Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
|
|---|---|---|---|---|---|---|---|---|---|---|---|
8400.0
|
2015-04-09 00:00:00 UTC
|
American Airlines Gets Single Operating Certificate, Stock Up - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-gets-single-operating-certificate-stock-up-analyst-blog-2015-04-09
|
nan
|
nan
|
Shares of American Airlines Group Inc. AAL climbed 2.62% on Apr 8 to $48.74 following the Federal Aviation Administration's (FAA) decision to grant a single operating certificate to American Airlines. The FAA's decision marks a huge positive step toward the completion of the merger integration process of American Airlines and US Airways. We remind investors that American Airlines Group was formed following the Dec 2013 merger between AMR (American Airlines' parent group, founded in 1934) and US Airways.
Following the approval, the two airlines will be able to operate under a solitary certificate. The single airline approval implies that most flight operations, maintenance and dispatch procedures will be the same for all flights operated by American Airlines and US Airways. The decision comes close on the heels of the clubbing of US Airways' Dividend Miles frequent flyer plan with American Airlines' AAdvantage loyalty program.
Fliers will, however, not notice the impact of the FAA decision immediately. For the time being, they will continue to check in for their flights at the ticket counters of American Airlines and US Airways or on their respective websites. This will be discontinued later in the year when the reservation systems are merged. Eventually, planes operated by US Airways will be repainted to sport American Airlines' colors and logo.
We remind investors that another major step toward the completion of the integration process was taken early in the year when American Airlines Group inked a 5-year contract with its pilots. The approval of the contract by the members of the Allied Pilots Association makes the pilots eligible for a 23% pay raise with immediate effect followed by a 3% pay hike in each of the 5 following years. A five-year agreement with the flight attendants of American Airlines and U.S. Airways is also in place.
Zacks Rank
American Airlines Group carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space are Southwest Airlines LUV , JetBlue Airways JBLU and Hawaiian Holdings HA . All the three stocks carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Get Free Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of American Airlines Group Inc. AAL climbed 2.62% on Apr 8 to $48.74 following the Federal Aviation Administration's (FAA) decision to grant a single operating certificate to American Airlines. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The FAA's decision marks a huge positive step toward the completion of the merger integration process of American Airlines and US Airways.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of American Airlines Group Inc. AAL climbed 2.62% on Apr 8 to $48.74 following the Federal Aviation Administration's (FAA) decision to grant a single operating certificate to American Airlines. Zacks Rank American Airlines Group carries a Zacks Rank #3 (Hold).
|
Shares of American Airlines Group Inc. AAL climbed 2.62% on Apr 8 to $48.74 following the Federal Aviation Administration's (FAA) decision to grant a single operating certificate to American Airlines. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that American Airlines Group was formed following the Dec 2013 merger between AMR (American Airlines' parent group, founded in 1934) and US Airways.
|
Shares of American Airlines Group Inc. AAL climbed 2.62% on Apr 8 to $48.74 following the Federal Aviation Administration's (FAA) decision to grant a single operating certificate to American Airlines. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The single airline approval implies that most flight operations, maintenance and dispatch procedures will be the same for all flights operated by American Airlines and US Airways.
|
8401.0
|
2015-04-08 00:00:00 UTC
|
David Tepper's Low P/E Stocks
|
AAL
|
https://www.nasdaq.com/articles/david-teppers-low-pe-stocks-2015-04-08
|
nan
|
nan
|
It was widely reported last month that hedge fund manager David Tepper ( Trades , Portfolio ) shed a sizable portion of his portfolio in the fourth quarter, exiting 15 positions completely and reducing 23. His $20 billion Appaloosa Management also ended the year up 30%.
During the big sell-off, Tepper told CNBC in December that while he did not officially call a top for the markets in 2015, he did foresee rising values on stocks that were already not cheap: "You [just] have to be aware of the possibility for some sort of overvaluation of the markets," he said. "And they are fair value now."
List of 52-Week Lows
List of 3-Year Lows
List of 5-Year Lows
Tepper also likened 2015 to 1999, alluding to potential turbulence ahead due to trouble in Russia and quantitative easing in Europe and the rest of the world when U.S. fundamentals did not show strength.
He used the price-to-earnings ratio, one indicator of the cheapness of a stock, to help make his point about valuation. "Remember in 1999 the S&P [500] went to a 30 P/E [price-to-earnings ratio]. Next year P/E is now like 16," Tepper told CNBC.
The P/E ratio of the S&P had risen to 20.1 on Tuesday, above the historical mean of 15. The Shiller P/E, a more reliable estimate of market valuation that evens out business cycles, stood at 27.4, which is 65.1% higher than the historical mean of 16.6.
Some of Tepper's larger positions that he retained in the fourth quarter have the lowest P/E ratios in his portfolio. The lowest of the low P/E stocks are: Goodyear Tire & Rubber Co. ( GT ), Terex Corp ( TEX ), Chicago Bridge & Iron Company ( CBI ), Masco Corp ( MAS ) and American Airlines Group Inc. ( AAL ).
Goodyear Tire & Rubber Co. ( GT )
Tepper's sixth largest holding also has the lowest P/E in his portfolio, at 3.1. He owned 10,238,716 shares at quarter-end, having reduced the position 9.2% in the fourth quarter. The holding represented 7.2% of his portfolio.
Goodyear Tire & Rubber Co. is an Ohio corporation organized in 1898. Goodyear Tire & Rubber Co. has a market cap of $7.28 billion; its shares were traded at around $27.00 with a P/E ratio of 3.10 and P/S ratio of 0.40. The dividend yield of Goodyear Tire & Rubber Co. stocks is 0.8%. Goodyear Tire & Rubber Co. had an annual average earnings growth of 20.7% over the past five years.
Terex Corp ( TEX )
Terex Corp has a P/E ratio of 9.6. Tepper held 1,651,708 shares of the company, dedicating 1.1% of his portfolio to the position. He increased the position by 5.8% in the fourth quarter.
Terex Corp was incorporated in Delaware in October 1986 as Terex U. Terex Corp has a market cap of $2.81 billion; its shares were traded at around $26.42 with a P/E ratio of 9.6 and P/S ratio of 0.4. The dividend yield of Terex Corp stocks is 0.8%.
Chicago Bridge & Iron Company ( CBI )
Chicago Bridge & Iron has a P/E of 10. Tepper owned 1,347,598 shares of the company, a 1.4% portfolio weight. He also reduced the position 18.3% in the fourth quarter.
Chicago Bridge & Iron Company was founded in 1889. It provides conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services to customers in the energy infrastructure market throughout the world, and is a provider of diversified government services. Chicago Bridge & Iron Company has a market cap of $5.35 billion; its shares were traded at around $49.49 with a P/E ratio of 10.0 and P/S ratio of 0.40. The dividend yield of Chicago Bridge & Iron Company stocks is 0.30%. Chicago Bridge & Iron Company had an annual average earnings growth of 25.30% over the past 10 years. GuruFocus rated Chicago Bridge & Iron Company the business predictability rank of 5-star.
Masco Corp ( MAS )
Masco Corp has a P/E of 11.2. Tepper held 115,930 shares of the company, giving it a 2.9% portfolio weight. He reduced the position by 20.6% in the fourth quarter.
Masco Corp was incorporated under the laws of Michigan in 1929 and in 1968 was reincorporated under the laws of Delaware. Masco Corp has a market cap of $9.19 billion; its shares were traded at around $26.29 with a P/E ratio of 11.2 and P/S ratio of 1.10. The dividend yield of Masco Corp stocks is 1.3%.
American Airlines Group Inc. ( AAL )
American Airlines has a P/E of 12. Tepper continued holding 4,355,050 shares of the company, a 5.8% portfolio weight, after reducing the position by 40.2% in the fourth quarter.
American Airlines Group Inc., formerly known as AMR Corp, was incorporated in October 1982 and operates in the airline industry. American Airlines Group Inc. has a market cap of $33.09 billion; its shares were traded at around $47.50 with a P/E ratio of 12.0 and P/S ratio of 0.8. The dividend yield of American Airlines Group Inc. stocks is 0.6%.
Find more David Tepper (Trades, Portfolio) stocks in his portfolio here. Not a Premium Member of GuruFocus?Try it free for 7 days here .
About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The lowest of the low P/E stocks are: Goodyear Tire & Rubber Co. ( GT ), Terex Corp ( TEX ), Chicago Bridge & Iron Company ( CBI ), Masco Corp ( MAS ) and American Airlines Group Inc. ( AAL ). American Airlines Group Inc. ( AAL ) American Airlines has a P/E of 12. The Shiller P/E, a more reliable estimate of market valuation that evens out business cycles, stood at 27.4, which is 65.1% higher than the historical mean of 16.6.
|
The lowest of the low P/E stocks are: Goodyear Tire & Rubber Co. ( GT ), Terex Corp ( TEX ), Chicago Bridge & Iron Company ( CBI ), Masco Corp ( MAS ) and American Airlines Group Inc. ( AAL ). American Airlines Group Inc. ( AAL ) American Airlines has a P/E of 12. Terex Corp was incorporated in Delaware in October 1986 as Terex U. Terex Corp has a market cap of $2.81 billion; its shares were traded at around $26.42 with a P/E ratio of 9.6 and P/S ratio of 0.4.
|
The lowest of the low P/E stocks are: Goodyear Tire & Rubber Co. ( GT ), Terex Corp ( TEX ), Chicago Bridge & Iron Company ( CBI ), Masco Corp ( MAS ) and American Airlines Group Inc. ( AAL ). American Airlines Group Inc. ( AAL ) American Airlines has a P/E of 12. Terex Corp was incorporated in Delaware in October 1986 as Terex U. Terex Corp has a market cap of $2.81 billion; its shares were traded at around $26.42 with a P/E ratio of 9.6 and P/S ratio of 0.4.
|
The lowest of the low P/E stocks are: Goodyear Tire & Rubber Co. ( GT ), Terex Corp ( TEX ), Chicago Bridge & Iron Company ( CBI ), Masco Corp ( MAS ) and American Airlines Group Inc. ( AAL ). American Airlines Group Inc. ( AAL ) American Airlines has a P/E of 12. Goodyear Tire & Rubber Co. has a market cap of $7.28 billion; its shares were traded at around $27.00 with a P/E ratio of 3.10 and P/S ratio of 0.40.
|
8402.0
|
2015-04-08 00:00:00 UTC
|
Can Airline Stocks Withstand Higher Crude Oil Prices? - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/can-airline-stocks-withstand-higher-crude-oil-prices-analyst-blog-2015-04-08
|
nan
|
nan
|
Stocks in the airline space have been performing impressively over the last few months thanks to higher demand for travel backed by an improving labor market, consolidation and declining oil prices . Lower jet fuel prices have positively impacted the airline industry given the inversely proportional relation between crude prices and the value of stocks.
Crude prices have remained weak over the recent past due to an over-supplied oil market, especially in the face of lackluster global demand. Since fuel costs account for a major chunk of an airline company's operating expenses, the drop in oil prices has significantly boosted the bottom lines of stocks in the airline space.
In fact, the financial results of most airline stocks in the closing quarter of 2014 benefited from low fuel costs. Carriers such as Delta Air Lines DAL , Alaska Air Group ALK Southwest Airlines LUV and American Airlines Group AAL recorded better-than expected earnings in the fourth quarter of 2014. Although it is a fact that most carriers hedge at least some of their fuel costs, the majority of them should still continue to benefit considerably from the plunge in oil prices. Notably, carriers use a combination of calls, swaps and collars at varying WTI crude-equivalent price levels to hedge fuel costs.
Recent Oil Price Rise Not a Concern
More lately, airline stocks have fluctuated with respect to price performance, in response to the volatile nature of oil prices. Over the last few weeks, oil prices have been rising albeit not substantially. Crude prices have been hovering around the $50 a barrel mark. This represents a significant decline from the approximately $105 per barrel witnessed in July last year. In fact, oil prices have been fluctuating wildly after hitting a 6-year low of under $44 in Mar 2015.
We are not too perturbed by the recent upward movement in oil prices. We believe the adverse impact of the rise on airline stocks is nothing but a short-term phenomenon.
We say this in view of the fundamentals of the industry that remain strong. Thus, stocks in the airline space should gain over the long term. We expect oil prices to continue fluctuating and it is highly unlikely that they will touch the highs of 2014 any time soon. As seen over the recent past, weak oil prices should translate into big gains for airline stocks over the long term.
This optimism is supported by the rosy outlook for 2015 provided by the International Air Transport Association (IATA). The research firm projects that the industry will continue to see good times in 2015. IATA has projected a rise in the industry's global profit to $25 billion in 2015 from $19.9 billion in 2014.
The research firm has also predicted that airline companies will earn $7.08 per passenger in 2015, up 17.6% year over year. The firm further holds that oil prices will continue to fall this year with the average price hovering around $85 per barrel.
Strong Financial Health Promotes Investment in Infrastructure
The massive savings enjoyed by most airline stocks have naturally turned around their financial health. This has prompted them to invest substantially toward enhancing the flying experience for travelers, in a bid to stay afloat in the competitive airline space. For example, American Airlines announced last year that it will invest in excess of $2 billion to upgrade its flying facilities. In the same vein, Delta Air Lines introduced a new five-tiered seating plan from Mar 1, 2015. According to Boeing, over the next 20 years, globally, airline companies are expected to invest around $5.2 trillion in fleet development.
Carriers have been investing heavily toward fleet expansion. For instance, in February, Allegiant Travel Company ALGT , the parent company of Allegiant Air, announced a deal to buy two A320 planes. At present, the aircraft, which has a capacity of 177 seats, is being used by Philippine Airlines. The twin A320 aircraft will join the company's fleet before the end of 2015.
Thus, low oil prices are indeed a blessing for the financial health of airline companies. We expect these good times to continue for quite some time ahead, and so do the carriers, as can be made out by the long-term investments planned by them.
The Bottom-Line
Even though oil prices are betraying a marginal upward trend, we believe prices are unlikely to touch the highs witnessed early last year. Consequently, airline stocks should continue to gain and the industry as a whole should still witness joyful times. With oil prices expected to remain weak and ticket prices not showing substantial change, airline stocks should appreciate going forward.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
ALLEGIANT TRAVL (ALGT): Get Free Report
AMER AIRLINES (AAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Carriers such as Delta Air Lines DAL , Alaska Air Group ALK Southwest Airlines LUV and American Airlines Group AAL recorded better-than expected earnings in the fourth quarter of 2014. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Get Free Report To read this article on Zacks.com click here. Stocks in the airline space have been performing impressively over the last few months thanks to higher demand for travel backed by an improving labor market, consolidation and declining oil prices .
|
Carriers such as Delta Air Lines DAL , Alaska Air Group ALK Southwest Airlines LUV and American Airlines Group AAL recorded better-than expected earnings in the fourth quarter of 2014. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Get Free Report To read this article on Zacks.com click here. For instance, in February, Allegiant Travel Company ALGT , the parent company of Allegiant Air, announced a deal to buy two A320 planes.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Get Free Report To read this article on Zacks.com click here. Carriers such as Delta Air Lines DAL , Alaska Air Group ALK Southwest Airlines LUV and American Airlines Group AAL recorded better-than expected earnings in the fourth quarter of 2014. Since fuel costs account for a major chunk of an airline company's operating expenses, the drop in oil prices has significantly boosted the bottom lines of stocks in the airline space.
|
Carriers such as Delta Air Lines DAL , Alaska Air Group ALK Southwest Airlines LUV and American Airlines Group AAL recorded better-than expected earnings in the fourth quarter of 2014. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Get Free Report To read this article on Zacks.com click here. Recent Oil Price Rise Not a Concern More lately, airline stocks have fluctuated with respect to price performance, in response to the volatile nature of oil prices.
|
8403.0
|
2015-04-06 00:00:00 UTC
|
Alaska Air Group's March Traffic Rises on Higher Demand - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/alaska-air-groups-march-traffic-rises-on-higher-demand-analyst-blog-2015-04-06
|
nan
|
nan
|
Alaska Air GroupALK , the parent company of Alaska Airlines and Horizon Air, reported impressive traffic data for the month of March, mainly due to increased demand. In Mar 2015, the carrier transported 271,000 more passengers than compared to the same month a year ago.
The company's consolidated airline traffic - measured in revenue passenger miles or RPMs, which imply revenue generated per mile per passenger - moved up 11.2% year over year to 2,899 million. Consolidated capacity (available seat miles/ASMs) for the month increased 12.4% from Mar 2014 to 3,365 million.
The greater rise in capacity compared to RPMs implies that load factor (percentage of seats filled by passengers) declined in Mar 2015 compared to Mar 2014. The metric fell 100 basis points (bps) from Mar 2014 to 86.1%.
In the first three months of 2015, the Zacks Rank #2 (Buy) company has generated RPMs of 7,723 million (up 9.1% from the corresponding period last year) and ASMs of 9,257 million (up 10.8%). Load factor declined 130 bps year over year to 83.4%.
While the Seattle-based Alaska Air Group impressed with its March traffic numbers, Delta Air Lines DAL saw its traffic for the month being hit by foreign exchange movements. We note that both the companies are competing for market share of flights operating out of Seattle.
With March traffic updates expected in the next few days from companies like United Continental UAL and American Airlines Group AAL , it remains to be seen whether foreign exchange pressure weighs on the monthly traffic numbers of these carriers as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
With March traffic updates expected in the next few days from companies like United Continental UAL and American Airlines Group AAL , it remains to be seen whether foreign exchange pressure weighs on the monthly traffic numbers of these carriers as well. Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In Mar 2015, the carrier transported 271,000 more passengers than compared to the same month a year ago.
|
Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. With March traffic updates expected in the next few days from companies like United Continental UAL and American Airlines Group AAL , it remains to be seen whether foreign exchange pressure weighs on the monthly traffic numbers of these carriers as well. The company's consolidated airline traffic - measured in revenue passenger miles or RPMs, which imply revenue generated per mile per passenger - moved up 11.2% year over year to 2,899 million.
|
Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. With March traffic updates expected in the next few days from companies like United Continental UAL and American Airlines Group AAL , it remains to be seen whether foreign exchange pressure weighs on the monthly traffic numbers of these carriers as well. The company's consolidated airline traffic - measured in revenue passenger miles or RPMs, which imply revenue generated per mile per passenger - moved up 11.2% year over year to 2,899 million.
|
With March traffic updates expected in the next few days from companies like United Continental UAL and American Airlines Group AAL , it remains to be seen whether foreign exchange pressure weighs on the monthly traffic numbers of these carriers as well. Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air GroupALK , the parent company of Alaska Airlines and Horizon Air, reported impressive traffic data for the month of March, mainly due to increased demand.
|
8404.0
|
2015-04-01 00:00:00 UTC
|
Nasdaq 100 Movers: AAL, VIP
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-aal-vip-2015-04-01
|
nan
|
nan
|
In early trading on Wednesday, shares of VimpelCom ( VIP ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. Year to date, VimpelCom registers a 26.7% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.9%. American Airlines Group is lower by about 5.4% looking at the year to date performance.
Two other components making moves today are CA ( CA ), trading down 3.2%, and SBA Communications Corp. ( SBAC ), trading up 0.9% on the day.
VIDEO: Nasdaq 100 Movers: AAL, VIP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.9%. VIDEO: Nasdaq 100 Movers: AAL, VIP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 5.4% looking at the year to date performance.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.9%. VIDEO: Nasdaq 100 Movers: AAL, VIP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.9%. VIDEO: Nasdaq 100 Movers: AAL, VIP 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 Wednesday, shares of VimpelCom ( VIP ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.9%. VIDEO: Nasdaq 100 Movers: AAL, VIP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 5.4% looking at the year to date performance.
|
8405.0
|
2015-03-31 00:00:00 UTC
|
DOT Gives Delta a Second Chance and Snubs Hawaiian Airlines
|
AAL
|
https://www.nasdaq.com/articles/dot-gives-delta-second-chance-and-snubs-hawaiian-airlines-2015-03-31
|
nan
|
nan
|
For the past few years, U.S. airlines have engaged in on-again, off-again squabbles about the allocation of flight slots at Haneda Airport, the closest airport to downtown Tokyo. U.S. carriers can only offer four round-trip flights to Haneda each day, and these slots are fiercely contested.
For the past several months, American Airlines and Hawaiian Holdings have each tried to convince the U.S. Department of Transportation to reallocate a slot used by Delta Air Lines for service to Seattle. American wants to use the slot for flights to Los Angeles; Hawaiian wants to fly to Kona, Hawaii. But on Friday, the DOT tentatively allowed Delta keep the slot.
Shifting slots
In 2010, the U.S. and Japan reached an agreement allowing the DOT to allocate four slots for U.S. carriers to fly to Haneda. The slot allocation has changed over time, but Delta presently has two slots for flights to Los Angeles and Seattle. United Continental uses one slot for flights to San Francisco. Hawaiian uses the last slot for service to Honolulu.
American Airlines wants a chance to return to Haneda Airport. Photo: American Airlines.
American Airlines -- which canceled its lone Haneda route in late 2013 -- wants to get back into the Haneda market now. Meanwhile, Hawaiian Airlines wants a second slot so it can fly to both Kona and Honolulu. For either of those things to happen, the DOT would need to take back one of the few existing slot allocations. Delta's Seattle-Haneda route is the weakest link.
Mixed success in Seattle
Delta inaugurated its Seattle-Haneda route as part of a broader buildup of Seattle as a key international gateway hub. However, the route has not performed well, so Delta last year cut back on service during the seasonally weaker winter season.
In fact, in the past six months, Delta flew the Seattle-Haneda route on just 17 days, essentially the bare minimum to avoid automatically losing the slot. American and Hawaiian cried foul, in hopes of convincing the DOT to revisit its slot allocation. Both carriers argued Delta is wasting a valuable slot by operating this seasonal service.
Delta's (successful) defense
Delta employed several arguments to defeat the attacks from American Airlines and Hawaiian Airlines. First, the airline pointed out it was resuming daily service in late March for the summer season.
Second, Delta noted that it was fulfilling the letter of the DOT's requirements despite operating only sporadic service during the winter season. The company argued if the DOT wanted to change the rules, it should at least give Delta the right to operate its Seattle service under those new rules.
Delta fought hard to retain its slot for Seattle-Haneda flights. Photo: The Motley Fool
Third, Delta announced plans to continue its daily Seattle-Haneda flights year-round going forward. It claimed the expansion of its domestic service in Seattle will improve the Haneda route's profitability.
Considering that the economic rationale for Seattle-Haneda flights was just as strong as it was when the slot was originally awarded to Delta, it's not surprising the DOT sided with Delta here. It did impose stronger conditions, though, to ensure Delta does use its Haneda slots year-round.
The fight for second
The DOT also awarded a "backup authority" in case Delta violates any of the conditions governing its Haneda slots. It chose American's proposed route to Los Angeles over Hawaiian's proposed Kona route for this purpose.
Hawaiian Airlines was frustrated again in its attempt to get a second Haneda slot. Photo: Wikimedia Commons .
Hawaiian Airlines' management was clearly extremely frustrated by the DOT's decision. In a prepared statement, CEO Mark Dunkerley noted that Kona-Haneda is a larger travel market than Seattle-Haneda. He added:
Indeed, the DOT's "Order to Show Cause" made it quite plain that the department believes flights for U.S.-based business travelers should be given priority over flights for foreign leisure travelers coming to the U.S. Yet bringing tourists to the U.S. to spend money on hotels, restaurants, shopping, etc., is at least equally good for the U.S. economy as encouraging business travel abroad.
In the end, this potential pro-business/anti-tourism bias probably didn't have a big impact on the outcome. Once Delta agreed to operate year-round daily service from Seattle going forward, it became very unlikely the DOT would take the slot away.
That said, the DOT's decision to support a third daily Haneda-Los Angeles flight (Delta and Japanese carrier ANA both fly the route already) over a single Kona flight shows Hawaiian Airlines' prospects of winning another slot at Haneda Airport are slim indeed.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article DOT Gives Delta a Second Chance and Snubs Hawaiian Airlines originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of Hawaiian Holdings, The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For the past several months, American Airlines and Hawaiian Holdings have each tried to convince the U.S. Department of Transportation to reallocate a slot used by Delta Air Lines for service to Seattle. In fact, in the past six months, Delta flew the Seattle-Haneda route on just 17 days, essentially the bare minimum to avoid automatically losing the slot. Yet bringing tourists to the U.S. to spend money on hotels, restaurants, shopping, etc., is at least equally good for the U.S. economy as encouraging business travel abroad.
|
For the past several months, American Airlines and Hawaiian Holdings have each tried to convince the U.S. Department of Transportation to reallocate a slot used by Delta Air Lines for service to Seattle. It chose American's proposed route to Los Angeles over Hawaiian's proposed Kona route for this purpose. That said, the DOT's decision to support a third daily Haneda-Los Angeles flight (Delta and Japanese carrier ANA both fly the route already) over a single Kona flight shows Hawaiian Airlines' prospects of winning another slot at Haneda Airport are slim indeed.
|
For the past several months, American Airlines and Hawaiian Holdings have each tried to convince the U.S. Department of Transportation to reallocate a slot used by Delta Air Lines for service to Seattle. Considering that the economic rationale for Seattle-Haneda flights was just as strong as it was when the slot was originally awarded to Delta, it's not surprising the DOT sided with Delta here. That said, the DOT's decision to support a third daily Haneda-Los Angeles flight (Delta and Japanese carrier ANA both fly the route already) over a single Kona flight shows Hawaiian Airlines' prospects of winning another slot at Haneda Airport are slim indeed.
|
American Airlines -- which canceled its lone Haneda route in late 2013 -- wants to get back into the Haneda market now. Photo: The Motley Fool Third, Delta announced plans to continue its daily Seattle-Haneda flights year-round going forward. That said, the DOT's decision to support a third daily Haneda-Los Angeles flight (Delta and Japanese carrier ANA both fly the route already) over a single Kona flight shows Hawaiian Airlines' prospects of winning another slot at Haneda Airport are slim indeed.
|
8406.0
|
2015-03-26 00:00:00 UTC
|
American Airlines to Unite Dividend Miles with AAdvantage - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-to-unite-dividend-miles-with-aadvantage-analyst-blog-2015-03-26
|
nan
|
nan
|
Premier passenger carrier American Airlines Group Inc.AAL has finally decided to club the US Airways' Dividend Miles frequent flyer plan with its existing AAdvantage loyalty program by the end of this weekend. Following the integration of the two loyalty plans, US Airways' Dividend Miles club members will be able to enjoy the attractive perks of the AAdvantage loyalty program.
Clubbing of both the loyalty programs was part of American Airlines' strategy post the merger with US Airways, which happened around 15 months back. American Airlines also assured to provide nearly 70 million AAdvantage members the same facilities, despite certain changes in perks.
Under this new arrangement, American Airlines Group will open individual accounts for members without an AAdvantage account. Thus, the existing balance of the new members will reflect in their respective AAdvantage accounts. However, members who own only an AAdvantage account will continue to maintain the same.
Post implementation of this policy, elite account holders of the US Airways will receive complimentary, auto-generated promotion. Meanwhile, executive Platinum holders will receive complimentary upgrades on 500-mile flights, irrespective of the duration. Moreover, at the time of booking, members will be able to avail eight system-wide upgrades.
In order to align with what Dividend Miles members obtain today, bonus miles will be raised by two-fold from 25% on Business Class tickets for AAdvantage account holders.
American Airlines has decided to adopt a prudent approach related to clubbing of mileage plans, taking a lesson from the error made by United Continental Holdings UAL .
American Airlines currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other favorably-ranked stocks in the same sector are JetBlue Airways Corporation JBLU and Southwest Airlines Co. LUV . JetBlue Airways sports a Zacks Rank #1 (Strong Buy) while Southwest Airlines carries Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Premier passenger carrier American Airlines Group Inc.AAL has finally decided to club the US Airways' Dividend Miles frequent flyer plan with its existing AAdvantage loyalty program by the end of this weekend. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Clubbing of both the loyalty programs was part of American Airlines' strategy post the merger with US Airways, which happened around 15 months back.
|
Premier passenger carrier American Airlines Group Inc.AAL has finally decided to club the US Airways' Dividend Miles frequent flyer plan with its existing AAdvantage loyalty program by the end of this weekend. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. JetBlue Airways sports a Zacks Rank #1 (Strong Buy) while Southwest Airlines carries Zacks Rank #2 (Buy).
|
Premier passenger carrier American Airlines Group Inc.AAL has finally decided to club the US Airways' Dividend Miles frequent flyer plan with its existing AAdvantage loyalty program by the end of this weekend. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Under this new arrangement, American Airlines Group will open individual accounts for members without an AAdvantage account.
|
Premier passenger carrier American Airlines Group Inc.AAL has finally decided to club the US Airways' Dividend Miles frequent flyer plan with its existing AAdvantage loyalty program by the end of this weekend. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Under this new arrangement, American Airlines Group will open individual accounts for members without an AAdvantage account.
|
8407.0
|
2015-03-25 00:00:00 UTC
|
Will BlackBerry (BBRY) Disappoint Earnings This Season? - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/will-blackberry-bbry-disappoint-earnings-this-season-analyst-blog-2015-03-25
|
nan
|
nan
|
Canadian smartphone manufacturer BlackBerry LimitedBBRY is expected to release its fourth-quarter 2015 financial numbers before the opening bell on Mar 27.
In the last quarter, the company delivered a positive 116.67% earnings surprise. Meanwhile, in the last four quarters, the company delivered positive earnings surprises, with an average beat of 87.47%.
Let's see how things are shaping up for this announcement.
Factors at Play
BlackBerry's BES12 platform is increasingly gaining traction and the company's latest deal with Sprint also testifies its growing popularity. As per the deal, BlackBerry will deliver secure management solutions to Sprint's devices from other mobile platforms.
Also, BlackBerry and healthcare data supplier NantHealth recently unveiled the world's first secure cancer genome browser on BlackBerry's Passport smartphones for doctors and clinicians.
Despite these positives, weaker smartphone sales, stiff competition, a stagnant product portfolio and an unfavorable product mix continue to act as headwinds for the company.
Earnings Whispers
Our proven model does not conclusively show that BlackBerry is likely to beat the Zacks Consensus Estimate this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or at least 3 for this to happen. That is not the case here, as you will see below:
Zacks ESP: The Earnings ESP represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate. Thus, the ESP for the company is -100% as the Most Accurate estimate is pegged at a loss of 4 cents while the Zacks Consensus Estimate is lower at a loss of 2 cents.
Zacks Rank BlackBerry carries a Zacks Rank #3 (Hold) which increases the predictive power of ESP. However, the company's -100% ESP makes surprise prediction difficult.
Please note that Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter.
Allegiant Travel Company ALGT has an ESP of +1.17% and a Zacks Rank #2 (Buy).
Hawaiian Holdings Inc. HA has an ESP of +5.26% and a Zacks Rank #2.
American Airlines Group Inc. AAL carries a Zacks Rank #3 and an ESP of +0.59%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
BLACKBERRY LTD (BBRY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group Inc. AAL carries a Zacks Rank #3 and an ESP of +0.59%. Click to get this free report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report BLACKBERRY LTD (BBRY): Free Stock Analysis Report To read this article on Zacks.com click here. Canadian smartphone manufacturer BlackBerry LimitedBBRY is expected to release its fourth-quarter 2015 financial numbers before the opening bell on Mar 27.
|
Click to get this free report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report BLACKBERRY LTD (BBRY): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL carries a Zacks Rank #3 and an ESP of +0.59%. Zacks Rank BlackBerry carries a Zacks Rank #3 (Hold) which increases the predictive power of ESP.
|
Click to get this free report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report BLACKBERRY LTD (BBRY): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL carries a Zacks Rank #3 and an ESP of +0.59%. That is not the case here, as you will see below: Zacks ESP: The Earnings ESP represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate.
|
American Airlines Group Inc. AAL carries a Zacks Rank #3 and an ESP of +0.59%. Click to get this free report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report BLACKBERRY LTD (BBRY): Free Stock Analysis Report To read this article on Zacks.com click here. In the last quarter, the company delivered a positive 116.67% earnings surprise.
|
8408.0
|
2015-03-24 00:00:00 UTC
|
Zacks Industry Outlook Highlights: Allegiant Travel, American Airlines and Delta Air Lines - Press Releases
|
AAL
|
https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-allegiant-travel-american-airlines-and-delta-air-lines
|
nan
|
nan
|
Chicago, IL - March 24, 2015 - Today, Zacks Equity Research discusses Airlines, including Allegiant Travel Company ( ALGT - Free Report ), American Airlines Group ( AAL - Free Report ) and Delta Air Lines ( DAL - Free Report ).
Industry: Airlines
Link: http://www.zacks.com/commentary/38950/airline-industry-stock-outlook---march-2015
Lower Oil Prices: A Boon for the Airline Industry
Lower jet fuel prices have been a blessing for the airline industry given the inversely proportional relation between crude prices and the value of stocks. Crude prices have witnessed a downward trend over the last few months due to an over-supplied oil market, especially in the face of lackluster global demand. Since fuel costs account for a major chunk of an airline company's operating expenses, the persistent drop in oil prices has significantly boosted the bottom lines of stocks in the airline space.
The financial results of most airline stocks in the closing quarter of 2014 benefited from low fuel costs. Going forward, as forecast by the research firm International Air Transport Association (IATA), the industry will continue to see good times in 2015. IATA has projected a rise in the industry's global profit to $25 billion in 2015 from $19.9 billion in 2014.
The research firm has also predicted that airline companies will earn $7.08 per passenger in 2015, up 17.6% year over year. The firm holds that oil prices will continue to fall in 2015 with the average price in the year hovering around $85 per barrel. Moreover, according to the IATA forecast, cargo is expected to witness the strongest growth in 2015 since 2010. In fact, Cargo volumes are projected to register growth of 4.5% in 2015, higher than 4.3% witnessed in 2014.
Rosy Outlook for North America
Carriers in North America are expected to continue their strong performance in 2015 on the back of higher demand for travel, an improving labor market, consolidation and weak oil prices. Per the IATA forecast, 2015 net profit (after tax) is estimated to touch $13.2 billion for the region. Net margin is expected to grow to 6% in 2015 from 5.5% recorded in 2014.
The other regions, namely Asia-Pacific, Europe, Latin America, Middle East and Africa, are expected to generate post-tax net profit of $5 billion, $4 billion, $1 billion, $1.6 billion and $0.2 billion, respectively.
Underlying Factors for a Profitable 2015
There are several catalysts that are poised to trigger handsome profits for the overall airline industry in 2015. These include:
Passenger & Cargo: The IATA suggests that demand for passenger as well as cargo services will improve in 2015 from 2014 levels on the back of an improving economy. According to the forecast, 2015 is expected to see air travel growth of 7%, compared with the 5.7% growth witnessed in 2014. Moreover, the projected air travel growth is higher than the trend witnessed in the last 2 decades, according to the IATA report. Capacity is projected to increase by 7.3% in 2015 as opposed to 5.5% in 2014.
Customers, on the other hand, will benefit from cheaper air travel, thanks to low oil prices, as one-way fares are expected to be slashed by 5.1% this year. A recent report released by the U.S. Federal Aviation Administration forecasts an approximate 50% growth in the volume of fliers on U.S. airlines in the next two decades. The report states that 1.14 billion fliers are expected to be transported by U.S. carriers by 2035. The figure was 756.3 million in 2014.
Fuel Price Effect: Airline profits largely depend on fuel prices. For 2015, average jet fuel prices are expected to stay at $99.90 per barrel, well below the $116.60 mark in 2014. The concern of oversupply has dragged oil prices by almost 60% since Jun 2014. Oil price is currently trading below $45 a barrel. This has benefited airline stocks immensely as the cut in oil prices has reduced their operating expenses significantly, thereby aiding the bottom line.
Although it is a fact that most carriers hedge at least some of their fuel costs, the majority of them should still continue to benefit considerably from the plunge in oil prices. Notably, carriers use a combination of calls, swaps and collars at varying WTI crude-equivalent price levels to hedge fuel costs.
Fleet Restructuring & Jet Renovation: According to the IATA forecast, 2015 will see commercial airline companies taking delivery of more than 1,700 new aircraft. This requires substantial investment, projected to reach approximately $180 billion. In order to expand its fleet, in Feb 2015, Allegiant Travel Company ( ALGT - Free Report ) -- the parent company of Allegiant Air -- announced a deal to buy two A320 planes. At present, the aircraft, which has a capacity of 177 seats, is being used by Philippine Airlines. The twin A320 aircraft will join the company's fleet before the end of 2015.
Buoyed by their sound financial health, several carriers have voiced their intentions to invest heavily for upgrading overall facilities associated with customer satisfaction. This is likely to result in greater travel demand, improved goodwill and eventually, a higher top line.
For instance, premier passenger carrier American Airlines Group ( AAL - Free Report ), formed through the merger of American Airlines and U.S. Airways Group in Dec 2013, recently announced that it will invest more than $2 billion to renovate airport lounges, modernize ticket counters and deploy satellite-based Internet access on its international flights. In the same vein, Delta Air Lines ( DAL - Free Report ) introduced a new five-tiered seating plan from Mar 1, 2015. According to Boeing, over the next 20 years, globally, airline companies are expected to invest around $5.2 trillion in fleet development.
Zacks Industry Rank
Within the Zacks Industry classification, airlines are broadly grouped into the Transportation sector (one of the 16 Zacks sectors).
We rank all the 260-plus industries in the 16 Zacks sectors based on the earnings outlook and fundamental strength of the constituent companies in each industry. To learn more visit: About Zacks Industry Rank .
As a point of reference, the outlook for industries in the top one-third of the list (with Zacks Industry Rank #88 and lower) is 'Positive,' the mid one-third of the list (between #89 and 176) is 'Neutral,' while the bottom one-third (#177 and above) is 'Negative.'
The Zacks Industry Rank for the airline industry is currently #95, indicating the group's near-term Neutral outlook.
Earnings Trends
The airline industry falls under the broader transportation sector. The broader Transportation sector reflects a stable growth pattern. The fourth quarter of 2014 is already over for the sector and was fairly good in terms of growth rates and beat ratios.
Total earnings for these companies are up 15.2% on 5.7% higher revenues, with 63.6% of the companies beating earnings estimates and 63.6% coming ahead of revenue expectations.
First-quarter 2015 earnings are expected to rise 32.3%, whereas revenues are expected to grow 5.5%. For 2015, the sector's earnings are poised to expand around 22.4%.
For more details about earnings for this sector and others, please read our ' Is Oil Driving Q1 Earnings Estimates Lower? ' and ' Earnings Trends .'
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
Get the full Report on ALGT - FREE
Get the full Report on AAL - FREE
Get the full Report on DAL - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Chicago, IL - March 24, 2015 - Today, Zacks Equity Research discusses Airlines, including Allegiant Travel Company ( ALGT - Free Report ), American Airlines Group ( AAL - Free Report ) and Delta Air Lines ( DAL - Free Report ). For instance, premier passenger carrier American Airlines Group ( AAL - Free Report ), formed through the merger of American Airlines and U.S. Airways Group in Dec 2013, recently announced that it will invest more than $2 billion to renovate airport lounges, modernize ticket counters and deploy satellite-based Internet access on its international flights. Get the full Report on ALGT - FREE Get the full Report on AAL - FREE Get the full Report on DAL - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
|
Chicago, IL - March 24, 2015 - Today, Zacks Equity Research discusses Airlines, including Allegiant Travel Company ( ALGT - Free Report ), American Airlines Group ( AAL - Free Report ) and Delta Air Lines ( DAL - Free Report ). For instance, premier passenger carrier American Airlines Group ( AAL - Free Report ), formed through the merger of American Airlines and U.S. Airways Group in Dec 2013, recently announced that it will invest more than $2 billion to renovate airport lounges, modernize ticket counters and deploy satellite-based Internet access on its international flights. Click to get this free report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Chicago, IL - March 24, 2015 - Today, Zacks Equity Research discusses Airlines, including Allegiant Travel Company ( ALGT - Free Report ), American Airlines Group ( AAL - Free Report ) and Delta Air Lines ( DAL - Free Report ). Click to get this free report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. For instance, premier passenger carrier American Airlines Group ( AAL - Free Report ), formed through the merger of American Airlines and U.S. Airways Group in Dec 2013, recently announced that it will invest more than $2 billion to renovate airport lounges, modernize ticket counters and deploy satellite-based Internet access on its international flights.
|
Chicago, IL - March 24, 2015 - Today, Zacks Equity Research discusses Airlines, including Allegiant Travel Company ( ALGT - Free Report ), American Airlines Group ( AAL - Free Report ) and Delta Air Lines ( DAL - Free Report ). For instance, premier passenger carrier American Airlines Group ( AAL - Free Report ), formed through the merger of American Airlines and U.S. Airways Group in Dec 2013, recently announced that it will invest more than $2 billion to renovate airport lounges, modernize ticket counters and deploy satellite-based Internet access on its international flights. Get the full Report on ALGT - FREE Get the full Report on AAL - FREE Get the full Report on DAL - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
|
8409.0
|
2015-03-24 00:00:00 UTC
|
Pre-Market Most Active for Mar 24, 2015 : WLL, BRX, RDS/B, SONS, WMB, FCX, CHK, XIV, FB, AAPL, QQQ, AAL
|
AAL
|
https://www.nasdaq.com/articles/pre-market-most-active-mar-24-2015-wll-brx-rdsb-sons-wmb-fcx-chk-xiv-fb-aapl-qqq-aal-2015
|
nan
|
nan
|
The NASDAQ 100 Pre-Market Indicator is up 4.93 to 4,450.47. The total Pre-Market volume is currently 7,612,288 shares traded.
The following are the most active stocks for the pre-market session :
Whiting Petroleum Corporation ( WLL ) is -7.91 at $30.48, with 1,899,397 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2015. The consensus EPS forecast is $-0.29. As reported by Zacks, the current mean recommendation for WLL is in the "buy range".
Brixmor Property Group Inc. ( BRX ) is -0.23 at $26.15, with 1,364,554 shares traded. As reported by Zacks, the current mean recommendation for BRX is in the "buy range".
Royal Dutch Shell PLC (RDS/B) is +0.27 at $66.25, with 638,556 shares traded. As reported by Zacks, the current mean recommendation for RDS/B is in the "strong buy range".
Sonus Networks, Inc. ( SONS ) is -3.96 at $9.20, with 446,581 shares traded., following a 52-week high recorded in prior regular session.
Williams Companies, Inc. (The) ( WMB ) is unchanged at $49.07, with 401,980 shares traded. As reported by Zacks, the current mean recommendation for WMB is in the "buy range".
Freeport-McMoran, Inc. ( FCX ) is -0.61 at $18.72, with 396,907 shares traded. As reported by Zacks, the current mean recommendation for FCX is in the "buy range".
Chesapeake Energy Corporation ( CHK ) is +0.49 at $14.60, with 278,767 shares traded. CHK's current last sale is 73% of the target price of $20.
VelocityShares Daily Inverse VIX Short Term ETN ( XIV ) is +0.03 at $35.28, with 138,931 shares traded. This represents a 43.01% increase from its 52 Week Low.
Facebook, Inc. ( FB ) is +0.23 at $84.66, with 135,380 shares traded. As reported by Zacks, the current mean recommendation for FB is in the "buy range".
Apple Inc. ( AAPL ) is +0.12 at $127.33, with 126,628 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2015. The consensus EPS forecast is $2.13. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.09 at $108.41, with 110,328 shares traded. This represents a 30.18% increase from its 52 Week Low.
American Airlines Group, Inc. ( AAL ) is -0.195 at $54.20, with 86,326 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group, Inc. ( AAL ) is -0.195 at $54.20, with 86,326 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The following are the most active stocks for the pre-market session : Whiting Petroleum Corporation ( WLL ) is -7.91 at $30.48, with 1,899,397 shares traded.
|
American Airlines Group, Inc. ( AAL ) is -0.195 at $54.20, with 86,326 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2015.
|
American Airlines Group, Inc. ( AAL ) is -0.195 at $54.20, with 86,326 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2015.
|
American Airlines Group, Inc. ( AAL ) is -0.195 at $54.20, with 86,326 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The following are the most active stocks for the pre-market session : Whiting Petroleum Corporation ( WLL ) is -7.91 at $30.48, with 1,899,397 shares traded.
|
8410.0
|
2015-03-23 00:00:00 UTC
|
Airline Industry Stock Outlook - March 2015 - Industry Outlook
|
AAL
|
https://www.nasdaq.com/articles/airline-industry-stock-outlook-march-2015-industry-outlook-2015-03-23
|
nan
|
nan
|
Lower Oil Prices: A Boon for the Airline Industry
Lower jet fuel prices have been a blessing for the airline industry given the inversely proportional relation between crude prices and the value of stocks. Crude prices have witnessed a downward trend over the last few months due to an over-supplied oil market, especially in the face of lackluster global demand. Since fuel costs account for a major chunk of an airline company's operating expenses, the persistent drop in oil prices has significantly boosted the bottom lines of stocks in the airline space.
The financial results of most airline stocks in the closing quarter of 2014 benefited from low fuel costs. Going forward, as forecast by the research firm International Air Transport Association (IATA), the industry will continue to see good times in 2015. IATA has projected a rise in the industry's global profit to $25 billion in 2015 from $19.9 billion in 2014.
The research firm has also predicted that airline companies will earn $7.08 per passenger in 2015, up 17.6% year over year. The firm holds that oil prices will continue to fall in 2015 with the average price in the year hovering around $85 per barrel. Moreover, according to the IATA forecast, cargo is expected to witness the strongest growth in 2015 since 2010. In fact, Cargo volumes are projected to register growth of 4.5% in 2015, higher than 4.3% witnessed in 2014.
Rosy Outlook for North America
Carriers in North America are expected to continue their strong performance in 2015 on the back of higher demand for travel, an improving labor market, consolidation and weak oil prices. Per the IATA forecast, 2015 net profit (after tax) is estimated to touch $13.2 billion for the region. Net margin is expected to grow to 6% in 2015 from 5.5% recorded in 2014.
The other regions, namely Asia-Pacific, Europe, Latin America, Middle East and Africa, are expected to generate post-tax net profit of $5 billion, $4 billion, $1 billion, $1.6 billion and $0.2 billion, respectively.
Underlying Factors for a Profitable 2015
There are several catalysts that are poised to trigger handsome profits for the overall airline industry in 2015. These include:
Passenger & Cargo: The IATA suggests that demand for passenger as well as cargo services will improve in 2015 from 2014 levels on the back of an improving economy. According to the forecast, 2015 is expected to see air travel growth of 7%, compared with the 5.7% growth witnessed in 2014. Moreover, the projected air travel growth is higher than the trend witnessed in the last 2 decades, according to the IATA report. Capacity is projected to increase by 7.3% in 2015 as opposed to 5.5% in 2014.
Customers, on the other hand, will benefit from cheaper air travel, thanks to low oil prices, as one-way fares are expected to be slashed by 5.1% this year. A recent report released by the U.S. Federal Aviation Administration forecasts an approximate 50% growth in the volume of fliers on U.S. airlines in the next two decades. The report states that 1.14 billion fliers are expected to be transported by U.S. carriers by 2035. The figure was 756.3 million in 2014.
Fuel Price Effect: Airline profits largely depend on fuel prices. For 2015, average jet fuel prices are expected to stay at $99.90 per barrel, well below the $116.60 mark in 2014. The concern of oversupply has dragged oil prices by almost 60% since Jun 2014. Oil price is currently trading below $45 a barrel. This has benefited airline stocks immensely as the cut in oil prices has reduced their operating expenses significantly, thereby aiding the bottom line.
Although it is a fact that most carriers hedge at least some of their fuel costs, the majority of them should still continue to benefit considerably from the plunge in oil prices. Notably, carriers use a combination of calls, swaps and collars at varying WTI crude-equivalent price levels to hedge fuel costs.
Fleet Restructuring & Jet Renovation: According to the IATA forecast, 2015 will see commercial airline companies taking delivery of more than 1,700 new aircraft. This requires substantial investment, projected to reach approximately $180 billion. In order to expand its fleet, in Feb 2015, Allegiant Travel Company ( ALGT ) -- the parent company of Allegiant Air -- announced a deal to buy two A320 planes. At present, the aircraft, which has a capacity of 177 seats, is being used by Philippine Airlines. The twin A320 aircraft will join the company's fleet before the end of 2015.
Buoyed by their sound financial health, several carriers have voiced their intentions to invest heavily for upgrading overall facilities associated with customer satisfaction. This is likely to result in greater travel demand, improved goodwill and eventually, a higher top line.
For instance, premier passenger carrier American Airlines Group ( AAL ), formed through the merger of American Airlines and U.S. Airways Group in Dec 2013, recently announced that it will invest more than $2 billion to renovate airport lounges, modernize ticket counters and deploy satellite-based Internet access on its international flights. In the same vein, Delta Air Lines ( DAL ) introduced a new five-tiered seating plan from Mar 1, 2015. According to Boeing, over the next 20 years, globally, airline companies are expected to invest around $5.2 trillion in fleet development.
Zacks Industry Rank
Within the Zacks Industry classification, airlines are broadly grouped into the Transportation sector (one of the 16 Zacks sectors).
We rank all the 260-plus industries in the 16 Zacks sectors based on the earnings outlook and fundamental strength of the constituent companies in each industry. To learn more visit: About Zacks Industry Rank .
As a point of reference, the outlook for industries in the top one-third of the list (with Zacks Industry Rank #88 and lower) is 'Positive,' the mid one-third of the list (between #89 and 176) is 'Neutral,' while the bottom one-third (#177 and above) is 'Negative.'
The Zacks Industry Rank for the airline industry is currently #95, indicating the group's near-term Neutral outlook.
Earnings Trends
The airline industry falls under the broader transportation sector. The broader Transportation sector reflects a stable growth pattern. The fourth quarter of 2014 is already over for the sector and was fairly good in terms of growth rates and beat ratios.
Total earnings for these companies are up 15.2% on 5.7% higher revenues, with 63.6% of the companies beating earnings estimates and 63.6% coming ahead of revenue expectations.
First-quarter 2015 earnings are expected to rise 32.3%, whereas revenues are expected to grow 5.5%. For 2015, the sector's earnings are poised to expand around 22.4%.
For more details about earnings for this sector and others, please read our ' Is Oil Driving Q1 Earnings Estimates Lower? ' and ' Earnings Trends .'
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DELTA AIR LINES (DAL): Free Stock Analysis Report
ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For instance, premier passenger carrier American Airlines Group ( AAL ), formed through the merger of American Airlines and U.S. Airways Group in Dec 2013, recently announced that it will invest more than $2 billion to renovate airport lounges, modernize ticket counters and deploy satellite-based Internet access on its international flights. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Crude prices have witnessed a downward trend over the last few months due to an over-supplied oil market, especially in the face of lackluster global demand.
|
Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. For instance, premier passenger carrier American Airlines Group ( AAL ), formed through the merger of American Airlines and U.S. Airways Group in Dec 2013, recently announced that it will invest more than $2 billion to renovate airport lounges, modernize ticket counters and deploy satellite-based Internet access on its international flights. Lower Oil Prices: A Boon for the Airline Industry Lower jet fuel prices have been a blessing for the airline industry given the inversely proportional relation between crude prices and the value of stocks.
|
Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. For instance, premier passenger carrier American Airlines Group ( AAL ), formed through the merger of American Airlines and U.S. Airways Group in Dec 2013, recently announced that it will invest more than $2 billion to renovate airport lounges, modernize ticket counters and deploy satellite-based Internet access on its international flights. Lower Oil Prices: A Boon for the Airline Industry Lower jet fuel prices have been a blessing for the airline industry given the inversely proportional relation between crude prices and the value of stocks.
|
For instance, premier passenger carrier American Airlines Group ( AAL ), formed through the merger of American Airlines and U.S. Airways Group in Dec 2013, recently announced that it will invest more than $2 billion to renovate airport lounges, modernize ticket counters and deploy satellite-based Internet access on its international flights. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Lower Oil Prices: A Boon for the Airline Industry Lower jet fuel prices have been a blessing for the airline industry given the inversely proportional relation between crude prices and the value of stocks.
|
8411.0
|
2015-03-22 00:00:00 UTC
|
When It Comes Time to Fly, This Is the Airline Americans Prefer Most
|
AAL
|
https://www.nasdaq.com/articles/when-it-comes-time-fly-airline-americans-prefer-most-2015-03-22
|
nan
|
nan
|
Source: Flickr user Mary-Lynn.
I don't know about you, but I'm not a big fan of flying. The waiting, the cramped conditions, and the exorbitant optional fees make it a fairly joyless process. Yet in spite of this, I hop on a plane about a half-dozen times a year because there's simply no more efficient way to get to my favorite vacation destinations -- and I'm not alone.
The airline industry gains altitude
According to the U.S. Department of Transportation's Bureau of Transportation Statistics, 846.4 million people in the U.S. traveled by airplane in 2014, including 662.2 million who were flying domestically. This is up substantially from 2002 (which is as far as the BTS' data goes back), when just 670.6 million people stepped onto a plane in the U.S. -- although I should note this figure could be skewed by the tragic 2001 terrorist attacks. Nonetheless, the desire to travel by plane is arguably higher than ever.
With that demand comes an enormous opportunity for the airline industry to cash in. BTS data shows that between 2002 and 2013, operating revenue for the U.S. airline industry nearly doubled, from $107.1 billion to $200.2 billion.
Source: U.S. Department of Transportation, Facebook.
But choosing which airline to fly with can often be difficult for consumers. With the sector being highly competitive, and airlines offering a varying degree of perks and pricing, selecting an airline can be downright overwhelming. This is why brand loyalty in the airline sector can be so crucial.
The importance of brand loyalty for the airline industry
Of course, deciphering the factors that drive brand loyalty isn't always cut-and-dried. That's why we'll once again turn to Brand Keys and its 19th annual Customer Loyalty Engagement Index to get an understanding of which airlines are the best at driving customer loyalty and engaging consumers, and which are missing the mark.
Brand Keys surveyed more than 36,000 people across 64 categories (including airlines) to get a feel for how they view a brand, how that brand engages with consumers, and ultimately how consumers compare that brand to its peers. The end result is Brand Keys' Customer Loyalty Engagement Index.
Source: Flickr user Eider Chaves.
Brand loyalty among airlines is important for two key reasons. First, word-of-mouth advertising is infinitely more powerful to the airline industry than any marketing campaign they can devise. You are far more likely to fly with an airline that a family member or friend recommends than to be moved by a 30-second ad from an airline. Not to mention, an unhappy customer is far more likely to voice their opinion on social media than a happy customer, so it's in the interests of all airlines to strive to meet or exceed the expectations of all passengers.
Second, I'd suggest that loyal customers tend to be more willing to accept ticket and fee price increases because they trust their airline. Now, this doesn't mean loyal customers couldn't care less about the money they're paying to fly. Practically all passengers are cost-conscious and looking for a good deal. However, loyal customers tend to be less reliant on steep sales to stick with an airline they trust, and are thus some of the best cash cows for airlines.
Now that you have a better grasp of why loyal customers are so important for the airline industry, let's have a look at which company is flying above its peers in terms of brand loyalty, and which airlines should be grounded.
Stuck on the tarmac
Overall, Brand Keys ranked eight airlines in terms of brand loyalty. Yes, there are far more than eight airlines to choose from, but Brand Keys needs a certain number of responses before an airline qualifies for ranking on the brand loyalty list. Ultimately, just eight made the cut.
