Top Stock Trades for Tomorrow No. 2: Wells Fargo (WFC)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Wells Fargo (NYSE:WFC) will kick off the earnings party on Wednesday before the open, along with a few others. After years of lagging its peers, WFC stock is finally trading pretty well on the long side.
The question now is, can Wells Fargo keep it up?
Correcting slightly ahead of the print, we need some clarity after the event. Specifically, I either want a deeper dip down to the $37 to $38 area or a push higher above the March higher.
If it’s the former, this area was recent support last month. It’s also where the 10-week and 50-day moving averages come into play. If that area fails, the $33 area could be next.
On the upside, however, the 61.8% retracement was resistance last month. A move above the March high at $41.54 could open the door to the $45 to $47 area. Near the latter is where the 78.6% retracement comes into play.
Top Stock Trades for Tomorrow No. 3: Riot Blockchain (RIOT)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Riot Blockchain (NASDAQ:RIOT) is moving out of its wedge pattern as Bitcoin (CCC:BTC-USD) hits new all-time highs.
For the most part, the 10-week and 50-day moving averages continue to hold as support, doing just enough to guide Riot stock higher until it broke out over downtrend resistance.
From here, let’s see if Riot stock can climb to the 61.8% retracement and the $62 to $65 area. If it can clear the March high near $68, then a run toward the high at $79.50 is possible.
7 Reddit Penny Stocks That Could Pop in April
On a pullback, though, I don’t want to see Riot stock break below $50. That would put it below its moving average support and back below downtrend resistance.
Top Trades for Tomorrow No. 4: Tesla (TSLA)
Click to Enlarge
Source: Chart courtesy of TrendSpider
At least for now, Tesla (NASDAQ:TSLA) has its groove back. Shares are bursting over recent resistance near $700 and all of its key moving averages.
From here I want to see if it can fill the February gap near $780. Above that opens the door to $800-plus.
On the downside, however, it’s quite simple: We need to see prior resistance hold as support should the stock pull back. There’s a plethora of moving averages in that area too, which we want to see hold as support. Below opens up more possible downside.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Wednesday: AAL, WFC, RIOT, TSLA 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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Click to Enlarge Source: Chart courtesy of TrendSpider Declining in its sixth-straight session and in eighth of the last nine days, American Airlines (NASDAQ:AAL) is attempting to locate a short-term bottom. 1: American Airlines (AAL) 7 Restaurant Stocks Worth a Visit Below that, though, and we could see a sub-$20 move, landing AAL stock around $18.50.
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The post 4 Top Stock Trades for Wednesday: AAL, WFC, RIOT, TSLA appeared first on InvestorPlace. 1: American Airlines (AAL) Click to Enlarge Source: Chart courtesy of TrendSpider Declining in its sixth-straight session and in eighth of the last nine days, American Airlines (NASDAQ:AAL) is attempting to locate a short-term bottom.
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1: American Airlines (AAL) Click to Enlarge Source: Chart courtesy of TrendSpider Declining in its sixth-straight session and in eighth of the last nine days, American Airlines (NASDAQ:AAL) is attempting to locate a short-term bottom. 7 Restaurant Stocks Worth a Visit Below that, though, and we could see a sub-$20 move, landing AAL stock around $18.50.
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The post 4 Top Stock Trades for Wednesday: AAL, WFC, RIOT, TSLA appeared first on InvestorPlace. 1: American Airlines (AAL) Click to Enlarge Source: Chart courtesy of TrendSpider Declining in its sixth-straight session and in eighth of the last nine days, American Airlines (NASDAQ:AAL) is attempting to locate a short-term bottom.
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2021-04-13 00:00:00 UTC
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American Defers 37 Boeing Jets as Post-Pandemic Recovery Continues
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https://www.nasdaq.com/articles/american-defers-37-boeing-jets-as-post-pandemic-recovery-continues-2021-04-13
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American Airlines Group (NASDAQ: AAL) has worked out a revised delivery schedule with Boeing (NYSE: BA), deferring 37 jets as it seeks to ride out a drop in travel demand due to the pandemic.
American in a regulatory filing said that eighteen 737 MAX jets originally expected to be delivered this year and in 2022 will instead arrive in 2023 and 2024. It is also pushing back delivery on a number of 787 Dreamliners. Fourteen 787-8 airplanes expected to be added to the fleet this year will instead arrive by the end of the first quarter of 2022, and an additional five aircraft will be converted to a different version of the 787 for delivery in 2023.
Image source: American Airlines.
American and other airlines are rethinking their fleet needs after a miserable 2020 in which the industry saw travel demand dry up due to COVID-19. Travel has slowly come back in recent months as the vaccine rollout has progressed, but American in the filing said it still expects to report a substantial loss in the recently completed first quarter.
International travel, which is the primary use of the 787 Dreamliner, is expected to take significantly longer to recover than domestic. And American and other airlines loaded up with additional debt last year to survive the crisis, making carriers ill prepared to take on a large number of new jets right now.
The news comes on the same day that Boeing said it delivered nineteen 737 MAX planes in March, including eleven to U.S. carriers. Boeing also met its goal to resume deliveries of the Dreamliner before quarter's edge, delivering two of the planes after a temporary suspension to work through some potential issues with its carbon fiber frame.
Boeing also reported 29 net commercial orders for the month, all for 737 MAX planes. Airbus (OTC: EADSY), by comparison, delivered 60 planes in March but only had 20 net orders for the month.
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 February 24, 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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American Airlines Group (NASDAQ: AAL) has worked out a revised delivery schedule with Boeing (NYSE: BA), deferring 37 jets as it seeks to ride out a drop in travel demand due to the pandemic. And American and other airlines loaded up with additional debt last year to survive the crisis, making carriers ill prepared to take on a large number of new jets right now. Boeing also met its goal to resume deliveries of the Dreamliner before quarter's edge, delivering two of the planes after a temporary suspension to work through some potential issues with its carbon fiber frame.
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American Airlines Group (NASDAQ: AAL) has worked out a revised delivery schedule with Boeing (NYSE: BA), deferring 37 jets as it seeks to ride out a drop in travel demand due to the pandemic. Boeing also reported 29 net commercial orders for the month, all for 737 MAX planes. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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American Airlines Group (NASDAQ: AAL) has worked out a revised delivery schedule with Boeing (NYSE: BA), deferring 37 jets as it seeks to ride out a drop in travel demand due to the pandemic. 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 February 24, 2021 Lou Whiteman has no position in any of the stocks mentioned.
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American Airlines Group (NASDAQ: AAL) has worked out a revised delivery schedule with Boeing (NYSE: BA), deferring 37 jets as it seeks to ride out a drop in travel demand due to the pandemic. American in a regulatory filing said that eighteen 737 MAX jets originally expected to be delivered this year and in 2022 will instead arrive in 2023 and 2024. It is also pushing back delivery on a number of 787 Dreamliners.
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2021-04-13 00:00:00 UTC
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Why Airline Shares Are Down Today
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https://www.nasdaq.com/articles/why-airline-shares-are-down-today-2021-04-13
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What happened
Airline stocks were in the red on Tuesday after some disappointing news about the Johnson & Johnson COVID-19 vaccine. The update shouldn't be enough to stall the much-anticipated reopening this summer, but it was enough to quell investor enthusiasm for at least one day.
Shares of Delta Air Lines (NYSE: DAL) and Spirit Airlines (NYSE: SAVE) traded down as much as 5% apiece. American Airlines Group (NASDAQ: AAL), which had some company-specific news, was down about the same amount.
So what
Airline investors endured a miserable 2020 due to the pandemic, but the news has been much more upbeat so far in 2021. Fueled by hope that as a critical mass of Americans get vaccinated there will be pent-up demand for air travel, the stocks have soared higher in 2021.
Image source: Getty Images.
But on Tuesday the U.S. government recommended pausing deployment of one of the vaccines, the one made by Johnson & Johnson, due to concerns about potential blood clots. The pause is expected to be short-lived, and many jurisdictions have ample amounts of other vaccines to fill the void, but the news if nothing else served as a reminder that we still face challenges in our fight to beat the pandemic.
The J&J news alone should not be enough to stop an uptick in demand this summer. But it appears to have been enough to move some investors to the sidelines.
Now what
This is a tricky moment for airline investors. It seems unlikely the pandemic will be able to do any additional long-term damage to the companies, but the pace of a recovery is far from clear. And the stocks have arguably come back faster than business conditions can justify.
I see nothing in the news that would suggest a need to sell airline shares, but at these valuations, and coupled with the fact it could take years for business and international travel to fully recover, I'm not enthusiastic about buying in right now either. For long-term holders, the best advice is to fasten your seatbelt and try to ride out the turbulence.
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 February 24, 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 Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL), which had some company-specific news, was down about the same amount. Fueled by hope that as a critical mass of Americans get vaccinated there will be pent-up demand for air travel, the stocks have soared higher in 2021. The pause is expected to be short-lived, and many jurisdictions have ample amounts of other vaccines to fill the void, but the news if nothing else served as a reminder that we still face challenges in our fight to beat the pandemic.
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American Airlines Group (NASDAQ: AAL), which had some company-specific news, was down about the same amount. Shares of Delta Air Lines (NYSE: DAL) and Spirit Airlines (NYSE: SAVE) traded down as much as 5% apiece. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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American Airlines Group (NASDAQ: AAL), which had some company-specific news, was down about the same amount. What happened Airline stocks were in the red on Tuesday after some disappointing news about the Johnson & Johnson COVID-19 vaccine. * 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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American Airlines Group (NASDAQ: AAL), which had some company-specific news, was down about the same amount. Now what This is a tricky moment for airline investors. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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2021-04-13 00:00:00 UTC
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American Airlines expects first-quarter revenue to plunge 62% vs 2019
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https://www.nasdaq.com/articles/american-airlines-expects-first-quarter-revenue-to-plunge-62-vs-2019-2021-04-13
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Adds details on cash burn, Boeing aircraft deferral
April 13 (Reuters) - American Airlines AAL.O said on Tuesday it expects its first-quarter revenue to plunge about 62% compared with the same period in 2019, and to post a loss of about $2.7 billion to $2.8 billion, excluding the gains from a payroll support program.
The company had previously forecast a decline of between 60% and 65%. (https://bit.ly/3g83hw2)
Earlier in the quarter, the airline reached an agreement with Boeing BA.N to defer delivery of 18 Boeing 737 MAX aircraft to 2023 and 2024 from the previous target of 2021-2022, and convert five 787-8 aircraft to 787-9 aircraft.
American Airlines now expects its average daily cash burn rate for the quarter to be about $27 million per day compared to its previous forecast of $30 million.
Excluding about $8 million per day of regular debt principal and cash severance payments made, the company's cash burn rate turned positive in March, American Airlines said in a regulatory filing.
It expects to end the first quarter with nearly $17.3 billion in total available liquidity.
(Reporting by Shreyasee Raj in Bengaluru; Editing by Bernard Orr and Shinjini Ganguli)
((Shreyasee.Raj@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 cash burn, Boeing aircraft deferral April 13 (Reuters) - American Airlines AAL.O said on Tuesday it expects its first-quarter revenue to plunge about 62% compared with the same period in 2019, and to post a loss of about $2.7 billion to $2.8 billion, excluding the gains from a payroll support program. Excluding about $8 million per day of regular debt principal and cash severance payments made, the company's cash burn rate turned positive in March, American Airlines said in a regulatory filing. (Reporting by Shreyasee Raj in Bengaluru; Editing by Bernard Orr and Shinjini Ganguli) ((Shreyasee.Raj@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 cash burn, Boeing aircraft deferral April 13 (Reuters) - American Airlines AAL.O said on Tuesday it expects its first-quarter revenue to plunge about 62% compared with the same period in 2019, and to post a loss of about $2.7 billion to $2.8 billion, excluding the gains from a payroll support program. American Airlines now expects its average daily cash burn rate for the quarter to be about $27 million per day compared to its previous forecast of $30 million. Excluding about $8 million per day of regular debt principal and cash severance payments made, the company's cash burn rate turned positive in March, American Airlines said in a regulatory filing.
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Adds details on cash burn, Boeing aircraft deferral April 13 (Reuters) - American Airlines AAL.O said on Tuesday it expects its first-quarter revenue to plunge about 62% compared with the same period in 2019, and to post a loss of about $2.7 billion to $2.8 billion, excluding the gains from a payroll support program. American Airlines now expects its average daily cash burn rate for the quarter to be about $27 million per day compared to its previous forecast of $30 million. Excluding about $8 million per day of regular debt principal and cash severance payments made, the company's cash burn rate turned positive in March, American Airlines said in a regulatory filing.
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Adds details on cash burn, Boeing aircraft deferral April 13 (Reuters) - American Airlines AAL.O said on Tuesday it expects its first-quarter revenue to plunge about 62% compared with the same period in 2019, and to post a loss of about $2.7 billion to $2.8 billion, excluding the gains from a payroll support program. American Airlines now expects its average daily cash burn rate for the quarter to be about $27 million per day compared to its previous forecast of $30 million. (Reporting by Shreyasee Raj in Bengaluru; Editing by Bernard Orr and Shinjini Ganguli) ((Shreyasee.Raj@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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4570.0
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2021-04-13 00:00:00 UTC
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US STOCKS-Futures slip as U.S. calls for pause in J&J's single-dose COVID-19 vaccine
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AAL
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https://www.nasdaq.com/articles/us-stocks-futures-slip-as-u.s.-calls-for-pause-in-jjs-single-dose-covid-19-vaccine-2021-04
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By Medha Singh and Shivani Kumaresan
April 13 (Reuters) - U.S. stock index futures fell on Tuesday as U.S. federal health agencies recommended pausing the use of Johnson & Johnson's single-dose COVID-19 vaccine, while investors awaited a reading on a key inflation report.
The call for pause in vaccine distribution comes after six recipients developed a rare disorder involving blood clots. J&J's shares shed 2.8% premarket, with the U.S. Centers for Disease Control and Prevention set to hold a meeting on Wednesday to review the cases.
Cruise operators, airlines and hotel chains, which are poised to benefit from an economic reopening driven by vaccine distributions, dropped.
Carnival Corp CCL.N, Royal Caribbean Cruises Ltd RCL.N, American Airlines AAL.O, United Airlines UAL.O and Marriott International Inc MAR.O shed between 1.8% and 3.4%.
"We don't think it's a major hiccup at this time," said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.
"We need more time to study it. Its impact on reopening is minimal at the point. We still have two other vaccines."
Shares of rival U.S. vaccine makers Pfizer Inc PFE.N and Moderna Inc MRNA.O rose 1.6% and about 6%.
Focus now turns to the Labor Department's data that is expected to show U.S. consumer prices rose 0.5% in March from 0.4% in February. The report is due at 8:30 a.m. ET (1230 GMT).
At 07:52 a.m. ET, Dow E-minis 1YMcv1 were down 112 points, or 0.33%, S&P 500 E-minis EScv1 were down 10 points, or 0.24%. Nasdaq 100 E-minis NQcv1 were down 5 points, or 0.04%
A steady retreat in bond yields since the start of this month on expectations that a spike in inflation this year would be transitory has revived demand for high-growth tech stocks and sent the S&P 500 and the Dow to record highs.
Investors are also marking time ahead of the start of the first-quarter earnings season, with results from Goldman Sachs GS.N, JPMorgan JPM.N and Wells Fargo WFC.N on deck on Wednesday.
Analysts expect earnings for S&P 500 firms to jump 25% from a year ago, driven by strength in consumer discretionary and financial companies, according to Refinitiv IBES data.
Among stocks, U.S.-listed shares of e-commerce firm JD.com JD.O and search giant Baidu BIDU.O fell 2.7% and 2% respectively as China's market regulator warned internet companies to stop using any banned practices.
Cryptocurrency and blockchain-related firms including Riot Blockchain RIOT.O and Marathon Digital Holdings MARA.O jumped 8.3% and 7.5% asbitcoin pricesBTC=BTSP soared 5%, a day ahead of listing of Coinbase, the largest U.S. cryptocurrency exchange.
(Reporting by Medha Singh 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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Carnival Corp CCL.N, Royal Caribbean Cruises Ltd RCL.N, American Airlines AAL.O, United Airlines UAL.O and Marriott International Inc MAR.O shed between 1.8% and 3.4%. Nasdaq 100 E-minis NQcv1 were down 5 points, or 0.04% A steady retreat in bond yields since the start of this month on expectations that a spike in inflation this year would be transitory has revived demand for high-growth tech stocks and sent the S&P 500 and the Dow to record highs. Investors are also marking time ahead of the start of the first-quarter earnings season, with results from Goldman Sachs GS.N, JPMorgan JPM.N and Wells Fargo WFC.N on deck on Wednesday.
