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8500.0
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2014-12-09 00:00:00 UTC
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United Continental November Traffic Down, Domestic Soft - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/united-continental-november-traffic-down-domestic-soft-analyst-blog-2014-12-09
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United Continental Holdings Inc. ( UAL ), the parent company of United Airlines, reported a marginal dip in its Nov 2014 traffic due to a fall in domestic travel. Consolidated airline traffic - measured in revenue passenger miles or RPMs, which implies revenue generated per mile per passenger - declined 0.3% year over year to 19.28 billion.
The carrier's domestic traffic declined 3.7% year over year in the month of November. However, traffic on the international front improved 3.6%. Growth in Latin American traffic offset decline in the Atlantic division.
Consolidated capacity (or available seat miles/ASMs) for the month came in at 19.13 billion, down 0.4% from Nov 2013, hurt by domestic weakness. The load factor (percentage of seats filled by passengers) improved to 79.9% from 79.8%, in the same month last year. The company registered a completion factor of 99.3%, with nearly 80.6% of flights on schedule.
During the first eleven months of 2014, United Continental generated RPMs of 188.67 billion (up 0.2% year over year) and ASMs of 225.8 billion (up 0.1% year over year), leading to a load factor of 83.6% (up 10 basis points). United Continental was not the only carrier to come out with November traffic report: peers Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) also reported traffic data for the month. While Southwest's numbers were encouraging, the data released by American Airlines turned out to be disappointing.
Though disappointed by United Continental's soft November traffic, we are optimistic about the company's efforts to expand by adding more flights. Moreover, United Continental, like many of its peers, continues to benefit from weak oil prices .
Zacks Rank
United Continental currently carries a Zacks Rank #3 (Hold). A better ranked stock in the airline space is Alaska Air Group, Inc. ( ALK ), sporting 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
UNITED CONT HLD (UAL): 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.
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United Continental was not the only carrier to come out with November traffic report: peers Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) also reported traffic data for the month. Click to get this free report UNITED CONT HLD (UAL): 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. Consolidated capacity (or available seat miles/ASMs) for the month came in at 19.13 billion, down 0.4% from Nov 2013, hurt by domestic weakness.
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United Continental was not the only carrier to come out with November traffic report: peers Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) also reported traffic data for the month. Click to get this free report UNITED CONT HLD (UAL): 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. Consolidated airline traffic - measured in revenue passenger miles or RPMs, which implies revenue generated per mile per passenger - declined 0.3% year over year to 19.28 billion.
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United Continental was not the only carrier to come out with November traffic report: peers Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) also reported traffic data for the month. Click to get this free report UNITED CONT HLD (UAL): 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. During the first eleven months of 2014, United Continental generated RPMs of 188.67 billion (up 0.2% year over year) and ASMs of 225.8 billion (up 0.1% year over year), leading to a load factor of 83.6% (up 10 basis points).
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United Continental was not the only carrier to come out with November traffic report: peers Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) also reported traffic data for the month. Click to get this free report UNITED CONT HLD (UAL): 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 carrier's domestic traffic declined 3.7% year over year in the month of November.
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8501.0
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2014-12-09 00:00:00 UTC
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FedEx Corporation (FDX) Ex-Dividend Date Scheduled for December 10, 2014
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AAL
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https://www.nasdaq.com/articles/fedex-corporation-fdx-ex-dividend-date-scheduled-december-10-2014-2014-12-09
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FedEx Corporation ( FDX ) will begin trading ex-dividend on December 10, 2014. A cash dividend payment of $0.2 per share is scheduled to be paid on January 02, 2015. Shareholders who purchased FDX stock prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that FDX has paid the same dividend. At the current stock price of $181.53, the dividend yield is .44%.
The previous trading day's last sale of FDX was $181.53, representing a -1.08% decrease from the 52 week high of $183.51 and a 41.63% increase over the 52 week low of $128.17.
FDX is a part of the Transportation sector, which includes companies such as Delta Air Lines, Inc. ( DAL ) and American Airlines Group, Inc. ( AAL ). FDX's current earnings per share, an indicator of a company's profitability, is $7.36. Zacks Investment Research reports FDX's forecasted earnings growth in 2015 as 33.3%, compared to an industry average of -15.3%.
For more information on the declaration, record and payment dates, visit the FDX Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to FDX through an Exchange Traded Fund [ETF]?
The following ETF(s) have FDX as a top-10 holding:
SPDR S&P Transportation ETF ( XTN )
iShares Dow Jones Transportation Average Index Fund ( IYT )
Guggenheim S&P 500 Equal Weight Industrials ETF ( RGI ).
The top-performing ETF of this group is XTN with an increase of 13.77% over the last 100 days. It also has the highest percent weighting of FDX at 2.6%.
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.
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FDX is a part of the Transportation sector, which includes companies such as Delta Air Lines, Inc. ( DAL ) and American Airlines Group, Inc. ( AAL ). Shareholders who purchased FDX stock prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports FDX's forecasted earnings growth in 2015 as 33.3%, compared to an industry average of -15.3%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. FDX is a part of the Transportation sector, which includes companies such as Delta Air Lines, Inc. ( DAL ) and American Airlines Group, Inc. ( AAL ). The following ETF(s) have FDX as a top-10 holding: SPDR S&P Transportation ETF ( XTN ) iShares Dow Jones Transportation Average Index Fund ( IYT ) Guggenheim S&P 500 Equal Weight Industrials ETF ( RGI ).
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FDX is a part of the Transportation sector, which includes companies such as Delta Air Lines, Inc. ( DAL ) and American Airlines Group, Inc. ( AAL ). Shareholders who purchased FDX 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 FDX Dividend History page.
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FDX is a part of the Transportation sector, which includes companies such as Delta Air Lines, Inc. ( DAL ) and American Airlines Group, Inc. ( AAL ). A cash dividend payment of $0.2 per share is scheduled to be paid on January 02, 2015. Shareholders who purchased FDX stock prior to the ex-dividend date are eligible for the cash dividend payment.
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8502.0
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2014-12-09 00:00:00 UTC
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Hawaiian Airlines November Traffic Up on Favorable Factors - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/hawaiian-airlines-november-traffic-up-on-favorable-factors-analyst-blog-2014-12-09
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nan
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nan
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Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. ( HA ), posted a significant rise in air traffic for the month of November this year. Traffic - measured in revenue passenger miles (RPMs) - came in at 1.11 billion, up 4.4% from 1.06 billion recorded in the comparable month a year ago. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 2.9% to 1.38 billion. Meanwhile, the load factor or percentage of seats filled by passengers increased to 80.3% from 79.2% in Nov 2013.
The onset of the holiday season along with an improving U.S. economy has resulted in operating strength for Hawaiian Airlines.
Recently, Hawaiian Airlines announced its intention to expand capacity by adding nearly 10 seats to its 18 Boeing 717 carriers. Presently, Boeing 717s offer 123 seats while a few of its flights have 118 sitting capacity. Thus, the company has decided to maintain a minimum of 128 seats for all its aircraft.
Increased demand for air travels, mainly during the holiday season, has encouraged Hawaiian Airlines to increase seating capacity which we believe will further boost the company's top and bottom line.
In addition, Hawaiian Airlines will be flagging off seasonal non-stop flights between Oakland and Los Angeles, and Lihu'e, Kaua'i and Kona, Hawai'i Island beginning May 20, 2015. Furthermore, the carrier will operate second daily seasonal non-stop flights between Los Angeles and Maui beginning Jun 11, 2015.
Hence, we believe that such positives will continue to drive the carrier's performance going forward.
Other Stocks to Consider
Hawaiian Holdings Inc. currently sports a Zacks Rank #1 (Strong Buy) while other stocks having the same Zacks Rank 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
HAWAIIAN HLDGS (HA): 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.
|
Other Stocks to Consider Hawaiian Holdings Inc. currently sports a Zacks Rank #1 (Strong Buy) while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Southwest Airlines Co. ( LUV ). Click to get this free report HAWAIIAN HLDGS (HA): 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. Recently, Hawaiian Airlines announced its intention to expand capacity by adding nearly 10 seats to its 18 Boeing 717 carriers.
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Other Stocks to Consider Hawaiian Holdings Inc. currently sports a Zacks Rank #1 (Strong Buy) while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Southwest Airlines Co. ( LUV ). Click to get this free report HAWAIIAN HLDGS (HA): 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.
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Other Stocks to Consider Hawaiian Holdings Inc. currently sports a Zacks Rank #1 (Strong Buy) while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Southwest Airlines Co. ( LUV ). Click to get this free report HAWAIIAN HLDGS (HA): 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. Increased demand for air travels, mainly during the holiday season, has encouraged Hawaiian Airlines to increase seating capacity which we believe will further boost the company's top and bottom line.
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Other Stocks to Consider Hawaiian Holdings Inc. currently sports a Zacks Rank #1 (Strong Buy) while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Southwest Airlines Co. ( LUV ). Click to get this free report HAWAIIAN HLDGS (HA): 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. Presently, Boeing 717s offer 123 seats while a few of its flights have 118 sitting capacity.
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8503.0
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2014-12-09 00:00:00 UTC
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Southwest Airlines' November Traffic Up on Thanksgiving - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-november-traffic-up-on-thanksgiving-analyst-blog-2014-12-09
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Dallas, TX-based Southwest Airlines Co. ( LUV ) witnessed an increase in air traffic in the month of November. Traffic - measured in revenue passenger miles (RPMs) - came in at 10.90 billion, up 4.2% from 10.46 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 10.67 billion. Meanwhile, the load factor or percentage of seats filled by passengers increased to 80.1% from 78.6% in Nov 2013.
For the first eleven months of this year, Southwest Airlines generated RPMs of 98.8 billion (up 3.6% year over year) and ASMs of 119.85 billion (up 0.3% year over year). Load factor, however, moved down to 82.4%, reflecting a year-over-year decline of 260 basis points.
Notably, Southwest Airlines witnessed considerable growth in PRASM (passenger revenue per available seat mile) in the month mainly driven by significant increase in air travels during the Thanksgiving season. Airlines for America (A4A) predicted a 1.5% increase in the number of flyers during Thanksgiving this year. According to the forecast, U.S. airlines will transport 24.6 million passengers in the Nov 21-Dec 2 period. However, the rise in air traffic was slightly dampened by the Northeast snowstorm Cato, which disrupted air travels even during Thanksgiving as most flights were delayed or cancelled.
For Nov 2014, PRASM have increased in the band of 4 to 6% from Nov 2013. The company also expects PRASM for the fourth quarter to rise in the range of 1-2% from the prior-year quarter.
Recently, Southwest Airlines signed a four-year employee-friendly deal with its customer service agents and customer representatives. The new agreement is aimed at improving employee welfare by including provisions for pay raise and performance-related bonus payments. Southwest Airlines, which is highly unionized, has over 80% of its employees represented by labor unions. Hence, the successful implementation of the deal will help airline staff to improve performance.
Other Stocks to Consider
Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy) while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) 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
SOUTHWEST AIR (LUV): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): 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.
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Other Stocks to Consider Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy) while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): 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. Dallas, TX-based Southwest Airlines Co. ( LUV ) witnessed an increase in air traffic in the month of November.
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Other Stocks to Consider Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy) while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): 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.
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Other Stocks to Consider Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy) while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): 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. For the first eleven months of this year, Southwest Airlines generated RPMs of 98.8 billion (up 3.6% year over year) and ASMs of 119.85 billion (up 0.3% year over year).
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Other Stocks to Consider Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy) while other stocks having the same Zacks Rank are American Airlines Group ( AAL ), Alaska Air Group, Inc. ( ALK ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): 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) - came in at 10.90 billion, up 4.2% from 10.46 billion recorded in the comparable month a year ago.
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8504.0
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2014-12-09 00:00:00 UTC
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American Airlines Announces $2B Upgrade Plan - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-announces-%242b-upgrade-plan-analyst-blog-2014-12-09
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nan
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nan
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In a bid to enhance customer satisfaction and keep up with its competitors, premier passenger carrier American Airlines Group Inc. ( AAL ) announced that it will invest more than $2 billion. We remind investors that the company was created following the merger of American Airlines and U.S. Airways Group Inc. in Dec 2013 (Read More: American Airlines to Merge with U.S. Airways ). The integration process is underway.
The decision to upgrade planes and hubs to improve the flying experience of its passengers was announced to mark one year of the completion of the merger. The hubs to be upgraded include the busy Charlotte Douglas International Airport. Post merger, American Airlines has been utilizing the hub to operate most of its flights.
The carrier will invest the above mentioned amount to renovate airport lounges, modernize ticket counters apart from deploying satellite-based internet access on its international flights. The company is also looking to make certain other changes to improve the in-flight experience, primarily to attract the high-paying frequent flyers.
To speed up the check-in procedure, the carrier plans to introduce enhanced and updated kiosks. Further, the company intends to add more entertainment features, enhance complimentary food offerings apart from investing in lie-flat seats and Wi-Fi service on its international flights. In addition, the carrier will introduce work tables with power outlets to charge passengers' devices in waiting areas as part of the upgrade.
Moreover, American Airlines intends to modernize its ageing fleet to enhance the flying experience and remain afloat in the highly competitive airline space. The carrier stated that it boasts the youngest fleet among U.S.-based carriers and should add almost 100 planes by Dec 31.
The carrier also intends to take delivery of 112 and 84 planes in 2015 and 2016, respectively. We note that the carrier has been making substantial profits since the merger as is evident from the significant investment plan.
Apart from American Airlines, U.S.-based Delta Air Lines ( DAL ) is also striving to enhance the flying experience. The carrier recently announced that it will offer best-in-class options in addition to new multi-cabin experiences. From Mar 1, 2015, passengers will have the option to choose from five products with Delta One, First Class and Delta Comfort+ offering premium amenities.
Disappointing Traffic Numbers
In a separate development, the American Airlines Group announced disappointing traffic numbers for Nov 2014 due to soft international data. Airline traffic - measured in revenue passenger miles or RPMs, which implies revenue generated per mile per passenger - declined 0.5% year over year to 16.2 billion.
The carrier's international traffic declined 3.1% year over year in November. Traffic on the domestic front was flat year over year.
Capacity (or available seat miles/ASMs) for the month came in at 20.8 billion, up 0.9% from Nov 2013. The load factor (percentage of seats filled by passengers) declined to 77.7% from 78.8%, in the same month last year. The carrier expects its consolidated passenger revenue per available seat mile to be approximately down 1% to up 1% in the final quarter of the year compared with the year-ago quarter.
Zacks Rank
American Airlines Group sports a Zacks Rank #1 (Strong Buy). Equally well ranked stocks in the airline space include 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
AMER AIRLINES (AAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): 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.
|
In a bid to enhance customer satisfaction and keep up with its competitors, premier passenger carrier American Airlines Group Inc. ( AAL ) announced that it will invest more than $2 billion. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier will invest the above mentioned amount to renovate airport lounges, modernize ticket counters apart from deploying satellite-based internet access on its international flights.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. In a bid to enhance customer satisfaction and keep up with its competitors, premier passenger carrier American Airlines Group Inc. ( AAL ) announced that it will invest more than $2 billion. Disappointing Traffic Numbers In a separate development, the American Airlines Group announced disappointing traffic numbers for Nov 2014 due to soft international data.
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In a bid to enhance customer satisfaction and keep up with its competitors, premier passenger carrier American Airlines Group Inc. ( AAL ) announced that it will invest more than $2 billion. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Airline traffic - measured in revenue passenger miles or RPMs, which implies revenue generated per mile per passenger - declined 0.5% year over year to 16.2 billion.
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In a bid to enhance customer satisfaction and keep up with its competitors, premier passenger carrier American Airlines Group Inc. ( AAL ) announced that it will invest more than $2 billion. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. The decision to upgrade planes and hubs to improve the flying experience of its passengers was announced to mark one year of the completion of the merger.
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8505.0
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2014-12-08 00:00:00 UTC
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Southwest Airlines Inks Employee-friendly Deal with IAM - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-inks-employee-friendly-deal-with-iam-analyst-blog-2014-12-08
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nan
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nan
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Southwest Airlines Co. 's ( LUV ) shares gained on Dec 4, following the prior-day announcement of a four-year employee-friendly deal with its customer service agents and customer representatives. Overall, shares of the low cost carrier have gained marginally (0.2%) since the announcement. The customer service agents and customer representatives are represented by the International Association of Machinists and Aerospace Workers (IAM).
The new agreement is aimed to improve employee welfare by including provisions for pay raise and performance-related bonus payments. Southwest Airlines, which is highly unionized, has more than 80% of its employees represented by labor unions. It is thus no stranger to labor related problems.
The carrier is currently in talks with 50% of its 12 unions. The IAM members' decision to vote in favor of the four-year deal removes at least one overhang on the shares. We believe investors will remain glued to updates on the progress made by Southwest Airlines in its talks with the other unions.
The relation between airline companies and labor unions are governed by the Railway Labor Act, which states that a collective bargaining agreement between an airline and a labor union does not expire; it instead becomes amendable as of a stated date. Failure to amend terms and conditions suitably may lead to work stoppages or strikes and thereby hamper operations.
On the bright side, Southwest Airlines, like most of its peers in the airline industry, is benefiting substantially reduced operating expenses owing to weak oil prices .
Zacks Rank
Southwest Airlines currently carries a Zacks Rank # 1 (Strong Buy). Equally well ranked stocks in the airline space include Alaska Air Group, Inc. ( ALK ), American Airlines Group Inc. ( AAL ) and Spirit Airlines, Inc. ( SAVE ).
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
SPIRIT AIRLINES (SAVE): 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.
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Equally well ranked stocks in the airline space include Alaska Air Group, Inc. ( ALK ), American Airlines Group Inc. ( AAL ) and Spirit Airlines, Inc. ( SAVE ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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 new agreement is aimed to improve employee welfare by including provisions for pay raise and performance-related bonus payments.
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Equally well ranked stocks in the airline space include Alaska Air Group, Inc. ( ALK ), American Airlines Group Inc. ( AAL ) and Spirit Airlines, Inc. ( SAVE ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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.
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Equally well ranked stocks in the airline space include Alaska Air Group, Inc. ( ALK ), American Airlines Group Inc. ( AAL ) and Spirit Airlines, Inc. ( SAVE ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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 relation between airline companies and labor unions are governed by the Railway Labor Act, which states that a collective bargaining agreement between an airline and a labor union does not expire; it instead becomes amendable as of a stated date.
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Equally well ranked stocks in the airline space include Alaska Air Group, Inc. ( ALK ), American Airlines Group Inc. ( AAL ) and Spirit Airlines, Inc. ( SAVE ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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. Southwest Airlines Co. 's ( LUV ) shares gained on Dec 4, following the prior-day announcement of a four-year employee-friendly deal with its customer service agents and customer representatives.
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8506.0
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2014-12-05 00:00:00 UTC
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Delta Flags off Honolulu Flight from Minneapolis-St. Paul - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/delta-flags-off-honolulu-flight-from-minneapolis-st.-paul-analyst-blog-2014-12-05
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nan
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nan
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Delta Air Lines ( DAL ) plans to initiate seasonal flights from Minneapolis-St. Paul International Airport to Honolulu International Airport starting Oct 25, 2015 through Mar 26, 2016.
Delta will use The Boeing Co.'s ( BA ) wide bodied 767-300ER aircraft to serve busy travel periods. It will be a 225-seat passenger aircraft with 25 full flat-bed seats in BusinessElite, along with 29 regular ones in Economy Comfort and 171 in the Economy class.
On the entertainment front, Delta has arranged for a wide range of movies, TV shows and music for its passengers.
Meanwhile, the flights connect travelers with popular holiday destinations along with offering various other travel options. With the inclusion of Honolulu, Delta will run 20 peak-day departures from the U.S. and Japan to four Hawaiian destinations, thus allowing the premier passenger carrier to fortify its position in the region.
Recently, Delta reported growth in traffic for the month of Nov 2014 with revenue passenger miles or RPMs increasing 5% annually. Passenger revenue per available seat mile (PRASM) improved 5.5% year over year. Meanwhile, consolidated capacity (or available seat miles/ASMs) for the month, increased 3.6% from Nov 2013 to 18.4 billion.
The operating performance of Delta is expected to improve further with the holiday season just around the corner when air travels tend to increase substantially.
Delta currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space include American Airlines Group Inc. ( AAL ) and Spirit Airlines ( SAVE ). Both these 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
BOEING CO (BA): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): 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.