As should come as little surprise, major airlines made up the entire bottom half of the loyalty rankings. Delta Air Lines came in fifth, American Airlines and US Airways, which are part of American Airlines Group ranked sixth and seventh, and United, which is part of United Continental Holdings , finished dead last.
Source: American Airlines, Facebook.
One thing working in favor of major airlines is the fact that their credit card programs do help coerce some fliers to stay loyal to a brand. By offering flight perks for credit card usage, companies like United and American Airlines can keep at least some of their customers from jumping ship to a rival.
However, there are a number of factors working against Delta, United and American Airlines Group. For starters, they can often be undercut on price by regional or national airlines, which instead make a good chunk of their profits from optional fees (e.g., bag checks, food, and so on). Second, major airlines are often operating some of the oldest fleets of planes. Although most passengers aren't thinking about the age of the plane they're flying on, there's little denying that newer planes have better amenities, which can go a long way toward pleasing consumers and making a flight more entertaining. Finally, major airlines have difficulty in shutting down unprofitable routes. With hubs across the United States, profitable or not, major airlines face consumer expectations to maintain their routes.
Airlines that consumers favor most
By contrast, you'll discover that some of the best-ranking airlines for brand loyalty have few of these problems.
Source: Southwest Airlines.
Southwest Airlines and WestJet Airlines tied for the No. 3 spot in the airline brand loyalty rankings, while JetBlue slid into the second spot. All three of these airlines maintain a "small" feel, even though WestJet might be the only one here truly qualified to be a small airline, with just over 100 planes, compared to JetBlue and Southwest, which have two and six times as many planes, respectively.
Both Southwest and JetBlue offer a number of perks that make flying with these airlines enjoyable for passengers. Southwest allows passengers to check in two bags for free, while JetBlue allows select customers to check a bag for free. These two airlines also have relatively young fleets, all things considered. AirFleets.net pegs JetBlue's fleet age at eight years and Southwest's at 11.8 years. This means consumers are likely to find new technological advances in its fleet -- perhaps plugs for electronic devices and/or seatback television screens for the ultimate entertainment experience while flying.
Source: Flickr user Nick Coombe.
But taking the crown as the airline fliers prefer most is Air Canada , for a second straight year. Though it's not as well known as the major airlines, Air Canada is no stranger to receiving accolades, having been named the best airline in North America by Global Traveler , and the best North American in-flight experience by Premier Traveler .
Source: Air Canada, Facebook.
One factor that stands out is that Air Canada's optional fees are actually quite reasonable. Among the 15 North American airlines, only it and Southwest don't charge over-the-phone or in-person booking fees, and it charges the lowest price to bring your pet into the cabin ($50) of all 15 airlines ranked by SmarterTravel.com. In an era in which consumers feel as if they're being nickel-and-dimed by the airline industry, having reasonable fees can go a long way to building customer rapport.
Another key component to Air Canada's success is its enjoyable in-flight experience, highlighted by the enRoute in-Flight entertainment system. This is a touchscreen system with hundreds of hours of TV shows, movies, and audio selections on demand for the passenger. Seats also come with a charger so passengers can use their own mobile devices and laptops.
While brand loyalty is just one measure of success for the airline industry, the implied benefit here is that airlines that make their customers the happiest should have the most successful growth prospects. For investors, it means Air Canada, JetBlue, and Southwest Airlines could be a great starting point for further research for those interested in getting investing exposure to the airline sector.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article When It Comes Time to Fly, This Is the Airline Americans Prefer Most originally appeared on Fool.com.
Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For starters, they can often be undercut on price by regional or national airlines, which instead make a good chunk of their profits from optional fees (e.g., bag checks, food, and so on). This means consumers are likely to find new technological advances in its fleet -- perhaps plugs for electronic devices and/or seatback television screens for the ultimate entertainment experience while flying. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
Brand Keys surveyed more than 36,000 people across 64 categories (including airlines) to get a feel for how they view a brand, how that brand engages with consumers, and ultimately how consumers compare that brand to its peers. By offering flight perks for credit card usage, companies like United and American Airlines can keep at least some of their customers from jumping ship to a rival. For investors, it means Air Canada, JetBlue, and Southwest Airlines could be a great starting point for further research for those interested in getting investing exposure to the airline sector.
|
Now that you have a better grasp of why loyal customers are so important for the airline industry, let's have a look at which company is flying above its peers in terms of brand loyalty, and which airlines should be grounded. Yes, there are far more than eight airlines to choose from, but Brand Keys needs a certain number of responses before an airline qualifies for ranking on the brand loyalty list. While brand loyalty is just one measure of success for the airline industry, the implied benefit here is that airlines that make their customers the happiest should have the most successful growth prospects.
|
Brand Keys surveyed more than 36,000 people across 64 categories (including airlines) to get a feel for how they view a brand, how that brand engages with consumers, and ultimately how consumers compare that brand to its peers. Second, major airlines are often operating some of the oldest fleets of planes. AirFleets.net pegs JetBlue's fleet age at eight years and Southwest's at 11.8 years.
|
8412.0
|
2015-03-21 00:00:00 UTC
|
Look Out American Airlines, Ryanair is Entering Your Airspace!
|
AAL
|
https://www.nasdaq.com/articles/look-out-american-airlines-ryanair-entering-your-airspace-2015-03-21
|
nan
|
nan
|
Since its founding three decades ago, Irish budget airline Ryanair has built a big business flying bargain-seeking travelers around Europe. In doing so, it has legitimized the low-fare/high-fee ultra-low-cost carrier business model, which has been imitated by numerous other airlines across the world.
Ryanair has revolutionized low-cost air travel in Europe. Photo: Wikimedia Commons
Now Ryanair wants to bring its act to the trans-Atlantic market. When it begins flying to the U.S. -- probably around 2020 -- it could bring some much-needed competition to a market currently dominated by American Airlines , Delta Air Lines , United Continental , and their European joint-venture partners.
Ryanair's big announcement
On Monday, Ryanair's board approved plans to begin trans-Atlantic service near the end of the decade. The carrier announced that one-way fares would start at an eye-popping £10 -- roughly $15 at current exchange rates -- although taxes and fees for things like baggage and seat selection could add hundreds of dollars to the total cost.
By contrast, even cheap trans-Atlantic plane tickets cost roughly $800-$1,000 round-trip today, including taxes. Economy round-trip tickets on legacy carriers such as American, Delta, and United can easily exceed $2,000 (including taxes and fees) for nonstop flights during the peak summer travel season.
Flights to Europe are very pricey compared to transcontinental flights in the U.S. Photo: American Airlines.
That said, Ryanair won't actually sell many seats for $15. Most one-way economy tickets would be priced at £99 (roughly $150) or more, and Ryanair is considering filling up to half of the space on its trans-Atlantic jets with more expensive premium seats.
The nitty-gritty details
Ryanair's board approved flights between up to 14 European cities and a similar number of U.S. destinations, according to The Guardian . U.S. cities receiving Ryanair service could include New York, Boston, Chicago, and Miami, with flights to cities such as London, Dublin, and Berlin.
Cheap flights across the Atlantic would be appealing to many travelers, despite the nickel-and-diming that is a key part of Ryanair's business model. However, the whole concept depends on Ryanair striking a deal with Boeing or Airbus for long-haul aircraft.
Ryanair is interested in Boeing's Dreamliner for its long-haul flights. Photo: The Boeing Co.
For the business case to make sense, Ryanair must buy planes that are fuel-efficient but also reasonably priced. Ryanair operates an all-Boeing fleet today, and CEO Michael O'Leary has expressed interest in Boeing's Dreamliner for long-haul operations -- just not at the going price!
However, Boeing's Dreamliner is more or less sold out through 2020. Boeing isn't likely to need big discounts to push the backlog out even further, given the Dreamliner's stellar range and fuel efficiency. This might give Airbus an opportunity to sell the A330neo, which it has been marketing as a cheaper alternative that offers enough range for most routes and fuel efficiency that is almost as good as the Dreamliner's.
What it could mean
Ryanair isn't the first budget airline to attempt to break into the trans-Atlantic market. However, its well-known brand and large route network in Europe will give it a leg up against less-established carriers.
Market leaders including American Airlines, Delta Air Lines, and United Continental don't have to worry too much about the threat from Ryanair for now. These legacy carriers get a significant proportion of their revenue on trans-Atlantic routes from lucrative business travelers.
Even if Ryanair includes a significant number of premium seats on its flights, business travelers tend to be loyal to one airline. Since they're not paying for their own tickets, they care more about service and frequent flier rewards than price. This limits the ability of budget carriers to compete on price with legacy carriers for business traffic.
On the other hand, American, Delta, and United still need to fill the "back of the plane" at reasonable fares to maintain their profitability. If Ryanair significantly undercuts them on fares, they could have trouble selling economy tickets without big discounts.
It will be years until Ryanair begins U.S. flights, and it could take a decade or more for it to carry out its growth plans here. But in the long run, Ryanair flights from the U.S. to Europe could fundamentally disrupt the airline industry, leading to more bargain fares for trans-Atlantic travelers.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Look Out American Airlines, Ryanair is Entering Your Airspace! originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of The Boeing Company. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
When it begins flying to the U.S. -- probably around 2020 -- it could bring some much-needed competition to a market currently dominated by American Airlines , Delta Air Lines , United Continental , and their European joint-venture partners. The carrier announced that one-way fares would start at an eye-popping £10 -- roughly $15 at current exchange rates -- although taxes and fees for things like baggage and seat selection could add hundreds of dollars to the total cost. Economy round-trip tickets on legacy carriers such as American, Delta, and United can easily exceed $2,000 (including taxes and fees) for nonstop flights during the peak summer travel season.
|
Ryanair's big announcement On Monday, Ryanair's board approved plans to begin trans-Atlantic service near the end of the decade. By contrast, even cheap trans-Atlantic plane tickets cost roughly $800-$1,000 round-trip today, including taxes. Market leaders including American Airlines, Delta Air Lines, and United Continental don't have to worry too much about the threat from Ryanair for now.
|
Ryanair's big announcement On Monday, Ryanair's board approved plans to begin trans-Atlantic service near the end of the decade. Even if Ryanair includes a significant number of premium seats on its flights, business travelers tend to be loyal to one airline. But in the long run, Ryanair flights from the U.S. to Europe could fundamentally disrupt the airline industry, leading to more bargain fares for trans-Atlantic travelers.
|
Economy round-trip tickets on legacy carriers such as American, Delta, and United can easily exceed $2,000 (including taxes and fees) for nonstop flights during the peak summer travel season. Market leaders including American Airlines, Delta Air Lines, and United Continental don't have to worry too much about the threat from Ryanair for now. Even if Ryanair includes a significant number of premium seats on its flights, business travelers tend to be loyal to one airline.
|
8413.0
|
2015-03-21 00:00:00 UTC
|
Will the U.S. Stop Emirates and Other Gulf Airlines From Expanding?
|
AAL
|
https://www.nasdaq.com/articles/will-us-stop-emirates-and-other-gulf-airlines-expanding-2015-03-21
|
nan
|
nan
|
Recently, the three top U.S. airlines -- American Airlines , Delta Air Lines , and United Continental -- have been lobbying the federal government hard to block the rapid expansion of Middle Eastern carriers into the United States.
The U.S. airlines have banded together as the "Partnership for Open and Fair Skies." They allege that Emirates, Etihad Airways, and Qatar Airways have received at least $40 billion in government subsidies in the past decade, putting the U.S. carriers at a big disadvantage.
The top U.S. airlines claim that the big Gulf carriers are government-subsidized.
So far, the federal government appears relatively receptive to the U.S. carriers' complaints. However, Washington is unlikely to bring the hammer down hard on the Gulf carriers, even if they are competing unfairly.
Clash over subsidies
Naturally, the Gulf carriers deny the allegations that they are government-subsidized. Emirates CEO Tim Clark went so far as to demand that American, Delta, and United apologize for their accusations after Emirates offers its full rebuttal.
The U.S. government has been more intrigued by the airlines' claims. The interagency team reviewing the complaint has sent the airlines 20 questions about the report, and the government is taking the claims seriously , according to Reuters.
Based on the evidence compiled by the Partnership for Open and Fair Skies, the case against Qatar Airways and Etihad Airways appears very straightforward. Whether Emirates has received significant market-distorting subsidies is somewhat less obvious.
It's not that simple
However, it's not clear how the U.S. government will react, even if it finds evidence that all three Gulf carriers have benefited from subsidies. First, the U.S. has been a huge promoter of "Open Skies" agreements that deregulate international routes. FedEx and JetBlue don't want to lose the benefits of Open Skies, and have vocally opposed the position taken by American, Delta, and United.
Second, the Gulf carriers have become three of Boeing 's best customers. As of the end of February, Emirates had 199 Boeing jets on order: 49 of the current 777-300ER model and 150 of the next-generation 777X.
The Gulf carriers have been some of Boeing's best customers lately. Photo source: The Boeing Co.
Additionally, Etihad has 95 outstanding orders for Boeing widebodies: 69 Dreamliners, 25 777X aircraft, and one 777 freighter. Lastly, Qatar Airways has 71 Boeing widebodies on order: 11 current-generation 777s (six 777-300ERs and five freighters), 50 777Xs, and 10 Dreamliners.
At current list prices, these planes would cost more than $120 billion. Incorporating a typical discount of a little more than 50%, the backlog from the three Gulf airlines is still worth about $60 billion. That's equivalent to a full year of sales for Boeing's commercial airplane segment.
If the U.S. were to crack down on the Gulf carriers' expansion, not only would they need fewer airplanes, they also might retaliate by shifting orders to Boeing rival Airbus . (All three are also major Airbus customers.) This could decimate Boeing's 777X program, for which the Gulf carriers are the top three customers, representing more than three-quarters of the current backlog.
Balancing priorities
To some extent, the rapid growth of the Gulf carriers in the U.S. and the low economy fares they charge have constrained the international growth of American Airlines, Delta Air Lines, and United Continental. If their growth has been aided by state subsidies, then it would be fair to penalize them to level the playing field.
However, just because it might be fair doesn't mean it would be in the national interest. While the government might want to protect U.S. airlines, it also needs to look out for broader economic and strategic interests.
The economic impact of U.S. airlines adding a few extra routes to the Middle East and the Indian subcontinent would be overshadowed by a potential cutback in Boeing orders from the Gulf carriers. The UAE and Qatar are also important military partners in an unstable region. As a result, anything more than a slap on the wrist for the Gulf carriers would be very surprising.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Will the U.S. Stop Emirates and Other Gulf Airlines From Expanding? originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of JetBlue Airways and The Boeing Company. The Motley Fool recommends FedEx. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
FedEx and JetBlue don't want to lose the benefits of Open Skies, and have vocally opposed the position taken by American, Delta, and United. The economic impact of U.S. airlines adding a few extra routes to the Middle East and the Indian subcontinent would be overshadowed by a potential cutback in Boeing orders from the Gulf carriers. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
Recently, the three top U.S. airlines -- American Airlines , Delta Air Lines , and United Continental -- have been lobbying the federal government hard to block the rapid expansion of Middle Eastern carriers into the United States. They allege that Emirates, Etihad Airways, and Qatar Airways have received at least $40 billion in government subsidies in the past decade, putting the U.S. carriers at a big disadvantage. Balancing priorities To some extent, the rapid growth of the Gulf carriers in the U.S. and the low economy fares they charge have constrained the international growth of American Airlines, Delta Air Lines, and United Continental.
|
Recently, the three top U.S. airlines -- American Airlines , Delta Air Lines , and United Continental -- have been lobbying the federal government hard to block the rapid expansion of Middle Eastern carriers into the United States. They allege that Emirates, Etihad Airways, and Qatar Airways have received at least $40 billion in government subsidies in the past decade, putting the U.S. carriers at a big disadvantage. Balancing priorities To some extent, the rapid growth of the Gulf carriers in the U.S. and the low economy fares they charge have constrained the international growth of American Airlines, Delta Air Lines, and United Continental.
|
Second, the Gulf carriers have become three of Boeing 's best customers. The Gulf carriers have been some of Boeing's best customers lately. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
8414.0
|
2015-03-19 00:00:00 UTC
|
The Zacks Analyst Blog Highlights: American Airlines Group, Ryanair Holdings, JetBlue Airways, Delta Airlines and United Continental Holdings - Press Releases
|
AAL
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-american-airlines-group-ryanair-holdings-jetblue
|
nan
|
nan
|
For Immediate Release
Chicago, IL - March 19, 2015 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the American Airlines Group Inc. ( AAL - Free Report ), Ryanair Holdings ( RYAAY - Free Report ), JetBlue Airways Corporation ( JBLU - Free Report ), Delta Airlines ( DAL - Free Report ) and United Continental Holdings ( UAL - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Wednesday's Analyst Blog:
Airline Stock Roundup
It was a week which saw a new member from the airline space making its way into the coveted S&P 500 index - American Airlines Group Inc. ( AAL - Free Report ). The carrier is set to join the much sought-after list from Mar 20 (after market close), replacing Allergan, which has been acquired by Actavis.
European low-cost carrier Ryanair Holdings ( RYAAY - Free Report ) also grabbed headlines during the week with its board approving plans to connect destinations between the U.S. and Europe at amazingly low fares. However, the transatlantic service is unlikely to commence before another four/five years.
Low-cost carrier JetBlue Airways Corporation ( JBLU - Free Report ) was also in the news for a bilateral codeshare agreement inked with privately held Silver Airways. JetBlue also announced healthy traffic data for the month of February. Important metrics such as revenue passenger miles (RPMs - a measure of air traffic), available seat miles (measure of capacity) and load factor (% of seats filled by passengers) grew on a year-over-year basis during the month.
On the price front, most airline stocks gained over the past 5 trading days, benefiting from plummeting oil prices . As a result, the NYSE ARCA Airline index climbed 5% over the said period.
(Read the last 'Airline Stock Roundup' here: Delta-Led Consortium Complains, Republic Airways Included in S&P 600 )
Recap of the Most Important Stories Over the Past Week
1. JetBlue Airways inked a codeshare agreement with Florida-based Silver Airways with the aim to improve customer convenience. The current deal extends the Dec 2013 ticketing partnership signed by the two companies (read more: JetBlue, Silver Airways Ink Codeshare Pact; Strengthen Ties ).
Furthermore, JetBlue Airways' Feb 2015 air traffic was up 10% year over year to 2.9 billion. Capacity improved 7.4% to 3.47 billion and load factor increased to 83.5% from 81.6% in Feb 2014 (read more: JetBlue's February Traffic Rises on Favorable Factors ).
2. American Airlines Group, formed following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, is set to join the S&P 500 after market close on Mar 20. The carrier has been added to the S&P 500 GICS "Industrials" sector or Airlines Sub-Industry index (read more: American Airlines Group to Enter Coveted S&P 500 ).
3. According to media reports, the board of Ryanair has approved the carrier's plans to connect destinations across the U.S. and Europe. Approval has been gained to operate to and from around 14 European cities and almost an equivalent number of American cities. Ticket prices have been kept unbelievably low with one-way tickets between US and Europe costing approximately $15 (promotional offer) according to a report at investors.com.
The services, however, are not commencing immediately. It will take another four to five years as Ryanair needs to bolster its fleet before entering the lucrative transatlantic market. In the event of Ryanair entering the U.S. market, competition would intensify for domestic carriers that already face the threat of market share reduction from Gulf carriers.
4. According to a report appearing in the Reuters, the dispute between US carriers and their Gulf counterparts took a fresh turn with the U.S. government asking Delta Airlines ( DAL - Free Report ), United Continental Holdings ( UAL - Free Report ) and American Airlines Group to furnish more information to support their claim of massive subsidies enjoyed by certain Gulf carriers.
The U.S. carriers, in a complaint to the Obama administration, had alleged that massive government subsidies have allowed Gulf carriers like Qatar Airways, Etihad Airways and Emirates to expand their fleet and international operations substantially, in turn, eating into their market share. According to the report, the Obama administration has put forward approximately 20 questions to representatives of the U.S. carriers based on their allegations.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today .
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros .
Get the full Report on AAL - FREE
Get the full Report on RYAAY - FREE
Get the full Report on JBLU - FREE
Get the full Report on DAL - FREE
Get the full Report on UAL - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AMER AIRLINES (AAL): Free Stock Analysis Report
RYANAIR HLDGS (RYAAY): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Stocks recently featured in the blog include the American Airlines Group Inc. ( AAL - Free Report ), Ryanair Holdings ( RYAAY - Free Report ), JetBlue Airways Corporation ( JBLU - Free Report ), Delta Airlines ( DAL - Free Report ) and United Continental Holdings ( UAL - Free Report ). Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup It was a week which saw a new member from the airline space making its way into the coveted S&P 500 index - American Airlines Group Inc. ( AAL - Free Report ). Get the full Report on AAL - FREE Get the full Report on RYAAY - FREE Get the full Report on JBLU - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
|
Stocks recently featured in the blog include the American Airlines Group Inc. ( AAL - Free Report ), Ryanair Holdings ( RYAAY - Free Report ), JetBlue Airways Corporation ( JBLU - Free Report ), Delta Airlines ( DAL - Free Report ) and United Continental Holdings ( UAL - Free Report ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup It was a week which saw a new member from the airline space making its way into the coveted S&P 500 index - American Airlines Group Inc. ( AAL - Free Report ).
|
Stocks recently featured in the blog include the American Airlines Group Inc. ( AAL - Free Report ), Ryanair Holdings ( RYAAY - Free Report ), JetBlue Airways Corporation ( JBLU - Free Report ), Delta Airlines ( DAL - Free Report ) and United Continental Holdings ( UAL - Free Report ). Get the full Report on AAL - FREE Get the full Report on RYAAY - FREE Get the full Report on JBLU - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup It was a week which saw a new member from the airline space making its way into the coveted S&P 500 index - American Airlines Group Inc. ( AAL - Free Report ). Stocks recently featured in the blog include the American Airlines Group Inc. ( AAL - Free Report ), Ryanair Holdings ( RYAAY - Free Report ), JetBlue Airways Corporation ( JBLU - Free Report ), Delta Airlines ( DAL - Free Report ) and United Continental Holdings ( UAL - Free Report ). Get the full Report on AAL - FREE Get the full Report on RYAAY - FREE Get the full Report on JBLU - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
|
8415.0
|
2015-03-18 00:00:00 UTC
|
Airline Stock Roundup: American Airlines to Join S&P 500 - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/airline-stock-roundup%3A-american-airlines-to-join-sp-500-analyst-blog-2015-03-18
|
nan
|
nan
|
It was a week which saw a new member from the airline space making its way into the coveted S&P 500 index - American Airlines Group Inc.AAL . The carrier is set to join the much sought-after list from Mar 20 (after market close), replacing Allergan, which has been acquired by Actavis.
European low-cost carrier Ryanair HoldingsRYAAY also grabbed headlines during the week with its board approving plans to connect destinations between the U.S. and Europe at amazingly low fares. However, the transatlantic service is unlikely to commence before another four/five years.
Low-cost carrier JetBlue Airways CorporationJBLU was also in the news for a bilateral codeshare agreement inked with privately held Silver Airways. JetBlue also announced healthy traffic data for the month of February. Important metrics such as revenue passenger miles (RPMs - a measure of air traffic), available seat miles (measure of capacity) and load factor (% of seats filled by passengers) grew on a year-over-year basis during the month.
On the price front, most airline stocks gained over the past 5 trading days, benefiting from plummeting oil prices . As a result, the NYSE ARCA Airline index climbed 5% over the said period.
(Read the last 'Airline Stock Roundup' here: Delta-Led Consortium Complains, Republic Airways Included in S&P 600 )
Recap of the Most Important Stories Over the Past Week
1. JetBlue Airways inked a codeshare agreement with Florida-based Silver Airways with the aim to improve customer convenience. The current deal extends the Dec 2013 ticketing partnership signed by the two companies (read more: JetBlue, Silver Airways Ink Codeshare Pact; Strengthen Ties ).
Furthermore, JetBlue Airways' Feb 2015 air traffic was up 10% year over year to 2.9 billion. Capacity improved 7.4% to 3.47 billion and load factor increased to 83.5% from 81.6% in Feb 2014 (read more: JetBlue's February Traffic Rises on Favorable Factors ).
2. American Airlines Group, formed following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, is set to join the S&P 500 after market close on Mar 20. The carrier has been added to the S&P 500 GICS "Industrials" sector or Airlines Sub-Industry index (read more: American Airlines Group to Enter Coveted S&P 500 ).
3. According to media reports, the board of Ryanair has approved the carrier's plans to connect destinations across the U.S. and Europe. Approval has been gained to operate to and from around 14 European cities and almost an equivalent number of American cities. Ticket prices have been kept unbelievably low with one-way tickets between US and Europe costing approximately $15 (promotional offer) according to a report at investors.com.
The services, however, are not commencing immediately. It will take another four to five years as Ryanair needs to bolster its fleet before entering the lucrative transatlantic market. In the event of Ryanair entering the U.S. market, competition would intensify for domestic carriers that already face the threat of market share reduction from Gulf carriers.
4. According to a report appearing in the Reuters, the dispute between US carriers and their Gulf counterparts took a fresh turn with the U.S. government asking Delta AirlinesDAL , United Continental HoldingsUAL and American Airlines Group to furnish more information to support their claim of massive subsidies enjoyed by certain Gulf carriers.
The U.S. carriers, in a complaint to the Obama administration, had alleged that massive government subsidies have allowed Gulf carriers like Qatar Airways, Etihad Airways and Emirates to expand their fleet and international operations substantially, in turn, eating into their market share. According to the report, the Obama administration has put forward approximately 20 questions to representatives of the U.S. carriers based on their allegations.
5. Troubles do not seem to end at Germany's Deutsche Lufthansa AktiengesellschaftDLAKY with the carrier's pilots calling yet another strike on the non-resolution of disputes regarding early retirement benefits. Furthermore, the German carrier's plan to expand low-cost offerings has also come under attack from the pilots. The pilots had gone on strike several times over the same issue in 2014, resulting in flight cancellations and loss of profit for the airline.
Performance
The following table shows the price movement of the major airline players over the past week and during the last 6 months.
As the chart suggests, all major airline stocks traded in the green over the past week due to plummeting oil prices, with the exception of GOL Linhas Aereas InteligentesGOL , which lost 5.86%. Additionally, most of the stocks have also gained over the last six months, with JetBlue witnessing the highest upside (71.07%) over the period.
What's Next in the Airline Biz?
With no major event lined up over the next five trading days, stay tuned for the usual news updates. Investors are also likely to keenly await further updates on the dispute between U.S. carriers and their Gulf counterparts.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
RYANAIR HLDGS (RYAAY): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
GOL LINHAS-ADR (GOL): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
LUFTHANSA -ADR (DLAKY): Get Free Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
It was a week which saw a new member from the airline space making its way into the coveted S&P 500 index - American Airlines Group Inc.AAL . Click to get this free report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report GOL LINHAS-ADR (GOL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. European low-cost carrier Ryanair HoldingsRYAAY also grabbed headlines during the week with its board approving plans to connect destinations between the U.S. and Europe at amazingly low fares.
|
Click to get this free report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report GOL LINHAS-ADR (GOL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. It was a week which saw a new member from the airline space making its way into the coveted S&P 500 index - American Airlines Group Inc.AAL . Important metrics such as revenue passenger miles (RPMs - a measure of air traffic), available seat miles (measure of capacity) and load factor (% of seats filled by passengers) grew on a year-over-year basis during the month.
|
Click to get this free report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report GOL LINHAS-ADR (GOL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. It was a week which saw a new member from the airline space making its way into the coveted S&P 500 index - American Airlines Group Inc.AAL . According to a report appearing in the Reuters, the dispute between US carriers and their Gulf counterparts took a fresh turn with the U.S. government asking Delta AirlinesDAL , United Continental HoldingsUAL and American Airlines Group to furnish more information to support their claim of massive subsidies enjoyed by certain Gulf carriers.
|
It was a week which saw a new member from the airline space making its way into the coveted S&P 500 index - American Airlines Group Inc.AAL . Click to get this free report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report GOL LINHAS-ADR (GOL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On the price front, most airline stocks gained over the past 5 trading days, benefiting from plummeting oil prices .
|
8416.0
|
2015-03-17 00:00:00 UTC
|
JetBlue, Silver Airways Ink Codeshare Pact; Strengthen Ties - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/jetblue-silver-airways-ink-codeshare-pact-strengthen-ties-analyst-blog-2015-03-17
|
nan
|
nan
|
Recently, low-cost carrier JetBlue Airways Corp.JBLU entered into a bilateral codeshare agreement with FL-based Silver Airways.
Now on, passengers of both the carriers will be able to fly to a larger number of destinations between Florida and the Bahamas. Apart from extended and seamless connectivity between flights of the carriers, customers of the airlines will enjoy easy one-stop ticketing, more flying options and better baggage check-in facilities. Moreover, JetBlue customers will earn TrueBlue frequent flyer points on all Silver Airways flights.
However, travelers will be able to enjoy the benefits of the codeshare agreement from Mar 29, 2015. Notably, the tickets will be available for easy booking on the website - JetBlue.com.
In line with the deal, both the carriers are planning to add 13 new routes to Silver Airways' portfolio of seven Bahamian destinations in the forthcoming quarters. However, the network expansion is subject to receipt of regulatory approval.
Silver Airways operates a large number of intercity flights in Florida. Moreover, it offers the best connectivity between Florida and the Bahamas. Hence, the deal will allow JetBlue to place 'B6' code on more than 70% of Silver Airways Florida-bound flights.
Also, apart from Gainesville, Key West, Pensacola, and Tallahassee, important cities like Fort Lauderdale, Fort Myers, Orlando, and Tampa will also come under JetBlue's range, thus helping the carrier boost its presence in both Florida and the Bahamas. On the other hand, Silver Airways passengers will be able to take advantage from JetBlue's network which includes destinations in Latin America and the Caribbean.
Within a period of 19 months since its inception, Silver Airways has already struck codeshare agreements with premier carriers like American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL .
Airline partnerships are a strategic key to a carrier's growth prospects as they provide expansion opportunities without incurring heavy costs. Thus, the new agreement will help both JetBlue and Silver Airways enhance services by controlling costs and taking advantage of travel benefits.
Hence, we believe that these tie-ups with leading carriers will not only enhance the flight experience for passengers but will also expand the carriers' networks.
JetBlue currently sports a Zacks Rank #1 (Strong Buy). Another favorably-ranked stock in the airline space is Allegiant Travel Company ALGT with a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Within a period of 19 months since its inception, Silver Airways has already struck codeshare agreements with premier carriers like American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from extended and seamless connectivity between flights of the carriers, customers of the airlines will enjoy easy one-stop ticketing, more flying options and better baggage check-in facilities.
|
Within a period of 19 months since its inception, Silver Airways has already struck codeshare agreements with premier carriers like American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Within a period of 19 months since its inception, Silver Airways has already struck codeshare agreements with premier carriers like American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Recently, low-cost carrier JetBlue Airways Corp.JBLU entered into a bilateral codeshare agreement with FL-based Silver Airways.
|
Within a period of 19 months since its inception, Silver Airways has already struck codeshare agreements with premier carriers like American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Now on, passengers of both the carriers will be able to fly to a larger number of destinations between Florida and the Bahamas.
|
8417.0
|
2015-03-17 00:00:00 UTC
|
Pre-Market Most Active for Mar 17, 2015 : AAL, TVIX, MBLY, AAPL, BABA, MGM, QQQ, SUM, ALU, NOK, XIV, CRZO
|
AAL
|
https://www.nasdaq.com/articles/pre-market-most-active-mar-17-2015-aal-tvix-mbly-aapl-baba-mgm-qqq-sum-alu-nok-xiv-crzo
|
nan
|
nan
|
The NASDAQ 100 Pre-Market Indicator is down -2.9 to 4,367.57. The total Pre-Market volume is currently 10,335,076 shares traded.
The following are the most active stocks for the pre-market session :
American Airlines Group, Inc. ( AAL ) is +2.57 at $52.79, with 712,128 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range".
VelocityShares Daily 2x VIX Short Term ETN ( TVIX ) is +0.05 at $2.06, with 504,417 shares traded. This represents a 4.57% increase from its 52 Week Low.
Mobileye N.V. ( MBLY ) is -0.79 at $41.66, with 377,419 shares traded. As reported by Zacks, the current mean recommendation for MBLY is in the "buy range".
Apple Inc. ( AAPL ) is +0.49 at $125.44, with 300,529 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Alibaba Group Holding Limited ( BABA ) is +0.02 at $84.02, with 217,322 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
MGM Resorts International ( MGM ) is +0.98 at $20.64, with 181,952 shares traded. As reported by Zacks, the current mean recommendation for MGM is in the "buy range".
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.3 at $106.40, with 177,707 shares traded. This represents a 27.76% increase from its 52 Week Low.
Summit Materials, Inc. ( SUM ) is unchanged at $21.10, with 175,000 shares traded.
Alcatel Lucent ( ALU ) is -0.11 at $3.80, with 166,300 shares traded. ALU's current last sale is 108.57% of the target price of $3.5.
Nokia Corporation ( NOK ) is -0.08 at $7.70, with 142,206 shares traded. NOK's current last sale is 84.62% of the target price of $9.1.
VelocityShares Daily Inverse VIX Short Term ETN ( XIV ) is -0.58 at $31.93, with 132,767 shares traded. This represents a 29.43% increase from its 52 Week Low.
Carrizo Oil & Gas, Inc. ( CRZO ) is -2.16 at $45.20, with 130,596 shares traded. As reported by Zacks, the current mean recommendation for CRZO is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The following are the most active stocks for the pre-market session : American Airlines Group, Inc. ( AAL ) is +2.57 at $52.79, with 712,128 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". VelocityShares Daily 2x VIX Short Term ETN ( TVIX ) is +0.05 at $2.06, with 504,417 shares traded.
|
The following are the most active stocks for the pre-market session : American Airlines Group, Inc. ( AAL ) is +2.57 at $52.79, with 712,128 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". VelocityShares Daily 2x VIX Short Term ETN ( TVIX ) is +0.05 at $2.06, with 504,417 shares traded.
|
The following are the most active stocks for the pre-market session : American Airlines Group, Inc. ( AAL ) is +2.57 at $52.79, with 712,128 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". As reported by Zacks, the current mean recommendation for MBLY is in the "buy range".
|
The following are the most active stocks for the pre-market session : American Airlines Group, Inc. ( AAL ) is +2.57 at $52.79, with 712,128 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is down -2.9 to 4,367.57.
|
8418.0
|
2015-03-17 00:00:00 UTC
|
American Airlines Group (AAL) to Enter Coveted S&P 500 - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-aal-to-enter-coveted-sp-500-analyst-blog-2015-03-17
|
nan
|
nan
|
American Airlines Group Inc.AAL , formed following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, is set to join the S&P 500 after market close on Mar 20. The carrier will replace healthcare company Allergan AGN which will be acquired by specialty pharmaceutical company Actavis ACT . The news of American Airlines making its way into the much sought-after index impacted the stock positively.
With a portfolio of 500 leading companies that capture approximately 80% coverage of the available market capitalization, the S&P 500 is widely regarded as the best single measure of large cap U.S. equities. The list is periodically modified to do away with stocks that have been acquired by other companies, delisted from the stock exchange or fail to meet the mandatory criteria of the benchmark index. Consequently, other companies that meet the inclusion criteria are added to the list to replace the scrapped stocks.
A company needs to fulfill certain criteria to be included in the S&P 500. Firstly, its market capitalization should be at least $5.3 billion. As of Mar 16, 2015, the market capitalization of American Airlines was $34.99 million. Moreover, at least half the outstanding shares of the firm should be available for public trading.
In addition, the company needs to have sufficient liquidity and a reasonable price. The ratio of annual dollar value traded to float adjusted market capitalization should be 1 or greater. Also, the company should trade at least 250,000 shares in each of the six months leading up to the evaluation date.
To be listed on the S&P 500, a U.S. company needs to possess the following characteristics as well. It should file 10-K annual reports and should not be considered a foreign entity by the SEC. The U.S. portion of fixed assets and revenues must comprise a majority of the total, but need not be above 50%. When there is an inconsistency among these factors, assets establish plurality. Revenues determine plurality in the event of incomplete asset information. The company should follow a corporate governance structure in line with the U.S. practices.
The stock should be primarily listed on the NYSE (including NYSE Arca and NYSE MKT), the NASDAQ Global Select Market, the NASDAQ Select Market or the NASDAQ Capital Market. ADRs are not qualified for addition. Furthermore, the trailing four quarters' average earnings surprise should be positive, along with a mandatory earnings beat in the last reported quarter.
Headquartered in Fort Worth, TX, American Airlines duly fulfills all these criteria and has thereby been added to the S&P 500 GICS "Industrials" sector or Airlines Sub-Industry index. We note that as of Feb 27, 2015, the "Information Technology" sector had the highest representation (19.9%) on the S&P 500 index. The Industrials sector came fifth in terms of representation (10.3%) while the Telecommunication Services sector was least represented (2.3%).
As of Feb 27, the mean market capitalization of the 500 constituents was $39.36 billion, while the median market cap was approximately $19.12 billion.
As of Dec 31, 2014, American Airlines Group maintained a fleet of 983 mainline jets in addition to 566 regional aircraft which were operated by its regional airline subsidiaries and third-party regional carriers.
Zacks Rank
American Airlines Group carries a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is JetBlue Airways JBLU . The stock carries a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
ACTAVIS PLC (ACT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group Inc.AAL , formed following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, is set to join the S&P 500 after market close on Mar 20. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. The news of American Airlines making its way into the much sought-after index impacted the stock positively.
|
Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL , formed following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, is set to join the S&P 500 after market close on Mar 20. The stock should be primarily listed on the NYSE (including NYSE Arca and NYSE MKT), the NASDAQ Global Select Market, the NASDAQ Select Market or the NASDAQ Capital Market.
|
American Airlines Group Inc.AAL , formed following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, is set to join the S&P 500 after market close on Mar 20. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. The stock should be primarily listed on the NYSE (including NYSE Arca and NYSE MKT), the NASDAQ Global Select Market, the NASDAQ Select Market or the NASDAQ Capital Market.
|
American Airlines Group Inc.AAL , formed following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, is set to join the S&P 500 after market close on Mar 20. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. The list is periodically modified to do away with stocks that have been acquired by other companies, delisted from the stock exchange or fail to meet the mandatory criteria of the benchmark index.
|
8419.0
|
2015-03-14 00:00:00 UTC
|
Are the Gulf Airlines Competing Unfairly With U.S. Carriers?
|
AAL
|
https://www.nasdaq.com/articles/are-gulf-airlines-competing-unfairly-us-carriers-2015-03-14
|
nan
|
nan
|
For years, the three big U.S. network carriers -- American Airlines , Delta Air Lines , and United Continental -- have complained about unfair competition from Middle Eastern airlines.
The U.S. airline giants have argued that Emirates , Qatar Airways , and Etihad Airways are using government subsidies to steal market share from competitors. However, up until now, American, Delta, and United haven't offered much evidence to support their claims.
That changed last week, when the "Partnership for Open and Fair Skies" published a long " white paper " detailing the allegations. The white paper shows that sweetheart deals with other Dubai government-controlled entities have bolstered Emirates' profitability over the last 10 years -- and that Qatar Airways and Etihad Airways wouldn't be solvent without government support.
Growing like weeds
The three big Gulf carriers have grown rapidly over the past decade or so. At Emirates -- the largest of the Gulf carriers -- capacity has doubled in the last five years. Since the turn of the century, Emirates, Qatar Airways, and Etihad have increased their combined capacity by about 1,500%.
Emirates has become the largest airline in the world by international passenger traffic. Source: Emirates
This growth is likely to continue far into the future, as Emirates, Qatar, and Etihad all have even more planes on order than they have in operation today.
All three Gulf carriers operate similar business models. Each one has a single hub and relies on connecting traffic from major cities across the world through that hub. Their hubs are all within close proximity to each other.
Given that it takes years to mature a new long-haul international route to profitability, that all the Gulf carriers are expanding rapidly, and that they compete vociferously against one another, it's no wonder they've needed subsidies to stay afloat. But the evidence hasn't been compiled in one place until now.
Qatar Airways and Etihad Airways aren't self-sufficient
The white paper lays out the case against all three big Gulf carriers, but the facts are much more straightforward for Qatar Airways and Etihad Airways.
A decade ago, Etihad was just getting off the ground, and Qatar Airways was a fraction of Emirates' size. In order to create enough passenger traffic to compete with Emirates' high-volume hub model, both Etihad and Qatar Airways had to grow rapidly to achieve enough scale to remain competitive.
But shiny, new airplanes are pricey, and start-up costs for new routes are significant, too. The white paper details more than $20 billion in capital injections and interest-free loans provided by the governments of Abu Dhabi and Qatar to Etihad and Qatar Airways, respectively.
Abu Dhabi's government has poured more than $10 billion into Etihad since 2004. Source: Wikimedia .
Even the interest-free loans are (for the most part) loans in name only, as the airlines aren't required to repay any money "for the foreseeable future." This capital was provided despite the fact that Etihad and Qatar Airways were posting operating losses.
The governments of Dubai, Abu Dhabi, and Qatar all see aviation as a strategic industry, and they are willing to subsidize its growth. Without this obvious government support, Etihad Airways and Qatar Airways wouldn't be able to stay in business.
Emirates may be a legitimate business
Emirates had a big head start on Etihad Airways and Qatar Airways, and as a result, it appears to be much more self-sufficient. Emirates CEO Tim Clark has vehemently denied that his company gets state aid. That said, the U.S. airlines still found billions of dollars of apparent subsidies.
Most notably, the Dubai government picked up the tab for billions of dollars of fuel hedges gone bad during the depths of the Great Recession. Without this bailout, Emirates probably would have been unable to meet its obligations.
Dubai has also invested billions of dollars in airport infrastructure to support Emirates' growth, but it charges very low airport fees -- effectively subsidizing airlines that operate there.
The report also detailed a variety of other potential subsidies that couldn't be quantified. Nevertheless, while Emirates has a fairly modest profit margin, it seems likely it could survive with or without government support.
What next?
The Gulf carriers don't pose nearly as big a competitive threat to U.S. airlines as to carriers in Europe in Asia. That said, they are rapidly growing to dominate travel from the U.S. to India and the Middle East.
American, Delta, and United want the government to put limits on the Gulf carriers' expansion in the U.S., even if it means canceling Open Skies treaties with Qatar and the United Arab Emirates. They argue -- quite reasonably, in my opinion -- that it's unfair for U.S. airlines to have to compete with government-subsidized foreign competition.
That said, convincing the federal government to crack down on Middle Eastern airlines will be a tough sell. U.S. consumers benefit from the below-market fares offered by the Gulf carriers, and several U.S. companies have stepped up to oppose American, Delta, and United on this issue.
Furthermore, federal regulators have already demonstrated their concern about tacit collusion between the top U.S. airlines. Reducing independent foreign competition is the last thing they want to do. Even with a strong lobbying effort, the airlines may fail to produce meaningful results.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Are the Gulf Airlines Competing Unfairly With U.S. Carriers? originally appeared on Fool.com.
Adam Levine-Weinberg has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Given that it takes years to mature a new long-haul international route to profitability, that all the Gulf carriers are expanding rapidly, and that they compete vociferously against one another, it's no wonder they've needed subsidies to stay afloat. In order to create enough passenger traffic to compete with Emirates' high-volume hub model, both Etihad and Qatar Airways had to grow rapidly to achieve enough scale to remain competitive. U.S. consumers benefit from the below-market fares offered by the Gulf carriers, and several U.S. companies have stepped up to oppose American, Delta, and United on this issue.
|
Qatar Airways and Etihad Airways aren't self-sufficient The white paper lays out the case against all three big Gulf carriers, but the facts are much more straightforward for Qatar Airways and Etihad Airways. In order to create enough passenger traffic to compete with Emirates' high-volume hub model, both Etihad and Qatar Airways had to grow rapidly to achieve enough scale to remain competitive. The white paper details more than $20 billion in capital injections and interest-free loans provided by the governments of Abu Dhabi and Qatar to Etihad and Qatar Airways, respectively.
|
The white paper shows that sweetheart deals with other Dubai government-controlled entities have bolstered Emirates' profitability over the last 10 years -- and that Qatar Airways and Etihad Airways wouldn't be solvent without government support. Qatar Airways and Etihad Airways aren't self-sufficient The white paper lays out the case against all three big Gulf carriers, but the facts are much more straightforward for Qatar Airways and Etihad Airways. Emirates may be a legitimate business Emirates had a big head start on Etihad Airways and Qatar Airways, and as a result, it appears to be much more self-sufficient.
|
In order to create enough passenger traffic to compete with Emirates' high-volume hub model, both Etihad and Qatar Airways had to grow rapidly to achieve enough scale to remain competitive. The white paper details more than $20 billion in capital injections and interest-free loans provided by the governments of Abu Dhabi and Qatar to Etihad and Qatar Airways, respectively. Emirates may be a legitimate business Emirates had a big head start on Etihad Airways and Qatar Airways, and as a result, it appears to be much more self-sufficient.
|
8420.0
|
2015-03-13 00:00:00 UTC
|
The Zacks Analyst Blog Highlights: Delta Air Lines, American Airlines Group, United Continental Holdings, Republic Airways and Alaska Air Group - Press Releases
|
AAL
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-delta-air-lines-american-airlines-group-united-0
|
nan
|
nan
|
For Immediate Release
Chicago, IL - March 13, 2015 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Delta Air Lines Inc.(DAL - Free Report ), American Airlines Group Inc. ( AAL - Free Report ), United Continental Holdings Inc.(UAL - Free Report ), Republic Airways Holdings(RJET - Free Report ) and Alaska Air Group Inc. ( ALK - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Airline Stock Roundup
While February traffic results dominated the past week in the airline space, a major event that sent ripples through the industry was the joint complaint filed by three major U.S. carriers - Delta Air Lines Inc.(DAL - Free Report ), American Airlines Group Inc. ( AAL - Free Report ) and United Continental Holdings Inc.(UAL - Free Report ) - to the U.S. government.
The appeal made was against the unfair nature of the subsidies and other benefits enjoyed by the Gulf carriers, which deny a level playing field to the American carriers. They have alleged that the massive government benefits have allowed Gulf carriers like Qatar Airways, Etihad Airways and Emirates to expand their fleet and international operations substantially, and in turn, eat into competitors' market share.
Republic Airways Holdings(RJET - Free Report ) also grabbed headlines with the announcement that the carrier will now be included in the S&P 600 index. The carrier will replace MAXIMUS in the index after the close of trading today.
Several carriers reported their February traffic numbers over the last five trading days. United Continental Holdings and American Airlines Group reported subdued results while Alaska Air Group Inc. ( ALK - Free Report ), among a couple others, witnessed impressive growth.
On the price front, almost all major airline stocks declined over the past 5 trading days. As a result, the NYSE ARCA Airline index fell almost 4% over the said period, in tune with the bearish mood surrounding the broader market, given the strength of the dollar. However, we are not too perturbed by the decline and consider it a short-term phenomenon. We believe industry fundamentals are strong and consequently, stocks in the airline space should gain over the longer term.
(Read the last 'Airline Stock Roundup' here: Delta, Gogo in Technology Deal; Southwest, JetBlue Add Flights ).
Recap of the Most Important Stories Over the Past Week
1. Massive subsidies enjoyed by three Gulf carriers from their respective governments have come under the attack of major U.S. airline operators - American Airlines Group, United Continental and Delta Air Lines. The American carriers have submitted a 55-page document to support their allegations of unfair competition leveled against their Gulf counterparts (read more: US Carriers Upset Over Gulf Airline Practices ).
2. Republic Airways Holdings, the Indiana-based parent company of Chautauqua Airlines, Republic Airlines and Shuttle America, will replace MAXIMUS in the S&P SmallCap 600 after the close of trading today. The news of the inclusion has impacted the stock positively (read more: Republic Airways Enters S&P 600 Index ).
Furthermore, Republic Airways' February air traffic, measured in revenue passenger miles (RPMs), was up 3% year over year at 801 million, on a consolidated basis. Consolidated capacity or available seat miles improved 3% to 1.1 billion during the month (read more: Republic Airways' Air Traffic Improves in February ).
3. United Continental Holdings reported flat traffic figures for Feb 2015. Soft domestic travel hurt traffic numbers during the month. United Continental's February numbers lagged those of California-based low-cost airline Virgin America, which reported a 3.6% increase in traffic during the same period (read more: United Continental February Traffic Hurt by Domestic Travel ).
4. Alaska Air Group, the parent company of Alaska Airlines, reported impressive traffic data for the month of February, mainly on the back of increased demand. The company's consolidated airline traffic moved up 7.9% year over year to 2,328 million (read more: Alaska Air Group February Traffic Rises on Higher Demand ).
5. American Airlines Group revealed disappointing traffic for February due to weak performance in the Atlantic division. RPMs for the month declined 0.7% and capacity was down 1.8% on a year-over-year basis. Furthermore, the company said that it expects passenger revenue per available seat mile (a measure of unit revenue) to fall in the band of 2% to 4% in the first quarter of 2015.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today .
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros .
Get the full Report on DAL - FREE
Get the full Report on AAL - FREE
Get the full Report on UAL - FREE
Get the full Report on RJET - FREE
Get the full Report on ALK - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DELTA AIR LINES (DAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
REPUBLIC AIRWAY (RJET): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Stocks recently featured in the blog include the Delta Air Lines Inc.(DAL - Free Report ), American Airlines Group Inc. ( AAL - Free Report ), United Continental Holdings Inc.(UAL - Free Report ), Republic Airways Holdings(RJET - Free Report ) and Alaska Air Group Inc. ( ALK - Free Report ). Here are highlights from Thursday's Analyst Blog: Airline Stock Roundup While February traffic results dominated the past week in the airline space, a major event that sent ripples through the industry was the joint complaint filed by three major U.S. carriers - Delta Air Lines Inc.(DAL - Free Report ), American Airlines Group Inc. ( AAL - Free Report ) and United Continental Holdings Inc.(UAL - Free Report ) - to the U.S. government. Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on RJET - FREE Get the full Report on ALK - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
|
Stocks recently featured in the blog include the Delta Air Lines Inc.(DAL - Free Report ), American Airlines Group Inc. ( AAL - Free Report ), United Continental Holdings Inc.(UAL - Free Report ), Republic Airways Holdings(RJET - Free Report ) and Alaska Air Group Inc. ( ALK - Free Report ). Here are highlights from Thursday's Analyst Blog: Airline Stock Roundup While February traffic results dominated the past week in the airline space, a major event that sent ripples through the industry was the joint complaint filed by three major U.S. carriers - Delta Air Lines Inc.(DAL - Free Report ), American Airlines Group Inc. ( AAL - Free Report ) and United Continental Holdings Inc.(UAL - Free Report ) - to the U.S. government. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Stocks recently featured in the blog include the Delta Air Lines Inc.(DAL - Free Report ), American Airlines Group Inc. ( AAL - Free Report ), United Continental Holdings Inc.(UAL - Free Report ), Republic Airways Holdings(RJET - Free Report ) and Alaska Air Group Inc. ( ALK - Free Report ). Here are highlights from Thursday's Analyst Blog: Airline Stock Roundup While February traffic results dominated the past week in the airline space, a major event that sent ripples through the industry was the joint complaint filed by three major U.S. carriers - Delta Air Lines Inc.(DAL - Free Report ), American Airlines Group Inc. ( AAL - Free Report ) and United Continental Holdings Inc.(UAL - Free Report ) - to the U.S. government. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Stocks recently featured in the blog include the Delta Air Lines Inc.(DAL - Free Report ), American Airlines Group Inc. ( AAL - Free Report ), United Continental Holdings Inc.(UAL - Free Report ), Republic Airways Holdings(RJET - Free Report ) and Alaska Air Group Inc. ( ALK - Free Report ). Here are highlights from Thursday's Analyst Blog: Airline Stock Roundup While February traffic results dominated the past week in the airline space, a major event that sent ripples through the industry was the joint complaint filed by three major U.S. carriers - Delta Air Lines Inc.(DAL - Free Report ), American Airlines Group Inc. ( AAL - Free Report ) and United Continental Holdings Inc.(UAL - Free Report ) - to the U.S. government. Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on RJET - FREE Get the full Report on ALK - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
|
8421.0
|
2015-03-12 00:00:00 UTC
|
Southwest Airlines Up on Positive February Traffic Data - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/southwest-airlines-up-on-positive-february-traffic-data-analyst-blog-2015-03-12
|
nan
|
nan
|
Shares of low-cost carrier Southwest Airlines Co.LUV climbed 2.1% to $43.84 on Mar 11, 2015 following impressive traffic data revealed by the company for the month of February. The company said that air traffic, measured in revenue passenger miles (RPMs), was up 6% year over year at 7.9 billion. Capacity (available seat miles or ASMs) of this Dallas, TX-based low-cost carrier increased 3.6% in the month to 9.5 billion.
Another important metric, load factor (% of seats filled by passengers) improved 180 basis points to 79.9%. Furthermore, passenger revenue per available seat mile (a measure of unit revenue) increased 1% for the month on a year-over-year basis.
In the first two months of 2014, Southwest Airlines generated RPMs of 16.1 billion (up 5.4% year over year) and ASMs of 20.2 billion (up 7%), leading to a load factor of 77.4% (up 20 bps).
Southwest Airlines' impressive February traffic data was a welcome change from the disappointing numbers witnessed by fellow carriers American Airlines AAL and United Continental UAL .
Of late, Southwest Airlines has been in the news for its strategic expansion activities. The airline recently announced the launch of two new routes from Aruba to Houston's Hobby Airport and from Baltimore/Washington to San Jose, Costa Rica. Southwest Airlines has been constantly introducing new routes to expand operations. A few days ago, Southwest announced non-stop flights to 8 new cities out of Dallas Love Field. The carrier will start operating these flights from Aug 9. Following the expansion, Southwest Airlines' home base will become relatively busier with 180 departures a day from Dallas Love Field to 50 destinations across the globe.
We believe increased flight frequencies coupled with low fares will not only enhance travel options for fliers but will also boost passenger revenues for Southwest Airlines going forward.
Zacks Rank
Southwest Airlines carries a Zacks Rank #2 (Buy). Investors interested in the airline space may also consider JetBlue Airways JBLU which sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Southwest Airlines' impressive February traffic data was a welcome change from the disappointing numbers witnessed by fellow carriers American Airlines AAL and United Continental UAL . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of low-cost carrier Southwest Airlines Co.LUV climbed 2.1% to $43.84 on Mar 11, 2015 following impressive traffic data revealed by the company for the month of February.
|
Southwest Airlines' impressive February traffic data was a welcome change from the disappointing numbers witnessed by fellow carriers American Airlines AAL and United Continental UAL . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company said that air traffic, measured in revenue passenger miles (RPMs), was up 6% year over year at 7.9 billion.
|
Southwest Airlines' impressive February traffic data was a welcome change from the disappointing numbers witnessed by fellow carriers American Airlines AAL and United Continental UAL . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In the first two months of 2014, Southwest Airlines generated RPMs of 16.1 billion (up 5.4% year over year) and ASMs of 20.2 billion (up 7%), leading to a load factor of 77.4% (up 20 bps).
|
Southwest Airlines' impressive February traffic data was a welcome change from the disappointing numbers witnessed by fellow carriers American Airlines AAL and United Continental UAL . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Furthermore, passenger revenue per available seat mile (a measure of unit revenue) increased 1% for the month on a year-over-year basis.
|
8422.0
|
2015-03-11 00:00:00 UTC
|
American Airlines February Traffic Hurt by Soft Demand - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-february-traffic-hurt-by-soft-demand-analyst-blog-2015-03-11
|
nan
|
nan
|
Premier passenger carrier American Airlines Group Inc.AAL posted a slight decline in air traffic in the month of February, this year. Traffic - measured in revenue passenger miles (RPMs) - came in at 14.97 billion, down 0.7% from 15.07 billion recorded in the comparable month a year ago. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) fell 1.8% to stand at 18.87 billion. However, the load factor or percentage of seats filled with passengers increased to 79.3% from 78.4% in Feb 2014.