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Carnival Corp CCL.N, Royal Caribbean Cruises Ltd RCL.N, American Airlines AAL.O, United Airlines UAL.O and Marriott International Inc MAR.O shed between 1.8% and 3.4%. By Medha Singh and Shivani Kumaresan April 13 (Reuters) - U.S. stock index futures fell on Tuesday as U.S. federal health agencies recommended pausing the use of Johnson & Johnson's single-dose COVID-19 vaccine, while investors awaited a reading on a key inflation report. Cruise operators, airlines and hotel chains, which are poised to benefit from an economic reopening driven by vaccine distributions, dropped.
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Carnival Corp CCL.N, Royal Caribbean Cruises Ltd RCL.N, American Airlines AAL.O, United Airlines UAL.O and Marriott International Inc MAR.O shed between 1.8% and 3.4%. By Medha Singh and Shivani Kumaresan April 13 (Reuters) - U.S. stock index futures fell on Tuesday as U.S. federal health agencies recommended pausing the use of Johnson & Johnson's single-dose COVID-19 vaccine, while investors awaited a reading on a key inflation report. Cruise operators, airlines and hotel chains, which are poised to benefit from an economic reopening driven by vaccine distributions, dropped.
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Carnival Corp CCL.N, Royal Caribbean Cruises Ltd RCL.N, American Airlines AAL.O, United Airlines UAL.O and Marriott International Inc MAR.O shed between 1.8% and 3.4%. Cruise operators, airlines and hotel chains, which are poised to benefit from an economic reopening driven by vaccine distributions, dropped. "We need more time to study it.
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4571.0
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2021-04-13 00:00:00 UTC
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American Airlines sees first-quarter revenue falling 62% vs 2019
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AAL
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https://www.nasdaq.com/articles/american-airlines-sees-first-quarter-revenue-falling-62-vs-2019-2021-04-13
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April 13 (Reuters) - American Airlines AAL.O said on Tuesday its first-quarter revenue is expected to drop about 62% compared with the same period in 2019, and sees a loss of about $2.7 billion to $2.8 billion, excluding net special credits. (https://bit.ly/3g83hw2)
(Reporting by Shreyasee Raj in Bengaluru; Editing by Bernard Orr)
((Shreyasee.Raj@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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April 13 (Reuters) - American Airlines AAL.O said on Tuesday its first-quarter revenue is expected to drop about 62% compared with the same period in 2019, and sees a loss of about $2.7 billion to $2.8 billion, excluding net special credits. (https://bit.ly/3g83hw2) (Reporting by Shreyasee Raj in Bengaluru; Editing by Bernard Orr) ((Shreyasee.Raj@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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April 13 (Reuters) - American Airlines AAL.O said on Tuesday its first-quarter revenue is expected to drop about 62% compared with the same period in 2019, and sees a loss of about $2.7 billion to $2.8 billion, excluding net special credits. (https://bit.ly/3g83hw2) (Reporting by Shreyasee Raj in Bengaluru; Editing by Bernard Orr) ((Shreyasee.Raj@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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April 13 (Reuters) - American Airlines AAL.O said on Tuesday its first-quarter revenue is expected to drop about 62% compared with the same period in 2019, and sees a loss of about $2.7 billion to $2.8 billion, excluding net special credits. (https://bit.ly/3g83hw2) (Reporting by Shreyasee Raj in Bengaluru; Editing by Bernard Orr) ((Shreyasee.Raj@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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April 13 (Reuters) - American Airlines AAL.O said on Tuesday its first-quarter revenue is expected to drop about 62% compared with the same period in 2019, and sees a loss of about $2.7 billion to $2.8 billion, excluding net special credits. (https://bit.ly/3g83hw2) (Reporting by Shreyasee Raj in Bengaluru; Editing by Bernard Orr) ((Shreyasee.Raj@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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4572.0
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2021-04-13 00:00:00 UTC
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S&P 500 Movers: AAL, DHR
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AAL
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https://www.nasdaq.com/articles/sp-500-movers%3A-aal-dhr-2021-04-13
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nan
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In early trading on Tuesday, shares of Danaher topped the list of the day's best performing components of the S&P 500 index, trading up 4.4%. Year to date, Danaher Corp registers a 10.4% gain.
And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 5.2%. American Airlines Group is showing a gain of 37.7% looking at the year to date performance.
Two other components making moves today are Alaska Air Group, trading down 4.6%, and Tesla, trading up 3.2% on the day.
VIDEO: S&P 500 Movers: AAL, DHR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: S&P 500 Movers: AAL, DHR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, Danaher Corp registers a 10.4% gain. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 5.2%.
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VIDEO: S&P 500 Movers: AAL, DHR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Danaher topped the list of the day's best performing components of the S&P 500 index, trading up 4.4%. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 5.2%.
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VIDEO: S&P 500 Movers: AAL, DHR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Danaher topped the list of the day's best performing components of the S&P 500 index, trading up 4.4%. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 5.2%.
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VIDEO: S&P 500 Movers: AAL, DHR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 5.2%. American Airlines Group is showing a gain of 37.7% looking at the year to date performance.
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4573.0
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2021-04-13 00:00:00 UTC
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Why American Airlines Stock Is Falling Today
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https://www.nasdaq.com/articles/why-american-airlines-stock-is-falling-today-2021-04-13
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What happened
Shares of American Airlines Group (NASDAQ: AAL) fell 5% at the open on Tuesday after the company previewed its first-quarter earnings report. The pandemic continues to take its toll, and that is putting pressure on the stock.
So what
American and other airlines had a difficult run in 2020 as the pandemic wiped out demand for air travel, causing the industry to scramble to raise cash and ride out the crisis. We've seen some signs of normalization so far in 2021 as the vaccine rollout progresses, with American shares up as much as 60% year to date in mid-March.
Image source: American Airlines.
But in recent weeks that optimism has been weighed down by the realities of a still-difficult operating environment. On Tuesday, American in a regulatory filing said it expects first-quarter revenue to be down 62% compared to the first quarter of 2019.
American expects to lose between $1.2 billion and $1.3 billion for the quarter, or $2.7 billion to $2.8 billion if you back out the impact of special credits relating to financial payroll assistance provided by the U.S. government. That works out to a loss of between $4.29 and $4.41 per share, excluding credits, a bit worse than the $3.93-per-share loss analysts are expecting.
The update was released on a day when the entire airline sector is under pressure, likely due to uncertainty surrounding the Johnson & Johnson vaccine.
Now what
Despite the losses, American continues to have the financial wherewithal to be a survivor. The airline expects to end the first quarter with $17.3 billion in total available liquidity, and it said its daily burn rate during the quarter was about $27 million, better than the guidance of $30 million per day.
Cash flow is also trending in the right direction. For March, American's estimated average daily cash burn rate was about $4 million. And if you back out about $8 million per day in debt principal and cash severance payments, cash flow actually turned positive last month.
The bottom line is that American is moving toward its destination but will likely take a long time to get there. And stocks, arguably, have recovered quicker than the business fundamentals. Expect continued turbulence during this recovery journey.
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 February 24, 2021
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of American Airlines Group (NASDAQ: AAL) fell 5% at the open on Tuesday after the company previewed its first-quarter earnings report. So what American and other airlines had a difficult run in 2020 as the pandemic wiped out demand for air travel, causing the industry to scramble to raise cash and ride out the crisis. * 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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What happened Shares of American Airlines Group (NASDAQ: AAL) fell 5% at the open on Tuesday after the company previewed its first-quarter earnings report. For March, American's estimated average daily cash burn rate was about $4 million. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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What happened Shares of American Airlines Group (NASDAQ: AAL) fell 5% at the open on Tuesday after the company previewed its first-quarter earnings report. American expects to lose between $1.2 billion and $1.3 billion for the quarter, or $2.7 billion to $2.8 billion if you back out the impact of special credits relating to financial payroll assistance provided by the U.S. government. 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.
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What happened Shares of American Airlines Group (NASDAQ: AAL) fell 5% at the open on Tuesday after the company previewed its first-quarter earnings report. The pandemic continues to take its toll, and that is putting pressure on the stock. The airline expects to end the first quarter with $17.3 billion in total available liquidity, and it said its daily burn rate during the quarter was about $27 million, better than the guidance of $30 million per day.
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4574.0
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2021-04-12 00:00:00 UTC
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3 Robinhood Stocks With the Most Projected Downside, According to Wall Street
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AAL
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https://www.nasdaq.com/articles/3-robinhood-stocks-with-the-most-projected-downside-according-to-wall-street-2021-04-12
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Over the past year, retail investors have made their presence known on Wall Street. In particular, they've flocked to popular online investing app Robinhood. We know this, because Robinhood gained approximately 3 million new users in 2020, yet the average age of its user base is only 31.
While it's great to see young investors putting their money to work in a proven wealth creator (the stock market), the lack of experience for these millennial and/or novice investors is clearly visible on Robinhood's leaderboard, which details the 100 most-held stocks on the platform. Quite a few of Robinhood investors' most-held stocks are momentum plays or penny stocks that lack true substance -- and this isn't a fact that's lost on Wall Street.
According to the consensus one-year price targets of Wall Street analysts, three of the most popular Robinhood stocks offer projected downside ranging from 28% to as much as 77%. You could rightly say that these are the stocks Wall Street believes you should avoid.
Image source: Getty Images.
American Airlines Group: Implied downside of 28%
The first of the extremely popular Robinhood stocks that Wall Street believes should be grounded is American Airlines Group (NASDAQ: AAL). The major airline closed on April 7 at $23.93 a share, but has a consensus price target over the coming 12 months of $17.33. That's an implied decline of 28%.
On the bright side, airline stocks are expected to benefit from pent-up vacation demand in the wake of an extraordinary coronavirus vaccination response effort in the United States. Through April 7, a quarter of the adult population in the U.S. was fully vaccinated, with more than 42% of the population having received at least one dose. The more people who choose to vaccinate, the quicker pandemic-related restrictions will be lifted.
However, American Airlines is a mess compared to most other major and regional airlines. Even with coronavirus relief loans and capital raises, the company has about $41 billion in debt and less than $7 billion in available cash. That more than $34 billion in net debt is the highest in the airline industry, and it's going to cripple the company's growth initiatives throughout the rest of the decade, assuming it's able to survive over the long run.
As my Foolish colleague and airline industry specialist Adam Levine-Weinberg pointed out in 2018, American Airlines also made the poor decision to modernize its fleet well before it was necessary to retire dozens of its 737s. This is another reason why American's debt is so much higher than its peers.
Even if travel returns to normal earlier than expected and the economy churns out above-average growth, American Airlines' margins will be mediocre, at best. With the company no longer able to repurchase its stock or pay shareholders a dividend as a result of taking coronavirus relief loans, Robinhood's 14th most-held stock certainly has the look of an investment to avoid.
Image source: Getty Images.
AMC Entertainment: Implied downside of 56%
An even more popular Robinhood stock -- the platforms' fourth most-held -- with double the downside potential of American Airlines is movie theater chain AMC Entertainment (NYSE: AMC). Even with a lofty price target set recently by investment bank B. Riley Financial, shares of AMC are expected to decline from a closing price of $9.85 to just $4.29. That's a projected one-year fall of 56%, if the consensus proves accurate.
Similar to American Airlines, the bull thesis for AMC centers around the reopening of the U.S. economy. Last year saw periods of time where most of AMC's theaters were closed. The rapid vaccination rates we're seeing in the U.S. offer hope that movie theaters can return to full capacity sooner than later. AMC has also been exceptionally popular among Reddit's retail investors.
But there are plenty of reasons to be skeptical of AMC's turnaround.
For one, let's not forget that the company was mere days from bankruptcy in January, and was saved only by issuing nearly 165 million shares and offering over $400 million in debt capital. According to S&P Global Market Intelligence, the company has in the neighborhood of $11 billion in combined convertible and non-convertible debt, with some $6 billion in non-convertible debt due in 2026. This is a company that could struggle to service its existing debt, and may not be able to raise the capital need to repay $6 billion in debt in five years.
A lot will depend on a May 4 proxy vote where shareholders will approve or deny AMC's ability to issue up to 500 million new shares. With approval, the company likely survives, but shareholders will get buried by dilution. If voted down, I don't see how AMC has the funds to survive over the long term.
Tack on the fact that streaming companies are eating into AMC's film exclusivity, and you have plenty of reasons to heed Wall Street's warning.
Image source: Getty Images.
GameStop: Implied downside of 77%
But the crème de la crème of implosions is expected to come from video game and accessories retailer GameStop (NYSE: GME). Currently the 13th most-held stock on Robinhood, GameStop is projected to decline from the $177.97 it closed at on April 7 to just $40.64 over the next 12 months. If accurate, shareholders would be looking at a loss of 77%.
Like AMC, the Reddit frenzy has a played a big role in its recent upside. GameStop was the most short-sold stock in mid-January, as a percentage of its float. This made it the perfect target of Reddit's retail investors, who chose to buy shares and out-of-the-money call options in GameStop to effect a massive short squeeze.
The bad news for GameStop (and AMC, too) is that the recipe needed for an extended short squeeze no longer exists. Considerably higher daily trading volume and a huge decline in short interest means that pessimists are unlikely to feel "trapped" in their positions, which is a necessity to induce a short squeeze. This places the focus on GameStop's operating results, which frankly haven't been that good.
Although e-commerce sales rose by 191% last year, total sales still declined by 21%. This included a 12% reduction in the company's store count. Even with digital gaming initiatives growing rapidly, GameStop waited far too long to make the shift away from its brick-and-mortar model. As a result, it's left with a core strategy that involves closing stores and cutting costs until it's back in the profit column. Last I checked, backpedaling to profitability isn't a long-term growth strategy.
There's a lot of retail euphoria behind GameStop at the moment, but operating results are what drive a company's share price over the long run.
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 February 24, 2021
Sean Williams 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 Group: Implied downside of 28% The first of the extremely popular Robinhood stocks that Wall Street believes should be grounded is American Airlines Group (NASDAQ: AAL). On the bright side, airline stocks are expected to benefit from pent-up vacation demand in the wake of an extraordinary coronavirus vaccination response effort in the United States. That more than $34 billion in net debt is the highest in the airline industry, and it's going to cripple the company's growth initiatives throughout the rest of the decade, assuming it's able to survive over the long run.
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American Airlines Group: Implied downside of 28% The first of the extremely popular Robinhood stocks that Wall Street believes should be grounded is American Airlines Group (NASDAQ: AAL). According to the consensus one-year price targets of Wall Street analysts, three of the most popular Robinhood stocks offer projected downside ranging from 28% to as much as 77%. With the company no longer able to repurchase its stock or pay shareholders a dividend as a result of taking coronavirus relief loans, Robinhood's 14th most-held stock certainly has the look of an investment to avoid.
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American Airlines Group: Implied downside of 28% The first of the extremely popular Robinhood stocks that Wall Street believes should be grounded is American Airlines Group (NASDAQ: AAL). With the company no longer able to repurchase its stock or pay shareholders a dividend as a result of taking coronavirus relief loans, Robinhood's 14th most-held stock certainly has the look of an investment to avoid. AMC Entertainment: Implied downside of 56% An even more popular Robinhood stock -- the platforms' fourth most-held -- with double the downside potential of American Airlines is movie theater chain AMC Entertainment (NYSE: AMC).
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American Airlines Group: Implied downside of 28% The first of the extremely popular Robinhood stocks that Wall Street believes should be grounded is American Airlines Group (NASDAQ: AAL). That more than $34 billion in net debt is the highest in the airline industry, and it's going to cripple the company's growth initiatives throughout the rest of the decade, assuming it's able to survive over the long run. AMC Entertainment: Implied downside of 56% An even more popular Robinhood stock -- the platforms' fourth most-held -- with double the downside potential of American Airlines is movie theater chain AMC Entertainment (NYSE: AMC).
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4575.0
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2021-04-09 00:00:00 UTC
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Boeing Grounds 60 737 MAX Jets Due to Potential Power System Issue
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AAL
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https://www.nasdaq.com/articles/boeing-grounds-60-737-max-jets-due-to-potential-power-system-issue-2021-04-09
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Boeing (NYSE: BA) has requested that 60 737 MAX jets be grounded temporarily to address an electrical power system issue in those jets.
The aerospace manufacturer said it reached out to 16 carriers who operate the jet due to a potential issue with a backup power control unit. U.S. customers Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) were among the airlines impacted, according to CNBC.
Image source: Boeing.
The issue, though minor, is another setback for Boeing's long-troubled 737 MAX program. The plane was grounded in March 2019 after a pair of fatal accidents and was only cleared to return to service last fall.
Boeing is working with the Federal Aviation Administration on this latest issue, which requires airlines to check and verify that "a sufficient ground path exists for a component of the electrical power system."
Although investors will be loathed to see another issue with the 737 MAX, the nature of this warning appears to indicate that it is an issue with a small number of jets and not a design flaw. It is also unrelated to the systems that were responsible for the fatal crashes and subsequent grounding.