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Better-ranked stocks in the airline space include American Airlines Group Inc. ( AAL ) and Spirit Airlines ( SAVE ). Click to get this free report BOEING CO (BA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. With the inclusion of Honolulu, Delta will run 20 peak-day departures from the U.S. and Japan to four Hawaiian destinations, thus allowing the premier passenger carrier to fortify its position in the region.
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Click to get this free report BOEING CO (BA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the airline space include American Airlines Group Inc. ( AAL ) and Spirit Airlines ( SAVE ). Delta Air Lines ( DAL ) plans to initiate seasonal flights from Minneapolis-St. Paul International Airport to Honolulu International Airport starting Oct 25, 2015 through Mar 26, 2016.
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Click to get this free report BOEING CO (BA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the airline space include American Airlines Group Inc. ( AAL ) and Spirit Airlines ( SAVE ). Recently, Delta reported growth in traffic for the month of Nov 2014 with revenue passenger miles or RPMs increasing 5% annually.
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Click to get this free report BOEING CO (BA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the airline space include American Airlines Group Inc. ( AAL ) and Spirit Airlines ( SAVE ). Meanwhile, the flights connect travelers with popular holiday destinations along with offering various other travel options.
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8507.0
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2014-12-05 00:00:00 UTC
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United Continental Hits 52-Week High on Estimate Revisions - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/united-continental-hits-52-week-high-on-estimate-revisions-analyst-blog-2014-12-05
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nan
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nan
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Shares of United Continental Holdings Inc. ( UAL ) hit a new 52-week high of $63.15 yesterday, ending the trading session a little lower at $61.75. The stock reflects a solid year-to-date return of more than 60%.
Ever since the company announced robust third-quarter 2014 earnings on Oct 23, shares have jumped more than 25%. United Continental Holdings has delivered positive earnings surprises in all of the last four quarters, with an average beat of 6.4%. The company clocked a positive earnings surprise of 1.9% in the third quarter.
United Continental posted adjusted earnings of $2.75 per share, ahead of the Zacks Consensus Estimate of $2.70 in the third quarter.
Despite the strong price appreciation, the stock still has room for plenty of upside, given the positive estimate revisions witnessed over the past two months. In the said period, the Zacks Consensus Estimate increased 11.5% to $5.04 for 2014 and 11.9% to $6.77 for 2015.
Going ahead, the company plans to implement efficient network and fleet management strategies to enhance its revenues. It is also demonstrating excellent cost control efforts. United Continental is successfully expanding on-board products and services on both domestic and international routes to perk up ancillary revenue contributions. In addition, expansion of its global and domestic route network through the introduction of non-stop flights is expected to boost the company's future performance.
Other Stocks to Consider
United Continental Holdings currently bears a Zacks Rank #2 (Buy). Some other airline stocks that warrant a look are American Airlines Group Inc. ( AAL ), Spirit Airlines, Inc. ( SAVE ) and Southwest Airlines Co. ( LUV ). All these 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
UNITED CONT HLD (UAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): 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.
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Some other airline stocks that warrant a look are American Airlines Group Inc. ( AAL ), Spirit Airlines, Inc. ( SAVE ) and Southwest Airlines Co. ( LUV ). Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Despite the strong price appreciation, the stock still has room for plenty of upside, given the positive estimate revisions witnessed over the past two months.
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Some other airline stocks that warrant a look are American Airlines Group Inc. ( AAL ), Spirit Airlines, Inc. ( SAVE ) and Southwest Airlines Co. ( LUV ). Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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.
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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 American Airlines Group Inc. ( AAL ), Spirit Airlines, Inc. ( SAVE ) and Southwest Airlines Co. ( LUV ). United Continental posted adjusted earnings of $2.75 per share, ahead of the Zacks Consensus Estimate of $2.70 in the third quarter.
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Some other airline stocks that warrant a look are American Airlines Group Inc. ( AAL ), Spirit Airlines, Inc. ( SAVE ) and Southwest Airlines Co. ( LUV ). Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental posted adjusted earnings of $2.75 per share, ahead of the Zacks Consensus Estimate of $2.70 in the third quarter.
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8508.0
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2014-12-04 00:00:00 UTC
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UTi Worldwide Inc. (UTIW) in Focus: Stock Soars 20.3% - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/uti-worldwide-inc.-utiw-in-focus%3A-stock-soars-20.3-tale-of-the-tape-2014-12-04
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nan
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nan
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UTi Worldwide Inc. ( UTIW ) was a big mover last session, as the company saw its shares rise by over 20% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This reverses the recent trend of the company, as the stock is now trading above the volatile price range of $10.87 to $11.80 in the past one-month time frame.
None of the estimates for this air delivery & freight services stock were revised over the past 30 days. The Zacks Consensus Estimate also remained unchanged over the same time frame. Yesterday's price action is encouraging though, so make sure to keep a close watch on this firm in the near future.
UTi Worldwide currently carries a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
Some better-ranked stocks in the transportation sector include American Airlines Group Inc. ( AAL ), Hawaiian Holdings Inc. ( HA ) and Southwest Airlines Co. ( LUV ). All these 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 >>
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
UTI WORLDWIDE (UTIW): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
SOUTHWEST AIR (LUV): 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.
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Some better-ranked stocks in the transportation sector include American Airlines Group Inc. ( AAL ), Hawaiian Holdings Inc. ( HA ) and Southwest Airlines Co. ( LUV ). Click to get this free report UTI WORLDWIDE (UTIW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. UTi Worldwide Inc. ( UTIW ) was a big mover last session, as the company saw its shares rise by over 20% on the day.
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Some better-ranked stocks in the transportation sector include American Airlines Group Inc. ( AAL ), Hawaiian Holdings Inc. ( HA ) and Southwest Airlines Co. ( LUV ). Click to get this free report UTI WORLDWIDE (UTIW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report UTI WORLDWIDE (UTIW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the transportation sector include American Airlines Group Inc. ( AAL ), Hawaiian Holdings Inc. ( HA ) and Southwest Airlines Co. ( LUV ). Click to get this free report >> Want the latest recommendations from Zacks Investment Research?
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Some better-ranked stocks in the transportation sector include American Airlines Group Inc. ( AAL ), Hawaiian Holdings Inc. ( HA ) and Southwest Airlines Co. ( LUV ). Click to get this free report UTI WORLDWIDE (UTIW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. UTi Worldwide Inc. ( UTIW ) was a big mover last session, as the company saw its shares rise by over 20% on the day.
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8509.0
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2014-12-04 00:00:00 UTC
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Norfolk Southern: Key Investments, Expense Control in Focus - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/norfolk-southern%3A-key-investments-expense-control-in-focus-analyst-blog-2014-12-04
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nan
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nan
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Norfolk Southern Corporation ( NSC ) reported weaker-than-expected third-quarter 2014 numbers. Nevertheless, we believe an improving U.S. economy, substantial surge in manufactured and retail goods, and a sharp rebound in several end markets should benefit this key player in the railroad services industry over the coming quarters.
Norfolk Southern's long-term fundamentals and growth prospects remain appealing owing to its continued investments in key projects and new businesses. Management expects 2014 capital expenditure of approximately $2.2 billion, of which over $910 million will be dedicated to roadway spending. The company expects to invest approximately $550 million in upgrading locomotive and freight cars and spend $220 million on PTC (positive train control). Investments in facilities and terminals will involve $210 million. The rest of the spending will be aimed at technological upgrades, infrastructural development and other projects.
The company's focus on expense management is also encouraging. We believe the company will gain from its superior service and network capabilities, infrastructural investments and increased efficiency in the intermodal network.
On the flip side, we are concerned about the weak performance of the company's coal business in the third quarter of 2014. Segmental revenues in the quarter declined 2% year over year to $626 million. Revenues were hurt by a weak global export market and mild weather, and lower natural gas prices in the utility market. Continued below par performance of the segment has the potential to impact the stock adversely.
Norfolk Southern faces intense competition from motor carriers and railroads, and substantial competition from ships, barges and pipelines. The company's primary competitor is CSX Corporation (CSX), which operates in the same territory. The company utilized internal resources to build and maintain its rail system.
Norfolk Southern currently has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some better-ranked stocks worth considering in this sector are American Airlines Group Inc. ( AAL ), Kansas City Southern ( KSU ) and CSX Corp. ( CSX ) American Airlines has a Zacks Rank #1 (Strong Buy), whereas CSX and Kansas City Southern hold 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
KANSAS CITY SOU (KSU): Free Stock Analysis Report
CSX CORP (CSX): Free Stock Analysis Report
NORFOLK SOUTHRN (NSC): 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.
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Other Stocks to Consider Some better-ranked stocks worth considering in this sector are American Airlines Group Inc. ( AAL ), Kansas City Southern ( KSU ) and CSX Corp. ( CSX ) American Airlines has a Zacks Rank #1 (Strong Buy), whereas CSX and Kansas City Southern hold a Zacks Rank #2 (Buy). Click to get this free report KANSAS CITY SOU (KSU): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report NORFOLK SOUTHRN (NSC): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, we believe an improving U.S. economy, substantial surge in manufactured and retail goods, and a sharp rebound in several end markets should benefit this key player in the railroad services industry over the coming quarters.
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Other Stocks to Consider Some better-ranked stocks worth considering in this sector are American Airlines Group Inc. ( AAL ), Kansas City Southern ( KSU ) and CSX Corp. ( CSX ) American Airlines has a Zacks Rank #1 (Strong Buy), whereas CSX and Kansas City Southern hold a Zacks Rank #2 (Buy). Click to get this free report KANSAS CITY SOU (KSU): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report NORFOLK SOUTHRN (NSC): 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.
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Other Stocks to Consider Some better-ranked stocks worth considering in this sector are American Airlines Group Inc. ( AAL ), Kansas City Southern ( KSU ) and CSX Corp. ( CSX ) American Airlines has a Zacks Rank #1 (Strong Buy), whereas CSX and Kansas City Southern hold a Zacks Rank #2 (Buy). Click to get this free report KANSAS CITY SOU (KSU): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report NORFOLK SOUTHRN (NSC): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company expects to invest approximately $550 million in upgrading locomotive and freight cars and spend $220 million on PTC (positive train control).
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Other Stocks to Consider Some better-ranked stocks worth considering in this sector are American Airlines Group Inc. ( AAL ), Kansas City Southern ( KSU ) and CSX Corp. ( CSX ) American Airlines has a Zacks Rank #1 (Strong Buy), whereas CSX and Kansas City Southern hold a Zacks Rank #2 (Buy). Click to get this free report KANSAS CITY SOU (KSU): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report NORFOLK SOUTHRN (NSC): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company expects to invest approximately $550 million in upgrading locomotive and freight cars and spend $220 million on PTC (positive train control).
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8510.0
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2014-12-03 00:00:00 UTC
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American Airlines Group (AAL) Stock: Moving Average Crossover Alert - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-stock%3A-moving-average-crossover-alert-tale-of-the-tape-2014-12
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nan
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nan
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American Airlines Group Inc. ( AAL ) may be a solid choice for technical investors, as the firm saw some good news with its moving average crossover. AAL just saw its 50 Day Moving Average break out above its 200 Day Simple Moving Average, meaning that there could be some short-term bullishness for the stock.
You could definitely argue that this has already started to take place, as shares of AAL have jumped by 12.1% in the trailing 4 weeks. If that wasn't enough, the company currently possesses a Zacks Rank #1 (Strong Buy), so it could have more room to run in the weeks ahead too.
More bullishness may especially be the case when investors consider what has been happening for AAL on the earnings estimate revision front lately. No estimates has gone lower in the past two months, compared to 8 higher, while the consensus estimate has also moved higher too.
So given this move in estimates, and the positive technical factors, investors may want to watch this breakout candidate closely for more gains in the near future.
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.
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American Airlines Group Inc. ( AAL ) may be a solid choice for technical investors, as the firm saw some good news with its moving average crossover. AAL just saw its 50 Day Moving Average break out above its 200 Day Simple Moving Average, meaning that there could be some short-term bullishness for the stock. You could definitely argue that this has already started to take place, as shares of AAL have jumped by 12.1% in the trailing 4 weeks.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. ( AAL ) may be a solid choice for technical investors, as the firm saw some good news with its moving average crossover. AAL just saw its 50 Day Moving Average break out above its 200 Day Simple Moving Average, meaning that there could be some short-term bullishness for the stock.
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AAL just saw its 50 Day Moving Average break out above its 200 Day Simple Moving Average, meaning that there could be some short-term bullishness for the stock. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. ( AAL ) may be a solid choice for technical investors, as the firm saw some good news with its moving average crossover.
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American Airlines Group Inc. ( AAL ) may be a solid choice for technical investors, as the firm saw some good news with its moving average crossover. AAL just saw its 50 Day Moving Average break out above its 200 Day Simple Moving Average, meaning that there could be some short-term bullishness for the stock. You could definitely argue that this has already started to take place, as shares of AAL have jumped by 12.1% in the trailing 4 weeks.
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8511.0
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2014-12-03 00:00:00 UTC
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Supporting LGBT-Friendly Companies Can Be Profitable
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AAL
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https://www.nasdaq.com/articles/supporting-lgbt-friendly-companies-can-be-profitable-2014-12-03
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nan
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nan
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"We identified a long-term trend toward out-performance of companies relative to their respective sector peers after adopting LGBT-inclusive workplace policies."
--John Roberts, fund manager of Denver Investments
These words from the creator and manager of the Workplace Equality Index -- as well as the Workplace Equality ETF , which tracks the index -- show the main investing thesis behind this collection of companies. Roberts and his team use their own research, as well as research from the Human Rights Campaign ( HRC ), to find companies that support workplace equality among lesbian, gay, bisexual, and transgender (LGBT) employees. American Airlines , Nike , and Yahoo! are among the notable holdings in the fund. But this index is by no means a charity case, and in fact you'll soon see how this fund is significantly outperforming the market.
Creating the index and ETF
The Kevin J. Mossier Foundation -- the foundation of the late American entrepreneur Kevin Mossier, who was responsible for creating the modern-day LGBT travel industry -- sought out Denver Investments in 1998 to manage the assets Mossier left to the foundation, with the request that the funds be invested only in LGBT-friendly companies. In the 1990s, very few resources existed for measuring a company's degree of workplace equality, other than cold-calling the companies and asking their policies. That is what John Roberts and his team did to create the index nearly 20 years ago.
Thanks to the Human Rights Campaign's Corporate Equality Index , this is now much easier. To score well on HRC's list, companies' Equal Employment Opportunity statement must prohibit discrimination based on sexual orientation and gender identity, and the company must provide health benefits to same-sex partners or spouses of employees, along with other benefits. To be listed in the Workplace Equality index, companies must now score 100% on HRC's list.
While the Workplace Equality Index itself is a non-managed list of companies that met these criteria, Denver Investments recently started the Workplace Equality ETF to allow investors a way to put their money into a managed ETF based on Denver Investments' research. While the Workplace Equality ETF is the first fund of its kind, this niche is getting more attention lately. CreditSuisse has put out its own LGBT index, and Galileo Capital Management has launched LGBT Capital, an asset management firm focused on impact investment in the LGBT arena.
How LGBT equality can mean good business
While some might mistakenly consider the Workplace Equality Index to be a charitable cause, don't be fooled. This collection of LGBT-friendly stocks has handily beaten the market over the last 10 years, and it gives us plenty of reason to expect similar outperformance in the future. Over the 10-year period ended Sept. 30, the Workplace Equality Index has beaten the S&P 500 by 2.6 percentage points, bringing in annualized gains of 10.7% versus the broad-market index's 8.1%.
Chicken or the egg?
We have to make sure we're understanding causality here. Are these companies performing better because they have the sort of corporate culture that supports workplace equality, or do large, diverse companies that are already excelling naturally begin to adopt policies that foster workplace equality?
Here are a few graphs to support that companies with LGBT-friendly policies actually do perform better after adopting these policies. The below graphs show how the companies in the index, on average, perform during the years leading up to their inclusion in the index and after.
But why is the fund lower than the market lately?
The performance for the fund in the last few months has been lower than the general market. The reason for that? Sector allocation. Because the index follows any company that meets the workplace equality measure, it does not discriminate by sector.
The fund's largest sectors are consumer discretionary, tech, and financials, while energy is severely under-weighted compared to the S&P 500. Because energy has done particularly well in the States in 2014, this EQLT fund has shown less growth than the market. But in years when tech and financials have led the market, the fund has beaten the S&P 500 by more than 2.5 percentage points.
Roberts says there's a lot of catching up to do in terms of workplace equality in sectors like energy. ExxonMobil , for example, is one of the lowest-ranking companies' on HRC's equality index.
Is there much of a future in this type of investment?
Talking with founder John Roberts, I asked whether there is much of a future for the Workplace Equality ETF, or whether so many companies will meet the criteria in the coming years that the index will average out with the S&P 500. Robert said he would be happy if there were no need for a fund like this in the next decade or two, but he also noted that only 165 companies currently make the cut and that many have a long way to go. Therefore this list of LGBT-friendly companies is likely to continue beating the market for the foreseeable future.
Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
The article Supporting LGBT-Friendly Companies Can Be Profitable originally appeared on Fool.com.
Bradley Seth McNew has no position in any stocks mentioned. The Motley Fool recommends Nike and Yahoo. The Motley Fool owns shares of Nike and Yahoo. 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.
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"We identified a long-term trend toward out-performance of companies relative to their respective sector peers after adopting LGBT-inclusive workplace policies." This collection of LGBT-friendly stocks has handily beaten the market over the last 10 years, and it gives us plenty of reason to expect similar outperformance in the future. Talking with founder John Roberts, I asked whether there is much of a future for the Workplace Equality ETF, or whether so many companies will meet the criteria in the coming years that the index will average out with the S&P 500.
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Roberts and his team use their own research, as well as research from the Human Rights Campaign ( HRC ), to find companies that support workplace equality among lesbian, gay, bisexual, and transgender (LGBT) employees. Creating the index and ETF The Kevin J. Mossier Foundation -- the foundation of the late American entrepreneur Kevin Mossier, who was responsible for creating the modern-day LGBT travel industry -- sought out Denver Investments in 1998 to manage the assets Mossier left to the foundation, with the request that the funds be invested only in LGBT-friendly companies. Thanks to the Human Rights Campaign's Corporate Equality Index , this is now much easier.
|
--John Roberts, fund manager of Denver Investments These words from the creator and manager of the Workplace Equality Index -- as well as the Workplace Equality ETF , which tracks the index -- show the main investing thesis behind this collection of companies. While the Workplace Equality Index itself is a non-managed list of companies that met these criteria, Denver Investments recently started the Workplace Equality ETF to allow investors a way to put their money into a managed ETF based on Denver Investments' research. Are these companies performing better because they have the sort of corporate culture that supports workplace equality, or do large, diverse companies that are already excelling naturally begin to adopt policies that foster workplace equality?
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--John Roberts, fund manager of Denver Investments These words from the creator and manager of the Workplace Equality Index -- as well as the Workplace Equality ETF , which tracks the index -- show the main investing thesis behind this collection of companies. Because the index follows any company that meets the workplace equality measure, it does not discriminate by sector. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8512.0
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2014-12-02 00:00:00 UTC
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Hawaiian Holdings (HA) in Focus: Stock Up 5% - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/hawaiian-holdings-ha-in-focus%3A-stock-up-5-tale-of-the-tape-2014-12-02
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nan
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nan
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Hawaiian Holdings Inc. ( HA ) was a big mover last session, as the company saw its shares rise 5% on the day. This rally higher can be attributable to solid volume with far more shares changing hands than in a normal session. This continues the most recent uptrend of the company, as the stock is now up 18.6% in the past one-month time frame.
The company has seen 1 positive estimate revision in the past one month, while its Zacks Consensus Estimate moved higher over the same period, suggesting that more solid trading could be ahead for the company. So make sure to keep an eye on this stock going forward to see if this recent move higher can last.
Hawaiian Holdings Inc. (HA) has a Zacks Rank #1 (Strong Buy) while its Earnings ESP is positive.
Some airline stocks worth considering include American Airlines Group Inc. ( AAL ), SkyWest Inc. ( SKYW ) and Republic Airways Holdings Inc. ( RJET ), all carrying 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 >>
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
SKYWEST INC (SKYW): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
REPUBLIC AIRWAY (RJET): 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.
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Some airline stocks worth considering include American Airlines Group Inc. ( AAL ), SkyWest Inc. ( SKYW ) and Republic Airways Holdings Inc. ( RJET ), all carrying a Zacks Rank #1. Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. Hawaiian Holdings Inc. ( HA ) was a big mover last session, as the company saw its shares rise 5% on the day.