For the first two months of 2015, American Airlines generated RPMs of 31.78 billion (down 1.8% from the corresponding period last year) and ASMs of 40.37 billion (down 1% year over year). Meanwhile, the load factor declined 70 basis points year over year to 78.7%.
Recently, leading U.S. carrier United Continental Holdings Inc. UAL reported flat traffic figures in February. Also, airline traffic - measured in revenue passenger miles or RPMs - stood flat at 13.69 billion. Soft domestic travel has hurt the traffic numbers in the month.
Meanwhile, airline behemoth Delta Air Lines, Inc. DAL announced disappointing traffic numbers for the month of February. Passenger unit revenue (PRASM, a product of passenger yield and load factor) declined 1.5% on a year-over-year basis, hurt by adverse foreign currency movements. A severe winter also led to the decline in the key revenue metric.
American Airlines currently carries a Zacks Rank #2 (Buy). Another favorably-ranked stock in the same space is JetBlue Airways Corp. JBLU which sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Premier passenger carrier American Airlines Group Inc.AAL posted a slight decline in air traffic in the month of February, this year. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Recently, leading U.S. carrier United Continental Holdings Inc. UAL reported flat traffic figures in February.
|
Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Premier passenger carrier American Airlines Group Inc.AAL posted a slight decline in air traffic in the month of February, this year. Also, airline traffic - measured in revenue passenger miles or RPMs - stood flat at 13.69 billion.
|
Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Premier passenger carrier American Airlines Group Inc.AAL posted a slight decline in air traffic in the month of February, this year. Traffic - measured in revenue passenger miles (RPMs) - came in at 14.97 billion, down 0.7% from 15.07 billion recorded in the comparable month a year ago.
|
Premier passenger carrier American Airlines Group Inc.AAL posted a slight decline in air traffic in the month of February, this year. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
8423.0
|
2015-03-11 00:00:00 UTC
|
Recent IPOs: Where is Virgin America Now?
|
AAL
|
https://www.nasdaq.com/articles/recent-ipos-where-virgin-america-now-2015-03-11
|
nan
|
nan
|
In November, shares of Virgin America became publicly traded. Since then, much has happened to both the airline and the industry as whole.
This article will look at these events and bring investors up to date on how this airline has performed and whether its stock is a buy.
Stock performance
After Virgin America's IPO priced the stock at $23 per share, shares surged 25% on the day of the IPO. However, average investors had to pay about $30 per share since the lower price was only available to the investors participating in the IPO.
Virgin America Airbus at Sea-Tac International Airport. Source: Frank Kovalchek; Uploaded by russavia. Licensed via Wikimedia Commons.
To compare the performance of Virgin America shares with those of other airlines I will use the higher price average investors had to pay as the starting point. It is more indicative of how well average investors could have done and how the market really valued the stock.
Even after the surge to $30 per share, Virgin America gained another 20% in the following days. From there, shares were volatile but tacked on another 20% to rise to over 40% above the stock's purchase price on the IPO day. Shares subsequently remained volatile, now sitting nearly 20% above the IPO day price for average investors.
Virgin America shares have significantly outperformed shares of American Airlines Group , Southwest Airlines , and Delta Air Lines since the IPO, and are close to even with the performance of United Continental Holdings stock. However, JetBlue Airways stock is up about 35% since Virgin America's IPO date.
Company performance
Virgin America reported an $84 million profit excluding special items for 2014. While this is small compared to the profits of other larger airlines, it's a meaningful achievement for Virgin America, which has been trying to convince investors that consistent profits are coming after years of losses.
The airline also announced a 16% increase in frequent flyer program membership during 2014, and expects growth to continue. This is a positive development as frequent flyer programs can foster customer loyalty by offering members special perks.
Growth
Virgin America holds less than 2.5% of the U.S. airline market share. To grow, the airline is working on building out its network.
The airline intends to compete with Southwest Airlines on the Dallas Love Field to Austin route. While Southwest has long been the dominant presence at the Dallas Love Field, Virgin America is looking to loosen its rival's grip.
Virgin America has also taken steps to expand beyond the North American continent with the announcement of a route to Honolulu, Hawaii. According to Skift.com, Honolulu is among the top 10 domestic destinations from the airline's Los Angeles International Airport hub, yet Virgin America has not yet offered a flight. No word yet on demand for this Virgin America route, but the airline believes the offering has potential as it looks to expand beyond its current boundaries.
Valuation
At 8.6 times estimated 2015 earnings, Virgin America trades at a premium to American Airlines (4.8 times) and United Continental Holdings (6.2 times) and at a discount to Delta (9.3 times), Southwest (12.2 times), and JetBlue (10.6 times).
Based on these numbers, Virgin America carries the lowest valuation of the nonlegacy carriers. However, being significantly smaller than rivals, Virgin America carries additional risks from having a smaller base of loyal customers, having less geographical diversification, and the need to compete against rivals with stronger networks and greater economies of scale.
The takeaway
Since its November IPO, Virgin America shares have outperformed or matched those of most rival airlines; however, the stock has remained volatile throughout. The 2014 profit lends strength to the case that the airline can operate profitably, but investors should still look for growth to push profits to a higher level.
As a smaller airline than its peers, Virgin America carries greater risks, but risk-tolerant investors looking to avoid legacy carriers might want to consider this airline.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Recent IPOs: Where is Virgin America Now? originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines,. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
According to Skift.com, Honolulu is among the top 10 domestic destinations from the airline's Los Angeles International Airport hub, yet Virgin America has not yet offered a flight. The takeaway Since its November IPO, Virgin America shares have outperformed or matched those of most rival airlines; however, the stock has remained volatile throughout. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
Stock performance After Virgin America's IPO priced the stock at $23 per share, shares surged 25% on the day of the IPO. Virgin America shares have significantly outperformed shares of American Airlines Group , Southwest Airlines , and Delta Air Lines since the IPO, and are close to even with the performance of United Continental Holdings stock. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
Stock performance After Virgin America's IPO priced the stock at $23 per share, shares surged 25% on the day of the IPO. Virgin America shares have significantly outperformed shares of American Airlines Group , Southwest Airlines , and Delta Air Lines since the IPO, and are close to even with the performance of United Continental Holdings stock. The takeaway Since its November IPO, Virgin America shares have outperformed or matched those of most rival airlines; however, the stock has remained volatile throughout.
|
Stock performance After Virgin America's IPO priced the stock at $23 per share, shares surged 25% on the day of the IPO. To compare the performance of Virgin America shares with those of other airlines I will use the higher price average investors had to pay as the starting point. Virgin America shares have significantly outperformed shares of American Airlines Group , Southwest Airlines , and Delta Air Lines since the IPO, and are close to even with the performance of United Continental Holdings stock.
|
8424.0
|
2015-03-09 00:00:00 UTC
|
What Happens to Airline Stocks If Cheap Gas Is Here to Stay?
|
AAL
|
https://www.nasdaq.com/articles/what-happens-airline-stocks-if-cheap-gas-here-stay-2015-03-09
|
nan
|
nan
|
Despite a recent bounce, gas prices are still well down from where they were this time last year. And while the average American is benefiting from savings at the pump, airlines could potentially see their profits soar if cheap gas prices are here to stay.
Fuel usage
According to Bureau of Transportation Statistics data, U.S. carriers consumed a combined 16.2 billion gallons of jet fuel in 2014 and spent $46.3 billion to do so. With this much money being spent here, it's clear that falling fuel prices could be a major boost to airlines' bottom lines.
Using data from their most recent 10-K reports, combined with the roughly $1.20 per gallon drop in the cost of jet fuel, the following table gives approximate airline fuel savings, excluding hedges.
*2014 fuel usage since 2015 estimate was unavailable.
The fuel savings for airlines are quite significant from a straight dollar-for-dollar analysis. But to analyze the full effect, other factors need to be taken into account as well.
Hedging
With fuel prices having a volatile track record, it's no surprise that many carriers have hedged themselves to protect from price spikes. However, hedging is a double-edged sword. When fuel prices spike, the hedges lessen the costs, but when fuel prices drop, the hedges lessen the savings.
Of the four major airlines mentioned, American Airlines Group is the only one that doesn't hedge fuel prices, so it experiences the movement in fuel costs at a dollar-for-dollar level.
United has said it has 22% of its 2015 fuel consumption and 1% of its 2016 fuel consumption hedged. Southwest has taken action to effectively unhedge its 2015 and 2018 fuel prices (after prices fell) but still has 885 million gallons hedged for 2016 and 757 million gallons for 2017.
Delta has noted that the hedges will cause it to pay more in 2015 but that the airline will be able to fully see the savings if prices remain low in 2016.
What this information tells us is that no major airline, except American Airlines Group, will see the full benefit of lower fuel prices for 2015, but Delta and United will see these gains if prices remain low for 2016. Even Southwest would stand to benefit, since it has less than half its annual fuel consumption hedged for 2016.
While American Airlines is coming out the winner right now, other airlines could certainly benefit from fuel prices that remain low over the long term, since their hedges at higher prices would run out and allow them to fully recognize the savings.
Using the savings
With the savings from lower fuel costs flowing to the bottom line, airlines need to decide what to do with the money. American Airlines Group has already used some of the savings to complete a $1 billion stock buyback early and launch a new $2 billion stock buyback. The airline has also noted its plans to potentially accelerate some aircraft deliveries.
United has said it plans to pay for a greater amount of its new aircraft in cash. That way, the airline will rely less on debt financing, reducing overall debt levels and interest expense.
Delta and Southwest haven't been as vocal on how they plan to use their fuel savings. In the past, both of these airlines have led the way in dividends and stock buybacks, although neither company has made a move in this area yet. Going forward, it's definitely worth watching for comments from these two airlines.
Lower fares and risks
At this point, lower fares are boosting profits for airlines, particularly for unhedged ones. But there's a risk that lower fuel prices will weaken capacity discipline and result in lower fares.
While most flyers like lower fares, airlines, unsurprisingly, don't. They're still trying to grow margins, acquire new aircraft, and reduce debt to more acceptable levels. For 2015, the International Air Transport Association predicts a 5% drop in airfares, an amount well less than the fuel-savings boost.
But the issue is what happens in the following years after fuel hedges expire and all airlines are reaping the benefits of lower fuel costs. So far, U.S. legacy carriers are holding the line on fares, which have dropped little as industry leaders pledge to run their carriers as if oil was still expensive.
With the top four carriers now controlling about 70% of the U.S. air-travel market, competition should be lower than it was during previous times of lower oil prices . The newer carriers in the industry are now ultra-discount names such as Spirit Airlines and Allegiant Air , both of which offer cheaper fares but do so by reducing legroom and basic services and increasing fees.
While I expect the more consolidated U.S. airline industry to have enough fare and capacity discipline to retain the vast majority of fuel savings, issues relating to lower fares aren't something to completely ignore.
The bottom line
Airlines are starting to see the gains from having one of their largest costs plunge, but most hedged airlines will have to wait until 2016 to fully see the savings. While there's a risk of a loss of capacity and fare discipline, U.S. airline leaders have avoided lowering fares and have mostly said they don't intend to do so.
If these airlines can hold to their strategy, airline profits could see another significant boom, which could provide lift to their shares.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article What Happens to Airline Stocks If Cheap Gas Is Here to Stay? originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
And while the average American is benefiting from savings at the pump, airlines could potentially see their profits soar if cheap gas prices are here to stay. The newer carriers in the industry are now ultra-discount names such as Spirit Airlines and Allegiant Air , both of which offer cheaper fares but do so by reducing legroom and basic services and increasing fees. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
When fuel prices spike, the hedges lessen the costs, but when fuel prices drop, the hedges lessen the savings. What this information tells us is that no major airline, except American Airlines Group, will see the full benefit of lower fuel prices for 2015, but Delta and United will see these gains if prices remain low for 2016. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
Of the four major airlines mentioned, American Airlines Group is the only one that doesn't hedge fuel prices, so it experiences the movement in fuel costs at a dollar-for-dollar level. What this information tells us is that no major airline, except American Airlines Group, will see the full benefit of lower fuel prices for 2015, but Delta and United will see these gains if prices remain low for 2016. While American Airlines is coming out the winner right now, other airlines could certainly benefit from fuel prices that remain low over the long term, since their hedges at higher prices would run out and allow them to fully recognize the savings.
|
Of the four major airlines mentioned, American Airlines Group is the only one that doesn't hedge fuel prices, so it experiences the movement in fuel costs at a dollar-for-dollar level. What this information tells us is that no major airline, except American Airlines Group, will see the full benefit of lower fuel prices for 2015, but Delta and United will see these gains if prices remain low for 2016. American Airlines Group has already used some of the savings to complete a $1 billion stock buyback early and launch a new $2 billion stock buyback.
|
8425.0
|
2015-03-09 00:00:00 UTC
|
US Carriers Upset Over Gulf Airline Practices - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/us-carriers-upset-over-gulf-airline-practices-analyst-blog-2015-03-09
|
nan
|
nan
|
Massive subsidies enjoyed by three Gulf carriers from their respective governments have come under the attack of three large U.S. carriers - American Airlines Group Inc.AAL , United Continental Holdings Inc.UAL and Delta Air Lines Inc.DAL .
The three American carriers have joined forces to form a partnership for open and fair skies. They have complained to the Obama administration that the massive subsidies and other benefits enjoyed by the three state-owned carriers - Qatar Airways, Etihad Airways and Emirates -- are unfair in nature as they deny a level playing field to the U.S. carriers. Incidentally, massive government benefits have allowed these Gulf carriers to expand their fleet and international operations substantially.
The 55-Page Dossier
The U.S.-based airline companies have submitted a 55-page document to support allegations of unfair competition leveled against their Gulf counterparts. In the dossier, Delta, American Airlines and United Continental have provided details of subsidies worth $42 billion enjoyed by the three gulf carriers from the governments of Qatar and the United Arab Emirates (UAE) since 2004.
The subsidies enjoyed by Qatar Airways, Etihad Airways and Emirates include benefits like interest-free government loans with no repayment obligation, government grants and capital injections, free land and airport fee exemptions. According to the report, Qatar Airways has received the highest amount of government subsidy (over $15 billion) in the last decade.
According to the U.S. carriers, this has clearly violated the U.S. Open Skies policy, which advocates fair competition. The U.S. Open Skies treaties, inked with multiple nations including the UAE and Qatar, has permitted unrestricted air routes, since 1992. However, the Gulf carriers, by enjoying the unprecedented benefits, have grown substantially.
Moreover, they are aiming to dominate the global aviation industry through their attempts to divert global air traffic to their bases in the Middle East. This, the report claims, poses a massive threat to the growth prospects of the U.S. airline industry by putting at risk the multiple jobs created within the space. The Gulf carriers are offering high-quality air travel facilities to fliers across the globe at affordable rates supported by the huge government subsidies.
The Gulf carriers' sole aim, according to the report, is to expand their international operations with the help of the unfair advantages obtained, thereby eating into the market shares of the domestic aviation companies and shifting airline jobs from the U.S. to the oil-rich nations. This can potentially impact the U.S. economy, as a strong airline industry spells wonders for a healthy overall economy.
The report, which was finalized following two years of research by investors hired by the three U.S. carriers, alleges a net loss of more than 800 U.S. jobs for every lost international flight (two-way) by a U.S. carrier due to the unfair subsidized support enjoyed by the Gulf carriers.
The U.S carriers have further alleged that as a result, the three Gulf carriers are expected to register an increase in their respective capacities which is three times the global GDP in the 2012-2020 period. This will make the Gulf carriers a highly dominant force in the global aviation market and cripple the U.S. airline industry in the process.
Furthermore, the bottom-lines of the three Gulf carriers have benefited a great deal from their respective governments' decisions to ban labor unions as this has resulted in huge savings. According to a report by Forbes, Laura Glading, President of the Association of Professional Flight Attendants, has questioned the dire conditions in which flight attendants of Gulf carriers work in the absence of labor unions. The allegations have been dismissed by a senior official of Qatar Airways.
The dossier further alleges that Etihad Airways remains afloat only because of massive government subsidies and other benefits even after incurring losses every year from 2004 to 2013.
Fair Competition Called For
The three U.S. carriers, through the detailed dossier submitted to the U.S. government, have asked the latter to take necessary measures to allow for scope of fair play. Delta, along with its two fellow players in the industry, has requested the government to modify or even revoke the Open Skies deals with UAE and Qatar.
This will reduce the unfair advantages enjoyed by the Gulf carrier trio and limit their expansion into the U.S. Further allegations include the hampering of their international operations. Delta had earlier operated flights to India from its Seattle hub. However, its finds this route unviable given the unfair advantage enjoyed therein by Emirates Airlines.
The U.S. companies have stated clearly in the report that they have nothing against their Gulf counterparts; it is the unfair policy of the governments of Qatar and UAE that they are appealing. The dossier even suggests that the three Gulf airlines are nothing but tools for economic development for their respective countries.
Clark Hits Back
According to a report appearing in Bloomberg , Tim Clark - President of Emirates - has categorically dismissed the allegation of receiving unfair subsidies or bailouts from the government to stay afloat. Clark, in turn, has-alleged that the three U.S. carriers have benefited substantially from bankruptcy laws in the U.S. The favorable laws, he claims, have enabled the U.S. carriers to cut down their debts and operating costs.
While rejecting the charges of unfair competition, he has stated, in an almost challenging tone, that he would be interested to know how the report arrived at the $42 billion figure said to have been received by the three noted Gulf carriers in the form of government benefits.
We do not expect the dispute to end soon and currently await the response of the U.S. government to the dossier submitted by Delta, American Airlines and United Continental Holdings.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Massive subsidies enjoyed by three Gulf carriers from their respective governments have come under the attack of three large U.S. carriers - American Airlines Group Inc.AAL , United Continental Holdings Inc.UAL and Delta Air Lines Inc.DAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Gulf carriers' sole aim, according to the report, is to expand their international operations with the help of the unfair advantages obtained, thereby eating into the market shares of the domestic aviation companies and shifting airline jobs from the U.S. to the oil-rich nations.
|
Massive subsidies enjoyed by three Gulf carriers from their respective governments have come under the attack of three large U.S. carriers - American Airlines Group Inc.AAL , United Continental Holdings Inc.UAL and Delta Air Lines Inc.DAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In the dossier, Delta, American Airlines and United Continental have provided details of subsidies worth $42 billion enjoyed by the three gulf carriers from the governments of Qatar and the United Arab Emirates (UAE) since 2004.
|
Massive subsidies enjoyed by three Gulf carriers from their respective governments have come under the attack of three large U.S. carriers - American Airlines Group Inc.AAL , United Continental Holdings Inc.UAL and Delta Air Lines Inc.DAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In the dossier, Delta, American Airlines and United Continental have provided details of subsidies worth $42 billion enjoyed by the three gulf carriers from the governments of Qatar and the United Arab Emirates (UAE) since 2004.
|
Massive subsidies enjoyed by three Gulf carriers from their respective governments have come under the attack of three large U.S. carriers - American Airlines Group Inc.AAL , United Continental Holdings Inc.UAL and Delta Air Lines Inc.DAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In the dossier, Delta, American Airlines and United Continental have provided details of subsidies worth $42 billion enjoyed by the three gulf carriers from the governments of Qatar and the United Arab Emirates (UAE) since 2004.
|
8426.0
|
2015-03-07 00:00:00 UTC
|
This Airline Could Double Profits but Not Raise Its Dividend
|
AAL
|
https://www.nasdaq.com/articles/airline-could-double-profits-not-raise-its-dividend-2015-03-07
|
nan
|
nan
|
American Airlines Group estimated fuel usage of approximately 4.3 billion gallons for 2015 in its 10-K, so this increase would be expected to cost the airline about $990 million if it stayed in place for the full year.
Of course, jet fuel is likely to remain volatile and even top energy analysts can't agree on where oil prices are headed next.
But the point of this example is that with American Airlines being completely unhedged, it's exposed to jet fuel volatility for better or worse. This reality makes it difficult for the airline to raise the dividend significantly and be confident that there will be the cash flow to back it.
At current levels, analyst forecasts are calling for around $10 per share in earnings for 2015; nearly double the $5.70 per share in adjusted earnings posted for 2014. If fuel prices remain low, these higher earnings could provide a boost to the airline's efforts described below.
Better opportunities
Although current fuel prices have positioned American Airlines for a far more profitable 2015, there are other major areas in which the airline needs to spend money besides dividends for shareholders.
One of the key areas is debt reduction, since American carries a net debt load of $10.9 billion, more than the $7.7 billion at United Continental Holdings and the $6.5 billion at Delta Air Lines . It also carries a higher net debt-to-operating cash flow ratio of 3.5, compared with 3.0 at United and 1.3 at Delta.
While the debt load isn't threatening insolvency (in fact, American recently received an upgrade from Moody's ), it could be depressing the airline's valuation by making it appear riskier than its peers. By using some of its fuel savings to reduce existing debt or pay for new aircraft upfront, American could begin tackling this debt load, possibly helping its valuation.
.
The airline is also undergoing a massive overhaul of its fleet, with the goals of reducing per-passenger fuel consumption, decreasing maintenance costs, and increasing passenger comfort. American has noted that some of its fuel savings will be spent on acquiring new aircraft to move this process along faster, and Forbes quoted American Airlines Group CEO Doug Parker as saying, "It is definitely in our shareholders' interest to invest."
Peer pressure?
Sometimes companies must raise their dividends to retain yields competitive with their peers. The idea is to attract more income investors to your own company's stock by making it stack up better against your rivals.
But while some foreign airlines pay dividends of over 2%, U.S.-based airlines, which form American Airlines' closest competition for investment dollars, all pay either small dividends or none.
Delta Air Lines pays a 0.79% dividend, and Southwest Airlines pays 0.54%. Alaska Air Group , parent company of Alaska Airlines, pays a slightly larger 1.2% dividend, and United Continental pays no dividend at all.
At this point, American Airlines Group is already near the high-end of the dividend yield range among its peers, so there's little need to raise the dividend to measure up to its rivals.
Share buybacks
While American has stayed away from a dividend increase since it brought back its dividend last year, the airline has moved aggressively to buy back its own shares finishing a $1 billion buyback and starting a $2 billion buyback.
.
For a company in a volatile industry and closely exposed to jet fuel prices, a share buyback has a few advantages. First, the airline can turn it on or off without raising red flags as if a dividend was cut. This situation gives American Airlines more flexibility to expand or taper its share repurchases depending on industry conditions and jet fuel costs.
Second, buying back shares reduces the amount of dividends American needs to pay. If the $2 billion share buyback were executed at today's prices, it would save the airline roughly $16 million in annual dividends.
And finally, American Airlines Group's shares trade at a low valuation, even compared with its peers. Using data from 4-Traders.com, American trades at only 4.9 times estimated 2015 earnings, while Delta trades at 9.6 and United Continental trades at 6.3. Even if American's larger net debt justifies this discount, if other profits are directed to manage it, the valuation gap should close and the the share buyback will have been executed at good prices.
The bottom line
American Airlines Group is one of the biggest beneficiaries of lower oil and jet fuel prices; however, I don't expect big dividend increases from this airline in the near term. This airline still has to deal with a volatile commodity in a volatile industry, and there are better areas to use the profits, many of which American is already taking advantage of.
While I don't see a big dividend boost on the horizon for this airline, I still remain bullish because of its current execution and rock-bottom valuation.
Is American Airlines Group The Motley Fool's Top Stock for 2015?
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article This Airline Could Double Profits but Not Raise Its Dividend originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines, Inc.. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group. The Motley Fool recommends Moody's. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
While the debt load isn't threatening insolvency (in fact, American recently received an upgrade from Moody's ), it could be depressing the airline's valuation by making it appear riskier than its peers. The airline is also undergoing a massive overhaul of its fleet, with the goals of reducing per-passenger fuel consumption, decreasing maintenance costs, and increasing passenger comfort. Even if American's larger net debt justifies this discount, if other profits are directed to manage it, the valuation gap should close and the the share buyback will have been executed at good prices.
|
One of the key areas is debt reduction, since American carries a net debt load of $10.9 billion, more than the $7.7 billion at United Continental Holdings and the $6.5 billion at Delta Air Lines . Share buybacks While American has stayed away from a dividend increase since it brought back its dividend last year, the airline has moved aggressively to buy back its own shares finishing a $1 billion buyback and starting a $2 billion buyback. Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines, Inc.. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
But while some foreign airlines pay dividends of over 2%, U.S.-based airlines, which form American Airlines' closest competition for investment dollars, all pay either small dividends or none. Share buybacks While American has stayed away from a dividend increase since it brought back its dividend last year, the airline has moved aggressively to buy back its own shares finishing a $1 billion buyback and starting a $2 billion buyback. Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines, Inc.. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
American Airlines Group estimated fuel usage of approximately 4.3 billion gallons for 2015 in its 10-K, so this increase would be expected to cost the airline about $990 million if it stayed in place for the full year. At this point, American Airlines Group is already near the high-end of the dividend yield range among its peers, so there's little need to raise the dividend to measure up to its rivals. Is American Airlines Group The Motley Fool's Top Stock for 2015?
|
8427.0
|
2015-03-06 00:00:00 UTC
|
Long-Haul Flights at LaGuardia: Who Would Lose Out?
|
AAL
|
https://www.nasdaq.com/articles/long-haul-flights-laguardia-who-would-lose-out-2015-03-06
|
nan
|
nan
|
The Port Authority of New York and New Jersey is considering dropping a long-standing "perimeter rule" that bars flights of more than 1,500 miles at LaGuardia Airport, according to The Wall Street Journal . (Flights to and from Denver and flights on Saturdays are already exempt.)
As I recently described, Delta Air Lines and American Airlines would benefit from this move because they control the most slots at LaGuardia. As a result, they'd be able to add lots of lucrative flights to the West Coast by dropping less-profitable short-haul routes currently operated with small regional jets.
Delta hopes to fly nonstop from its hub at LaGuardia Airport to the West Coast.
Other carriers with significant transcontinental service from New York -- including JetBlue Airways , United Continental , and Virgin America are more at risk. But a change in the perimeter rules might not hurt them as much as some industry analysts assume.
Shifting the balance of power
LaGuardia Airport is much closer to midtown Manhattan than the other New York-area airports (JFK and Newark). Business travelers in particular tend to prefer flying from LaGuardia. As a result, if the perimeter rule is withdrawn, airlines would clearly want to fly nonstop from LaGuardia to key West Coast business markets like Los Angeles and San Francisco.
Today, Delta, American, United, JetBlue, and Virgin America all fly from JFK to Los Angeles and San Francisco. These are some of their most lucrative routes, and the airlines offer premium amenities on these flights to cater to their high-paying customers.
Of those five airlines, Delta and American have the largest slot holdings at LaGuardia by far. If they were to become the only airlines offering frequent flights from LaGuardia to the West Coast (and particularly to L.A. and San Francisco), it would be a major competitive advantage for them.
The view from Virgin America
Virgin America is perhaps most at risk. First, transcontinental flights from JFK and Newark to Los Angeles and San Francisco account for nearly 30% of Virgin America's capacity. Disruption in these markets could be painful.
Virgin America has high exposure to the transcontinental market. Source: Virgin America.
Second, Virgin America controls just six slot pairs at LaGuardia Airport. That wouldn't be enough for it to move its entire JFK-Los Angeles and JFK-San Francisco flight schedules to LaGuardia -- even if it dropped all of its other flights there.
Thus, Virgin America has argued that if the rules change, the slot allocations at LaGuardia must also be revisited. It would try to convince federal regulators to mandate slot sales by Delta and American to create more space for smaller carriers. If Virgin America acquires more LaGuardia slots, that would mitigate most of the negative impact of the potential perimeter rule change.
JetBlue could pick up short-haul business
JetBlue has expressed a similar sentiment. If LaGuardia is opened to transcontinental service, it wants an opportunity to pick up more slots there in order to offer competing flights.
However, while JetBlue's long-haul operations at JFK might suffer from a LaGuardia perimeter rule change, its short-haul flights there could benefit. Delta and American would have to drop numerous regional flights at LaGuardia Airport to free up slots for long-haul flights -- even more so if they also have to divest some of their slots.
JetBlue currently flies from JFK to several small-to-midsize cities in the Northeast, such as Portland, Maine; Burlington, Vermonth; and Syracuse, Rochester, and Buffalo, New York. Delta currently flies to all of those cities from LaGuardia.
JetBlue's short-haul routes could benefit from a reduction in regional flights at LaGuardia. Source: JetBlue.
If Delta were to cut some of those flights to free up capacity for new long-haul service, JetBlue's flights from JFK would benefit. A reduction in short-haul service at LaGuardia also might open up new opportunities for JetBlue at JFK. This would lessen the sting of reduced demand for transcontinental flights from JFK Airport.
United could cut costs
As one of the big three legacy carriers, United probably wouldn't be allowed to bid for extra slots at LaGuardia Airport. However, in a pinch, it could probably move its transcontinental "p.s." (Premium Service) flights from JFK to LaGuardia by cutting service to Cleveland (which it dropped as a hub in 2014) and flying somewhat less frequently to its other hubs.
United has the advantage of maintaining a dominant presence at Newark Airport, the only "true" hub in the New York area. This alone ensures that it has adequate service from the New York area to every major U.S. metro area, as well as numerous international markets. In contrast, Delta and American have their operations split between LaGuardia and JFK.
Whatever happens, United will still have the only true hub in the New York area.
The p.s. flights to Los Angeles and San Francisco are United's only flights from JFK. Moving them to LaGuardia would allow United to consolidate its New York operations at Newark and LaGuardia. This would reduce its staffing and facility rental costs. United could also probably monetize its remaining slots at JFK Airport.
This won't happen soon
Thus, while Virgin America, JetBlue, and United could be at risk if the Port Authority opens LaGuardia Airport to long-haul flights, the damage may be smaller than it first seems.
Furthermore, major changes are unlikely for the next few years. LaGuardia's Central Terminal Building -- which houses most of American's flights -- is already extremely overcrowded. While the building is slated for a complete rebuilding and expansion, the project could take nearly a decade to be completed.
Swapping 50-seat regional jets for 150-seat mainline planes would push the terminal well beyond its current capacity. Even Delta's somewhat more modern terminals would be strained by a significant increase in mainline operations. The time needed to sort out these issues will give carriers like United, JetBlue, and Virgin America plenty of time to adapt.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Long-Haul Flights at LaGuardia: Who Would Lose Out? originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of JetBlue Airways and Virgin America The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Port Authority of New York and New Jersey is considering dropping a long-standing "perimeter rule" that bars flights of more than 1,500 miles at LaGuardia Airport, according to The Wall Street Journal . As a result, if the perimeter rule is withdrawn, airlines would clearly want to fly nonstop from LaGuardia to key West Coast business markets like Los Angeles and San Francisco. This won't happen soon Thus, while Virgin America, JetBlue, and United could be at risk if the Port Authority opens LaGuardia Airport to long-haul flights, the damage may be smaller than it first seems.
|
As a result, if the perimeter rule is withdrawn, airlines would clearly want to fly nonstop from LaGuardia to key West Coast business markets like Los Angeles and San Francisco. Today, Delta, American, United, JetBlue, and Virgin America all fly from JFK to Los Angeles and San Francisco. This won't happen soon Thus, while Virgin America, JetBlue, and United could be at risk if the Port Authority opens LaGuardia Airport to long-haul flights, the damage may be smaller than it first seems.
|
Delta and American would have to drop numerous regional flights at LaGuardia Airport to free up slots for long-haul flights -- even more so if they also have to divest some of their slots. If Delta were to cut some of those flights to free up capacity for new long-haul service, JetBlue's flights from JFK would benefit. This won't happen soon Thus, while Virgin America, JetBlue, and United could be at risk if the Port Authority opens LaGuardia Airport to long-haul flights, the damage may be smaller than it first seems.
|
Today, Delta, American, United, JetBlue, and Virgin America all fly from JFK to Los Angeles and San Francisco. Delta and American would have to drop numerous regional flights at LaGuardia Airport to free up slots for long-haul flights -- even more so if they also have to divest some of their slots. If Delta were to cut some of those flights to free up capacity for new long-haul service, JetBlue's flights from JFK would benefit.
|
8428.0
|
2015-03-05 00:00:00 UTC
|
Nasdaq 100 Movers: AAL, MYL
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-aal-myl-2015-03-05
|
nan
|
nan
|
In early trading on Thursday, shares of Mylan ( MYL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.9%. Year to date, Mylan registers a 2.5% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.2%. American Airlines Group is lower by about 9.8% looking at the year to date performance.
Two other components making moves today are Mattel ( MAT ), trading down 1.2%, and Vertex Pharmaceuticals ( VRTX ), trading up 3.0% on the day.
VIDEO: Nasdaq 100 Movers: AAL, MYL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.2%. VIDEO: Nasdaq 100 Movers: AAL, MYL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 9.8% looking at the year to date performance.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.2%. VIDEO: Nasdaq 100 Movers: AAL, MYL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.2%. VIDEO: Nasdaq 100 Movers: AAL, MYL 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 Thursday, shares of Mylan ( MYL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.9%.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.2%. VIDEO: Nasdaq 100 Movers: AAL, MYL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 9.8% looking at the year to date performance.
|
8429.0
|
2015-03-05 00:00:00 UTC
|
Eastern Air Lines: Ready to Fly Again?
|
AAL
|
https://www.nasdaq.com/articles/eastern-air-lines-ready-fly-again-2015-03-05
|
nan
|
nan
|
The original Eastern Air Lines shut down in 1991, but a group of investors is getting ready to bring back this historic airline name. While Eastern will remain a private company for now, it's worth examining for its potential impact on the aviation industry as a whole.
Rebirth of Eastern
Eastern Air Lines was originally founded in 1926 and grew to be one of the major airlines through most of the 20th century. But by the 1980s, the airline was running into trouble competing in the deregulated airline industry.
In the late 1980s, Eastern faced more problems stemming from activities by investors, higher fuel prices, high debt levels, and a labor strike. It filed for bankruptcy in 1989 and ceased flying in 1991.
Currently, American Airlines Group has about 75% of the Miami International Airport market share among U.S. airlines when measured by enplaned passengers, so taking the No. 1 spot would be much more difficult for Eastern.
However, Eastern could still cause problems for American by bringing additional capacity to the Miami market, potentially lowering load factors and/or fares. At the same time, Eastern is also likely to avoid directly competing with American Airlines when it doesn't have to since it's trying to turn a start-up airline profitable, and American could outlast it in a price war because of its larger network and access to capital.
It will also take at least a couple years from now before Eastern has taken delivery of all of its aircraft and is running a significant amount of scheduled service. Because of this, and Eastern's need to turn a profit, I see increased competition for American Airlines as a long-term issue rather than a near-term one.
Effects on other airlines
While Eastern Air Lines is growing in American Airlines' own backyard, other U.S. airlines don't need to be as concerned. First off, United Continental , Delta Air Lines , and Southwest Airlines have fairly small Miami market shares anyway, with Delta's being the largest at just over 12%.
Second, Eastern has discussed leaning toward Latin America and Caribbean flights rather than a heavy U.S. domestic presence. For a carrier with growth ambitions, this market strategy should prove advantageous, with the IATA forecasting 4.7% annual growth through 2034 from Latin America, but only 3.3% annual growth from North America.
Third, breaking into the high-demand slot restricted U.S. airports is difficult for upstart airlines, as major carriers have taken all of the available slots in many cases. This would keep Eastern out of many of the most valuable U.S. airports, only allowing it to target airports with less demand.
If Eastern Air Lines does strike gold with its Miami operations, it may make a larger move north later. But, for now, the strategy of focusing on Latin America and the Caribbean seems to work out best for both Eastern and the other U.S. carriers.
The bottom line
Eastern Air Lines is probably 12 to 18 months away from beginning scheduled passenger operations, but when it does, it will be moving into a major American Airlines hub.
Investors should keep an eye on where Eastern rolls out its flights and how closely it compete with existing carriers since tighter competition could put more pressure on fares and load factors at existing airlines. And, depending on the severity of Eastern's competition, it could reduce profits for existing airlines' Miami flights..
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Eastern Air Lines: Ready to Fly Again? originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In the late 1980s, Eastern faced more problems stemming from activities by investors, higher fuel prices, high debt levels, and a labor strike. However, Eastern could still cause problems for American by bringing additional capacity to the Miami market, potentially lowering load factors and/or fares. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
And, depending on the severity of Eastern's competition, it could reduce profits for existing airlines' Miami flights.. 1 great stock to buy for 2015 and beyond 2015 is shaping up to be another great year for stocks. Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
Rebirth of Eastern Eastern Air Lines was originally founded in 1926 and grew to be one of the major airlines through most of the 20th century. At the same time, Eastern is also likely to avoid directly competing with American Airlines when it doesn't have to since it's trying to turn a start-up airline profitable, and American could outlast it in a price war because of its larger network and access to capital. Effects on other airlines While Eastern Air Lines is growing in American Airlines' own backyard, other U.S. airlines don't need to be as concerned.
|
The original Eastern Air Lines shut down in 1991, but a group of investors is getting ready to bring back this historic airline name. Currently, American Airlines Group has about 75% of the Miami International Airport market share among U.S. airlines when measured by enplaned passengers, so taking the No. Effects on other airlines While Eastern Air Lines is growing in American Airlines' own backyard, other U.S. airlines don't need to be as concerned.
|
8430.0
|
2015-03-05 00:00:00 UTC
|
Delta: February PRASM Suffers on Foreign Exchange Woes - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/delta%3A-february-prasm-suffers-on-foreign-exchange-woes-analyst-blog-2015-03-05
|
nan
|
nan
|
Airline behemoth Delta Air Lines, Inc.DAL announced disappointing traffic numbers for the month of February. Passenger unit revenue (PRASM, a product of passenger yield and load factor) declined 1.5% on a year-over-year basis, hurt by adverse foreign currency movements. In particular, a strong dollar negatively impacted international results for the month. A turbulent winter also led to the decline in the key revenue metric.
Airline traffic, measured in revenue passenger miles, went up 5.1% year over year to 13.66 billion on a consolidated basis. Domestic traffic climbed 7.2% in the month, while the same on the international front was up 1.9%.
Consolidated capacity or available seat miles improved 6.3% to 17 billion. Load factor (% of seats filled with passengers) stood at 83% for domestic flights, flat year over year. However, the metric declined 250 basis points (bps) to 76.2% for the month on international flights. Consolidated load factor was down 90 bps to 80.3%. The company registered a completion factor of 97.5%, with nearly 78% of flights on schedule.
Despite the not-so-impressive February traffic numbers, we believe Delta is well positioned for growth driven by a strong domestic market, capacity discipline, route expansion, cost control measures and customer-focused initiatives. A few days back, Delta inked a next-generation technology deal with in-flight connectivity provider Gogo Inc. GOGO . According to the deal, Gogo's next generation 2Ku technology will be installed in more than 250 of Delta's planes.
With Delta having reported a below par PRASM figure for February, hurt by foreign exchange, it remains to be seen if the same impacts the monthly traffic numbers for other carriers like United Continental UAL and American Airlines Group AAL .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
GOGO INC (GOGO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
With Delta having reported a below par PRASM figure for February, hurt by foreign exchange, it remains to be seen if the same impacts the monthly traffic numbers for other carriers like United Continental UAL and American Airlines Group AAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Airline behemoth Delta Air Lines, Inc.DAL announced disappointing traffic numbers for the month of February.
|
Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. With Delta having reported a below par PRASM figure for February, hurt by foreign exchange, it remains to be seen if the same impacts the monthly traffic numbers for other carriers like United Continental UAL and American Airlines Group AAL . Passenger unit revenue (PRASM, a product of passenger yield and load factor) declined 1.5% on a year-over-year basis, hurt by adverse foreign currency movements.
|
With Delta having reported a below par PRASM figure for February, hurt by foreign exchange, it remains to be seen if the same impacts the monthly traffic numbers for other carriers like United Continental UAL and American Airlines Group AAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
With Delta having reported a below par PRASM figure for February, hurt by foreign exchange, it remains to be seen if the same impacts the monthly traffic numbers for other carriers like United Continental UAL and American Airlines Group AAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Passenger unit revenue (PRASM, a product of passenger yield and load factor) declined 1.5% on a year-over-year basis, hurt by adverse foreign currency movements.
|
8431.0
|
2015-03-04 00:00:00 UTC
|
QLD, ALTR, AAL, ADI: Large Outflows Detected at ETF
|
AAL
|
https://www.nasdaq.com/articles/qld-altr-aal-adi-large-outflows-detected-etf-2015-03-04
|
nan
|
nan
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $30.2 million dollar outflow -- that's a 2.6% decrease week over week (from 7,650,000 to 7,450,000). Among the largest underlying components of QLD, in trading today Altera Corp. (Symbol: ALTR) is down about 1.1%, American Airlines Group Inc (Symbol: AAL) is off about 1.2%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 1.1%. For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average:
Looking at the chart above, QLD's low point in its 52 week range is $89.40 per share, with $152.84 as the 52 week high point - that compares with a last trade of $148.88. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the largest underlying components of QLD, in trading today Altera Corp. (Symbol: ALTR) is down about 1.1%, American Airlines Group Inc (Symbol: AAL) is off about 1.2%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $30.2 million dollar outflow -- that's a 2.6% decrease week over week (from 7,650,000 to 7,450,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
|
Among the largest underlying components of QLD, in trading today Altera Corp. (Symbol: ALTR) is down about 1.1%, American Airlines Group Inc (Symbol: AAL) is off about 1.2%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 1.1%. For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $89.40 per share, with $152.84 as the 52 week high point - that compares with a last trade of $148.88. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
|
Among the largest underlying components of QLD, in trading today Altera Corp. (Symbol: ALTR) is down about 1.1%, American Airlines Group Inc (Symbol: AAL) is off about 1.2%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $30.2 million dollar outflow -- that's a 2.6% decrease week over week (from 7,650,000 to 7,450,000). For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $89.40 per share, with $152.84 as the 52 week high point - that compares with a last trade of $148.88.
|
Among the largest underlying components of QLD, in trading today Altera Corp. (Symbol: ALTR) is down about 1.1%, American Airlines Group Inc (Symbol: AAL) is off about 1.2%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $30.2 million dollar outflow -- that's a 2.6% decrease week over week (from 7,650,000 to 7,450,000). For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $89.40 per share, with $152.84 as the 52 week high point - that compares with a last trade of $148.88.
|
8432.0
|
2015-03-04 00:00:00 UTC
|
Airline Stock Roundup: Delta, Gogo in Technology Deal; Southwest, JetBlue Add Flights - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/airline-stock-roundup%3A-delta-gogo-in-technology-deal-southwest-jetblue-add-flights-analyst
|
nan
|
nan
|
The past week saw airline behemoth Delta Air LinesDAL inking a deal with in-flight connectivity provider Gogo Inc.GOGO to install the latter's next generation 2Ku technology in more than 250 of its planes. The technology deal apart, the past week also saw Delta revealing disappointing traffic numbers for Feb 2015. The carrier's passenger unit revenue (PRASM, a product of passenger yield and load factor) declined 1.5% in February, hurt by adverse foreign currency movements.
Southwest AirlinesLUV also featured in the news over the past 5 trading days when it announced that it will fly non-stop to 8 new cities out of Dallas Love Field. The carrier will start operating the new flights from Aug 9, 2015. JetBlue Airways Corp.JBLU is also in expansion mode with plans to introduce nonstop flights from Baltimore to Fort Lauderdale, FL from November this year.
On the price front, most airline stocks declined over the past 5 trading days. The NYSE ARCA Airline index gained a mere 0.5% over the said period.
(Read the last 'Airline Stock Roundup' here: Virgin America Q4 Earnings Impress, Delta to Add Flights ).
Recap of the Most Important Stories Over the Past Week
1. Delta Air Lines announced that Gogo's 2Ku connectivity solution will be installed on more than 250 of its narrow-body aircraft. Following the upgrade, passengers on board these Delta planes - which primarily operate on long-haul, domestic, Latin American and Caribbean routes - will enjoy speedier in-flight Internet access (read more: Delta, Gogo in Next Generation Technology Deal for Faster Wi-Fi ).
On the other hand, Delta's PRASM for February declined 1.5% on a year-over-year basis, hurt by adverse foreign currency movements. Airline traffic, measured in revenue passenger miles, went up 5.1% year over year to 13.66 billion on a consolidated basis. Consolidated capacity improved 6.3% to 17 billion. Load factor (% of seats filled with passengers) on a consolidated basis was down 90 bps to 80.3%. The company registered a completion factor of 97.5%, with nearly 78% of flights on schedule in the month.
2. In keeping with its efforts to expand, Southwest Airlines announced that it will fly non-stop to 8 new cities out of Dallas Love Field. The carrier will start operating the new flights from Aug 9, 2015. Following the latest expansion, Southwest's home base will become relatively busier with 180 departures a day from Dallas Love Field to 50 destinations across the globe (read more: Southwest Airlines Adds Routes from Dallas Love Field ).
3. JetBlue Airways announced that it will introduce nonstop flights (twice a day) from Baltimore to Fort Lauderdale, FL. The low-cost carrier intends to launch the new service from November this year. The new connection to Fort Lauderdale-Hollywood International Airport will enable people residing in Maryland and Washington, in particular, to fly nonstop to South Florida - a popular holiday destination (read more: JetBlue to Connect Baltimore with Fort Lauderdale ).
4. United Airlines, the wholly owned subsidiary of United Continental Holdings, Inc.UAL , further expanded the benefits for members of its loyalty program by introducing new cruise travel redemption options. The expansion will allow the members to book cruises using miles or a combination of miles and money. Moreover, members of the loyalty program are eligible to earn miles for cruise travel booked via United Cruises, a division of the carrier.
Performance
The following table shows the price movement of the major airline players over the past week and during the last 6 months.
As the chart above suggests, all major airline stocks traded in the red over the past week, with the exception of Alaska Air Group, Inc.ALK , which gained 3.62%. On the contrary, most of the stocks have gained over the last six months, with JetBlue witnessing the highest upside (42.70%) over the period.
What's Next in the Airline Biz?
We expect February traffic updates from companies like Southwest Airlines, American Airlines GroupAAL and United Continental Holdings in the next five trading days. Moreover, focus will also remain on the price movement of airline stocks, given the volatile nature of oil prices lately.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
GOGO INC (GOGO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
We expect February traffic updates from companies like Southwest Airlines, American Airlines GroupAAL and United Continental Holdings in the next five trading days. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. The past week saw airline behemoth Delta Air LinesDAL inking a deal with in-flight connectivity provider Gogo Inc.GOGO to install the latter's next generation 2Ku technology in more than 250 of its planes.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. We expect February traffic updates from companies like Southwest Airlines, American Airlines GroupAAL and United Continental Holdings in the next five trading days. The carrier's passenger unit revenue (PRASM, a product of passenger yield and load factor) declined 1.5% in February, hurt by adverse foreign currency movements.
|
We expect February traffic updates from companies like Southwest Airlines, American Airlines GroupAAL and United Continental Holdings in the next five trading days. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Following the latest expansion, Southwest's home base will become relatively busier with 180 departures a day from Dallas Love Field to 50 destinations across the globe (read more: Southwest Airlines Adds Routes from Dallas Love Field ).
|
We expect February traffic updates from companies like Southwest Airlines, American Airlines GroupAAL and United Continental Holdings in the next five trading days. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. On the price front, most airline stocks declined over the past 5 trading days.
|
8433.0
|
2015-03-04 00:00:00 UTC
|
LaGuardia to Los Angeles Nonstop? These 2 Airlines Would Be the Winners
|
AAL
|
https://www.nasdaq.com/articles/laguardia-los-angeles-nonstop-these-2-airlines-would-be-winners-2015-03-04
|
nan
|
nan
|
Late last month, The Wall Street Journal dropped a bombshell for the New York airline business. Apparently, the Port Authority of New York and New Jersey -- which operates all three major New York-area airports -- may end a long-standing "perimeter rule" barring flights of more than 1,500 miles at LaGuardia Airport. (Flights to and from Denver and flights on Saturdays are exempt.)
Delta Air Lines and American Airlines , which have the most slots at LaGuardia, would be the biggest winners from loosening flight restrictions there. Flying from LaGuardia to the West Coast could become a very big, lucrative business.
LaGuardia is popular
LaGuardia Airport is much closer to midtown Manhattan than either JFK Airport or Newark Airport. As a result, it's the preferred airport for most New Yorkers -- especially high-spending corporate travelers. The lack of long-haul flights at LaGuardia has historically been the equalizer for JFK and Newark.
Despite this handicap, Delta gave up dozens of valuable flight slots at Reagan National Airport near Washington D.C. in a slot swap with US Airways a few years ago, in order to expand its presence at LaGuardia.
Delta Air Lines now controls nearly half of the slots at LaGuardia Airport.
Delta's management recognized that dominating New York's most popular airport was critical to wooing corporate accounts -- even if flights could go no farther than Dallas or Denver.
Ending the perimeter rules?
Allowing longer-range flights at LaGuardia would make Delta's leading position there even more valuable. It would be able to offer nonstop flights to major destinations like Los Angeles, San Francisco, Seattle, San Diego, Las Vegas, and Phoenix.
American Airlines would adopt the same strategy. American's president, Scott Kirby, recently told an investor conference , "We'd fly a lot of flights from LaGuardia to the West Coast, and we'd fly them with bigger aircraft."
To add long-haul flights at LaGuardia, Delta and American would need to drop other flights, because the total number of takeoff and landing slots is fixed. However, they would still come out ahead. Short-haul flights on small regional jets aren't nearly as profitable as transcontinental flights.
Focus on premium routes
The opening of LaGuardia for long-haul flights would have the biggest impact on flights to Los Angeles and San Francisco. Today, Delta and American compete with three other carriers on the routes from JFK to LA and San Francisco: United Continental , JetBlue Airways , and Virgin America .
These are two of the busiest airline routes in the U.S. They also cater to a high proportion of business travelers. Accordingly, each airline tries to put its best foot forward on these routes, offering relatively frequent flights, and premium amenities that can't be found on most domestic flights.
Airlines have outfitted their transcontinental flights from JFK with premium amenities. Photo: JetBlue.
The high-paying business travelers, who make these routes so lucrative, would pay even more for the convenience of using LaGuardia Airport. But while it would be a no-brainer for Delta and American to move their transcontinental flights to LaGuardia, it would be more challenging for United, JetBlue, and Virgin America.
For example, by this summer, JetBlue plans to fly a total of 13 roundtrips from JFK to San Francisco and Los Angeles. By contrast, it has only 18 slot pairs at LaGuardia. It would have to decimate its current LaGuardia schedule to replicate its transcontinental service there.
United has significantly more LaGuardia slots than JetBlue, but it would still have to reduce service to its other hubs in order to add flights to Los Angeles and San Francisco. At the other end of the spectrum, Virgin America has just six slot pairs at LaGuardia, not enough to create a competitive offering even if it dropped all of its other flights there.
If competitors are unable to match Delta and American with frequent flights from LaGuardia to Los Angeles and San Francisco, it could make the transcontinental market an even bigger profit center for them.
JFK will remain important
If the Port Authority lifts the LaGuardia perimeter rules, the airport will become even more important to the New York strategies of Delta Air Lines and American Airlines -- both of which also have significant operations at JFK.
JFK Airport will continue to be a key airport for American and Delta. Photo: American Airlines.
That said, LaGuardia still lacks customs facilities. As a result, international flights would stay at JFK and Newark, except for flights to a few airports with U.S. border preclearance facilities (mainly in Canada and the Caribbean).
Delta and American might use the slots freed up from moving transcontinental flights to LaGuardia to add new international routes from JFK. They could also add regional routes from smaller East Coast and Midwestern cities to JFK to provide more domestic-to-international connecting opportunities.
In the long run, lifting the LaGuardia perimeter rules should allow Delta and -- to a lesser extent -- American to better utilize their slot portfolios at both airports. This could improve their competitive positioning in the largest U.S. air-travel market.
Check back later this week to learn which companies might lose out from this rule change!
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article LaGuardia to Los Angeles Nonstop? These 2 Airlines Would Be the Winners originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of JetBlue Airways and Virgin America The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Delta's management recognized that dominating New York's most popular airport was critical to wooing corporate accounts -- even if flights could go no farther than Dallas or Denver. Today, Delta and American compete with three other carriers on the routes from JFK to LA and San Francisco: United Continental , JetBlue Airways , and Virgin America . If competitors are unable to match Delta and American with frequent flights from LaGuardia to Los Angeles and San Francisco, it could make the transcontinental market an even bigger profit center for them.
|
It would be able to offer nonstop flights to major destinations like Los Angeles, San Francisco, Seattle, San Diego, Las Vegas, and Phoenix. Focus on premium routes The opening of LaGuardia for long-haul flights would have the biggest impact on flights to Los Angeles and San Francisco. If competitors are unable to match Delta and American with frequent flights from LaGuardia to Los Angeles and San Francisco, it could make the transcontinental market an even bigger profit center for them.
|
To add long-haul flights at LaGuardia, Delta and American would need to drop other flights, because the total number of takeoff and landing slots is fixed. JFK will remain important If the Port Authority lifts the LaGuardia perimeter rules, the airport will become even more important to the New York strategies of Delta Air Lines and American Airlines -- both of which also have significant operations at JFK. Delta and American might use the slots freed up from moving transcontinental flights to LaGuardia to add new international routes from JFK.
|
United has significantly more LaGuardia slots than JetBlue, but it would still have to reduce service to its other hubs in order to add flights to Los Angeles and San Francisco. Delta and American might use the slots freed up from moving transcontinental flights to LaGuardia to add new international routes from JFK. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
8434.0
|
2015-03-03 00:00:00 UTC
|
Alaska Air Group (ALK) Is Showing You the Money
|
AAL
|
https://www.nasdaq.com/articles/alaska-air-group-alk-showing-you-money-2015-03-03
|
nan
|
nan
|
Observation and intuition both have their place in trading and investing. When an investor observes a product or service being embraced by everybody they know, or their children know, it is smart to take note. The plural of anecdote is not data, but ignoring the evidence of one’s own eyes and experience can lead to missed opportunities. The opposite of that, however, that not seeing the growth in something around you is reason to hold off, is not usually true.
That is particularly true in certain industries, such as airlines, where the geographical division of markets may leave you blissfully unaware of the success of a carrier if it doesn’t have a presence in your area. In that case, it is the evidence of the numbers and the cash, not your eyes that should be believed. As an example, I, as an East Coast boy, was a little slow to appreciate the growth of Alaska Air Group (ALK). I don’t, however, have to see the planes to appreciate numbers like these.
Alaska has grown revenue and EPS every year since 2008. In addition, consensus estimates are for a further 20 percent growth in the next 12 months. In that situation of proven and projected growth, sky high P/Es are the norm. Even by the standards of an industry with traditionally low P/Es, though, ALK’s, at below 12 is ridiculously attractive. When that projected growth is factored in, giving a PEG ratio of 0.5865, the value is even more evident (A PEG below 1.0 is generally considered to indicate an undervalued stock).