10 stocks we like better than Boeing
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 Boeing 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 February 24, 2021
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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U.S. customers Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) were among the airlines impacted, according to CNBC. The aerospace manufacturer said it reached out to 16 carriers who operate the jet due to a potential issue with a backup power control unit. The plane was grounded in March 2019 after a pair of fatal accidents and was only cleared to return to service last fall.
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U.S. customers Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) were among the airlines impacted, according to CNBC. 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 February 24, 2021 Lou Whiteman has no position in any of the stocks mentioned.
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U.S. customers Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) were among the airlines impacted, according to CNBC. Boeing (NYSE: BA) has requested that 60 737 MAX jets be grounded temporarily to address an electrical power system issue in those jets. Boeing is working with the Federal Aviation Administration on this latest issue, which requires airlines to check and verify that "a sufficient ground path exists for a component of the electrical power system."
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U.S. customers Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) were among the airlines impacted, according to CNBC. Boeing (NYSE: BA) has requested that 60 737 MAX jets be grounded temporarily to address an electrical power system issue in those jets. 10 stocks we like better than Boeing When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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4576.0
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2021-04-08 00:00:00 UTC
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ANALYSIS-U.S. voting law debates stoke tussle over airline tax breaks
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AAL
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https://www.nasdaq.com/articles/analysis-u.s.-voting-law-debates-stoke-tussle-over-airline-tax-breaks-2021-04-08
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By Tracy Rucinski
CHICAGO, April 8 (Reuters) - Airlines are bracing for challenges to tax breaks they receive from U.S. states as a result of wading in to a political debate over voting rights, rekindling a domestic tug of war between politics and profits.
A Republican backlash faced by Delta Air Lines DAL.N in its home state of Georgia after it called new restrictions unacceptable is spreading to Texas as some corporations clash with Republican lawmakers there.
Democrats say the tighter regulations are undemocratic and will hurt Black voters in particular.
American Airlines AAL.O and United Airlines UAL.O have spoken out against measures that restrict voting access, sparking a furious response from Republicans who say the bills counter fraud.
After Delta blasted Georgia's Republican-backed voting bill last week, some lawmakers attempted to end its jet-fuel tax breaks.
Now airlines are concerned that tax breaks that allow them to reduce fuel costs could be singled out by lawmakers in Texas in retaliation for opposition to new voting laws, people familiar with their thinking said.
"We have an eye on that as a possibility and I think it goes without saying that we wouldn't like that," one person said, asking not to be identified.
On Tuesday, Texas Lieutenant Governor Dan Patrick ripped companies for opposing the bill and accused American's chief executive of failing to read it, something the airline denied.
The clashes shed new light on the reliance of some U.S. carriers on state tax breaks to shave their fuel costs, airlines' second-largest expense after labor and one that weighs on razor-thin profit margins.
"There's one thing that you consume a lot of in the airline business and that is fuel," said U.S. airline analyst Bob Mann.
"So they spend a lot of time trying to avoid taxation or eliminate taxation where they can. It's a competitive weapon."
Airport and fuel costs can influence airlines' decisions on where to add flights, and most states "really want more air service, not less," an executive at a small U.S. airline said.
RECURRING THREATS
It is not the first time airlines have seen tax breaks fall under the microscope after they became involved in political topics.
In 2018, Georgia temporarily struck down a tax exemption after Delta ended its relationship with the National Rifle Association following a school shooting in Parkland, Florida.
The exemption would have saved Delta $40 million a year, a small sum compared with its $9 billion total fuel bill but enough to impact marginal routes. Eventually it won the tax break.
Delta is the largest employer in Georgia and its Atlanta hub generates significant revenue for the state.
North Carolina threatened to repeal a fuel tax exemption for American Airlines, with a hub in Charlotte, after it opposed a state law on transgender bathrooms, but ultimately backed down.
As hot-button national issues have gained force after the Trump presidency, business calculations are shifting.
Leaders of large U.S. airlines have decided that taking decisive stands on issues like civil rights is increasingly important to protecting their brand and appeasing employees and customers, the sources said.
For now, that overshadows concerns about whether those decisions could imperil items like tax breaks, they added.
Prolonged attention to tax breaks could, however, reopen wounds between U.S. carriers and rivals over what constitutes unfair aid.
In 2015, Delta, American and United - the so-called Big 3 - accused Gulf airlines of benefiting from $42 billion in public subsidies including fuel hedging concessions and tax policies.
Emirates EMIRA.UL, Qatar Airways and Etihad rejected the complaint, saying U.S. carriers themselves received support.
"Airlines are not immune from two-headed behavior. They decry government involvement in anything until it's something that benefits them, at which point they're all for it," said Mann.
U.S. airline industry sources rejected any comparison with the Gulf trade dispute.
"Talking about state-subsidized airlines versus some tax exemptions is much different in size and scope than whether or not a particular state chooses to tax jet fuel,” one said.
U.S. airlines have struggled to act in unison on either the earlier trade dispute or the recent domestic political conflict.
That adds a layer of complexity in Texas, where analysts say it would be difficult for lawmakers to punish the Big 3 without also harming Southwest Airlines Co LUV.N, which has not directly opposed the voting bills.
"Southwest's biggest imperative right now is to win customers and survive the pandemic without alienating 50% of the population," one person familiar with its thinking said.
FACTBOX-What companies have said on voting restrictions in Georgia, other U.S. states
Delta, Coca-Cola blast home state Georgia's voting restrictions as 'unacceptable'
Georgia bans giving water to voters in line under sweeping restrictions
(Reporting by Tracy Rucinski in Chicago Additional reporting by David Shepardson in Washington Editing by Tim Hepher and Matthew Lewis)
((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 and United Airlines UAL.O have spoken out against measures that restrict voting access, sparking a furious response from Republicans who say the bills counter fraud. The clashes shed new light on the reliance of some U.S. carriers on state tax breaks to shave their fuel costs, airlines' second-largest expense after labor and one that weighs on razor-thin profit margins. North Carolina threatened to repeal a fuel tax exemption for American Airlines, with a hub in Charlotte, after it opposed a state law on transgender bathrooms, but ultimately backed down.
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American Airlines AAL.O and United Airlines UAL.O have spoken out against measures that restrict voting access, sparking a furious response from Republicans who say the bills counter fraud. After Delta blasted Georgia's Republican-backed voting bill last week, some lawmakers attempted to end its jet-fuel tax breaks. In 2015, Delta, American and United - the so-called Big 3 - accused Gulf airlines of benefiting from $42 billion in public subsidies including fuel hedging concessions and tax policies.
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American Airlines AAL.O and United Airlines UAL.O have spoken out against measures that restrict voting access, sparking a furious response from Republicans who say the bills counter fraud. By Tracy Rucinski CHICAGO, April 8 (Reuters) - Airlines are bracing for challenges to tax breaks they receive from U.S. states as a result of wading in to a political debate over voting rights, rekindling a domestic tug of war between politics and profits. Now airlines are concerned that tax breaks that allow them to reduce fuel costs could be singled out by lawmakers in Texas in retaliation for opposition to new voting laws, people familiar with their thinking said.
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American Airlines AAL.O and United Airlines UAL.O have spoken out against measures that restrict voting access, sparking a furious response from Republicans who say the bills counter fraud. After Delta blasted Georgia's Republican-backed voting bill last week, some lawmakers attempted to end its jet-fuel tax breaks. Now airlines are concerned that tax breaks that allow them to reduce fuel costs could be singled out by lawmakers in Texas in retaliation for opposition to new voting laws, people familiar with their thinking said.
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4577.0
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2021-04-08 00:00:00 UTC
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Southwest Is a Trade Now, But Soon May Be a Sound Investment
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AAL
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https://www.nasdaq.com/articles/southwest-is-a-trade-now-but-soon-may-be-a-sound-investment-2021-04-08
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Since the start of 2021, Southwest Airlines (NYSE:LUV) stock has risen 36% as investors decide it’s safe to move into airline stocks.
Source: Felipe_Sanchez / Shutterstock.com
Southwest Airlines stock is at $63.50 with a market cap of $37.8 billion after it reported 2020 sales of $9 billion. Analysts are discounting that figure, however, looking for guidance instead at its 2019 revenues of $22.4 billion.
Shares are now trading slightly above where they were when those results were coming in. Back then Southwest also had a quarterly dividend of 18 cent per share. That dividend ended a year ago and there are as yet no indications it is coming back.
Undoing the Damage
Like the other airlines, Southwest sustained grave financial damage during the pandemic.
The company ended the year with over $11.7 billion in long-term debt. It added nearly $9 billion of it during 2020 as it fought to stay in business without passengers. But unlike rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL), Southwest managed to end the year with $13.3 billion in cash, even after losing $3 billion, or $5.44 per share fully diluted, during the year.
7 Monthly Dividend Stocks That Pay the Bills
Another loss is expected when it next reports April 29, $1.91/share on revenue of $2.2 billion, But that may be its last loss, as it is now calling back pilots and preparing for a busy summer flying season.
Credit the vaccines. The Centers for Disease Control issued new guidance that people who have been fully vaccinated are now free to move about the country. That is expected to unleash enormous pent-up demand from people who haven’t seen loved ones, or taken a real vacation, in over a year.
Management also displayed confidence in ordering 100 new Boeing (NYSE:BA) 737-MAX aircraft. The new planes will help it retire older aircraft and cut fuel costs.
The new aircraft are the smallest version of the MAX, reflecting the airline’s belief that short-haul flying will come back quickly. Its latest route expansion adds small cities like Myrtle Beach, South Carolina to the map, a total of 36 new routes. The airline is jump-starting demand with a sale that prices some tickets at $49.
How High Can LUV Stock Fly?
Analysts have been slow to move up their earnings estimates, however. Profits aren’t expected to return until the December quarter. Over at Tipranks, analysts think Southwest’s move is just about over, with a price target just 1% higher than where it now trades. Still, 14 of 16 are telling investors to buy, and the other two are on hold.
The latest moves by analysts are bullish.
While analysts at Zacks still have Southwest rated as a hold, they’re writing favorably about it. Bank of America (NYSE:BAC), which already had a buy rating on the stock, has raised its price target to $68. Another bullish call from Morgan Stanley (NYSE:MS) raises the price target to $80. Morgan Stanley analyst Ravi Shanker likes the whole airline group, believing travel could rebound significantly above 2019 levels.
The Bottom Line
Analysts pounding the table for airline stocks is the best economic news in some time.
It not only bodes well for Southwest but for hotels, resorts and even cruise lines. The uneven distribution of vaccines, with the U.S. rapidly getting its shots, also favors domestic destinations that are Southwest’s specialty. Southwest’s relative financial strength also makes it look like the best place to speculate within the group.
That means you can probably make money buying LUV stock today. Just keep an eye on the headlines. A fourth Covid wave based on new variants, growing international tensions, or plain overexuberance could still hit the stock.
For now, it’s a trade, but LUV stock could soon once again be a sound investment.
At the date of publication, Dana Blankenhorn directly owned shares in BAC. He does not hold, directly or indirectly, positions in any other securities mentioned in this article.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack https://danafblankenhorn.substack.com/.
The post Southwest Is a Trade Now, But Soon May Be a Sound Investment 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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But unlike rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL), Southwest managed to end the year with $13.3 billion in cash, even after losing $3 billion, or $5.44 per share fully diluted, during the year. The new aircraft are the smallest version of the MAX, reflecting the airline’s belief that short-haul flying will come back quickly. Morgan Stanley analyst Ravi Shanker likes the whole airline group, believing travel could rebound significantly above 2019 levels.
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But unlike rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL), Southwest managed to end the year with $13.3 billion in cash, even after losing $3 billion, or $5.44 per share fully diluted, during the year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since the start of 2021, Southwest Airlines (NYSE:LUV) stock has risen 36% as investors decide it’s safe to move into airline stocks. Another bullish call from Morgan Stanley (NYSE:MS) raises the price target to $80.
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But unlike rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL), Southwest managed to end the year with $13.3 billion in cash, even after losing $3 billion, or $5.44 per share fully diluted, during the year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since the start of 2021, Southwest Airlines (NYSE:LUV) stock has risen 36% as investors decide it’s safe to move into airline stocks. Source: Felipe_Sanchez / Shutterstock.com Southwest Airlines stock is at $63.50 with a market cap of $37.8 billion after it reported 2020 sales of $9 billion.
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But unlike rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL), Southwest managed to end the year with $13.3 billion in cash, even after losing $3 billion, or $5.44 per share fully diluted, during the year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since the start of 2021, Southwest Airlines (NYSE:LUV) stock has risen 36% as investors decide it’s safe to move into airline stocks. Source: Felipe_Sanchez / Shutterstock.com Southwest Airlines stock is at $63.50 with a market cap of $37.8 billion after it reported 2020 sales of $9 billion.
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4578.0
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2021-04-08 00:00:00 UTC
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Anglo American to spin off South African thermal coal and list on JSE
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AAL
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https://www.nasdaq.com/articles/anglo-american-to-spin-off-south-african-thermal-coal-and-list-on-jse-2021-04-08
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JOHANNESBURG, April 8 (Reuters) - Anglo American plc AAL.L said it would spin off its thermal coal assets in South Africa and relist them on the Johannesburg Stock Exchange under Thungela Resources Limited, as it looks to transition away from the fossil fuel.
The miner said the transaction would be subject to shareholder approval in May.
(Reporting by Tanisha Heiberg, Editing by Helen Reid)
((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, April 8 (Reuters) - Anglo American plc AAL.L said it would spin off its thermal coal assets in South Africa and relist them on the Johannesburg Stock Exchange under Thungela Resources Limited, as it looks to transition away from the fossil fuel. The miner said the transaction would be subject to shareholder approval in May. (Reporting by Tanisha Heiberg, Editing by Helen Reid) ((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, April 8 (Reuters) - Anglo American plc AAL.L said it would spin off its thermal coal assets in South Africa and relist them on the Johannesburg Stock Exchange under Thungela Resources Limited, as it looks to transition away from the fossil fuel. The miner said the transaction would be subject to shareholder approval in May. (Reporting by Tanisha Heiberg, Editing by Helen Reid) ((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, April 8 (Reuters) - Anglo American plc AAL.L said it would spin off its thermal coal assets in South Africa and relist them on the Johannesburg Stock Exchange under Thungela Resources Limited, as it looks to transition away from the fossil fuel. The miner said the transaction would be subject to shareholder approval in May. (Reporting by Tanisha Heiberg, Editing by Helen Reid) ((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, April 8 (Reuters) - Anglo American plc AAL.L said it would spin off its thermal coal assets in South Africa and relist them on the Johannesburg Stock Exchange under Thungela Resources Limited, as it looks to transition away from the fossil fuel. The miner said the transaction would be subject to shareholder approval in May. (Reporting by Tanisha Heiberg, Editing by Helen Reid) ((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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4579.0
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2021-04-07 00:00:00 UTC
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Colombia rejects Glencore unit's return of two coal mining concessions
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AAL
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https://www.nasdaq.com/articles/colombia-rejects-glencore-units-return-of-two-coal-mining-concessions-2021-04-07
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By Oliver Griffin
BOGOTA, April 7 (Reuters) - Colombia's national mining agency (ANM) said on Wednesday it has initially rejected a request by coal miner Prodeco, a wholly-owned unit of miner and commodity trader Glencore GLEN.L, to return two of its Colombian concessions.
Anglo-Swiss company Glencore said in February Prodeco would hand back its operations at the Calenturitas and La Jagua mines to Colombia, after its request to keep the operations on care and maintenance was denied by the ANM.
The two mines were placed on care and maintenance last March amid the coronavirus pandemic.
Obligations which must be met before returning two of the contracts for concessions included within La Jagua - including for environmental management - remain outstanding, the ANM said in a statement, making the request to return them "legally inviable."
"It's not possible for the (agency) to approve the request for resignation because it is not up-to-date in complying with all contractual obligations at the time of submitting the resignation, as required by the mining code," ANM president Juan Miguel Duran said in a separate message.
While the request to hand back the DKP-141 and HKT-08031 contracts has initially been denied, the company can request to relinquish the concessions again in the future.
A spokesman for London-listed Glencore declined to comment.
The two mining operations are made up of five concessions, including one at Calenturitas. Resignation requests for the three remaining concessions are still being evaluated, Duran said, while a sixth concession at La Jagua finished in 2019.
Glencore's coal production in 2020 fell 24% to 106 million tonnes, with Prodeco's output plummeting 76% to 3.8 million tonnes.
Production at Cerrejon - a Colombian coal mine owned jointly by Glencore, Anglo American AAL.L and BHP BHP.AX - also fell last year, declining 52% to 12.4 million tonnes.