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Some airline stocks worth considering include American Airlines Group Inc. ( AAL ), SkyWest Inc. ( SKYW ) and Republic Airways Holdings Inc. ( RJET ), all carrying a Zacks Rank #1. Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. Some airline stocks worth considering include American Airlines Group Inc. ( AAL ), SkyWest Inc. ( SKYW ) and Republic Airways Holdings Inc. ( RJET ), all carrying a Zacks Rank #1. The company has seen 1 positive estimate revision in the past one month, while its Zacks Consensus Estimate moved higher over the same period, suggesting that more solid trading could be ahead for the company.
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Some airline stocks worth considering include American Airlines Group Inc. ( AAL ), SkyWest Inc. ( SKYW ) and Republic Airways Holdings Inc. ( RJET ), all carrying a Zacks Rank #1. Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. Hawaiian Holdings Inc. ( HA ) was a big mover last session, as the company saw its shares rise 5% on the day.
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8513.0
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2014-12-02 00:00:00 UTC
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GOL Tweaks 2014 Operating Margin Guidance; Other Aspects Stay - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/gol-tweaks-2014-operating-margin-guidance-other-aspects-stay-analyst-blog-2014-12-02
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nan
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nan
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Leading Latin American airlines GOL LinhasAereas SA ( GOL ) said that it now expects to end 2014 with operating margin in the range of 4% to 6% as opposed to the previous guidance of 3% to 6%. The carrier has stuck to the other aspects of its previously released guidance for 2014.
For 2014, the company still expects its supply to vary between negative 1% and 3% in the domestic market, while growth in international market is projected at around 8%. GOL reiterates Brazil's GDP growth rate forecast in the range of 1.5%-2.0% for 2014. RASK (revenue per available seat kilometer) growth projection stays at 10% or above. Meanwhile, CASK (cost of available seat kilometer) growth, excluding fuel growth, is still expected around 10% or below.
Apart from adjusting its operating margin forecast, the carrier stated that it expects domestic supply for 2015 to be identical to 2014 levels. We note that GOL has been struggling on the domestic supply front. The company's third-quarter 2014 results were hurt by a decline in domestic supply. Slow economic growth in Brazil is hurting the company's domestic operations.
The company is looking to boost its international presence. In a bid to expand its operations between Brazil and Europe, GOL announced an exclusive strategic partnership with European giant Air France-KLM SA earlier in the year. We believe this should contribute significantly to international revenues in the upcoming quarters.
Zacks Rank
GOL currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space include American Airlines Group ( AAL ), Spirit Airlines ( SAVE ) and Hawaiian Holdings ( HA ). All these 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
GOL LINHAS-ADR (GOL): 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.
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Better-ranked stocks in the airline space include American Airlines Group ( AAL ), Spirit Airlines ( SAVE ) and Hawaiian Holdings ( HA ). Click to get this free report GOL LINHAS-ADR (GOL): 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. GOL reiterates Brazil's GDP growth rate forecast in the range of 1.5%-2.0% for 2014.
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Better-ranked stocks in the airline space include American Airlines Group ( AAL ), Spirit Airlines ( SAVE ) and Hawaiian Holdings ( HA ). Click to get this free report GOL LINHAS-ADR (GOL): 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.
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Click to get this free report GOL LINHAS-ADR (GOL): 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. Better-ranked stocks in the airline space include American Airlines Group ( AAL ), Spirit Airlines ( SAVE ) and Hawaiian Holdings ( HA ). Leading Latin American airlines GOL LinhasAereas SA ( GOL ) said that it now expects to end 2014 with operating margin in the range of 4% to 6% as opposed to the previous guidance of 3% to 6%.
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Better-ranked stocks in the airline space include American Airlines Group ( AAL ), Spirit Airlines ( SAVE ) and Hawaiian Holdings ( HA ). Click to get this free report GOL LINHAS-ADR (GOL): 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. Leading Latin American airlines GOL LinhasAereas SA ( GOL ) said that it now expects to end 2014 with operating margin in the range of 4% to 6% as opposed to the previous guidance of 3% to 6%.
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8514.0
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2014-12-02 00:00:00 UTC
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Is Delta Turning its Back on Africa due to the Ebola Scare? - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/is-delta-turning-its-back-on-africa-due-to-the-ebola-scare-analyst-blog-2014-12-02
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nan
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nan
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According to Bloomberg, U.S.-based carrier Delta Air Lines, Inc. ( DAL ) has decided to operate 20% lesser flights to the African nation of Ghana. Notably, the airline has multiple flights operating to and from Africa.
According to the report, Delta has cut down the number of trips to Ghana's capital Accra from New York's John F. Kennedy International Airport to 18, as opposed to the year-ago figure of 22, beginning last month. The carrier has started operating one less flight per week on the above mentioned route.
Ebola Weighing on Profitability
Even though Delta did not cite any specific reason for slashing the number of flights to Ghana, we believe the decision has been considerably influenced by the formidable prevalence of Ebola in Africa, particularly in the western region of the continent. In fact, this is not the first time that Delta has pulled the plug on flights bound for West African cities. The carrier does not operate flights to Monrovia, the capital of Liberia, since August this year, according to the report. Liberia has been badly hit by the outbreak of Ebola.
We believe that the widespread occurrence of Ebola has led to the slackening of air traffic to nations, particularly in West Africa. This has naturally hurt profitability for airline companies, and has made flying to the affected areas economically unviable. We suspect that Delta's decision to reduce flights to the West African destinations is a natural outcome of the above concern. We note that Delta, however, does not fly to the worst Ebola-affected areas of Sierra Leone and Guinea.
Ebola has been wrecking havoc and claiming multiple lives, ever since its latest outbreak this year. According to media reports, this is the worst outbreak since the disease first surfaced in 1976.
Zacks Rank
Delta currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space include American Airlines Group Inc. ( AAL ), Spirit Airlines, Inc. ( SAVE ) and Hawaiian Holdings Inc. ( HA ). All 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
DELTA AIR LINES (DAL): 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.
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Better-ranked stocks in the airline space include American Airlines Group Inc. ( AAL ), Spirit Airlines, Inc. ( SAVE ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report DELTA AIR LINES (DAL): 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. According to Bloomberg, U.S.-based carrier Delta Air Lines, Inc. ( DAL ) has decided to operate 20% lesser flights to the African nation of Ghana.
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Better-ranked stocks in the airline space include American Airlines Group Inc. ( AAL ), Spirit Airlines, Inc. ( SAVE ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report DELTA AIR LINES (DAL): 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. According to Bloomberg, U.S.-based carrier Delta Air Lines, Inc. ( DAL ) has decided to operate 20% lesser flights to the African nation of Ghana.
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Click to get this free report DELTA AIR LINES (DAL): 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. Better-ranked stocks in the airline space include American Airlines Group Inc. ( AAL ), Spirit Airlines, Inc. ( SAVE ) and Hawaiian Holdings Inc. ( HA ). Ebola Weighing on Profitability Even though Delta did not cite any specific reason for slashing the number of flights to Ghana, we believe the decision has been considerably influenced by the formidable prevalence of Ebola in Africa, particularly in the western region of the continent.
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Better-ranked stocks in the airline space include American Airlines Group Inc. ( AAL ), Spirit Airlines, Inc. ( SAVE ) and Hawaiian Holdings Inc. ( HA ). Click to get this free report DELTA AIR LINES (DAL): 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. According to Bloomberg, U.S.-based carrier Delta Air Lines, Inc. ( DAL ) has decided to operate 20% lesser flights to the African nation of Ghana.
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8515.0
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2014-12-01 00:00:00 UTC
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China Eastern Airlines Corp (CEA) in Focus: Stock Up 5.8% - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/china-eastern-airlines-corp-cea-in-focus%3A-stock-up-5.8-tale-of-the-tape-2014-12-01
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China Eastern Airlines Corp ( CEA ) was a big mover last session, as the company saw its shares rise nearly 6% on the day. This rally higher can be attributable to solid volume with far more shares changing hands than in a normal session. This continues the most recent uptrend of the company, as the stock is now up 44.2% in the past one-month time frame.
In the last 30 days, this company did not witness any estimate revisions and the Zacks Consensus Estimate has remained unchanged over the same period. However, the recent price action is encouraging, so make sure to keep a close watch on this firm in the near future.
China Eastern Airlines has a Zacks Rank #2 (Buy) while its Earnings ESP is 0.00%.
Some airline stocks worth considering include American Airlines Group Inc. ( AAL ), Hawaiian Holdings Inc. ( HA ) and Republic Airways Holdings Inc. ( RJET ), all carrying 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 >>
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
CHINA EASTN-ADR (CEA): Get Free Report
AMER AIRLINES (AAL): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
REPUBLIC AIRWAY (RJET): 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.
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Some airline stocks worth considering include American Airlines Group Inc. ( AAL ), Hawaiian Holdings Inc. ( HA ) and Republic Airways Holdings Inc. ( RJET ), all carrying a Zacks Rank #1 (Strong Buy). Click to get this free report CHINA EASTN-ADR (CEA): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. China Eastern Airlines Corp ( CEA ) was a big mover last session, as the company saw its shares rise nearly 6% on the day.
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Some airline stocks worth considering include American Airlines Group Inc. ( AAL ), Hawaiian Holdings Inc. ( HA ) and Republic Airways Holdings Inc. ( RJET ), all carrying a Zacks Rank #1 (Strong Buy). Click to get this free report CHINA EASTN-ADR (CEA): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some airline stocks worth considering include American Airlines Group Inc. ( AAL ), Hawaiian Holdings Inc. ( HA ) and Republic Airways Holdings Inc. ( RJET ), all carrying a Zacks Rank #1 (Strong Buy). Click to get this free report CHINA EASTN-ADR (CEA): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some airline stocks worth considering include American Airlines Group Inc. ( AAL ), Hawaiian Holdings Inc. ( HA ) and Republic Airways Holdings Inc. ( RJET ), all carrying a Zacks Rank #1 (Strong Buy). Click to get this free report CHINA EASTN-ADR (CEA): Get Free Report AMER AIRLINES (AAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. China Eastern Airlines Corp ( CEA ) was a big mover last session, as the company saw its shares rise nearly 6% on the day.
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8516.0
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2014-12-01 00:00:00 UTC
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Lufthansa Hit by Cancellations as Pilots Go on Strike Again - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/lufthansa-hit-by-cancellations-as-pilots-go-on-strike-again-analyst-blog-2014-12-01
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nan
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nan
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Germany's Deutsche Lufthansa Aktiengesellschaft ( DLAKY ) continues to be in hot waters with the pilots union (Vereinigung Cockpit) announcing that all pilots of Lufthansa's short-haul and continental flights will go on a 2-day strike effective today. The pilots arrived at the decision following the fallout of talks with management over early retirement benefits.
Per the union, the Germany-wide strike would come into effect from midday (6.00 a.m. ET) of Dec 1 and would stay put till 11.59 p.m. (5.59 p.m. ET) on Dec 2 for short- and medium-haul flights. The strike will also affect long-haul flights scheduled between 3.00 a.m. (9.00 p.m. ET) and 11.59 p.m. (5.59 p.m. ET) on Dec 2.
We note that Lufthansa has been going through tough times. Pilots have already gone on strike eight times this year over disputes pertaining to an early retirement scheme. Strikes at frequent intervals have already set back the company's operating profit this year to the tune of €160M ($200M).
The latest strike proposal has already led to more than 1,000 flight cancellations at Lufthansa, mainly covering Dec 1 and 2. Lufthansa is looking to bring out a special timetable during the duration of the strike to curb the inconvenience caused to its passengers. According to a report appearing in the Reuters, the management has called for an immediate resumption of talks with the pilots' union. We expect investors to remain glued on updates regarding the same.
Incidentally, Lufthansa, one of Europe's biggest airlines, cut its forecast for 2015 operating profit during its third quarter conference call last month, egged by concerns of a downturn affecting the global economy next year. The airline now expects 2015 operating profits to be significantly above the 2014 projection of around €1 billion. Operating profits for 2015 were previously projected at €2 billion. This is the second time in the span of a few months that the guidance has been revised downward. The ongoing labor dispute is certainly not helping Lufthansa's cause.
Zacks Rank
Lufthansa currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the airline space include Southwest Airlines Co. ( LUV ), Spirit Airlines ( SAVE ) and American Airlines Group ( AAL ). All three 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
SOUTHWEST AIR (LUV): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): 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.
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Better-ranked stocks in the airline space include Southwest Airlines Co. ( LUV ), Spirit Airlines ( SAVE ) and American Airlines Group ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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. Strikes at frequent intervals have already set back the company's operating profit this year to the tune of €160M ($200M).
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Better-ranked stocks in the airline space include Southwest Airlines Co. ( LUV ), Spirit Airlines ( SAVE ) and American Airlines Group ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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. Better-ranked stocks in the airline space include Southwest Airlines Co. ( LUV ), Spirit Airlines ( SAVE ) and American Airlines Group ( AAL ). Germany's Deutsche Lufthansa Aktiengesellschaft ( DLAKY ) continues to be in hot waters with the pilots union (Vereinigung Cockpit) announcing that all pilots of Lufthansa's short-haul and continental flights will go on a 2-day strike effective today.
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Better-ranked stocks in the airline space include Southwest Airlines Co. ( LUV ), Spirit Airlines ( SAVE ) and American Airlines Group ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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. Pilots have already gone on strike eight times this year over disputes pertaining to an early retirement scheme.
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8517.0
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2014-12-01 00:00:00 UTC
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Bull of the Day: American Airlines (AAL) - Bull of the Day
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AAL
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https://www.nasdaq.com/articles/bull-day-american-airlines-aal-bull-day-2014-12-01
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nan
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nan
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Despite winter storm worries, the airline sector has been flying pretty high as of late and for good reason too. The segment is experiencing one of its most profitable and in-demand stretches in years, and many believe the run could continue into 2015 too.
After all, with the rash of mergers over the past few years, airline competition is relatively low giving many airlines pricing power in a number of key routes. Strong consumer demand hasn't hurt matters either as a more willing-to-spend traveler seems ready to pony up for higher fares, while a more certain job situation is acting as a catalyst for more vacations as well.
And while Ebola worries might have temporarily derailed the sector, the space has fought back quickly and is riding high thanks to one of their highest input costs; oil. Crude oil prices -and thus jet fuel prices-have come down significantly in recent weeks, boosting profits for airlines across the sector, and setting up the space for a stellar start to the New Year.
For these reasons, it is easy to see why the airline industry is in the top 20% of all industries that we cover. And while any number of stocks in this space could be solid in this great environment, a look towards American Airlines ( AAL ) in particular could be an exceptional idea right now.
AAL in Focus
American Airlines is by some measures the largest airline in the world, serving customers across the globe with more than 6,700 daily flights in 56 nations. The company is the result of a merger between AMR (American Airlines' parent group) and US Airways, continuing the recent trend of consolidation in the industry.
Speaking of trends, American Airlines has, just like its peers, been able to soar in recent times and put up solid profitability numbers as well. Yet even with an 80% surge YTD, there is plenty of reason to hope for more gains heading into 2015 too. This is especially true when investors look to recent earnings estimate revisions for AAL, which definitely suggest more strength ahead for the company.
Earnings Estimates
In the past two months, we have seen a number of solid trends in the earnings estimate revisions for AAL. Seven estimates have gone higher for the current quarter, compared to none lower, while we have seen eight estimates move higher in the past sixty days for the current year estimate, compared to (once again) zero lower.
The magnitude of these revisions has been pretty intense too, as the consensus estimate has soared as a result of these analyst estimate changes. The current quarter consensus estimate has moved from $1.06/share 60 days ago to $1.48/share today, while the current year figure has gone from $5.31/share to $5.66/share over the same time frame.
And while some might think that it will be difficult for AAL to match these lofty expectation, investors should consider the company's recent history at earnings season. In the past four results, AAL has beaten estimates every time, including a 179% beat four quarters ago.
Bottom Line
Given these solid industry trends and AAL's impressive metrics on its own, it shouldn't be too surprising to note that AAL has a Zacks Rank #1 (Strong Buy). This means that we are looking for the company to outperform in the near term, and that it has a pretty bright future thanks to its recent string of earnings estimate revisions.
So if you are still looking for an airline stock in today's environment, make sure to consider AAL. This air travel behemoth is well-positioned for more appreciation, and it is hard to deny the current industry trends which suggest that more growth is definitely ahead, and not just for AAL, but for the sector as a whole too.
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.
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.
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And while any number of stocks in this space could be solid in this great environment, a look towards American Airlines ( AAL ) in particular could be an exceptional idea right now. AAL in Focus American Airlines is by some measures the largest airline in the world, serving customers across the globe with more than 6,700 daily flights in 56 nations. This is especially true when investors look to recent earnings estimate revisions for AAL, which definitely suggest more strength ahead for the company.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. And while any number of stocks in this space could be solid in this great environment, a look towards American Airlines ( AAL ) in particular could be an exceptional idea right now. AAL in Focus American Airlines is by some measures the largest airline in the world, serving customers across the globe with more than 6,700 daily flights in 56 nations.
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Earnings Estimates In the past two months, we have seen a number of solid trends in the earnings estimate revisions for AAL. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. And while any number of stocks in this space could be solid in this great environment, a look towards American Airlines ( AAL ) in particular could be an exceptional idea right now.
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And while any number of stocks in this space could be solid in this great environment, a look towards American Airlines ( AAL ) in particular could be an exceptional idea right now. Earnings Estimates In the past two months, we have seen a number of solid trends in the earnings estimate revisions for AAL. AAL in Focus American Airlines is by some measures the largest airline in the world, serving customers across the globe with more than 6,700 daily flights in 56 nations.
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8518.0
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2014-11-28 00:00:00 UTC
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Mid-Day Update: Stocks Reverse Early Losses After Plunging Fuel Prices Send Airline Stocks Soaring
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AAL
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https://www.nasdaq.com/articles/mid-day-update-stocks-reverse-early-losses-after-plunging-fuel-prices-send-airline-stocks
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nan
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After a challenging open with heavy pressure on the energy sector, U.S. equities were in the plus column for a second straight day on Friday supported by gains by retail and airline stocks more than offsetting steep losses in the oil-related sector. Dow Jones component Wal-Mart ( WMT ) rose to a new, all-time high after reporting a strong start to its holiday sales while shares of airline companies - including United Continental ( UAL ), Delta ( DAL ), Southwest ( LUV ), American Airlines Group ( AAL ) and Spirit Airlines (SAVE) - all rose to record highs with investors expecting cheaper fuel costs to boost bottom lines throughout the sector.
Commodities tumbled after OPEC ministers Thursday declined to cut production during meetings in Vienna. West Texas Intermediate crude oil for January delivery was down $4.86 to $68.83 per barrel while January natural gas was down 15 cents to $4.20 per 1 million BTU. February gold was down $18.50 to $1,179 per ounce while March silver slipped 94 cents to $15.67 per ounce. March copper fell 10 cents to $2.85 per pound in recent trade.
Here's where the U.S. markets stood at mid-day:
NYSE Composite Index down 49.09 (-0.44%) to 10,998.83
Dow Jones Industrial Average +60.36 +0.34% 17,888.11
S&P 500 up 0.88 (+0.04%) to 2,073.71
Nasdaq Composite Index up 19.11 (+0.40%) to 4,806.43
GLOBAL SENTIMENT
Nikkei 225 Index up 1.23%
Hang Seng Index down 0.07%
Shanghai China Composite Index up 1.99%
FTSE 100 Index up 0.13%
CAC 40 up 0.03%
DAX down 0.02%
NYSE SECTOR INDICES
NYSE Energy Sector Index down 6.23%
NYSE Financial Sector Index up 0.26%
NYSE Healthcare Sector Index up 0.90%
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dow Jones component Wal-Mart ( WMT ) rose to a new, all-time high after reporting a strong start to its holiday sales while shares of airline companies - including United Continental ( UAL ), Delta ( DAL ), Southwest ( LUV ), American Airlines Group ( AAL ) and Spirit Airlines (SAVE) - all rose to record highs with investors expecting cheaper fuel costs to boost bottom lines throughout the sector. After a challenging open with heavy pressure on the energy sector, U.S. equities were in the plus column for a second straight day on Friday supported by gains by retail and airline stocks more than offsetting steep losses in the oil-related sector. Commodities tumbled after OPEC ministers Thursday declined to cut production during meetings in Vienna.