Of course the market isn’t stupid; value like that only comes when there are risks. In the case of ALK, some of that risk is contained in the chart above. After a strong run up at the end of last year, momentum in the stock seems to have stalled. A chart like that is usually a warning sign, indicating that the main move has been missed and buying on the way down only provides liquidity for those who were smart enough to get in early.
In this case, though, ALK’s run up had as much to do with general strength in the industry as anything. Falling oil prices and relative strength in the U.S. economy, along with the fading of the Ebola scare and other factors made Q4 2014 a great one for airline stocks. In fact, during that run up, ALK’s roughly 75 percent appreciation looks restrained when compared to some others. American Airlines (AAL), for example, more than doubled during that time.
A far bigger risk to ALK is the fact that Delta Airlines (DAL) is expanding rapidly in their market, most notably in their Seattle, Washington hub. Analysts’ estimates, and certainly the share price, however, seem to have that increased competition fully discounted. What is left is a company that keeps growing, has an almost spotless balance sheet, great cash generation (over $1 billion in operating cash flow) and a new-found commitment to return some of those greenbacks to stockholders.
That is why, despite never having seen an Alaska Airlines plane until a recent trip to L.A., it is obvious that the stock is a decent investment. Money talks, and in the case of ALK, the cash is shouting “Buy me."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines (AAL), for example, more than doubled during that time. That is particularly true in certain industries, such as airlines, where the geographical division of markets may leave you blissfully unaware of the success of a carrier if it doesn’t have a presence in your area. Falling oil prices and relative strength in the U.S. economy, along with the fading of the Ebola scare and other factors made Q4 2014 a great one for airline stocks.
|
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines (AAL), for example, more than doubled during that time. That is why, despite never having seen an Alaska Airlines plane until a recent trip to L.A., it is obvious that the stock is a decent investment.
|
American Airlines (AAL), for example, more than doubled during that time. When that projected growth is factored in, giving a PEG ratio of 0.5865, the value is even more evident (A PEG below 1.0 is generally considered to indicate an undervalued stock). In this case, though, ALK’s run up had as much to do with general strength in the industry as anything.
|
American Airlines (AAL), for example, more than doubled during that time. In that case, it is the evidence of the numbers and the cash, not your eyes that should be believed. In the case of ALK, some of that risk is contained in the chart above.
|
8435.0
|
2015-03-01 00:00:00 UTC
|
This Boeing 787 is Just the Beginning for American Airlines
|
AAL
|
https://www.nasdaq.com/articles/boeing-787-just-beginning-american-airlines-2015-03-01
|
nan
|
nan
|
The Boeing 787 is one of the most popular planes among airlines and passengers today as new routes featuring the passenger jet are opened. Recently, American Airlines Group took delivery of its first Boeing 787. In this article I'll look at where it is flying and what the Boeing 787 program means for this major airline.
Fleet modernization
As part of American Airlines' cost reduction strategy, the company has been on an aircraft buying spree. In late 2008, the airline placed its order for 42 787 Dreamliners with rights to acquire 58 additional 787 Dreamliners. And in 2011, shortly before its bankruptcy filing, American placed one of the largest aircraft orders in history for 460 narrowbody aircraft.
With the potential to acquire up to 100 units of this model, American is making the Boeing 787 a large part of its strategy. As with most fleet modernizations, the primary goal is to reduce fuel consumption. And there is significant fuel savings potential -- Boeing estimates the 787 consumes 20% less fuel than similar existing aircraft such as the Boeing 767 .
This fits with the reasoning behind the overhaul of American's narrow-body fleet with new versions of the Airbus A320 and Boeing 737. In both cases, the manufacturers boast significant fuel consumption reductions compared to currently operating aircraft of similar size which, in most cases, are older 737s and A320s.
Unlike most other airlines, American Airlines Group does not hedge its fuel costs, making fluctuations in this expense particularly critical to the company. American Airlines has benefited the most among major U.S. airlines from the recent drop in fuel prices, but it is also exposed to any potential rise in this cost.
Once the fleet modernization program nears completion around the end of the decade, American Airlines will have one of the youngest fleets in the industry, helping it to reduce airlinewide fuel consumption and thus financial risk from spikes in fuel costs.
If the airline can cut fuel usage by 10% by adding these new planes, most of which have 15%-20% fuel savings over similar existing aircraft, then it would save approximately 440 million gallons of fuel per year based on the 4.4 billion gallon estimate from American's 2013 10-k form. At the latest Gulf Coast Jet Fuel price of $1.79 per gallon, this would mean a $790 million annual savings for the airline. Of course, there will be other factors that come into play including route changes and the possible substitution of one size of aircraft for another but this number can serve as a general estimate.
Passenger experience
The Boeing 787 is more than a tool of fuel and maintenance savings, it's also poised to provide an improved passenger experience.
In business class, the airline is putting in lie-flat seats complete with 15.4-inch touchscreen monitors, along with universal AC outlets and USB ports at each seat. The main cabin seats are also tech-loaded with individual 9-inch touchscreens, AC power outlets, and USB ports. Additionally, the plane is equipped with satellite W-Fi and has cabin pressure equivalent to the air at 6,000 feet in contrast to older aircraft with pressurization equivalent to 8,000 feet.
Passengers are not the only ones who benefit from these features. American Airlines can also use these features to compete with other airlines in the passenger experience arms race.
Lie-flat business class seats are fast becoming a necessity to effectively compete for the long-haul business class market. In many cases, these passengers are business travelers spending someone else's money and are therefore searching out the best air travel experience. In other cases, these seats are given as upgrades to high status travelers which, in turn, encourages these travelers to stick with American to continue taking advantage of the status earned at the airline. And with business class passengers generating a disproportionate share of airline revenue, it's clearly an important market to please.
In the main cabin, American has the potential to increase customer satisfaction rates encouraging repeat customers while incurring little extra cost of its own. And in the airline industry, customer loyalty is important. Airlines have wheeled out all sots of miles, rewards, status, and upgrade programs to try to encourage passengers to fly their airline again. On top of that, the satisfaction of a few customers can influence how larger organizations choose to book flights. By bringing in basic features such as power supplies and higher cabin pressure, American has a better chance of building this sort of loyalty among its passengers.
Manufacturing rivalry
Despite the plans to bring in the Boeing 787, American Airlines is still ground worth fighting for by both Boeing and Airbus. Unlike some airlines that focus on one manufacturer over the other, American has ordered large numbers of aircraft from both airplane makers. Its narrow-body order for over 400 aircraft included variants of the Airbus A320 and Boeing 737.
American Airlines has also diversified in the wide-body area, where it has ordered 22 Airbus A350 aircraft to join its fleet alongside the Boeing 787. Clearly, orders from this airline are still up for grabs for whichever manufacturer can provide the best option.
Aerospace manufacturing investors should take this as a sign that neither manufacturer can afford to sit back and expect American to show a loyalty to one manufacturer over the other. As such, there will still be fierce competition for orders from this airline potentially giving American more power in price negotiations and the airline's ability to influence what versions of aircraft Boeing and Airbus develop.
Getting ready for takeoff
Right now, American Airlines is testing the first of its Boeing 787 Dreamliners in West Texas, giving pilots experience flying the aircraft outside of simulators. But soon the 787 will connect Dallas/Fort Worth International to Chicago, Beijing, and Buenos Aires.
With commitments for 42 aircraft and rights for another 58, the Boeing 787 is set to play a big role in American Airlines' strategy to reduce its exposure to volatile fuel prices and capture more passengers by offering a better experience. As new aircraft come into this airline's fleet, investors and passengers should be ready to see big changes at American Airlines.
Is American Airlines Group The Motley Fool's Top Stock for 2015 or have we found something even better?
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article This Boeing 787 is Just the Beginning for American Airlines originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By bringing in basic features such as power supplies and higher cabin pressure, American has a better chance of building this sort of loyalty among its passengers. Getting ready for takeoff Right now, American Airlines is testing the first of its Boeing 787 Dreamliners in West Texas, giving pilots experience flying the aircraft outside of simulators. With commitments for 42 aircraft and rights for another 58, the Boeing 787 is set to play a big role in American Airlines' strategy to reduce its exposure to volatile fuel prices and capture more passengers by offering a better experience.
|
Fleet modernization As part of American Airlines' cost reduction strategy, the company has been on an aircraft buying spree. As such, there will still be fierce competition for orders from this airline potentially giving American more power in price negotiations and the airline's ability to influence what versions of aircraft Boeing and Airbus develop. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
As such, there will still be fierce competition for orders from this airline potentially giving American more power in price negotiations and the airline's ability to influence what versions of aircraft Boeing and Airbus develop. As new aircraft come into this airline's fleet, investors and passengers should be ready to see big changes at American Airlines. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
And there is significant fuel savings potential -- Boeing estimates the 787 consumes 20% less fuel than similar existing aircraft such as the Boeing 767 . As new aircraft come into this airline's fleet, investors and passengers should be ready to see big changes at American Airlines. Is American Airlines Group The Motley Fool's Top Stock for 2015 or have we found something even better?
|
8436.0
|
2015-02-22 00:00:00 UTC
|
As Profits Surge, Airlines Share the Wealth
|
AAL
|
https://www.nasdaq.com/articles/profits-surge-airlines-share-wealth-2015-02-22
|
nan
|
nan
|
Airline profits surged to record levels in 2014 and are poised to move even higher in 2015 as fuel prices have fallen significantly. But the airlines are not keeping all of the cash for themselves and are rewarding two key stakeholders: employees and shareholders.
Employee profit-sharing
Today, employees at many airlines are getting profit-sharing payments thanks to the success of the airlines they work for. But the airlines are not doing this just out of generosity. During times of slimmer profits, profit-sharing agreements were negotiated into many airline contracts, and now that profits have grown, these employees are getting millions in combined total payouts.
According to The Dallas Morning News , employees of Delta Air Lines will split $1.1 billion; Southwest Airlines , $355 million; United Continental Holdings , $235 million; and Alaska Air Group , $116 million. North of the border, employees of Air Canada and WestJet Airlines will also see rewards from their employers' extra profits.
Besides generating good publicity, there are other upsides to profit sharing as well. One potential positive is that it motivates employees to produce greater profits for the airline since some of those profits will find their way back to themselves. But the effects of this are difficult to measure and have been debated among airline executives, so no clear conclusion can be drawn here.
Profit sharing also softens the blow to airlines from economic slowdowns, since it lowers the labor cost structure during times of losses or lower profits. In the cases of Delta, Southwest, United, and Alaska, profit-sharing payments vary significantly by the amount of profit made.
But management at American Airlines Group is taking a different approach. In the latest contracts with the airline's pilots and flight attendants, management successfully kept profit-sharing out. But in exchange, the airline's pilots receive base pay 7% higher than at Delta Air Lines, according to American's management.
During times of high airline profits, American Airlines will have the upper hand through lower profit-sharing expenses than rivals; however, American may find itself at a disadvantage if industry conditions worsen.
Shareholder returns
As airline employees receive profit sharing, airlines are looking to return capital to their shareholders as well. Last year, American Airlines Group joined Delta Air Lines, Southwest Airlines, and Alaska Air Group in offering a dividend, and in the same year, Delta boosted its dividend by 50% to $0.09 per quarter.
Besides dividends, airlines have been pouring money into share buybacks, with all the major U.S.-based airlines implementing some sort of stock buyback program. Right now, American Airlines is planning to use some $2 billion of its fuel savings to repurchase stock.
Despite the drop in fuel prices and forecasts for higher profits ahead, airline dividends have remained small in comparison to the market average. But this may be a deliberate move on the airlines' part. Unlike dividends, which raise a red flag if reduced or suspended, stock buybacks are more flexible and can be ended with fewer consequences to investor confidence.
Additionally, airline shares trade below the market average, with some airlines trading with a single-digit forward-price-to-earnings ratio. This allows these airlines to get significant value out of share repurchases. For example, American's share repurchase program could buy back about 5% of the airline's outstanding shares at the current price level and save the airline nearly $17 million in annual dividends -- all with shares trading at only five times forward earnings.
In the following quarters, some major airlines may decide to raise dividends if profits continue to remain high, and United, the only major U.S.-based airline without a dividend, may begin paying one; however, airline investors should not expect dividends to surge higher immediately as airlines look to maintain capital flexibility.
Risks
Airline investors should be aware that much of the forecast 2015 profits is expected to come from lower fuel costs. The increase in earnings expectations can be seen by examining 2015 earnings estimates and how they have soared as oil prices fell. But airlines will also need to maintain fare discipline and not give away the fuel savings in the form of lower fares.
Airline executives are taking pricing seriously, with Doug Parker, CEO of American Airlines Group, saying on a conference call that management will run the airline as if oil were at $100 per barrel. At Delta Air Lines, CEO Richard Anderson told the Detroit Free Press how the airline prices fares without regard to fuel costs. Even though pricing appears to be holding up, investors should not dismiss the risk of falling fares eating into fuel savings. Accordingly, investors should keep an eye out for reports of changes in airline yields and pricing power.
These fuel savings are also subject to changes in the price of oil. Since there are widely varying estimates on where oil prices are headed, the future of oil prices remains a wild card that could reduce the fuel savings if oil prices rise or drive savings higher if oil prices fall.
Sharing the wealth
Airline profits are now rewarding both employees and shareholders through different types of capital returns. With profits moving higher and valuations remaining low, investors with greater risk tolerance should see if any of these airlines fit with their investment strategy.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article As Profits Surge, Airlines Share the Wealth originally appeared on Fool.com.
Alexander MacLennan owns shares of Air Canada, American Airlines Group and Delta Air Lines, and has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Despite the drop in fuel prices and forecasts for higher profits ahead, airline dividends have remained small in comparison to the market average. Unlike dividends, which raise a red flag if reduced or suspended, stock buybacks are more flexible and can be ended with fewer consequences to investor confidence. At Delta Air Lines, CEO Richard Anderson told the Detroit Free Press how the airline prices fares without regard to fuel costs.
|
According to The Dallas Morning News , employees of Delta Air Lines will split $1.1 billion; Southwest Airlines , $355 million; United Continental Holdings , $235 million; and Alaska Air Group , $116 million. In the following quarters, some major airlines may decide to raise dividends if profits continue to remain high, and United, the only major U.S.-based airline without a dividend, may begin paying one; however, airline investors should not expect dividends to surge higher immediately as airlines look to maintain capital flexibility. Alexander MacLennan owns shares of Air Canada, American Airlines Group and Delta Air Lines, and has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
Last year, American Airlines Group joined Delta Air Lines, Southwest Airlines, and Alaska Air Group in offering a dividend, and in the same year, Delta boosted its dividend by 50% to $0.09 per quarter. In the following quarters, some major airlines may decide to raise dividends if profits continue to remain high, and United, the only major U.S.-based airline without a dividend, may begin paying one; however, airline investors should not expect dividends to surge higher immediately as airlines look to maintain capital flexibility. Alexander MacLennan owns shares of Air Canada, American Airlines Group and Delta Air Lines, and has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
Airline profits surged to record levels in 2014 and are poised to move even higher in 2015 as fuel prices have fallen significantly. For example, American's share repurchase program could buy back about 5% of the airline's outstanding shares at the current price level and save the airline nearly $17 million in annual dividends -- all with shares trading at only five times forward earnings. Even though pricing appears to be holding up, investors should not dismiss the risk of falling fares eating into fuel savings.
|
8437.0
|
2015-02-21 00:00:00 UTC
|
4 Airline Fees You May Not Know About (And Why They Exist)
|
AAL
|
https://www.nasdaq.com/articles/4-airline-fees-you-may-not-know-about-and-why-they-exist-2015-02-21
|
nan
|
nan
|
Travelers and investors are now familiar with many airline fees. Change fees and baggage fees contributed $6 billion in revenue to U.S. based airlines alone in 2013 according to the Department of Transportation.
But many carriers have more unusual fees and each carrier has their own reason for implementing these fees.
Unintended Consequences of DOT Regulation Charge
Even though the airline industry is considered deregulated, it still has a wide array of rules and regulations; many of which airlines find annoying. In protest, Spirit Airlines has decided to pass on what it argues are additional costs incurred from these regulations in the form of a $2 fee assessed on nearly all flights.
But currency movements have negatively affected Canadian carriers which have many expenses in U.S. dollars but generate revenue in Canadian dollars. With the Canadian dollar dropping from around $0.90 USD to $0.80 USD in the past several months, Canadian carriers have been forced to react. This has led to a currency surcharge of $35 for Air Canada Vacations , Sunwing Vacations and flights from Transat A.T. subsidary Air Transat. Air Canada has also pointed to the weaker loonie as a reason that fares have not reflected lower oil prices .
Right now, the question many investors are asking is whether these currency surcharges are fully making up for the drop in the Canadian dollar. In short, the answer is no. The currency surcharges are only applied to a small part of total flights (the Vacations ones) so the airline does not even collect the surcharge on many flights. In its most recent quarter Air Canada reported a $115 million foreign exchange loss, far in excess of what these limited currency surcharges can generate.
Although U.S. carriers have less to worry about in terms of currency movements changing their expenses, the currency surcharge is a reminder for investors in foreign airlines to take currency risk into account when making investment decisions.
Printed boarding pass fee
Most travelers take a printed boarding pass for granted but it's not free at every airline. Spirit Airlines has a $10 printed boarding pass fee and Allegiant Travel Company , parent company of Allegiant Air, has a $5 printed boarding pass fee. Irish airline Ryanair also has a 15 euro fee for replacing a lost boarding pass.
What all three of these airlines have in common is that they're ultra-discount carriers. These types of airlines charge deeply discounted fares upfront but make money on ancillary revenue generated from fees and extras. Clearly it does not cost Spirit, Allegiant, or Ryanair anywhere near their listed fee costs to print the boarding pass but the fee serves as a way to collect revenue and reduce time spent printing boarding passes for flyers at the counter.
By itself, the printed boarding pass fee makes up a relatively small part of total ancillary revenue. For example, it makes up only part of the "Other" category of Spirit's ancillary revenue collected in 2013; a category that amounted to only 13% of total ancillary revenue.
But this doesn't diminish the value of this fee and others like it. Instead of having just a few fees, the ultra-discount airline model relies on a plethora of fees covering areas from boarding passes to on-board snacks. Together, these fees generate a substantial portion of ultra-discount airline revenue with non-ticket revenue accounting for over 40% of Spirit's 2013 revenue and around one third of Allegiant's 2013 revenue.
Since this fee has not found its way into the major carriers, a traveler could fly one of these airlines to avoid the fee. But the best way to avoid this fee is to get a mobile boarding pass on your phone or print the boarding pass at home.
The unusual fees
Baggage fees and change fees are among the most common fees seen by travelers but other less common surcharges and fees still help to pad airline top and bottom lines. As fees have risen, they have become a major source of airline revenue and even helped to create the ultra-discount airline segment.
With billions in annual revenue generated from fees in total, both investors and travelers should keep track of what fees their airlines are charging.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article 4 Airline Fees You May Not Know About (And Why They Exist) originally appeared on Fool.com.
Alexander MacLennan owns shares of Air Canada, American Airlines Group and Delta Air Lines,. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In protest, Spirit Airlines has decided to pass on what it argues are additional costs incurred from these regulations in the form of a $2 fee assessed on nearly all flights. In its most recent quarter Air Canada reported a $115 million foreign exchange loss, far in excess of what these limited currency surcharges can generate. These types of airlines charge deeply discounted fares upfront but make money on ancillary revenue generated from fees and extras.
|
Spirit Airlines has a $10 printed boarding pass fee and Allegiant Travel Company , parent company of Allegiant Air, has a $5 printed boarding pass fee. By itself, the printed boarding pass fee makes up a relatively small part of total ancillary revenue. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
Spirit Airlines has a $10 printed boarding pass fee and Allegiant Travel Company , parent company of Allegiant Air, has a $5 printed boarding pass fee. Clearly it does not cost Spirit, Allegiant, or Ryanair anywhere near their listed fee costs to print the boarding pass but the fee serves as a way to collect revenue and reduce time spent printing boarding passes for flyers at the counter. The unusual fees Baggage fees and change fees are among the most common fees seen by travelers but other less common surcharges and fees still help to pad airline top and bottom lines.
|
By itself, the printed boarding pass fee makes up a relatively small part of total ancillary revenue. Together, these fees generate a substantial portion of ultra-discount airline revenue with non-ticket revenue accounting for over 40% of Spirit's 2013 revenue and around one third of Allegiant's 2013 revenue. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
8438.0
|
2015-02-18 00:00:00 UTC
|
VXF, AAL, ILMN, UAL: ETF Inflow Alert
|
AAL
|
https://www.nasdaq.com/articles/vxf-aal-ilmn-ual-etf-inflow-alert-2015-02-18
|
nan
|
nan
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Extended Market ETF (Symbol: VXF) where we have detected an approximate $145.6 million dollar inflow -- that's a 3.8% increase week over week in outstanding units (from 42,284,979 to 43,889,090). Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 1%, Illumina Inc (Symbol: ILMN) is down about 0.8%, and United Continental Holdings Inc (Symbol: UAL) is lower by about 0.5%. For a complete list of holdings, visit the VXF Holdings page » The chart below shows the one year price performance of VXF, versus its 200 day moving average:
Looking at the chart above, VXF's low point in its 52 week range is $77.51 per share, with $90.9234 as the 52 week high point - that compares with a last trade of $90.52. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 1%, Illumina Inc (Symbol: ILMN) is down about 0.8%, and United Continental Holdings Inc (Symbol: UAL) is lower by about 0.5%. For a complete list of holdings, visit the VXF Holdings page » The chart below shows the one year price performance of VXF, versus its 200 day moving average: Looking at the chart above, VXF's low point in its 52 week range is $77.51 per share, with $90.9234 as the 52 week high point - that compares with a last trade of $90.52. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
|
Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 1%, Illumina Inc (Symbol: ILMN) is down about 0.8%, and United Continental Holdings Inc (Symbol: UAL) is lower by about 0.5%. For a complete list of holdings, visit the VXF Holdings page » The chart below shows the one year price performance of VXF, versus its 200 day moving average: Looking at the chart above, VXF's low point in its 52 week range is $77.51 per share, with $90.9234 as the 52 week high point - that compares with a last trade of $90.52. Click here to find out which 9 other ETFs had notable inflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 1%, Illumina Inc (Symbol: ILMN) is down about 0.8%, and United Continental Holdings Inc (Symbol: UAL) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Extended Market ETF (Symbol: VXF) where we have detected an approximate $145.6 million dollar inflow -- that's a 3.8% increase week over week in outstanding units (from 42,284,979 to 43,889,090). For a complete list of holdings, visit the VXF Holdings page » The chart below shows the one year price performance of VXF, versus its 200 day moving average: Looking at the chart above, VXF's low point in its 52 week range is $77.51 per share, with $90.9234 as the 52 week high point - that compares with a last trade of $90.52.
|
Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 1%, Illumina Inc (Symbol: ILMN) is down about 0.8%, and United Continental Holdings Inc (Symbol: UAL) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Extended Market ETF (Symbol: VXF) where we have detected an approximate $145.6 million dollar inflow -- that's a 3.8% increase week over week in outstanding units (from 42,284,979 to 43,889,090). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
|
8439.0
|
2015-02-17 00:00:00 UTC
|
Delta Air Lines, Inc. (DAL) Ex-Dividend Date Scheduled for February 18, 2015
|
AAL
|
https://www.nasdaq.com/articles/delta-air-lines-inc-dal-ex-dividend-date-scheduled-february-18-2015-2015-02-17
|
nan
|
nan
|
Delta Air Lines, Inc. ( DAL ) will begin trading ex-dividend on February 18, 2015. A cash dividend payment of $0.09 per share is scheduled to be paid on March 13, 2015. Shareholders who purchased DAL prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that DAL has paid the same dividend.
The previous trading day's last sale of DAL was $44.5, representing a -12.85% decrease from the 52 week high of $51.06 and a 47.74% increase over the 52 week low of $30.12.
DAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and American Airlines Group, Inc. ( AAL ). DAL's current earnings per share, an indicator of a company's profitability, is $.75. Zacks Investment Research reports DAL's forecasted earnings growth in 2015 as 51.07%, compared to an industry average of 18.2%.
For more information on the declaration, record and payment dates, visit the DAL Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DAL through an Exchange Traded Fund [ETF]?
The following ETF(s) have DAL as a top-10 holding:
ETF Series Solutions - Deep Value ETF ( DVP )
Guggenheim S&P 500 Pure Growth ETF ( RPG )
First Trust Value Line Equity Allocation Index Fund (FVI).
The top-performing ETF of this group is RPG with an increase of 5.42% over the last 100 days. DVP has the highest percent weighting of DAL at 3.66%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and American Airlines Group, Inc. ( AAL ). Zacks Investment Research reports DAL's forecasted earnings growth in 2015 as 51.07%, compared to an industry average of 18.2%. For more information on the declaration, record and payment dates, visit the DAL Dividend History page.
|
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. DAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and American Airlines Group, Inc. ( AAL ). Shareholders who purchased DAL prior to the ex-dividend date are eligible for the cash dividend payment.
|
DAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and American Airlines Group, Inc. ( AAL ). Shareholders who purchased DAL prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DAL Dividend History page.
|
DAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and American Airlines Group, Inc. ( AAL ). A cash dividend payment of $0.09 per share is scheduled to be paid on March 13, 2015. Shareholders who purchased DAL prior to the ex-dividend date are eligible for the cash dividend payment.
|
8440.0
|
2015-02-15 00:00:00 UTC
|
This Airline Could Be Shrinking Seats (but It's Not the Only One)
|
AAL
|
https://www.nasdaq.com/articles/airline-could-be-shrinking-seats-its-not-only-one-2015-02-15
|
nan
|
nan
|
Airline seats are a common complaint among flyers, but new high-density layouts could make economy seats even less comfortable. United Continental Holdings , parent company of United Airlines, may be about to shrink some of its seats, following the lead of other airlines. But will the trend continue? And how will airlines benefit financially?
Shrinking seats
The Los Angeles Times reports that United Airlines is considering a 10-seat-across layout for its Boeing 777-200 order, compared to the current nine seats across. But since the Boeing 777-200 isn't getting any wider, the seats will have to get narrower.
Currently, most economy-class seats are between 17 inches and 18.5 inches wide, with seat width remaining fairly consistent among airlines but differing by type of aircraft. The Times notes that if United does opt for 10 seats across in its Boeing 777-200, the seat width could shrink from 18 inches to 17 inches.
But the trend that passengers and investors should really be looking at is how high-density layouts are becoming more common across the airline industry -- and how airlines are therefore getting more money out of each flight.
Increasing density
The costs to operate an aircraft vary little by number of passengers on board, since most of the flight cost comes in the form of fuel and crew. Realizing this, airlines have been putting more seats in each plane to create what they call "high density" layouts.
Besides reducing seat width, airlines have been shrinking seats in another way. Seats that are slimmer in thickness are now finding their way into planes from United, Delta Air Lines , American Airlines Group , and Southwest Airlines . These seats have played a key role in increasing the number of seats that can be put on a plane without reducing legroom.
But there have been criticisms of slimmer seats. Some passengers have complained about reduced comfort, though airlines contend that both passengers and airlines come out ahead.
Slimmer seats are becoming more commonplace across both narrowbody and widebody aircraft, but narrower seats tend to show up on widebody aircraft such as the Boeing 777. The reason for this comes down to simple math: Adding another seat to a row requires reducing the size of existing seats by a greater percentage, to comply with federal regulations governing minimum aisle width. In aircraft with six or fewer seats across, this squeeze would be more than passengers would be willing to take.
Adding an extra seat per row to the Boeing 777 is not unique. If United goes ahead with its 10-seat-abreast configuration, it will join such other carriers as American Airlines (two of three seating layouts), Air Canada (one of three layouts), Air France-KLM (all layouts), Japan Airlines (two of eight layouts), and Alitalia (all layouts).
Using data from SeatGuru, I have found that almost all airlines with the 10-abreast configuration on the Boeing 777-200 have a seat width of 17 inches to 17.5 inches. With nine seats across currently and a seat width of 18 inches, adding a 10th seat is likely to shrink the seat width on United's Boeing 777-200 to the range of similar 10-abreast aircraft.
According to SeatGuru, British Airways, Delta Air Lines, and Turkish Airlines are among the carriers that still have the nine-abreast configuration on all aircraft. For now, that gives these seats a 17.5-inch to 18-inch width.
Benefits for airlines
Adding more seats is a key way for airlines to reduce cost per available seat mile, or CASM. If airlines can maintain fare levels, this should boost margins in this traditionally low-margin industry. Not only would these higher margins boost profits, but they would also provide a larger margin of safety in the event of a drop in demand or tougher pricing competition in the industry.
Shrinking the seats of economy passengers could have another benefit for airlines as well. With all sorts of higher-class seating options on board, economy passengers may be more willing to upgrade to better seats, bringing more revenue to the airline. Various types of upgraded economy seats have become common among major carriers, and shrinking standard economy seats could help airlines in the upsell.
For a look at how one airline is benefiting, take Air Canada. Financial Postnotes that the airline has found that by adding extra seats to flights to the Caribbean, it can turn previously unprofitable routes into profitable ones. As previously mentioned, Air Canada is also one of the airlines operating the Boeing 777 with 10 seats across in a high-density layout. Management noted that additional seats is one of the key ways to meet their goal to cut costs by 15%, and has called it a "great strategy."
Since launching its high-density aircraft, Air Canada's load factor has held fairly steady, meaning that the airline is now able to sell more tickets on the same plane. Although U.S.-based carriers operate different routes, that fact that these layouts work for Air Canada is a bullish sign for U.S. carriers looking to adopt them. An important area to watch here is whether these layouts can become a U.S. industry standard. If they do, airlines stand to benefit as their competition will not be offering a layout that makes their own appear less comfortable by comparison.
United is seeing the benefits from slimmer seats, now installed in 300 of its aircraft , as the airline is able to add capacity without materially changing costs. In its most recent conference call, United's chief revenue officer noted that when the slim seat installations are finished at the end of 2015, it will be like adding 14 new aircraft to the fleet.
With no plans to lower fares, United could effectively add 14 additional aircrafts' worth of seats with little additional costs to itself.
What to watch for
Several airlines already operate the Boeing 777 with 10 seats across, and many others have been installing slimmer seats on their planes. In the short term, fliers and investors should look to see whether United does configure its Boeing 777 with 10 seats across: This move could also encourage Delta Air Lines to add the extra seat per row, making the high-density 777 layout the U.S. airline standard, which will likely boost revenue per flight.
Longer-term, it's worth watching how far the increased density trend will go. Narrower seats on widebody aircraft and slimmer seats on all types of aircraft are areas to watch for, but it's always worth keeping an eye on what new ideas airlines may bring to the skies.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article This Airline Could Be Shrinking Seats (but It's Not the Only One) originally appeared on Fool.com.
Alexander MacLennan owns shares of Air Canada, American Airlines Group and Delta Air Lines, and has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Financial Postnotes that the airline has found that by adding extra seats to flights to the Caribbean, it can turn previously unprofitable routes into profitable ones. Since launching its high-density aircraft, Air Canada's load factor has held fairly steady, meaning that the airline is now able to sell more tickets on the same plane. In its most recent conference call, United's chief revenue officer noted that when the slim seat installations are finished at the end of 2015, it will be like adding 14 new aircraft to the fleet.
|
Seats that are slimmer in thickness are now finding their way into planes from United, Delta Air Lines , American Airlines Group , and Southwest Airlines . In the short term, fliers and investors should look to see whether United does configure its Boeing 777 with 10 seats across: This move could also encourage Delta Air Lines to add the extra seat per row, making the high-density 777 layout the U.S. airline standard, which will likely boost revenue per flight. Alexander MacLennan owns shares of Air Canada, American Airlines Group and Delta Air Lines, and has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
If United goes ahead with its 10-seat-abreast configuration, it will join such other carriers as American Airlines (two of three seating layouts), Air Canada (one of three layouts), Air France-KLM (all layouts), Japan Airlines (two of eight layouts), and Alitalia (all layouts). With nine seats across currently and a seat width of 18 inches, adding a 10th seat is likely to shrink the seat width on United's Boeing 777-200 to the range of similar 10-abreast aircraft. In the short term, fliers and investors should look to see whether United does configure its Boeing 777 with 10 seats across: This move could also encourage Delta Air Lines to add the extra seat per row, making the high-density 777 layout the U.S. airline standard, which will likely boost revenue per flight.
|
Besides reducing seat width, airlines have been shrinking seats in another way. Shrinking the seats of economy passengers could have another benefit for airlines as well. What to watch for Several airlines already operate the Boeing 777 with 10 seats across, and many others have been installing slimmer seats on their planes.
|
8441.0
|
2015-02-13 00:00:00 UTC
|
Nasdaq 100 Movers: KRFT, VIP
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-krft-vip-2015-02-13
|
nan
|
nan
|
In early trading on Friday, shares of VimpelCom ( VIP ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.3%. Year to date, VimpelCom registers a 21.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is Kraft Foods Group ( KRFT ), trading down 3.3%. Kraft Foods Group is showing a gain of 2.1% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 2.0%, and Baidu ( BIDU ), trading up 4.0% on the day.
VIDEO: Nasdaq 100 Movers: KRFT, VIP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Two other components making moves today are American Airlines Group ( AAL ), trading down 2.0%, and Baidu ( BIDU ), trading up 4.0% on the day. And the worst performing Nasdaq 100 component thus far on the day is Kraft Foods Group ( KRFT ), trading down 3.3%. Kraft Foods Group is showing a gain of 2.1% looking at the year to date performance.
|
Two other components making moves today are American Airlines Group ( AAL ), trading down 2.0%, and Baidu ( BIDU ), trading up 4.0% on the day. And the worst performing Nasdaq 100 component thus far on the day is Kraft Foods Group ( KRFT ), trading down 3.3%. VIDEO: Nasdaq 100 Movers: KRFT, VIP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Two other components making moves today are American Airlines Group ( AAL ), trading down 2.0%, and Baidu ( BIDU ), trading up 4.0% on the day. In early trading on Friday, shares of VimpelCom ( VIP ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.3%. And the worst performing Nasdaq 100 component thus far on the day is Kraft Foods Group ( KRFT ), trading down 3.3%.
|
Two other components making moves today are American Airlines Group ( AAL ), trading down 2.0%, and Baidu ( BIDU ), trading up 4.0% on the day. And the worst performing Nasdaq 100 component thus far on the day is Kraft Foods Group ( KRFT ), trading down 3.3%. Kraft Foods Group is showing a gain of 2.1% looking at the year to date performance.
|
8442.0
|
2015-02-09 00:00:00 UTC
|
Nasdaq 100 Movers: AAL, QCOM
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-aal-qcom-2015-02-09
|
nan
|
nan
|
In early trading on Monday, shares of Qualcomm ( QCOM ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.6%. Year to date, Qualcomm has lost about 7.5% of its value.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.9%. American Airlines Group is lower by about 13.7% looking at the year to date performance.
Two other components making moves today are NXP Semiconductors ( NXPI ), trading down 2.4%, and Staples ( SPLS ), trading up 1.5% on the day.
VIDEO: Nasdaq 100 Movers: AAL, QCOM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.9%. VIDEO: Nasdaq 100 Movers: AAL, QCOM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 13.7% looking at the year to date performance.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.9%. VIDEO: Nasdaq 100 Movers: AAL, QCOM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.9%. VIDEO: Nasdaq 100 Movers: AAL, QCOM 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 Monday, shares of Qualcomm ( QCOM ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.6%.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.9%. VIDEO: Nasdaq 100 Movers: AAL, QCOM 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 Monday, shares of Qualcomm ( QCOM ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.6%.
|
8443.0
|
2015-02-08 00:00:00 UTC
|
3 Stocks Surging on Cheap Oil
|
AAL
|
https://www.nasdaq.com/articles/3-stocks-surging-cheap-oil-2015-02-08
|
nan
|
nan
|
The price of crude oil has been cut in half over the past few months. While that's bad news for oil companies and OPEC, it's great news for oil consumers. Heavy users of oil-based products in particular should thrive under a low-oil-price environment.
Given that backdrop, we asked our analysts for their top stock picks that will benefit should cheap oil stay with us for a while longer. Here's what they had to say.
Daniel Miller : My pick comes from an obvious industry, but from a unique angle. The cost of fuel for airlines is roughly 30%; it's the most crucial cost for them to control. So it makes sense that airline executives are collectively cheering with fuel costs spiraling downward -- and the airlines will take billions more cash to their bottom line because of it.
Some investors would jump on the gravy train and invest in the suddenly more profitable airlines, but I think a safer play exists. Let's take a step back and consider Boeing , which manufacturers a plethora of fuel-efficient commercial aircraft.
Many people believe cheap prices will be a hindrance to Boeing as airliners that once ordered fuel-efficient airplanes to save on fuel cost can instead continue to use less efficient airplanes. While that logic has some merit, I believe the opposite.
Ordering a 787 Dreamliner isn't similar to ordering a Grande Mocha from Starbucks , where you simply wheel around and get your product minutes later. An aircraft from Boeing is an order that will be delivered anywhere from seven to nine years from now. What will the price of fuel be then? Nobody knows, and airlines will continue to order fuel-efficient airplanes because of that uncertainty.
Here's the kicker, though. Not only will airlines continue to order Boeing's newest, flashiest, and most fuel-efficient flying-aluminum cans, they will also have a more lucrative cash pile -- due to saving money with cheaper fuel this year -- to spend while purchasing these airplanes. It could even convince airlines that were on the fence about investing in a younger fleet to complete the decision, which will inevitably boost Boeing's order count.
Furthermore, this is far from a risky pick based solely on cheap oil. With Boeing, you're getting a company with a strict barrier of entry, and one that practically operates in a commercial aircraft duopoly, with rival Airbus , across the globe. You're getting a company that boasts a $502 billion backlog of orders, which is enough to keep Boeing plants churning out airplanes for more than five years.
And perhaps best of all, Boeing has proven it can make the cash rain on shareholders. CEO Jim McNerney increased the company's share repurchase program authorization to $12 billion. Boeing also increased its dividend recently by 25% to $0.91 per share -- which means the dividend has increased 88% over the past two years and 192% over the past decade.
In addition to all those shareholder-friendly factors, the presence of cheap oil should ensure that Boeing's backlog, as well as its share price, should continue flying high.
Matt DiLallo : I'm one of those investors that Daniel mentioned earlier, as I don't have a problem coming aboard the now-more-profitable airline industry. That's because there's a pretty noticeable correlation between airline stocks and the price of oil, as we see on the following chart.
Brent Crude Oil Spot Price data by YCharts .
When oil prices rise rapidly, as happened in 2011, for example, there's downward pressure on airline stocks. On the other hand, when oil prices plunge, it can send airline stocks flying higher, as we saw over the last year. This is because, as Daniel mentioned, fuel is a big cost for airlines.
Of the group, one airline in particular stands to really benefit from sustained lower oil prices: American Airlines Group . Having recently emerged from bankruptcy after acquiring US Airways, the airline's stock appears to be poised to continue its ascent if oil prices remain weak.
AAL data by YCharts .
The main reason it stands to benefit above its peers is that American Airlines doesn't hedge any of its fuel costs, so the company will directly benefit from low oil prices this year. In fact, it sees upward of $5 billion in fuel-cost savings if oil remains around its current level -- more than double the company's entire operating income over the past year.
While some would argue that customers instead of shareholders should see some of this savings, that's not likely going to be the case. Airlines have been burned in the past by getting into price wars with one another, and to solve that problem the industry consolidated, which took out a lot of excess capacity . So, at least in the near term, most of the fuel-cost savings should fall to the bottom line and provide the fuel airline stocks need to keep flying higher.
Add it up and American Airlines Group is the best airline to fly some profits into your portfolio when oil prices are low.
Travis Hoium : One of the biggest beneficiaries of low oil prices is the consumer. The EIA predicts that the average consumer will save $550 on gasoline in 2015 from a year earlier. Many consumers are using that savings to buy bigger, less fuel-efficient vehicles, and that's Ford 's bread and butter.
2014 sales weren't outstanding by any stretch, falling slightly to 2.48 million units in the U.S. But the start of 2015 is showing incredible growth in truck and SUV sales, fueled by gasoline falling below $2 per gallon late last year. In January, Ford said its overall sales increased 15% and retail SUV sales jumped 10%, while retail truck sales were up 23%. These are not only some of Ford's more expensive vehicles, they're also the highest-margin, so profits should be up significantly if these sales trends continue.
As sales have increased, Ford has invested in higher production, including hiring more workers. This week the company said it was hiring 1,550 workers in Missouri and Michigan to help build the new aluminum-bodied F-150. They're anticipating strong demand for the new truck, and if gasoline prices continue to hover near $2 per gallon, there will be more people trading up to trucks and SUVs.
No one knows if or when oil and gasoline prices will rise, but as long as they stay near their current levels, Ford will benefit due to higher sales of larger vehicles. In 2015, that could be a big driver of the stock.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article 3 Stocks Surging on Cheap Oil originally appeared on Fool.com.
Daniel Miller owns shares of Ford. Matt DiLallo owns shares of Starbucks and has the following options: long January 2017 $35 calls on American Airlines Group, long January 2016 $10 calls on Ford, and short May 2015 $15 puts on Ford. Travis Hoium owns shares of Ford. The Motley Fool recommends and owns shares of Ford and Starbucks. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
AAL data by YCharts . Not only will airlines continue to order Boeing's newest, flashiest, and most fuel-efficient flying-aluminum cans, they will also have a more lucrative cash pile -- due to saving money with cheaper fuel this year -- to spend while purchasing these airplanes. Having recently emerged from bankruptcy after acquiring US Airways, the airline's stock appears to be poised to continue its ascent if oil prices remain weak.
|
AAL data by YCharts . In January, Ford said its overall sales increased 15% and retail SUV sales jumped 10%, while retail truck sales were up 23%. No one knows if or when oil and gasoline prices will rise, but as long as they stay near their current levels, Ford will benefit due to higher sales of larger vehicles.
|
AAL data by YCharts . Many people believe cheap prices will be a hindrance to Boeing as airliners that once ordered fuel-efficient airplanes to save on fuel cost can instead continue to use less efficient airplanes. On the other hand, when oil prices plunge, it can send airline stocks flying higher, as we saw over the last year.
|
AAL data by YCharts . Many people believe cheap prices will be a hindrance to Boeing as airliners that once ordered fuel-efficient airplanes to save on fuel cost can instead continue to use less efficient airplanes. What will the price of fuel be then?
|
8444.0
|
2015-02-07 00:00:00 UTC
|
Why Investors Shouldn't Be Alarmed by the American Airlines Pilot Raises
|
AAL
|
https://www.nasdaq.com/articles/why-investors-shouldnt-be-alarmed-american-airlines-pilot-raises-2015-02-07
|
nan
|
nan
|
There is a tendency among many investors to fear wage increases as negatives to the bottom line, and the recent contract approved at American Airlines Group has grabbed a lot of attention.
While the wage increase percentage being reported looks high, it's necessary to dig deeper to understand what it really means for the airline.
A big raise... or is it?
The recently approved contract by American Airlines Group's pilots contains something many of us would like to see at our own jobs: a 23% raise followed by 3% raises each year afterward. A quick look at this makes it seem like the pilots are making out like bandits, but a complete picture requires more context.
To understand the position of the pilots, it's necessary to take a brief look back to a time before the American Airlines bankruptcy. Following the events of 9/11, the airline industry was in a tough position. United Airlines, now part of United Continental Holdings , and US Airways both declared bankruptcy in 2002, and Delta Air Lines declared bankruptcy in 2005.
American Airlines managed to hang on through this rough period and got a major boost from its organized labor, including pilots, all of whom took a pay and benefit cut of around 35%. But as labor was giving up compensation to keep American flying, high-level management had quietly carved out a special retirement plan that would be separate from labor's and better protected in the event of bankruptcy. On top of that, high-level management took smaller pay cuts and approved millions in retention bonuses for themselves even as the airline was asking for labor to accept less.
Needless to say, this soured relations between labor and management, and after tensions rose as labor threatened to cancel its agreement to the pay cut, American's then-CEO was shown the door with a mere $12 million parting gift.
Disputes continued between management and labor for several years, and the inability to reach a consensus on labor terms has been seen as a major contributing factor to American's 2011 bankruptcy filing.
Contract comparison
One of the biggest questions investors are asking is how American Airlines' new pilot contract stacks up against those of its rivals. Not surprisingly, management and labor each have their own perspectives on this issue.
According to Bloomberg , management highlights that the new contract has industry-leading base pay, claiming it to be 7% higher than that of Delta Air Lines. Labor counters by saying that total compensation is lower, since Delta's contract contains profit-sharing, a potentially lucrative source of income, while the American Airlines contract does not.
However, what is clear from both management's and labor's comments is that the new contract still allows American to compete using a similar cost structure as rivals.
Upside for American Airlines
With the record profits for the airline industry getting boosted even more by the fall in oil prices, major North American airlines are in a highly profitable position. While Delta and United will both see a boost to earnings overall, some of those extra profits will have to be paid to employees per the profit-sharing agreements in place. Without a profit-sharing agreement in place, American Airlines Group will get to keep even more of its profits, resulting in higher earnings for shareholders.
The new pilot contract also accomplishes another step in the American Airlines-US Airways merger. By creating a single contract for all of its pilots, the airline is now one step closer to fully integrating its workforce and being able to achieve the cost savings promised when the merger was announced.
Risks for American Airlines
In many ways, American is the risk-taker among major airlines. It carries a higher debt-to-equity ratio than Delta or United, it no longer hedges fuel, and it's ending profit-sharing in its latest contracts.
During good times, profit-sharing agreements can hurt the immediate bottom line since they require some of these profits to be paid to workers. But during bad times, profit-sharing agreements can help balance downturns since there are less, if any, profits to pay out -- and base pay is generally lower when accompanied by a profit-sharing agreement.
If the good times in the airline industry keep rolling, then American Airlines may be able to use its extra profits to reduce debt and acquire more fuel-efficient aircraft; however, American does remain a higher-risk airline if industry conditions were to rapidly worsen.
A good contract
Is the pilots contract perfect for both sides? No, but that's the nature of labor-management negotiations. All in all, it puts pilot compensation in a range similar to that of other airlines and keeps American's cost structure under control.
Despite the headline-making number of a 23% pay raise, pilots are not looting the company, nor is management getting big labor savings.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Why Investors Shouldn't Be Alarmed by the American Airlines Pilot Raises originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines and has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
There is a tendency among many investors to fear wage increases as negatives to the bottom line, and the recent contract approved at American Airlines Group has grabbed a lot of attention. American Airlines managed to hang on through this rough period and got a major boost from its organized labor, including pilots, all of whom took a pay and benefit cut of around 35%. By creating a single contract for all of its pilots, the airline is now one step closer to fully integrating its workforce and being able to achieve the cost savings promised when the merger was announced.
|
The recently approved contract by American Airlines Group's pilots contains something many of us would like to see at our own jobs: a 23% raise followed by 3% raises each year afterward. United Airlines, now part of United Continental Holdings , and US Airways both declared bankruptcy in 2002, and Delta Air Lines declared bankruptcy in 2005. Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines and has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.The Motley Fool has no position in any of the stocks mentioned.
|
Upside for American Airlines With the record profits for the airline industry getting boosted even more by the fall in oil prices, major North American airlines are in a highly profitable position. If the good times in the airline industry keep rolling, then American Airlines may be able to use its extra profits to reduce debt and acquire more fuel-efficient aircraft; however, American does remain a higher-risk airline if industry conditions were to rapidly worsen. Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines and has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.The Motley Fool has no position in any of the stocks mentioned.
|
Upside for American Airlines With the record profits for the airline industry getting boosted even more by the fall in oil prices, major North American airlines are in a highly profitable position. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
|
8445.0
|
2015-02-06 00:00:00 UTC
|
Will Google Now Help Android Wear Devices Tackle Apple Watch?
|
AAL
|
https://www.nasdaq.com/articles/will-google-now-help-android-wear-devices-tackle-apple-watch-2015-02-06
|
nan
|
nan
|
Google recently updated Google Now, its app for personalized "cards" based on prior activity and searches, with support for third party apps.
This means that in addition to Google-based reminder cards, users will now receive notification cards from 40 apps, including Pandora , Duolingo, eBay , Lyft, Zillow , and AirBnB. For example, the Pandora card can add music recommendations to Google Now, while the Duolingo card can remind users to take their daily Spanish lesson.
Google Now. Source: Google.
Google Now integration lets app developers expand their traditional push notifications into full cards. In return, Google tethers more third party apps to its ecosystem -- an area where Facebook is becoming a threat with its single sign-ons. But to realize the true potential of Google Now's app integration, we should focus on Android Wear, the company's slimmed down version of Android for smartwatches.
Why Google Now matters to Android Wear
On smartphones and tablets, Google Now appears as a single page of interest and location-based cards. But on Android Wear watches, users swipe through the cards one at a time. Google's own Android Wear cards feature stocks, weather information, sports scores, traffic updates, flight information, boarding passes, hotel and restaurant reservations, nearby public transit information, and other alerts.
Android Wear. Source: Google.
Since Google Now cards offer developers more screen estate than regular push notifications, they might make smartwatch notifications more useful and interactive than smartphone ones simply mirrored to the wrist.
App developers could also eventually take advantage of location tracking to customize cards. For example, you might be able to use the Lyft card on your smartwatch to catch a ride without pulling out your phone. Pandora's card could be used to directly play recommended music, and retailers could put use Google Now cards as loyalty cards, which could be paired with NFC-enabled Android Wear watches for mobile payments.
Should Apple and Samsung be worried?
To port existing apps to Samsung 's Tizen devices or Apple Watch , developers must launch brand new apps. By comparison, Google is merely asking developers to bolt on an additional card notification to their existing app -- which would be much easier.
Since it's a simpler approach, Android Wear could pull ahead of Samsung 's Tizen devices and Apple Watch in terms of available apps. Moreover, neither Samsung nor Apple has a unified dashboard of cards which matches Google Now's flexibility. Google Now is available on iOS, but I doubt that Apple will let Google flood Apple Watch with full-screen cards.
Last August, Samsung claimed that it had over 1,000 Tizen apps. That eye-popping figure raised eyebrows, but Samsung actually only recommended 22 of them for its Gear smartwatches. But with 40 well-known partners, Google Now could put 40 useful "app cards" on Android Wear devices soon.
Apple Watch could be tougher to beat than Tizen, since companies like Facebook , Twitter , Pinterest, BMW , Honeywell , and American Airlines will launch native apps for the eagerly anticipated device. These native apps look like they will offer more functionality than Google Now cards.
Apple Watch. Source: Apple.
Google gets OEMs to take the risks
Google's smartwatch strategy resembles the one that it uses with smartphones and tablets -- it leverages its massive search and app ecosystem to convince OEMs to manufacture Android hardware. This way, Google avoids the risks of manufacturing hardware (as it found out the hard way with Motorola ) while tethering more users to its ecosystem.
Yet this strategy has two big weaknesses. First, it fragments the market among smaller companies, giving users the impression that Android devices are jacks of all trades but masters of none. Second, market leaders -- like Samsung -- clearly spot Google's intentions and start looking for ways to declare independence.
The verdict
By combining Google Now with Android Wear, Google is hoping that Android developers will send cards onto smartwatches, giving consumers the impression that Android Wear has a richer ecosystem of apps.
However, that combination doesn't really address the three main complaints about current generation smartwatches -- low battery life, a lack of aesthetic appeal, and unreliable biometric tracking features. Moreover, Google Now cards probably won't ever become full replacements for native smartwatch apps.
Wall Street hacks Apple's gadgets! (Investors, prepare to profit.)
Apple forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering Apple's brand-new gadgets. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, just click here !
The article Will Google Now Help Android Wear Devices Tackle Apple Watch? originally appeared on Fool.com.
Leo Sun owns shares of Facebook. The Motley Fool recommends eBay, Facebook, Google (A shares), Google (C shares), Pandora Media, Twitter, and Zillow. The Motley Fool owns shares of eBay, Facebook, Google (A shares), Google (C shares), Pandora Media, Twitter, and Zillow. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Since it's a simpler approach, Android Wear could pull ahead of Samsung 's Tizen devices and Apple Watch in terms of available apps. Apple Watch could be tougher to beat than Tizen, since companies like Facebook , Twitter , Pinterest, BMW , Honeywell , and American Airlines will launch native apps for the eagerly anticipated device. However, that combination doesn't really address the three main complaints about current generation smartwatches -- low battery life, a lack of aesthetic appeal, and unreliable biometric tracking features.
|
This means that in addition to Google-based reminder cards, users will now receive notification cards from 40 apps, including Pandora , Duolingo, eBay , Lyft, Zillow , and AirBnB. The Motley Fool recommends eBay, Facebook, Google (A shares), Google (C shares), Pandora Media, Twitter, and Zillow. The Motley Fool owns shares of eBay, Facebook, Google (A shares), Google (C shares), Pandora Media, Twitter, and Zillow.
|
Pandora's card could be used to directly play recommended music, and retailers could put use Google Now cards as loyalty cards, which could be paired with NFC-enabled Android Wear watches for mobile payments. Google Now is available on iOS, but I doubt that Apple will let Google flood Apple Watch with full-screen cards. The verdict By combining Google Now with Android Wear, Google is hoping that Android developers will send cards onto smartwatches, giving consumers the impression that Android Wear has a richer ecosystem of apps.
|
Google Now. To port existing apps to Samsung 's Tizen devices or Apple Watch , developers must launch brand new apps. The Motley Fool recommends eBay, Facebook, Google (A shares), Google (C shares), Pandora Media, Twitter, and Zillow.
|
8446.0
|
2015-02-05 00:00:00 UTC
|
Notable ETF Inflow Detected - VXF, AAL, ILMN, UAL
|
AAL
|
https://www.nasdaq.com/articles/notable-etf-inflow-detected-vxf-aal-ilmn-ual-2015-02-05
|
nan
|
nan
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Extended Market ETF (Symbol: VXF) where we have detected an approximate $141.3 million dollar inflow -- that's a 3.9% increase week over week in outstanding units (from 40,879,725 to 42,484,824). Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is off about 1%, Illumina Inc (Symbol: ILMN) is up about 1.2%, and United Continental Holdings Inc (Symbol: UAL) is lower by about 1.9%. For a complete list of holdings, visit the VXF Holdings page » The chart below shows the one year price performance of VXF, versus its 200 day moving average:
Looking at the chart above, VXF's low point in its 52 week range is $77.51 per share, with $89.05 as the 52 week high point - that compares with a last trade of $88.79. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is off about 1%, Illumina Inc (Symbol: ILMN) is up about 1.2%, and United Continental Holdings Inc (Symbol: UAL) is lower by about 1.9%. For a complete list of holdings, visit the VXF Holdings page » The chart below shows the one year price performance of VXF, versus its 200 day moving average: Looking at the chart above, VXF's low point in its 52 week range is $77.51 per share, with $89.05 as the 52 week high point - that compares with a last trade of $88.79. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
|
Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is off about 1%, Illumina Inc (Symbol: ILMN) is up about 1.2%, and United Continental Holdings Inc (Symbol: UAL) is lower by about 1.9%. For a complete list of holdings, visit the VXF Holdings page » The chart below shows the one year price performance of VXF, versus its 200 day moving average: Looking at the chart above, VXF's low point in its 52 week range is $77.51 per share, with $89.05 as the 52 week high point - that compares with a last trade of $88.79. Click here to find out which 9 other ETFs had notable inflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is off about 1%, Illumina Inc (Symbol: ILMN) is up about 1.2%, and United Continental Holdings Inc (Symbol: UAL) is lower by about 1.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Extended Market ETF (Symbol: VXF) where we have detected an approximate $141.3 million dollar inflow -- that's a 3.9% increase week over week in outstanding units (from 40,879,725 to 42,484,824). For a complete list of holdings, visit the VXF Holdings page » The chart below shows the one year price performance of VXF, versus its 200 day moving average: Looking at the chart above, VXF's low point in its 52 week range is $77.51 per share, with $89.05 as the 52 week high point - that compares with a last trade of $88.79.
|
Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is off about 1%, Illumina Inc (Symbol: ILMN) is up about 1.2%, and United Continental Holdings Inc (Symbol: UAL) is lower by about 1.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Extended Market ETF (Symbol: VXF) where we have detected an approximate $141.3 million dollar inflow -- that's a 3.9% increase week over week in outstanding units (from 40,879,725 to 42,484,824). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
|
8447.0
|
2015-02-04 00:00:00 UTC
|
Nasdaq 100 Movers: GILD, CTSH
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-gild-ctsh-2015-02-04
|
nan
|
nan
|
In early trading on Wednesday, shares of Cognizant Technology Solutions ( CTSH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.5%. Year to date, Cognizant Technology Solutions registers a 9.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is Gilead Sciences ( GILD ), trading down 9.6%. Gilead Sciences is showing a gain of 2.8% looking at the year to date performance.