(Reporting by Oliver Griffin Editing by Marguerita Choy)
((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Production at Cerrejon - a Colombian coal mine owned jointly by Glencore, Anglo American AAL.L and BHP BHP.AX - also fell last year, declining 52% to 12.4 million tonnes. By Oliver Griffin BOGOTA, April 7 (Reuters) - Colombia's national mining agency (ANM) said on Wednesday it has initially rejected a request by coal miner Prodeco, a wholly-owned unit of miner and commodity trader Glencore GLEN.L, to return two of its Colombian concessions. "It's not possible for the (agency) to approve the request for resignation because it is not up-to-date in complying with all contractual obligations at the time of submitting the resignation, as required by the mining code," ANM president Juan Miguel Duran said in a separate message.
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Production at Cerrejon - a Colombian coal mine owned jointly by Glencore, Anglo American AAL.L and BHP BHP.AX - also fell last year, declining 52% to 12.4 million tonnes. Anglo-Swiss company Glencore said in February Prodeco would hand back its operations at the Calenturitas and La Jagua mines to Colombia, after its request to keep the operations on care and maintenance was denied by the ANM. Obligations which must be met before returning two of the contracts for concessions included within La Jagua - including for environmental management - remain outstanding, the ANM said in a statement, making the request to return them "legally inviable."
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Production at Cerrejon - a Colombian coal mine owned jointly by Glencore, Anglo American AAL.L and BHP BHP.AX - also fell last year, declining 52% to 12.4 million tonnes. By Oliver Griffin BOGOTA, April 7 (Reuters) - Colombia's national mining agency (ANM) said on Wednesday it has initially rejected a request by coal miner Prodeco, a wholly-owned unit of miner and commodity trader Glencore GLEN.L, to return two of its Colombian concessions. Anglo-Swiss company Glencore said in February Prodeco would hand back its operations at the Calenturitas and La Jagua mines to Colombia, after its request to keep the operations on care and maintenance was denied by the ANM.
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Production at Cerrejon - a Colombian coal mine owned jointly by Glencore, Anglo American AAL.L and BHP BHP.AX - also fell last year, declining 52% to 12.4 million tonnes. Anglo-Swiss company Glencore said in February Prodeco would hand back its operations at the Calenturitas and La Jagua mines to Colombia, after its request to keep the operations on care and maintenance was denied by the ANM. Resignation requests for the three remaining concessions are still being evaluated, Duran said, while a sixth concession at La Jagua finished in 2019.
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4580.0
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2021-04-07 00:00:00 UTC
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Colombia rejects Glencore unit's return of two coal mining concessions
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AAL
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https://www.nasdaq.com/articles/colombia-rejects-glencore-units-return-of-two-coal-mining-concessions-2021-04-07-0
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By Oliver Griffin
BOGOTA, April 7 (Reuters) - Colombia's national mining agency (ANM) said on Wednesday it has initially rejected a request by coal miner Prodeco, a wholly-owned unit of miner and commodity trader Glencore GLEN.L, to return two of its Colombian concessions.
Anglo-Swiss company Glencore said in February Prodeco would hand back its operations at the Calenturitas and La Jagua mines to Colombia, after its request to keep the operations on care and maintenance was denied by the ANM.
The two mines were placed on care and maintenance last March amid the coronavirus pandemic.
Obligations which must be met before returning two of the contracts for concessions included within La Jagua - including for environmental management - remain outstanding, the ANM said in a statement, making the request to return them "legally inviable."
"It's not possible for the (agency) to approve the request for resignation because it is not up-to-date in complying with all contractual obligations at the time of submitting the resignation, as required by the mining code," ANM President Juan Miguel Duran said in a separate message.
While the request to hand back the DKP-141 and HKT-08031 contracts has initially been denied, the company can request to relinquish the concessions again in the future.
"Prodeco is acting in full accordance with the legal and regulatory framework governing our operations and the mining sector," the company said in an email, adding that it is evaluating the ANM's decision.
The two mining operations are made up of five concessions, including one at Calenturitas. Resignation requests for the three remaining concessions are still being evaluated, Duran said, while a sixth concession at La Jagua finished in 2019.
Glencore's coal production in 2020 fell 24% to 106 million tonnes, with Prodeco's output plummeting 76% to 3.8 million tonnes.
Production at Cerrejon - a Colombian coal mine owned jointly by Glencore, Anglo American AAL.L and BHP BHP.AX - also fell last year, declining 52% to 12.4 million tonnes.
(Reporting by Oliver Griffin Editing by Marguerita Choy)
((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Production at Cerrejon - a Colombian coal mine owned jointly by Glencore, Anglo American AAL.L and BHP BHP.AX - also fell last year, declining 52% to 12.4 million tonnes. By Oliver Griffin BOGOTA, April 7 (Reuters) - Colombia's national mining agency (ANM) said on Wednesday it has initially rejected a request by coal miner Prodeco, a wholly-owned unit of miner and commodity trader Glencore GLEN.L, to return two of its Colombian concessions. "Prodeco is acting in full accordance with the legal and regulatory framework governing our operations and the mining sector," the company said in an email, adding that it is evaluating the ANM's decision.
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Production at Cerrejon - a Colombian coal mine owned jointly by Glencore, Anglo American AAL.L and BHP BHP.AX - also fell last year, declining 52% to 12.4 million tonnes. Anglo-Swiss company Glencore said in February Prodeco would hand back its operations at the Calenturitas and La Jagua mines to Colombia, after its request to keep the operations on care and maintenance was denied by the ANM. Obligations which must be met before returning two of the contracts for concessions included within La Jagua - including for environmental management - remain outstanding, the ANM said in a statement, making the request to return them "legally inviable."
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Production at Cerrejon - a Colombian coal mine owned jointly by Glencore, Anglo American AAL.L and BHP BHP.AX - also fell last year, declining 52% to 12.4 million tonnes. By Oliver Griffin BOGOTA, April 7 (Reuters) - Colombia's national mining agency (ANM) said on Wednesday it has initially rejected a request by coal miner Prodeco, a wholly-owned unit of miner and commodity trader Glencore GLEN.L, to return two of its Colombian concessions. Anglo-Swiss company Glencore said in February Prodeco would hand back its operations at the Calenturitas and La Jagua mines to Colombia, after its request to keep the operations on care and maintenance was denied by the ANM.
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Production at Cerrejon - a Colombian coal mine owned jointly by Glencore, Anglo American AAL.L and BHP BHP.AX - also fell last year, declining 52% to 12.4 million tonnes. Anglo-Swiss company Glencore said in February Prodeco would hand back its operations at the Calenturitas and La Jagua mines to Colombia, after its request to keep the operations on care and maintenance was denied by the ANM. Resignation requests for the three remaining concessions are still being evaluated, Duran said, while a sixth concession at La Jagua finished in 2019.
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4581.0
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2021-04-07 00:00:00 UTC
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5 Ultra-Popular Stocks to Avoid Like the Plague in April
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AAL
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https://www.nasdaq.com/articles/5-ultra-popular-stocks-to-avoid-like-the-plague-in-april-2021-04-07
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We're only a quarter of the way through 2021, but things are looking up for equities. The iconic Dow Jones Industrial Average ended Q1 higher by nearly 8%, with the benchmark S&P 500 tacking on close to 6%. Considering that the stock market has gained approximately 7% annually, inclusive of dividend reinvestment, throughout history, we look to be on pace for another above-average year of returns.
But as any tenured investor will tell people, an uptrending market doesn't mean all stocks will be winners.
For example, the following five stocks have been exceptionally popular within the investment community, yet all have significant flaws that simply can't be overlooked at their current valuations. These are the companies investors should be actively avoiding like the plague in April.
Image source: Getty Images.
AMC Entertainment
Since late January, movie theater chain AMC Entertainment (NYSE: AMC) has been a primary target of retail investors on Reddit's WallStreetBets chatroom. These predominantly young and novice investors have been focusing on companies with high levels of short interest and attempting to effect a short squeeze. They were successful in doing so two months ago and sent AMC to as high as $20 per share.
But peel back the fanaticism surrounding the Reddit trade, and you'll see that there's actually less substance with AMC than with most other Reddit stocks.
For instance, AMC has a large net debt position and more than $1 billion in cash, according to the company's fourth-quarter operating results. While significantly increasing its share count and issuing more than $400 million in debt capital helped the company stave off bankruptcy in January, it's left AMC with few options moving forward. If shareholders decline to allow the company to sell up to 500 million shares, AMC may not have enough cash to make it through 2022. Meanwhile, if they approve the measure, AMC will likely survive, but shareholders will be drowned by dilution. It's a no-win scenario.
From an operating standpoint, AMC is a long way from even getting back to where it was in 2019. It's facing streaming competition for new film releases from AT&T's WarnerMedia and Walt Disney, and the company is operating at much less than 100% capacity in its theaters. According to Wall Street's consensus, AMC won't be making money until 2024, at the earliest.
With the prospect of a short squeeze not looking so hot, AMC Entertainment should be the No. 1 stock to avoid in April.
Image source: Getty Images.
Zomedica
A somewhat common theme you'll note on this list are companies that have been targets of the Reddit community. While not all so-called "Reddit stocks" are bad news, quite a few stand out for their insane valuations that can't be justified. Clinical-stage veterinary drug and diagnostics developer Zomedica (NYSEMKT: ZOM) is a good example.
Zomedica initially received a boost in January after Tiger King star Carole Baskin was paid to namedrop the company in a YouTube video. A few weeks later, it caught the attention of retail investors, who seem to love penny stocks almost as much as short squeeze opportunities. However, neither of these catalysts offer anything tangible for investors to get excited about.
If there is a marginal positive, it's that Zomedica sold its first-ever Truforma diagnostic system in March, so it's now a revenue-generating company. It also sold quite a bit of stock to raise capital and ease its cash-burn concerns. Nevertheless, Zomedica is valued at roughly 70 times Wall Street's forecasted sales for three years from now, and it's not expected to be profitable anytime soon.
Further, the only way Zomedica was able to ease its cash concerns was by burying its investors in dilution. Since the year began, Zomedica's share count has jumped by more than 305 million. It's not a stock that should be in long-term investors' portfolios.
Image source: Getty Images.
GameStop
Keeping with the theme of Reddit stocks whose valuations don't make one shred of sense, we have video game and accessories retailer GameStop (NYSE: GME). GameStop was the very first company to gain notoriety for its short squeeze in mid-January. At the time, GameStop's short interest was over 100%.
However, the dynamics of GameStop's short squeeze in January are very different from what we see today. Short interest in the company has declined dramatically, and the company's high daily trading volume would make it easy for short-sellers to exit the stock, should they choose to do so. Without the feeling of being trapped in their positions, any squeeze event in GameStop is going to be very short-lived.
Beyond the primary buy thesis in GameStop being broken (i.e., holding for a short squeeze), the company's operating performance is still mediocre, at best. Though e-commerce sales rose 191% in 2020, the company's total sales declined by 21%, partially because of the closure of 12% of its stores. Even with GameStop laser-focused on promoting digital gaming, its sales will be relatively flat for years and it'll be closing stores in an attempt to backpedal its way into the profit column.
In other words, we're talking about a company whose shares were up 900% in the first quarter that's essentially running in place. GameStop isn't where you want to put your money to work in this market.
Image source: Getty Images.
Cassava Sciences
Next up is clinical-stage biotech stock Cassava Sciences (NASDAQ: SAVA).
In early February, Cassava released positive clinical data from an interim analysis involving lead drug candidate simufilam as a treatment for Alzheimer's disease. The open-label study demonstrated improvements in cognition and behavior scores at the six-month mark, with no safety issues noted. With this data release coinciding with the Reddit frenzy, Cassava Sciences stock was sent into the stratosphere.
On a bright note, the company ended February with approximately $280 million in cash after netting almost $190 million in a registered direct share offering. This should give Cassava more than enough capital to fund its research for years to come.
On the other hand, the late-stage outcome for Alzheimer's disease therapies is incredibly poor. Over the past decade, multiple mid-stage treatments have shown promise, only to fall flat in larger blinded studies. In particular, the failure rate for Alzheimer's treatments has been especially high among lesser-known drug developers.
While I'd love to see Cassava succeed, given how terrible Alzheimer's disease is, history suggests it's a longshot to do so. Investors would be wise to invest their money elsewhere in April (and beyond).
Image source: American Airlines.
American Airlines Group
Lastly, investors would be smart to keep their distance from American Airlines Group (NASDAQ: AAL) in April.
American Airlines, and airline stocks in general, have been popular companies to buy as part of the U.S. reopening trade. With the U.S. making significant headway on the coronavirus vaccination campaign, the hope is that travel numbers will pick up later this year and perhaps even return to pre-pandemic levels by 2022. This, of course, assumes that enough people choose to get vaccinated, and that variants of the disease don't minimize their effectiveness of existing vaccines.
Even if things go perfectly for the airline industry, it could still be a struggle for American Airlines to survive, let alone thrive. We're talking about a company that's lugging around $41 billion in total debt and over $34 billion in net debt. Between its decision in 2018 to modernize its fleet before it was necessary and the pandemic, American Airlines will likely be constrained by its debt throughout the decade.
What's more, the airline industry requires hefty capital inputs to generate mediocre margins during even the best of times. With bare bones regional airlines willing to undercut majors like American Airlines on price, the future doesn't look promising.
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Sean Williams owns shares of AT&T. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Lastly, investors would be smart to keep their distance from American Airlines Group (NASDAQ: AAL) in April. While significantly increasing its share count and issuing more than $400 million in debt capital helped the company stave off bankruptcy in January, it's left AMC with few options moving forward. Zomedica initially received a boost in January after Tiger King star Carole Baskin was paid to namedrop the company in a YouTube video.
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American Airlines Group Lastly, investors would be smart to keep their distance from American Airlines Group (NASDAQ: AAL) in April. AMC Entertainment Since late January, movie theater chain AMC Entertainment (NYSE: AMC) has been a primary target of retail investors on Reddit's WallStreetBets chatroom. These predominantly young and novice investors have been focusing on companies with high levels of short interest and attempting to effect a short squeeze.
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American Airlines Group Lastly, investors would be smart to keep their distance from American Airlines Group (NASDAQ: AAL) in April. AMC Entertainment Since late January, movie theater chain AMC Entertainment (NYSE: AMC) has been a primary target of retail investors on Reddit's WallStreetBets chatroom. Short interest in the company has declined dramatically, and the company's high daily trading volume would make it easy for short-sellers to exit the stock, should they choose to do so.
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American Airlines Group Lastly, investors would be smart to keep their distance from American Airlines Group (NASDAQ: AAL) in April. If shareholders decline to allow the company to sell up to 500 million shares, AMC may not have enough cash to make it through 2022. On a bright note, the company ended February with approximately $280 million in cash after netting almost $190 million in a registered direct share offering.
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4582.0
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2021-04-07 00:00:00 UTC
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Canada First Nation group opposes De Beers waste dump on traditional land
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AAL
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https://www.nasdaq.com/articles/canada-first-nation-group-opposes-de-beers-waste-dump-on-traditional-land-2021-04-07
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nan
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nan
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Adds De Beers comment
TORONTO, April 7 (Reuters) - A First Nation community in Canada on Tuesday urged De Beers Group to cancel plans for a landfill on its traditional territory, citing threats to millennia-old cultural sites, which the mining company however said studies had not flagged.
De Beers, which is 85% owned by Anglo American AAL.L, is seeking approval from the Ontario regional government for a landfill for mine demolition waste in the James Bay wetlands area.
The Attawapiskat First Nation said the site was of critical cultural, spiritual and subsistence importance to the Kattawapiskak Cree people.
De Beers has applied to store 97,000 cubic meters of waste there from the Victor diamond mine, below the threshold that would trigger a comprehensive environmental assessment under Ontario law, the indigenous group said.
Global miners face mounting investor pressure to improve relations with indigenous communities after the destruction of the Juukan Gorge caves in Australia by Rio Tinto last year.
De Beers said the landfill would be within the existing mine footprint and that previous studies had not identified the site as being of cultural or spiritual significance.
"The identification and preservation of cultural and heritage resources is a fundamental part of the process we undertake before and during our mining activities, as well as in our closure planning," it said in a statement.
The landfill would store inert material, with hazardous waste removed for proper disposal, the company added.
Community council member Jack Linklater said it is appealing to Anglo and the government of Botswana, which holds the other 15% of De Beers, to halt the project. "We don't want another Juukan Gorge disaster in our traditional territory," he said.
The Victor mine, which produced about 600,000 carats per yearand ceased operations in 2019, is about 90 km (56 miles) west of the Attawapiskat community of 2,000 in northeastern Ontario.
De Beers in 2017 shelved plans to study an expansion after failing to get community support.
About 65% of the site infrastructure has been demolished and about 40% rehabilitated, De Beers said on its website.
(Reporting by Jeff Lewis Editing by Bernadette Baum and John Stonestreet)
((Jeff.Lewis@thomsonreuters.com; +1 647 200 7236))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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De Beers, which is 85% owned by Anglo American AAL.L, is seeking approval from the Ontario regional government for a landfill for mine demolition waste in the James Bay wetlands area. De Beers has applied to store 97,000 cubic meters of waste there from the Victor diamond mine, below the threshold that would trigger a comprehensive environmental assessment under Ontario law, the indigenous group said. Global miners face mounting investor pressure to improve relations with indigenous communities after the destruction of the Juukan Gorge caves in Australia by Rio Tinto last year.