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Dow Jones component Wal-Mart ( WMT ) rose to a new, all-time high after reporting a strong start to its holiday sales while shares of airline companies - including United Continental ( UAL ), Delta ( DAL ), Southwest ( LUV ), American Airlines Group ( AAL ) and Spirit Airlines (SAVE) - all rose to record highs with investors expecting cheaper fuel costs to boost bottom lines throughout the sector. Here's where the U.S. markets stood at mid-day: NYSE Composite Index down 49.09 (-0.44%) to 10,998.83 Dow Jones Industrial Average +60.36 +0.34% 17,888.11 S&P 500 up 0.88 (+0.04%) to 2,073.71 Nasdaq Composite Index up 19.11 (+0.40%) to 4,806.43 NYSE Energy Sector Index down 6.23% NYSE Financial Sector Index up 0.26% NYSE Healthcare Sector Index up 0.90% The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dow Jones component Wal-Mart ( WMT ) rose to a new, all-time high after reporting a strong start to its holiday sales while shares of airline companies - including United Continental ( UAL ), Delta ( DAL ), Southwest ( LUV ), American Airlines Group ( AAL ) and Spirit Airlines (SAVE) - all rose to record highs with investors expecting cheaper fuel costs to boost bottom lines throughout the sector. West Texas Intermediate crude oil for January delivery was down $4.86 to $68.83 per barrel while January natural gas was down 15 cents to $4.20 per 1 million BTU. February gold was down $18.50 to $1,179 per ounce while March silver slipped 94 cents to $15.67 per ounce.
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Dow Jones component Wal-Mart ( WMT ) rose to a new, all-time high after reporting a strong start to its holiday sales while shares of airline companies - including United Continental ( UAL ), Delta ( DAL ), Southwest ( LUV ), American Airlines Group ( AAL ) and Spirit Airlines (SAVE) - all rose to record highs with investors expecting cheaper fuel costs to boost bottom lines throughout the sector. Commodities tumbled after OPEC ministers Thursday declined to cut production during meetings in Vienna. NYSE Energy Sector Index down 6.23% NYSE Financial Sector Index up 0.26% NYSE Healthcare Sector Index up 0.90% The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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8519.0
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2014-11-28 00:00:00 UTC
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Southwest Airlines to Gain from International Operations - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-to-gain-from-international-operations-analyst-blog-2014-11-28
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nan
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nan
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On Nov 26, 2014, we issued an updated research report on Southwest Airlines Co. ( LUV ). Low fuel prices coupled with increased demand for air travel will continue to boost profits for the company.
Southwest Airlines has delivered positive earnings surprises over the last four quarters, with an average beat of 12.22%. The company reported strong financial results for the third quarter of 2014 with both the top and the bottom line beating the Zacks Consensus Estimate.
After operating for several decades within the U.S. domestic market, Southwest Airlines initiated its international service in Jul 2014 with flights to Aruba, Bahamas and Jamaica in the Caribbean. After the initial round of flights, the carrier plans to expand its international operations to 50 international destinations with Mexico and Dominican Republic being next.
To combat further cost increases, Southwest Airlines is rightsizing its fleet. Though initially expensive, it seems to be the most apt strategy to lower non-fuel costs. The company is also several efforts to enhance the quality of its fleet so as to improve profitability. Southwest Airlines is replacing AirTran's Boeing 717s with 737-800 and presently has 47 such aircraft in its fleet. This is allowing the company to improve revenues along with reducing unit cost.
Southwest Airlines is also offering Row 44 WiFi technology-based facilities including Live Television, satellite-based WiFi and on-demand movies to passengers on all Southwest Next Generation fleet (737-800s and 737-700s). Recently, the company started offering Beats Music service to flyers on Wi-Fi which we believe will further enrich the in-flight entertainment quotient. Additionally, Southwest has ordered 33 new The Boeing Company ( BA ) Boeing 737-800s and plans to add 17 used Boeing 737-700s in its fleet in the future. On Jul 9, 2012, Southwest had entered into an agreement with Delta Air Lines, Inc. ( DAL ) to lease or sublease all 88 of AirTran's Boeing 717s, and has switched over 36 such aircraft to Delta at the end of the second quarter.
Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy) while another stock having same Zacks Rank is American Airlines Group Inc. ( 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
SOUTHWEST AIR (LUV): Free Stock Analysis Report
BOEING CO (BA): 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.
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Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy) while another stock having same Zacks Rank is American Airlines Group Inc. ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): 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 reported strong financial results for the third quarter of 2014 with both the top and the bottom line beating the Zacks Consensus Estimate.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): 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. Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy) while another stock having same Zacks Rank is American Airlines Group Inc. ( AAL ). After operating for several decades within the U.S. domestic market, Southwest Airlines initiated its international service in Jul 2014 with flights to Aruba, Bahamas and Jamaica in the Caribbean.
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Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy) while another stock having same Zacks Rank is American Airlines Group Inc. ( AAL ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): 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. Additionally, Southwest has ordered 33 new The Boeing Company ( BA ) Boeing 737-800s and plans to add 17 used Boeing 737-700s in its fleet in the future.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): 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. Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy) while another stock having same Zacks Rank is American Airlines Group Inc. ( AAL ). The company reported strong financial results for the third quarter of 2014 with both the top and the bottom line beating the Zacks Consensus Estimate.
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8520.0
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2014-11-28 00:00:00 UTC
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Spirit Airlines Gets Top Rank for Fuel Efficiency, Shares Up - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-gets-top-rank-for-fuel-efficiency-shares-up-analyst-blog-2014-11-28
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nan
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Shares of Spirit Airlines ( SAVE ) gained 1.27% to close the Nov 26 trading session at $78.20 after being awarded the top rank for fuel efficiency among U.S.-based carriers in 2013, according to a report released by the International Council on Clean Transportation (ICCT) - an independent non-profit organization. Two other carriers shared the top spot with Spirit Airlines.
The fuel efficiency score awarded to this low-cost carrier is 11% higher than the industry average. Apart from Spirit Airlines, the top rank was also awarded to Alaska Airlines, the wholly owned subsidiary of Alaska Air Group ( ALK ) and Frontier Airlines, the wholly owned subsidiary of Republic Airways Holdings Inc. ( RJET ).
However, the overall content of the report, which measures fuel efficiency, and therefore carbon intensity of U.S. airlines in 2013, is not all that encouraging. The findings indicate that most airlines are far from being environment-friendly. The report believes that the declining load factors and fewer deliveries of newer and more fuel efficient aircraft to the companies are responsible for the current state of affairs. In fact, the ICCT report does not find any year-over-year improvement with respect to fuel efficiency among U.S. domestic airlines in 2013.
The report also disclosed that the gap between the most and least efficient airlines with respect to fuel efficiency was 27% in 2013, wider than the year-ago figure.
Spirit Airlines carries a Zacks Rank #1 (Strong Buy). However, American Airlines, the wholly owned subsidiary of another Zacks Rank #1 stock American Airlines Group ( AAL ), has emerged as the least fuel-efficient U.S. carrier in 2013, according to the 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
REPUBLIC AIRWAY (RJET): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): 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.
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However, American Airlines, the wholly owned subsidiary of another Zacks Rank #1 stock American Airlines Group ( AAL ), has emerged as the least fuel-efficient U.S. carrier in 2013, according to the report. Click to get this free report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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. Shares of Spirit Airlines ( SAVE ) gained 1.27% to close the Nov 26 trading session at $78.20 after being awarded the top rank for fuel efficiency among U.S.-based carriers in 2013, according to a report released by the International Council on Clean Transportation (ICCT) - an independent non-profit organization.
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However, American Airlines, the wholly owned subsidiary of another Zacks Rank #1 stock American Airlines Group ( AAL ), has emerged as the least fuel-efficient U.S. carrier in 2013, according to the report. Click to get this free report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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 Spirit Airlines, the top rank was also awarded to Alaska Airlines, the wholly owned subsidiary of Alaska Air Group ( ALK ) and Frontier Airlines, the wholly owned subsidiary of Republic Airways Holdings Inc. ( RJET ).
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However, American Airlines, the wholly owned subsidiary of another Zacks Rank #1 stock American Airlines Group ( AAL ), has emerged as the least fuel-efficient U.S. carrier in 2013, according to the report. Click to get this free report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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 Spirit Airlines, the top rank was also awarded to Alaska Airlines, the wholly owned subsidiary of Alaska Air Group ( ALK ) and Frontier Airlines, the wholly owned subsidiary of Republic Airways Holdings Inc. ( RJET ).
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However, American Airlines, the wholly owned subsidiary of another Zacks Rank #1 stock American Airlines Group ( AAL ), has emerged as the least fuel-efficient U.S. carrier in 2013, according to the report. Click to get this free report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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. Shares of Spirit Airlines ( SAVE ) gained 1.27% to close the Nov 26 trading session at $78.20 after being awarded the top rank for fuel efficiency among U.S.-based carriers in 2013, according to a report released by the International Council on Clean Transportation (ICCT) - an independent non-profit organization.
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8521.0
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2014-11-26 00:00:00 UTC
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Zacks Rank #1 Additions for Wednesday - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/zacks-rank-1-additions-for-wednesday-tale-of-the-tape-2014-11-26
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today:
1-800-Flowers.Com Inc ( FLWS )
American Airlines Group Inc ( AAL )
Ashford Hospitality Trust, Inc. ( AHT )
Blackhawk Network Holdings Inc ( HAWKB )
Consumer Portfolio Services, Inc. ( CPSS )
View the entire Zacks Rank #1 List .
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
1800FLOWERS.COM (FLWS): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
ASHFORD HOSPTLY (AHT): Free Stock Analysis Report
BLACKHAWK NET-B (HAWKB): Get Free Report
CONS PORTFOLIO (CPSS): 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.
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Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today: 1-800-Flowers.Com Inc ( FLWS ) American Airlines Group Inc ( AAL ) Ashford Hospitality Trust, Inc. ( AHT ) Blackhawk Network Holdings Inc ( HAWKB ) Consumer Portfolio Services, Inc. ( CPSS ) View the entire Zacks Rank #1 List . Click to get this free report 1800FLOWERS.COM (FLWS): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ASHFORD HOSPTLY (AHT): Free Stock Analysis Report BLACKHAWK NET-B (HAWKB): Get Free Report CONS PORTFOLIO (CPSS): Get Free Report To read this article on Zacks.com click here. Want the latest recommendations from Zacks Investment Research?
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Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today: 1-800-Flowers.Com Inc ( FLWS ) American Airlines Group Inc ( AAL ) Ashford Hospitality Trust, Inc. ( AHT ) Blackhawk Network Holdings Inc ( HAWKB ) Consumer Portfolio Services, Inc. ( CPSS ) View the entire Zacks Rank #1 List . Click to get this free report 1800FLOWERS.COM (FLWS): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ASHFORD HOSPTLY (AHT): Free Stock Analysis Report BLACKHAWK NET-B (HAWKB): Get Free Report CONS PORTFOLIO (CPSS): 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.
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Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today: 1-800-Flowers.Com Inc ( FLWS ) American Airlines Group Inc ( AAL ) Ashford Hospitality Trust, Inc. ( AHT ) Blackhawk Network Holdings Inc ( HAWKB ) Consumer Portfolio Services, Inc. ( CPSS ) View the entire Zacks Rank #1 List . Click to get this free report 1800FLOWERS.COM (FLWS): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ASHFORD HOSPTLY (AHT): Free Stock Analysis Report BLACKHAWK NET-B (HAWKB): Get Free Report CONS PORTFOLIO (CPSS): 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.
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Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today: 1-800-Flowers.Com Inc ( FLWS ) American Airlines Group Inc ( AAL ) Ashford Hospitality Trust, Inc. ( AHT ) Blackhawk Network Holdings Inc ( HAWKB ) Consumer Portfolio Services, Inc. ( CPSS ) View the entire Zacks Rank #1 List . Click to get this free report 1800FLOWERS.COM (FLWS): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ASHFORD HOSPTLY (AHT): Free Stock Analysis Report BLACKHAWK NET-B (HAWKB): Get Free Report CONS PORTFOLIO (CPSS): Get Free Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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8522.0
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2014-11-26 00:00:00 UTC
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Will Northeast Storm Cato Slow Down Airline's Dream Run? - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/will-northeast-storm-cato-slow-down-airlines-dream-run-analyst-blog-2014-11-26
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nan
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nan
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The U.S. airline industry has been flying high over the past few quarters on the back of lower fuel prices and increased air travel. Despite the Ebola scare and geo-political tensions in Eastern Europe and the Middle East, the industry continues to report record profit. However, the industry might run into some turbulence due to the concern regarding the Northeast snowstorm Cato, which may disrupt air travels during Thanksgiving holiday.
Per news sources, 125 flights are likely to be cancelled at Chicago's O'Hare International Airport due to heavy snow fall. Also, nearly 23 northeastern airports were forced to reschedule its flights due to the storm.
Airlines for America (A4A) predict a 1.5% increase in the number of flyers during this Thanksgiving holiday season. According to A4A, 24.6 million passengers will travel via U.S. airlines between Nov 21 and Dec 2. Hence, Cato will significantly affect the travel plans of a huge number of fliers this holiday season.
Even The Weather Channel has warned against traveling on Wednesday - the day before Thanksgiving - from the mid-Atlantic to New England. As a result, most airline companies like Delta Air Lines Inc. ( DAL ), JetBlue and Southwest Airlines Co. ( LUV ) are offering flexibility to passengers, while American Airlines Group ( AAL ) will waive re-booking charges for fliers scheduled to fly on Nov 26 to, from or through 19 Northeastern cities.
A similar waiver has been announced by United Continental Holdings Inc. ( UAL ) which includes 23 cities between Washington, D.C. and the north to Maine. The company had also cancelled 1,200 flights due to winter storms last year.
American Airlines sports a Zacks Rank #1 (Strong Buy), while United Continental has 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
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.
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As a result, most airline companies like Delta Air Lines Inc. ( DAL ), JetBlue and Southwest Airlines Co. ( LUV ) are offering flexibility to passengers, while American Airlines Group ( AAL ) will waive re-booking charges for fliers scheduled to fly on Nov 26 to, from or through 19 Northeastern cities. 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 U.S. airline industry has been flying high over the past few quarters on the back of lower fuel prices and increased air travel.
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As a result, most airline companies like Delta Air Lines Inc. ( DAL ), JetBlue and Southwest Airlines Co. ( LUV ) are offering flexibility to passengers, while American Airlines Group ( AAL ) will waive re-booking charges for fliers scheduled to fly on Nov 26 to, from or through 19 Northeastern cities. 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. American Airlines sports a Zacks Rank #1 (Strong Buy), while United Continental has a Zacks Rank #2 (Buy).
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As a result, most airline companies like Delta Air Lines Inc. ( DAL ), JetBlue and Southwest Airlines Co. ( LUV ) are offering flexibility to passengers, while American Airlines Group ( AAL ) will waive re-booking charges for fliers scheduled to fly on Nov 26 to, from or through 19 Northeastern cities. 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.
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As a result, most airline companies like Delta Air Lines Inc. ( DAL ), JetBlue and Southwest Airlines Co. ( LUV ) are offering flexibility to passengers, while American Airlines Group ( AAL ) will waive re-booking charges for fliers scheduled to fly on Nov 26 to, from or through 19 Northeastern cities. 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. Want the latest recommendations from Zacks Investment Research?
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8523.0
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2014-11-25 00:00:00 UTC
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American Airlines to Start Second Philadelphia-London Flight - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-start-second-philadelphia-london-flight-analyst-blog-2014-11-25
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nan
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nan
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In a bid to further boost trans-Atlantic travel, American Airlines - the wholly-owned subsidiary of the American Airlines Group ( AAL ) - announced that it will introduce a new daytime daily flight from Philadelphia International Airport to London Heathrow Airport . The new service is the second American Airlines flight in the route.
The company was created following the merger of American Airlines and U.S. Airways Group Inc., in late 2013 (read more: American Airlines to Merge with U.S. Airways ). The London-bound flight, scheduled to depart at 9.55 a.m., will take a little over 12 hours and the Philadelphia trip will take three hours longer. The Boeing Company's ( BA ) 757-200 aircraft will be used for the new service slated to be launched on May 29, 2015.
We remind investors that last week, another major U.S.-based carrier, Delta Airlines ( DAL ) had announced its plans to launch a new Philadelphia-London service on Apr 7 next year. Subsequent to the launch, the number of Delta Airlines flights between the U.S. and London Heathrow will increase to 12 and Philadelphia will become the 9th U.S. city to be connected to Heathrow via a Delta Airlines flight.
The carrier said in its press release that it, along with partner Virgin Atlantic Airways, will offer 39 daily flights between the U.S. and the UK by the summer of 2015. Out of the 39 flights, 10 will operate between New York and London.
American Airlines was also in the news recently when it announced the waiver of re-booking charges for fliers booked on Nov 26 for travel on its planes that will fly to, from or through 19 cities in the Northeast due to the anticipated disruptive weather conditions during the Thanksgiving week. Passengers can rebook flights under the scheme from today through Thanksgiving Day on Nov 27.
American Airlines carries a Zacks Rank #2 (Buy). A better-ranked stock in the airline space is Southwest Airlines ( LUV ) sporting 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
AMER AIRLINES (AAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
BOEING CO (BA): 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.
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In a bid to further boost trans-Atlantic travel, American Airlines - the wholly-owned subsidiary of the American Airlines Group ( AAL ) - announced that it will introduce a new daytime daily flight from Philadelphia International Airport to London Heathrow Airport . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): 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 last week, another major U.S.-based carrier, Delta Airlines ( DAL ) had announced its plans to launch a new Philadelphia-London service on Apr 7 next year.
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In a bid to further boost trans-Atlantic travel, American Airlines - the wholly-owned subsidiary of the American Airlines Group ( AAL ) - announced that it will introduce a new daytime daily flight from Philadelphia International Airport to London Heathrow Airport . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): 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.
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In a bid to further boost trans-Atlantic travel, American Airlines - the wholly-owned subsidiary of the American Airlines Group ( AAL ) - announced that it will introduce a new daytime daily flight from Philadelphia International Airport to London Heathrow Airport . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. Subsequent to the launch, the number of Delta Airlines flights between the U.S. and London Heathrow will increase to 12 and Philadelphia will become the 9th U.S. city to be connected to Heathrow via a Delta Airlines flight.
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In a bid to further boost trans-Atlantic travel, American Airlines - the wholly-owned subsidiary of the American Airlines Group ( AAL ) - announced that it will introduce a new daytime daily flight from Philadelphia International Airport to London Heathrow Airport . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. The new service is the second American Airlines flight in the route.
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8524.0
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2014-11-24 00:00:00 UTC
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Delta (DAL) Stock: How Big is Its Fuel Advantage?
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AAL
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https://www.nasdaq.com/articles/delta-dal-stock-how-big-its-fuel-advantage-2014-11-24
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nan
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Delta claims a big fuel advantage over rivals. How real is it? Credit: The Motley Fool.
Delta Air Lines made headlines when it purchased the Trainer refinery in Delaware from Phillips 66 in 2012. At the time, executives pitched the $180 million purchase as a way to control most of its out-of-pocket fuel costs.
As Delta President and board member Ed Bastian put it at the Bank of America Merrill Lynch Global Transportation Conference in May 2012:
That's a bold claim, which we can document and monitor thanks to the transcribers at S&P Capital IQ . How has strategy played out so far? Delta CFO Paul Jacobson told analysts listening in on the company's latestearnings callthat the Trainer refinery added $19 million in profit during the third quarter, lowering Delta's fuel costs by $0.02 a gallon.
Minding the fuel cost gap
Even a couple of pennies adds up when you're using millions of gallons of fuel. In the third quarter alone, Delta aircraft burned some 1.067 billion gallons flying passengers around the globe. American Airlines Group burned 1.130 billion gallons over the same period, while United Continental aircraft consumed 1.037 billion gallons.
All three consume about the same fuel and compete for business among the same general pool of business and consumer travelers. Does Delta's aggressive fuel hedging amount to an advantage in the fight for profits? Apparently so, judging by what carriers say are their bottom-line per-gallon fuel costs in each of the last four quarters:
Sources: American, Delta, and United press releases.
To be fair, neither American nor United list the sorts of "mark-to-market" adjustments that are included in Delta's calculations. They are comprehensive, however, in that they account for cash settlements on hedges, which makes this about as fair a comparison as I can come up with. It's also consistent with comments from Jacobson.