Two other components making moves today are C.H. Robinson Worldwide ( CHRW ), trading down 8.9%, and American Airlines Group ( AAL ), trading up 3.1% on the day.
VIDEO: Nasdaq 100 Movers: GILD, CTSH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Robinson Worldwide ( CHRW ), trading down 8.9%, and American Airlines Group ( AAL ), trading up 3.1% on the day. Year to date, Cognizant Technology Solutions registers a 9.3% gain. And the worst performing Nasdaq 100 component thus far on the day is Gilead Sciences ( GILD ), trading down 9.6%.
|
Robinson Worldwide ( CHRW ), trading down 8.9%, and American Airlines Group ( AAL ), trading up 3.1% on the day. In early trading on Wednesday, shares of Cognizant Technology Solutions ( CTSH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.5%. And the worst performing Nasdaq 100 component thus far on the day is Gilead Sciences ( GILD ), trading down 9.6%.
|
Robinson Worldwide ( CHRW ), trading down 8.9%, and American Airlines Group ( AAL ), trading up 3.1% on the day. In early trading on Wednesday, shares of Cognizant Technology Solutions ( CTSH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.5%. And the worst performing Nasdaq 100 component thus far on the day is Gilead Sciences ( GILD ), trading down 9.6%.
|
Robinson Worldwide ( CHRW ), trading down 8.9%, and American Airlines Group ( AAL ), trading up 3.1% on the day. In early trading on Wednesday, shares of Cognizant Technology Solutions ( CTSH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.5%. And the worst performing Nasdaq 100 component thus far on the day is Gilead Sciences ( GILD ), trading down 9.6%.
|
8448.0
|
2015-02-04 00:00:00 UTC
|
American Airlines Group, Inc. (AAL) Ex-Dividend Date Scheduled for February 05, 2015
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-inc-aal-ex-dividend-date-scheduled-february-05-2015-2015-02-04
|
nan
|
nan
|
American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on February 05, 2015. A cash dividend payment of $0.1 per share is scheduled to be paid on February 23, 2015. Shareholders who purchased AAL stock prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that AAL has paid the same dividend.
The previous trading day's last sale of AAL was $47.5, representing a -15.48% decrease from the 52 week high of $56.20 and a 69.04% increase over the 52 week low of $28.10.
AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). AAL's current earnings per share, an indicator of a company's profitability, is $3.92. Zacks Investment Research reports AAL's forecasted earnings growth in 2015 as 78.03%, compared to an industry average of 14.8%.
For more information on the declaration, record and payment dates, visit the AAL Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAL through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAL as a top-10 holding:
SPDR S&P Transportation ETF ( XTN )
WisdomTree MidCap Earnings Fund ( EZM )
QuantShares U.S. Market Neutral Value Fund ( CHEP ).
The top-performing ETF of this group is XTN with an increase of 6.96% over the last 100 days. It also has the highest percent weighting of AAL at 2.61%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shareholders who purchased AAL stock prior to the ex-dividend date are eligible for the cash dividend payment. AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). Zacks Investment Research reports AAL's forecasted earnings growth in 2015 as 78.03%, compared to an industry average of 14.8%.
|
The following ETF(s) have AAL as a top-10 holding: SPDR S&P Transportation ETF ( XTN ) WisdomTree MidCap Earnings Fund ( EZM ) QuantShares U.S. Market Neutral Value Fund ( CHEP ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on February 05, 2015.
|
Shareholders who purchased AAL stock prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAL Dividend History page. The following ETF(s) have AAL as a top-10 holding: SPDR S&P Transportation ETF ( XTN ) WisdomTree MidCap Earnings Fund ( EZM ) QuantShares U.S. Market Neutral Value Fund ( CHEP ).
|
Shareholders who purchased AAL stock prior to the ex-dividend date are eligible for the cash dividend payment. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on February 05, 2015. This marks the 3rd quarter that AAL has paid the same dividend.
|
8449.0
|
2015-02-03 00:00:00 UTC
|
Nasdaq 100 Movers: AAL, SPLS
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-aal-spls-2015-02-03
|
nan
|
nan
|
In early trading on Tuesday, shares of Staples ( SPLS ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 11.9%. Year to date, Staples registers a 5.8% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. American Airlines Group is lower by about 11.3% looking at the year to date performance.
Two other components making moves today are Regeneron Pharmaceuticals ( REGN ), trading down 2.2%, and VimpelCom ( VIP ), trading up 6.1% on the day.
VIDEO: Nasdaq 100 Movers: AAL, SPLS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. VIDEO: Nasdaq 100 Movers: AAL, SPLS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 11.3% looking at the year to date performance.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. VIDEO: Nasdaq 100 Movers: AAL, SPLS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. VIDEO: Nasdaq 100 Movers: AAL, SPLS 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 Staples ( SPLS ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 11.9%.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. VIDEO: Nasdaq 100 Movers: AAL, SPLS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 11.3% looking at the year to date performance.
|
8450.0
|
2015-02-03 00:00:00 UTC
|
Top-Rated Stock Picks and Most-Read Stories at Nasdaq.com: Jan. 25-31, 2015
|
AAL
|
https://www.nasdaq.com/articles/top-rated-stock-picks-and-most-read-stories-nasdaqcom-jan-25-31-2015-2015-02-03
|
nan
|
nan
|
Welcome to the latest installment of community stock picks and overview of the most-read stories of the week. We're taking a look at stocks chosen by members of the Nasdaq.com community from January 25 - 31.
Bullish Stocks: Here’s What You Said:
Apple (AAPL): Apple Watch and TV will be big innovations.
Starbucks (SBUX): Great customer service, coffee, management, pricing and finance report.
SolarCity (SCTY): Such a positive prospective company.
American Airlines (AAL): Good management, good earnings, great fuel savings with no hedge.
Juno Therapeutics (JUNO): Cutting edge technology in the car-t [chimeric antigen receptor T-cell therapy] sector of biotech.
bluebird bio (BLUE): Gene Therapy is strong in molecular diagnostics, which we see having a huge year.
GoPro (GPRO): Media content is undervalued here, adaptation of GoPro in professional sports. High sales.
Tesla (TSLA): Tesla is an American manufacturing, energy and high tech transportation company. Strong pipeline.
Top Five Most-Read Stories on Nasdaq.com:
1. The 10 Best Stocks to Buy for 2015
2. GOOG Earnings for Q4 Among the Most Remarkable in Company History
3. Week ahead: IPO market gains momentum with 12 deals including Shake Shack and health care
4. Alibaba Stock Price Can Rocket on This One Earnings Figure
5. Apple Pay Is Going to be a Monster For Apple (AAPL)
Comment:
What do you think? Do you like the stock picks, or are you unconvinced? Give us your take in the comments below!
If you want to get in on the fun, just register for an account with Nasdaq.com and start rating stocks today! Be sure to leave a note why you're picking a stock to be bullish or bearish.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines (AAL): Good management, good earnings, great fuel savings with no hedge. Starbucks (SBUX): Great customer service, coffee, management, pricing and finance report. bluebird bio (BLUE): Gene Therapy is strong in molecular diagnostics, which we see having a huge year.
|
American Airlines (AAL): Good management, good earnings, great fuel savings with no hedge. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines (AAL): Good management, good earnings, great fuel savings with no hedge. Welcome to the latest installment of community stock picks and overview of the most-read stories of the week. Bullish Stocks: Here’s What You Said: Apple (AAPL): Apple Watch and TV will be big innovations.
|
American Airlines (AAL): Good management, good earnings, great fuel savings with no hedge. Welcome to the latest installment of community stock picks and overview of the most-read stories of the week. Starbucks (SBUX): Great customer service, coffee, management, pricing and finance report.
|
8451.0
|
2015-02-02 00:00:00 UTC
|
Don't Expect Low Oil Prices to Mean Cheap Airfares
|
AAL
|
https://www.nasdaq.com/articles/dont-expect-low-oil-prices-mean-cheap-airfares-2015-02-02
|
nan
|
nan
|
Everybody knows fuel is one of airlines' largest costs, and oil prices have halved since autumn. How has this affected the price of airline tickets? They've barely budged. And that's unlikely to change.
The quick response to stagnant airfares likely has to do with fuel hedging. Most airlines hedge the cost of jet fuel to some degree. When fuel prices rise, they're protected, but when fuel prices fall, the airlines are stuck paying the higher, hedged price. Hedges often go out months or years, and some airlines are still paying those higher fuel prices.
But not all jet fuel is hedged, and even once the hedges expire, airfares are unlikely to drop. Three powerful, longer-term forces are at work.
No. 1: A healthy U.S. economy
In case you snoozed through Economics 101, two forces can lower a commodity price: Demand can go down, or supply can go up.
Falling demand typically means deteriorating economic conditions. Businesses are producing less and require less oil to do so. Companies with high fixed costs -- such as airlines, which incur the same cost to fly an empty plane as a packed one -- often lower prices to attract more customers.
That's not what's happening today. The current oil price slide is driven by oversupply. More oil is available for sale than there are customers to buy it, largely driven by the ramp-up in U.S. production in recent years.
Source: U.S. Crude Oil Production data by YCharts .
The U.S. economy is as healthy as it's been since the financial crisis, and demand for airline seats remains high. Airlines' load factor -- a measure of how full planes are -- is at an all-time high. With already-packed planes, airlines have no incentive to lower prices.
No. 2: Airline consolidation
Whether for cell service, cereal boxes, or airline seats, competition benefits consumers. A wave of mergers in airlines has consolidated the industry. A quick recap:
2008: Delta acquires Northwest Airlines.
2010: United Airlines and Continental Airlines merge to form United Continental .
2011: Southwest acquires AirTrain.
2013: US Airways and AMR Corp (parent of American Airlines) merge to form American Airlines Group
These four megaairlines command about 75% of all revenue passenger miles. Air travel remains a commodity, with few people willing to pay more to fly on a "brand-name" airline. Fewer competitors, though, means less competition, and that means less pressure to undercut the next airline's fares.
No. 3: Strong airline financials
The tailwinds of domestic economic growth and lower competition have translated into healthy financial lives for the major airlines. Returns are high, margins are increasing, and debt is being paid down.
If financials were weak -- low cash generation, high debt payments -- airlines might be more pinched to fill every last seat, even if it takes cutting fares to get there. The growing profits are more likely to be reinvested in terminals and new aircraft or returned to shareholders through dividends and buybacks.
What it means for that Costa Rica trip
Travelers have a right to be bummed about static ticket prices. But passengers are also employees and investors. While sipping coffee at 30,000 feet, they can take solace in the fact that the forces keeping airfares dear are also keeping their employment secure and their stocks healthy.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Don't Expect Low Oil Prices to Mean Cheap Airfares originally appeared on Fool.com.
Alex Pape, CFA , has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
1: A healthy U.S. economy In case you snoozed through Economics 101, two forces can lower a commodity price: Demand can go down, or supply can go up. If financials were weak -- low cash generation, high debt payments -- airlines might be more pinched to fill every last seat, even if it takes cutting fares to get there. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
When fuel prices rise, they're protected, but when fuel prices fall, the airlines are stuck paying the higher, hedged price. 2010: United Airlines and Continental Airlines merge to form United Continental . 2013: US Airways and AMR Corp (parent of American Airlines) merge to form American Airlines Group These four megaairlines command about 75% of all revenue passenger miles.
|
When fuel prices rise, they're protected, but when fuel prices fall, the airlines are stuck paying the higher, hedged price. Hedges often go out months or years, and some airlines are still paying those higher fuel prices. 3: Strong airline financials The tailwinds of domestic economic growth and lower competition have translated into healthy financial lives for the major airlines.
|
When fuel prices rise, they're protected, but when fuel prices fall, the airlines are stuck paying the higher, hedged price. 1: A healthy U.S. economy In case you snoozed through Economics 101, two forces can lower a commodity price: Demand can go down, or supply can go up. 2: Airline consolidation Whether for cell service, cereal boxes, or airline seats, competition benefits consumers.
|
8452.0
|
2015-02-02 00:00:00 UTC
|
Southwest Airlines Co.: Expansion in Dallas Continues
|
AAL
|
https://www.nasdaq.com/articles/southwest-airlines-co-expansion-dallas-continues-2015-02-02
|
nan
|
nan
|
For nearly a decade, Southwest Airlines Co. counted down the days until the expiration of federal regulations restricting flights at its home base airport: Dallas Love Field. These restrictions -- designed to steer traffic to the larger Dallas-Fort Worth International Airport -- had prevented Southwest from operating long-haul flights in Dallas.
The Wright Amendment finally expired in October. Now that Southwest Airlines is free to fly from Love Field to anywhere in the U.S., it has been eager to expand in Dallas . On Friday, it announced plans to add even more flights at Love Field starting this spring.
Pushing the limits
Prior to the Wright Amendment's expiration, Southwest operated about 120 to 130 daily flights at Love Field to cities in Texas and a handful of neighboring states. Since October, it has added flights to 17 new cities across the country, including major metro areas like New York, Chicago, Washington, D.C., Atlanta, Las Vegas, Los Angeles, and San Francisco.
Southwest Airlines has expanded significantly in Dallas in the past few months.
However, federal regulations still limit Love Field to 20 gates, of which Southwest Airlines controls 16. Southwest's current schedule of 153 peak-day departures is already pushing the limits of what it can support with 16 gates.
On the company'searnings calllast month, Southwest Airlines CEO Gary Kelly remarked that the company would like to keep expanding at Love Field. However, he acknowledged that Southwest would need access to more gates for that to be possible.
A new strategy for extra gates
Of the four Love Field gates that Southwest Airlines does not currently control, two came up for grabs last year as part of American Airlines ' antitrust settlement. Southwest tried to acquire those gates , but lost out to rival low-cost carrier Virgin America .
The other two gates have been used -- lightly -- by United Continental . United flies seven times daily on 50-seat regional jets from Love Field to its hub in Houston. Late last year, United announced plans to expand to 12 daily flights on that route, even though its regional jet flights were not cost-competitive with other carriers' mainline flights.
United Continental is subleasing its two gates at Love Field to Southwest.
This announcement earned United the wrath of some airline analysts. Ultimately, United reconsidered its plan. It has maintained its previous schedule of seven daily flights up until now -- and in a few months it will depart Love Field for good. On Friday, Southwest Airlines announced that it will sublease both of United's Love Field gates beginning in April.
New destinations coming
Southwest Airlines has not yet provided the full details for its latest expansion at Love Field. However, the carrier stated that it plans to use the extra gate space to start nonstop flights to another nine cities, including Memphis, Milwaukee, and Seattle.
Some of the other potential new destinations can be gleaned from plans that Southwest presented last year when it was vying for American Airlines' two gates at Love Field. At that time, Southwest revealed plans to add nonstop flights to Boston, Portland, and San Jose in 2015, but these flights have not been officially announced yet.
Southwest also put forward tentative plans to fly to a dozen other cities if it could get extra gate space at Love Field. These cities -- including Detroit, Indianapolis, Philadelphia, and Raleigh-Durham -- will also get strong consideration for Southwest's additional flights.
Watch out, American Airlines!
American Airlines acknowledged last week that Southwest Airlines' recent buildup in Dallas has hurt unit revenue for its massive hub at Dallas-Fort Worth International Airport. Southwest's plans to continue expanding at Love Field will come as an unwelcome surprise for American Airlines.
Southwest's growth in Dallas is cutting into American Airlines' unit revenue. Photo: American Airlines.
That said, American Airlines will "re-bank" the Dallas-Fort Worth schedule in late March to create more connecting opportunities. This will offset some of the pricing pressure on nonstop flights that face new competition from Southwest Airlines. American Airlines investors can also take comfort in the fact that this will probably be the last round of expansion for Southwest at Love Field.
On the other side of the coin, this arrangement is a win-win for Southwest and United. United will drop flights that are probably marginally profitable, while getting compensated for its valuable Love Field gates. Meanwhile, Southwest will be able to further expand capacity in its home market: an airport where it has a solid competitive advantage.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Southwest Airlines Co.: Expansion in Dallas Continues originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of Virgin America. He wishes every airline had free checked bags like Southwest. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For nearly a decade, Southwest Airlines Co. counted down the days until the expiration of federal regulations restricting flights at its home base airport: Dallas Love Field. Pushing the limits Prior to the Wright Amendment's expiration, Southwest operated about 120 to 130 daily flights at Love Field to cities in Texas and a handful of neighboring states. Since October, it has added flights to 17 new cities across the country, including major metro areas like New York, Chicago, Washington, D.C., Atlanta, Las Vegas, Los Angeles, and San Francisco.
|
For nearly a decade, Southwest Airlines Co. counted down the days until the expiration of federal regulations restricting flights at its home base airport: Dallas Love Field. Pushing the limits Prior to the Wright Amendment's expiration, Southwest operated about 120 to 130 daily flights at Love Field to cities in Texas and a handful of neighboring states. American Airlines acknowledged last week that Southwest Airlines' recent buildup in Dallas has hurt unit revenue for its massive hub at Dallas-Fort Worth International Airport.
|
A new strategy for extra gates Of the four Love Field gates that Southwest Airlines does not currently control, two came up for grabs last year as part of American Airlines ' antitrust settlement. On Friday, Southwest Airlines announced that it will sublease both of United's Love Field gates beginning in April. Some of the other potential new destinations can be gleaned from plans that Southwest presented last year when it was vying for American Airlines' two gates at Love Field.
|
Now that Southwest Airlines is free to fly from Love Field to anywhere in the U.S., it has been eager to expand in Dallas . Late last year, United announced plans to expand to 12 daily flights on that route, even though its regional jet flights were not cost-competitive with other carriers' mainline flights. However, the carrier stated that it plans to use the extra gate space to start nonstop flights to another nine cities, including Memphis, Milwaukee, and Seattle.
|
8453.0
|
2015-02-01 00:00:00 UTC
|
New Airline ETF Available Soon: Should You Buy It?
|
AAL
|
https://www.nasdaq.com/articles/new-airline-etf-available-soon-should-you-buy-it-2015-02-01
|
nan
|
nan
|
Despite the popularity of exchange-traded funds, or ETFs, for a variety of investments, the airline industry has lacked an ETF of its own. But U.S. Global Investors is planning to bring back the airline ETF.
For most investors, the question is whether they are better off buying the airline ETF or buying individual airline shares. Let's take a look at the ETF and what it means for investors.
ETF failures
Although there are no airline ETFs today, the idea has been tried before. Direxion created the Direxion Airline Shares ETF, rolling it out in December 2010 under the ticker symbol FLYX. However, it didn't get very far off the ground: It was shut down in October 2011. The ETF proved unprofitable for Direxion, attracting less than $3 million in assets -- well below the $50 million minimum Bloomberg cites as the level needed for profitability.
The Guggenheim Airline ETF, which rolled out in January 2009 and traded under the ticker symbol FAA, was a bit more successful, holding $21 million in assets when it was shut down. But even as the only game in town for airline ETFs, the fund never reached the levels Guggenheim wanted and was liquidated in 2013.
The new ETF
The latest airline ETF will be the U.S. Global Investors Jets ETF , using the ticker symbol JETS. Taking a similar allocation strategy as the Guggenheim Airline ETF, the Jets ETF will track an index comprised of 25 to 40 airline companies worldwide.
This should include the largest U.S. carriers Delta Air Lines , United Continental Holdings , Southwest Airlines , and American Airlines Group . But as a Global ETF, it will also include some non-U.S.-based airlines.
The expense ratio will also be similar to the Guggenheim ETF, with the Jets ETF charging 0.60% annually, compared to the Guggenheim's 0.65%. While the companyhas filed preliminary paperwork for the ETF with the SEC, it hasn't provided a release date yet .
Can JETS succeed?
The question many investors are asking now is whether this ETF can succeed in an area where others have failed, and which the ETF industry has pretty much abandoned. While the parallels between the Jets ETF and the Guggenheim ETF are notable, the airline industry has undergone a significant rally since the Guggenheim ETF was liquidated.
Most airline shares have more than doubled since the Guggenheim ETF was closed, and Bloomberg noted in July 2014, a time when airline shares traded below today's levels, that had the Guggenheim ETF held through the rally, its assets would probably have surpassed the $50 million level.
Today, the Jets ETF has a few things going for it. First of all, it has no pure airline competition. The closest thing to it right now would be transportation ETFs like the iShares Transportation Average ETF .
But transportation ETFs spread their assets across other areas, including shipping companies and railroads. The airline portion is well in the minority, making transportation ETFs far from an airline industry pure play.
However, with airline ETFs failing in the past, even without competition, this ETF needs to benefit from other factors as well. Here, the Jets ETF is helped by a return of investor confidence to the airline industry seen in rising share prices since the last airline ETF was liquidated.
If this confidence translates into ETF interest, the U.S. Global Investors Jets ETF may be able to grow into the range of profitability for the managers.
Should you buy it?
Ultimately, your decision on whether to go with the ETF or individual stocks boils down to what your airline investment strategy is. If you're bullish on the industry as a whole but don't know where to go, the airline ETF lets you cover almost all bases and benefit from industrywide growth.
However, if only a few airlines interest you, you'd be better off buying the individual stocks and avoiding buying into airline shares you find less favorable.
One of the keys of the Jets ETF is that it provides access to investing in foreign airlines. This can be a good or a bad thing. If you expect the worldwide airline industry to become more profitable, the Jets ETF is right up your alley.
But if you're just looking for exposure to the U.S. airline market, this can be done without the ETF. Investing in the big players is easy. Since Delta Air Lines, United Continental, American Airlines, and Southwest Airlines control around 70% of the U.S. market based on revenue passenger miles, buying a few shares of each can create a set of investments poised to benefit from gains in the U.S. market.
If you also want to add the smaller players, you can grab shares of Alaska Air Group , Spirit Airlines , JetBlue Airways , or Allegiant . Even if you want to expand to cover the Canadian market as well, you only need to add shares of Air Canada and WestJet Airlines .
So, your decision largely comes down to a worldwide versus North American investment strategy. If you are bullish on airlines worldwide, the Jets ETF provides access to a broad array of foreign -- and likely sometimes difficult to get -- securities, including less-liquid shares of European and emerging-markets airlines.
But if you're North American-focused in your investment strategy, you can cover the largest U.S. players with only four stocks, and the vast majority of the North American market with 10 stocks. Choosing this strategy would provide more flexibility in asset allocation while avoiding the Jets ETF expense ratio.
Return of the ETF
Until the U.S. Global Investors Jets ETF begins to trade, the airline industry will be one of the few major industries without an ETF of its own. Although previous airline ETFs have failed, the Jets ETF stands a better chance of success because of a return of airline investor confidence and a lack of airline ETF competition.
A decision on whether to go for this ETF or for individual stocks should be based on how you see the airline industry going forward, and how you would best allocate your assets to take advantage of the situation.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article New Airline ETF Available Soon: Should You Buy It? originally appeared on Fool.com.
Alexander MacLennan owns shares of Air Canada, American Airlines Group and Delta Air Lines, and has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Guggenheim Airline ETF, which rolled out in January 2009 and traded under the ticker symbol FAA, was a bit more successful, holding $21 million in assets when it was shut down. If you also want to add the smaller players, you can grab shares of Alaska Air Group , Spirit Airlines , JetBlue Airways , or Allegiant . That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
This should include the largest U.S. carriers Delta Air Lines , United Continental Holdings , Southwest Airlines , and American Airlines Group . Since Delta Air Lines, United Continental, American Airlines, and Southwest Airlines control around 70% of the U.S. market based on revenue passenger miles, buying a few shares of each can create a set of investments poised to benefit from gains in the U.S. market. Alexander MacLennan owns shares of Air Canada, American Airlines Group and Delta Air Lines, and has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
While the parallels between the Jets ETF and the Guggenheim ETF are notable, the airline industry has undergone a significant rally since the Guggenheim ETF was liquidated. Here, the Jets ETF is helped by a return of investor confidence to the airline industry seen in rising share prices since the last airline ETF was liquidated. Although previous airline ETFs have failed, the Jets ETF stands a better chance of success because of a return of airline investor confidence and a lack of airline ETF competition.
|
Global Investors Jets ETF , using the ticker symbol JETS. Global Investors Jets ETF begins to trade, the airline industry will be one of the few major industries without an ETF of its own. Although previous airline ETFs have failed, the Jets ETF stands a better chance of success because of a return of airline investor confidence and a lack of airline ETF competition.
|
8454.0
|
2015-01-31 00:00:00 UTC
|
How Should Airlines Use Their Potential Windfalls from Fuel Savings?
|
AAL
|
https://www.nasdaq.com/articles/how-should-airlines-use-their-potential-windfalls-fuel-savings-2015-01-31
|
nan
|
nan
|
With jet fuel prices down about 50% since oil prices began to slide, airlines are now seeing a windfall of profits from this major reduction in expense. But with airlines now dealing with this sudden improvement in fortune, investors are wondering what should and what will the companies do with the extra profits?
Share buybacks
Due to the growth of airline industry profits even before the recent slide in oil prices, share buybacks began to take hold at many airlines. Alaska Air Group , Southwest Airlines , and Delta Air Lines were the first major carriers to run stock buyback programs in recent airline history.
But since then, American Airlines Group and United Continental Holdings have climbed on board as well.
For airlines, buybacks have been a particularly attractive option and it's no surprise that they have found supporters at all major U.S. airlines. Shares of these airlines traded at and continue to trade at valuations well below the market average with some carrying single digit price to earnings ratios.
Additionally, buybacks lend themselves to more cyclical industries like airlines. Since buyback programs have defined limits to them, companies can shut down buybacks to preserve capital during tough times without raising the same red flags as if they slashed a dividend.
With airline shares still trading at fairly low valuations, I think directing a modest amount of fuel savings into share buybacks would be a good way to build shareholder value while retaining the flexibility to cut back on capital returns if fuel prices begin to rise again.
Dividends
While dividends can be a great way to reward shareholders, I would expect airlines to approach higher dividends with a note of caution. Unlike share buybacks, investors expect dividends to keep getting paid and a dividend cut can cause the Street to panic. Because of this, dividends require a longer term of capital commitment and offer less flexibility than buybacks. In the case of using savings from cheaper fuel, it would be unwise for an airline to commit to paying out a large portion of these savings as dividends since a rebound in fuel costs would then force a dividend cutback.
This is not to say I'm completely against airline dividends. The initiation of Delta's and Alaska's dividends in 2013 and American Airlines' dividend in 2014 quite likely helped to bring dividend-only investors and funds on board bringing in new buyers for their shares. Southwest Airlines used dividends to remind investors of the greater security of its stock and, although it only paid a penny per quarter dividend until 2013, it was the only major airline dividend in town before that.
At this point, United Continental remains the only major airline without a dividend but the airline may take the fuel savings as a chance to initiate a small dividend. If United Continental follows in the path of other recent airline dividend launches, its annual dividend yield will likely be around 1%.
For current dividend paying airlines, I would expect small dividend increases at most. Since much of these profits are coming from a downturn in a traditionally volatile commodity, I doubt many airlines would want to commit themselves to a longer term payout of these current higher profits.
New aircraft
Many people have wondered whether the savings from lower fuel costs will result in more aircraft orders now that airlines have more money to spare. While the idea makes sense, there's a limit to how many new aircraft airlines want to order at this point. Airlines have already been seeing record profits over the past couple years resulting in a boom of aircraft orders that already has Boeing and Airbus with near record backlogs.
source: United Continental
Some airlines may decide to order sooner than they otherwise would have but there's a limit to how many still working aircraft the airlines will retire early.
Terminal renovations
Aircraft orders tend to get more attention but some of the most important qualities of an airline are what's available on the ground. To compete in this arena, airport terminals are being renovated by some airlines to offer more features and increase airline operational efficiency.
Delta JFK Airport map source: Delta Air Lines
In the past few years, Delta Air Lines has spent about $1.4 billion to renovate two of its terminal at New York JFK International while Southwest Airlines is getting going on a $508 million renovation to its terminal at Los Angeles International.If airlines want to reinvest in their businesses but not through new aircraft alone, more carriers may use some fuel savings to renovate their terminals.
Debt reduction
One of the criticisms of airlines as investments has been their high debt levels which make airline investments above average in risk, keeping away more conservative investors. That being said, fuel savings could be just the key for accelerated debt reduction. Delta Air Lines has become the poster child for this since launching an aggressive debt reduction plan that since 2009 has seen the airline slash its net debt from $17 billion to $7.3 billion.
Debt reduction may not get the same attention as share buybacks and dividends but it too can boost valuations. With the airline industry trading at 12.5 times earnings compared to the S&P 500 at 18.5 times earnings, there is a lot of room for multiple expansion if airlines can reduce their debt and prove they are stable companies around for the long-term rather than speculative indebted companies.
Lower fares
Many passengers have been calling for airlines to lower their fares with fuel prices so much lower. But since airlines are profit-seeking entities like any other corporation, they will charge what the market will bear. Currently, the market seems to be able to bear a lot. Planes are still pretty full without much evidence of industry price cutting and with the airline industry consolidated into fewer players than in the past, it's less likely that fare wars will erupt between airlines.
Barring a change in airline industry strategies, fares look likely to remain near current levels with the airlines collecting the savings.
Using the savings
With future oil prices always remaining an unknown, no one knows how long the airlines will be able to continue benefiting from reduced fuel costs. In the meantime, they have plenty of options available to choose from including share buybacks, dividends, reinvestment in planes or terminals, and debt reduction.
At this point, I would favor a combination of buybacks, terminal upgrades, and debt reduction. All three of these carry long-term shareholder benefits and leave airlines the flexibility to cut back if fuel prices rise or industry conditions worsen.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article How Should Airlines Use Their Potential Windfalls from Fuel Savings? originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines,. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Using the savings With future oil prices always remaining an unknown, no one knows how long the airlines will be able to continue benefiting from reduced fuel costs. All three of these carry long-term shareholder benefits and leave airlines the flexibility to cut back if fuel prices rise or industry conditions worsen. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
Alaska Air Group , Southwest Airlines , and Delta Air Lines were the first major carriers to run stock buyback programs in recent airline history. Delta JFK Airport map source: Delta Air Lines In the past few years, Delta Air Lines has spent about $1.4 billion to renovate two of its terminal at New York JFK International while Southwest Airlines is getting going on a $508 million renovation to its terminal at Los Angeles International.If airlines want to reinvest in their businesses but not through new aircraft alone, more carriers may use some fuel savings to renovate their terminals. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
|
Southwest Airlines used dividends to remind investors of the greater security of its stock and, although it only paid a penny per quarter dividend until 2013, it was the only major airline dividend in town before that. At this point, United Continental remains the only major airline without a dividend but the airline may take the fuel savings as a chance to initiate a small dividend. Delta JFK Airport map source: Delta Air Lines In the past few years, Delta Air Lines has spent about $1.4 billion to renovate two of its terminal at New York JFK International while Southwest Airlines is getting going on a $508 million renovation to its terminal at Los Angeles International.If airlines want to reinvest in their businesses but not through new aircraft alone, more carriers may use some fuel savings to renovate their terminals.
|
At this point, United Continental remains the only major airline without a dividend but the airline may take the fuel savings as a chance to initiate a small dividend. New aircraft Many people have wondered whether the savings from lower fuel costs will result in more aircraft orders now that airlines have more money to spare. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
|
8455.0
|
2015-01-31 00:00:00 UTC
|
American Airlines Group: Is $100 Per Share in the Cards?
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-100-share-cards-2015-01-31
|
nan
|
nan
|
Shares of American Airlines Group rallied more than 110% last year and have already posted modest gains to start off 2015. While it would have been considered a radical idea early last year, a host of factors have analysts raising price targets, with some nearing $100 per share. Is this a realistic outlook? Let's assess the possibility.
Fuel savings winner
With fuel prices down about 50% from before the collapse, a major component of airline costs has plunged. Based on American Airlines Group's 10-K form, fuel comprised 35.3% of total operating expenses for 2013, making this a major area where the airline could see savings.
While other airlines tend to have fuel expenses as a similar percentage of total operating costs, American Airlines Group is in a unique position since it didn't hedge its fuel costs at higher levels.
Compared with Delta Air Lines , which took a $1.2 billion writedown on its fuel hedges in its most recent quarter, and United Continental Holdings , which took an $85 million charge, American Airlines is in a prime position to capture the full savings of cheap fuel.
Surging estimates
Collapsing fuel prices have been a major reason for surging earnings estimates at American Airlines Group. Estimates for 2014 full-year earnings have held fairly stable in the past 90 days. Since most of the cheaper fuel costs are expected to be realized in 2015, though, analyst estimates have been reflecting a better 2015. The following data from Yahoo! Finance shows a surge in estimates in the past 90 days, as fuel prices have severely declined.
Based on these estimates, American Airlines Group trades at only 5.5 times next year's earnings, well below both the industry and market averages.
Of course, a lot of this rise has to do with falling oil prices. If oil prices were to surge higher, the airline would be negatively affected and EPS estimates would probably fall again. However, if oil prices stay near current levels, American Airlines Group is one of the best positioned airlines in the industry.
Higher price targets
As analysts have raised their earnings estimates, they've raised price targets as well. Yahoo! Finance doesn't keep track of previous price targets, but 4-Traders does, and its data shows that the average price target has increased about 25% in the past 90 days to currently sit at $68.90.
While none of the targets currently crack $100 per share, the highest one I found is from Bob McAdoo at Imperial Capital. He cites jet fuel prices as a major factor, along with airline industry fundamentals and merger synergies from the combination of American Airlines and US Airways.
With a $92 price target, McAdoo's position is near the triple-digit mark, but not quite there. In developing his target, he estimates 2015 earnings of $13.05 per share, still above the 2015 average but potentially obtainable under optimal conditions.
How high can shares go?
From a simple price-to-earnings perspective, the path to $100 per share seems pretty easy. Next year's estimates call for $10.10 in earnings per share, and a modest 10 times ratio brings a target of $101 per share.
Furthermore, using McAdoo's EPS estimate with the same 10-times multiple gives a target of $130.50 per share, but there are other factors that may prevent this goal from happening, or at least make it less likely.
Everyone's favorite topics: Taxes and debt|
From previous years of losses, American Airlines Group has net operating losses, or NOLs, amounting to around $10 billion that can be used against earnings, effectively making them free of corporate taxes. But the tax-free party runs out when the NOLs are exhausted, and a solid 2015 of profits would significantly reduce, if not eliminate, NOLs remaining for future years.
Since valuations tend to be based on what the market sees as sustainable earnings, the fact that some of the 2015 earnings will occur because of a temporary tax break is likely to result in the market's assigning a lower multiple to the stock.
While debt isn't always a bad thing, having significantly larger amounts of debt than one's peers can mean that a company is seen as higher risk and thus receives a lower valuation than its less indebted peers. American Airlines Group appears less favorably on this front, with a debt-to-equity ratio of 3.4, compared with United Continental at 2.9 and Delta Air Lines at 1.1. Despite this higher debt-to-equity ratio, American Airlines Group remains a healthy company; however, this factor may make shares of the airline appear riskier than those of its peers and keep American's valuation below the industry average.
Merger integration risk
The merger between American Airlines and US Airways that formed American Airlines Group is generally seen as a positive for the industry, but that doesn't mean everything's smooth sailing. American Airlines Group still needs to finish the task of integrating the operations of two major airlines. Doing so will involve overcoming technical and logistical challenges, as well as reaching new labor agreements with affected workers.
So far, the integration has been going fairly well, but large-scale mergers always present potential risks. As higher levels of risk tend to negatively affect valuations, the integration risk at American Airlines Group could be another factor that keeps shares at a below-average valuation.
Is it a $100 stock?
From a simplistic valuation standpoint, American Airlines Group could easily see a triple-digit share price; however, there are other factors that need to be accounted for. The temporary benefits of NOLs, merger integration risk, and the above-average debt-to-equity ratio at the airline could make it more difficult for this carrier to rise to an average industry valuation.
But time may be on the airline's side here. In 2015, the airline expects to combine its frequent flyer programs, obtain a single operating certificate, and merge its reservations systems, three of the largest steps left in combining the carriers. The higher debt levels can be dealt with through using part of the earnings from fuel savings to pay down outstanding debt. Doing so would have the positive effect of lowering the airline's overall risk and making a higher valuation easier to attain.
In all, I can see American Airlines Group shares as being able to hit the $100 mark, although it may take another couple of years for the airline to earn the necessary valuation. To make it possible, the airline needs to successfully integrate American Airlines and US Airways while directing some of its fuel savings to bringing down its debt levels.
Does this make American Airlines Group The Motley Fool's top stock for 2015?
This is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article American Airlines Group: Is $100 Per Share in the Cards? originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines and has options on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group appears less favorably on this front, with a debt-to-equity ratio of 3.4, compared with United Continental at 2.9 and Delta Air Lines at 1.1. The temporary benefits of NOLs, merger integration risk, and the above-average debt-to-equity ratio at the airline could make it more difficult for this carrier to rise to an average industry valuation. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
Surging estimates Collapsing fuel prices have been a major reason for surging earnings estimates at American Airlines Group. Despite this higher debt-to-equity ratio, American Airlines Group remains a healthy company; however, this factor may make shares of the airline appear riskier than those of its peers and keep American's valuation below the industry average. As higher levels of risk tend to negatively affect valuations, the integration risk at American Airlines Group could be another factor that keeps shares at a below-average valuation.
|
Despite this higher debt-to-equity ratio, American Airlines Group remains a healthy company; however, this factor may make shares of the airline appear riskier than those of its peers and keep American's valuation below the industry average. In all, I can see American Airlines Group shares as being able to hit the $100 mark, although it may take another couple of years for the airline to earn the necessary valuation. Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines and has options on American Airlines Group.
|
However, if oil prices stay near current levels, American Airlines Group is one of the best positioned airlines in the industry. Next year's estimates call for $10.10 in earnings per share, and a modest 10 times ratio brings a target of $101 per share. Does this make American Airlines Group The Motley Fool's top stock for 2015?
|
8456.0
|
2015-01-30 00:00:00 UTC
|
5 Things American Airlines Group, Inc. Management Wants You to Know
|
AAL
|
https://www.nasdaq.com/articles/5-things-american-airlines-group-inc-management-wants-you-know-2015-01-30
|
nan
|
nan
|
American Airlines Group reported record fourth-quarter and full-year earnings on Tuesday. American Airlines shares fell, though, weighed down by the company's forecast that unit revenue will decline again this quarter.
Following the earnings report, American Airlines executives held an hour-long conference call with financial analysts and the media to discuss the results and outlook for 2015. Here are five key points they emphasized.
Big fuel savings coming in 2015
American Airlines is benefiting tremendously from its controversial no-hedging policy. With oil prices having collapsed since September, many airlines are seeing their fuel cost savings limited by hedging losses. That's not a problem for American.
American Airlines' decision to stop hedging fuel is paying off in a big way. Source: American Airlines.
As a result, American Airlines expects to pay an average of $1.73-$1.78 gallon for jet fuel this year. That compares to an average price of $2.91 in 2014. The resulting $5 billion (or more) of fuel cost savings will ensure that American Airlines soars to another year of record earnings in 2015, despite some of the other headwinds it is facing.
Unit revenue under pressure for now
The biggest headwind impacting American Airlines right now is supply demand imbalance in a number of its markets. In October, American's management stated that Southwest Airlines ' expansion in Dallas and Washington, D.C. -- both key hubs for American Airlines -- wouldn't impact unit revenue . Now they realize this forecast was too optimistic.
While American Airlines is seeing strong travel domestic demand, a significant increase in supply almost always drives prices lower. This has particularly affected point-to-point travel in the Dallas-Fort Worth area. American Airlines is also facing currency-related revenue pressure on many international routes, especially to Brazil and Argentina.
These revenue headwinds should ease in the next quarter or two. American Airlines is rebanking its Dallas-Fort Worth hub to bring in connecting traffic that Southwest Airlines isn't targeting. Revenue comparisons on international routes will also get much easier as the year progresses. Thus, American's projected 2%-4% Q1 unit revenue decline should be the worst decline of the year.
Capacity plans are fairly rigid
One of the biggest worries for some airline investors has been that airlines will fritter away their fuel cost savings by expanding so much that an oversupply of capacity will drive down fares. American Airlines management made it clear on Tuesday that it is more inclined to cut capacity for 2015 than increase it.
Moreover, CFO Derek Kerr pointed out that limited training infrastructure is a major barrier to faster growth. American Airlines itself would need to add flight simulators and train new flight instructors to ramp up its growth. Other airlines face similar constraints (as well as a growing pilot shortage) that will keep industry capacity growth at reasonable levels.
Big integration milestones coming
2015 will be the critical year for American Airlines' integration efforts. The company is nearing the end of the process of merging the American Airlines and US Airways operating certificates. That's a major step toward operating as a single airline. Reaching joint collective bargaining agreements with all employee unions will complete that process.
From a customer perspective, the most noticeable change will be that the AAdvantage and Dividend Miles frequent flier programs will be merged in Q2. However, the most important milestone will be the switch to a single reservation system.
United Continental's move to a single reservation system didn't go smoothly.
Moving to a single reservation system will allow American Airlines to better optimize its fares to maximize unit revenue. The switchover will be tricky, though -- in numerous airline mergers, this issue has caused major technology and customer service snafus. United Continental is just starting to recover from a botched reservation system integration that occurred nearly three years ago.
Reducing the share count
American Airlines has invested heavily in new aircraft recently. Because of its rising profitability, it has been able to simultaneously return some cash to investors. Through various means, including a $1 billion share repurchase, the payment of some employee stock compensation in cash, and the retirement of convertible debt, American has reduced its share count by almost 5% since late 2013.
On Tuesday, American Airlines announced a new $2 billion repurchase program. This should allow it to reduce the share count by another 5% by the end of next year. A few years from now, the merger will be complete, and American Airlines will have finished most of its fleet renewal project, reducing its CapEx burden. Then, it should be able to dramatically increase its capital returns for investors.
As long as American Airlines doesn't get tripped by any of the integration hurdles it faces this year, it will be well-positioned for solid profitability and rising cash flow in the next few years. Long-term investors will be able to reap the rewards.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article 5 Things American Airlines Group, Inc. Management Wants You to Know originally appeared on Fool.com.
Adam Levine-Weinberg has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Following the earnings report, American Airlines executives held an hour-long conference call with financial analysts and the media to discuss the results and outlook for 2015. The resulting $5 billion (or more) of fuel cost savings will ensure that American Airlines soars to another year of record earnings in 2015, despite some of the other headwinds it is facing. Unit revenue under pressure for now The biggest headwind impacting American Airlines right now is supply demand imbalance in a number of its markets.
|
Big fuel savings coming in 2015 American Airlines is benefiting tremendously from its controversial no-hedging policy. Unit revenue under pressure for now The biggest headwind impacting American Airlines right now is supply demand imbalance in a number of its markets. In October, American's management stated that Southwest Airlines ' expansion in Dallas and Washington, D.C. -- both key hubs for American Airlines -- wouldn't impact unit revenue .
|
In October, American's management stated that Southwest Airlines ' expansion in Dallas and Washington, D.C. -- both key hubs for American Airlines -- wouldn't impact unit revenue . American Airlines is rebanking its Dallas-Fort Worth hub to bring in connecting traffic that Southwest Airlines isn't targeting. As long as American Airlines doesn't get tripped by any of the integration hurdles it faces this year, it will be well-positioned for solid profitability and rising cash flow in the next few years.
|
American Airlines shares fell, though, weighed down by the company's forecast that unit revenue will decline again this quarter. The resulting $5 billion (or more) of fuel cost savings will ensure that American Airlines soars to another year of record earnings in 2015, despite some of the other headwinds it is facing. In October, American's management stated that Southwest Airlines ' expansion in Dallas and Washington, D.C. -- both key hubs for American Airlines -- wouldn't impact unit revenue .
|
8457.0
|
2015-01-30 00:00:00 UTC
|
Luminex (LMNX) Likely to Miss Earnings Estimates in Q4 - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/luminex-lmnx-likely-to-miss-earnings-estimates-in-q4-analyst-blog-2015-01-30
|
nan
|
nan
|
Luminex Corp ( LMNX ) is set to release its fourth-quarter 2014 financial results on Feb 2. In the last reported quarter, the company had delivered a positive earnings surprise in excess of 100%.
Notably, the company' has surpassed the Zacks Consensus Estimate in all of the last four quarters, with an average beat of nearly 86.1%.
Let's see how things are shaping up prior to this announcement.
Factors to Be Considered This Quarter
Luminex is facing considerable volatility in its consumables revenues, which was down 6% in the last reported quarter.
Owing to transitory inventory management challenges faced by the company's largest partner, Thermo Fisher Scientific, revenues from consumables is expected to follow a downtrend in the upcoming quarter as well.
Although management interacts with its partners closely in order to monitor consumables demand, there still persists significant lumpiness. New product delays were also responsible for sluggish growth in consumables revenues.
Due to the decline in consumable revenues, Luminex's partnership segment or TSP revenues also faces significant challenges.
Moreover, Luminex had downgraded the higher end of its 2014 revenue guidance range while announcing its third quarter results. The company now expects revenues in the range of $225-$228 million (prior outlook: $225 to $240 million). The current Zacks Consensus estimate of $227 million lies within the guided range.
Given the negative signals, we do not feel confident about Luminex's chances to beat on earnings in the fourth quarter of 2014.
Earnings Whispers?
Our proven model does not conclusively show that Luminex is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP : Earnings ESP represent the difference between the Most Accurate estimate and the Zacks Consensus Estimate. This leads to an ESP of -8.33% for Luminex as the Most Accurate estimate stands at 11 cents while the Zacks Consensus estimate is pegged a tad higher at 12 cents.
Zacks Rank : Luminex has a Zacks Rank #3, which increases the predictive power of ESP; but when combined with an ESP of -8.33%, it makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some companies that you may consider instead as our model shows they have the right combination of elements to post an earnings beat this quarter.
Arch Capital Group ( ACGL ) has an earnings ESP of +1.92% and holds a Zacks Rank #1.
American Airlines Group ( AAL ) has an earnings ESP of +3.78% and carries a Zacks Rank #2.
American Campus Communities ( ACC ) has an earnings ESP of +1.47% and carries a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
LUMINEX CORP (LMNX): Free Stock Analysis Report
ARCH CAP GP LTD (ACGL): Free Stock Analysis Report
AMER CAMPUS CTY (ACC): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group ( AAL ) has an earnings ESP of +3.78% and carries a Zacks Rank #2. Click to get this free report LUMINEX CORP (LMNX): Free Stock Analysis Report ARCH CAP GP LTD (ACGL): Free Stock Analysis Report AMER CAMPUS CTY (ACC): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Owing to transitory inventory management challenges faced by the company's largest partner, Thermo Fisher Scientific, revenues from consumables is expected to follow a downtrend in the upcoming quarter as well.
|
American Airlines Group ( AAL ) has an earnings ESP of +3.78% and carries a Zacks Rank #2. Click to get this free report LUMINEX CORP (LMNX): Free Stock Analysis Report ARCH CAP GP LTD (ACGL): Free Stock Analysis Report AMER CAMPUS CTY (ACC): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Click to get this free report LUMINEX CORP (LMNX): Free Stock Analysis Report ARCH CAP GP LTD (ACGL): Free Stock Analysis Report AMER CAMPUS CTY (ACC): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group ( AAL ) has an earnings ESP of +3.78% and carries a Zacks Rank #2. Zacks ESP : Earnings ESP represent the difference between the Most Accurate estimate and the Zacks Consensus Estimate.
|
American Airlines Group ( AAL ) has an earnings ESP of +3.78% and carries a Zacks Rank #2. Click to get this free report LUMINEX CORP (LMNX): Free Stock Analysis Report ARCH CAP GP LTD (ACGL): Free Stock Analysis Report AMER CAMPUS CTY (ACC): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, Luminex had downgraded the higher end of its 2014 revenue guidance range while announcing its third quarter results.
|
8458.0
|
2015-01-27 00:00:00 UTC
|
American Airlines Group (AAL) Tops Q4 Earnings, Revenues - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-aal-tops-q4-earnings-revenues-analyst-blog-2015-01-27
|
nan
|
nan
|
American Airlines Group ( AAL ), which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, performed well in the final quarter of 2014 reporting higher-than-expected earnings and revenues. The company recorded adjusted earnings per share of $1.52, beating the Zacks Consensus Estimate by a penny.
American Airlines Group reported adjusted revenues of $10.2 billion in the fourth quarter of 2014, representing a 2.1% increase over the comparable figure (American Airlines Group [formerly AMR Corporation] on a stand alone basis combined with the results of US Airways Group) in the year-ago period. Quarterly revenues were marginally higher than the Zacks Consensus Estimate of $10.14 billion
Consolidated passenger revenue per available seat miles (PRASM) declined 1% to 13.50 cents in the reported quarter. Consolidated passenger yield climbed 0.9% to 16.84 cents. Load factor (% of seats filled by passengers) declined to 80.1% from the combined figure of 81.7% a year-ago. Weakness in the Atlantic and Latin American areas contributed to the decline in load factor.
American Airlines Group's results in the reported quarter benefited from low fuel costs. This is because fuel costs account for a major chunk of an airline's operating expenses. Total operating costs in the final quarter of 2014 declined 4.1% to $9.3 billion from the year-ago figure (combined). A 17.3 % decrease in consolidated fuel cost in the fourth quarter of 2014 led to the fall in operating expenses.
The company looks to reward shareholders by paying dividends and repurchasing shares. During the final quarter of the year, the company returned $959 million to its shareholders by paying $72 million in quarterly dividends and buying back common stock worth $887 million. The carrier said that it has completed its $1 billion share buyback program (announced in Jul 2014) a year ahead of schedule.
Following the completion, the company announced another share repurchase program worth $2 billion. The newly authorized program is expected to be completed by Dec 31, 2016. The company also declared a dividend of 10 cents per share. The dividend will be paid on Feb 23, 2015, to stockholders as of Feb 9.
For full year 2014, the company recorded adjusted earnings of $5.70 per share on revenues of $42.7 billion. This compares favorably with the Zacks Consensus Estimate for 2014 which hinted at earnings of $5.68 per share on revenues of $42.63 billion.
Upcoming Release
JetBlue Airways Corporation ( JBLU ) will release its fourth quarter earnings numbers on Jan 29, 2015. We expect the carrier to report better-than-expected earnings in the quarter. The company, apart from carrying a Zacks Rank #1 (Strong Buy), also possesses a positive Earnings ESP .
According to our model, a stock needs to have both a positive earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) for us to confidently predict an earnings beat. Moreover, we expect JetBlue's quarterly results to benefit from weak fuel costs, as has been the case for American Airlines Group and most of its peers in the airline space who have already reported fourth-quarter 2014 results.
Zacks Rank
American Airlines Group currently sports a Zacks Rank #1 (Strong Buy). Equally-well ranked stocks in the industry include United Continental Holdings ( UAL ) and Delta Air Lines, Inc. ( DAL ).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AMER AIRLINES (AAL): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group ( AAL ), which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, performed well in the final quarter of 2014 reporting higher-than-expected earnings and revenues. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group's results in the reported quarter benefited from low fuel costs.
|
Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group ( AAL ), which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, performed well in the final quarter of 2014 reporting higher-than-expected earnings and revenues. During the final quarter of the year, the company returned $959 million to its shareholders by paying $72 million in quarterly dividends and buying back common stock worth $887 million.
|
American Airlines Group ( AAL ), which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, performed well in the final quarter of 2014 reporting higher-than-expected earnings and revenues. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group reported adjusted revenues of $10.2 billion in the fourth quarter of 2014, representing a 2.1% increase over the comparable figure (American Airlines Group [formerly AMR Corporation] on a stand alone basis combined with the results of US Airways Group) in the year-ago period.
|
American Airlines Group ( AAL ), which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, performed well in the final quarter of 2014 reporting higher-than-expected earnings and revenues. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group reported adjusted revenues of $10.2 billion in the fourth quarter of 2014, representing a 2.1% increase over the comparable figure (American Airlines Group [formerly AMR Corporation] on a stand alone basis combined with the results of US Airways Group) in the year-ago period.
|
8459.0
|
2015-01-27 00:00:00 UTC
|
American Airlines Earnings: No Hedges, No Problems
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-earnings-no-hedges-no-problems-2015-01-27
|
nan
|
nan
|
On Tuesday, No. 1 U.S. carrier American Airlines reported record earnings for the fourth quarter and all of 2014. Adjusted EPS rose more than 150% in Q4 to $1.52, sliding in just ahead of the average analyst estimate of $1.51. Revenue increased 2.1% to $10.16 billion, falling just short of analyst estimates.
American Airlines is profiting immensely from its decision to stop hedging its fuel costs . This is allowing it to quickly reap the benefits of falling oil prices. As a result, it posted the highest adjusted profit in the industry last quarter -- despite some notable headwinds. If fuel prices stay low, American could deliver industry-leading earnings again in 2015.
Leaning on fuel
American Airlines' Q4 adjusted profit of $1.10 billion eclipsed top rival Delta Air Lines ' adjusted pre-tax profit of $1.02 billion for the same period. American's adjusted pre-tax margin of 10.6% was slightly below that of Delta, though.
US Gulf Coast Kerosene-Type Jet Fuel Spot Price , data by YCharts .
As a result, American Airlines' full-year average jet fuel price is currently on pace to decline to approximately $1.73-$1.78 per gallon in 2015. That would represent savings of more than $1 per gallon compared to its $2.91 per gallon average price in 2014, and total savings of more than $5 billion.
Despite this news, American Airlines shares declined about 2% in pre-market trade on Tuesday morning, following the broader market.
Investors shouldn't worry about any potential dip, though. In fact, it could allow American to buy back stock at bargain prices -- the company announced on Tuesday that it completed its $1 billion share repurchase last quarter and that the board had authorized a new $2 billion buyback. This could drive additional long-term stock price appreciation.
Apple Watch revealed: The real winner is inside
Apple recently revealed the product of its secret-development "dream team" -- Apple Watch. The secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price could have nearly unlimited room to run for early-in-the-know investors. To be one of them, and see where the opportunity for real money is to be made, just click here !
The article American Airlines Earnings: No Hedges, No Problems originally appeared on Fool.com.