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De Beers, which is 85% owned by Anglo American AAL.L, is seeking approval from the Ontario regional government for a landfill for mine demolition waste in the James Bay wetlands area. Adds De Beers comment TORONTO, April 7 (Reuters) - A First Nation community in Canada on Tuesday urged De Beers Group to cancel plans for a landfill on its traditional territory, citing threats to millennia-old cultural sites, which the mining company however said studies had not flagged. "We don't want another Juukan Gorge disaster in our traditional territory," he said.
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De Beers, which is 85% owned by Anglo American AAL.L, is seeking approval from the Ontario regional government for a landfill for mine demolition waste in the James Bay wetlands area. Adds De Beers comment TORONTO, April 7 (Reuters) - A First Nation community in Canada on Tuesday urged De Beers Group to cancel plans for a landfill on its traditional territory, citing threats to millennia-old cultural sites, which the mining company however said studies had not flagged. De Beers said the landfill would be within the existing mine footprint and that previous studies had not identified the site as being of cultural or spiritual significance.
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De Beers, which is 85% owned by Anglo American AAL.L, is seeking approval from the Ontario regional government for a landfill for mine demolition waste in the James Bay wetlands area. Adds De Beers comment TORONTO, April 7 (Reuters) - A First Nation community in Canada on Tuesday urged De Beers Group to cancel plans for a landfill on its traditional territory, citing threats to millennia-old cultural sites, which the mining company however said studies had not flagged. De Beers said the landfill would be within the existing mine footprint and that previous studies had not identified the site as being of cultural or spiritual significance.
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4583.0
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2021-04-06 00:00:00 UTC
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Software firm Canva valued at $15 bln after latest investment
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AAL
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https://www.nasdaq.com/articles/software-firm-canva-valued-at-%2415-bln-after-latest-investment-2021-04-06
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nan
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nan
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April 6 (Reuters) - Australian software firm Canva on Tuesday said the company's valuation had more than doubled to $15 billion following an investment of $71 million.
Sydney-based Canva, launched in 2013, offers an online design and publishing tool with templates for presentations, social media graphics and posters, among others.
Canva, which has more than 55 million monthly active users, said it achieved a 130% year-over-year rise in annual revenue, while remaining profitable.
Canva, which in June last year had said it was valued at $6 billion, counts American Airlines AAL.O, Intel INTC.O and PayPal PYPL.O among its customers, according to the company website.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Vinay Dwivedi)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Canva, which in June last year had said it was valued at $6 billion, counts American Airlines AAL.O, Intel INTC.O and PayPal PYPL.O among its customers, according to the company website. April 6 (Reuters) - Australian software firm Canva on Tuesday said the company's valuation had more than doubled to $15 billion following an investment of $71 million. Sydney-based Canva, launched in 2013, offers an online design and publishing tool with templates for presentations, social media graphics and posters, among others.
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Canva, which in June last year had said it was valued at $6 billion, counts American Airlines AAL.O, Intel INTC.O and PayPal PYPL.O among its customers, according to the company website. April 6 (Reuters) - Australian software firm Canva on Tuesday said the company's valuation had more than doubled to $15 billion following an investment of $71 million. Sydney-based Canva, launched in 2013, offers an online design and publishing tool with templates for presentations, social media graphics and posters, among others.
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Canva, which in June last year had said it was valued at $6 billion, counts American Airlines AAL.O, Intel INTC.O and PayPal PYPL.O among its customers, according to the company website. April 6 (Reuters) - Australian software firm Canva on Tuesday said the company's valuation had more than doubled to $15 billion following an investment of $71 million. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Vinay Dwivedi) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Canva, which in June last year had said it was valued at $6 billion, counts American Airlines AAL.O, Intel INTC.O and PayPal PYPL.O among its customers, according to the company website. April 6 (Reuters) - Australian software firm Canva on Tuesday said the company's valuation had more than doubled to $15 billion following an investment of $71 million. Sydney-based Canva, launched in 2013, offers an online design and publishing tool with templates for presentations, social media graphics and posters, among others.
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4584.0
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2021-04-06 00:00:00 UTC
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Canada First Nation group opposes De Beers waste dump on traditional territory
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AAL
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https://www.nasdaq.com/articles/canada-first-nation-group-opposes-de-beers-waste-dump-on-traditional-territory-2021-04-0
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nan
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nan
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Repeats to widen distribution, no change to content of story
TORONTO, April 6 (Reuters) - An isolated First Nation community in Canada's Ontario province on Tuesday said it opposes plans by Anglo American's AAL.L De Beers Group to build a new mine landfill on its traditional territory, citing threats to millenia-old cultural sites.
De Beers is seeking Ontario government approval for a landfill for mine demolition waste in the vulnerable James Bay wetlands area, in a place of critical cultural, spiritual and subsistence importance to the Kattawapiskak Cree people, the Attawapiskat First Nation said.
De Beers has applied to store 97,000 cubic meters of waste from the Victor diamond mine, below the threshold which would trigger a comprehensive environmental assessment under Ontario law, the indigenous group said.
Global miners face mounting investor pressure to improve relations with indigenous communities after the destruction of the Juukan Gorge caves in Australia by Rio Tinto last year.
De Beers did not immediately respond to a Reuters request for comment. The unit is 85% owned by Anglo and 15% owned by the government of Botswana.
"We don't want another Juukan Gorge disaster in our traditional territory," said local council member Jack Linklater in a release.
"We don't believe that Anglo American and the Republic of Botswana want to allow De Beers staff to create a giant mine landfill in our traditional territory."
The isolated Victor mine, which is in the closure phase, is about 90 km (55.9 miles) west of the Attawapiskat community of 2,000 in northeastern Ontario and is the province's first and only diamond mine.
De Beers in 2017 shelved plans to study an expansion after failing to get community support and the mine ceased operations altogether in 2019. It produced about 600,000 carats per year.
About 65% of the site infrastructure has been demolished with about 40% of the site rehabilitated, according to De Beers' website.
(Reporting by Jeff Lewis Editing by Bernadette Baum)
((Jeff.Lewis@thomsonreuters.com; +1 647 200 7236))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Repeats to widen distribution, no change to content of story TORONTO, April 6 (Reuters) - An isolated First Nation community in Canada's Ontario province on Tuesday said it opposes plans by Anglo American's AAL.L De Beers Group to build a new mine landfill on its traditional territory, citing threats to millenia-old cultural sites. De Beers is seeking Ontario government approval for a landfill for mine demolition waste in the vulnerable James Bay wetlands area, in a place of critical cultural, spiritual and subsistence importance to the Kattawapiskak Cree people, the Attawapiskat First Nation said. De Beers has applied to store 97,000 cubic meters of waste from the Victor diamond mine, below the threshold which would trigger a comprehensive environmental assessment under Ontario law, the indigenous group said.
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Repeats to widen distribution, no change to content of story TORONTO, April 6 (Reuters) - An isolated First Nation community in Canada's Ontario province on Tuesday said it opposes plans by Anglo American's AAL.L De Beers Group to build a new mine landfill on its traditional territory, citing threats to millenia-old cultural sites. De Beers is seeking Ontario government approval for a landfill for mine demolition waste in the vulnerable James Bay wetlands area, in a place of critical cultural, spiritual and subsistence importance to the Kattawapiskak Cree people, the Attawapiskat First Nation said. The isolated Victor mine, which is in the closure phase, is about 90 km (55.9 miles) west of the Attawapiskat community of 2,000 in northeastern Ontario and is the province's first and only diamond mine.
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Repeats to widen distribution, no change to content of story TORONTO, April 6 (Reuters) - An isolated First Nation community in Canada's Ontario province on Tuesday said it opposes plans by Anglo American's AAL.L De Beers Group to build a new mine landfill on its traditional territory, citing threats to millenia-old cultural sites. De Beers is seeking Ontario government approval for a landfill for mine demolition waste in the vulnerable James Bay wetlands area, in a place of critical cultural, spiritual and subsistence importance to the Kattawapiskak Cree people, the Attawapiskat First Nation said. "We don't believe that Anglo American and the Republic of Botswana want to allow De Beers staff to create a giant mine landfill in our traditional territory."
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Repeats to widen distribution, no change to content of story TORONTO, April 6 (Reuters) - An isolated First Nation community in Canada's Ontario province on Tuesday said it opposes plans by Anglo American's AAL.L De Beers Group to build a new mine landfill on its traditional territory, citing threats to millenia-old cultural sites. "We don't believe that Anglo American and the Republic of Botswana want to allow De Beers staff to create a giant mine landfill in our traditional territory." The isolated Victor mine, which is in the closure phase, is about 90 km (55.9 miles) west of the Attawapiskat community of 2,000 in northeastern Ontario and is the province's first and only diamond mine.
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4585.0
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2021-04-06 00:00:00 UTC
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United Airlines prepares to shake up white, male-dominated pilot population
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AAL
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https://www.nasdaq.com/articles/united-airlines-prepares-to-shake-up-white-male-dominated-pilot-population-2021-04-06
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nan
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nan
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By Tracy Rucinski
CHICAGO, April 6 (Reuters) - United Airlines UAL.O said on Tuesday it wants women and people of color to make up at least half of the 5,000 pilots it plans to train this decade at its new flight school, a push to diversify a career traditionally dominated by white men.
The announcement comes as U.S. airlines resume pilot hiring halted last year during the pandemic and as they find themselves in the crosshairs of politically charged issues involving race.
"We want to make sure that we are tapping into a big deep talent pool and not limiting ourselves to just one section of the pond," Chief Communications Officer Josh Earnest said on a Zoom call with journalists.
Chicago-based United joined Delta Air Lines DAL.N and American Airlines AAL.O on Monday in speaking out against voting restrictions following recent legislation in states like Georgia that activist groups say unfairly target Black and other racial minority voters.
United is the only major U.S. airline to own a flight school, the United Aviate Academy, which it bought last year just before vanishing demand because of the pandemic forced the industry to scale back its operations.
Now, as more Americans are vaccinated, airlines are ramping up again.
United plans to hire 10,000 pilots by 2030, half coming through its academy, and the rest from other airlines or the U.S. military.
Of United's roughly 12,000 pilots, about 7% are women and 13% people of color, the company said.
There are fewer than 100 black women pilots flying for major airlines, United pilot Carole Hopson said on the call, adding this situation had to change.
Becoming a pilot can be a long and costly pursuit and the company is offering $1.2 million in academy scholarships.
The airline's credit card partner, JPMorgan Chase, will fund another $1.2 million for women and people of color accepted to the academy, which expects to enroll 100 students this year.
United said it hopes the program gives it an advantage in recruiting and training pilots as the industry braces for a wave of retirements at the mandatory age of 65 and after thousands retired early during the pandemic.
(Reporting by Tracy Rucinski; Editing by Karishma Singh)
((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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Chicago-based United joined Delta Air Lines DAL.N and American Airlines AAL.O on Monday in speaking out against voting restrictions following recent legislation in states like Georgia that activist groups say unfairly target Black and other racial minority voters. By Tracy Rucinski CHICAGO, April 6 (Reuters) - United Airlines UAL.O said on Tuesday it wants women and people of color to make up at least half of the 5,000 pilots it plans to train this decade at its new flight school, a push to diversify a career traditionally dominated by white men. "We want to make sure that we are tapping into a big deep talent pool and not limiting ourselves to just one section of the pond," Chief Communications Officer Josh Earnest said on a Zoom call with journalists.
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Chicago-based United joined Delta Air Lines DAL.N and American Airlines AAL.O on Monday in speaking out against voting restrictions following recent legislation in states like Georgia that activist groups say unfairly target Black and other racial minority voters. By Tracy Rucinski CHICAGO, April 6 (Reuters) - United Airlines UAL.O said on Tuesday it wants women and people of color to make up at least half of the 5,000 pilots it plans to train this decade at its new flight school, a push to diversify a career traditionally dominated by white men. United plans to hire 10,000 pilots by 2030, half coming through its academy, and the rest from other airlines or the U.S. military.
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Chicago-based United joined Delta Air Lines DAL.N and American Airlines AAL.O on Monday in speaking out against voting restrictions following recent legislation in states like Georgia that activist groups say unfairly target Black and other racial minority voters. By Tracy Rucinski CHICAGO, April 6 (Reuters) - United Airlines UAL.O said on Tuesday it wants women and people of color to make up at least half of the 5,000 pilots it plans to train this decade at its new flight school, a push to diversify a career traditionally dominated by white men. United is the only major U.S. airline to own a flight school, the United Aviate Academy, which it bought last year just before vanishing demand because of the pandemic forced the industry to scale back its operations.
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Chicago-based United joined Delta Air Lines DAL.N and American Airlines AAL.O on Monday in speaking out against voting restrictions following recent legislation in states like Georgia that activist groups say unfairly target Black and other racial minority voters. By Tracy Rucinski CHICAGO, April 6 (Reuters) - United Airlines UAL.O said on Tuesday it wants women and people of color to make up at least half of the 5,000 pilots it plans to train this decade at its new flight school, a push to diversify a career traditionally dominated by white men. The announcement comes as U.S. airlines resume pilot hiring halted last year during the pandemic and as they find themselves in the crosshairs of politically charged issues involving race.
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4586.0
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2021-04-06 00:00:00 UTC
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Air Travel Demand And Southwest Order To Push Boeing Stock Higher
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AAL
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https://www.nasdaq.com/articles/air-travel-demand-and-southwest-order-to-push-boeing-stock-higher-2021-04-06
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nan
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nan
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[Updated 3/31/2021]
In January, Boeing (NYSE: BA) entered into a $2.5 billion agreement with the U.S. Department of Justice ending the two-year investigation on the 737 Max program. Per the agreement, Boeing is required to pay a $243 million penalty, $500 million compensation to the kin of people who lost their lives in MAX crashes, and $1.77 billion to airline customers. Notably, the company already has a $5.5 billion short-term liability related to customer concessions on its balance sheet. While the recent lawsuit by investors is a concern, the company’s ballooning debt is primarily from high inventory levels. Moreover, Southwest’s 100 plane order reinstates confidence in MAX after the FAA’s clearance. As air travel demand picks-up, the reduction of Boeing’s 400+ plane inventory is the key trigger for a sizable upside in the stock. Our interactive dashboard analysis highlights Boeing’s stock performance during the current crisis with that during the 2008 recession.
[Updated 3/11/2021]
The shares of Southwest Airlines (NYSE: LUV) have rallied 20% in the past 21-days reaching their pre-Covid level, propelled by the second round of payroll support by the U.S. government and an increase in passenger numbers at TSA checkpoints. Interestingly, Southwest is a prominent Boeing 737 MAX customer with a total of 380 aircraft to be delivered in the next couple of years. Despite the lifting of the FAA’s ban in November 2020, the shares of Boeing (NYSE: BA) remain around 30% below pre-Covid levels. While the FAA’s order requires design changes and revamp of pilot and crew training programs to safely fly again, the company’s ballooning debt due to high inventory levels is expected to ease with aircraft deliveries. Trefis compares the historical stock price trends between Boeing and its prominent MAX customers in an interactive dashboard analysis, BA Stock Has 50% Chance Of A Rise Over The Next Month After Rising 4.3% In The Last 5 Days.
Airline stocks have outperformed broader markets this year but Boeing has not
In a recently published travel outlook by Expedia, air travel is expected to boom later during the year with young population (Millennials and Gen Z) traveling the most. Over the past 21 days, Southwest Airlines, United Airlines, and American Airlines’ stocks have gained 20%, 27%, and 25%, respectively. On the contrary, Boeing stock has increased by 12%, 10%, and 4% over the twenty one-day, ten-day, and five-day period respectively. 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. Also, new aircraft demand will mostly be driven by older aircraft replacements, almost 56% of new deliveries, in the coming decade.
Boeing’s debt is due to high inventory levels
Boeing’s long-term debt soared from $10 billion in 2018 to $62 billion in 2020, due to piled-up 737 MAX inventories and capital raises to tackle any adverse pandemic scenario. The company’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 long-term debt is due to high inventory levels.
While the 737 MAX production is expected to resume later this year, the 450 planes in the warehouse are likely to meet near-term customer demand and generate cash flow. Also, Boeing reported just $7.5 billion of operating cash outflow (excluding the impact of an $11 billion increase in inventories) in 2020, which is significantly lower than the $55 billion drop in the stock’s market capitalization. Thus, the resumption of MAX production is the key trigger for a sizable upside in Boeing stock from current levels.
As the slump in travel demand continues to weigh on the aviation sector, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for Expeditors International vs. LGI Homes shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.