Here's a partial transcript of his comments at the Goldman Sachs Industrials Conference held earlier this month, with transcribing once again provided by S&P Capital IQ:
The trick, of course, is cashing in on that advantage consistently. In the third quarter, Delta reversed course by posting a 3.2% operating margin versus 8.5% for American and 8.7% for United, according to S&P Capital IQ. Thats not necessarily an indicator of bad times to come. If it says anything about Delta's business, it's that the refinery -- for all the good it's doing so far -- doesn't yet amount to a sustainable competitive advantage.
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The article Delta ( DAL ) Stock: How Big is Its Fuel Advantage? originally appeared on Fool.com.
Tim Beyers is a member of theMotley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+ , Tumblr , or Twitter, where he goes by @milehighfool . You can also get his insights delivered directly to your RSS reader .The Motley Fool recommends Goldman Sachs. 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.
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As Delta President and board member Ed Bastian put it at the Bank of America Merrill Lynch Global Transportation Conference in May 2012: That's a bold claim, which we can document and monitor thanks to the transcribers at S&P Capital IQ . Apparently so, judging by what carriers say are their bottom-line per-gallon fuel costs in each of the last four quarters: Sources: American, Delta, and United press releases. Here's a partial transcript of his comments at the Goldman Sachs Industrials Conference held earlier this month, with transcribing once again provided by S&P Capital IQ: The trick, of course, is cashing in on that advantage consistently.
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Delta claims a big fuel advantage over rivals. Delta CFO Paul Jacobson told analysts listening in on the company's latestearnings callthat the Trainer refinery added $19 million in profit during the third quarter, lowering Delta's fuel costs by $0.02 a gallon. In the third quarter alone, Delta aircraft burned some 1.067 billion gallons flying passengers around the globe.
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Delta CFO Paul Jacobson told analysts listening in on the company's latestearnings callthat the Trainer refinery added $19 million in profit during the third quarter, lowering Delta's fuel costs by $0.02 a gallon. Apparently so, judging by what carriers say are their bottom-line per-gallon fuel costs in each of the last four quarters: Sources: American, Delta, and United press releases. The Motley Fool just completed a brand-new investigative report on this significant investment topic and the company helping fuel its boom.
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Delta CFO Paul Jacobson told analysts listening in on the company's latestearnings callthat the Trainer refinery added $19 million in profit during the third quarter, lowering Delta's fuel costs by $0.02 a gallon. If it says anything about Delta's business, it's that the refinery -- for all the good it's doing so far -- doesn't yet amount to a sustainable competitive advantage. The Motley Fool just completed a brand-new investigative report on this significant investment topic and the company helping fuel its boom.
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8525.0
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2014-11-22 00:00:00 UTC
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Airline Baggage Crackdown Continues: How Are Passengers and Employees Reacting?
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https://www.nasdaq.com/articles/airline-baggage-crackdown-continues-how-are-passengers-and-employees-reacting-2014-11-22
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Last month I wrote an article about the growing trend of stricter rule enforcement in carry-on bags. The article grabbed the attention of many readers who, as expected, carried a diverse set of opinions ranging from complete support to total outrage at the airline policies.
Now that it's been a little over a month since Air Canada implemented stricter carry-on bag enforcement, there are reports coming from the front lines about how passengers and employees are reacting.
One month later
Understandably, passengers that used to bring carry-on bags that marginally exceed the size limits are the most annoyed by these bag rules changes. CBC reports that Air Canada service agent and union representative Sheila Fardy has noticed some of the problems resulting from the policy.
As Fardy puts it, "Passengers can be quite aggressive and swearing and stuff like that." Air Canada service agents are bearing the brunt of abuse from angry passengers, and according to Fardy, "People push by them, are rude, they invariably give you a list of all the other times I brought that [bag] on board an aircraft."
That's not to say all passengers with oversized carry-ons are abusive, with Fardy noting that this group is a small minority but still enough to cause a problem.
It must be said that Air Canada is far from the only carrier implementing stricter enforcement of carry-on bag rules. United Airlines , Delta Air Lines , and American Airlines Group have also tightened up enforcement over the past several months.
At these carriers, passenger reaction has also been mixed. While some passengers support the enforcement for the overhead bin space freed up, those with oversized carry-ons have been complaining of inconvenience and the extra costs of checking a bag.
In a New York Times article written shortly after United Airlines began stricter enforcement, reaction from flyers was mixed with some flyers supporting the rules, others complaining about the bag sizers targeting oddly shaped bags, and one flyer claiming the rules were being selectively enforced with travelers in business attire being exempt.
What the public thinks
It can be difficult to gauge public opinion on the subject of the carry-on bag crackdown, but a YouGov poll released shortly after United implemented its enforcement changes sheds some light on the situation.
The poll asked: "United Airlines has started a crackdown on the size of carry-on luggage allowed on their planes. Passengers now need to prove that their bag is smaller than the maximum allowance. In principle do you support or oppose this?" When presented with this question, the poll found that among all adults surveyed, 32% supported the increased enforcement while 24% opposed it.
However, among people who had flown within the past year, 50% supported the change while 29% opposed it. Considering airlines cater to those who are more likely to fly, this poll indicates that the carry-on bag crackdown is generally favored by the most valuable customers of airlines.
Will the crackdown continue?
While airline policies do have a habit of changing frequently, I expect tighter carry-on bag enforcement to stick around for a few key reasons.
First, airlines do make extra money from this policy. A carry-on bag is free with the major airlines but they can collect a checked bag fee when that carry-on is found to be oversized. In fact, this is one area that has those who oppose the new policy so angry, since they see this as another way to nickel and dime passengers. Of note here is that Air Canada's timing was particularly suspect, as the carry-on bag tightening almost perfectly coincided with the airline introducing its first checked bag fee for domestic Canada flights.
Second, the data available shows that flyers generally support these changes or are at least not overwhelmingly opposed. It's very difficult to convince airlines to give up a revenue generating policy.
Third, as much as flyers may complain, revenue-generating airline policies are rarely reversed. We can all remember when checked bags first started costing us, but that policy is now an industry standard and most frequent flyers think nothing of it. As tighter enforcement of carry-on bags sticks around for longer, incidents of abusive passengers are also likely to fall since the change will be a surprise to fewer people.
While the debate between those who support and oppose the changes will continue, I expect such enforcement to continue and become a regular part of airline policy due to a combination of current passenger support and financial benefits for airlines.
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The article Airline Baggage Crackdown Continues: How Are Passengers and Employees Reacting? originally appeared on Fool.com.
Alexander MacLennan owns shares of Air Canada, AMERICAN AIRLINES GROUP INC and Delta Air Lines. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC. 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.
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The article grabbed the attention of many readers who, as expected, carried a diverse set of opinions ranging from complete support to total outrage at the airline policies. Air Canada service agents are bearing the brunt of abuse from angry passengers, and according to Fardy, "People push by them, are rude, they invariably give you a list of all the other times I brought that [bag] on board an aircraft." Simply click here to receive your free copy of our new report that details how you can take advantage of these strategie The article Airline Baggage Crackdown Continues: How Are Passengers and Employees Reacting?
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United Airlines , Delta Air Lines , and American Airlines Group have also tightened up enforcement over the past several months. In a New York Times article written shortly after United Airlines began stricter enforcement, reaction from flyers was mixed with some flyers supporting the rules, others complaining about the bag sizers targeting oddly shaped bags, and one flyer claiming the rules were being selectively enforced with travelers in business attire being exempt. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC.
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In a New York Times article written shortly after United Airlines began stricter enforcement, reaction from flyers was mixed with some flyers supporting the rules, others complaining about the bag sizers targeting oddly shaped bags, and one flyer claiming the rules were being selectively enforced with travelers in business attire being exempt. While the debate between those who support and oppose the changes will continue, I expect such enforcement to continue and become a regular part of airline policy due to a combination of current passenger support and financial benefits for airlines. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC.
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It must be said that Air Canada is far from the only carrier implementing stricter enforcement of carry-on bag rules. A carry-on bag is free with the major airlines but they can collect a checked bag fee when that carry-on is found to be oversized. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8526.0
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2014-11-20 00:00:00 UTC
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Every Number Politicians Tell You About Keystone XL Is Wrong
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https://www.nasdaq.com/articles/every-number-politicians-tell-you-about-keystone-xl-wrong-2014-11-20
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In Congress' undying effort to look like they are doing something while actually do nothing, the Senate has once again voted down the Keystone XL pipeline. In reality, though, nothing has changed except for one thing. All of those handy talking points they've been using to sway voters one way or another about economic benefits, jobs, or the environmental impact are probably wrong.
In this week's episode of Where the Money Is , Motley Fool Analysts Tyler Crowe and Taylor Muckerman explain why the economics of the Keystone XL are not what they used to be. Also, they look into the dirty dealings by banks in the commodities market as well as why the airline industry is somehow becoming less fuel efficient by the day.
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The article Every Number Politicians Tell You About Keystone XL Is Wrong originally appeared on Fool.com.
Taylor Muckerman has no position in any stocks mentioned. Tyler Crowe has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. The Motley Fool owns shares of JPMorgan Chase. 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.
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All of those handy talking points they've been using to sway voters one way or another about economic benefits, jobs, or the environmental impact are probably wrong. In this week's episode of Where the Money Is , Motley Fool Analysts Tyler Crowe and Taylor Muckerman explain why the economics of the Keystone XL are not what they used to be. Also, they look into the dirty dealings by banks in the commodities market as well as why the airline industry is somehow becoming less fuel efficient by the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In this week's episode of Where the Money Is , Motley Fool Analysts Tyler Crowe and Taylor Muckerman explain why the economics of the Keystone XL are not what they used to be.
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In this week's episode of Where the Money Is , Motley Fool Analysts Tyler Crowe and Taylor Muckerman explain why the economics of the Keystone XL are not what they used to be. Top dividend stocks for the next decade The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio.
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In this week's episode of Where the Money Is , Motley Fool Analysts Tyler Crowe and Taylor Muckerman explain why the economics of the Keystone XL are not what they used to be. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
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8527.0
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2014-11-18 00:00:00 UTC
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Is Delta Air Lines Unfairly Fighting a Second Atlanta Airport?
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https://www.nasdaq.com/articles/delta-air-lines-unfairly-fighting-second-atlanta-airport-2014-11-18
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Of the top 10 U.S. metropolitan areas, there's only one without a secondary passenger airport according to FAA and Census data. Unlike most other large cities, Atlanta has only one large commercial airport: Hartsfield-Jackson Atlanta International Airport, which serves as a major hub for Delta Air Lines .
But another group has pushed to open an airport northwest of Atlanta for commercial passenger traffic. So far, their efforts have been unsuccessful, but is Delta Air Lines to blame?
Protecting your turf
No one likes having to battle extra competition and one way reducing competition can be accomplished is by controlling a large percentage of the slots able to serve a particular city. By controlling these slots, an airline can reduce the number and, consequently, variety of flights serving that area.
Regulators have taken action here and have made slot divestments a key part of the recent mergers between major airlines. In the merger between United Airlines and Continental Airlines, which formed United Continental Holdings , the airline agreed to lease 36 slots at Newark International Airport to Southwest Airlines to settle demands from regulators.
When American Airlines planned to merge with US Airways last year, the Department of Justice filed a lawsuit to block the merger, but the case was later settled with slot divestments from the new American Airlines Group at several major airports.
Delta Air Lines has already noted its opposition to Paulding Northwest Atlanta Airport handling commercial passenger traffic with Delta CEO Richard Anderson saying last year, "With the city of Atlanta and Mayor (Kasim) Reed, we will work together to oppose any investment in that facility," according to the Atlanta Journal Constitution .
Is it unfair?
There's nothing wrong with Delta Air Lines being against a second airport opening for commercial traffic in and of itself. The airline maintains that its opposition stems from a concern over the use of taxpayer dollars, city land restrictions, and the use of scarce federal funds. But the real question regulators would care about is whether the airline engaged in any tactics that violate the law.
Recently, Reuters reported that the Department of Transportation was looking into whether Delta engaged in "unfair and deceptive practices" in their effort to prevent expansion at Paulding Northwest Atlanta Airport.
However, this is not an official DOT investigation -- the department is looking into a complaint received by Transportation Secretary Anthony Foxx. Following growing press coverage of Delta and the DOT, the department said, "We are not focusing on any particular entity. We are simply trying to assess the facts." Adding another layer of complexity to the Paulding Airport debate is that Delta and the county have both asked the Transportation Department to investigate the other side.
Although Delta and Atlanta mayor Kasim Reed continue their opposition to the Paulding Airport expansion, Reuters reports that the FAA has cleared the way for the environmental study of the expansion to begin. With this being one of the last major steps before expansion can begin, expect both sides to continue their campaigns for and against this airport expansion.
Delta Air Lines clearly has an interest in stopping commercial expansion at Paulding Northwest Atlanta Airport, but there is no clear evidence that the airline ever moved outside the law in its actions. That's not to definitively say the airline never did so, but there is not enough public evidence at this point to support such a conclusion, and the DOT does not appear to be targeting Delta in an investigation. Furthermore, there are other legitimate concerns about airport expansion including cost to taxpayers and land use that have led to groups besides Delta, including Atlanta's mayor, opposing the Paulding Airport expansion.
The fight over the future of this airport is far from over, and investors should join DOT officials in keeping a close eye on this situation.
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A Seattle couple recently discovered some little-known Social Security secrets that can boost many retirees' income by as much as $60,000. They were shocked by how easy it was to actually take advantage of these loopholes. And although it may seem too good to be true, it's 100% real. In fact, one MarketWatch reporter argues that if more Americans used them, the government would have to shell out an extra $10 billion... every year! So once you learn how to take advantage of these loopholes, you could retire confidently with the peace of mind we're all after, even if you're woefully unprepared. Simply click here to receive your free copy of our new report that details how you can take advantage of these strategie
The article Is Delta Air Lines Unfairly Fighting a Second Atlanta Airport? originally appeared on Fool.com.
Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC and Delta Air Lines. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC. 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.
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Recently, Reuters reported that the Department of Transportation was looking into whether Delta engaged in "unfair and deceptive practices" in their effort to prevent expansion at Paulding Northwest Atlanta Airport. Adding another layer of complexity to the Paulding Airport debate is that Delta and the county have both asked the Transportation Department to investigate the other side. Simply click here to receive your free copy of our new report that details how you can take advantage of these strategie The article Is Delta Air Lines Unfairly Fighting a Second Atlanta Airport?
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Unlike most other large cities, Atlanta has only one large commercial airport: Hartsfield-Jackson Atlanta International Airport, which serves as a major hub for Delta Air Lines . Although Delta and Atlanta mayor Kasim Reed continue their opposition to the Paulding Airport expansion, Reuters reports that the FAA has cleared the way for the environmental study of the expansion to begin. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC.
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Unlike most other large cities, Atlanta has only one large commercial airport: Hartsfield-Jackson Atlanta International Airport, which serves as a major hub for Delta Air Lines . Delta Air Lines has already noted its opposition to Paulding Northwest Atlanta Airport handling commercial passenger traffic with Delta CEO Richard Anderson saying last year, "With the city of Atlanta and Mayor (Kasim) Reed, we will work together to oppose any investment in that facility," according to the Atlanta Journal Constitution . Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC.
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However, this is not an official DOT investigation -- the department is looking into a complaint received by Transportation Secretary Anthony Foxx. Delta Air Lines clearly has an interest in stopping commercial expansion at Paulding Northwest Atlanta Airport, but there is no clear evidence that the airline ever moved outside the law in its actions. Simply click here to receive your free copy of our new report that details how you can take advantage of these strategie The article Is Delta Air Lines Unfairly Fighting a Second Atlanta Airport?
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8528.0
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2014-11-16 00:00:00 UTC
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What Does the New American Airlines Frequent Flyer Program Mean for You?
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https://www.nasdaq.com/articles/what-does-new-american-airlines-frequent-flyer-program-mean-you-2014-11-16
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Frequent flyer programs have become commonplace in the airline industry, but industry-wide policies are far from consistent. Now that American Airlines has merged with US Airways to form American Airlines Group , the combined airline will need to adopt a single frequent flyer program.
Some details on this plan have been released, and they appear markedly different from those of Delta Air Lines and United Continental Holdings .
Miles vs. dollars
Traditionally, the frequent flyer programs of the legacy airlines awarded reward miles based on the number of actual miles flown by passengers. However, this policy is changing at Delta Air Lines and United Airlines, where, starting next year, frequent flyer miles will be awarded based upon a combination of dollars spent and status within the airline.
The new systems from Delta and United are aiming to reward passengers more for how much they spend with the airline rather than how long they spend on its planes. Passengers who rack up frequent flyer miles by finding cheap fares for long distance flights will certainly be disappointed, but Delta and United want to focus more on their high status -- and high paying -- customers.
Many people, including me, were wondering whether American Airlines would follow the same path in changing its frequent flyer program, AAdvantage, as it merged with the US Airways rewards program, Dividend Miles. But the airline let long distance flying bargain hunters heave a sigh of relief, as the plan made no mention of deviating from the current distance-flown awarding basis.
While the airline has not permanently ruled out changing to a spending based miles system, the likelihood of such a change drastically decreases with this announcement, since the integration of AAdvantage and Dividend Miles would have been an excellent opportunity to announce rewards changes. However, investors should expect American to monitor whether it begins to attract bargain-hunting frequent flyer mile collecting customers and whether they are beneficial for the airline overall.
Bringing the programs together
Like the mergers of Delta Air Lines and Northwest Airlines and United Airlines and Continental Airlines, the integration of American Airlines and US Airways requires that each airline's frequent flyer program be fully integrated with the other.
Since the ultimate goal is to fully integrate the airline under the American Airlines name, the new frequent flyer program takes the name of American's current program, AAdvantage.
But there are many aspects of frequent flyer programs that go beyond just earning miles, and like so many other complex airline policies, they will also need to be factored in.
source: US Airways
At the top of the list is qualification for status levels. Currently, American's AAdvantage program has three status levels -- Gold, Platinum, and Executive Platinum -- while US Airways' Dividend Miles program has four status levels: Silver, Gold, Platinum, and Chairman's Preferred. To fold the four levels of Dividend Miles into the three levels of AAdvantage, the top and bottom status levels of Dividend Miles will fold into the respective top and bottom status levels of AAdvantage, while Dividend Miles' Gold and Platinum levels will become AAdvantage Platinum.
Also of importance is that the threshold for Executive Platinum in AAdvantage will increase from 100 qualifying segments to 120 qualifying segments starting next year. The airline expects to complete the rest of the program combination by the second quarter of 2015.
Bucking the trend
The integration of AAdvantage with Dividend Miles would have provided American Airlines Group with an ideal opportunity to switch to a dollars spent system and follow the lead of Delta Air Lines and United Airlines.
However, American Airlines has bucked the trend by keeping its changes rather small, although there will be some effects on certain elite status travelers. As the merger of American Airlines and US Airways approaches its one year anniversary, flyers and investors should continue to watch the integration progress at American Airlines Group and keep a close eye on the integration of reservation systems and frequent flyers programs on deck for next year.
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The article What Does the New American Airlines Frequent Flyer Program Mean for You? originally appeared on Fool.com.
Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC and Delta Air Lines. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC. 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.
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But the airline let long distance flying bargain hunters heave a sigh of relief, as the plan made no mention of deviating from the current distance-flown awarding basis. However, investors should expect American to monitor whether it begins to attract bargain-hunting frequent flyer mile collecting customers and whether they are beneficial for the airline overall. As the merger of American Airlines and US Airways approaches its one year anniversary, flyers and investors should continue to watch the integration progress at American Airlines Group and keep a close eye on the integration of reservation systems and frequent flyers programs on deck for next year.
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Currently, American's AAdvantage program has three status levels -- Gold, Platinum, and Executive Platinum -- while US Airways' Dividend Miles program has four status levels: Silver, Gold, Platinum, and Chairman's Preferred. To fold the four levels of Dividend Miles into the three levels of AAdvantage, the top and bottom status levels of Dividend Miles will fold into the respective top and bottom status levels of AAdvantage, while Dividend Miles' Gold and Platinum levels will become AAdvantage Platinum. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC.
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Bringing the programs together Like the mergers of Delta Air Lines and Northwest Airlines and United Airlines and Continental Airlines, the integration of American Airlines and US Airways requires that each airline's frequent flyer program be fully integrated with the other. As the merger of American Airlines and US Airways approaches its one year anniversary, flyers and investors should continue to watch the integration progress at American Airlines Group and keep a close eye on the integration of reservation systems and frequent flyers programs on deck for next year. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC.