Adam Levine-Weinberg has the following options: long January 2016 $80 calls on Apple and short January 2016 $120 calls on Apple. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As a result, American Airlines' full-year average jet fuel price is currently on pace to decline to approximately $1.73-$1.78 per gallon in 2015. Despite this news, American Airlines shares declined about 2% in pre-market trade on Tuesday morning, following the broader market. The secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad.
|
Leaning on fuel American Airlines' Q4 adjusted profit of $1.10 billion eclipsed top rival Delta Air Lines ' adjusted pre-tax profit of $1.02 billion for the same period. As a result, American Airlines' full-year average jet fuel price is currently on pace to decline to approximately $1.73-$1.78 per gallon in 2015. Adam Levine-Weinberg has the following options: long January 2016 $80 calls on Apple and short January 2016 $120 calls on Apple.
|
Leaning on fuel American Airlines' Q4 adjusted profit of $1.10 billion eclipsed top rival Delta Air Lines ' adjusted pre-tax profit of $1.02 billion for the same period. As a result, American Airlines' full-year average jet fuel price is currently on pace to decline to approximately $1.73-$1.78 per gallon in 2015. In fact, it could allow American to buy back stock at bargain prices -- the company announced on Tuesday that it completed its $1 billion share repurchase last quarter and that the board had authorized a new $2 billion buyback.
|
Leaning on fuel American Airlines' Q4 adjusted profit of $1.10 billion eclipsed top rival Delta Air Lines ' adjusted pre-tax profit of $1.02 billion for the same period. As a result, American Airlines' full-year average jet fuel price is currently on pace to decline to approximately $1.73-$1.78 per gallon in 2015. The Motley Fool recommends and owns shares of Apple.
|
8460.0
|
2015-01-27 00:00:00 UTC
|
Daily Dividend Report: AAL, ARG, ENR, NYCB, CR, OSK, RBC, PRGO, AOS, NGL
|
AAL
|
https://www.nasdaq.com/articles/daily-dividend-report-aal-arg-enr-nycb-cr-osk-rbc-prgo-aos-ngl-2015-01-27
|
nan
|
nan
|
American Airlines Group ( AAL ) declared a dividend of $0.10 per share to be paid on February 23, 2015, to shareholders of record as of February 9, 2015.
Airgas ( ARG ) announced that the Board of Directors declared a regular quarterly cash dividend of $0.55 per share, payable on March 31, 2015 to shareholders of record as of March 13, 2015.
Energizer Holdings ( ENR ) has declared a dividend for the second quarter of its fiscal 2015 of $0.50 per share of Common Stock, payable on March 18, 2015 to all shareholders of record as of the close of business on February 19, 2015.
New York Community Bancorp ( NYCB ) declared a $0.25 per share dividend, payable on February 20, 2015 to shareholders of record at the close of business on February 9, 2015. This will be the Company's 83rd consecutive quarterly cash dividend in general, and its 44th consecutive quarterly cash dividend of $0.25 per share.
Crane announced its regular quarterly dividend of $0.33 per share for the first quarter of 2015. The dividend is payable on March 10, 2015 to shareholders of record as of the close of business on February 27, 2015.
Oshkosh Corporation ( OSK ) declared a quarterly cash dividend of $0.17 per share of Common Stock. The dividend will be payable on February 26, 2015 to shareholders of record as of February 12, 2015.
Regal Beloit Corporation (RBC) declared a dividend of $.22 per share. The dividend is payable on April 17, 2015, to shareholders of record at the close of business on April 2, 2015. This represents the 219th consecutive dividend declared by the Company.
Perrigo Company (PRGO) declared a quarterly dividend of $0.125 per share, payable on March 17, 2015 to shareholders of record on February 27, 2015.
A. O. Smith Corporation (AOS) approved a 27 percent increase in the company's quarterly cash dividend to $.19 per share. The dividend increase will affect the company's Common Stock and Class A Common Stock and is payable on Feb. 17 to shareholders of record Feb. 6.
And, NGL Energy Partners LP (NGL) declared a quarterly distribution of $0.6175 per unit ($2.47 on an annualized basis) for the quarter ended December 31, 2014. This distribution represents a 1.44% increase over the prior quarterly distribution of $0.60875 per unit and a 16.24% increase over the distribution paid for the same quarter a year ago. This distribution is payable on February 13, 2015, to unitholders of record entitled to receive the distribution at the close of business on February 6, 2015.
VIDEO: Daily Dividend Report: AAL, ARG, ENR, NYCB, CR, OSK, RBC, PRGO, AOS, NGL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group ( AAL ) declared a dividend of $0.10 per share to be paid on February 23, 2015, to shareholders of record as of February 9, 2015. VIDEO: Daily Dividend Report: AAL, ARG, ENR, NYCB, CR, OSK, RBC, PRGO, AOS, NGL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Energizer Holdings ( ENR ) has declared a dividend for the second quarter of its fiscal 2015 of $0.50 per share of Common Stock, payable on March 18, 2015 to all shareholders of record as of the close of business on February 19, 2015.
|
VIDEO: Daily Dividend Report: AAL, ARG, ENR, NYCB, CR, OSK, RBC, PRGO, AOS, NGL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group ( AAL ) declared a dividend of $0.10 per share to be paid on February 23, 2015, to shareholders of record as of February 9, 2015. Airgas ( ARG ) announced that the Board of Directors declared a regular quarterly cash dividend of $0.55 per share, payable on March 31, 2015 to shareholders of record as of March 13, 2015.
|
American Airlines Group ( AAL ) declared a dividend of $0.10 per share to be paid on February 23, 2015, to shareholders of record as of February 9, 2015. VIDEO: Daily Dividend Report: AAL, ARG, ENR, NYCB, CR, OSK, RBC, PRGO, AOS, NGL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Energizer Holdings ( ENR ) has declared a dividend for the second quarter of its fiscal 2015 of $0.50 per share of Common Stock, payable on March 18, 2015 to all shareholders of record as of the close of business on February 19, 2015.
|
American Airlines Group ( AAL ) declared a dividend of $0.10 per share to be paid on February 23, 2015, to shareholders of record as of February 9, 2015. VIDEO: Daily Dividend Report: AAL, ARG, ENR, NYCB, CR, OSK, RBC, PRGO, AOS, NGL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Energizer Holdings ( ENR ) has declared a dividend for the second quarter of its fiscal 2015 of $0.50 per share of Common Stock, payable on March 18, 2015 to all shareholders of record as of the close of business on February 19, 2015.
|
8461.0
|
2015-01-26 00:00:00 UTC
|
Beyond Southwest Airlines: 3 Great Airline Stocks for Your Portfolio - Stocks in the News
|
AAL
|
https://www.nasdaq.com/articles/beyond-southwest-airlines-3-great-airline-stocks-your-portfolio-stocks-news-2015-01-26
|
nan
|
nan
|
As we get into the heart of earnings season, one industry to highlight in particular is the airline industry. This sector has enjoyed the decline in oil prices over the last few months, there are increased profit margins across the board for the industry, leading to a number of earnings beats and strong outlooks.
One such airline benefitting from low oil costs is Southwest Airlines ( LUV ). The company recently reported a beat on our consensus earnings estimate by 5 cents per share (read Southwest Airlines Beats on Earnings and Revenues ). As a result of the earnings beat, Southwest Airlines closed up over 8% for the day.
Yet while LUV is still a strong choice, there are plenty of other airlines that look promising to start 2015. Here at Zacks, we have handpicked 3 airline stocks that are in this group and are worth considering as a new pick for your portfolio. Of course, they all hold a Zacks Rank #1 and may be interesting choices ahead of their earnings reports too:
ALGT Allegiant Travel
Allegiant Travel made headlines on Zacks recently, as it was the Bull of the Day . Of course, a large part of this is fueled by the lower oil costs, as with the rest of the industry. What makes this airline unique compared to others is that it doesn't hedge its fuel costs.
This results in even wider margins compared to its industry peers, since it is buying oil at a cost lower than most airlines. The costs that airlines incur with fuel are one of the largest expenses for the industry as a whole. The industry has a one-up on the market, but Allegiant Travel ( ALGT ) has a one-up on the industry.
Allegiant Travel has an Expected Earnings Surprise Prediction of 24.09% for the quarter. That coupled along with a Zacks Rank #1 is a strong indicator that the company is likely to have a beat when reporting earnings.
Allegiant also has an expected EPS growth of 33.57% for the year. This shows that the company has momentum pushing it forward in order to meet the demands of investors. The airliner also has a growth rate this year of 28% compared to 13.1% for the industry. This makes Allegiant Travel stand out as a pick that exceeds the standards of an already thriving industry.
Additionally, Allegiant Travel has reported positive surprise earnings in 3 of the last 4 quarters. The consensus earnings estimate has moved up consecutively in the last 90, 60, 30, and 7 day periods.
7 days ago, ALGT had a consensus estimate of $1.37 per share. Since then, it has moved up to $1.41 per share. There are numerous indications of positive momentum pushing this company forward going into earnings, so it is reasonable to expect a beat when the company reports earnings on 1/28/15.
DLAKYLufthansa GA
Lufthansa is the largest airline in Europe. It carries the most passengers in the continent, and also has the largest fleet of planes within the region.
This German airliner has climbed the ranks, going from a Zacks Rank #5 last week to a Zacks Rank #1. DLAKY has a massive growth rate for the year, compared to 13.1% for the industry. The trailing twelve months Price/Earnings ratio is 11.71, compared to 36.77 for the industry.
This would indicate that Lufthansa is undervalued compared to its peers within the industry. With a Price/Cash flow ratio for the most recent fiscal year of 2.95, compared to 7.33 for the industry, one can see that Lufthansa has more liquidity and equity value to fall on. This makes for a sound investment, especially with the extra security of a 2.5% dividend.
DLAKY has an earnings report on 3/12/15. Why not pick out the cream of the crop and start buying an airline poised to experience gains, which is also likely to post beats going into the earnings report? Keep an eye on this company, as the stats would suggest that this airliner is likely to surprise in the short term and it may be a stock off your radar as well.
HAHawaiian Airlines
Hawaiian Airlines is a growing company making strides in the airline industry. The airline set a new record with around 10.2 million travelers in 2014, up 2.6% from the previous year. Watch out for this company seeking to expand its destinations. Hawaiian Airlines is arguing its case now to occupy a slot between Tokyo International Airport (Japan), and Kona Airport (Hawaii).
The Hawaiian based airline makes a compelling case, arguing that if it got the slot, it would create at least 3 times the economic impact than other competing airlines. These companies competing for the slot include American Airlines ( AAL ) and Delta Airlines ( DAL ). It will be interesting to see how this unfolds and if Hawaiian Airlines manages to get the slot, it should considerably benefit the company and its expansion plans to Asia.
HA was a Zacks Rank #2 (Buy) just last week, and is now a Zacks Rank #1(Strong Buy). This along with an earnings Expected Surprise Prediction of 10.53% indicates that there is an increased likeliness that the company will have beats on earnings going into the report.
The trailing twelve month net profit margin was 3.3%. To put this into perspective, American Airlines ( AAL ) has a net profit margin of only 0.72%. There is a lot of momentum and positive statistics supporting Hawaiian Airlines as it approaches its earnings date, which is on 1/29/15.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
LUFTHANSA -ADR (DLAKY): Get Free Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
These companies competing for the slot include American Airlines ( AAL ) and Delta Airlines ( DAL ). To put this into perspective, American Airlines ( AAL ) has a net profit margin of only 0.72%. Click to get this free report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Get Free Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Click to get this free report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Get Free Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. These companies competing for the slot include American Airlines ( AAL ) and Delta Airlines ( DAL ). To put this into perspective, American Airlines ( AAL ) has a net profit margin of only 0.72%.
|
Click to get this free report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Get Free Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. These companies competing for the slot include American Airlines ( AAL ) and Delta Airlines ( DAL ). To put this into perspective, American Airlines ( AAL ) has a net profit margin of only 0.72%.
|
These companies competing for the slot include American Airlines ( AAL ) and Delta Airlines ( DAL ). To put this into perspective, American Airlines ( AAL ) has a net profit margin of only 0.72%. Click to get this free report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Get Free Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here.
|
8462.0
|
2015-01-26 00:00:00 UTC
|
Pre-Market Earnings Report for January 27, 2015 : PG, PFE, UTX, MMM, BMY, DD, LMT, DHR, CAT, NEE, AAL, ERIC
|
AAL
|
https://www.nasdaq.com/articles/pre-market-earnings-report-january-27-2015-pg-pfe-utx-mmm-bmy-dd-lmt-dhr-cat-nee-aal-eric
|
nan
|
nan
|
The following companies are expected to report earnings prior to market open on 01/27/2015. Visit our Earnings Calendar for a full list of expected earnings releases.
Procter & Gamble Company ( PG ) is reporting for the quarter ending December 31, 2014. The cleaning company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.14. This value represents a 5.79% decrease compared to the same quarter last year. PG missed the consensus earnings per share in the 3rd calendar quarter of 2014 by -0.93%. Zacks Investment Research reports that the 2015 Price to Earnings ratio for PG is 21.45 vs. an industry ratio of 19.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Pfizer, Inc. ( PFE ) is reporting for the quarter ending December 31, 2014. The large cap pharmaceutical company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.53. This value represents a 5.36% decrease compared to the same quarter last year. In the past year PFE has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.79%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for PFE is 14.36 vs. an industry ratio of 22.20.
United Technologies Corporation ( UTX ) is reporting for the quarter ending December 31, 2014. The diversified operations company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.61. This value represents a 3.59% decrease compared to the same quarter last year. In the past year UTX has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 0.55%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for UTX is 17.62 vs. an industry ratio of 20.70.
3M Company ( MMM ) is reporting for the quarter ending December 31, 2014. The diversified operations company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.79. This value represents a 10.49% increase compared to the same quarter last year. In the past year MMM has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2014 Price to Earnings ratio for MMM is 21.93 vs. an industry ratio of 20.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Bristol-Myers Squibb Company ( BMY ) is reporting for the quarter ending December 31, 2014. The large cap pharmaceutical company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.40. This value represents a 21.57% decrease compared to the same quarter last year. In the past year BMY has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 9.76%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for BMY is 34.68 vs. an industry ratio of 22.20, implying that they will have a higher earnings growth than their competitors in the same industry.
E.I. du Pont de Nemours and Company ( DD ) is reporting for the quarter ending December 31, 2014. The chemical company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.71. This value represents a 20.34% increase compared to the same quarter last year. DD missed the consensus earnings per share in the 1st calendar quarter of 2014 by -1.25%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for DD is 18.40 vs. an industry ratio of 15.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Lockheed Martin Corporation ( LMT ) is reporting for the quarter ending December 31, 2014. The aerospace and defense company's consensus earnings per share forecast from the 11 analysts that follow the stock is $2.81. This value represents a 7.66% increase compared to the same quarter last year. In the past year LMT has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.47%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for LMT is 17.61 vs. an industry ratio of 16.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Danaher Corporation ( DHR ) is reporting for the quarter ending December 31, 2014. The diversified operations company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.05. This value represents a 9.38% increase compared to the same quarter last year. In the past year DHR has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2014 Price to Earnings ratio for DHR is 22.62 vs. an industry ratio of 20.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Caterpillar, Inc. ( CAT ) is reporting for the quarter ending December 31, 2014. The machinery company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.55. This value represents a 0.65% increase compared to the same quarter last year. In the past year CAT has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 29.32%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for CAT is 13.07 vs. an industry ratio of 12.80, implying that they will have a higher earnings growth than their competitors in the same industry.
NextEra Energy, Inc. ( NEE ) is reporting for the quarter ending December 31, 2014. The electric power utilities company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.04. This value represents a 9.47% increase compared to the same quarter last year. Zacks Investment Research reports that the 2014 Price to Earnings ratio for NEE is 20.58 vs. an industry ratio of 16.50, implying that they will have a higher earnings growth than their competitors in the same industry.
American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending December 31, 2014. The airline company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.51. This value represents a no change for the same quarter last year. In the past year AAL has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.84%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for AAL is 9.80 vs. an industry ratio of 34.60.
Ericsson ( ERIC ) is reporting for the quarter ending December 31, 2014. The wireless equipment company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.25. This value represents a 34.21% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2014 Price to Earnings ratio for ERIC is 19.25 vs. an industry ratio of 24.40.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending December 31, 2014. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2014 Price to Earnings ratio for AAL is 9.80 vs. an industry ratio of 34.60.
|
American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending December 31, 2014. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2014 Price to Earnings ratio for AAL is 9.80 vs. an industry ratio of 34.60.
|
American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending December 31, 2014. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2014 Price to Earnings ratio for AAL is 9.80 vs. an industry ratio of 34.60.
|
American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending December 31, 2014. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2014 Price to Earnings ratio for AAL is 9.80 vs. an industry ratio of 34.60.
|
8463.0
|
2015-01-23 00:00:00 UTC
|
American Airlines Group (AAL) Likely to Beat Earnings in Q4 - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-aal-likely-to-beat-earnings-in-q4-analyst-blog-2015-01-23
|
nan
|
nan
|
We expect American Airlines Group ( AAL ) to report better-than-expected fourth-quarter 2014 earnings on Jan 27, 2015. Results will be declared prior to the commencement of trading on the day.
Why a Likely Positive Surprise?
Our proven model shows that the company is poised to beat earnings this quarter as it has the right combination of 2 key components:
Zacks ESP : The carrier currently has an Earnings ESP of +0.66%. This is because the Zacks Consensus Estimate is $1.51, while the Most Accurate Estimate stands higher at $1.52.
Zacks Rank : American Airlines Group carries a Zacks Rank #1 (Strong Buy). Note that stocks with Zacks Rank #1, 2 and 3 have a higher chance of beating earnings. Conversely, Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
The combination of American Airlines Group's Zacks Rank #1 and +0.66% earnings ESP makes us confident of an earnings beat at the company.
What's Driving the Better-than-Expected Earnings?
American Airlines Group, created following the merger of American Airlines and U.S. Airways Group Inc., has a healthy track record with respect to earnings. The company has delivered positive earnings surprises in each of the last four quarters, with an average beat of 47.88%. The company, like many of its peers in the industry, is benefiting considerably from persistent weak oil prices. American Airlines Group's results in the final quarter of the year are also likely to benefit from low fuel costs. This is because fuel costs account for a major chunk of an airline's operating expenses. Consequently, cheaper oil price should boost the company's bottom-line in the quarter.
Moreover, the carrier projects consolidated passenger revenue per available seat mile or PRASM (a measure of unit revenue) for the final quarter of 2014 to be approximately flat to down 2%.
Most importantly, American Airlines Group has witnessed upward revisions in earnings estimates. The Zacks Consensus Estimate for the fourth-quarter has moved north by 17.1% over the last 90 days.
Other Stocks to Consider
American Airlines Group is not the only carrier looking up this earnings season. The following airline stocks are also likely to beat earnings in the upcoming quarter:
JetBlue Airways Corporation ( JBLU ): The carrier will unveil its fourth quarter earnings numbers on Jan 29, before market opens. The company carries a Zacks Rank #1 and has an earnings ESP of +4.35%.
Hawaiian Holdings, Inc. ( HA ), the parent company of Hawaiian Airlines, will release fourth quarter earnings results on Jan 29, after market closes. The company carries a Zacks Rank #1 and has an earnings ESP of +10.53%.
Spirit Airlines, Inc. ( SAVE ) has a Zacks Rank #2 (Buy) and an earnings ESP of +2.60%. The company is expected to report fourth-quarter 2014 earnings on Feb 18.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
We expect American Airlines Group ( AAL ) to report better-than-expected fourth-quarter 2014 earnings on Jan 27, 2015. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group's results in the final quarter of the year are also likely to benefit from low fuel costs.
|
We expect American Airlines Group ( AAL ) to report better-than-expected fourth-quarter 2014 earnings on Jan 27, 2015. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank : American Airlines Group carries a Zacks Rank #1 (Strong Buy).
|
Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We expect American Airlines Group ( AAL ) to report better-than-expected fourth-quarter 2014 earnings on Jan 27, 2015. The combination of American Airlines Group's Zacks Rank #1 and +0.66% earnings ESP makes us confident of an earnings beat at the company.
|
We expect American Airlines Group ( AAL ) to report better-than-expected fourth-quarter 2014 earnings on Jan 27, 2015. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group's results in the final quarter of the year are also likely to benefit from low fuel costs.
|
8464.0
|
2015-01-22 00:00:00 UTC
|
Alaska Air Group Q4 Earnings Beat, Revs Nearly in Line - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/alaska-air-group-q4-earnings-beat-revs-nearly-in-line-analyst-blog-2015-01-22
|
nan
|
nan
|
Alaska Air Group, Inc. ( ALK ) reported fourth-quarter 2014 financial numbers with earnings per share of 94 cents surpassing the Zacks Consensus Estimate of 91 cents.
Quarterly revenues increased 8% year over year to $1,306 million and were almost in line with the Zacks Consensus Estimate. On a year-over-year basis, Passenger revenues improved 8%.
Alaska Air Group recently hiked its quarterly dividend by 60% to 20 cents a share on its common stock. The raised dividend will be paid on Mar 10, 2015, to shareholders of record as of Feb 24, 2015.
Operating Statistics
Airline traffic, measured in revenue passenger miles, moved up 9.5% year over year to 7,640 million in the fourth quarter. Capacity or available seat miles increased 10.6% to 9,156 million, while load factor (percentage of seats filled with passengers) stood at 83.4% against 84.4% recorded in the year-ago quarter. Meanwhile, passenger revenue per available seat mile (PRASM) decreased 2.4% year over year to 12.19 cents.
Operating Expenses & Operating Income
In the fourth quarter, adjusted operating income jumped 86% to $242 million from the last-year quarter. Total adjusted operating expenses fell 1% year over year to $1,064 million owing to a drop in variable incentive pay and contract service expenses. Fuel price (economic) stood at $2.64 per gallon, down from $3.21 in the year-ago quarter. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel and special items, fell 2.4% year over year to 8.6 cents.
Liquidity
At the end of the fourth quarter, Alaska Air Group had $1,217 million in cash and marketable securities against $1,330 million in the prior year quarter. The company had long-term debt of $686 million, representing a debt-to-capitalization ratio of 31%.
In full-year 2014, the company generated operating cash flow of $1 billion and free cash flow of $344 million.
Alaska Air Group currently holds a Zacks Rank #1 (Strong Buy).
Other Key Picks
Other favorably-ranked stocks in the same industry include Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). All three sport a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other Key Picks Other favorably-ranked stocks in the same industry include Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air Group recently hiked its quarterly dividend by 60% to 20 cents a share on its common stock.
|
Other Key Picks Other favorably-ranked stocks in the same industry include Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Operating Expenses & Operating Income In the fourth quarter, adjusted operating income jumped 86% to $242 million from the last-year quarter.
|
Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other Key Picks Other favorably-ranked stocks in the same industry include Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Operating Statistics Airline traffic, measured in revenue passenger miles, moved up 9.5% year over year to 7,640 million in the fourth quarter.
|
Other Key Picks Other favorably-ranked stocks in the same industry include Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air Group recently hiked its quarterly dividend by 60% to 20 cents a share on its common stock.
|
8465.0
|
2015-01-22 00:00:00 UTC
|
United Continental Beats on Q4 Earnings, Revs in Line - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/united-continental-beats-on-q4-earnings-revs-in-line-analyst-blog-2015-01-22
|
nan
|
nan
|
United Continental Holdings Inc. ( UAL ) - one of the leading U.S. airline companies - reported higher-than-expected earnings in the fourth quarter of 2014. The company posted adjusted earnings of $1.20 per share, ahead of the Zacks Consensus Estimate of $1.14. The earnings beat caused the company's shares to rise in early trading.
United Continental Holdings Inc. - Earnings Surprise | FindTheBest
Including special items, the company reported earnings of 7 cents, well below the comparable figure of 37 cents a year-ago.
Quarterly total revenue declined 0.2% year over year to $9.3 billion, but was in line with the Zacks Consensus Estimate. On a year-over-year basis, passenger revenues increased 1.3% while cargo revenues rose 18.2% mainly buoyed by higher volumes. Other revenues dropped 14.3% from the year-earlier quarter mainly affected by termination of a deal to sell fuel to a third party.
Consolidated passenger revenue per available seat miles (PRASM or unit revenue) rose 0.4% year over year.
Total operating expenses, excluding fuel, profit sharing, special charges and third party expenses, declined 4.7% year over year. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel, third-party business expenses and special items, increased 1.2% year over year to 9.73 cents. Fuel costs declined 14.7% during the quarter (including realized hedging losses).
As of Dec 31, 2014, United Continental Holdings had $5.7 billion of unrestricted liquidity, out of which $1.35 billion was invested in revolving credit facilities. In the fourth quarter, United Continental spent nearly $100 million in share repurchases. The company's return on invested capital was 12.9% in full year 2014.
The company expects its performance to improve in 2015 compared to 2014. CASM in 2015 on a consolidated basis, excluding fuel and third-party business expense, is expected to be approximately flat. In the first quarter of 2015, the company projects pre-tax margin (excluding special items) in the range of 5% to 7%.
Peer Releases
American Airlines Group ( AAL ) will release its fourth quarter earnings result on January 27, before the commencement of trading. We expect the company to report lower-than-expected earnings in the quarter. The company, though carrying a Zacks Rank #1 (Strong Buy), possesses a negative Earnings ESP . According to our model, a stock needs to have both a positive earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) for us to confidently predict an earnings beat.
Zacks Rank
United Continental Holdings currently holds a Zacks Rank #1. Equally well ranked stocks in the industry include Alaska Air Group, Inc. ( ALK ) and Delta Air Lines, Inc. ( DAL ).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UNITED CONT HLD (UAL): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Peer Releases American Airlines Group ( AAL ) will release its fourth quarter earnings result on January 27, before the commencement of trading. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings Inc. ( UAL ) - one of the leading U.S. airline companies - reported higher-than-expected earnings in the fourth quarter of 2014.
|
Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Peer Releases American Airlines Group ( AAL ) will release its fourth quarter earnings result on January 27, before the commencement of trading. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel, third-party business expenses and special items, increased 1.2% year over year to 9.73 cents.
|
Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Peer Releases American Airlines Group ( AAL ) will release its fourth quarter earnings result on January 27, before the commencement of trading. United Continental Holdings Inc. - Earnings Surprise | FindTheBest Including special items, the company reported earnings of 7 cents, well below the comparable figure of 37 cents a year-ago.
|
Peer Releases American Airlines Group ( AAL ) will release its fourth quarter earnings result on January 27, before the commencement of trading. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings Inc. ( UAL ) - one of the leading U.S. airline companies - reported higher-than-expected earnings in the fourth quarter of 2014.
|
8466.0
|
2015-01-22 00:00:00 UTC
|
Canadian Pacific (CP) Q4 Earnings Miss, Revenues Beat - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/canadian-pacific-cp-q4-earnings-miss-revenues-beat-analyst-blog-2015-01-22
|
nan
|
nan
|
Canada's leading railway carrier, Canadian Pacific Railway Limited ( CP ), reported earnings per share of C$2.63 (approximately $2.32) in the fourth quarter of 2014 against 47 cents recorded in the year-ago quarter. However, adjusted earnings per share of $2.20 missed the Zacks Consensus Estimate of $2.28.
Quarterly revenues climbed 9.5% year over year to C$1,760 million ($1,550 million), which also outpaced the Zacks Consensus Estimate of $1,512 million. The demand for rail services remained healthy across most business segments translating into strong year-over-year growth. In the fourth quarter, carloads (volume) increased 4% year over year and revenue ton-miles.
Operating income witnessed record improvement of 521% year over year to C$708 million on higher shipments, cost efficiency, increased freight rates, lower pension expenses and favorable exchange rates. Operating expenses fell 29.5% year over year owing to lower incentive compensation and assets impairment charges. Operating ratio (defined as operating expenses as a percentage of revenues) improved a whopping 310 basis points year over year to 61.2% on continued focus on maintaining asset efficiencies, safety measures and productivity increase.
Liquidity
Canadian Pacific exited the fourth quarter with cash and cash equivalents of C$226 million against C$476 million at the end of fiscal 2013. Long-term debt was C$5,659 million against C$4,687 million at end-2013.
Outlook
The company expects operating ratio for full-year fiscal 2015 to remain below 62% while revenues are likely to expand between 7% and 8%. Likewise, non-GAAP earnings per share for the fiscal are projected to rise over 25% year over year.
Currently, Canadian Pacific has a Zacks Rank #3 (Hold).
Stocks to Consider
Other better ranked stocks are Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). All three sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DELTA AIR LINES (DAL): Free Stock Analysis Report
CDN PAC RLWY (CP): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Stocks to Consider Other better ranked stocks are Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report CDN PAC RLWY (CP): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The demand for rail services remained healthy across most business segments translating into strong year-over-year growth.
|
Stocks to Consider Other better ranked stocks are Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report CDN PAC RLWY (CP): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Canada's leading railway carrier, Canadian Pacific Railway Limited ( CP ), reported earnings per share of C$2.63 (approximately $2.32) in the fourth quarter of 2014 against 47 cents recorded in the year-ago quarter.
|
Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report CDN PAC RLWY (CP): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Other better ranked stocks are Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Quarterly revenues climbed 9.5% year over year to C$1,760 million ($1,550 million), which also outpaced the Zacks Consensus Estimate of $1,512 million.
|
Stocks to Consider Other better ranked stocks are Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report CDN PAC RLWY (CP): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Quarterly revenues climbed 9.5% year over year to C$1,760 million ($1,550 million), which also outpaced the Zacks Consensus Estimate of $1,512 million.
|
8467.0
|
2015-01-22 00:00:00 UTC
|
Southwest Airlines Q4 Earnings, Revs Top Estimates - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/southwest-airlines-q4-earnings-revs-top-estimates-analyst-blog-2015-01-22
|
nan
|
nan
|
Leading U.S. carrier Southwest Airlines Co. ( LUV ) reported impressive fourth-quarter 2014 financial numbers. The company reported earnings of 59 cents a share, surpassing the Zacks Consensus Estimate of 54 cents. This marks the carrier's sixth consecutive quarter of record profits, achieved on the back of successful execution of its strategic initiatives.
Southwest Airlines Company - Earnings Surprise | FindTheBest
Quarterly revenues moved up 4.5% year over year to $4,628 million, ahead of the Zacks Consensus Estimate of $4,590 million. On a year-over-year basis, Passenger and Freight revenues increased 5.1% and 12.2% respectively, while Other revenues fell 8.9%.
Operating Statistics
Airline traffic, measured in billions of revenue passenger miles, increased 4.3% year over year to 26.76 billion in the fourth quarter. Capacity or available seat miles decreased 2.4% to 33.79 billion, while load factor (percentage of seats filled with passengers) was 82% against 80.4% in the year-ago quarter. Passenger revenue per available seat mile (PRASM) increased 2.6% year over year to 13.5 cents.
Operating Expenses & Operating Income
In the fourth quarter, adjusted operating income scaled up to $621 million from $386 million a year ago, reflecting an operating margin of 13.4%. Total adjusted operating expenses fell 0.9% year over year to $4,007 million. Fuel price (economic) stood at $2.62 per gallon, down from $3.05 a year ago. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel and special items, increased 2.3% year over year to 8.52 cents.
Liquidity
At the end of the fourth quarter, Southwest Airlines had $2,988 million in cash and short-term investments against $3,152 million in the year-ago quarter. The company had long-term debt (including current portion) of $2,434 million against $2,191 million in the last-year quarter. Southwest Airlines generated operating cash flow of $203 million in the quarter while capital expenditures totaled $467 million.
Southwest Airlines currently sports a Zacks Rank #1, implying Strong Buy.
Stocks to Consider
Other favorably-ranked stocks in the same industry are Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). All three sport a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Stocks to Consider Other favorably-ranked stocks in the same industry are Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Leading U.S. carrier Southwest Airlines Co. ( LUV ) reported impressive fourth-quarter 2014 financial numbers.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Other favorably-ranked stocks in the same industry are Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Southwest Airlines Company - Earnings Surprise | FindTheBest Quarterly revenues moved up 4.5% year over year to $4,628 million, ahead of the Zacks Consensus Estimate of $4,590 million.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Other favorably-ranked stocks in the same industry are Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Southwest Airlines Company - Earnings Surprise | FindTheBest Quarterly revenues moved up 4.5% year over year to $4,628 million, ahead of the Zacks Consensus Estimate of $4,590 million.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Other favorably-ranked stocks in the same industry are Delta Air Lines Inc. ( DAL ), American Airlines Group ( AAL ) and Hawaiian Holdings Inc. ( HA ). Southwest Airlines Company - Earnings Surprise | FindTheBest Quarterly revenues moved up 4.5% year over year to $4,628 million, ahead of the Zacks Consensus Estimate of $4,590 million.
|
8468.0
|
2015-01-20 00:00:00 UTC
|
Nasdaq 100 Movers: VIAB, ILMN
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-viab-ilmn-2015-01-20
|
nan
|
nan
|
In early trading on Tuesday, shares of Illumina ( ILMN ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.2%. Year to date, Illumina registers a 3.7% gain.
And the worst performing Nasdaq 100 component thus far on the day is Viacom ( VIAB ), trading down 4.3%. Viacom is lower by about 13.4% looking at the year to date performance.
Two other components making moves today are Wynn Resorts ( WYNN ), trading down 3.2%, and American Airlines Group ( AAL ), trading up 2.9% on the day.
VIDEO: Nasdaq 100 Movers: VIAB, ILMN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Two other components making moves today are Wynn Resorts ( WYNN ), trading down 3.2%, and American Airlines Group ( AAL ), trading up 2.9% on the day. And the worst performing Nasdaq 100 component thus far on the day is Viacom ( VIAB ), trading down 4.3%. VIDEO: Nasdaq 100 Movers: VIAB, ILMN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Two other components making moves today are Wynn Resorts ( WYNN ), trading down 3.2%, and American Airlines Group ( AAL ), trading up 2.9% on the day. And the worst performing Nasdaq 100 component thus far on the day is Viacom ( VIAB ), trading down 4.3%. VIDEO: Nasdaq 100 Movers: VIAB, ILMN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Two other components making moves today are Wynn Resorts ( WYNN ), trading down 3.2%, and American Airlines Group ( AAL ), trading up 2.9% on the day. In early trading on Tuesday, shares of Illumina ( ILMN ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.2%. And the worst performing Nasdaq 100 component thus far on the day is Viacom ( VIAB ), trading down 4.3%.
|
Two other components making moves today are Wynn Resorts ( WYNN ), trading down 3.2%, and American Airlines Group ( AAL ), trading up 2.9% on the day. And the worst performing Nasdaq 100 component thus far on the day is Viacom ( VIAB ), trading down 4.3%. Viacom is lower by about 13.4% looking at the year to date performance.
|
8469.0
|
2015-01-20 00:00:00 UTC
|
Delta Air Lines (DAL) Beats Q4 Earnings on Strong Revenues - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/delta-air-lines-dal-beats-q4-earnings-on-strong-revenues-analyst-blog-2015-01-20
|
nan
|
nan
|
Airline behemoth Delta Air Lines Inc. ( DAL ) exited 2014 on an impressive note reporting higher-than-expected revenues and earnings in the final quarter. The carrier reported fourth-quarter 2014 adjusted earnings of 78 cents per share, surpassing the Zacks Consensus Estimate of 75 cents. Earnings were 20% above the year-ago figure. The earnings beat saw the stock gaining in early trading.
Delta Air Lines Inc. - Earnings Surprise | FindTheBest
Including special items, the carrier lost $712 million or 86 cents per share mainly due to fuel hedge settlements.
Revenues increased 6% year over year to $9.65 billion in the reported quarter and was ahead of the Zacks Consensus Estimate of $9.59 billion. During the quarter, passenger revenues grew 5% and other revenues improved 21% from the prior-year period. Cargo revenues climbed 2%.
For full-year 2014, Delta posted earnings of $3.31 per share (just short of our projection of $3.33) on revenues of $40.36 billion (ahead of our expectation of $40.29 billion and up 7% from the prior year).
Operating Statistics
Airline traffic, measured in revenue passenger miles, went up 4% year over year to 48 billion. Capacity or available seat miles increased 4% to 58 billion, while load factor (percentage of seats filled with passengers) improved 20 basis points year over year to 82.8%. Passenger revenue per available seat mile (PRASM) or unit revenue rose 1% year over year, led by a 1% increase in yield.
Operating Expenses
Total operating expenses, including special items, increased 25% year over year to $10,475 million. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel cost, profit sharing and special items, crept up 1%.
Liquidity
At the end of 2014, the company had $3.3 billion in cash and short-term investments and net debt of $7.3 billion. The company has reduced its adjusted net debt by approximately $10 billion since 2009.
The company generated operating cash flow of $1.5 billion in the fourth quarter while capital expenditures totaled $620 million.
Dividend and Share Repurchase
During the quarter, the company returned $575 million to its shareholders. The carrier paid $75 million in cash dividends and bought back 12.2 million shares for $500 million. We are impressed by the company's efforts to reward shareholders through dividends and share buybacks.
Guidance
For the first quarter of 2015, the carrier expects operating margin in the range of 11% to 13% and projects consolidated unit cost, excluding fuel and profit sharing, to increase 0-2% year over year in the first quarter.
The estimated fuel price, including taxes and hedges, is approximately $2.45 to $2.50 per gallon. System capacity is expected to increase approximately 3% (excluding the impact of winter storms).
Our Take and the Way Ahead
We are impressed by Delta's outperformance in the final quarter of 2014. Delta is benefiting considerably from persistent weak oil prices . With oil prices expected to remain weak for quite some time ahead, Delta should continue to witness an upside. This is because fuel costs account for a major chunk of an airline's operating expenses. Consequently, cheaper oil price should continue to boost Delta's bottom-line going forward.
Furthermore, we believe that the company will benefit from various strategic measures such as route launches, introduction of ancillary products, strong customer service and fleet revamping.
Upcoming Earning Releases
Of the other stocks in the sector, United Continental Holdings Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) will release their fourth quarter results on Jan 22, while American Airlines Group ( AAL ) will release the same on Jan 27. All the three stocks, akin to Delta, sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DELTA AIR LINES (DAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Upcoming Earning Releases Of the other stocks in the sector, United Continental Holdings Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) will release their fourth quarter results on Jan 22, while American Airlines Group ( AAL ) will release the same on Jan 27. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Airline behemoth Delta Air Lines Inc. ( DAL ) exited 2014 on an impressive note reporting higher-than-expected revenues and earnings in the final quarter.
|
Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Earning Releases Of the other stocks in the sector, United Continental Holdings Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) will release their fourth quarter results on Jan 22, while American Airlines Group ( AAL ) will release the same on Jan 27. Operating Expenses Total operating expenses, including special items, increased 25% year over year to $10,475 million.
|
Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Earning Releases Of the other stocks in the sector, United Continental Holdings Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) will release their fourth quarter results on Jan 22, while American Airlines Group ( AAL ) will release the same on Jan 27. Revenues increased 6% year over year to $9.65 billion in the reported quarter and was ahead of the Zacks Consensus Estimate of $9.59 billion.
|
Upcoming Earning Releases Of the other stocks in the sector, United Continental Holdings Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) will release their fourth quarter results on Jan 22, while American Airlines Group ( AAL ) will release the same on Jan 27. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues increased 6% year over year to $9.65 billion in the reported quarter and was ahead of the Zacks Consensus Estimate of $9.59 billion.
|
8470.0
|
2015-01-13 00:00:00 UTC
|
Company News for January 13, 2015 - Corporate Summary
|
AAL
|
https://www.nasdaq.com/articles/company-news-for-january-13-2015-corporate-summary-2015-01-13
|
nan
|
nan
|
• Express Inc.'s ( EXPR ) shares gained 3.2% after forecasting earnings per share between $0.43 and $0.46, compared to its earlier guidance of $0.38-$0.45
• Shares of American Airlines Group Inc. ( AAL ) declined 4.7% after posting total passenger revenue miles of 18.1 billion, declining 0.4% year-on-year
• MWI Veterinary Supply, Inc.'s ( MWIV ) shares jumped 8.2% after AmerisourceBergen Corporation ( ABC ) declared that it will acquire the company for around $2.5 billion
• Shares of Burlington Stores, Inc. ( BURL ) rose 2.7% after estimating full year earnings per share between $1.70 and $1.72, up from its previously guided range of $1.65 to $1.67
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
EXPRESS INC (EXPR): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
MWI VET SUPPLY (MWIV): Free Stock Analysis Report
AMERISOURCEBRGN (ABC): Free Stock Analysis Report
BURLINGTON STRS (BURL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
• Express Inc.'s ( EXPR ) shares gained 3.2% after forecasting earnings per share between $0.43 and $0.46, compared to its earlier guidance of $0.38-$0.45 • Shares of American Airlines Group Inc. ( AAL ) declined 4.7% after posting total passenger revenue miles of 18.1 billion, declining 0.4% year-on-year • MWI Veterinary Supply, Inc.'s ( MWIV ) shares jumped 8.2% after AmerisourceBergen Corporation ( ABC ) declared that it will acquire the company for around $2.5 billion • Shares of Burlington Stores, Inc. ( BURL ) rose 2.7% after estimating full year earnings per share between $1.70 and $1.72, up from its previously guided range of $1.65 to $1.67 Want the latest recommendations from Zacks Investment Research? Click to get this free report EXPRESS INC (EXPR): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report MWI VET SUPPLY (MWIV): Free Stock Analysis Report AMERISOURCEBRGN (ABC): Free Stock Analysis Report BURLINGTON STRS (BURL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
• Express Inc.'s ( EXPR ) shares gained 3.2% after forecasting earnings per share between $0.43 and $0.46, compared to its earlier guidance of $0.38-$0.45 • Shares of American Airlines Group Inc. ( AAL ) declined 4.7% after posting total passenger revenue miles of 18.1 billion, declining 0.4% year-on-year • MWI Veterinary Supply, Inc.'s ( MWIV ) shares jumped 8.2% after AmerisourceBergen Corporation ( ABC ) declared that it will acquire the company for around $2.5 billion • Shares of Burlington Stores, Inc. ( BURL ) rose 2.7% after estimating full year earnings per share between $1.70 and $1.72, up from its previously guided range of $1.65 to $1.67 Want the latest recommendations from Zacks Investment Research? Click to get this free report EXPRESS INC (EXPR): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report MWI VET SUPPLY (MWIV): Free Stock Analysis Report AMERISOURCEBRGN (ABC): Free Stock Analysis Report BURLINGTON STRS (BURL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
• Express Inc.'s ( EXPR ) shares gained 3.2% after forecasting earnings per share between $0.43 and $0.46, compared to its earlier guidance of $0.38-$0.45 • Shares of American Airlines Group Inc. ( AAL ) declined 4.7% after posting total passenger revenue miles of 18.1 billion, declining 0.4% year-on-year • MWI Veterinary Supply, Inc.'s ( MWIV ) shares jumped 8.2% after AmerisourceBergen Corporation ( ABC ) declared that it will acquire the company for around $2.5 billion • Shares of Burlington Stores, Inc. ( BURL ) rose 2.7% after estimating full year earnings per share between $1.70 and $1.72, up from its previously guided range of $1.65 to $1.67 Want the latest recommendations from Zacks Investment Research? Click to get this free report EXPRESS INC (EXPR): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report MWI VET SUPPLY (MWIV): Free Stock Analysis Report AMERISOURCEBRGN (ABC): Free Stock Analysis Report BURLINGTON STRS (BURL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
• Express Inc.'s ( EXPR ) shares gained 3.2% after forecasting earnings per share between $0.43 and $0.46, compared to its earlier guidance of $0.38-$0.45 • Shares of American Airlines Group Inc. ( AAL ) declined 4.7% after posting total passenger revenue miles of 18.1 billion, declining 0.4% year-on-year • MWI Veterinary Supply, Inc.'s ( MWIV ) shares jumped 8.2% after AmerisourceBergen Corporation ( ABC ) declared that it will acquire the company for around $2.5 billion • Shares of Burlington Stores, Inc. ( BURL ) rose 2.7% after estimating full year earnings per share between $1.70 and $1.72, up from its previously guided range of $1.65 to $1.67 Want the latest recommendations from Zacks Investment Research? Click to get this free report EXPRESS INC (EXPR): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report MWI VET SUPPLY (MWIV): Free Stock Analysis Report AMERISOURCEBRGN (ABC): Free Stock Analysis Report BURLINGTON STRS (BURL): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
|
8471.0
|
2015-01-13 00:00:00 UTC
|
Weak December Traffic Hurts Southwest, American Airlines - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/weak-december-traffic-hurts-southwest-american-airlines-analyst-blog-2015-01-13
|
nan
|
nan
|
Shares of American Airlines Group Inc. ( AAL ) and Southwest Airlines Co . ( LUV ) declined 4.69% and 1.32% respectively on Jan 12, following the disclosure of their individual traffic data for Dec 2014.
On comparison, the numbers revealed by American Airlines were more disappointing. Revenue passenger miles (RPMs) came in at 18.1 billion for the month, down 0.4% year over year. Weakness in traffic in the Latin American and Atlantic divisions hurt results. Capacity increased 3.7% to 22.5 billion. Load factor (% of seats filled) came in at 80.4%, down 3.4% from the year-ago figure.
The carrier projects consolidated passenger revenue per available seat mile or PRASM (a measure of unit revenue) for the final quarter of 2014 to be approximately flat to down 2%. The weak forecast coupled with the below par traffic numbers for December clearly failed to please investors. For 2014, RPMs improved 1.1% to 217.9 billion. Load factor for the year declined 0.9% from 2013 to 82%.
Shares of Southwest Airlines too fell albeit marginally after the company declared that its PRASM for December declined in the range of 4% to 5% on a year-over-year basis. The metric is however estimated to increase in the range of 1% to 2% in the final quarter of 2014.
Load factor for the month of December declined 10 basis points to 82.7%. RPMs came in at 9.2 billion, up 2.8% year over year. Capacity of this low-cost carrier also increased 2.9% to 11.2 billion.
Zacks Rank
Both Southwest Airlines and American Airlines Group carry a Zacks Rank #1 (Strong Buy). Equally well-ranked stocks worth considering in the airline space are Delta Air Lines ( DAL ) and Ryanair Holdings plc ( RYAAY ).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
RYANAIR HLDGS (RYAAY): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of American Airlines Group Inc. ( AAL ) and Southwest Airlines Co . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. The weak forecast coupled with the below par traffic numbers for December clearly failed to please investors.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of American Airlines Group Inc. ( AAL ) and Southwest Airlines Co . Zacks Rank Both Southwest Airlines and American Airlines Group carry a Zacks Rank #1 (Strong Buy).
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of American Airlines Group Inc. ( AAL ) and Southwest Airlines Co . Revenue passenger miles (RPMs) came in at 18.1 billion for the month, down 0.4% year over year.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of American Airlines Group Inc. ( AAL ) and Southwest Airlines Co . Revenue passenger miles (RPMs) came in at 18.1 billion for the month, down 0.4% year over year.
|
8472.0
|
2015-01-13 00:00:00 UTC
|
Virgin America's December Traffic Up on Route Expansion, Higher Travels - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/virgin-americas-december-traffic-up-on-route-expansion-higher-travels-analyst-blog-2015-01
|
nan
|
nan
|
Virgin America Inc. ( VA ) witnessed a significant increase in air traffic in the month of December. Traffic - measured in revenue passenger miles (RPMs) - came in at 872.7 million, up 1.7% from 858 million recorded in the comparable month a year ago. Also, on a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 0.5% to 1.05 billion.
Meanwhile, the load factor or percentage of seats filled by passengers increased to 82.8% in December from 81.9% in the year-ago month. Likewise, passengers boarded in the month grew 2.3% while for the full year the metric rose 2.8%.
In fiscal 2014, Virgin America generated RPMs of 10.07 billion (up 2.7% year over year) and ASMs of 12.24 billion (flat year over year). Load factor stood at 82.3% against 80.2% last year.
Recently, Virgin America initiated a daily non-stop seasonal service between New York's John F. Kennedy International Airport (JFK) and Fort Lauderdale International Airport (FLL).
In Nov 14, 2014, Virgin America had marked an impressive debut on Nasdaq with shares reaching 30% on the very first day of trading.
Virgin America continues its success story largely benefitting from new route launches, introduction of ancillary products, and efficient customer service. Moreover, lower fuel prices continue to boost profits for the company.
Other Stocks to Consider
Virgin America currently carries a Zacks Rank #2 (Buy). Other favorably-ranked stocks are American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ) and Hawaiian Holdings Inc. ( HA ), all of which sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
VIRGIN AMERICA (VA): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other favorably-ranked stocks are American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ) and Hawaiian Holdings Inc. ( HA ), all of which sport a Zacks Rank #1 (Strong Buy). Click to get this free report VIRGIN AMERICA (VA): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In Nov 14, 2014, Virgin America had marked an impressive debut on Nasdaq with shares reaching 30% on the very first day of trading.
|
Other favorably-ranked stocks are American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ) and Hawaiian Holdings Inc. ( HA ), all of which sport a Zacks Rank #1 (Strong Buy). Click to get this free report VIRGIN AMERICA (VA): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Click to get this free report VIRGIN AMERICA (VA): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other favorably-ranked stocks are American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ) and Hawaiian Holdings Inc. ( HA ), all of which sport a Zacks Rank #1 (Strong Buy). In fiscal 2014, Virgin America generated RPMs of 10.07 billion (up 2.7% year over year) and ASMs of 12.24 billion (flat year over year).
|
Other favorably-ranked stocks are American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ) and Hawaiian Holdings Inc. ( HA ), all of which sport a Zacks Rank #1 (Strong Buy). Click to get this free report VIRGIN AMERICA (VA): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, the load factor or percentage of seats filled by passengers increased to 82.8% in December from 81.9% in the year-ago month.
|
8473.0
|
2015-01-12 00:00:00 UTC
|
United Continental's (UAL) December Traffic Rises Slightly - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/united-continentals-ual-december-traffic-rises-slightly-analyst-blog-2015-01-12
|
nan
|
nan
|
United Continental Holdings Inc. ( UAL ), the parent company of United Airlines, reported a marginal increase in its Dec 2014 traffic. Results were hurt by weak domestic traffic data. Consolidated airline traffic (measured in revenue passenger miles or RPMs), which implies revenue generated per mile per passenger, inched up 0.1% year over year to 16.9 billion. Domestic traffic declined 3.3%, while international travel climbed 4.1%.
Consolidated capacity (or available seat miles/ASMs) for the month was 20.2 billion, up 2.3% from Dec 2013. The load factor (percentage of seats filled by passengers) deteriorated to 83.5% from 85.4% in the same month last year. The company registered a completion factor of 99.2%, with nearly 76.2% of flights on schedule.
During 2014, United Continental generated RPMs of 205.6 billion (up 0.2% year over year) and ASMs of 246 billion (up 0.3% year over year), leading to a load factor of 83% (up 150 basis points).
Apart from the traffic data, United Continental also provided an investor update. The company stated that preliminary passenger revenue per available seat mile (PRASM) for the final quarter of 2014 climbed in the band of 0.25%-0.75% on a year-over-year basis.
The carrier also stated that it has spent approximately $2.83 per gallon on jet fuel in the final quarter of the year. This includes 25 cents per gallon of cash-settled hedge losses.
For 2014, preliminary PRASM increased in the range of 1.6%-1.7% compared to 2013. Cargo revenues are expected in the band of $928-$948 million while other revenues are projected in the range of $4.19-$4.21 billion.
Incidentally, United Continental's Dec 2014 numbers lag rival Delta Air Lines Inc.'s ( DAL ) comparable results. Delta's traffic was up more than 2.1% in December. Delta projects a spending of $2.59-$2.64 (on an adjusted basis) per gallon on jet fuel in the final quarter of the year.
Zacks Rank
United Continental currently carries a Zacks Rank #1 (Strong Buy). Equally well-ranked stocks in the airline space are American Airlines Group Inc. ( AAL ) and Southwest Airlines ( LUV ).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UNITED CONT HLD (UAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Equally well-ranked stocks in the airline space are American Airlines Group Inc. ( AAL ) and Southwest Airlines ( LUV ). Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company stated that preliminary passenger revenue per available seat mile (PRASM) for the final quarter of 2014 climbed in the band of 0.25%-0.75% on a year-over-year basis.
|
Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Equally well-ranked stocks in the airline space are American Airlines Group Inc. ( AAL ) and Southwest Airlines ( LUV ). Consolidated airline traffic (measured in revenue passenger miles or RPMs), which implies revenue generated per mile per passenger, inched up 0.1% year over year to 16.9 billion.
|
Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Equally well-ranked stocks in the airline space are American Airlines Group Inc. ( AAL ) and Southwest Airlines ( LUV ). Consolidated airline traffic (measured in revenue passenger miles or RPMs), which implies revenue generated per mile per passenger, inched up 0.1% year over year to 16.9 billion.
|
Equally well-ranked stocks in the airline space are American Airlines Group Inc. ( AAL ) and Southwest Airlines ( LUV ). Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings Inc. ( UAL ), the parent company of United Airlines, reported a marginal increase in its Dec 2014 traffic.
|
8474.0
|
2015-01-09 00:00:00 UTC
|
Delta's December Traffic Up on Holiday Season Demand - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/deltas-december-traffic-up-on-holiday-season-demand-analyst-blog-2015-01-09
|
nan
|
nan
|
Delta Air Lines Inc. ( DAL ) witnessed considerable increase in air traffic in the month of December. Traffic - measured in revenue passenger miles (RPMs) - came in at 16.1 billion, up 2.1% from 15.78 billion recorded in the comparable month a year ago. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 4% to 19.26 billion. Meanwhile, the load factor or percentage of seats filled by passengers decreased to 83.7% in Dec 2014 from 85.2% in the year-ago month.
In fiscal 2014, Delta generated RPMs of 202.9 billion (up 4.1% year over year) and ASMs of 239.7 billion (up 3% year over year). Load factor was 84.7% against 83.8% last year. Likewise, passengers boarded in the month grew 2.4% while for the full year rose 4.1%.
However, Delta witnessed a 4.5% drop in PRASM (passenger revenue per available seat mile) in the month mainly driven by a significant increase in air travel during the holiday season.
Delta continues to perform impressively riding on new route launches, introduction of ancillary products, revamping of fleet structure and efficient customer service. Further, the company continues to deliver solid results through its joint venture and expects trans-Atlantic revenues and capacity to increase backed by the strength in the New York-London route.
Other Stocks to Consider
Delta Airlines currently sports a Zacks Rank #1 (Strong Buy), while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ) and Hawaiian Holdings Inc. ( HA ).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other Stocks to Consider Delta Airlines currently sports a Zacks Rank #1 (Strong Buy), while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, Delta witnessed a 4.5% drop in PRASM (passenger revenue per available seat mile) in the month mainly driven by a significant increase in air travel during the holiday season.
|
Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Delta Airlines currently sports a Zacks Rank #1 (Strong Buy), while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ) and Hawaiian Holdings Inc. ( HA ). Delta Air Lines Inc. ( DAL ) witnessed considerable increase in air traffic in the month of December.
|
Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Delta Airlines currently sports a Zacks Rank #1 (Strong Buy), while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ) and Hawaiian Holdings Inc. ( HA ). Traffic - measured in revenue passenger miles (RPMs) - came in at 16.1 billion, up 2.1% from 15.78 billion recorded in the comparable month a year ago.
|
Other Stocks to Consider Delta Airlines currently sports a Zacks Rank #1 (Strong Buy), while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Traffic - measured in revenue passenger miles (RPMs) - came in at 16.1 billion, up 2.1% from 15.78 billion recorded in the comparable month a year ago.
|
8475.0
|
2015-01-06 00:00:00 UTC
|
U.S. Airlines Squabble Over Slots in Tokyo: Round 4
|
AAL
|
https://www.nasdaq.com/articles/us-airlines-squabble-over-slots-tokyo-round-4-2015-01-06
|
nan
|
nan
|
In 2010, the United States and Japan agreed to allow a limited number of nonstop flights from the U.S. to Haneda Airport near Tokyo. Haneda is by far the closest airport to downtown Tokyo, but for more than three decades, all flights to the U.S. had to use the more distant Narita Airport.