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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[Updated 3/31/2021] In January, Boeing (NYSE: BA) entered into a $2.5 billion agreement with the U.S. Department of Justice ending the two-year investigation on the 737 Max program. [Updated 3/11/2021] The shares of Southwest Airlines (NYSE: LUV) have rallied 20% in the past 21-days reaching their pre-Covid level, propelled by the second round of payroll support by the U.S. government and an increase in passenger numbers at TSA checkpoints. While the FAA’s order requires design changes and revamp of pilot and crew training programs to safely fly again, the company’s ballooning debt due to high inventory levels is expected to ease with aircraft deliveries.
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While the FAA’s order requires design changes and revamp of pilot and crew training programs to safely fly again, the company’s ballooning debt due to high inventory levels is expected to ease with aircraft deliveries. Trefis compares the historical stock price trends between Boeing and its prominent MAX customers in an interactive dashboard analysis, BA Stock Has 50% Chance Of A Rise Over The Next Month After Rising 4.3% In The Last 5 Days. Boeing’s debt is due to high inventory levels Boeing’s long-term debt soared from $10 billion in 2018 to $62 billion in 2020, due to piled-up 737 MAX inventories and capital raises to tackle any adverse pandemic scenario.
|
Trefis compares the historical stock price trends between Boeing and its prominent MAX customers in an interactive dashboard analysis, BA Stock Has 50% Chance Of A Rise Over The Next Month After Rising 4.3% In The Last 5 Days. Boeing’s debt is due to high inventory levels Boeing’s long-term debt soared from $10 billion in 2018 to $62 billion in 2020, due to piled-up 737 MAX inventories and capital raises to tackle any adverse pandemic scenario. Also, Boeing reported just $7.5 billion of operating cash outflow (excluding the impact of an $11 billion increase in inventories) in 2020, which is significantly lower than the $55 billion drop in the stock’s market capitalization.
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Interestingly, Southwest is a prominent Boeing 737 MAX customer with a total of 380 aircraft to be delivered in the next couple of years. Over the past 21 days, Southwest Airlines, United Airlines, and American Airlines’ stocks have gained 20%, 27%, and 25%, respectively. As the balance sheet holds $25 billion of cash and short-term investments, a major portion of the long-term debt is due to high inventory levels.
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4587.0
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2021-04-06 00:00:00 UTC
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Why American Airlines Group Inc. (NASDAQ:AAL) Could Be Worth Watching
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-group-inc.-nasdaq%3Aaal-could-be-worth-watching-2021-04-06
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nan
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nan
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Today we're going to take a look at the well-established American Airlines Group Inc. (NASDAQ:AAL). The company's stock led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine American Airlines Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
What is American Airlines Group worth?
Great news for investors – American Airlines Group is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $38.83, but it is currently trading at US$24.23 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because American Airlines Group’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What does the future of American Airlines Group look like?
NasdaqGS:AAL Earnings and Revenue Growth April 6th 2021
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. American Airlines Group's earnings over the next few years are expected to increase by 100%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since AAL is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on AAL for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy AAL. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.
So while earnings quality is important, it's equally important to consider the risks facing American Airlines Group at this point in time. Every company has risks, and we've spotted 4 warning signs for American Airlines Group (of which 3 are significant!) you should know about.
If you are no longer interested in American Airlines Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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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Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy AAL. Today we're going to take a look at the well-established American Airlines Group Inc. (NASDAQ:AAL). NasdaqGS:AAL Earnings and Revenue Growth April 6th 2021 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.
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Today we're going to take a look at the well-established American Airlines Group Inc. (NASDAQ:AAL). Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy AAL. NasdaqGS:AAL Earnings and Revenue Growth April 6th 2021 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.
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Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy AAL. Today we're going to take a look at the well-established American Airlines Group Inc. (NASDAQ:AAL). NasdaqGS:AAL Earnings and Revenue Growth April 6th 2021 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.
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Today we're going to take a look at the well-established American Airlines Group Inc. (NASDAQ:AAL). NasdaqGS:AAL Earnings and Revenue Growth April 6th 2021 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Since AAL is currently undervalued, it may be a great time to increase your holdings in the stock.
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4588.0
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2021-04-05 00:00:00 UTC
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Southwest recalls 209 pilots as travel demand recovers
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AAL
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https://www.nasdaq.com/articles/southwest-recalls-209-pilots-as-travel-demand-recovers-2021-04-05
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Adds details on other airlines
April 5 (Reuters) - Southwest Airlines LUV.N has recalled 209 pilots from a voluntary extended leave program to support its summer schedule, the company said on Monday, as airlines prepare for a recovery in demand as more Americans receive COVID-19 vaccines.
The pilots will return to active status on June 1 and will then complete all of the necessary requalification training requirements before they fly with passengers.
Among other major U.S. carriers, Delta Air Lines DAL.N and American Airlines AAL.O have also recalled pilots who were sidelined during the pandemic.
United Airlines UAL.O, which reached a deal with its union to keep pilots active throughout the downturn, said last week it was preparing to hire about 300 pilots as travel demand rebounds.
Low-cost airlines have also recalled pilots and are hiring again.
(Reporting by Tracy Rucinski; Editing by Leslie Adler and Howard Goller)
((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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Among other major U.S. carriers, Delta Air Lines DAL.N and American Airlines AAL.O have also recalled pilots who were sidelined during the pandemic. The pilots will return to active status on June 1 and will then complete all of the necessary requalification training requirements before they fly with passengers. (Reporting by Tracy Rucinski; Editing by Leslie Adler and Howard Goller) ((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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Among other major U.S. carriers, Delta Air Lines DAL.N and American Airlines AAL.O have also recalled pilots who were sidelined during the pandemic. Adds details on other airlines April 5 (Reuters) - Southwest Airlines LUV.N has recalled 209 pilots from a voluntary extended leave program to support its summer schedule, the company said on Monday, as airlines prepare for a recovery in demand as more Americans receive COVID-19 vaccines. United Airlines UAL.O, which reached a deal with its union to keep pilots active throughout the downturn, said last week it was preparing to hire about 300 pilots as travel demand rebounds.
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Among other major U.S. carriers, Delta Air Lines DAL.N and American Airlines AAL.O have also recalled pilots who were sidelined during the pandemic. Adds details on other airlines April 5 (Reuters) - Southwest Airlines LUV.N has recalled 209 pilots from a voluntary extended leave program to support its summer schedule, the company said on Monday, as airlines prepare for a recovery in demand as more Americans receive COVID-19 vaccines. United Airlines UAL.O, which reached a deal with its union to keep pilots active throughout the downturn, said last week it was preparing to hire about 300 pilots as travel demand rebounds.
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Among other major U.S. carriers, Delta Air Lines DAL.N and American Airlines AAL.O have also recalled pilots who were sidelined during the pandemic. Adds details on other airlines April 5 (Reuters) - Southwest Airlines LUV.N has recalled 209 pilots from a voluntary extended leave program to support its summer schedule, the company said on Monday, as airlines prepare for a recovery in demand as more Americans receive COVID-19 vaccines. The pilots will return to active status on June 1 and will then complete all of the necessary requalification training requirements before they fly with passengers.
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4589.0
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2021-04-05 00:00:00 UTC
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Google confirms ITA software glitch affecting websites of U.S. airlines
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AAL
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https://www.nasdaq.com/articles/google-confirms-ita-software-glitch-affecting-websites-of-u.s.-airlines-2021-04-05
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Adds Google's response
April 5 (Reuters) - Alphabet Inc's GOOGL.O Google on Monday confirmed that there was an issue with its ITA software, which powers ticketing and other services on the websites of many U.S. airlines.
Reports by users showed issues on Monday with the websites of Delta Air Lines DAL.N and American Airlines AAL.O, according to Downdetector.com.
People familiar with the matter also said there seemed to be an outage on ITA. United Airlines UAL.O also appeared to be impacted by the issue.
A Google spokesperson said the company was working to implement a fix.
(Reporting by Tracy Rucinski and Sanjana Shivdas in Bengaluru; Editing by Chris Reese and Anil D'Silva)
((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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Reports by users showed issues on Monday with the websites of Delta Air Lines DAL.N and American Airlines AAL.O, according to Downdetector.com. Adds Google's response April 5 (Reuters) - Alphabet Inc's GOOGL.O Google on Monday confirmed that there was an issue with its ITA software, which powers ticketing and other services on the websites of many U.S. airlines. (Reporting by Tracy Rucinski and Sanjana Shivdas in Bengaluru; Editing by Chris Reese and Anil D'Silva) ((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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Reports by users showed issues on Monday with the websites of Delta Air Lines DAL.N and American Airlines AAL.O, according to Downdetector.com. Adds Google's response April 5 (Reuters) - Alphabet Inc's GOOGL.O Google on Monday confirmed that there was an issue with its ITA software, which powers ticketing and other services on the websites of many U.S. airlines. (Reporting by Tracy Rucinski and Sanjana Shivdas in Bengaluru; Editing by Chris Reese and Anil D'Silva) ((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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Reports by users showed issues on Monday with the websites of Delta Air Lines DAL.N and American Airlines AAL.O, according to Downdetector.com. Adds Google's response April 5 (Reuters) - Alphabet Inc's GOOGL.O Google on Monday confirmed that there was an issue with its ITA software, which powers ticketing and other services on the websites of many U.S. airlines. (Reporting by Tracy Rucinski and Sanjana Shivdas in Bengaluru; Editing by Chris Reese and Anil D'Silva) ((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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Reports by users showed issues on Monday with the websites of Delta Air Lines DAL.N and American Airlines AAL.O, according to Downdetector.com. Adds Google's response April 5 (Reuters) - Alphabet Inc's GOOGL.O Google on Monday confirmed that there was an issue with its ITA software, which powers ticketing and other services on the websites of many U.S. airlines. People familiar with the matter also said there seemed to be an outage on ITA.
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4590.0
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2021-04-05 00:00:00 UTC
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Delta, American Airlines websites experiencing issues -Downdetector
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AAL
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https://www.nasdaq.com/articles/delta-american-airlines-websites-experiencing-issues-downdetector-2021-04-05
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nan
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April 5 (Reuters) - Reports by users showed issues on Monday with the websites of Delta Air Lines DAL.N and American Airlines AAL.O, according to Downdetector.com.
People familiar with the matter said there seemed to be an outage on ITA, a system run by Google that many U.S. airlines use for their bookings. United Airlines UAL.O also appeared to be impacted by the issue.
(Reporting by Tracy Rucinski Editing by Chris Reese)
((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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April 5 (Reuters) - Reports by users showed issues on Monday with the websites of Delta Air Lines DAL.N and American Airlines AAL.O, according to Downdetector.com. People familiar with the matter said there seemed to be an outage on ITA, a system run by Google that many U.S. airlines use for their bookings. (Reporting by Tracy Rucinski Editing by Chris Reese) ((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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April 5 (Reuters) - Reports by users showed issues on Monday with the websites of Delta Air Lines DAL.N and American Airlines AAL.O, according to Downdetector.com. People familiar with the matter said there seemed to be an outage on ITA, a system run by Google that many U.S. airlines use for their bookings. (Reporting by Tracy Rucinski Editing by Chris Reese) ((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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April 5 (Reuters) - Reports by users showed issues on Monday with the websites of Delta Air Lines DAL.N and American Airlines AAL.O, according to Downdetector.com. People familiar with the matter said there seemed to be an outage on ITA, a system run by Google that many U.S. airlines use for their bookings. (Reporting by Tracy Rucinski Editing by Chris Reese) ((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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April 5 (Reuters) - Reports by users showed issues on Monday with the websites of Delta Air Lines DAL.N and American Airlines AAL.O, according to Downdetector.com. People familiar with the matter said there seemed to be an outage on ITA, a system run by Google that many U.S. airlines use for their bookings. United Airlines UAL.O also appeared to be impacted by the issue.
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4591.0
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2021-04-05 00:00:00 UTC
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Why Southwest, JetBlue, and United Airlines Stocks Are Soaring This Morning
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AAL
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https://www.nasdaq.com/articles/why-southwest-jetblue-and-united-airlines-stocks-are-soaring-this-morning-2021-04-05
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What happened
Airline stocks are having a good Monday, with shares of Southwest Airlines (NYSE: LUV) and American Airlines (NASDAQ: AAL) both up 2.8% in 11:55 a.m. EDT trading and JetBlue (NASDAQ: JBLU) rising 4.6%.
It's not hard to figure out why. On Good Friday last week, when markets were closed, the U.S. Centers for Disease Control issued new guidance for Americans wanting to travel after receiving their COVID-19 vaccines -- and today is the first day investors got a chance to trade on the new information.
Image source: Getty Images.
So what
Citing "recent studies evaluating the real-world effects of vaccination," the CDC declared Friday that "fully vaccinated people can travel at low risk to themselves."
The CDC clarified that "a person is considered fully vaccinated two weeks after receiving the last recommended dose of vaccine," but noted that at that point, travelers no longer need to undergo "COVID-19 testing or post-travel self-quarantine" to travel. The CDC did, however, qualify that statement by saying travelers should continue "wearing a mask, avoiding crowds, socially distancing, and washing hands frequently."
That being said, the CDC's guidance appeared to refer primarily to domestic travel within the U.S.
The CDC's announcement was more heavily loaded with caveats regarding international travel. To wit:
For outbound international travel, the CDC will not require proof of a negative coronavirus test for vaccinated travelers boarding outbound flights -- but their destination country may.
After they fly back to the U.S. from abroad, the CDC will not require vaccinated travelers to self-quarantine, but the state or local jurisdiction at which they arrive may impose such a requirement.
Furthermore, even vaccinated travelers must show a negative COVID-19 test before boarding a flight back to the U.S. And three to five days after arriving back in the U.S., they must take another COVID-19 test.
Now what
Despite the caveats regarding international travel, on balance investors seem to be taking the CDC news as a positive development, and good news of a loosening of travel restrictions on domestic flights at least. The easier it becomes to travel anywhere, the more people are likely to travel, and the more revenues airlines stand to gain -- and the closer they can get to becoming profitable again.
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 February 24, 2021
Rich Smith has no position in any of the stocks mentioned. 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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What happened Airline stocks are having a good Monday, with shares of Southwest Airlines (NYSE: LUV) and American Airlines (NASDAQ: AAL) both up 2.8% in 11:55 a.m. EDT trading and JetBlue (NASDAQ: JBLU) rising 4.6%. On Good Friday last week, when markets were closed, the U.S. Centers for Disease Control issued new guidance for Americans wanting to travel after receiving their COVID-19 vaccines -- and today is the first day investors got a chance to trade on the new information. The CDC did, however, qualify that statement by saying travelers should continue "wearing a mask, avoiding crowds, socially distancing, and washing hands frequently."
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What happened Airline stocks are having a good Monday, with shares of Southwest Airlines (NYSE: LUV) and American Airlines (NASDAQ: AAL) both up 2.8% in 11:55 a.m. EDT trading and JetBlue (NASDAQ: JBLU) rising 4.6%. So what Citing "recent studies evaluating the real-world effects of vaccination," the CDC declared Friday that "fully vaccinated people can travel at low risk to themselves." To wit: For outbound international travel, the CDC will not require proof of a negative coronavirus test for vaccinated travelers boarding outbound flights -- but their destination country may.
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What happened Airline stocks are having a good Monday, with shares of Southwest Airlines (NYSE: LUV) and American Airlines (NASDAQ: AAL) both up 2.8% in 11:55 a.m. EDT trading and JetBlue (NASDAQ: JBLU) rising 4.6%. The CDC clarified that "a person is considered fully vaccinated two weeks after receiving the last recommended dose of vaccine," but noted that at that point, travelers no longer need to undergo "COVID-19 testing or post-travel self-quarantine" to travel. To wit: For outbound international travel, the CDC will not require proof of a negative coronavirus test for vaccinated travelers boarding outbound flights -- but their destination country may.
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What happened Airline stocks are having a good Monday, with shares of Southwest Airlines (NYSE: LUV) and American Airlines (NASDAQ: AAL) both up 2.8% in 11:55 a.m. EDT trading and JetBlue (NASDAQ: JBLU) rising 4.6%. The CDC clarified that "a person is considered fully vaccinated two weeks after receiving the last recommended dose of vaccine," but noted that at that point, travelers no longer need to undergo "COVID-19 testing or post-travel self-quarantine" to travel. To wit: For outbound international travel, the CDC will not require proof of a negative coronavirus test for vaccinated travelers boarding outbound flights -- but their destination country may.
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4592.0
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2021-04-02 00:00:00 UTC
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American Airlines Stock May Lose More Altitude
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AAL
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https://www.nasdaq.com/articles/american-airlines-stock-may-lose-more-altitude-2021-04-02
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After reaching a high of $26 in mid-March, American Airlines Group (NASDAQ:AAL) stock has lost some altitude. It closed yesterday at $23.86.
Source: GagliardiPhotography / Shutterstock.com
But the shares have still gained 51% in 2021.