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However, this policy is changing at Delta Air Lines and United Airlines, where, starting next year, frequent flyer miles will be awarded based upon a combination of dollars spent and status within the airline. Bucking the trend The integration of AAdvantage with Dividend Miles would have provided American Airlines Group with an ideal opportunity to switch to a dollars spent system and follow the lead of Delta Air Lines and United Airlines. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8529.0
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2014-11-16 00:00:00 UTC
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As Airline Profits Soar, Is Labor Unrest Inevitable?
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AAL
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https://www.nasdaq.com/articles/airline-profits-soar-labor-unrest-inevitable-2014-11-16
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nan
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nan
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Earnings at the top U.S. airlines -- particularly American Airlines , Delta Air Lines , and Southwest Airlines -- have soared in the past two years or so. In many ways, a new golden age of the U.S. airline industry has begun.
However, as airline profits soar, it's natural for employees to look for pay increases and work rule improvements. That's especially true because employees had to endure reverses on both fronts in the past 10-15 years. This tension recently revealed itself strikingly as American Airlines flight attendants rejected a lucrative contract offer from management.
Contract time at American Airlines
Delta recently announced 3%-4% raises for all front-line employees (Photo: The Motley Fool)
In September, Delta Air Lines announced that it would give employees an early profit sharing payout this year to reward them for the company's surge in profitability. Delta also promised a 3%-4% raise for all front-line employees next year.
Coincidentally, Delta announced these raises around the same time that American Airlines and its flight attendant union were putting the finishing touches on a tentative contract agreement.
The Association of Professional Flight Attendants had committed to negotiating an industry-leading contract with American's management team. Delta's raises meant that the just-completed contract was no longer the best in the industry. So the APFA went back to American Airlines' management and got a match for the Delta raises, worth $13 million annually.
The proposed contract would have allowed American Airlines and US Airways flight attendants to leapfrog other flight attendant groups to become the best paid in the industry, so it seemed like a no-brainer that union members would ratify it. Instead, the APFA announced on Sunday that the ratification vote failed, with 8,180 votes in favor and 8,196 opposed.
A strange situation
Normally, when union membership rejects a tentative contract agreement, management and the union resume negotiations in order to reach an agreement that can find enough support for ratification. However, American Airlines' unions and management already agreed on an expedited arbitration process in the event of a failed ratification vote.
Under the terms of this agreement, the arbitration award is capped at parity with Delta's industry-leading contact. As a result, the company and the union both agree that the contract terms determined by arbitration will be worse than what the flight attendants just rejected!
American Airlines may be heading to arbitration with its flight attendant union (Photo: American Airlines)
This could make for a quick arbitration process. Both sides have already agreed to an industry-standard contract, so there's not much left to "arbitrate." Presumably, American would assent to the maximum $111 million in contract improvements, putting its flight attendants at parity with Delta's. That would represent an $82 million savings over the life of the contract compared to the agreement that was just rejected.
Are bad labor relations back?
Presumably, the thousands of American Airlines flight attendants who voted against the tentative agreement want better contract terms -- not worse ones. Given that American Airlines now has a clear legal path to imposing contract terms that are less generous than what it had previously offered, it's clear that the flight attendants are playing "chicken" with management.
If the union and management team go ahead with the arbitration process, it will undoubtedly make a lot of flight attendants bitter. In the long run, that's probably not worth the relatively small amount of savings that American would achieve.
That's why thousands of flight attendants are betting that American Airlines will offer a better deal in mediation talks before going to binding arbitration. Yet there is a very strong possibility that the union and management team will end up in arbitration anyway, locking the flight attendants into a contract inferior to the one they just rejected.
This isn't the only battleground
The American Airlines flight attendant contract is one of many recent instances of contentious bargaining in the airline industry. Southwest Airlines has traditionally had excellent labor relations, yet a recent piece in Businessweek described its workforce as "disgruntled."
Southwest Airlines has also experienced some labor tensions recently (Photo: The Motley Fool)
Sure enough, 10 union leaders -- representing the vast majority of Southwest's employees -- sent a letter to Southwest CEO Gary Kelly in June, claiming that employee morale was at an all-time low. The union leaders suggested that the inability to reach long-term contract agreements with Southwest was one of the biggest problems.
Meanwhile, the International Association of Machinists -- a prominent airline union -- is making a push to represent flight attendants at Delta. (Most Delta employees, including flight attendants, are not currently unionized.)
Rising health insurance premiums have been a key point emphasized by the IAM in pitches to potential members at Delta. It's far from certain that it will succeed in its unionization drive. But the fact that it's even trying when Delta flight attendants have the best pay in the industry shows that many employees want even better terms in light of Delta's record profitability.
The next few months could be key
American Airlines and the APFA union have just a few months to try to hammer out a revised agreement in mediation before going to binding arbitration. The arbitration result is certain to be worse than the contract terms that American's flight attendants just rejected.
What happens in the coming months could be critical for the entire airline industry. If American and the APFA reach a mediated settlement it will provide a model for labor-management cooperation in an era of plenty for U.S. airlines. If not, it could be the beginning of a new round of labor strife as airline workers try to get a bigger piece of airlines' surging profits.
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The article As Airline Profits Soar, Is Labor Unrest Inevitable? 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 - 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.
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This tension recently revealed itself strikingly as American Airlines flight attendants rejected a lucrative contract offer from management. Coincidentally, Delta announced these raises around the same time that American Airlines and its flight attendant union were putting the finishing touches on a tentative contract agreement. The Motley Fool just completed a brand-new investigative report on this significant investment topic and the company helping fuel its boom.
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Earnings at the top U.S. airlines -- particularly American Airlines , Delta Air Lines , and Southwest Airlines -- have soared in the past two years or so. Contract time at American Airlines Delta recently announced 3%-4% raises for all front-line employees (Photo: The Motley Fool) In September, Delta Air Lines announced that it would give employees an early profit sharing payout this year to reward them for the company's surge in profitability. Southwest Airlines has also experienced some labor tensions recently (Photo: The Motley Fool) Sure enough, 10 union leaders -- representing the vast majority of Southwest's employees -- sent a letter to Southwest CEO Gary Kelly in June, claiming that employee morale was at an all-time low.
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Contract time at American Airlines Delta recently announced 3%-4% raises for all front-line employees (Photo: The Motley Fool) In September, Delta Air Lines announced that it would give employees an early profit sharing payout this year to reward them for the company's surge in profitability. The proposed contract would have allowed American Airlines and US Airways flight attendants to leapfrog other flight attendant groups to become the best paid in the industry, so it seemed like a no-brainer that union members would ratify it. American Airlines may be heading to arbitration with its flight attendant union (Photo: American Airlines) This could make for a quick arbitration process.
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American Airlines may be heading to arbitration with its flight attendant union (Photo: American Airlines) This could make for a quick arbitration process. Presumably, the thousands of American Airlines flight attendants who voted against the tentative agreement want better contract terms -- not worse ones. The arbitration result is certain to be worse than the contract terms that American's flight attendants just rejected.
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8530.0
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2014-11-14 00:00:00 UTC
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Profit from Falling Oil Prices with These Stocks - Investment Ideas
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AAL
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https://www.nasdaq.com/articles/profit-falling-oil-prices-these-stocks-investment-ideas-2014-11-14
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nan
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nan
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Moving people and things from point A to point B is big business. And right now - whether it's by plane, train or automobile - business is good.
Thanks in large part to an improving economy and cratering oil prices , the transportation industry has been one of the hottest this year.
And there still appears to be plenty of gas left in the tank for these stocks.
Airlines Soaring
Warren Buffett once called airlines a "death trap" for investors, but this year they have been anything but. Airline stocks have soared as fuel prices has fallen and demand for air travel has risen amid an improving labor market.
Fuel is often the number one expense for airlines. It's also one of the most volatile. So the recent collapse in oil prices has provided a huge tail wind for these firms.
While it's true that most airlines hedge at least some of their fuel costs, most should still continue to benefit immensely from falling oil prices.
First, most airlines don't hedge anywhere near 100% of their fuel needs. In fact, many airlines have reduced their hedging this year ( American Airlines ( AAL ) has stopped hedging altogether).
Second, many airlines use call options to hedge the risk of rising oil. So this doesn't obligate them to buy at higher prices should oil prices fall, and they only lose money on the cost of the option itself.
Additionally, many airlines can lock in today's low oil prices with new hedges that will benefit them in future periods should oil prices rise.
And while some worry about lower fuel costs increasing capacity in the industry, total airline industry domestic capacity growth is expected to be a relatively modest 4% in 2015, according to industry experts. That should help keep ticket prices high.
So, all-in-all, falling oil prices are a major tailwind for most airlines.
And it's not just airlines that are benefiting from cheaper fuel costs and limited capacity. The trucking industry is profiting too.
Trucking Ahead
It shouldn't come as a surprise to anyone with a car that fuel costs are also a major expense for many trucking companies. And while some of these companies hedge a portion of their fuel needs like airlines, or add on a fuel surcharge to customers, most are still well-positioned to benefit from falling oil prices.
Another potential tailwind for the trucking industry is a major capacity constraint, which should lead to higher prices and higher utilization rates over time, according to many industry analysts.
Perhaps the biggest reason for the coming capacity constraint is the growing shortage of truck drivers. Another factor that could keep capacity limited is increased federal regulation.
A slew of federal laws and federally mandated rules and regulations are expected to come down the pike over the next few of years, possibly requiring electronic logging devices, a national clearinghouse for drug and alcohol test results, stiffer greenhouse emission standards, higher liability insurance minimums and mandated stability control systems in trucks.
These high regulatory hurdles create increased barriers to entry, thereby restricting new competition and keeping prices - and profits - high for existing firms.
4 Transportation Stocks to Consider
So what are some attractive companies within the Transportation industry?
Here are four:
Alaska Air Group ( ALK )
Alaska Air Group is the holding company for Alaska Airlines and Horizon Air, which collectively serve over 90 destinations in North America. The company does hedge some of its fuel costs, but all future oil hedges are call options, which effectively cap fuel prices while still allowing it to benefit from a decline in prices. Approximately 35% of expected fuel requirements in 2015 were hedged at the end of Q3.
Earnings estimates have soared for Alaska Air Group this year, along with the stock price, as it has delivered five consecutive positive earnings surprises. It is a Zacks Rank #2 (Buy) stock.
Spirit Airlines ( SAVE )
Spirit Airlines is a low-cost airline headquartered in Miramar, Florida that offers affordable travel to price-conscious customers. It operates more than 280 daily flights to over 55 destinations in the United States, the Caribbean and Latin America. At the end of Q3, the company had hedged approximately 29.2% of its expected fuel needs for the fourth quarter 2014 and first quarter 2015. So Spirit should greatly benefit from falling oil prices.
Earnings estimates continue to soar for Spirit for both 2014 and 2015. It is a Zacks Rank #1 (Strong Buy).
Old Dominion Freight Line ( ODFL )
Old Dominion Freight Line is a less-than-truckload multi-regional motor carrier that provides direct service throughout the continental United States. The company does not hedge against rising fuel costs, but it does collect a fuel surcharge from customers. However, this doesn't fully cover its fuel expenses, which represent the largest component of its operating expenses. This has helped Old Dominion to expand its profit margins this year.
Consensus estimates have risen sharply for Old Dominion as it has delivered three straight earnings beats. It is a Zacks Rank #2 (Buy) stock.
Knight Transportation ( KNX )
Knight Transportation is a truckload carrier that offers dry van, refrigerated, and brokerage services to customers throughout the United States. It primarily transports consumer staples, retail, paper products, packaging/plastics, manufacturing, and import/export commodities. Like Old Dominion, Knight does not hedge its fuel costs but does have a fuel surcharge program that it collects from its customers. However, this surcharge does not cover all of its fuel costs, so it should still benefit overall from falling oil prices.
Consensus estimates have been surging for Knight over the last several months as it has delivered four consecutive positive earnings surprises. It is a Zacks Rank #1 (Strong Buy) stock.
The Bottom Line
Amid falling oil prices, an improving economy, and restricted capacity, the transportation industry has been one of the hottest this year. And these four transportation stocks have plenty of fuel left in the tank to continue soaring.
Todd Bunton, CFA is a Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor and Surprise Trader services.
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SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
OLD DOMINION FL (ODFL): Free Stock Analysis Report
KNIGHT TRANSN (KNX): Free Stock Analysis Report
ALASKA AIR GRP (ALK): 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.
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In fact, many airlines have reduced their hedging this year ( American Airlines ( AAL ) has stopped hedging altogether). Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report OLD DOMINION FL (ODFL): Free Stock Analysis Report KNIGHT TRANSN (KNX): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Airline stocks have soared as fuel prices has fallen and demand for air travel has risen amid an improving labor market.
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Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report OLD DOMINION FL (ODFL): Free Stock Analysis Report KNIGHT TRANSN (KNX): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, many airlines have reduced their hedging this year ( American Airlines ( AAL ) has stopped hedging altogether). Here are four: Alaska Air Group ( ALK ) Alaska Air Group is the holding company for Alaska Airlines and Horizon Air, which collectively serve over 90 destinations in North America.
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Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report OLD DOMINION FL (ODFL): Free Stock Analysis Report KNIGHT TRANSN (KNX): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, many airlines have reduced their hedging this year ( American Airlines ( AAL ) has stopped hedging altogether). And while some of these companies hedge a portion of their fuel needs like airlines, or add on a fuel surcharge to customers, most are still well-positioned to benefit from falling oil prices.
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In fact, many airlines have reduced their hedging this year ( American Airlines ( AAL ) has stopped hedging altogether). Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report OLD DOMINION FL (ODFL): Free Stock Analysis Report KNIGHT TRANSN (KNX): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. First, most airlines don't hedge anywhere near 100% of their fuel needs.
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8531.0
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2014-11-13 00:00:00 UTC
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Can the Uptrend Continue for American Airlines (AAL)? - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/can-the-uptrend-continue-for-american-airlines-aal-tale-of-the-tape-2014-11-13
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nan
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nan
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Investors certainly have to be happy with American Airlines Group Inc ( AAL ) and its short term performance. After all, the stock has jumped by 37.9% in the past 4 weeks, and it is also above its 20 Day Simple Moving Average as well. This is certainly a good trend, but investors are probably asking themselves, can this positive trend continue for AAL?
While we can never know for sure, it is pretty encouraging that estimates for AAL have moved higher in the past few weeks, meaning that analyst sentiment is moving in the right way. Plus, the stock actually has a Zacks Rank #2 (Buy), so the recent move higher for this spotlighted company may definitely continue over the next few weeks.
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.
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Investors certainly have to be happy with American Airlines Group Inc ( AAL ) and its short term performance. This is certainly a good trend, but investors are probably asking themselves, can this positive trend continue for AAL? While we can never know for sure, it is pretty encouraging that estimates for AAL have moved higher in the past few weeks, meaning that analyst sentiment is moving in the right way.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Investors certainly have to be happy with American Airlines Group Inc ( AAL ) and its short term performance. This is certainly a good trend, but investors are probably asking themselves, can this positive trend continue for AAL?
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While we can never know for sure, it is pretty encouraging that estimates for AAL have moved higher in the past few weeks, meaning that analyst sentiment is moving in the right way. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Investors certainly have to be happy with American Airlines Group Inc ( AAL ) and its short term performance.
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Investors certainly have to be happy with American Airlines Group Inc ( AAL ) and its short term performance. This is certainly a good trend, but investors are probably asking themselves, can this positive trend continue for AAL? While we can never know for sure, it is pretty encouraging that estimates for AAL have moved higher in the past few weeks, meaning that analyst sentiment is moving in the right way.
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8532.0
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2014-11-11 00:00:00 UTC
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Notable ETF Inflow Detected - VXF, TWTR, AAL, TSLA
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AAL
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-vxf-twtr-aal-tsla-2014-11-11
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nan
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nan
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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 $105.0 million dollar inflow -- that's a 2.9% increase week over week in outstanding units (from 41,441,498 to 42,641,747). Among the largest underlying components of VXF, in trading today Twitter Inc (Symbol: TWTR ) is up about 0.1%, American Airlines Group Inc (Symbol: AAL) is up about 1.4%, and Tesla Motors Inc (Symbol: TSLA) is up by about 3.3%. 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 $88.99 as the 52 week high point - that compares with a last trade of $87.52. 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.
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Among the largest underlying components of VXF, in trading today Twitter Inc (Symbol: TWTR ) is up about 0.1%, American Airlines Group Inc (Symbol: AAL) is up about 1.4%, and Tesla Motors Inc (Symbol: TSLA) is up by about 3.3%. 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 $88.99 as the 52 week high point - that compares with a last trade of $87.52. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of VXF, in trading today Twitter Inc (Symbol: TWTR ) is up about 0.1%, American Airlines Group Inc (Symbol: AAL) is up about 1.4%, and Tesla Motors Inc (Symbol: TSLA) is up by about 3.3%. 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 $88.99 as the 52 week high point - that compares with a last trade of $87.52. 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.
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Among the largest underlying components of VXF, in trading today Twitter Inc (Symbol: TWTR ) is up about 0.1%, American Airlines Group Inc (Symbol: AAL) is up about 1.4%, and Tesla Motors Inc (Symbol: TSLA) is up by about 3.3%. 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 $105.0 million dollar inflow -- that's a 2.9% increase week over week in outstanding units (from 41,441,498 to 42,641,747). 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 $88.99 as the 52 week high point - that compares with a last trade of $87.52.
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Among the largest underlying components of VXF, in trading today Twitter Inc (Symbol: TWTR ) is up about 0.1%, American Airlines Group Inc (Symbol: AAL) is up about 1.4%, and Tesla Motors Inc (Symbol: TSLA) is up by about 3.3%. 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 $105.0 million dollar inflow -- that's a 2.9% increase week over week in outstanding units (from 41,441,498 to 42,641,747). 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 $88.99 as the 52 week high point - that compares with a last trade of $87.52.
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8533.0
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2014-11-11 00:00:00 UTC
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American Airlines Crew Votes Against 5-Year Labor Contract - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-crew-votes-against-5-year-labor-contract-analyst-blog-2014-11-11
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nan
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nan
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Flight attendants at American Airlines Group ( AAL ) voted down a joint five-year labor contract, which would have covered approximately 24,000 stewards of American Airlines and U.S. Airways, by a narrow margin. The rejection of the contract deals a blow to the integration process following the merger of American Airlines and U.S. Airways Group Inc., completed in late 2013 (read more: American Airlines to Merge with U.S. Airways ).
The merger, which occurred after a bankruptcy filing by American Airlines, led to the formation of the new company - American Airlines Group - which has, since then, been trading under the ticker AAL on Nasdaq. Interestingly, the merged entity has witnessed huge profits.
According to the Association of Professional Flight Attendants, 8,180 votes were in favor of the deal (tentative agreement) while 8,196 were against it, which led to the rejection of the contract by a slender margin of 16 votes. The tentative agreement covered guaranteed pay raises but did not include a profit-sharing plan. Other leading carriers such as Delta Air Lines, Inc. ( DAL ) have shared profits with their employees.
According to Reuters, the contract, had it gone through, would have been the first one since the merger to incorporate the combined workforce. American Airlines said that it was disappointed with the outcome of the voting as the contract, had it materialized, would have offered more economic value and better work rules than the one which will be now determined by the arbitration process.
With the contract being voted down, an arbitrator will decide the terms of the new agreement. The first arbitration meeting is scheduled to be held on Dec 3, 2014.
There will be no voting on the terms of the deal the arbitrator ultimately settles upon, which will be involuntarily imposed on the crew. However, the workers of both groups will continue to be governed by their respective contracts until the new contract takes shape. With the matter left to be decided by the arbitration process, the value of annual contract improvements over existing agreements is limited to $111 million.
We note that flight attendants had criticized the tentative agreement strongly when it was first announced in September this year, on grounds of the absence of profit sharing prospects.
We expect investors to remain glued to the arbitration proceedings to fathom the fate of the contract.
Zacks Rank
American Airlines carries a Zacks Rank # 2 (Buy). Better-ranked stocks in the airline space include Spirit Airlines ( SAVE ) and Southwest Airlines ( LUV ). 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
AMER AIRLINES (AAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Flight attendants at American Airlines Group ( AAL ) voted down a joint five-year labor contract, which would have covered approximately 24,000 stewards of American Airlines and U.S. Airways, by a narrow margin. The merger, which occurred after a bankruptcy filing by American Airlines, led to the formation of the new company - American Airlines Group - which has, since then, been trading under the ticker AAL on Nasdaq. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Flight attendants at American Airlines Group ( AAL ) voted down a joint five-year labor contract, which would have covered approximately 24,000 stewards of American Airlines and U.S. Airways, by a narrow margin. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report To read this article on Zacks.com click here. The merger, which occurred after a bankruptcy filing by American Airlines, led to the formation of the new company - American Airlines Group - which has, since then, been trading under the ticker AAL on Nasdaq.