According to the agreement between the U.S. and Japan, each country was allocated four slot pairs for flights between the U.S. and Haneda. (Each slot pair allows one daily roundtrip flight.) The slots for U.S. carriers were restricted to 10 p.m.-7 a.m.
U.S. airlines have vigorously pursued slots at Haneda Airport.
Despite this unusual constraint, numerous carriers including American Airlines , Delta Air Lines , United Continental , and Hawaiian Holdings have been interested in serving Haneda. Even today, these airlines continue to squabble over the limited slots for Haneda flights.
The initial competition
When the U.S. Department of Transportation opened the application process to divide up its four slot pairs, several carriers responded. Delta asked for all four slot pairs, in order to fly to Seattle, Detroit, Los Angeles, and Honolulu. American proposed daily flights to New York and Los Angeles. Hawaiian Airlines asked for slots to fly twice daily to Honolulu.
Lastly, United, Continental, and Continental Micronesia -- all of which are today part of United Continental -- requested slots for daily service to San Francisco, Newark, and Guam, respectively.
Delta received two Haneda slot pairs in the initial allocation, while United and Continental were left out in the cold.
Ultimately, the DOT gave two slots to Delta for flights to Detroit and Los Angeles, one slot to American to fly to New York, and one slot to Hawaiian to fly to Honolulu. It awarded these flights based on Honolulu, New York, and Los Angeles being the three top U.S. origin/destination cities for flights to Japan, and Detroit being a key connecting hub for travel between the eastern U.S. and Japan.
The drama begins
That could have been the end of the story, but operating successful service to Haneda was easier said than done. Airlines were interested in Haneda primarily because they thought business travelers would enjoy the convenience of flying to an airport closer to Tokyo. But while the location was convenient, the flight times were the very opposite.
Airlines found the 10 p.m.-7 a.m. window for arrivals and departures at Haneda to be particularly problematic for flights to the eastern U.S. Delta delayed the start of its service to Detroit, temporarily suspended it, asked for a waiver of the "use it or lose it" rules for the Haneda slots, and ultimately canceled the flight.
In mid-2012, Delta requested permission to instead fly from Seattle to Haneda, seeing that West Coast service to Haneda was performing better. However, the DOT solicited a new round of applications. United again proposed San Francisco, American again proposed Los Angeles, and Hawaiian proposed Kona (on Hawaii's Big Island, in lieu of a second daily flight to Honolulu). Ultimately, Delta won that round in early 2013.
Another bump in the road
Later in 2013, American Airlines decided to call it quits on its New York-Haneda route. Like Delta, American had delayed the start of service, suspended the route for a while , and even lobbied to loosen the restrictions on flight times at Haneda. None of these efforts offered a long-term solution, so American simply opted to give up its lone Haneda slot .
American Airlines' New York-Haneda route was a big money-loser. Photo source: American Airlines.
With American out of the running -- and Delta now satisfied with its Haneda slot holdings -- the DOT had to choose between two applications: United again proposed flying to San Francisco and Hawaiian again proposed Kona. This time, United finally got its chance to serve Haneda, and it inaugurated service in October 2014.
Time for round 4!
Recently, Delta, American, and Hawaiian have squared off for a fourth time. Delta's Seattle-Haneda flights have been only slightly more successful than its flights to Detroit. As a result, Delta dropped the route for nearly the entirety of the weaker fall and winter seasons, announcing plans to operate the route seasonally going forward .
American Airlines complained to the DOT in early October, arguing that the route should be awarded to an airline willing to operate year-round service. Despite the failure of its route from New York to Haneda, American Airlines wants to fly from Los Angeles to Haneda. Hawaiian later chimed in, also opposing Delta's seasonal flights.
The DOT has reopened bidding yet again. On Monday, American Airlines announced that it had applied for year-round service between Los Angeles and Haneda, while Hawaiian Airlines put in its third application for rights to fly year-round from Haneda to Kona.
Hawaiian Airlines is again seeking a second slot pair so it can fly from Haneda to Kona. Photo source: Wikimedia Commons .
Will the fourth time be the charm for Hawaiian Airlines?
Hawaiian Airlines has always faced an uphill battle in its efforts to get a second slot pair at Haneda Airport. With only four slot pairs available, the DOT has understandably looked to promote nonstop service from major mainland hubs to Haneda.
However, this is Hawaiian's best shot yet. It is proposing daily year-round service with a 294-seat A330, which would represent a more efficient use of the slots than Delta's seasonal service with a smaller 767-300 aircraft.
Furthermore, American's proposed route to Los Angeles would be the third Haneda-LAX route (joining flights by Delta and ANA). Los Angeles also has plentiful service to Narita Airport. By contrast, Hawaiian's proposed flights to Kona would be the only international service at Kona, bringing new tourists to Hawaii and potentially creating more than 1,000 jobs.
The DOT may still opt for either Delta or American in order to bolster competition for flights between the top West Coast hubs and Haneda. Nevertheless, Hawaiian Airlines has made a compelling case for getting a second slot pair at Haneda, based on its proven success on the Haneda-Honolulu route.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article U.S. Airlines Squabble Over Slots in Tokyo: Round 4 originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of Hawaiian Holdings, The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Despite this unusual constraint, numerous carriers including American Airlines , Delta Air Lines , United Continental , and Hawaiian Holdings have been interested in serving Haneda. Like Delta, American had delayed the start of service, suspended the route for a while , and even lobbied to loosen the restrictions on flight times at Haneda. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
Despite this unusual constraint, numerous carriers including American Airlines , Delta Air Lines , United Continental , and Hawaiian Holdings have been interested in serving Haneda. Ultimately, the DOT gave two slots to Delta for flights to Detroit and Los Angeles, one slot to American to fly to New York, and one slot to Hawaiian to fly to Honolulu. United again proposed San Francisco, American again proposed Los Angeles, and Hawaiian proposed Kona (on Hawaii's Big Island, in lieu of a second daily flight to Honolulu).
|
Ultimately, the DOT gave two slots to Delta for flights to Detroit and Los Angeles, one slot to American to fly to New York, and one slot to Hawaiian to fly to Honolulu. Airlines found the 10 p.m.-7 a.m. window for arrivals and departures at Haneda to be particularly problematic for flights to the eastern U.S. Delta delayed the start of its service to Detroit, temporarily suspended it, asked for a waiver of the "use it or lose it" rules for the Haneda slots, and ultimately canceled the flight. On Monday, American Airlines announced that it had applied for year-round service between Los Angeles and Haneda, while Hawaiian Airlines put in its third application for rights to fly year-round from Haneda to Kona.
|
Hawaiian Airlines asked for slots to fly twice daily to Honolulu. Despite the failure of its route from New York to Haneda, American Airlines wants to fly from Los Angeles to Haneda. Hawaiian Airlines is again seeking a second slot pair so it can fly from Haneda to Kona.
|
8476.0
|
2015-01-05 00:00:00 UTC
|
Weekly 52-Week Highs Highlight: CFN, AAL, CUK, SHW, GGP
|
AAL
|
https://www.nasdaq.com/articles/weekly-52-week-highs-highlight-cfn-aal-cuk-shw-ggp-2015-01-05
|
nan
|
nan
|
According to GuruFocus' list of 52-week highs , CareFusion Corp, American Airlines Group Inc, Carnival PLC, Sherwin Williams Co, and General Growth Properties Inc. have all reached their 52-week highs.
CareFusion Corp ( CFN ) Reached the 52-Week High of $59.51
Carefusion Corp has a market cap of $12.12 billion; its shares were traded at around $59.51 with a P/E ratio of 30.20 and P/S ratio of 3.20. Carefusion Corp had an annual average earnings growth of 8.50% over the past 5 years.
CareFusion has reported its fiscal first quarter 2015 results, with revenue increasing 11% to $922 million, and adjusted diluted EPS from continuing operations improving 14% to $0.50.
Warren Buffett Recent Buys
President, Medical Systems Thomas J Leonard sold 25,000 shares of CFN stock on 12/15/2014 at the average price of $58.87.
American Airlines Group Inc ( AAL ) Reached the 52-Week High of $53.88
American Airlines Group Inc, formerly known as AMR Corp was incorporated in October 1982 and operates in the airline industry. The company has a market cap of $38.45 billion; its shares were traded at around $53.88 with and P/S ratio of 0.10. The dividend yield of American Airlines Group Inc stocks is 0.40%.
American Airlines reported a third quarter 2014 net profit excluding special charges of $1.2 billion, 59% higher than the same quarter in 2013. The company repurchased $113 million of common stock during the quarter and generated revenue of $11.1 billion, 4.4% higher than the year-ago period.
Carnival PLC ( CUK ) Reached the 52-Week High of $45.25
Carnival PLC has a market cap of $36.37 billion; its shares were traded at around $45.25 with a P/E ratio of 30.90 and P/S ratio of 2.40. The dividend yield of Carnival PLC stocks is 2.20%. The company had an annual average earnings growth of 0.70% over the past 10 years.
Carnival PLC reported third quarter 2014 diluted EPS of $1.60 and total revenue of $4.95 billion.
Sherwin-Williams Co ( SHW ) Reached the 52-Week High of $261.66
Sherwin-Williams Co has a market cap of $25.18 billion; its shares were traded at around $261.66 with a P/E ratio of 30.60 and P/S ratio of 2.40. The dividend yield of Sherwin-Williams Co stocks is 0.80% and the company had an annual average earnings growth of 8.50% over the past 10 years. GuruFocus rated Sherwin-Williams Co the business predictability rank of 5-star.
The company has released its third quarter 2014 results. For this quarter, consolidated net sales increased 10.6% to $3.15 billion and diluted net income per share increased 31.4% to $3.35.
Director David F Hodnik sold 1,000 shares of SHW stock on 12/15/2014 at the average price of $245.55.
General Growth Properties Inc ( GGP ) Reached the 52-Week High of $28.74
General Growth Properties Inc is engaged in the operation, development and management of retail and other rental properties, primarily regional malls. It has a market cap of $25.04 billion and its shares were traded at around $28.74 with a P/E ratio of 62.50 and P/S ratio of 10.30. The dividend yield of General Growth Properties Inc stocks is 2.20%.
GGP reported third quarter Company FFO per share of $0.33 and net income of $75 million, as compared to $0.29 and $27 million respectively in the same quarter of last year.
Check out the complete list of 52-Week Highs.
About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group Inc ( AAL ) Reached the 52-Week High of $53.88 American Airlines Group Inc, formerly known as AMR Corp was incorporated in October 1982 and operates in the airline industry. CareFusion has reported its fiscal first quarter 2015 results, with revenue increasing 11% to $922 million, and adjusted diluted EPS from continuing operations improving 14% to $0.50. Warren Buffett Recent Buys President, Medical Systems Thomas J Leonard sold 25,000 shares of CFN stock on 12/15/2014 at the average price of $58.87.
|
American Airlines Group Inc ( AAL ) Reached the 52-Week High of $53.88 American Airlines Group Inc, formerly known as AMR Corp was incorporated in October 1982 and operates in the airline industry. According to GuruFocus' list of 52-week highs , CareFusion Corp, American Airlines Group Inc, Carnival PLC, Sherwin Williams Co, and General Growth Properties Inc. have all reached their 52-week highs. CareFusion Corp ( CFN ) Reached the 52-Week High of $59.51 Carefusion Corp has a market cap of $12.12 billion; its shares were traded at around $59.51 with a P/E ratio of 30.20 and P/S ratio of 3.20.
|
American Airlines Group Inc ( AAL ) Reached the 52-Week High of $53.88 American Airlines Group Inc, formerly known as AMR Corp was incorporated in October 1982 and operates in the airline industry. According to GuruFocus' list of 52-week highs , CareFusion Corp, American Airlines Group Inc, Carnival PLC, Sherwin Williams Co, and General Growth Properties Inc. have all reached their 52-week highs. CareFusion Corp ( CFN ) Reached the 52-Week High of $59.51 Carefusion Corp has a market cap of $12.12 billion; its shares were traded at around $59.51 with a P/E ratio of 30.20 and P/S ratio of 3.20.
|
American Airlines Group Inc ( AAL ) Reached the 52-Week High of $53.88 American Airlines Group Inc, formerly known as AMR Corp was incorporated in October 1982 and operates in the airline industry. According to GuruFocus' list of 52-week highs , CareFusion Corp, American Airlines Group Inc, Carnival PLC, Sherwin Williams Co, and General Growth Properties Inc. have all reached their 52-week highs. Sherwin-Williams Co ( SHW ) Reached the 52-Week High of $261.66 Sherwin-Williams Co has a market cap of $25.18 billion; its shares were traded at around $261.66 with a P/E ratio of 30.60 and P/S ratio of 2.40.
|
8477.0
|
2015-01-02 00:00:00 UTC
|
Delta Gains on Solid Q3, Estimate Revisions - Hits New High - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/delta-gains-on-solid-q3-estimate-revisions-hits-new-high-analyst-blog-2015-01-02
|
nan
|
nan
|
Shares of leading passenger and cargo carrier, Delta Air Lines Inc. ( DAL ), hit a new 52-week high of $50.16 on Dec 31, 2014, finally ending the session slightly lower at $49.19. The company's shares have gained 78% in the past one year.
Fuel costs comprise nearly 30% of the total operating expenses incurred by airline companies. Since June this year, crude oil prices have gone down by 30%, translating into impressive profits garnered by airline stocks in the third quarter of 2014.
Ever since the company announced robust third-quarter earnings on Oct 16, shares have jumped 48%. Delta reported adjusted earnings of $1.20 per share in the quarter, edging past the Zacks Consensus Estimate of $1.18. Operating revenues increased 7% year over year to $11.2 billion, in line with the Zacks Consensus Estimate. Notably, in all of the last four quarters, the company's earnings have surpassed the Zacks Consensus Estimate, with an average beat of 4.9%.
Additionally, earnings estimate revisions have also exhibited a positive trend. In the past 90 days, the company has witnessed positive estimate revisions for the current year leading to the Zacks Consensus Estimate moving up by 2.2% to $3.30.
We expect Delta to perform impressively on various strategic measures such as solid domestic demand, route launches, introduction of ancillary products, revamping of fleet structure and efficient customer service. Further, Delta continues to deliver solid results through its joint venture and expects trans-Atlantic revenues and capacity to increase owing to strength in the New York-London route.
Delta is also progressing well on improving ancillary revenues by adding features to its services and introducing products to improve passenger satisfaction and experience, both in air and on ground. In an attempt to enhance its fleet structure, amenities, products and technological base, Delta aims to invest $2.0-$3.0 billion per year.
Zacks Rank
Delta currently has a Zacks Rank #1 (Strong Buy). Some other airline stocks that warrant a look are Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ) and SkyWest Inc. ( SKYW ). All these stocks sport the same rank as Delta.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DELTA AIR LINES (DAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
SKYWEST INC (SKYW): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Some other airline stocks that warrant a look are Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ) and SkyWest Inc. ( SKYW ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of leading passenger and cargo carrier, Delta Air Lines Inc. ( DAL ), hit a new 52-week high of $50.16 on Dec 31, 2014, finally ending the session slightly lower at $49.19.
|
Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Some other airline stocks that warrant a look are Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ) and SkyWest Inc. ( SKYW ). Operating revenues increased 7% year over year to $11.2 billion, in line with the Zacks Consensus Estimate.
|
Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Some other airline stocks that warrant a look are Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ) and SkyWest Inc. ( SKYW ). Delta reported adjusted earnings of $1.20 per share in the quarter, edging past the Zacks Consensus Estimate of $1.18.
|
Some other airline stocks that warrant a look are Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ) and SkyWest Inc. ( SKYW ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta reported adjusted earnings of $1.20 per share in the quarter, edging past the Zacks Consensus Estimate of $1.18.
|
8478.0
|
2015-01-02 00:00:00 UTC
|
Southwest Airlines Hits a 52-Week High on Low Oil Costs - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/southwest-airlines-hits-a-52-week-high-on-low-oil-costs-analyst-blog-2015-01-02
|
nan
|
nan
|
Southwest Airlines Co. ( LUV ) - a leading low-cost U.S. airline - hit a new 52-week high of $43.19 on Dec 3, eventually closing a trifle lower at $42.32. This reflects a solid one-year return of 130%.
The overall airline industry is having a dream run buoyed by lower fuel costs. Moreover, increased air travels, especially during the holiday season, will act as a growth catalyst. In addition, the complete integration of AirTran in 2014 will provide substantial growth opportunities for Southwest Airlines.
Successful execution of strategic initiatives has helped Southwest Airlines generate record profits for the fifth consecutive quarter with airline traffic increasing 5.6% year over year to 28.52 billion in the third quarter. Management also decided to raise capacity by 6% in 2015, to meet the rising demand. Winning of slots and expansion of operations at the Reagan and LaGuardia airports will further boost its capacity and network presence.
Southwest Airlines is also progressing well on improving ancillary revenues by enhancing its services as well as introducing products to increase passenger satisfaction and experience, both on board and on ground. Recently, the company started offering Beats Music service to flyers on Wi-Fi which we believe will further enrich the in-flight entertainment quotient.
Notably, over the past one year, Southwest Airlines has reported impressive quarterly numbers. In all of the last four quarters, the company has surpassed the Zacks Consensus Estimate, with an average earnings beat of 12.22%, including a positive surprise of 3.77% in the recently concluded quarter. Over the past 90 days, the company has witnessed upward earnings estimate revisions for the current year which raised the Zacks Consensus Estimate by 22.7% to 54 cents.
Hence, we believe that such favorable factors like solid domestic demand, strong customer service and revamping its fleet structure will continue to drive the Southwest Airlines stock, going forward.
Other Stocks to Consider
Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy). Some other airline stocks which warrant a look are Delta Air Lines, Inc. ( DAL ), Hawaiian Holdings Inc. ( HA ) and American Airlines Group Inc. ( AAL ). All these stocks have the same Zacks Rank as Southwest Airlines.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Some other airline stocks which warrant a look are Delta Air Lines, Inc. ( DAL ), Hawaiian Holdings Inc. ( HA ) and American Airlines Group Inc. ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Southwest Airlines is also progressing well on improving ancillary revenues by enhancing its services as well as introducing products to increase passenger satisfaction and experience, both on board and on ground.
|
Some other airline stocks which warrant a look are Delta Air Lines, Inc. ( DAL ), Hawaiian Holdings Inc. ( HA ) and American Airlines Group Inc. ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Some other airline stocks which warrant a look are Delta Air Lines, Inc. ( DAL ), Hawaiian Holdings Inc. ( HA ) and American Airlines Group Inc. ( AAL ). Successful execution of strategic initiatives has helped Southwest Airlines generate record profits for the fifth consecutive quarter with airline traffic increasing 5.6% year over year to 28.52 billion in the third quarter.
|
Some other airline stocks which warrant a look are Delta Air Lines, Inc. ( DAL ), Hawaiian Holdings Inc. ( HA ) and American Airlines Group Inc. ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, over the past one year, Southwest Airlines has reported impressive quarterly numbers.
|
8479.0
|
2015-01-02 00:00:00 UTC
|
An Investor's Guide: Market-Leading Industries In 2014
|
AAL
|
https://www.nasdaq.com/articles/investors-guide-market-leading-industries-2014-2015-01-02
|
nan
|
nan
|
At this time a year ago, the world was gearing up for the Winter Olympics in Sochi, Russia.
Few things put in perspective the contrast experienced by global markets in 2014 like the vast squandering of political capital that followed the Sochi Games and sent President Vladimir Putin's economy into a desperate recession.
Beyond Russia and Ukraine came the rise of ISIS in Iraq, of Ebola in West Africa and of the worldwide oil glut.
The passing of the Federal Reserve's helm from Ben Bernanke to Janet Yellen, and the shift from quantitative easing to an impending interest rate increase, kept worldwide stock, bond and currency markets in upheaval.
Mending U.S. economic growth played against Europe's struggle under the weight of sanctions against Russia.
India's market rallied on hopes fueled by a new prime minister.
And Chinese regulators deftly fought to manage of the country's conversion from export dependence to a consumer-fueled economy.
In the U.S., an 11% gain for the S&P 500 and 13% boost for the Nasdaq were a third of 2013's advance and only slightly below their growth levels in 2012.
Among industries, airline stocks, video game developers and security software providers turned in some of the year's best gains.
The common theme: All were hit hard, then recovered, from heart-stopping sell-offs at different points during the year.
Retailers of consumer electronics and ore miners were among the year's worst losers.
Oil and natural gas-related industries -- among the biggest winners in 2013's powerful rally -- collapsed as sloshing global oil production drove prices down 46% from June to December.
As they plummeted from their highs, oil and natural gas industries posted seven of the year's 10 worst declines among groups.
Below is a breakdown of what drove some of the most dramatic action, as well as a rundown of which groups showed acceleration toward the end of the year. The charts to the right provide quarter-by-quarter breakdowns of the year's winners, as well as the top gaining and losing industries.
Airlines
Air carriers entered 2014 with high expectations. Consolidation led to increased control of capacity. Ancillary fees for checked and overhead bags, as well as in-flight perks and other charges, had bolstered flagging profits. At the same time, the gradually upticking U.S. economy was freeing more consumers to travel.
The International Air Transport Association estimated, in December 2013, that industry profits would rise to $19.7 billion in 2014, up 50% vs. 2013 levels.
The Economist magazine said airline margins were forecast at 2.6% in 2014 -- still razor thin, yet double 2013's levels.
The wild card was oil, the source for jet fuel. Prices for the fuel -- kerosene, which generally comprises a third of most airlines' costs -- started declining with oil in June.
The sliding fuel costs helped push the stocks, as a group, up 48% through early September.
They turned down and dived more than 20% in September and October as a limited number of Ebola virus cases in America raised concerns that air travel would suffer. The scare subsided. Oil prices continued to decline.
The group rebounded and powered up to an 87% gain for the year, the top advance among IBD's 197 industry groups.
Hawaiian Holdings ( HA ),Southwest Airlines ( LUV ) andAmerican Airlines ( AAL ) posted the group's three top gains, up 170%, 125% and 112%, respectively. The industry received a late boost fromVirgin America ( VA ), which went public in November and ended the year 88% above its IPO price.
Software
The software industry began the year as a top-ranked sector. But a change in attitude among venture capitalists dragged even leading groups into the ditch.
Developers of video game software collectively took a 52% gain for the year. That was after recovering from a 21% sell-off from July through mid-October.
Electronic Arts ( EA ) led the group with a 105% gain, claiming the top publisher's position for games on both Microsoft's Xbox and Sony's Playstation 4.Take-Two Interactive Software (TTWO) posted the industry's second best stock advance, up 61% for the year.
Internet data breaches were one of the year's top stories, helping the security software makers group end the year up 31%.
That included a startling 36% correction in March and April. LeaderVasco Data Security (VDSI) traded sideways through the mayhem, logging a 265% gain for the year.
Palo Alto Networks (PANW) fell 29% from late March to mid-May. It recovered to close the year with a 113% gain.
Drugmakers
As traditional drug categories became increasing blurred by industry consolidation, IBD's three drugmaker industry groups posted winning gains. Ethical-drug stocks closed the year ahead 45%. Generic-drug firms seized a 33% gain.
Ethical-drug makerAllergan (AGN) surged 91% and generic-drug playMallinckrodt (MNK) swept ahead 90%. Biotechs had a brutally mixed year, rising 41% as a group, although scores of small drugmakers collapsed 50% or more. Group leadersCelgene (CELG),Biogen Idec (BIIB) andActavis (ACT) rose 32%, 21% and 53%, respectively.
Late-Year Sprinters
In the last four weeks of December, drugstores, grocery stores and diversified operators posted the strongest gains among industries.
All three groups attract attention as defensive plays in dicey markets. In this case, two of the three major pharmacy chains are rebounding from deep corrections.
While grocery stocks are showing strength, the group has received a serious boost fromPantry (PTRY). The convenience store/gas station operator gained 40% in December after Quebec-based Couche-Tard said it would purchase the chain for $863 million.
Office supplies retailers, not a defensive group, also were among the top five industry advances in December. This was largely a function of hedge fund Starboard Value, which announced large stakes inOffice Depot (ODP) andStaples (SPLS) on Dec. 11, sending both stocks soaring.
Behind those groups, airlines, hospitals, outsourcing operators and plastic producers made strong year-end runs.
At the weak end of the scale, oil prices continued to feel for new lows, but oil and natural gas-related groups were only three of the 10 worst industry losses in the last four weeks of the year.
Other industries sagging into the year-end included steel makers, ore miners, meat producers and consumer-electronic retailers.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Hawaiian Holdings ( HA ),Southwest Airlines ( LUV ) andAmerican Airlines ( AAL ) posted the group's three top gains, up 170%, 125% and 112%, respectively. Few things put in perspective the contrast experienced by global markets in 2014 like the vast squandering of political capital that followed the Sochi Games and sent President Vladimir Putin's economy into a desperate recession. The passing of the Federal Reserve's helm from Ben Bernanke to Janet Yellen, and the shift from quantitative easing to an impending interest rate increase, kept worldwide stock, bond and currency markets in upheaval.
|
Hawaiian Holdings ( HA ),Southwest Airlines ( LUV ) andAmerican Airlines ( AAL ) posted the group's three top gains, up 170%, 125% and 112%, respectively. Among industries, airline stocks, video game developers and security software providers turned in some of the year's best gains. Oil and natural gas-related industries -- among the biggest winners in 2013's powerful rally -- collapsed as sloshing global oil production drove prices down 46% from June to December.
|
Hawaiian Holdings ( HA ),Southwest Airlines ( LUV ) andAmerican Airlines ( AAL ) posted the group's three top gains, up 170%, 125% and 112%, respectively. The group rebounded and powered up to an 87% gain for the year, the top advance among IBD's 197 industry groups. Electronic Arts ( EA ) led the group with a 105% gain, claiming the top publisher's position for games on both Microsoft's Xbox and Sony's Playstation 4.Take-Two Interactive Software (TTWO) posted the industry's second best stock advance, up 61% for the year.
|
Hawaiian Holdings ( HA ),Southwest Airlines ( LUV ) andAmerican Airlines ( AAL ) posted the group's three top gains, up 170%, 125% and 112%, respectively. In the U.S., an 11% gain for the S&P 500 and 13% boost for the Nasdaq were a third of 2013's advance and only slightly below their growth levels in 2012. The group rebounded and powered up to an 87% gain for the year, the top advance among IBD's 197 industry groups.
|
8480.0
|
2015-01-02 00:00:00 UTC
|
Alaska Air Group Hits 52-Week High on Estimate Revisions - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/alaska-air-group-hits-52-week-high-on-estimate-revisions-analyst-blog-2015-01-02
|
nan
|
nan
|
Alaska Air Group ( ALK ), the holding company of Alaska Airlines, has had a fruitful 2014 like many of its peers in the airline space. The carrier attained a 52-week high of $60.94 on the last trading day of the year. The stock cooled off a little ending the Dec 31 session at $59.76.
Shares of this Zacks Rank #2 (Buy) company have surged by over 60% in 2014. The bullish run is expected to continue in 2015 as well. The company had delivered better-than-expected earnings in the third quarter of 2014. With that, the company outperformed the Zacks Consensus Estimate for the fourth consecutive quarter, with the average positive earnings surprise coming in at 5.1%.
Consequently, estimates for 2015 are on the rise. The Zacks Consensus Estimate for 2015 currently stands at $5.15 per share, up 25.78% from the estimated 2014 figure ($4.09).
The company also received favorable news on the labor front in the final month of the year with the flight attendants of Alaska Airlines approving a 5-year labor contract. The contract has been ratified following 3 years of negotiations between the flight attendants and management (read more: Alaska Airlines Crew Approve 5-Year Labor Contract ).
We are also encouraged by the expansion efforts of this Seattle, WA-based company. Alaska Airlines recently announced a customer friendly move, applicable for the entire month of January. The carrier announced that members of its award winning frequent flier program - Alaska Airlines Mileage Plan - will be able to have one of their bags checked in for free. The carrier further stated that in January, even non-mileage plan members can sign up for the program online (without incurring any additional cost), ahead of their trip or even at the airport prior to getting their bags checked.
We believe that Alaska Air Group will continue its impressive performance in 2015, riding high on the favorable conditions prevailing in the airline industry courtesy weak oil prices .
Zacks Rank
Some other stocks worth reckoning in the airline space are Delta Air Lines, Inc. ( DAL ), American Airlines Group Inc. ( AAL ) and JetBlue Airways Corp. ( JBLU ). All the three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Zacks Rank Some other stocks worth reckoning in the airline space are Delta Air Lines, Inc. ( DAL ), American Airlines Group Inc. ( AAL ) and JetBlue Airways Corp. ( JBLU ). Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier announced that members of its award winning frequent flier program - Alaska Airlines Mileage Plan - will be able to have one of their bags checked in for free.
|
Zacks Rank Some other stocks worth reckoning in the airline space are Delta Air Lines, Inc. ( DAL ), American Airlines Group Inc. ( AAL ) and JetBlue Airways Corp. ( JBLU ). Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company also received favorable news on the labor front in the final month of the year with the flight attendants of Alaska Airlines approving a 5-year labor contract.
|
Zacks Rank Some other stocks worth reckoning in the airline space are Delta Air Lines, Inc. ( DAL ), American Airlines Group Inc. ( AAL ) and JetBlue Airways Corp. ( JBLU ). Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air Group ( ALK ), the holding company of Alaska Airlines, has had a fruitful 2014 like many of its peers in the airline space.
|
Zacks Rank Some other stocks worth reckoning in the airline space are Delta Air Lines, Inc. ( DAL ), American Airlines Group Inc. ( AAL ) and JetBlue Airways Corp. ( JBLU ). Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. With that, the company outperformed the Zacks Consensus Estimate for the fourth consecutive quarter, with the average positive earnings surprise coming in at 5.1%.
|
8481.0
|
2014-12-31 00:00:00 UTC
|
Are Airline Stocks a Great Way to Play Low Oil Prices?
|
AAL
|
https://www.nasdaq.com/articles/are-airline-stocks-great-way-play-low-oil-prices-2014-12-31
|
nan
|
nan
|
This Christmas has been a good one to many in the market. After a lull earlier in the month, stocks roared back to record highs last week, and low gas prices along with an improving job market have also been a boon to retailers in the all-important holiday shopping season. According to MasterCard , retail sales from Black Friday improved by 5.5% over a year ago, with spending on services growing faster than spending on goods. But of all of the players out there, perhaps no one has benefited more from low oil prices than the airline industry.
Indeed, airline stocks have surged as oil prices have fallen. Since Oct. 13, when the market bottomed out, United Continental is up 62%, DeltaAir Lines has gained 59%, and American Airlines has soared 82%. Meanwhile, oil prices are down by more than a third. Analysts have also significantly lifted next year's earnings estimates across the industry. United is now expected to make a per-share profit of $8.27, versus an estimate of $5.95 90 days ago, while the other airlines have seen similar jumps. Additionally, United's earnings are seen jumping more than 60% next year despite revenue remaining flat, owing almost entirely to the drop in fuel prices, which is clearly having a major impact on airline economics. Let's take a closer look at what it means.
This is some serious savings
The three major airlines above will use about 4 billion gallons of jet fuel each in 2014. In previous years, that fuel consumption accounted for $12 billion to $13 billion in annual expenses, or about a third of total operating expenses, as jet fuel prices have fluctuated between $3.06 and $3.27 per gallon. Fuel is the airlines' largest expense. After trading close to $3 for most of the year, the price of jet fuel is now just $1.66,, or close to half of what it's been in recent years. If it remains around this level next year, airlines will be able to potentially cut their operating expenses by about 16%. For an industry that is known for operating at a loss, or at very slim profit margins, that difference is huge. United, for example, could have saved as much $6 billion last year, giving it a profit of $6.5 billion, instead of $571 million.
Hedging strategies employed by Delta and United -- but not American -- will cut into this benefit, but the savings will still be worth billions of dollars if prices remain this low.
So will airfares ever come down?
In a functioning free market economy, lower commodity prices should lead to lower consumer-level prices due to competition. However, the airline industry has been slow to react to this sudden shift in economics.
There are a number of reasons for this. First, the airlines have not yet received the full benefit of the price drop as the low prices are working their way through the production pipeline -- i.e., fuel consumed today was purchased months ago -- and due to hedging effects, which mitigate the benefit from the price change. Second, this industry has survived countless bankruptcies, which have chastened operators. Before passing along savings to consumers, they are likely to take the opportunity to shore up their own financial position by paying off debt and making investments in their businesses. American Airlines recently announced that employees would get a 4% raise above their union contract, for example. Finally, after several mergers, the four major airlines -- Southwest, United, American, and Delta -- control 80% of the market, so competition within the industry is much lower than it used to be. Tellingly, the major airlines have said they would not expand capacity, a conservative move designed to prevent industry overcapacity and empty seats, a problem that has long plagued the airlines.
That discipline should benefit investors, even if it comes at the expense of disgruntled passengers.
Will the stocks keep flying higher?
Senator Chuck Schumer recently called for an investigation into the airlines' refusal to lower fares, but the probe is unlikely to gain traction . The major reason is that a healthy and profitable airline industry free of bankruptcies and government bailouts is in the public interest. Perhaps airlines are being stingy with their fuel savings, but as American Airline's decision to raise wages shows, they will use the savings in one way or another. How they do so is up to them to determine.
That's a good sign that the stocks will continue to move higher. The ultimate determinant, of course, will be oil prices, and no one truly knows where those will go, though the Energy Information Administration and other agencies predict low prices through next year as booming U.S. supply and OPEC's decision not to cut production should help keep crude prices down. Based on next year's earnings, airline stocks look dirt cheap. United trades at a forward P/E of 7.9 while American's multiple is just 6. By contrast, the P/E for the S&P 500 is currently 20. The windfall profits may be temporary, but a number of other factors favor the industry's future, such as decreased competition, improved operating capacity, and a consumer with more discretionary income, thanks to the improving economy. I'd say that's enough reason to bet on airlines outperforming again in 2015.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Are Airline Stocks a Great Way to Play Low Oil Prices? originally appeared on Fool.com.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of MasterCard. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
After a lull earlier in the month, stocks roared back to record highs last week, and low gas prices along with an improving job market have also been a boon to retailers in the all-important holiday shopping season. Additionally, United's earnings are seen jumping more than 60% next year despite revenue remaining flat, owing almost entirely to the drop in fuel prices, which is clearly having a major impact on airline economics. Hedging strategies employed by Delta and United -- but not American -- will cut into this benefit, but the savings will still be worth billions of dollars if prices remain this low.
|
In previous years, that fuel consumption accounted for $12 billion to $13 billion in annual expenses, or about a third of total operating expenses, as jet fuel prices have fluctuated between $3.06 and $3.27 per gallon. In a functioning free market economy, lower commodity prices should lead to lower consumer-level prices due to competition. Finally, after several mergers, the four major airlines -- Southwest, United, American, and Delta -- control 80% of the market, so competition within the industry is much lower than it used to be.
|
Additionally, United's earnings are seen jumping more than 60% next year despite revenue remaining flat, owing almost entirely to the drop in fuel prices, which is clearly having a major impact on airline economics. First, the airlines have not yet received the full benefit of the price drop as the low prices are working their way through the production pipeline -- i.e., fuel consumed today was purchased months ago -- and due to hedging effects, which mitigate the benefit from the price change. The ultimate determinant, of course, will be oil prices, and no one truly knows where those will go, though the Energy Information Administration and other agencies predict low prices through next year as booming U.S. supply and OPEC's decision not to cut production should help keep crude prices down.
|
Additionally, United's earnings are seen jumping more than 60% next year despite revenue remaining flat, owing almost entirely to the drop in fuel prices, which is clearly having a major impact on airline economics. Hedging strategies employed by Delta and United -- but not American -- will cut into this benefit, but the savings will still be worth billions of dollars if prices remain this low. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
|
8482.0
|
2014-12-30 00:00:00 UTC
|
Southwest Airlines Sees Off Last AirTran Flight, Takes Control - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/southwest-airlines-sees-off-last-airtran-flight-takes-control-analyst-blog-2014-12-30
|
nan
|
nan
|
Dallas-based Southwest Airlines Co. ( LUV ), which purchased AirTran Airways in 2011, has nearly completed the integration process with the departure of the latter's final flight (Flight 1) from Atlanta to Tampa, FL. The flight departed from the Hartsfield-Jackson International Airport for the Tampa Bay International airport at 10.25 p.m on Dec 28.
Several employees of Southwest, as well as those of the erstwhile AirTran, were on board this historic flight. The flight had a total of 117 passengers. Many more gathered at Tampa to receive the flight that marked the end of an era of successful customer service by AirTran.
The historic last flight was reminiscent of AirTran's first commercial flight that flew on the same route 21 years ago. Southwest Airlines has expanded significantly following the acquisition of AirTran by taking over many routes formerly operated by AirTran.
With the integration process of the AirTran-Southwest Airlines merger almost over, we believe all eyes will now be set on the integration process of the merger between American Airlines and U.S. Airways. The merger, completed in late 2013, led to the formation of the American Airlines Group ( AAL ). American Airlines and U.S. Airways still operate as separate entities. The integration process recently got a push when a contract covering the flight attendants of American Airlines and U.S. Airways was finalized.
We believe that merger-driven consolidation has played an important role in the airline industry, limiting competition. Moreover, operating efficiencies have also largely improved following mergers by airline companies. According to a report in the Associated Press, following the mergers in the industry, more than 80% of the travel market in the U.S. is now being dominated by four major carriers -- United Continental Holdings, Inc. ( UAL ), Delta Air Lines, Inc. ( DAL ), Southwest Airlines and American Airlines Group.
Zacks Rank
Southwest Airlines carries a Zacks Rank #1 (Strong Buy). An equally highly ranked stock in the airline space is Delta Air Lines.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The merger, completed in late 2013, led to the formation of the American Airlines Group ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Many more gathered at Tampa to receive the flight that marked the end of an era of successful customer service by AirTran.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The merger, completed in late 2013, led to the formation of the American Airlines Group ( AAL ). According to a report in the Associated Press, following the mergers in the industry, more than 80% of the travel market in the U.S. is now being dominated by four major carriers -- United Continental Holdings, Inc. ( UAL ), Delta Air Lines, Inc. ( DAL ), Southwest Airlines and American Airlines Group.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The merger, completed in late 2013, led to the formation of the American Airlines Group ( AAL ). Dallas-based Southwest Airlines Co. ( LUV ), which purchased AirTran Airways in 2011, has nearly completed the integration process with the departure of the latter's final flight (Flight 1) from Atlanta to Tampa, FL.
|
The merger, completed in late 2013, led to the formation of the American Airlines Group ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Dallas-based Southwest Airlines Co. ( LUV ), which purchased AirTran Airways in 2011, has nearly completed the integration process with the departure of the latter's final flight (Flight 1) from Atlanta to Tampa, FL.
|
8483.0
|
2014-12-29 00:00:00 UTC
|
Why the Dow Jones Industrials Weren't the Best Place to Invest in 2014
|
AAL
|
https://www.nasdaq.com/articles/why-dow-jones-industrials-werent-best-place-invest-2014-2014-12-29
|
nan
|
nan
|
^DJI data by YCharts
Many people don't realize there is more than one Dow average, especially since the broad Industrial Average includes stocks from sectors ranging from industry to consumergoods to technology. Two other Dow averages look at more focused parts of the market, and both the Dow Jones Utilities and the Dow Jones Transports have this year dramatically outperformed the Industrials.
Why the Dows diverged
Utility stocks have soared more than 30% in 2014 for a very simple reason: interest rates again defied expectations. Coming into the year, most investors believed the Federal Reserve's gradual pullback from its quantitative easing program would cause long-term interest rates to rise, and rising interest rate environments tend to be bad for utility stocks. Because utilities don't have much opportunity for growth, most of the appeal for their stocks comes from their relatively high-dividend yields, and those dividends become relatively less attractive when bond yields rise. Yet interest rates remained low throughout the year, and long-term rates actually dropped substantially, falling from nearly 4% for the 30-year Treasury at the beginning of the year to about 2.75% as of today.
Source: Wikimedia Commons .
A number of favorable factors contributed to the Dow Transports' gain of nearly 25%. Airline stocks continued to press higher, with American Airlines Group more than doubling in 2014 and other major carriers posting gains that were nearly as strong. Rising strength in the economy heightened demand for air travel, and most carriers attempts' to reap additional profits from ancillary fees such as charging for baggage have taken permanent hold in the industry. Moreover, the plunge in oil prices has led to immense cost savings for airlines, and also for fuel-intensive railroads and trucking companies, all of which benefit when energy costs make it less expensive to carry on their operations.
Looking to 2015, the Dow Utilities' prospects don't necessarily look as favorable as they did this year. Interest rates have already fallen substantially, and the Fed has signaled its intent to start raising rates to more normal levels in the near future. Even if the economy slows, it's unlikely that long-term rates will fall substantially enough to produce a 30% gain again in 2015.
For the Transports, though, favorable fuel prices could bring continued gains well into the new year. If the broader economy gets a shot in the arm from lower gasoline prices that translate to more disposable income for consumers, then the companies that carry passengers and goods from place to place could benefit immensely if oil prices stay low for a while.
A nearly 10% gain for the Dow Jones Industrials is nothing to be disappointed about. But the outperformance from the Dow Transports and Dow Utilities is a good reminder that looking around for the highest-potential opportunities is always a smart move.
1 great stock to buy for 2015 and beyond
Outside the Dow, 2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Why the Dow Jones Industrials Weren't the Best Place to Invest in 2014 originally appeared on Fool.com.
Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Why the Dows diverged Utility stocks have soared more than 30% in 2014 for a very simple reason: interest rates again defied expectations. Rising strength in the economy heightened demand for air travel, and most carriers attempts' to reap additional profits from ancillary fees such as charging for baggage have taken permanent hold in the industry. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
Two other Dow averages look at more focused parts of the market, and both the Dow Jones Utilities and the Dow Jones Transports have this year dramatically outperformed the Industrials. Coming into the year, most investors believed the Federal Reserve's gradual pullback from its quantitative easing program would cause long-term interest rates to rise, and rising interest rate environments tend to be bad for utility stocks. If the broader economy gets a shot in the arm from lower gasoline prices that translate to more disposable income for consumers, then the companies that carry passengers and goods from place to place could benefit immensely if oil prices stay low for a while.
|
Two other Dow averages look at more focused parts of the market, and both the Dow Jones Utilities and the Dow Jones Transports have this year dramatically outperformed the Industrials. Coming into the year, most investors believed the Federal Reserve's gradual pullback from its quantitative easing program would cause long-term interest rates to rise, and rising interest rate environments tend to be bad for utility stocks. 1 great stock to buy for 2015 and beyond Outside the Dow, 2015 is shaping up to be another great year for stocks.
|
Coming into the year, most investors believed the Federal Reserve's gradual pullback from its quantitative easing program would cause long-term interest rates to rise, and rising interest rate environments tend to be bad for utility stocks. Looking to 2015, the Dow Utilities' prospects don't necessarily look as favorable as they did this year. The Motley Fool has no position in any of the stocks mentioned.
|
8484.0
|
2014-12-22 00:00:00 UTC
|
American Airlines Finalizes Labor Deal, Shares Edge Up - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-finalizes-labor-deal-shares-edge-up-analyst-blog-2014-12-22
|
nan
|
nan
|
American Airlines, the wholly owned subsidiary of American Airlines Group Inc. ( AAL ) has finally reached an agreement with the Association of Professional Flight Attendants - the union representing 24,000 of its flight attendants.
The settlement follows years of negotiations between the two parties. The agreement removes a major overhang on the shares and marks a step ahead toward the completion of the integration process between American Airlines and U.S. Airways. Naturally, the news of the first labor contract after the merger impacted the company's shares positively.
The contract covers the flight attendants of American Airlines and U.S. Airways. We remind investors that the merger, which was completed in late 2013, led to the formation of American Airlines Group. The merger had taken place after a bankruptcy filing by American Airlines. Interestingly, the merged entity has witnessed huge profits thereafter.
Last month, the five-year contract (tentative agreement) was voted down by the flight attendants primarily because it did not cover a profit sharing plan. As per the tentative agreement, flight attendant costs were to be raised by $193 million annually. Following the rejection, arbitration meetings decided the fate of the contract.
We remind investors that in 2012, the two parties had agreed that $112 million would be the maximum value necessary to ensure that the joint contract was on par with industry standards, apart from being worth at least as much as the individual contracts for American Airlines and U.S. Airways.
The agreement with the flight attendants was finally imposed by the panel of arbitrators who met earlier this month. The joint contract called for $112 million in annual wage improvements for flight attendants. The wage increase comes into effect from Jan 1, 2015.
According to media reports, CEO, Doug Parker, has expressed his willingness to restore the lost amount (through higher pay raises) to the flight attendants. The loss is due to the voting down of the higher-valued contract last month.
However, Parker is not in favor of the profit sharing scheme and believes that wages should be raised instead. According to him, the profit sharing scheme is outdated and given to make up for wage cuts. We note that other leading carriers such as Delta Air Lines, Inc. ( DAL ) and Southwest Airlines ( LUV ) have shared profits with their employees.
Apart from the deal, American Airlines was also in the news recently when it inked a codeshare agreement with the Mexican low cost carrier Interjet. The codeshare deal is a smart move by American Airlines aimed at improving its network in Mexico.
Zacks Rank
American Airlines Group carries a Zacks Rank #1 (Strong Buy). An equally well-ranked stock in the airline industry is Ryanair Holdings plc ( RYAAY ).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AMER AIRLINES (AAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
RYANAIR HLDGS (RYAAY): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines, the wholly owned subsidiary of American Airlines Group Inc. ( AAL ) has finally reached an agreement with the Association of Professional Flight Attendants - the union representing 24,000 of its flight attendants. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. The agreement removes a major overhang on the shares and marks a step ahead toward the completion of the integration process between American Airlines and U.S. Airways.
|
Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines, the wholly owned subsidiary of American Airlines Group Inc. ( AAL ) has finally reached an agreement with the Association of Professional Flight Attendants - the union representing 24,000 of its flight attendants. We note that other leading carriers such as Delta Air Lines, Inc. ( DAL ) and Southwest Airlines ( LUV ) have shared profits with their employees.
|
American Airlines, the wholly owned subsidiary of American Airlines Group Inc. ( AAL ) has finally reached an agreement with the Association of Professional Flight Attendants - the union representing 24,000 of its flight attendants. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that in 2012, the two parties had agreed that $112 million would be the maximum value necessary to ensure that the joint contract was on par with industry standards, apart from being worth at least as much as the individual contracts for American Airlines and U.S. Airways.
|
Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines, the wholly owned subsidiary of American Airlines Group Inc. ( AAL ) has finally reached an agreement with the Association of Professional Flight Attendants - the union representing 24,000 of its flight attendants. Last month, the five-year contract (tentative agreement) was voted down by the flight attendants primarily because it did not cover a profit sharing plan.
|
8485.0
|
2014-12-19 00:00:00 UTC
|
QQQ ETF in Focus as Nasdaq Announces Changes to the Index - ETF News And Commentary
|
AAL
|
https://www.nasdaq.com/articles/qqq-etf-in-focus-as-nasdaq-announces-changes-to-the-index-etf-news-and-commentary-2014-12
|
nan
|
nan
|
Nasdaq OMX Group has recently announced a few changes to the Nasdaq 100 index as part of their annual rebalancing schedule.
The benchmark will remove stocks such as Expedia, F5 Networks and Maxim Integrated Products from its index composition, while American Airlines Group ( AAL ), Electronic Arts ( EA ) and Lam Research ( LRCX ) will be added to the index.
Moreover, the exchange has recently revised its methodology for stock inclusion. The new methodology allows for multiple share classes of index components. As a result, Comcast Corp Class A Special, Twenty-First Century Fox Class B and Liberty Global plc Class C shares will be included the index. These changes will be effective from December 22, 2014.
Changes in this index are definitely going to alter the fund composition of ETFs closely tracking the index.
This brings PowerShares QQQ ETF (QQQ ) - the largest and the most popular product in the large cap growth space - in focus. The fund tracks the Nasdaq 100 index, and as such, changes in the index will alter the fund's allocation (read: Ride on Wall Street Bulls with This Top-Ranked ETF ).
QQQ ETF in Focus
Launched in March 1999, QQQ holds a basket 104 stocks. Its underlying index - the Nasdaq 100 - includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.
Apple dominates the fund with 14% allocation, followed by Microsoft with 8.3% allocation. Apart from these two stocks, all the other individual securities have less than 4% exposure each in the fund (read: 3 Apple-Focused Tech ETFs to Bet on for the Holiday Season ).
The three stocks to be removed from the index - Expedia, F5 Networks and Maxim Integrated Products - have a combined exposure of less than 1% in the fund. Moreover, the inclusion of Comcast Corp Class A Special shares is expected to increase the total allocation of Comcast shares to more than 2.6% in the fund as Comcast Corp alone has a 2.54% exposure in the fund right now.
Similarly Twenty-First Century Fox Inc. and Liberty Global plc have 1.1% and 0.22% exposure in the fund, respectively, and the inclusion of other classes of their shares is likely to increase the stocks' respective total allocation.
In terms of sector exposure, the fund is heavily concentrated on Information Technology with 60% of assets invested. However, Consumer Discretionary and Health Care also get double-digit exposure in the ETF (see all Large Cap ETFs here ).
The fund manages an asset base of $45.2 billion and trades in heavy volumes of 40.4 million shares a day. The product is one of the cheapest in its space charging 20 basis points as fees.
QQQ has been among the best performers in its space in the year-to-date frame having returned 18%. The fund has returned 22.6% in the past one year and currently carries a Zacks ETF Rank #2 or Buy rating.
And the recent changes made in the index composition are unlikely to have any major impact on the fund's composition. QQQ is expected to continue outperforming the broader markets.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NASDAQ-100 SHRS (QQQ): ETF Research Reports
AMER AIRLINES (AAL): Free Stock Analysis Report
ELECTR ARTS INC (EA): Free Stock Analysis Report
LAM RESEARCH (LRCX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The benchmark will remove stocks such as Expedia, F5 Networks and Maxim Integrated Products from its index composition, while American Airlines Group ( AAL ), Electronic Arts ( EA ) and Lam Research ( LRCX ) will be added to the index. Click to get this free report NASDAQ-100 SHRS (QQQ): ETF Research Reports AMER AIRLINES (AAL): Free Stock Analysis Report ELECTR ARTS INC (EA): Free Stock Analysis Report LAM RESEARCH (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from these two stocks, all the other individual securities have less than 4% exposure each in the fund (read: 3 Apple-Focused Tech ETFs to Bet on for the Holiday Season ).
|
The benchmark will remove stocks such as Expedia, F5 Networks and Maxim Integrated Products from its index composition, while American Airlines Group ( AAL ), Electronic Arts ( EA ) and Lam Research ( LRCX ) will be added to the index. Click to get this free report NASDAQ-100 SHRS (QQQ): ETF Research Reports AMER AIRLINES (AAL): Free Stock Analysis Report ELECTR ARTS INC (EA): Free Stock Analysis Report LAM RESEARCH (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. As a result, Comcast Corp Class A Special, Twenty-First Century Fox Class B and Liberty Global plc Class C shares will be included the index.
|
Click to get this free report NASDAQ-100 SHRS (QQQ): ETF Research Reports AMER AIRLINES (AAL): Free Stock Analysis Report ELECTR ARTS INC (EA): Free Stock Analysis Report LAM RESEARCH (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. The benchmark will remove stocks such as Expedia, F5 Networks and Maxim Integrated Products from its index composition, while American Airlines Group ( AAL ), Electronic Arts ( EA ) and Lam Research ( LRCX ) will be added to the index. The fund tracks the Nasdaq 100 index, and as such, changes in the index will alter the fund's allocation (read: Ride on Wall Street Bulls with This Top-Ranked ETF ).
|
The benchmark will remove stocks such as Expedia, F5 Networks and Maxim Integrated Products from its index composition, while American Airlines Group ( AAL ), Electronic Arts ( EA ) and Lam Research ( LRCX ) will be added to the index. Click to get this free report NASDAQ-100 SHRS (QQQ): ETF Research Reports AMER AIRLINES (AAL): Free Stock Analysis Report ELECTR ARTS INC (EA): Free Stock Analysis Report LAM RESEARCH (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. This brings PowerShares QQQ ETF (QQQ ) - the largest and the most popular product in the large cap growth space - in focus.
|
8486.0
|
2014-12-19 00:00:00 UTC
|
$450 for a Credit Card? It Might Be Worth It
|
AAL
|
https://www.nasdaq.com/articles/450-credit-card-it-might-be-worth-it-2014-12-19
|
nan
|
nan
|
The American Express Centurion ("Black") card is extremely expensive, tough to get, and probably not worth the cost for most people. However, some other credit cards with high annual fees might be well worth the cost.
Here are three credit cards with annual fees of $450 that can be worth every penny, and one that is not.
The "junior" black card
I sometimes call the American Express Platinum card the "junior" black card, as it has many of the same benefits as the Centurion card. And the $450 annual fee feels small when compared to $2,500 for the Centurion plus a $7,500 initiation fee.
While the Platinum card won't give you automatic elite status on Delta Air Lines or access to the Centurion's famous concierge service, you do get some pretty nice perks.
For example, you'll get the same complimentary access to airport lounges, even the Centurion lounges. A one-day visit to an airport lounge will cost you about $50 without a participating credit card or other means of free access, so this benefit can really add up throughout the year. You'll also get a $200 statement credit for airline fees, and an $85 fee credit for TSA PreCheck. Other benefits include automatic Gold status with Starwood Hotels , no foreign transaction fees, and purchase protection.
Also, Platinum cardholders have access to their own concierge service, which can arrange dinner reservations or help plan gifts and other special events . While it's not equal to the service provided to Centurion cardholders, everything I've read indicates it is still very good.
Excellent rewards and more
The CitiPrestige card has some pretty great benefits, as well as a very generous rewards program that might be worth the price of admission.
For starters, the card offers a $250 annual air travel credit, a "4th night free" benefit for hotel stays, a $100 credit for a U.S. Customs and Border ProtectionGlobal Entry application fee, and a membership to American Airlines ' Admirals Club lounges.
The Citi ThankYou rewards program is another perk. Prestige cardholders get one point per dollar on most purchases, but earn double points on restaurants and entertainment and triple points on airline and hotel charges. Points have extra redemption value on airlines, so the reward travel benefit can add up fast.
Great for travelers
Also from American Express, the Delta SkyMiles Reserve card comes with a $450 annual fee, which can easily pay for itself if the cardholder flies with Delta frequently.
Free access to Delta Sky Clubs (worth over $500 annually all by itself), a free checked bag per flight ($25 each way), and a free annual companion certificate good for a coach or first-class ticket can add up to several times the annual fee.