Many other airline stocks, including Southwest Airlines (NYSE:LUV), United Airlines Holdings (NASDAQ:UAL) and Delta Air Lines (NYSE:DAL), have also rallied this year. In fact, the major airline equities’ charts all look nearly identical!
So all in all, there has been a major rotation into the space, causing other sectors, especially tech, to sink. The airline stocks, of course, have been boosted by the re-opening trade.
But is AAL stock a good choice right now for investors? Or is it better to wait before taking a positive position in the name?
Let’s take a look.
The Macro Environment
The outlook of air travel is definitely promising right now. With the aggressive rollout of the vaccines for the novel coronavirus from companies like Pfizer (NYSE:PFE), Moderna (NASDAQ:MRNA) and Johnson & Johnson (NYSE:JNJ), it does look like the U.S. will get back to normal soon.
7 Cheap Stocks with Growing Tailwinds
In the meantime, there is considerable pent-up demand for travel. Keep in mind that Americans are already traveling more. According to the latest figures, during a recent week, domestic daily air traffic averaged 1.2 million per day. That is the highest level since the beginning of the pandemic.
What’s more, Congress recently approved $1.9 trillion of stimulus for the U.S. economy. That spending should also promote strong demand for travel in the coming months.
The Risks
The pandemic triggered a near-death experience for American Airlines. Without the government’s support, the company may have gone bust and the owners of AAL stock would have lost most of their investments.
But the pandemic had some silver linings for the airlines. Its operations have become much more streamlined because of the heavy cost cutting and efficiency efforts that it undertook. So as its revenues start to climb, it should benefit from considerable operating leverage.
Yet AAL stock still faces some risks as well. First of all, American has increased its debt load to a hefty $50 billion, and its annual interest costs are $600 million, so interest payments will weigh on its bottom line.
Next, the company’s international business may lag because of the slower rollouts of vaccines in other countries. The same factor could keep a lid on business travel. Moreover, businesses have become accustomed to holding meetings on videoconferencing platforms like Zoom (NASDAQ:ZM).
Finally, energy prices – which are a big part of airlines’ costs — may be a wild card. Oil prices have surged lately, and they may continue to do so as the economy rebounds and supplies remain fairly tight.
The Bottom Line on AAL Stock
AAL stock is not too far off from its pre-pandemic levels. Thus, investors may already have baked in much of the airlines’ positive news.
Wall Street analysts believe that the stock’s valuation is high. Their average price target is about 25% below the shares’ current price
I do think the reopening of the U.S. economy will continue to be beneficial for the airline industry. But it’s probably best for investors to consider buying the shares of carriers that will get the biggest impact from the reopening because of their high percentage of domestic and leisure traffic .
It’s also a good idea to buy the shares of the airlines that have the strongest balance sheets. in the sector. Based on these criteria, airlines like Southwest and Allegiant Travel Company (NASDAQ:ALGT) are more attractive than American.
On the date of publication, Tom Taulli did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Tom Taulli (@ttaulli) is the author of various books on investing and technology, including Artificial Intelligence Basics, High-Profit IPO Strategies and All About Short Selling. He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s.
The post American Airlines Stock May Lose More Altitude appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips After reaching a high of $26 in mid-March, American Airlines Group (NASDAQ:AAL) stock has lost some altitude. But is AAL stock a good choice right now for investors? Without the government’s support, the company may have gone bust and the owners of AAL stock would have lost most of their investments.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips After reaching a high of $26 in mid-March, American Airlines Group (NASDAQ:AAL) stock has lost some altitude. The Bottom Line on AAL Stock AAL stock is not too far off from its pre-pandemic levels. But is AAL stock a good choice right now for investors?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips After reaching a high of $26 in mid-March, American Airlines Group (NASDAQ:AAL) stock has lost some altitude. The Bottom Line on AAL Stock AAL stock is not too far off from its pre-pandemic levels. But is AAL stock a good choice right now for investors?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips After reaching a high of $26 in mid-March, American Airlines Group (NASDAQ:AAL) stock has lost some altitude. The Bottom Line on AAL Stock AAL stock is not too far off from its pre-pandemic levels. But is AAL stock a good choice right now for investors?
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4593.0
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2021-04-02 00:00:00 UTC
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Why American Airlines Gained Altitude in March
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-gained-altitude-in-march-2021-04-02
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What happened
Shares of American Airlines Group (NASDAQ: AAL) gained 14.1% in March, according to data provided by S&P Global Market Intelligence, as the market responded to clear signals by the airline that the worst of the pandemic is now behind it.
So what
Airlines were hit hard in 2020, and American was no exception. The pandemic caused demand for air travel to decline significantly, forcing carriers to scramble to raise money and avoid running into liquidity issues.
Image source: American Airlines.
The industry, and the stocks, have been on an upswing in 2021 as optimism builds that vaccines will unleash a lot of pent-up demand for travel. American did its part, making moves in March that clearly indicate it is in recovery mode.
The airline on March 8 said it was tapping private debt markets to raise money to pay down a loan issued by the U.S. Treasury last year. That loan, which was authorized under the CARES Act, was designed to get the industry through the worst of the pandemic, and repaying it is an important step in American's effort to move on.
Later in the month, American said it intends to have most of its fleet airborne again in the coming months, responding to growing post-pandemic demand. Airlines grounded significant numbers of jets in 2020, but American in a regulatory filing said, "the company has experienced recent strength in domestic and short-haul international bookings."
Now what
Investors have good reason to be excited. A year ago at this time the discussion was centered around whether American would end up in bankruptcy. Now, we're talking about surging demand and excitement.
The worst clearly seems to be over, but some amount of caution is still required of investors. With stocks surging in 2021, some airlines are now valued higher now than they were pre-pandemic. Given the continuing threat posed by COVID-19, and fears that international and business travel could take years to fully recover, it's possible the stocks have now gotten ahead of the recovery.
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 February 24, 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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What happened Shares of American Airlines Group (NASDAQ: AAL) gained 14.1% in March, according to data provided by S&P Global Market Intelligence, as the market responded to clear signals by the airline that the worst of the pandemic is now behind it. The pandemic caused demand for air travel to decline significantly, forcing carriers to scramble to raise money and avoid running into liquidity issues. That loan, which was authorized under the CARES Act, was designed to get the industry through the worst of the pandemic, and repaying it is an important step in American's effort to move on.
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What happened Shares of American Airlines Group (NASDAQ: AAL) gained 14.1% in March, according to data provided by S&P Global Market Intelligence, as the market responded to clear signals by the airline that the worst of the pandemic is now behind it. The airline on March 8 said it was tapping private debt markets to raise money to pay down a loan issued by the U.S. Treasury last year. * 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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What happened Shares of American Airlines Group (NASDAQ: AAL) gained 14.1% in March, according to data provided by S&P Global Market Intelligence, as the market responded to clear signals by the airline that the worst of the pandemic is now behind it. 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. * 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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What happened Shares of American Airlines Group (NASDAQ: AAL) gained 14.1% in March, according to data provided by S&P Global Market Intelligence, as the market responded to clear signals by the airline that the worst of the pandemic is now behind it. The airline on March 8 said it was tapping private debt markets to raise money to pay down a loan issued by the U.S. Treasury last year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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4594.0
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2021-04-02 00:00:00 UTC
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U.S. CDC: Vaccinated people can resume travel at 'low risk'
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AAL
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https://www.nasdaq.com/articles/u.s.-cdc%3A-vaccinated-people-can-resume-travel-at-low-risk-2021-04-02
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By David Shepardson
WASHINGTON, April 2 (Reuters) - The U.S. Centers for Disease Control and Prevention on Friday said fully vaccinated people can safely travel at "low risk" after the agency had held off for weeks on revising guidance that discouraged all non-essential trips.
The announcement lifting the agency's guidance that all Americans should avoid non-essential travel should be a shot in the arm for a U.S. travel industry still significantly struggling since the COVID-19 crisis began in early 2020. The new CDC guidance specifically greenlights vaccinated grandparents getting on airplanes to see grandchildren.
A group representing major U.S. airlines including American Airlines, Delta Air lines DAL.N, United Airlines UAL.O Southwest Airlines LUV.N and other trade groups on March 22 had urged the CDC to immediately update its guidance to say "vaccinated individuals can travel safely."
The new guidance will also say fully vaccinated people do not need to get a COVID-19 test before or after travel and do not need to self-quarantine after travel.
The CDC said grandparents that have been fully vaccinated can fly to visit grandkids without getting a COVID-19 test or self-quarantining as long as they follow CDC advice for traveling safely.
But the administration is not lifting restrictions that bar most-non U.S. citizens from the United States who have recently been in China, Brazil, South Africa and most of Europe. It is also keeping requirements that nearly all international U.S. air visitors getting a negative COVID-19 test before traveling to the United States.
The CDC did not revise guidance for non-vaccinated people.
"Vaccines can help us return to the things we love about life, so we encourage every American to get vaccinated as soon as they have the opportunity," CDC director Rochelle Walensky said in a statement
The CDC's new guidance says fully vaccinated people do not need COVID-19 tests before international travel unless it is required by the international destination and vaccinated people returning from foreign travel do not need to self-quarantine after returning to the United States, unless required by state or local authorities.
The CDC had repeatedly declined in recent weeks to change the guidance and repeated it was still discouraging all non-essential travel because of a concern about new variants.
Many Americans have not been heeding the CDC's advice. The Transportation Security Administration screened 1.56 million people at U.S. airports, just below Sunday's 1.57 million, which was the highest daily total since March 2020. The last time the number of airport passengers screened was below 1 million was March 10.
The Biden administration has taken steps to reduce international travel and mandated masks in nearly all forms of public transit. The administration is not eliminating any mask rules.
(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.
|
By David Shepardson WASHINGTON, April 2 (Reuters) - The U.S. Centers for Disease Control and Prevention on Friday said fully vaccinated people can safely travel at "low risk" after the agency had held off for weeks on revising guidance that discouraged all non-essential trips. But the administration is not lifting restrictions that bar most-non U.S. citizens from the United States who have recently been in China, Brazil, South Africa and most of Europe. The Biden administration has taken steps to reduce international travel and mandated masks in nearly all forms of public transit.
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By David Shepardson WASHINGTON, April 2 (Reuters) - The U.S. Centers for Disease Control and Prevention on Friday said fully vaccinated people can safely travel at "low risk" after the agency had held off for weeks on revising guidance that discouraged all non-essential trips. A group representing major U.S. airlines including American Airlines, Delta Air lines DAL.N, United Airlines UAL.O Southwest Airlines LUV.N and other trade groups on March 22 had urged the CDC to immediately update its guidance to say "vaccinated individuals can travel safely." "Vaccines can help us return to the things we love about life, so we encourage every American to get vaccinated as soon as they have the opportunity," CDC director Rochelle Walensky said in a statement The CDC's new guidance says fully vaccinated people do not need COVID-19 tests before international travel unless it is required by the international destination and vaccinated people returning from foreign travel do not need to self-quarantine after returning to the United States, unless required by state or local authorities.
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A group representing major U.S. airlines including American Airlines, Delta Air lines DAL.N, United Airlines UAL.O Southwest Airlines LUV.N and other trade groups on March 22 had urged the CDC to immediately update its guidance to say "vaccinated individuals can travel safely." The new guidance will also say fully vaccinated people do not need to get a COVID-19 test before or after travel and do not need to self-quarantine after travel. "Vaccines can help us return to the things we love about life, so we encourage every American to get vaccinated as soon as they have the opportunity," CDC director Rochelle Walensky said in a statement The CDC's new guidance says fully vaccinated people do not need COVID-19 tests before international travel unless it is required by the international destination and vaccinated people returning from foreign travel do not need to self-quarantine after returning to the United States, unless required by state or local authorities.
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By David Shepardson WASHINGTON, April 2 (Reuters) - The U.S. Centers for Disease Control and Prevention on Friday said fully vaccinated people can safely travel at "low risk" after the agency had held off for weeks on revising guidance that discouraged all non-essential trips. The new guidance will also say fully vaccinated people do not need to get a COVID-19 test before or after travel and do not need to self-quarantine after travel. The CDC said grandparents that have been fully vaccinated can fly to visit grandkids without getting a COVID-19 test or self-quarantining as long as they follow CDC advice for traveling safely.
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4595.0
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2021-04-02 00:00:00 UTC
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U.S. CDC: Vaccinated people can resume travel at 'low risk'
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AAL
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https://www.nasdaq.com/articles/u.s.-cdc%3A-vaccinated-people-can-resume-travel-at-low-risk-2021-04-02-0
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nan
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nan
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By David Shepardson
WASHINGTON, April 2 (Reuters) - The U.S. Centers for Disease Control and Prevention on Friday said fully vaccinated people can safely travel at "low risk", after the agency had held off for weeks on revising guidance that discouraged all non-essential trips.
The announcement lifting the agency's guidance that all Americans should avoid non-essential travel should be a shot in the arm for a U.S. travel industry still struggling since the COVID-19 crisis began in early 2020. The new CDC guidance specifically greenlights vaccinated grandparents getting on airplanes to see grandchildren.
A group representing major U.S. airlines including American Airlines, Delta Air lines DAL.N, United Airlines UAL.O Southwest Airlines LUV.N and other trade groups had urged the CDC on March 22 to immediately update its guidance to say "vaccinated individuals can travel safely." Air travel still remains down 43% from pre-COVID levels and business and international travel remain even harder hit.
Roger Dow, CEO of the U.S. Travel Association, said the "new travel guidance is a major step in the right direction that is supported by the science and will take the brakes off the industry that has been hardest hit by the fallout of COVID by far."
The new guidance also says fully vaccinated people do not need to get a COVID-19 test before or after travel and do not need to self-quarantine after travel.
"Vaccines can help us return to the things we love about life, so we encourage every American to get vaccinated as soon as they have the opportunity," CDC director Rochelle Walensky said in a statement.
The CDC said grandparents who have been fully vaccinated can fly to visit grandkids without getting a COVID-19 test or self-quarantining as long as they follow CDC advice for traveling safely.
But the administration is not lifting restrictions that bar most-non U.S. citizens from the United States who have recently been in China, Brazil, South Africa and most of Europe. It is also keeping requirements that nearly all international U.S. air visitors getting a negative COVID-19 test before traveling to the United States.
A U.S. official briefed on the matter said the Biden administration is beginning to have conversations about how and when it might eventually lift those travel restrictions but no change is imminent. The U.S. also still maintains restrictions at the Canadian and Mexican borders that bar non-essential visitors.
The agency still "recommends delaying travel until you are fully vaccinated, because travel increases your chance of getting and spreading COVID-19."
In a sign of some remaining concerns about travel, Walensky said that despite the change in guidance the CDC was still not recommending fully vaccinated people travel "at this time due to the rising number of cases".
The CDC's new guidance says fully vaccinated people do not need COVID-19 tests before international travel unless it is required by the international destination and vaccinated people returning from foreign travel do not need to self-quarantine after returning to the United States, unless required by state or local authorities.
The CDC had repeatedly declined in recent weeks to change the guidance and repeated it was still discouraging all non-essential travel because of a concern about new variants.
Many Americans have not been heeding the CDC's advice. The Transportation Security Administration screened 1.56 million people at U.S. airports, just below Sunday's 1.57 million, which was the highest daily total since March 2020. The last time the number of airport passengers screened was below 1 million was March 10.
The Biden administration has taken steps to reduce international travel and mandated masks in nearly all forms of public transit. The administration is not eliminating any mask rules.
(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.
|
By David Shepardson WASHINGTON, April 2 (Reuters) - The U.S. Centers for Disease Control and Prevention on Friday said fully vaccinated people can safely travel at "low risk", after the agency had held off for weeks on revising guidance that discouraged all non-essential trips. But the administration is not lifting restrictions that bar most-non U.S. citizens from the United States who have recently been in China, Brazil, South Africa and most of Europe. A U.S. official briefed on the matter said the Biden administration is beginning to have conversations about how and when it might eventually lift those travel restrictions but no change is imminent.
|
A group representing major U.S. airlines including American Airlines, Delta Air lines DAL.N, United Airlines UAL.O Southwest Airlines LUV.N and other trade groups had urged the CDC on March 22 to immediately update its guidance to say "vaccinated individuals can travel safely." In a sign of some remaining concerns about travel, Walensky said that despite the change in guidance the CDC was still not recommending fully vaccinated people travel "at this time due to the rising number of cases". The CDC's new guidance says fully vaccinated people do not need COVID-19 tests before international travel unless it is required by the international destination and vaccinated people returning from foreign travel do not need to self-quarantine after returning to the United States, unless required by state or local authorities.
|
The new guidance also says fully vaccinated people do not need to get a COVID-19 test before or after travel and do not need to self-quarantine after travel. In a sign of some remaining concerns about travel, Walensky said that despite the change in guidance the CDC was still not recommending fully vaccinated people travel "at this time due to the rising number of cases". The CDC's new guidance says fully vaccinated people do not need COVID-19 tests before international travel unless it is required by the international destination and vaccinated people returning from foreign travel do not need to self-quarantine after returning to the United States, unless required by state or local authorities.
|
The new guidance also says fully vaccinated people do not need to get a COVID-19 test before or after travel and do not need to self-quarantine after travel. The CDC said grandparents who have been fully vaccinated can fly to visit grandkids without getting a COVID-19 test or self-quarantining as long as they follow CDC advice for traveling safely. In a sign of some remaining concerns about travel, Walensky said that despite the change in guidance the CDC was still not recommending fully vaccinated people travel "at this time due to the rising number of cases".