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Flight attendants at American Airlines Group ( AAL ) voted down a joint five-year labor contract, which would have covered approximately 24,000 stewards of American Airlines and U.S. Airways, by a narrow margin. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report To read this article on Zacks.com click here. The merger, which occurred after a bankruptcy filing by American Airlines, led to the formation of the new company - American Airlines Group - which has, since then, been trading under the ticker AAL on Nasdaq.
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Flight attendants at American Airlines Group ( AAL ) voted down a joint five-year labor contract, which would have covered approximately 24,000 stewards of American Airlines and U.S. Airways, by a narrow margin. The merger, which occurred after a bankruptcy filing by American Airlines, led to the formation of the new company - American Airlines Group - which has, since then, been trading under the ticker AAL on Nasdaq. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report To read this article on Zacks.com click here.
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8534.0
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2014-11-11 00:00:00 UTC
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United Continental, Southwest Airlines October Traffic Rises - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/united-continental-southwest-airlines-october-traffic-rises-analyst-blog-2014-11-11
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nan
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nan
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United Continental Holdings Inc. ( UAL ) reported near-flat traffic figures for the month of Oct 2014. The month's consolidated traffic - measured in revenue passenger miles (RPMs) - improved a mere 0.4% year over year to 17 billion. Growth in Latin American traffic offset the decline in the Atlantic division.
Consolidated capacity (or available seat miles/ASMs) for the month was 20.9 billion, up 0.7% from Oct 2013. The load factor (percentage of seats filled by passengers), however, deteriorated to 81.7% from 81.9% in the same month last year. The company registered a completion factor of 99.3%, with 77.4% of flights on schedule.
Through the first ten months of 2014, United Continental has generated 173.4 billion (up 0.3% year over year) and ASMs of 206.7 billion (up 0.1%), leading to a load factor of 83.9%.
The company's numbers lagged that of rival Southwest Airlines Co. ( LUV ), whose traffic was up more than 4% in Oct 2014. Improved capacity led to the healthy rise in traffic. RPMs came in at 9 billion, up 4.4% from almost 8.6 billion recorded in the comparable period a year ago.
Meanwhile, on a year-over-year basis, Southwest Airlines' capacity (available seat miles/ASMs) increased 0.4% to 10.8 billion. Load factor came in at 83.1%, up 320 basis points (bps) from the year-over-year equivalent of 79.9%.
In the first ten months of 2014, Southwest Airlines generated RPMs of 90.3 billion (up 3.4% year over year) and ASMs of 109.2 billion (down 0.1%), leading to a load factor of 82.7% (up 280 bps).
Another major player in the industry, American Airlines Group ( AAL ), also reported traffic data for the month of October. RPMs came in at 17.9 billion for the month, up 0.2% year over year.
Capacity increased 0.5% to 21.8 billion. Load factor came in at 82.2%, down 0.3% from the year-ago figure. The company still projects the consolidated passenger revenue per available seat mile for the final quarter of 2014 to be approximately flat to up 2%.
United Continental carries a Zacks Rank #2 (Buy). A better-ranked stock in the airline space is Spirit Airlines ( SAVE ), with a Zacks Rank #1 (Strong Buy). Southwest Airlines also carries 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
UNITED CONT HLD (UAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): 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.
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Another major player in the industry, American Airlines Group ( AAL ), also reported traffic data for the month of October. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): 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 ) reported near-flat traffic figures for the month of Oct 2014.
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Another major player in the industry, American Airlines Group ( AAL ), also reported traffic data for the month of October. Through the first ten months of 2014, United Continental has generated 173.4 billion (up 0.3% year over year) and ASMs of 206.7 billion (up 0.1%), leading to a load factor of 83.9%.
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Another major player in the industry, American Airlines Group ( AAL ), also reported traffic data for the month of October. Through the first ten months of 2014, United Continental has generated 173.4 billion (up 0.3% year over year) and ASMs of 206.7 billion (up 0.1%), leading to a load factor of 83.9%.
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Another major player in the industry, American Airlines Group ( AAL ), also reported traffic data for the month of October. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Consolidated capacity (or available seat miles/ASMs) for the month was 20.9 billion, up 0.7% from Oct 2013.
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8535.0
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2014-11-11 00:00:00 UTC
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4 Safer Ways to Invest in Airlines
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AAL
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https://www.nasdaq.com/articles/4-safer-ways-invest-airlines-2014-11-11
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nan
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nan
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Airline stocks have soared over the past couple years, and there are plenty of reasons to be bullish. Industry consolidation, capacity discipline, and improving demand are boosting profits, yet stock valuations remain low.
However, many investors want to avoid the risks of airline stocks but are still bullish on airlines as a whole. For these investors, there are several alternatives that can capture some of the airline upside while avoiding direct investment in this traditionally challenging industry.
Manufacturing
When airlines are strapped for cash, they put off purchases of new aircraft, but the industry turnaround has had the reverse effect. Aircraft orders today are booming with record orders at the two largest commercial aircraft manufacturers, Boeing and Airbus Group .
North American airlines are powering much of the growth, as they are among the most profitable airlines in the industry right now, but Boeing and Airbus are also seeing demand from major Asian airlines and growing discount airlines worldwide.
Unlike the airlines themselves, which have gone through the bankruptcy process during tough times, Boeing and Airbus have avoided such reorganizations. While the airlines are exposed directly to consumer demand and the volatile costs of running an airline, aircraft manufacturers are more insulated from this by remaining further back in the supply chain.
In fact, airline bankruptcies don't necessarily cancel aircraft orders. During its 2011 bankruptcy, American Airlines, now part of the new American Airlines Group , was allowed to move forward with a record aircraft order.
Airbus and Boeing are further protected from airline industry downturns through their other divisions, which build defense equipment. While commercial aircraft manufacturing is still the big money-maker for these companies, the benefits of having other sources of revenue cannot be ignored by investors looking to reduce risk.
If the airline industry can continue to boom, look for more carriers to direct cash flows toward new aircraft orders, for which Boeing and Airbus are the only games in town for large aircraft.
Leasing
Not every plane you see painted up in an airline's colors is actually owned by that airline. In fact, there is a multibillion-dollar industry in leasing aircraft to airlines. Leasing aircraft is common for major airlines because it allows them to use the latest equipment without having to raise massive amounts of capital themselves.
Source: AerCap.
Here, AerCap Holdings is the largest player after the aircraft leasing company AerCap successfully acquired International Lease Finance Corporation (ILFC) from American International Group. The cash and stock deal caused AerCap's shares to surge and left AIG with about 46% of the combined company. While there is some integration risk present at AerCap, the shares trade at just over 10 times FY2015 based on data from NASDAQ, which could mean this is already factored into the stock price.
Source: Aircastle.
But investors who are looking for a dividend as well may want to take a look at Aircastle , which currently sports a dividend yield of 4.4%. Although smaller than AerCap, Aircastle is still solidly profitable and trades at only 11.1 times projected FY2015 earnings from NASDAQ. With a fleet of aircraft leased to airlines around the world, Aircastle still has the worldwide diversification of AerCap, but with a smaller fleet.
Both AerCap and Aircastle still rely on demand from airlines to lease out their aircraft, however, like Boeing and Airbus, aircraft leasing companies are more insulated from short-term issues. Unlike airlines that rely on current consumer demand, aircraft leasing companies typically sign longer-term contracts where they will receive payments whether the airline is profitable or not.
Of course, there is still a risk of contracts being cancelled if the airline declares bankruptcy, but most recent major airline bankruptcies have seen the airline continue operating during reorganization. While contract renegotiations could force leasing companies to take a hit, their shareholders would probably still come out ahead of those of the bankrupt airline.
Alternatives to airlines
Today, I still remain bullish on airlines, but I recognize airline stocks are more risky than many conservative investors would find suitable for their portfolios. But commercial aircraft manufacturers Boeing and Airbus and aircraft leasing companies AerCap and Aircastle give more conservative investors a way to benefit from a strengthening airline industry while remaining somewhat insulated from airline-related risks.
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The article 4 Safer Ways to Invest in Airlines originally appeared on Fool.com.
Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice. Always do your own due diligence before buying or selling any security.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.
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Industry consolidation, capacity discipline, and improving demand are boosting profits, yet stock valuations remain low. While there is some integration risk present at AerCap, the shares trade at just over 10 times FY2015 based on data from NASDAQ, which could mean this is already factored into the stock price. The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term.
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Aircraft orders today are booming with record orders at the two largest commercial aircraft manufacturers, Boeing and Airbus Group . But commercial aircraft manufacturers Boeing and Airbus and aircraft leasing companies AerCap and Aircastle give more conservative investors a way to benefit from a strengthening airline industry while remaining somewhat insulated from airline-related risks. Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice.
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North American airlines are powering much of the growth, as they are among the most profitable airlines in the industry right now, but Boeing and Airbus are also seeing demand from major Asian airlines and growing discount airlines worldwide. Alternatives to airlines Today, I still remain bullish on airlines, but I recognize airline stocks are more risky than many conservative investors would find suitable for their portfolios. Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long January 2017 $25 calls on AMERICAN AIRLINES GROUP INC, and long January 2016 $60 calls on AMERICAN AIRLINES GROUP INC.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice.
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North American airlines are powering much of the growth, as they are among the most profitable airlines in the industry right now, but Boeing and Airbus are also seeing demand from major Asian airlines and growing discount airlines worldwide. Both AerCap and Aircastle still rely on demand from airlines to lease out their aircraft, however, like Boeing and Airbus, aircraft leasing companies are more insulated from short-term issues. But commercial aircraft manufacturers Boeing and Airbus and aircraft leasing companies AerCap and Aircastle give more conservative investors a way to benefit from a strengthening airline industry while remaining somewhat insulated from airline-related risks.
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8536.0
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2014-11-10 00:00:00 UTC
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In the news: GoPro sharesholders to hold offering, Pizza Hut getting a revamp and more
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AAL
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https://www.nasdaq.com/articles/news-gopro-sharesholders-hold-offering-pizza-hut-getting-revamp-and-more-2014-11-10
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nan
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nan
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Monday headlines include: GoPro shareholders selling, Yum Brands reworking Pizza Hut, Time Warner bidding for an Australian broadcaster, Walgreen selling bonds in Europe and American Airlines flight attendants voting down a new contract.
GoPro
Action camera maker GoPro ( GPRO ) said Monday that it will hold an offering for $800 million of its common stock. The company will not receive any proceeds from the sale as the shares are being sold by current shareholders. The timing and pricing of the sale have not been announced.
Yum Brands
Fast food conglomerate Yum Brands ( YUM ) is revamping the lineup at Pizza Hut. The new menu will have the chain offering specialty pizzas as well as new sauces and crust flavors to its lineup. The chain, which is the largest pizza in the U.S., will also be changing logos, uniforms and updating its website.
Time Warner
Media giant Time Warner ( TWX ) reportedly made a bid for Australian broadcaster Ten Network Holdings, according to Australian media reports. The media company offered about A$0.25 per share, or A$680 million for the company. Ten is the lowest-rated of Australia's three broadcasters.
Walgreen
Drug retailer Walgreen ( WAG ) is selling about $954 million in six and 11-year pound denominated bonds and $937 million in 12-year euro denominated notes. The sale is the company's first bond sale in Europe and comes as the company is closing its acquisition of Alliance Boots. The company is paying about $5.29 billion in cash and $10 billion in stock for the 55 percent of Alliance Boots that it doesn't already own.
American Airlines
Air carrier American Airlines ( AAL ) will have to negotiate a new deal with flight attendants after a new five-year contract was rejected by a margin of 16 votes. The rejection, which complicates the ongoing process of combining American Airlines and U.S. Airways, affects about 24,000 workers.
This article was originally published on MarketIntelligenceCenter.com
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.
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American Airlines Air carrier American Airlines ( AAL ) will have to negotiate a new deal with flight attendants after a new five-year contract was rejected by a margin of 16 votes. Monday headlines include: GoPro shareholders selling, Yum Brands reworking Pizza Hut, Time Warner bidding for an Australian broadcaster, Walgreen selling bonds in Europe and American Airlines flight attendants voting down a new contract. The new menu will have the chain offering specialty pizzas as well as new sauces and crust flavors to its lineup.
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American Airlines Air carrier American Airlines ( AAL ) will have to negotiate a new deal with flight attendants after a new five-year contract was rejected by a margin of 16 votes. Monday headlines include: GoPro shareholders selling, Yum Brands reworking Pizza Hut, Time Warner bidding for an Australian broadcaster, Walgreen selling bonds in Europe and American Airlines flight attendants voting down a new contract. Yum Brands Fast food conglomerate Yum Brands ( YUM ) is revamping the lineup at Pizza Hut.
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American Airlines Air carrier American Airlines ( AAL ) will have to negotiate a new deal with flight attendants after a new five-year contract was rejected by a margin of 16 votes. Monday headlines include: GoPro shareholders selling, Yum Brands reworking Pizza Hut, Time Warner bidding for an Australian broadcaster, Walgreen selling bonds in Europe and American Airlines flight attendants voting down a new contract. Time Warner Media giant Time Warner ( TWX ) reportedly made a bid for Australian broadcaster Ten Network Holdings, according to Australian media reports.
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American Airlines Air carrier American Airlines ( AAL ) will have to negotiate a new deal with flight attendants after a new five-year contract was rejected by a margin of 16 votes. Monday headlines include: GoPro shareholders selling, Yum Brands reworking Pizza Hut, Time Warner bidding for an Australian broadcaster, Walgreen selling bonds in Europe and American Airlines flight attendants voting down a new contract. Time Warner Media giant Time Warner ( TWX ) reportedly made a bid for Australian broadcaster Ten Network Holdings, according to Australian media reports.
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8537.0
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2014-11-04 00:00:00 UTC
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Delta Air Lines, Inc. (DAL) Ex-Dividend Date Scheduled for November 05, 2014
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-inc-dal-ex-dividend-date-scheduled-november-05-2014-2014-11-04
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nan
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nan
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Delta Air Lines, Inc. ( DAL ) will begin trading ex-dividend on November 05, 2014. A cash dividend payment of $0.09 per share is scheduled to be paid on December 01, 2014. Shareholders who purchased DAL stock prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 50% increase over the same period a year ago. At the current stock price of $40.61, the dividend yield is .89%.
The previous trading day's last sale of DAL was $40.61, representing a -4.8% decrease from the 52 week high of $42.66 and a 53.83% increase over the 52 week low of $26.40.
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 $11.5. Zacks Investment Research reports DAL's forecasted earnings growth in 2014 as 1.25%, compared to an industry average of 15.5%.
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:
First Trust Industrials AlphaDEX ( FXR )
First Trust Value Line Equity Allocation Index(sm)Fund ( FVI )
First Trust Large Cap Growth AlphaDEX Fund (based on the Defin ( FTC )
iShares Russell MidCap Index Fund ( IWR ).
The top-performing ETF of this group is FTC with an increase of 4.35% over the last 100 days. FXR has the highest percent weighting of DAL at 1.81%.
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.
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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 stock prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports DAL's forecasted earnings growth in 2014 as 1.25%, compared to an industry average of 15.5%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. DAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and American Airlines Group, Inc. ( AAL ). The following ETF(s) have DAL as a top-10 holding: First Trust Industrials AlphaDEX ( FXR ) First Trust Value Line Equity Allocation Index(sm)Fund ( FVI ) First Trust Large Cap Growth AlphaDEX Fund (based on the Defin ( FTC ) iShares Russell MidCap Index Fund ( IWR ).
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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 stock prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of DAL was $40.61, representing a -4.8% decrease from the 52 week high of $42.66 and a 53.83% increase over the 52 week low of $26.40.
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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 December 01, 2014. Shareholders who purchased DAL stock prior to the ex-dividend date are eligible for the cash dividend payment.
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8538.0
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2014-11-01 00:00:00 UTC
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Can These 2 Cheap Airline Stocks Provide Sky-High Returns?
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AAL
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https://www.nasdaq.com/articles/can-these-2-cheap-airline-stocks-provide-sky-high-returns-2014-11-01
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nan
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nan
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Despite strong performances from 2013 and early 2014, most airline stocks still trade well below the S&P average and the transportation sector as a whole. While airline stocks do carry their own risks, two airlines offer valuations that are extremely difficult to find in this market.
The world's largest
Late last year, American Airlines and US Airways got the go-ahead to begin the process of creating the world's largest airline. The new airline company, American Airlines Group , has taken the title of the world's largest airline and is likely to hold on to that title since United Continental Holdings , Delta Air Lines , and Southwest Airlines are all products of megamergers themselves, and mergers between these megaairlines would have a tough time passing antitrust scrutiny.
Using estimates from Nasdaq, American Airlines Group shares trade at less than six times FY2015 earnings and only 5.3 times FY2016 earnings. From a valuation perspective, this appears highly favorable compared with the S&P 500 at 16.3 times forward earnings and the Dow Transportation Index at 18.5 times forward earnings.
If American Airlines Group can meet analyst expectations and earn a valuation of 10 times earnings, a level still well below the market average, shares could nearly double by 2016. This scenario requires a lot of things to go right for the airline but does help show the potential bullish outcome.
On the risk side, American Airlines Group carries a higher level of integration risk than its peers, since it still has to do the heavy lifting of integrating American Airlines and US Airways. While the integration of Delta Air Lines and Northwest Airlines went fairly smoothly, the integration of United Airlines and Continental Airlines encountered more turbulence, resulting in annoyed passengers and prolonged inefficiencies. So far, the integration at American is progressing along without any major hiccups, but all eyes will be on labor contracts and the integration of the frequent flyer and reservation systems.
From a valuation perspective, American Airlines Group is one of the best candidates in the industry today. However, because of a massive fleet modernization program, the airline will have limited free cash flow, and investors should look for gains through a rising stock price rather than dividends.
Canada's largest airline
The past few years have been volatile for Air Canada , with the airline brushing close to insolvency in 2012 before its shares rallied hard in 2013 and early 2014. Despite providing multibagger gains for shareholders, Air Canada shares still trade at only 3.7 times FY2015 earnings, using estimates from Nasdaq.
At this valuation, I view Air Canada shares as highly attractive and could see shares producing another double over the next few years as earnings grow and the stock sees multiple expansion.
That's not to say Air Canada is a risk-free investment. The airline is still exposed to the Canadian dollar's value, since much of its debt is U.S. dollar denominated. Additionally, oil and most types of aircraft are priced in U.S. dollars.
Air Canada is also relying on international flights for much of its growth. While this should help the airline grow capacity without saturating the domestic Canadian market, it does mean Air Canada could face additional risks from slower foreign economies. This international expansion through mainline Air Canada and its discount subsidiary, Air Canada rouge, is something all airline industry investors should watch.
What about Ebola?
The Ebola outbreak in West Africa has been on investors' minds as more cases are reported in West Africa and a select few in the United States and Europe. However, airlines seem to be feeling little financial damage from the outbreak, with American Airlines Group noting only a short dip in bookings before a quick recovery.
Air Canada still has yet to report earnings, but I see any major effect from Ebola on this airline as unlikely, considering none of the four major U.S. airlines had any significant impact to bookings. Additionally, Canada has advanced health care infrastructure and the resources to counter Ebola at home.
While Ebola is still worth keeping an eye on from an investment perspective, the financial losses for airlines are dwarfed by the humanitarian losses in West Africa.
Industry turnaround
While airlines still do face elevated risks compared to most other transportation companies, they have made major progress over the past several years in stabilizing their operations. Capacity discipline and consolidation have gone hand in hand for carriers, leading to fuller planes and higher fares.
Unlike the old market share strategies where capacity was used as a weapon, today's U.S. legacy carriers are growing their capacity at rates close to GDP growth. Air Canada is looking for faster capacity growth but is doing so mostly on international routes; many of which it does not currently serve. While this does expose Air Canada to more foreign economies, its provides the airline with a way to grow capacity without saturating the domestic Canada market.
Although oil prices could remain volatile, airlines are also benefiting from a strong tailwind in the form of lower fuel costs. Considering Delta, American, and United Continental each expect to use around 4 billion gallons of jet fuel in 2014, the drop-off in oil prices should be a big earnings booster as long as oil remains cheap.