Also, frequent travelers can earn elite status quicker. After spending $30,000 on the card in a calendar year, you'll get 15,000 Medallion Qualification Miles, or MQMs, and another 15,000 when you hit $60,000. Elite status means free upgrades, better seats, priority boarding, and a more pleasant overall flying experience.
American Airlines has a similar product (the Advantage Executive World EliteMasterCard ) issued by Citi with similar benefits; however, the Delta card is a little better. The MQMs are earned at a better rate, and the Citi card offers no companion certificate, but those travelers loyal to American Airlines might be willing to paythe $450 fee for this one.
They aren't all worthwhile
However, just because a credit card charges a high fee doesn't mean it's worth the cost. For example, the Visa Black Card costs $495 per year. Other than access to some airport lounges, the card seems to have rewards and benefits comparable to others that cost much less.
In a nutshell, these (and other) expensive credit cards might be well worth the fee, depending on your personal situation. For example, someone who travels once or twice a year would be throwing their money away with the Delta Reserve card. On the other hand, someone who travels every other week could easily get thousands of dollars in value out of the card's benefits.
When evaluating any credit card with an annual fee, consider the benefits offered and how often you would actually use them. Maybe one of these would make financial sense to you.
Smart use of credit and great investments is a winning strategy
The Motley Fool's top analysts have uncovered a largely unknown way you can profit from the growth of wireless that could double your money on top of paying you a growing, LEGALLY GUARANTEED income stream every single quarter. To get the full story, simply click here .
The article $450 for a Credit Card? It Might Be Worth It originally appeared on Fool.com.
Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends American Express, MasterCard, and Visa. The Motley Fool owns shares of MasterCard and Visa. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
While the Platinum card won't give you automatic elite status on Delta Air Lines or access to the Centurion's famous concierge service, you do get some pretty nice perks. A one-day visit to an airport lounge will cost you about $50 without a participating credit card or other means of free access, so this benefit can really add up throughout the year. The MQMs are earned at a better rate, and the Citi card offers no companion certificate, but those travelers loyal to American Airlines might be willing to paythe $450 fee for this one.
|
While the Platinum card won't give you automatic elite status on Delta Air Lines or access to the Centurion's famous concierge service, you do get some pretty nice perks. For starters, the card offers a $250 annual air travel credit, a "4th night free" benefit for hotel stays, a $100 credit for a U.S. Customs and Border ProtectionGlobal Entry application fee, and a membership to American Airlines ' Admirals Club lounges. They aren't all worthwhile However, just because a credit card charges a high fee doesn't mean it's worth the cost.
|
The "junior" black card I sometimes call the American Express Platinum card the "junior" black card, as it has many of the same benefits as the Centurion card. For starters, the card offers a $250 annual air travel credit, a "4th night free" benefit for hotel stays, a $100 credit for a U.S. Customs and Border ProtectionGlobal Entry application fee, and a membership to American Airlines ' Admirals Club lounges. Great for travelers Also from American Express, the Delta SkyMiles Reserve card comes with a $450 annual fee, which can easily pay for itself if the cardholder flies with Delta frequently.
|
However, some other credit cards with high annual fees might be well worth the cost. While the Platinum card won't give you automatic elite status on Delta Air Lines or access to the Centurion's famous concierge service, you do get some pretty nice perks. Great for travelers Also from American Express, the Delta SkyMiles Reserve card comes with a $450 annual fee, which can easily pay for itself if the cardholder flies with Delta frequently.
|
8487.0
|
2014-12-19 00:00:00 UTC
|
After Hours Most Active for Dec 19, 2014 : IAG, HL, AUQ, INTC, AG, AAPL, PVG, CSCO, AGI, FOX, AAL, LBTYK
|
AAL
|
https://www.nasdaq.com/articles/after-hours-most-active-dec-19-2014-iag-hl-auq-intc-ag-aapl-pvg-csco-agi-fox-aal-lbtyk
|
nan
|
nan
|
The NASDAQ 100 After Hours Indicator is to 4,281.78. The total After hours volume is currently 342,708,387 shares traded.
The following are the most active stocks for the after hours session :
Iamgold Corporation ( IAG ) is -0.13 at $2.46, with 31,732,189 shares traded. IAG's current last sale is 82% of the target price of $3.
Hecla Mining Company ( HL ) is -0.0024 at $2.81, with 27,455,298 shares traded. HL's current last sale is 105.95% of the target price of $2.65.
AuRico Gold Inc. ( AUQ ) is -0.07 at $3.22, with 15,601,157 shares traded. AUQ's current last sale is 71.56% of the target price of $4.5.
Intel Corporation ( INTC ) is +0.0073 at $36.38, with 9,957,087 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2015. The consensus EPS forecast is $0.64. INTC's current last sale is 98.32% of the target price of $37.
First Majestic Silver Corp. ( AG ) is -0.0043 at $5.12, with 9,868,196 shares traded. AG's current last sale is 73.08% of the target price of $7.
Apple Inc. ( AAPL ) is +0.0224 at $111.80, with 8,990,509 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2014. The consensus EPS forecast is $2.56. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Pretium Resources, Inc. ( PVG ) is -0.45 at $5.45, with 7,488,127 shares traded. As reported by Zacks, the current mean recommendation for PVG is in the "buy range".
Cisco Systems, Inc. ( CSCO ) is +0.0056 at $27.78, with 7,314,212 shares traded. As reported by Zacks, the current mean recommendation for CSCO is in the "buy range".
Alamos Gold Inc ( AGI ) is -0.0063 at $7.44, with 7,241,304 shares traded. AGI's current last sale is 71.44% of the target price of $10.42.
Twenty-First Century Fox, Inc. ( FOX ) is -0.0125 at $37.04, with 7,121,631 shares traded., following a 52-week high recorded in today's regular session.
American Airlines Group, Inc. ( AAL ) is -0.11 at $50.60, with 6,555,095 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2014. The consensus EPS forecast is $1.55. As reported by Zacks, the current mean recommendation for AAL is in the "buy range".
Liberty Global plc ( LBTYK ) is unchanged at $48.53, with 5,843,360 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group, Inc. ( AAL ) is -0.11 at $50.60, with 6,555,095 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The following are the most active stocks for the after hours session : Iamgold Corporation ( IAG ) is -0.13 at $2.46, with 31,732,189 shares traded.
|
American Airlines Group, Inc. ( AAL ) is -0.11 at $50.60, with 6,555,095 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2014.
|
American Airlines Group, Inc. ( AAL ) is -0.11 at $50.60, with 6,555,095 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The total After hours volume is currently 342,708,387 shares traded.
|
American Airlines Group, Inc. ( AAL ) is -0.11 at $50.60, with 6,555,095 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The NASDAQ 100 After Hours Indicator is to 4,281.78.
|
8488.0
|
2014-12-19 00:00:00 UTC
|
Will Restoration of U.S., Cuba Ties Benefit Airline Stocks? - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/will-restoration-of-u.s.-cuba-ties-benefit-airline-stocks-analyst-blog-2014-12-19
|
nan
|
nan
|
On Wednesday, President Obama called for the restoration of diplomatic ties with Cuba after more than 50 years. The decision was arrived at following 18 months of "secret" talks between the two countries.
A Look Back
Diplomatic ties between the two countries were severed by the U.S. in 1961 after Fidel Castro (The current President Raul Castro's brother) overthrew the Cuban government to set up a socialist state and in the process started to establish strong relations with the erstwhile Soviet Union.
The unsuccessful Bay of Pigs invasion to overthrow Fidel Castro followed. The Cuban Missile crisis came after, when the U.S. became aware that the Soviet Union was building a missile base on the island and almost led to nuclear warfare between.
Economic and political ties between the U.S. and Cuba worsened further. The issue of Cuban refugees posed another challenge to the U.S. and a number of laws were passed between the mid 60s and mid 90s to tackle the problem. The presence of spies from both countries made the matter worse.
In 2013, President Obama and Raul Castro (who took over as President from the ill Fidel Castro in 2008) greeted each other warmly raising hopes for easing of tensions between the two nations.
Subsequently, negotiations authorized by the U.S. President took place in the Vatican and Canada. Pope Francis played an important role in the restoration of ties between the two countries that lie separated by only 90 miles of water. The talks culminated earlier in the week when President Obama and the Cuban President Raul Castro agreed to mend damaged ties through a telephonic conversation.
Plans to ease relationships between the two countries were announced by the respective Presidents through simultaneous speeches that were broadcasted live in the respective countries. The leaders agreed to open embassies in each other's countries apart from easing restrictions aimed at increasing the flow of people and capital between the long-time foes.
Travel Restrictions Eased
We note that Cuba was a favorite tourist spot for Americans prior to the embargo. The short distance, a one-hour flight from Miami, made matters easier. President Obama's announcement on easing travel restrictions will no doubt result in increased travel to Cuba from the U.S. According to the Department of commerce, approximately 124,000 U.S. citizens flew to Cuba last year and the number is likely to increase further.
However, U.S. citizens will be able to travel to Cuba only for family visits and business purposes, research and humanitarian work. Tourism related travel to the island would need approval from the Congress.
The Republican Win - A Major Obstacle?
Despite President Obama's declaration to restore normal ties with Cuba, lawmakers in the U.S. are not likely to revoke the Cuba embargo in the near future. This is because of the negative reaction of the Republicans to Obama's move.
The Republican victory during the midterm elections earlier resulted in them securing a majority in both chambers of Congress for the first time since 2006. Following their resounding win, Republicans will control both the chambers from early next year. Consequently, the restrictions on vacation travel are unlikely to be lifted anytime soon.
Impact on Airline Stocks
Many U.S.-based carriers currently offer charter service to Cuba. American Airlines, the wholly owned subsidiary of American Airlines Group ( AAL ), flies extensively to Latin America from Miami Airport. The carrier has been flying to Cuba for many years. The easing of the travel restrictions should augment the top line of this Zacks Rank #1 (Strong Buy) stock further.
Delta Air Lines, Inc ( DAL )., also sporting a Zacks Rank #1, has operated more than 240 charter flights between October 2011 and December 2012 according to a report appearing in the associated press. However, the carrier has no plans to fly to Cuba currently. However, according to the report, it is not averse to flying to the island in the event of a suitable opportunity arising. We believe that will arise once restrictions regarding vacation travel are lifted.
Chicago-based United Airlines, the wholly owned subsidiary of United Continental Holdings ( UAL ), has issued a statement in favor of Obama's declaration. The company is again looking forward to the lifting of tourist travel restrictions. The stock carries a Zacks Rank #3 (Hold). JetBlue Airways ( JBLU ), another Zacks Rank #3 stock, also offers charter service to Cuba.
Although positive on President Obama's announcement that travel restrictions to Cuba will be eased, we believe airline stocks will be truly benefited only when the travel restrictions are fully lifted.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines, the wholly owned subsidiary of American Airlines Group ( AAL ), flies extensively to Latin America from Miami Airport. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Pope Francis played an important role in the restoration of ties between the two countries that lie separated by only 90 miles of water.
|
American Airlines, the wholly owned subsidiary of American Airlines Group ( AAL ), flies extensively to Latin America from Miami Airport. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. JetBlue Airways ( JBLU ), another Zacks Rank #3 stock, also offers charter service to Cuba.
|
Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines, the wholly owned subsidiary of American Airlines Group ( AAL ), flies extensively to Latin America from Miami Airport. President Obama's announcement on easing travel restrictions will no doubt result in increased travel to Cuba from the U.S.
|
American Airlines, the wholly owned subsidiary of American Airlines Group ( AAL ), flies extensively to Latin America from Miami Airport. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On Wednesday, President Obama called for the restoration of diplomatic ties with Cuba after more than 50 years.
|
8489.0
|
2014-12-18 00:00:00 UTC
|
Why American Airlines (AAL) Stock Might be a Great Pick - Tale of the Tape
|
AAL
|
https://www.nasdaq.com/articles/why-american-airlines-aal-stock-might-be-a-great-pick-tale-of-the-tape-2014-12-18
|
nan
|
nan
|
One stock that might be an intriguing choice for investors right now is American Airlines Group Inc. ( AAL ). This is because this security in the Trans-Airline industry space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Trans-Airline industry space as it currently has a Zacks Industry Rank of 22 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, American Airlines is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term.
In fact, over the past month, current quarter estimates have risen from $1.48 per share to $1.55 per share, while current year estimates have risen from $5.66 per share to $5.73 per share. This has helped AAL to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position.
So, if you are looking for a decent pick in a strong industry, consider American Airlines. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This has helped AAL to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position. One stock that might be an intriguing choice for investors right now is American Airlines Group Inc. ( AAL ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
|
One stock that might be an intriguing choice for investors right now is American Airlines Group Inc. ( AAL ). This has helped AAL to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
|
One stock that might be an intriguing choice for investors right now is American Airlines Group Inc. ( AAL ). This has helped AAL to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
|
One stock that might be an intriguing choice for investors right now is American Airlines Group Inc. ( AAL ). This has helped AAL to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
|
8490.0
|
2014-12-18 00:00:00 UTC
|
Copa Airlines November Traffic Up on Operational Strength - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/copa-airlines-november-traffic-up-on-operational-strength-analyst-blog-2014-12-18
|
nan
|
nan
|
Copa Holdings SA 's ( CPA ) business arm - Copa Airlines - posted a significant rise in air traffic in the month of November. Traffic - measured in revenue passenger miles (RPMs) - stood at 1.27 billion, up 5.2% from 1.21 billion recorded in the comparable month a year ago. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 9.9% to 1.72 billion. However, the load factor or percentage of seats filled by passengers fell to 74.1% from 77.3% in Nov 2013.
The onset of the holiday season along with an improving U.S. economy has resulted in considerable operating strength for Copa Holdings. However, the positives were slightly marred by the snowstorm in the northeast U.S. which severely disrupted air travels during Thanksgiving.
Recently, Copa Airlines announced its intent to operate daily non-stop flights between Campinas and Panama City, thus expanding its network across eight additional destinations in Brazil.
Increased demand for air travel, mainly during the holiday season, coupled with lower fuel prices will continue to boost profits for Copa Airlines. Moreover, International Air Transport Association (IATA) also expects the airline industry to witness a 10.6% increase in revenues to $19.9 billion in 2014.
Other Stocks to Consider
Copa Holdings SA currently carries a Zacks Rank #4 (Sell) while other better-ranked stocks sporting a Zacks Rank #1 (Strong Buy) are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Southwest Airlines Co. ( LUV ).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
COPA HLDGS SA-A (CPA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other Stocks to Consider Copa Holdings SA currently carries a Zacks Rank #4 (Sell) while other better-ranked stocks sporting a Zacks Rank #1 (Strong Buy) are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Southwest Airlines Co. ( LUV ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Recently, Copa Airlines announced its intent to operate daily non-stop flights between Campinas and Panama City, thus expanding its network across eight additional destinations in Brazil.
|
Other Stocks to Consider Copa Holdings SA currently carries a Zacks Rank #4 (Sell) while other better-ranked stocks sporting a Zacks Rank #1 (Strong Buy) are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Southwest Airlines Co. ( LUV ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other Stocks to Consider Copa Holdings SA currently carries a Zacks Rank #4 (Sell) while other better-ranked stocks sporting a Zacks Rank #1 (Strong Buy) are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Southwest Airlines Co. ( LUV ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other Stocks to Consider Copa Holdings SA currently carries a Zacks Rank #4 (Sell) while other better-ranked stocks sporting a Zacks Rank #1 (Strong Buy) are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Southwest Airlines Co. ( LUV ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Traffic - measured in revenue passenger miles (RPMs) - stood at 1.27 billion, up 5.2% from 1.21 billion recorded in the comparable month a year ago.
|
8491.0
|
2014-12-17 00:00:00 UTC
|
Gas Prices Plunge. Will Airfare Get Cheap?
|
AAL
|
https://www.nasdaq.com/articles/gas-prices-plunge-will-airfare-get-cheap-2014-12-17
|
nan
|
nan
|
With oil prices down 40% from their peak, fuel-thirsty airlines are already eyeing the savings expected to result from cheaper jet fuel.
This has led many consumers to ask whether airlines will pass any of the savings along as lower airfares, or whether there are other factors at play.
Significant savings
Looking at 10-K forms from Delta Air Lines , United Continental Holdings , and American Airlines Group , each carrier estimates fuel usage of around 4 billion gallons of jet fuel for 2014.
With jet fuel prices down roughly $1 per gallon from their summer peak based on the Gulf Coast Jet Fuel price from the Energy Information Administration, these fuel savings should amount to a few billion dollars for major carriers. It's also important to note that current jet fuel prices are well below the $2.70-$3 per-gallon trading range that existed for most of 2013 and 2014. Even compared to the lower end of this range, today's fuel prices would mean multibillion-dollar annualized savings for the largest airlines.
It's easy to see why fuel savings are such a big deal for major carriers. These companies' 10-K filings all indicate that fuel expenses have comprised 30% to 37% of operating expenses for the last few years.
Hedging effects
Airlines are saving large amounts on fuel in absolute terms, but the airlines themselves are very large companies generating tens of billions in annual revenue. So before I look at how much of the savings consumers should expect to receive, I'll take a look at what they could save if airlines passed fuel savings along while keeping margins the same.
First, it's worth taking a look at airline fuel hedging programs. American Airlines Group will be one of the first airlines to benefit from falling fuel prices since the airline no longer hedges its fuel costs. However, the savings will take longer to directly benefit Delta Air Lines and United.
In August before fuel prices fell, United noted it had 21% of its 2014 fuel hedged, 19% of its 2015 fuel hedged and just 1% of its 2016 fuel hedged. Delta, long known for its aggressive hedging strategy, expects its hedging book to post a $1.2 billion loss in 2015 with fuel prices at current levels; however, it expects to fully capture the fuel price savings for 2016. In its December Investor Day presentation, Delta estimated hedging adjusted fuel costs for 2015 to be between $2.40 and $2.50 per gallon, while United has not provided a full-year 2015 outlook since the fuel-price slide.
But Delta and United's fuel hedging strategies will have similar effects. Both carriers will come out overall winners from the fuel-price slide since not all of their fuel is locked in at higher prices. However, the hedging will delay when these carriers can see the full extent of the fuel savings by mitigating savings for 2014 and 2015 but having little impact on 2016.
Maximum savings
For the purposes of creating a rough analysis and determining maximum possible savings, I will exclude the effects of hedging now and instead focus on current fuel price savings and operating expenses. As previously mentioned, hedging is likely to delay and limit the fuel savings seen by airlines, but if fuel prices remain at these levels, the effects of hedges should largely balance themselves out by 2016.
All three major carriers reported fuel as roughly a third of operating expenses; considering fuel prices have dropped by about a third compared to average 2013 and 2014 prices, overall operating expenses should be reduced by about one-ninth as long as fuel prices remain at these levels, all else being equal, of course.
Using these numbers, the maximum amount consumers could expect to save would be about 11% if the airlines decide to pass along every dollar they save in the form of lower airfares while keeping margins the same. Of course, jet fuel prices could fall further, which would open up the potential for greater savings to be passed along.
Savings for you?
Just because fuel prices are down doesn't mean passengers will get every dollar of the savings, however. Airlines are, after all, profit-seeking businesses, and, like any other for-profit corporation, they will do what they can to get the maximum amount of profit.
A report from the Associated Press notes that carriers as a whole expect to cut fares by about 5% as a result of lower fuel prices. Using my earlier calculations, this would imply that airlines expect to eventually pass along about half of the savings.
However, passengers are likely to see a delay before getting lower fares.Brian Pearce, c hief economist at the International Air Transport Association, told the Associated Press, "It's going to be six months or so before airlines are seeing lower fuel costs, and at that point consumers are likely to see a fall in travel costs."
Pearce's comments fit with the hedging programs airlines currently have in place, which were made to protect carriers from price spikes but are now making current fuel purchases more expensive than market rates. The estimated delay of six months gives more time for some fuel hedges to run out and lets carriers more directly see the fuel savings.
If this six-month estimate is correct, passengers should begin to see fuel savings in the form of slightly lower fares by the summer of 2015.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Gas Prices Plunge. Will Airfare Get Cheap? originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines and has the following options: long January 2015 $22 calls on Delta Air Lines, long January 2015 $25 calls on Delta Air Lines, long January 2015 $30 calls on Delta Air Lines, long January 2015 $17 calls on American Airlines Group, long January 2015 $32 calls on American Airlines Group, long January 2017 $25 calls on American Airlines Group, and long January 2016 $60 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
With oil prices down 40% from their peak, fuel-thirsty airlines are already eyeing the savings expected to result from cheaper jet fuel. In its December Investor Day presentation, Delta estimated hedging adjusted fuel costs for 2015 to be between $2.40 and $2.50 per gallon, while United has not provided a full-year 2015 outlook since the fuel-price slide. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
Significant savings Looking at 10-K forms from Delta Air Lines , United Continental Holdings , and American Airlines Group , each carrier estimates fuel usage of around 4 billion gallons of jet fuel for 2014. American Airlines Group will be one of the first airlines to benefit from falling fuel prices since the airline no longer hedges its fuel costs. Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines and has the following options: long January 2015 $22 calls on Delta Air Lines, long January 2015 $25 calls on Delta Air Lines, long January 2015 $30 calls on Delta Air Lines, long January 2015 $17 calls on American Airlines Group, long January 2015 $32 calls on American Airlines Group, long January 2017 $25 calls on American Airlines Group, and long January 2016 $60 calls on American Airlines Group.
|
In August before fuel prices fell, United noted it had 21% of its 2014 fuel hedged, 19% of its 2015 fuel hedged and just 1% of its 2016 fuel hedged. All three major carriers reported fuel as roughly a third of operating expenses; considering fuel prices have dropped by about a third compared to average 2013 and 2014 prices, overall operating expenses should be reduced by about one-ninth as long as fuel prices remain at these levels, all else being equal, of course. Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines and has the following options: long January 2015 $22 calls on Delta Air Lines, long January 2015 $25 calls on Delta Air Lines, long January 2015 $30 calls on Delta Air Lines, long January 2015 $17 calls on American Airlines Group, long January 2015 $32 calls on American Airlines Group, long January 2017 $25 calls on American Airlines Group, and long January 2016 $60 calls on American Airlines Group.
|
American Airlines Group will be one of the first airlines to benefit from falling fuel prices since the airline no longer hedges its fuel costs. Using these numbers, the maximum amount consumers could expect to save would be about 11% if the airlines decide to pass along every dollar they save in the form of lower airfares while keeping margins the same. Savings for you?
|
8492.0
|
2014-12-17 00:00:00 UTC
|
What Has AirTran Done For Southwest Airlines?
|
AAL
|
https://www.nasdaq.com/articles/what-has-airtran-done-southwest-airlines-2014-12-17
|
nan
|
nan
|
As Southwest ( LUV ) comes close to completing the integration of AirTran, we assess what AirTran has done for Southwest. In our view, AirTran's most notable contribution has been accelerating Southwest's entry in to international markets. Geographically, AirTran added 21 cities to Southwest's network and 7 of these cities lie in the international market. This international presence has positioned Southwest to expand to Central America and northern parts of South America - regions that are seeing fast growth in demand for air travel. In addition, the integration of AirTran has made Southwest the largest domestic airline, based on the number of passengers flown. Synergies from AirTran's acquisition have also played a key role in growing Southwest's profit from $178 million in 2011, to $421 million in 2012, and to $754 million in 2013. In the current year, these synergies, totaling $400 million for the entire year, have helped Southwest's profit rise by 75% per year to $946 million in the first three quarters. All in all, AirTran has accelerated Southwest's expansion in the continental U.S. and also positioned it well for long term growth in the international market.
We currently have a price estimate of $41 for Southwest , marginally below its current market price. We estimate that Southwest will post earnings of $1.95 per share in 2014, in line with its current consensus earnings estimate.
See our complete analysis of Southwest here
Southwest Has Dispelled Pre-Merger Fears
At the time of AirTran's acquisition by Southwest in 2011, there were many fears that the deal could go wrong for Southwest. Some of the major concerns were that Southwest operates a predominantly point-to-point network, while AirTran had a significant concentration of flights in Atlanta, and that Southwest flies only one aircraft type, Boeing 737s (to keep its operating costs low), while AirTran's fleet also consisted on Boeing 717s. There were additional worries that AirTran's integration could raise Southwest's operating costs, putting at stake the core of its business model. But over the past 2-3 years, Southwest has done a commendable job integrating AirTran. Southwest smoothly absorbed AirTran's Atlanta operations, making them similar to the rest of its focus cities, rather than remaining a hub. The carrier also leased out AirTran's 717s to Delta ( DAL ), preserving the cost advantage that comes with operating a single aircraft type. Southwest will fly the last of AirTran's 717s until December 28, and thereafter transition the last batch of 717s to Delta. And most importantly, three years after the acquisition, Southwest's operating costs are still well below those of other major airlines including JetBlue ( JBLU ). So, the pre-merger fears haven't played out. On the contrary, AirTran's acquisition and integration has given Southwest the scale to compete more effectively with larger network carriers such as American ( AAL ), United ( UAL ) and Delta in the domestic market.
The graph above shows how after acquiring AirTran, Southwest's domestic market share, based on capacity, jumped to 17.7% in 2011 from 14.6% in 2010. At the time of the acquisition in May 2011, AirTran added $2.6 billion in annual revenue to Southwest's top line. Through AirTran, Southwest gained entry in Atlanta and Washington Reagan - both high value markets that likely helped raise Southwest's average fare and yield over the past three years. Today, Southwest has a strong presence at Atlanta and 44 daily departures at Washington Reagan. The expansion at Washington Reagan was also boosted by the acquisition of slots which were vacated by American Airlines-US Airways as part of their merger approval from the Justice Department. In terms of capacity, AirTran expanded Southwest's network by about 25%, making Southwest the largest domestic carrier based on the number of passengers flown. We figure this scale in the domestic market will catalyze Southwest's international growth, as domestic traffic feeds in to the international network. Overall, the AirTran integration has played a crucial part in taking Southwest's stock to its current lifetime high.
Southwest Will Accelerate Capacity Expansion In 2015
Looking ahead, we figure that as Southwest completes the integration of AirTran by the end of 2014, the airline will return to higher rates of capacity addition in 2015. Over the past few years, Southwest was forced to expand its capacity at relatively low rates of around 1-2% per year as it was occupied with integrating AirTran. Converting AirTran's 737s into Southwest livery as well as phasing out AirTran's 717s required Southwest to keep many airplanes out of active service. So, as these AirTran airplanes return to active service, refurbished with Southwest livery, the carrier plans to expand its capacity by 6% per year in 2015. We figure this aggressive capacity expansion in 2015 will help retain Southwest's growth, which over the past 2-3 years years was driven in part by the AirTran acquisition and synergies. (Southwest Is Set To Retain Its Growth Momentum In 2015)
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On the contrary, AirTran's acquisition and integration has given Southwest the scale to compete more effectively with larger network carriers such as American ( AAL ), United ( UAL ) and Delta in the domestic market. The expansion at Washington Reagan was also boosted by the acquisition of slots which were vacated by American Airlines-US Airways as part of their merger approval from the Justice Department. (Southwest Is Set To Retain Its Growth Momentum In 2015) View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
|
On the contrary, AirTran's acquisition and integration has given Southwest the scale to compete more effectively with larger network carriers such as American ( AAL ), United ( UAL ) and Delta in the domestic market. In terms of capacity, AirTran expanded Southwest's network by about 25%, making Southwest the largest domestic carrier based on the number of passengers flown. We figure this aggressive capacity expansion in 2015 will help retain Southwest's growth, which over the past 2-3 years years was driven in part by the AirTran acquisition and synergies.
|
On the contrary, AirTran's acquisition and integration has given Southwest the scale to compete more effectively with larger network carriers such as American ( AAL ), United ( UAL ) and Delta in the domestic market. As Southwest ( LUV ) comes close to completing the integration of AirTran, we assess what AirTran has done for Southwest. See our complete analysis of Southwest here Southwest Has Dispelled Pre-Merger Fears At the time of AirTran's acquisition by Southwest in 2011, there were many fears that the deal could go wrong for Southwest.
|
On the contrary, AirTran's acquisition and integration has given Southwest the scale to compete more effectively with larger network carriers such as American ( AAL ), United ( UAL ) and Delta in the domestic market. Through AirTran, Southwest gained entry in Atlanta and Washington Reagan - both high value markets that likely helped raise Southwest's average fare and yield over the past three years. We figure this scale in the domestic market will catalyze Southwest's international growth, as domestic traffic feeds in to the international network.
|
8493.0
|
2014-12-17 00:00:00 UTC
|
Republic Airways to Enhance Ties with Delta Air Lines - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/republic-airways-to-enhance-ties-with-delta-air-lines-analyst-blog-2014-12-17
|
nan
|
nan
|
Following a recent extension of the Capacity Purchase Agreement ("CPA") between Republic Airways Holdings Inc. ( RJET ) and Delta Air Lines Inc. ( DAL ), the former has decided to operate nine additional 69-seater E170 aircraft.
The additional planes are expected to commence services in between the third quarter of 2015 and second quarter of 2016, for a period of six years. Meanwhile, the existing agreement concerning 14 E170 aircraft has been extended for a term of four years, through Oct 2021. Also, the present contract involving a fleet of 16 E175 aircraft has been extended through Feb 2024.
Through an earlier CPA agreement, Republic Airways had decided to operate 41 of its 50-seat aircraft under Delta Air Lines till May 2016. However, the success of the agreement has encouraged both the parties to extend it. If the company had failed to renew its CPA agreement, Republic Airways would have considered some other partner.
In order to drive profitability, Republic Airways has decided to ground 50-seater planes along with 76-seater regional jets. This is expected to help the company drive profits apart from ensuring better flight maintenance. This is also likely to increase the availability of pilots.
Previously, Republic Airways had teamed up with American Airlines Group Inc. ( AAL ) to flag off 76 planes. Such strategic partnerships with major airlines will initially increase ownership costs for the company but boost profits in the long haul.
Republic Airways currently sports a Zacks Rank #1 (Strong Buy) while another stock having the same Zacks Rank is Hawaiian Holdings Inc. ( HA ).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
REPUBLIC AIRWAY (RJET): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Previously, Republic Airways had teamed up with American Airlines Group Inc. ( AAL ) to flag off 76 planes. Click to get this free report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Following a recent extension of the Capacity Purchase Agreement ("CPA") between Republic Airways Holdings Inc. ( RJET ) and Delta Air Lines Inc. ( DAL ), the former has decided to operate nine additional 69-seater E170 aircraft.
|
Click to get this free report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Previously, Republic Airways had teamed up with American Airlines Group Inc. ( AAL ) to flag off 76 planes. Following a recent extension of the Capacity Purchase Agreement ("CPA") between Republic Airways Holdings Inc. ( RJET ) and Delta Air Lines Inc. ( DAL ), the former has decided to operate nine additional 69-seater E170 aircraft.
|
Click to get this free report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Previously, Republic Airways had teamed up with American Airlines Group Inc. ( AAL ) to flag off 76 planes. Following a recent extension of the Capacity Purchase Agreement ("CPA") between Republic Airways Holdings Inc. ( RJET ) and Delta Air Lines Inc. ( DAL ), the former has decided to operate nine additional 69-seater E170 aircraft.
|
Previously, Republic Airways had teamed up with American Airlines Group Inc. ( AAL ) to flag off 76 planes. Click to get this free report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Through an earlier CPA agreement, Republic Airways had decided to operate 41 of its 50-seat aircraft under Delta Air Lines till May 2016.
|
8494.0
|
2014-12-17 00:00:00 UTC
|
How Is JetBlue Planning To Improve Its Profitability? – Part 2
|
AAL
|
https://www.nasdaq.com/articles/how-jetblue-planning-improve-its-profitability-part-2-2014-12-17
|
nan
|
nan
|
In a previous article, we discussed the revenue-side measures that JetBlue ( JBLU ) is taking to improve its profitability. In this article, we explore the cost-side measures that JetBlue is taking to improve its margins and return on invested capital ( ROIC ). JetBlue is adding more fuel-efficient airplanes to its fleet in an attempt to lower its operating costs. The carrier is also set to cut its non-aircraft capital expenditures in 2015, which will boost its ROIC. In all, through these revenue and cost-side measures, JetBlue is aiming to lift its profit and ROIC in line with those of leading U.S. airlines.
We currently have a price estimate of $13 for JetBlue, around 10% below its current market price. JetBlue's stock has risen by about 15% over the past month, primarily driven by the sharp decline in global crude oil prices . We currently estimate JetBlue to post earnings of 70 cents per share in 2014, compared with its consensus earnings estimate of 69 cents per share.
See our complete analysis of JetBlue here
JetBlue's Fleet Investments Will Reduce Its Operating Costs
JetBlue is adding more Airbus A321s to its fleet. The carrier estimates that this new airplane is 12% more cost efficient than the Airbus A320, which currently constitutes the bulk of its fleet. So, the addition of more A321s will reduce JetBlue's overall operating cost. In addition, JetBlue is equipping its A320s with sharklets - curved extensions at wingtips - which improve the lift that an airplane generates from surrounding air. The installation of sharklets is expected to improve the cost efficiency of JetBlue's A320s by 1-3%. Through these measures, JetBlue estimates that growth in its non-fuel unit costs will come down to below 2% per year, from 3.8% per year in 2013. Non-fuel unit cost is a standard metric which measures how well an airline manages the costs that it can control. Fuel costs, being linked to global crude oil prices, are excluded from this metric. If JetBlue is able to limit growth in its non-fuel unit cost to under 2% per year, then its margins should expand as growth in the carrier's unit revenue is expected to be higher.
Improvement in margins is also essential for JetBlue to retain its historic cost advantage relative to network carriers. Since its inception, JetBlue has relied on a low-cost operating model to offer lower fares relative to network carriers such as American ( AAL ), Delta ( DAL ) and United ( UAL ). Lower fares in turn have attracted passenger traffic to JetBlue, growing its market share. But in the past few years, network carriers including American, United and Delta have lowered their operating costs by restructuring under bankruptcy protection. This has reduced JetBlue's historic cost advantage and its ability to offer lower fares vis-a-vis network carriers. So, these fleet investments that will reduce JetBlue's operating costs are also important to protect the carrier's business model.
In 2015, JetBlue's non-aircraft capital expense will decline to about $150-200 million, from $320 million in 2014. The carrier's non-aircraft capital expense increased sharply in 2014 as it spent large amounts in acquiring slots (specific take-off and landing timings) at the Washington Reagan National Airport and building the T5i terminal at New York's JFK Airport. Lower non-aircraft capital expense in 2015 will also help improve JetBlue's ROIC.
All in all, the revenue and cost-side measures that JetBlue is taking will likely boost its results in the coming quarters.
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Since its inception, JetBlue has relied on a low-cost operating model to offer lower fares relative to network carriers such as American ( AAL ), Delta ( DAL ) and United ( UAL ). In addition, JetBlue is equipping its A320s with sharklets - curved extensions at wingtips - which improve the lift that an airplane generates from surrounding air. But in the past few years, network carriers including American, United and Delta have lowered their operating costs by restructuring under bankruptcy protection.
|
Since its inception, JetBlue has relied on a low-cost operating model to offer lower fares relative to network carriers such as American ( AAL ), Delta ( DAL ) and United ( UAL ). See our complete analysis of JetBlue here JetBlue's Fleet Investments Will Reduce Its Operating Costs JetBlue is adding more Airbus A321s to its fleet. Mid & Small Cap | European Large & Mid Cap More Trefis Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Since its inception, JetBlue has relied on a low-cost operating model to offer lower fares relative to network carriers such as American ( AAL ), Delta ( DAL ) and United ( UAL ). See our complete analysis of JetBlue here JetBlue's Fleet Investments Will Reduce Its Operating Costs JetBlue is adding more Airbus A321s to its fleet. Through these measures, JetBlue estimates that growth in its non-fuel unit costs will come down to below 2% per year, from 3.8% per year in 2013.
|
Since its inception, JetBlue has relied on a low-cost operating model to offer lower fares relative to network carriers such as American ( AAL ), Delta ( DAL ) and United ( UAL ). We currently have a price estimate of $13 for JetBlue, around 10% below its current market price. But in the past few years, network carriers including American, United and Delta have lowered their operating costs by restructuring under bankruptcy protection.
|
8495.0
|
2014-12-15 00:00:00 UTC
|
American Airlines Group Merger Anniversary: What Challenges Lie Ahead?
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-merger-anniversary-what-challenges-lie-ahead-2014-12-15
|
nan
|
nan
|
On Dec. 9, 2013, American Airlines Group was officially formed from the merger of US Airways and American Airlines. Since then, the new airline has worked to integrate its operations as it moves toward realizing the efficiencies of operating as a single carrier.
One year after the merger, the challenges are far from over, with some of the most important events coming up late this year and in 2015.
Labor
When plans for the US Airways-American Airlines merger were drawn up, the companies knew labor would play a key role in the success of the tie-up. In fact, labor unions had already been working in support of the merger before the official agreement was announced.
Now, American Airlines Group is looking to establish contracts to cover workers from both the US Airways and American Airlines sides of the company so workers from each side can operate under the same terms instead of under contracts specific to either US Airways or American Airlines. Flight attendants were among the first groups to vote on a new contract, rejecting the offer last month by only 16 votes from more than 16,000 cast.
The contract, which contained $193 million in added value for flight attendants compared to the existing contracts, had been negotiated between the management of American Airlines Group and the Association of Professional Flight Attendants. However, the narrow rejection sent talks to binding arbitration; current estimates show flight attendants would only get a contract with $112 million in added value.
You might be wondering why the flight attendants voted against the negotiated contract. While there's no way to determine exactly why, some of the reasons put forth by flight attendants, the union, and analysts include:
The negotiated contract did not contain profit-sharing, which some other airlines provide. American Airlines Group is now producing record profits and flight attendants wanted a larger share.
Some flight attendants might have been unaware of the arbitration and thought a rejected contract could be renegotiated.
Concerns over work rules and other concessions granted from American Airlines' 2011 bankruptcy.
The hearing over the flight attendants' contract has already been held, with a decision from the arbitration panel expected in the near future.
American Airlines Group has also been working to seal a contract with its pilots, who are represented by the Allied Pilots Association. In this case, management and the union are still working on a deal, with both sides appearing to want to avoid arbitration. Investors should keep an eye on whether the two parties can reach an agreement on their own or whether the airline will take up its option of forcing arbitration.
Looking further ahead, management will also have to negotiate new contacts with the unions representing baggage handlers, mechanics, and other ground workers. Current expectations are that negotiations will begin in 2015 with the goal of developing a contract as soon as reasonably possible..
Tech integration
Next year, American Airlines Group will take another major step in integrating the company's operations by combining the two reservations systems. If everything goes smoothly, customers won't notice a thing -- though that same step caused technical issues resulting in flight cancellations for United Continental during its own merger just a few years ago.
American Airlines Group has decided on using travel industry technology specialist Sabre for the combined reservation system. This was expected, as American Airlines already uses the Sabre system.
Operating certificate
Despite trading under one company name, American Airlines and US Airways are still officially two separate airlines. But American Airlines Group expects next year to receive a single operating certificate for both airlines operating under the group's name.
Of note is that their cargo operations have already been combined under a single waybill. Obtaining a single operating certificate means American Airlines Group will finally be seen as one airline by regulators, leading to potential gains in efficiency in internal operations and interactions with those regulators.
Moving forward
American Airlines Group's first year since the merger has been a broad-based success. Record profits have been reported, operational integration is progressing smoothly, and the airline's stock has roughly doubled since Dec. 9, 2013.
But challenges remain that investors should keep an eye on, with special focuses on systems integration and labor contracts.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article American Airlines Group Merger Anniversary: What Challenges Lie Ahead? originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and has the following options: long January 2015 $17 calls on American Airlines Group, long January 2015 $32 calls on American Airlines Group, long January 2017 $25 calls on American Airlines Group, and long January 2016 $60 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
While there's no way to determine exactly why, some of the reasons put forth by flight attendants, the union, and analysts include: The negotiated contract did not contain profit-sharing, which some other airlines provide. If everything goes smoothly, customers won't notice a thing -- though that same step caused technical issues resulting in flight cancellations for United Continental during its own merger just a few years ago. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
|
But American Airlines Group expects next year to receive a single operating certificate for both airlines operating under the group's name. Obtaining a single operating certificate means American Airlines Group will finally be seen as one airline by regulators, leading to potential gains in efficiency in internal operations and interactions with those regulators. Alexander MacLennan owns shares of American Airlines Group and has the following options: long January 2015 $17 calls on American Airlines Group, long January 2015 $32 calls on American Airlines Group, long January 2017 $25 calls on American Airlines Group, and long January 2016 $60 calls on American Airlines Group.
|
Now, American Airlines Group is looking to establish contracts to cover workers from both the US Airways and American Airlines sides of the company so workers from each side can operate under the same terms instead of under contracts specific to either US Airways or American Airlines. But American Airlines Group expects next year to receive a single operating certificate for both airlines operating under the group's name. Alexander MacLennan owns shares of American Airlines Group and has the following options: long January 2015 $17 calls on American Airlines Group, long January 2015 $32 calls on American Airlines Group, long January 2017 $25 calls on American Airlines Group, and long January 2016 $60 calls on American Airlines Group.
|
The contract, which contained $193 million in added value for flight attendants compared to the existing contracts, had been negotiated between the management of American Airlines Group and the Association of Professional Flight Attendants. Current expectations are that negotiations will begin in 2015 with the goal of developing a contract as soon as reasonably possible.. Tech integration Next year, American Airlines Group will take another major step in integrating the company's operations by combining the two reservations systems. But American Airlines Group expects next year to receive a single operating certificate for both airlines operating under the group's name.
|
8496.0
|
2014-12-15 00:00:00 UTC
|
JetBlue to Gain from Route Expansion amid Rising Fleet Costs - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/jetblue-to-gain-from-route-expansion-amid-rising-fleet-costs-analyst-blog-2014-12-15
|
nan
|
nan
|
On Dec 12, 2014, we issued an updated research report on JetBlue Airways Corporation ( JBLU ). Low fuel prices coupled with increased demand for air travel will continue to boost profits for the company.
JetBlue delivered positive earnings surprise in only one quarter, with an average miss of 21.43%. The company reported third-quarter 2014 financial results wherein both the top and the bottom line missed the Zacks Consensus Estimate.
JetBlue is making continued progress with its product and service offering expansion on board as well as on ground to aid growth in ancillary revenues and enhance ticket pricing flexibility. Recently, the company teamed up with content providers like Coursera, FOX, HarperCollins Publishers, National Geographic and Rouxbe to deliver passengers more free content than any other U.S carrier. Meanwhile, the Fly-Fi Hub is the new gateway to JetBlue's Fly-Fi offering, the fastest Wi-Fi.
With a low cost structure, the company continues to successfully expand its network in major growth regions - Boston, Fort Lauderdale, the Caribbean and Latin America. The company has also initiated a daily non-stop service from Salt Lake City International Airport to Orlando International Airport. JetBlue flyers availing this new route will also enjoy unlimited free snacks and non-alcoholic drinks. To support this growth momentum, the carrier introduced new twice-weekly flights to Caribbean city, Curaçao. We believe adding such new routes will help enhance JetBlue's growth and strengthen its network against other group members.
However, escalating maintenance costs remains a major headwind for the company and a large part of this increase can be attributed to the higher costs associated with the use of older E190 fleet and CF34 engines. Additionally, higher depreciation owing to increased IT infrastructure spending and landing fees could drag margins in the upcoming quarters.
Although JetBlue has won slots at DCA, its rival Southwest Airlines Co. ( LUV ), has grabbed an even bigger chunk of slots at the same airport. Southwest Airlines has decided to extend daily departures from DCA to 44 from the current 17, thus increasing its operations from the airport more than 2.5 times. We believe JetBlue will face stiff price competition in DCA owing Southwest Airlines' extended presence.
JetBlue currently carries a Zacks Rank #3 (Hold). Better-ranked stocks which belong to the same industry include Alaska Air Group, Inc. ( ALK ) and American Airlines Group Inc. ( AAL ). Both the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Better-ranked stocks which belong to the same industry include Alaska Air Group, Inc. ( ALK ) and American Airlines Group Inc. ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. JetBlue is making continued progress with its product and service offering expansion on board as well as on ground to aid growth in ancillary revenues and enhance ticket pricing flexibility.
|
Better-ranked stocks which belong to the same industry include Alaska Air Group, Inc. ( ALK ) and American Airlines Group Inc. ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks which belong to the same industry include Alaska Air Group, Inc. ( ALK ) and American Airlines Group Inc. ( AAL ). Although JetBlue has won slots at DCA, its rival Southwest Airlines Co. ( LUV ), has grabbed an even bigger chunk of slots at the same airport.
|
Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks which belong to the same industry include Alaska Air Group, Inc. ( ALK ) and American Airlines Group Inc. ( AAL ). With a low cost structure, the company continues to successfully expand its network in major growth regions - Boston, Fort Lauderdale, the Caribbean and Latin America.
|
8497.0
|
2014-12-12 00:00:00 UTC
|
Delta Air Lines Plans 5-Tier Pricing System to Boost Revenues - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/delta-air-lines-plans-5-tier-pricing-system-to-boost-revenues-analyst-blog-2014-12-12
|
nan
|
nan
|
In a bid to boost its top line, improve customer satisfaction and convenience and counter competition, Delta Air Lines, Inc. ( DAL ) has announced that it will introduce a new five-tiered seating plan from Mar 1, 2015. This will replace the existing basic first class and coach seating schemes.
As a result of the modification, customers will get to choose from a broader set of options. They will be able to choose from among Delta One, First Class and Delta Comfort+ which offer premium amenities. In addition, passengers can also purchase Main Cabin and Basic Economy tickets.
Delta One (formerly Business Elite) tickets will be the most expensive. Passengers buying tickets for this class will enjoy personalized service and luxurious amenities on long haul international and most cross-country flights between New York-JFK and Los Angeles or San Francisco. Needless to say, passengers in this category of seats will enjoy the most legroom.
The second most expensive category is First Class. Passengers in this tier will get most of the benefits available to Delta One travelers except for full flat-bed seats. This tier will be available on short-haul international and domestic flights of Delta.
The third in line is Comfort Plus, which will be available on all two cabin aircraft operated by Delta across the globe. Passengers in this tier will enjoy features such as priority boarding (after passengers of the above two tiers), quilted seat covers, beverage options for adult fliers and dedicated overhead bin space.
The two lesser-privileged tiers are Main Cabin and Basic. Passengers buying Main Cabin tickets will have the freedom to select seats while purchasing their tickets. Passengers buying Basic Economy (the cheapest under the new scheme) tickets will enjoy the least benefits.
Apart from Delta, other carriers like American Airlines Group ( AAL ) are also striving to enhance the overall flying experience. American Airlines recently announced that it will spend more than $2 billion to upgrade planes and related facilities. Notably, such schemes to improve customer experience entail large investments. Airline companies are nowadays increasingly undertaking such initiatives - this reflects their strong financial health.
Zacks Rank
Delta Air Lines currently carries a Zacks Rank #2 (Buy). Better-ranked stocks in the airline space are Southwest Airlines ( LUV ) and Alaska Air Group, Inc. ( ALK ). Both stocks carry a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DELTA AIR LINES (DAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apart from Delta, other carriers like American Airlines Group ( AAL ) are also striving to enhance the overall flying experience. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Passengers buying tickets for this class will enjoy personalized service and luxurious amenities on long haul international and most cross-country flights between New York-JFK and Los Angeles or San Francisco.
|
Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from Delta, other carriers like American Airlines Group ( AAL ) are also striving to enhance the overall flying experience. Zacks Rank Delta Air Lines currently carries a Zacks Rank #2 (Buy).
|
Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from Delta, other carriers like American Airlines Group ( AAL ) are also striving to enhance the overall flying experience. Passengers in this tier will enjoy features such as priority boarding (after passengers of the above two tiers), quilted seat covers, beverage options for adult fliers and dedicated overhead bin space.
|
Apart from Delta, other carriers like American Airlines Group ( AAL ) are also striving to enhance the overall flying experience. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. The two lesser-privileged tiers are Main Cabin and Basic.
|
8498.0
|
2014-12-10 00:00:00 UTC
|
Pre-Market Most Active for Dec 10, 2014 : KB, FCAU, TVIX, GSK, BHP, AAPL, S, TMUS, FRAN, XIV, QQQ, AAL
|
AAL
|
https://www.nasdaq.com/articles/pre-market-most-active-dec-10-2014-kb-fcau-tvix-gsk-bhp-aapl-s-tmus-fran-xiv-qqq-aal-2014
|
nan
|
nan
|
The NASDAQ 100 Pre-Market Indicator is up .51 to 4,295.18. The total Pre-Market volume is currently 2,351,183 shares traded.
The following are the most active stocks for the pre-market session :
KB Financial Group Inc ( KB ) is -0.5702 at $34.80, with 516,130 shares traded. As reported by Zacks, the current mean recommendation for KB is in the "strong buy range".
Fiat Chrysler Automobiles N.V. ( FCAU ) is +0.1 at $12.77, with 334,765 shares traded. FCAU's current last sale is 169.14% of the target price of $7.55.
VelocityShares Daily 2X VIX Short Term ETN ( TVIX ) is +0.06 at $2.30, with 308,070 shares traded.
GlaxoSmithKline PLC ( GSK ) is -0.83 at $43.28, with 287,071 shares traded. GSK's current last sale is 82.83% of the target price of $52.25.
BHP Billiton Limited ( BHP ) is -0.4 at $48.17, with 261,565 shares traded., following a 52-week high recorded in prior regular session.
Apple Inc. ( AAPL ) is +0.28 at $114.40, with 206,941 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Sprint Corporation ( S ) is -0.11 at $4.46, with 187,899 shares traded., following a 52-week high recorded in prior regular session.
T-Mobile US, Inc. ( TMUS ) is +0.15 at $26.00, with 179,964 shares traded. As reported by Zacks, the current mean recommendation for TMUS is in the "buy range".
Francesca's Holdings Corporation ( FRAN ) is -0.88 at $14.25, with 115,683 shares traded. As reported in the last short interest update the days to cover for FRAN is 12.195424; this calculation is based on the average trading volume of the stock.
VelocityShares Daily Inverse VIX Short Term ETN ( XIV ) is -0.5 at $37.38, with 107,287 shares traded.
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.11 at $104.85, with 104,654 shares traded.
American Airlines Group, Inc. ( AAL ) is +1.24 at $49.55, with 98,865 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group, Inc. ( AAL ) is +1.24 at $49.55, with 98,865 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". VelocityShares Daily 2X VIX Short Term ETN ( TVIX ) is +0.06 at $2.30, with 308,070 shares traded.
|
American Airlines Group, Inc. ( AAL ) is +1.24 at $49.55, with 98,865 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The following are the most active stocks for the pre-market session : KB Financial Group Inc ( KB ) is -0.5702 at $34.80, with 516,130 shares traded.
|
American Airlines Group, Inc. ( AAL ) is +1.24 at $49.55, with 98,865 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The total Pre-Market volume is currently 2,351,183 shares traded.
|
American Airlines Group, Inc. ( AAL ) is +1.24 at $49.55, with 98,865 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up .51 to 4,295.18.
|
8499.0
|
2014-12-10 00:00:00 UTC
|
Spirit Airlines Falls 12.67% on Analyst Downgrade - Analyst Blog
|
AAL
|
https://www.nasdaq.com/articles/spirit-airlines-falls-12.67-on-analyst-downgrade-analyst-blog-2014-12-10
|
nan
|
nan
|
Shares of low cost carrier, Spirit Airlines ' ( SAVE ) fell12.67% to close the trading session on Dec 9 at $73.77. The decline came after research firm Raymond James downgraded the airline to "market perform" from "outperform." The research firm downgraded its rating on the stock after the company issued a disappointing outlook for the fourth quarter of 2014.
According to Raymond James, the low cost airlines will continue to suffer from weakness in total revenue per available seat mile (TRASM) -- a measure of unit revenue-in the near-term due to soft revenues on Dallas flights
Raymond James believes that the Spirit Airlines' new operating margin guidance range of 18%-19%, which is 0.5% lower than its old guidance of 18.5%-19.5%, implies weakness in TRASM. RJ believes that the TRASM pressure at Spirit Airlines is mainly attributable to large capacity additions and low introductory fares in Dallas (accounting for almost 8% of Spirit's total seat capacity) after the expiration of the Wright Amendment in Oct 2014. Spirit Airlines said that it is facing competition primarily from Southwest Airlines ( LUV ) following the expiration of the Wright Amendment in Oct 2014.
The Wright Amendment, established in 1979, originally governed traffic at Dallas Love Field (Southwest's home base) and restricted non-stop flights from Love Field to destinations only in Texas and the neighboring states.
Spirit Airlines' statement that it was witnessing pricing pressures due to the industry's tendency to utilize the falling oil prices to lower air fares and attract passengers and undermining profits caused most airline stocks to decline.
.
As a result of the sell-off, share prices of most other airline stocks such as American Airlines Group Inc. ( AAL ), Southwest Airlines Co., United Continental Holdings, Inc. ( UAL ) and Delta Air Lines also declined significantly on Dec 9.
In spite of the negatives, Spirit Airlines witnessed an increase in air traffic in the month of November. Traffic - measured in revenue passenger miles (RPMs) - came in at 11.98 billion, up 15.7% from 10.35 billion recorded in the comparable month a year ago. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 17.9% to 14.59 billion. Meanwhile, the load factor or percentage of seats filled by passengers fell to 82.1% from 83.7% in Nov 2013.
Meanwhile, it is to be seen how successful Spirit Airlines is maintaining significantly lower ticket rates, as compared to other carriers, despite such intense competition.
Spirit Airlines sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As a result of the sell-off, share prices of most other airline stocks such as American Airlines Group Inc. ( AAL ), Southwest Airlines Co., United Continental Holdings, Inc. ( UAL ) and Delta Air Lines also declined significantly on Dec 9. Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of low cost carrier, Spirit Airlines ' ( SAVE ) fell12.67% to close the trading session on Dec 9 at $73.77.
|
As a result of the sell-off, share prices of most other airline stocks such as American Airlines Group Inc. ( AAL ), Southwest Airlines Co., United Continental Holdings, Inc. ( UAL ) and Delta Air Lines also declined significantly on Dec 9. Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. According to Raymond James, the low cost airlines will continue to suffer from weakness in total revenue per available seat mile (TRASM) -- a measure of unit revenue-in the near-term due to soft revenues on Dallas flights Raymond James believes that the Spirit Airlines' new operating margin guidance range of 18%-19%, which is 0.5% lower than its old guidance of 18.5%-19.5%, implies weakness in TRASM.
|
As a result of the sell-off, share prices of most other airline stocks such as American Airlines Group Inc. ( AAL ), Southwest Airlines Co., United Continental Holdings, Inc. ( UAL ) and Delta Air Lines also declined significantly on Dec 9. Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. According to Raymond James, the low cost airlines will continue to suffer from weakness in total revenue per available seat mile (TRASM) -- a measure of unit revenue-in the near-term due to soft revenues on Dallas flights Raymond James believes that the Spirit Airlines' new operating margin guidance range of 18%-19%, which is 0.5% lower than its old guidance of 18.5%-19.5%, implies weakness in TRASM.
|
As a result of the sell-off, share prices of most other airline stocks such as American Airlines Group Inc. ( AAL ), Southwest Airlines Co., United Continental Holdings, Inc. ( UAL ) and Delta Air Lines also declined significantly on Dec 9. Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Spirit Airlines said that it is facing competition primarily from Southwest Airlines ( LUV ) following the expiration of the Wright Amendment in Oct 2014.
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.