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4596.0
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2021-04-01 00:00:00 UTC
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Texas threatens to become next flash point on voting rules
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AAL
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https://www.nasdaq.com/articles/texas-threatens-to-become-next-flash-point-on-voting-rules-2021-04-01
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nan
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nan
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By David Shepardson, Joseph Ax and Tracy Rucinski
WASHINGTON, April 1 (Reuters) - Texas appeared on Thursday to become the next flash point on politically charged issues in Corporate America after legislation passed by the state Senate to limit voting access prompted a rebuke from American Airlines AAL.O.
"We are strongly opposed to this bill and others like it," Fort Worth, Texas-based American said in a statement.
The legislation, which is now set to go before the Texas House of Representatives, would eliminate drive-through voting, limit polling site hours and give partisan poll watchers more autonomy.
Southwest Airlines LUV.N, also based in Texas, declined to say if it opposed the legislation but said: "We believe every voter should have a fair opportunity to let their voice be heard. This right is essential to our nation’s success."
The Texas effort drew sharp criticism from voting rights advocates and Democrats in the state, who argue that the legislation would make it more difficult for Texans, particularly those of color, to cast ballots.
The state already has some of the most stringent voting laws in the country, according to election experts. A state House of Representatives committee on Thursday was holding a hearing on a companion bill that would impose other voting restrictions.
Texas is one of several states, including Georgia, Florida, Arizona and Iowa, where Republican lawmakers have pursued new voting limits after former President Donald Trump falsely blamed his November loss on widespread voter fraud despite no evidence.
Republican lawmakers say the law is needed to ensure public confidence in election integrity.
The comments by American and Southwest came after Atlanta-based Delta Air Lines DAL.N and Coca-Cola KO.N on Wednesday joined a growing number of companies that challenged the state of Georgia's new voting restrictions.
Delta CEO Ed Bastian blasted the law on Wednesday in a reversal from an initial statement last week that sparked a popular backlash.
But his new stance drew condemnation from Georgia's Republican Governor Brian Kemp and many Republicans, including Senator Marco Rubio who questioned why Delta criticized Georgia but not China.
"Far too many multinational corporations are too eager to make their voices heard on the woke issues of the day in the United States, but remain stunningly silent, or in Delta’s case, complicit, in real, ongoing atrocities in countries like China." Rubio wrote.
Delta did not immediately comment on Rubio's letter.
The Georgia House late Wednesday voted to repeal a jet fuel sales tax break that Delta uses but the state Senate did not act on it before the legislative session adjourned.
Kemp told Fox Business he thought the tax issue was "moot" now that the legislature had adjourned.
(Reporting by David Shepardson, Joseph Ax and Tracy Rucinski; Editing by Leslie Adler and Stephen Coates)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By David Shepardson, Joseph Ax and Tracy Rucinski WASHINGTON, April 1 (Reuters) - Texas appeared on Thursday to become the next flash point on politically charged issues in Corporate America after legislation passed by the state Senate to limit voting access prompted a rebuke from American Airlines AAL.O. Texas is one of several states, including Georgia, Florida, Arizona and Iowa, where Republican lawmakers have pursued new voting limits after former President Donald Trump falsely blamed his November loss on widespread voter fraud despite no evidence. "Far too many multinational corporations are too eager to make their voices heard on the woke issues of the day in the United States, but remain stunningly silent, or in Delta’s case, complicit, in real, ongoing atrocities in countries like China."
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By David Shepardson, Joseph Ax and Tracy Rucinski WASHINGTON, April 1 (Reuters) - Texas appeared on Thursday to become the next flash point on politically charged issues in Corporate America after legislation passed by the state Senate to limit voting access prompted a rebuke from American Airlines AAL.O. But his new stance drew condemnation from Georgia's Republican Governor Brian Kemp and many Republicans, including Senator Marco Rubio who questioned why Delta criticized Georgia but not China. (Reporting by David Shepardson, Joseph Ax and Tracy Rucinski; Editing by Leslie Adler and Stephen Coates) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson, Joseph Ax and Tracy Rucinski WASHINGTON, April 1 (Reuters) - Texas appeared on Thursday to become the next flash point on politically charged issues in Corporate America after legislation passed by the state Senate to limit voting access prompted a rebuke from American Airlines AAL.O. But his new stance drew condemnation from Georgia's Republican Governor Brian Kemp and many Republicans, including Senator Marco Rubio who questioned why Delta criticized Georgia but not China. The Georgia House late Wednesday voted to repeal a jet fuel sales tax break that Delta uses but the state Senate did not act on it before the legislative session adjourned.
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By David Shepardson, Joseph Ax and Tracy Rucinski WASHINGTON, April 1 (Reuters) - Texas appeared on Thursday to become the next flash point on politically charged issues in Corporate America after legislation passed by the state Senate to limit voting access prompted a rebuke from American Airlines AAL.O. Republican lawmakers say the law is needed to ensure public confidence in election integrity. But his new stance drew condemnation from Georgia's Republican Governor Brian Kemp and many Republicans, including Senator Marco Rubio who questioned why Delta criticized Georgia but not China.
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4597.0
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2021-04-01 00:00:00 UTC
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Expect American Airlines Stock to Take Off by Summer as Bookings Soar
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AAL
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https://www.nasdaq.com/articles/expect-american-airlines-stock-to-take-off-by-summer-as-bookings-soar-2021-04-01
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines (NASDAQ:AAL) announced on March 29 that its recent seven-day moving average of its net bookings was an amazing 90% of the level in 2019. This is fantastic news for the company and implies that people are returning to flying in droves. Moreover, it bodes extremely well for AAL stock, and I now expect it will do extremely well by the end of the summer.
AAL) airplane waiting on the tarmac. Represents airline stocks." width="300" height="169">
Source: GagliardiPhotography / Shutterstock.com
In fact, AAL stock is already up over 50% year-to-date, and, unbelievably, it is up over 95% in the past year. Who would have thought this a year ago? Only contrarian investors would have.
This makes all the airline stocks naysayers look very bad. Chief among them is Warren Buffett, who made an extremely bad move by selling all of Berkshire Hathaway’s (NYSE:BRK-A, NYSE:BRK-B) airline stocks last May. I wrote about this earlier this month, including his unwillingness to admit that his move was a mistake.
Analysts Are Warming Up
Some are concerned about the travel trends in Europe, which seem to be quite different than in the U.S. A U.K. minister actually recommended that people not book their summer vacations yet. One analyst at Goodbody said that there are growing fears that a second summer of travel will be lost.
Contrast that with the fact that American Airlines recently recalled 2,000 furloughed airline pilots, as have other airlines, according to the Financial Times. In fact, according to the article, some travel execs in Europe are worried if the U.S. opens up and Europe stays relatively closed as it is now, that that would bring a huge inflow of traffic into the U.S. — travel Europe would rather have.
The 8 Biggest Growth Stocks of the First Quarter
In fact, American Airlines recently said it expects to fly most of its fleet in the coming months. This is due to strong domestic and short-haul international bookings. It cites the fact that Covid-19 infections and hospitalizations have fallen.
More people now have received vaccinations, which is helping lower the infection rate. To aid in this effort, American has begun providing employees the single-shot Johnson and Johnson (NYSE:JNJ) vaccine at O’Hare airport.
This year, analysts expect American Airlines revenue will rise 50.7% to $26.08 billion on average, up from $17.3 billion last year. Next year they see even sales at $36.85 billion, or 41% higher over this year. This puts AAL stock, now with a market capitalization of about $15 billion, at just 40% of 2022 forecast sales.
However, analysts still are not projecting net income profits for American Airlines for some time. For example, earnings per share (EPS) of just 17 cents are forecast for 2022. Significant earnings are not foreseen before 2023 when they project $2.27 in EPS.
What to Do With AAL Stock
This puts AAL stock on a forward price-to-earnings (P/E) of 7.4 times. However, if we discount the earnings from 2023, three years in the future by 15% each year, the adjusted EPS is 65.75% of that figure. This works out to $1.49 per share and makes the adjusted price-to-earnings ratio higher at 12 times earnings.
Even at this higher adjusted P/E multiple, AAL stock does not appear to be too expensive. In fact, the stock could easily rise another 50% from here and it would not seem expensive.
I suspect that will happen over this summer as the airline experiences more bookings, higher revenue and better financial performance. I believe that will also lead analysts to upgrade their view of AAL stock. Granted, many of them will be focused on the airlines that are achieving cash flow profitability much sooner.
However, keep in mind that AAL stock is at the bottom of many analysts’ lists to recommend. For example, TipRanks.com indicates that 13 analysts have set their average target price at $18.89 over the last three months. This represents a potential downside risk of about 21% from the current price.
Therefore, patient investors will take advantage of any weakness in AAL stock over the next several months. That will likely turn out to be a good investment over the long run.
On the date of publication, Mark R. Hake did not hold a long or short position in any of the securities in this article.
Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here.
The post Expect American Airlines Stock to Take Off by Summer as Bookings Soar appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) announced on March 29 that its recent seven-day moving average of its net bookings was an amazing 90% of the level in 2019. Moreover, it bodes extremely well for AAL stock, and I now expect it will do extremely well by the end of the summer. AAL) airplane waiting on the tarmac.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) announced on March 29 that its recent seven-day moving average of its net bookings was an amazing 90% of the level in 2019. Moreover, it bodes extremely well for AAL stock, and I now expect it will do extremely well by the end of the summer. AAL) airplane waiting on the tarmac.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) announced on March 29 that its recent seven-day moving average of its net bookings was an amazing 90% of the level in 2019. What to Do With AAL Stock This puts AAL stock on a forward price-to-earnings (P/E) of 7.4 times. Moreover, it bodes extremely well for AAL stock, and I now expect it will do extremely well by the end of the summer.
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What to Do With AAL Stock This puts AAL stock on a forward price-to-earnings (P/E) of 7.4 times. InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) announced on March 29 that its recent seven-day moving average of its net bookings was an amazing 90% of the level in 2019. Moreover, it bodes extremely well for AAL stock, and I now expect it will do extremely well by the end of the summer.
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4598.0
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2021-04-01 00:00:00 UTC
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London stocks rise on optimism over swift economic recovery
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AAL
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https://www.nasdaq.com/articles/london-stocks-rise-on-optimism-over-swift-economic-recovery-2021-04-01
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nan
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nan
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By Shivani Kumaresan
April 1 (Reuters) - British shares tracked gains in Asian peers on Thursday, lifted by hopes of a swifter economic rebound this year, while Quilter rose after agreeing to sell its international business to Utmost Group.
The blue-chip FTSE 100 index .FTSE rose 0.5%, with industrials and bank stocks, mainly BAE Systems Plc BAES.L, Relx Plc REL.L, Prudential Financial Inc PRU.L and Barclays Plc BARC.L, being the biggest gainers.
Mining stocks, including Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L, were also among the biggest boosts on the index.
"Despite the optimism surrounding the rollout of COVID-19 vaccines in a select group of countries, the virus continues to wreak havoc elsewhere," Jeffrey Halley, senior market analyst, OANDA wrote in a note.
"The widening restrictions globally should be bullish for technology at the margins, but will most keenly be felt in energy markets."
Global equities crept higher on hopes of a stronger U.S. economy, as investors parsed details of a $2 trillion government spending plan and hoped for strong jobs data later in the week. MKTS/GLOB
The FTSE 100 has risen 4.6% so far this year, supported by speedy vaccine rollouts and a raft of economic stimulus. But a recent spike in virus cases across Europe has made investors cautious.
The domestically focused mid-cap FTSE 250 index .FTMC climbed 0.7%, led by industrials and consumer discretionary stocks.
Quilter QLT.L rose 3.7%, after it agreed to sell its international business to specialist life assurance company Utmost Group for 483 million pounds ($664.37 million), as it sharpens its focus on its UK wealth management unit.
Fashion retailer Next NXT.L rose 3.2%, even after it reported a halving in annual pretax profit after lockdowns closed its stores but raised its forecast for a big rebound this year.
Investment company 3i Infrastructure 3IN.L slid 0.3%, after it agreed to invest 182 million euros ($213.23 million) for a 60% stake in German telecommunications provider DNS:NET.
(Reporting by Shivani Kumaresan in Bengaluru; Editing by Shailesh Kuber)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Mining stocks, including Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L, were also among the biggest boosts on the index. By Shivani Kumaresan April 1 (Reuters) - British shares tracked gains in Asian peers on Thursday, lifted by hopes of a swifter economic rebound this year, while Quilter rose after agreeing to sell its international business to Utmost Group. "Despite the optimism surrounding the rollout of COVID-19 vaccines in a select group of countries, the virus continues to wreak havoc elsewhere," Jeffrey Halley, senior market analyst, OANDA wrote in a note.
|
Mining stocks, including Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L, were also among the biggest boosts on the index. By Shivani Kumaresan April 1 (Reuters) - British shares tracked gains in Asian peers on Thursday, lifted by hopes of a swifter economic rebound this year, while Quilter rose after agreeing to sell its international business to Utmost Group. The blue-chip FTSE 100 index .FTSE rose 0.5%, with industrials and bank stocks, mainly BAE Systems Plc BAES.L, Relx Plc REL.L, Prudential Financial Inc PRU.L and Barclays Plc BARC.L, being the biggest gainers.
|
Mining stocks, including Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L, were also among the biggest boosts on the index. By Shivani Kumaresan April 1 (Reuters) - British shares tracked gains in Asian peers on Thursday, lifted by hopes of a swifter economic rebound this year, while Quilter rose after agreeing to sell its international business to Utmost Group. The blue-chip FTSE 100 index .FTSE rose 0.5%, with industrials and bank stocks, mainly BAE Systems Plc BAES.L, Relx Plc REL.L, Prudential Financial Inc PRU.L and Barclays Plc BARC.L, being the biggest gainers.
|
Mining stocks, including Rio Tinto RIO.L, Anglo American AAL.L and BHP BHPB.L, were also among the biggest boosts on the index. The blue-chip FTSE 100 index .FTSE rose 0.5%, with industrials and bank stocks, mainly BAE Systems Plc BAES.L, Relx Plc REL.L, Prudential Financial Inc PRU.L and Barclays Plc BARC.L, being the biggest gainers. "Despite the optimism surrounding the rollout of COVID-19 vaccines in a select group of countries, the virus continues to wreak havoc elsewhere," Jeffrey Halley, senior market analyst, OANDA wrote in a note.
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4599.0
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2021-03-31 00:00:00 UTC
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American Airlines cuts debt by $2.8 billion
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AAL
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https://www.nasdaq.com/articles/american-airlines-cuts-debt-by-%242.8-billion-2021-03-31
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nan
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nan
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March 31 (Reuters) - American Airlines AAL.O said on Wednesday it had reduced its outstanding debt by $2.8 billion after repaying loans under various revolving credit facilities. (https://bit.ly/3cGC0yG)
(Reporting by Shreyasee Raj; Editing by Vinay Dwivedi)
((Shreyasee.Raj@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.
|
March 31 (Reuters) - American Airlines AAL.O said on Wednesday it had reduced its outstanding debt by $2.8 billion after repaying loans under various revolving credit facilities. (https://bit.ly/3cGC0yG) (Reporting by Shreyasee Raj; Editing by Vinay Dwivedi) ((Shreyasee.Raj@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.
|
March 31 (Reuters) - American Airlines AAL.O said on Wednesday it had reduced its outstanding debt by $2.8 billion after repaying loans under various revolving credit facilities. (https://bit.ly/3cGC0yG) (Reporting by Shreyasee Raj; Editing by Vinay Dwivedi) ((Shreyasee.Raj@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.
|
March 31 (Reuters) - American Airlines AAL.O said on Wednesday it had reduced its outstanding debt by $2.8 billion after repaying loans under various revolving credit facilities. (https://bit.ly/3cGC0yG) (Reporting by Shreyasee Raj; Editing by Vinay Dwivedi) ((Shreyasee.Raj@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.
|
March 31 (Reuters) - American Airlines AAL.O said on Wednesday it had reduced its outstanding debt by $2.8 billion after repaying loans under various revolving credit facilities. (https://bit.ly/3cGC0yG) (Reporting by Shreyasee Raj; Editing by Vinay Dwivedi) ((Shreyasee.Raj@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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