Airline sale
American Airlines Group and Air Canada each carry their own risks, but I think both stocks could be attractive for value investors with a moderate amount of risk tolerance. Lower jet fuel prices could also act as a major tailwind for Q4 earnings and possibly beyond. While nothing is guaranteed in the market, this combination of growth and value make American Airlines Group and Air Canada worth looking at for risk-tolerant investors.
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The article Can These 2 Cheap Airline Stocks Provide Sky-High Returns? originally appeared on Fool.com.
Alexander MacLennan owns shares of Air Canada, American Airlines Group, and Delta Air Lines and has options on American Airlines Group and Delta Air Lines.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice. Always do your own due diligence before buying or selling any security. 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 - 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.
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However, because of a massive fleet modernization program, the airline will have limited free cash flow, and investors should look for gains through a rising stock price rather than dividends. While this should help the airline grow capacity without saturating the domestic Canadian market, it does mean Air Canada could face additional risks from slower foreign economies. Industry turnaround While airlines still do face elevated risks compared to most other transportation companies, they have made major progress over the past several years in stabilizing their operations.
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On the risk side, American Airlines Group carries a higher level of integration risk than its peers, since it still has to do the heavy lifting of integrating American Airlines and US Airways. While this should help the airline grow capacity without saturating the domestic Canadian market, it does mean Air Canada could face additional risks from slower foreign economies. Alexander MacLennan owns shares of Air Canada, American Airlines Group, and Delta Air Lines and has options on American Airlines Group and Delta Air Lines.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice.
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The new airline company, American Airlines Group , has taken the title of the world's largest airline and is likely to hold on to that title since United Continental Holdings , Delta Air Lines , and Southwest Airlines are all products of megamergers themselves, and mergers between these megaairlines would have a tough time passing antitrust scrutiny. Airline sale American Airlines Group and Air Canada each carry their own risks, but I think both stocks could be attractive for value investors with a moderate amount of risk tolerance. Alexander MacLennan owns shares of Air Canada, American Airlines Group, and Delta Air Lines and has options on American Airlines Group and Delta Air Lines.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice.
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Air Canada still has yet to report earnings, but I see any major effect from Ebola on this airline as unlikely, considering none of the four major U.S. airlines had any significant impact to bookings. Alexander MacLennan owns shares of Air Canada, American Airlines Group, and Delta Air Lines and has options on American Airlines Group and Delta Air Lines.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8539.0
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2014-10-30 00:00:00 UTC
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VXF, TWTR, AAL, TSLA: ETF Inflow Alert
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AAL
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https://www.nasdaq.com/articles/vxf-twtr-aal-tsla-etf-inflow-alert-2014-10-30
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nan
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nan
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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 $119.4 million dollar inflow -- that's a 3.5% increase week over week in outstanding units (from 40,041,413 to 41,441,498). Among the largest underlying components of VXF, in trading today Twitter Inc (Symbol: TWTR ) is down about 4%, American Airlines Group Inc (Symbol: AAL) is up about 0.4%, and Tesla Motors Inc (Symbol: TSLA) is lower by about 0.5%. 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 $88.99 as the 52 week high point - that compares with a last trade of $85.10. 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.
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Among the largest underlying components of VXF, in trading today Twitter Inc (Symbol: TWTR ) is down about 4%, American Airlines Group Inc (Symbol: AAL) is up about 0.4%, and Tesla Motors Inc (Symbol: TSLA) is lower by about 0.5%. 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 $88.99 as the 52 week high point - that compares with a last trade of $85.10. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of VXF, in trading today Twitter Inc (Symbol: TWTR ) is down about 4%, American Airlines Group Inc (Symbol: AAL) is up about 0.4%, and Tesla Motors Inc (Symbol: TSLA) is lower by about 0.5%. 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 $88.99 as the 52 week high point - that compares with a last trade of $85.10. 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.
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Among the largest underlying components of VXF, in trading today Twitter Inc (Symbol: TWTR ) is down about 4%, American Airlines Group Inc (Symbol: AAL) is up about 0.4%, and Tesla Motors Inc (Symbol: TSLA) 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 $119.4 million dollar inflow -- that's a 3.5% increase week over week in outstanding units (from 40,041,413 to 41,441,498). 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 $88.99 as the 52 week high point - that compares with a last trade of $85.10.
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Among the largest underlying components of VXF, in trading today Twitter Inc (Symbol: TWTR ) is down about 4%, American Airlines Group Inc (Symbol: AAL) is up about 0.4%, and Tesla Motors Inc (Symbol: TSLA) 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 $119.4 million dollar inflow -- that's a 3.5% increase week over week in outstanding units (from 40,041,413 to 41,441,498). 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 $88.99 as the 52 week high point - that compares with a last trade of $85.10.
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8540.0
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2014-10-29 00:00:00 UTC
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American Airlines to Club Dividend Miles, AAdvantage Plans - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-club-dividend-miles-aadvantage-plans-analyst-blog-2014-10-29
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nan
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Premier passenger carrier American Airlines Group Inc. ( AAL ) has planned to integrate the US Airways Dividend Miles frequent flyer plan with its existing AAdvantage loyalty program in the second quarter of 2015. Thereafter, US Airways Dividend Miles club members will be able to enjoy the attractive perks of the AAdvantage loyalty program.
Under this new arrangement, American Airlines will open individual accounts for members without an AAdvantage account. Thus, the existing balance of the new members will be shifted to 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, effective Jan 1, 2015.
American Airlines currently carries a Zacks Rank #2 (Buy).
Stocks to Consider
Some better-ranked stocks in the same sector are Republic Airways Holdings Inc. ( RJET ), United Continental Holdings ( UAL ) and Delta Air Lines Inc. ( DAL ). Republic Airways sports a Zacks Rank #1 (Strong Buy) while United Continental Holdings and Delta Air Lines carry the same Zacks Rank as American 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
REPUBLIC AIRWAY (RJET): 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.
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Premier passenger carrier American Airlines Group Inc. ( AAL ) has planned to integrate the US Airways Dividend Miles frequent flyer plan with its existing AAdvantage loyalty program in the second quarter of 2015. Click to get this free report REPUBLIC AIRWAY (RJET): 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. Thereafter, US Airways Dividend Miles club members will be able to enjoy the attractive perks of the AAdvantage loyalty program.
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Click to get this free report REPUBLIC AIRWAY (RJET): 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 ) has planned to integrate the US Airways Dividend Miles frequent flyer plan with its existing AAdvantage loyalty program in the second quarter of 2015. Stocks to Consider Some better-ranked stocks in the same sector are Republic Airways Holdings Inc. ( RJET ), United Continental Holdings ( UAL ) and Delta Air Lines Inc. ( DAL ).
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Click to get this free report REPUBLIC AIRWAY (RJET): 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 ) has planned to integrate the US Airways Dividend Miles frequent flyer plan with its existing AAdvantage loyalty program in the second quarter of 2015. 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, effective Jan 1, 2015.
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Premier passenger carrier American Airlines Group Inc. ( AAL ) has planned to integrate the US Airways Dividend Miles frequent flyer plan with its existing AAdvantage loyalty program in the second quarter of 2015. Click to get this free report REPUBLIC AIRWAY (RJET): 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. Thereafter, US Airways Dividend Miles club members will be able to enjoy the attractive perks of the AAdvantage loyalty program.
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8541.0
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2014-10-29 00:00:00 UTC
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Spirit Airlines (SAVE) Jumps: Stock Adds 7.1% in Session - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-save-jumps%3A-stock-adds-7.1-in-session-tale-of-the-tape-2014-10-29
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Spirit Airlines, Inc. ( SAVE ) was a big mover last session, as the company saw its shares rise over 7% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company, as the stock is now trading above the volatile price range of $53.31 to $70.28 in the past one-month time frame.
The company has seen 5 positive estimate revisions in the past 30 days, while its Zacks Consensus Estimate moved higher over the same time frame, suggesting more solid trading ahead for Spirit Airlines. So make sure to keep an eye on this stock going forward to see if this recent jump can turn into more strength down the road.
Spirit Airlines currently has a Zacks Rank #2 (Buy) while its Earnings ESP is 0.00%.
Some well-performing airline stocks include Republic Airways Holdings Inc. ( RJET ), Alaska Air Group, Inc. ( ALK ) and American Airlines Group Inc. ( AAL ). While Republic Airways Holdings sports a Zacks Rank #1 (Strong Buy), Alaska Air and American Airlines have the same Zacks Rank as Spirit 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 >>
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
ALASKA AIR GRP (ALK): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
REPUBLIC AIRWAY (RJET): 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.
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Some well-performing airline stocks include Republic Airways Holdings Inc. ( RJET ), Alaska Air Group, Inc. ( ALK ) and American Airlines Group Inc. ( AAL ). Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. Spirit Airlines, Inc. ( SAVE ) was a big mover last session, as the company saw its shares rise over 7% on the day.
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Some well-performing airline stocks include Republic Airways Holdings Inc. ( RJET ), Alaska Air Group, Inc. ( ALK ) and American Airlines Group Inc. ( AAL ). Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. While Republic Airways Holdings sports a Zacks Rank #1 (Strong Buy), Alaska Air and American Airlines have the same Zacks Rank as Spirit Airlines.
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Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. Some well-performing airline stocks include Republic Airways Holdings Inc. ( RJET ), Alaska Air Group, Inc. ( ALK ) and American Airlines Group Inc. ( AAL ). The company has seen 5 positive estimate revisions in the past 30 days, while its Zacks Consensus Estimate moved higher over the same time frame, suggesting more solid trading ahead for Spirit Airlines.
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Some well-performing airline stocks include Republic Airways Holdings Inc. ( RJET ), Alaska Air Group, Inc. ( ALK ) and American Airlines Group Inc. ( AAL ). Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report To read this article on Zacks.com click here. The company has seen 5 positive estimate revisions in the past 30 days, while its Zacks Consensus Estimate moved higher over the same time frame, suggesting more solid trading ahead for Spirit Airlines.
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8542.0
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2014-10-29 00:00:00 UTC
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American Airlines Group, Inc. (AAL) Ex-Dividend Date Scheduled for October 30, 2014
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-aal-ex-dividend-date-scheduled-october-30-2014-2014-10-29
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nan
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American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on October 30, 2014. A cash dividend payment of $0.1 per share is scheduled to be paid on November 17, 2014. Shareholders who purchased AAL stock prior to the ex-dividend date are eligible for the cash dividend payment. At the current stock price of $40.24, the dividend yield is .99%.
The previous trading day's last sale of AAL was $40.24, representing a -10.34% decrease from the 52 week high of $44.88 and a 71.6% increase over the 52 week low of $23.45.
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 -$5.56. Zacks Investment Research reports AAL's forecasted earnings growth in 2014 as -52.12%, compared to an industry average of 15.1%.
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 ETF ( CHEP ).
The top-performing ETF of this group is XTN with an increase of 3% 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.
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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 2014 as -52.12%, compared to an industry average of 15.1%.
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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 ETF ( 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 October 30, 2014.
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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 ETF ( CHEP ).
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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 October 30, 2014. The previous trading day's last sale of AAL was $40.24, representing a -10.34% decrease from the 52 week high of $44.88 and a 71.6% increase over the 52 week low of $23.45.
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8543.0
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2014-10-28 00:00:00 UTC
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5 Things American Airlines Group, Inc.'s Management Wants You to Know
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AAL
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https://www.nasdaq.com/articles/5-things-american-airlines-group-incs-management-wants-you-know-2014-10-28
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nan
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nan
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Since merging with US Airways in late 2013, American Airlines Group has reported a series of record quarterly profits. American Airlines continued that streak last week. The company's Q3 adjusted profit rose 59% year over year to $1.2 billion.
On Thursday afternoon, American Airlines' management team spent an hour talking about the company's earnings, the merger integration process, and future trends. Here are five key points that the management team tried to convey to investors.
The merger integration process is going smoothly
So far, American's merger with US Airways is going smoothly (Photo: American Airlines)
One of the biggest things on investors' minds is the merger integration process. Almost all major airline mergers have hit some type of setback during the integration process -- including US Airways' previous merger with America West.
So far, everything has gone smoothly at American Airlines. That said, the biggest hurdles won't occur until 2015, namely the move to a single frequent flyer program and a single reservations system. The frequent flyer programs are tentatively scheduled to be combined in Q2 next year, while the reservation system migration will happen later in 2015.
Investors should be satisfied about American Airlines' progress so far, but the key to its success over the next few years lies in navigating these big customer-facing changes scheduled for 2015.
New competition in Dallas isn't causing problems
One of the biggest question marks surrounding American Airlines' near-term trajectory has been the opening up of Love Field in Dallas for long-haul flights. This will give Southwest Airlines (and to a lesser extent, Virgin America) the ability to compete more effectively with American Airlines' massive Dallas-Fort Worth hub.
New competition from Southwest Airlines in Dallas isn't hurting yet (Photo: The Motley Fool)
Back in July, American's management stated that it was too early to gauge the impact of this change. On Thursday, the management team seemed much more confident. President Scott Kirby reported that for the first few weeks of this new competitive environment, American Airlines expects to post unit revenue gains in the markets with new competing flights.
Obviously, it's still early. Indeed, Southwest Airlines and Virgin America have not yet rolled out their full flight schedules at Love Field. Nevertheless, the early signs suggest that any impact on American's business in the Dallas-Fort Worth area will be very manageable.
Reacting quickly to supply and demand
American Airlines also demonstrated for investors that while it is growing, it remains committed to matching capacity with demand. International markets have been a trouble spot for all three legacy carriers lately, primarily due to the rapid growth of various foreign airlines.
As a result, American Airlines has dramatically slashed its international capacity growth plans for Europe and Latin America in the past few months. American is still forging ahead with rapid growth in Asia, though. That's because it has an undersized presence there today , and management sees growth in Asia as a critical long-term strategic investment.
American Airlines sees long-term growth in Asia as a strategic priority (Photo: American Airlines)
On the whole, this shows that Doug Parker and his team are doing a good job of balancing the dual priorities of long-term growth and short-term profitability.
Cheaper jet fuel just means higher profits
With jet fuel prices having plummeted by $0.40/gallon since early September, investors and the traveling public have both wondered whether this might lead to more flight options and cheaper airfares. An industrywide fare increase that occurred earlier this month shows that this probably won't happen.
American Airlines threw more cold water on the idea that lower fuel prices should lead to an immediate change in capacity or airfares. Oil prices have spiked too often in the past decade for airlines to cut prices or add planes based on a brief dip. Scott Kirby stated that lower jet fuel prices will just mean better profits in the short term.
That showed up clearly in American Airlines' Q4 forecast. The company is projecting a 10%-12% pre-tax margin -- in line with Q3, which is usually a much more profitable quarter.
Moving toward bigger planes
One of the biggest trends in the U.S. airline industry in the last few years has been the move toward larger planes on domestic flights. Small regional jets are increasingly being retired in favor of large regional jets, while small narrowbodies are being replaced by larger narrowbody aircraft.
American Airlines is growing its fleet of large regional jets (Photo: American Airlines)
American Airlines plans to continue promoting this shift. As the biggest airline in the world, and with several big hubs, it can generate enough traffic to fill larger planes. This allows American to benefit from the significantly lower unit costs of larger planes, which in turn makes it more competitive with low-cost carriers.
Clear skies ahead
American Airlines still faces a few key hurdles in completing its merger integration process. Investors should keep an eye on its progress on this front in 2015.
However, for the moment, American Airlines appears to be in great shape. It is weathering increased competition in several markets quite well, while benefiting from cheaper jet fuel. If it can harvest its expected merger synergies in the next couple of years, American has a good shot to become the most profitable airline in the world by 2016.
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The article 5 Things American Airlines Group, Inc.'s 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 - 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.
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On Thursday afternoon, American Airlines' management team spent an hour talking about the company's earnings, the merger integration process, and future trends. New competition from Southwest Airlines in Dallas isn't hurting yet (Photo: The Motley Fool) Back in July, American's management stated that it was too early to gauge the impact of this change. President Scott Kirby reported that for the first few weeks of this new competitive environment, American Airlines expects to post unit revenue gains in the markets with new competing flights.
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The merger integration process is going smoothly So far, American's merger with US Airways is going smoothly (Photo: American Airlines) One of the biggest things on investors' minds is the merger integration process. American Airlines sees long-term growth in Asia as a strategic priority (Photo: American Airlines) On the whole, this shows that Doug Parker and his team are doing a good job of balancing the dual priorities of long-term growth and short-term profitability. American Airlines is growing its fleet of large regional jets (Photo: American Airlines) American Airlines plans to continue promoting this shift.
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The merger integration process is going smoothly So far, American's merger with US Airways is going smoothly (Photo: American Airlines) One of the biggest things on investors' minds is the merger integration process. American Airlines sees long-term growth in Asia as a strategic priority (Photo: American Airlines) On the whole, this shows that Doug Parker and his team are doing a good job of balancing the dual priorities of long-term growth and short-term profitability. American Airlines is growing its fleet of large regional jets (Photo: American Airlines) American Airlines plans to continue promoting this shift.
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The merger integration process is going smoothly So far, American's merger with US Airways is going smoothly (Photo: American Airlines) One of the biggest things on investors' minds is the merger integration process. New competition from Southwest Airlines in Dallas isn't hurting yet (Photo: The Motley Fool) Back in July, American's management stated that it was too early to gauge the impact of this change. American Airlines is growing its fleet of large regional jets (Photo: American Airlines) American Airlines plans to continue promoting this shift.
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8544.0
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2014-10-28 00:00:00 UTC
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Merger Update: American Airlines Group
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AAL
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https://www.nasdaq.com/articles/merger-update-american-airlines-group-2014-10-28
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nan
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Now that we're only a month away from the one-year anniversary of the merger between American Airlines and US Airways, it's time for a status update on the situation for the new American Airlines Group .
Stock performance and distributions for AMR shareholders
Like most other airline stocks, shares of American Airlines Group finished out 2013 strong and continued their momentum into 2014. Since closing at $24.60 on Dec. 9, 2013, the official date of the merger, shares of the airline have gained over 60% to close at just under $40 on Oct. 25.
Shareholders of the bankrupt American Airlines parent company AMR have also benefited greatly from the distributions of American Airlines Group stock they received. Shares of AMR last traded at $11.39 before the merger, and each of these shares has received distributions of roughly 0.74 American Airlines Group shares. At the Oct. 25 close of $39.82, these AMR shares have returned nearly $30 worth of AAL shares per AMR share for a gain of almost 160% since the merger.
What it means for travelers
American Airlines Group has been quick to point out the benefits this merger has for travelers. On its website, the airline provides the following list of things it has done for travelers since January.
The opportunity to earn and redeem AAdvantage miles when flying on American or US Airways, with all eligible travel on either airline counting toward elite status qualification in the program of your choice.
Select reciprocal benefits for elite status members when flying either airline, including First and Business Class check-in, complimentary checked bags, and priority security and boarding.
Access to more than 50 clubs across our combined network.
Easy access to the combined company's expanded network through our codeshare with US Airways, which allows each airline to sell seats on each other's flights.
Bringing US Airways into the award-winning oneworld alliance, offering more options across the Atlantic and an easier and more rewarding global travel experience to Europe and beyond.
The ability to easily stay connected while you fly with Monthly Traveler and Daily Wi-Fi passes, which are valid on both American Airlines and US Airways flights.
Most of these fall into the category of shared perks that allow the merged airline to offer more benefits than either American Airlines or US Airways could on their own.
The move of US Airways into the OneWorld alliance and the beginning of codesharing allow the merged airline to take advantage of a larger combined network before completing the full integration into one airline.
Cargo operations
Earlier this month, American Airlines Group completed the combination of the American Airlines and US Airways cargo operations under a single waybill. Although it will be early 2015 before American Airlines Group expects to have a single operating certificate, the cargo combination should allow this side of the airline's business to move more smoothly.
Airline and system merging
Since they don't yet have a single operating certificate, American Airlines and US Airways are still technically operating as two separate airlines. But American Airlines Group expects that to change when it gets a single operating certificate in the first half of 2015.
From there, the airline will work on combining frequent-flyer mile programs and reservation systems through the rest of 2015. Flyers and investors should keep an eye on the technical integration side to see whether American Airlines Group can avoid the problems United Continental experienced during its own integration.
Strong profits
This has been a year of record profits for the airline industry, and American Airlines Group has been no exception. Whether compared with American Airlines, US Airways, or the results from each combined for previous years, the new American Airlines Group is coming out on top. Currently, analysts reporting to Nasdaq are forecasting earnings of $5.39 per share for 2014 and $6.82 per share for 2015.
For the rest of the year, company officials feel hopeful as well. When discussing Q3 2014 results, American Airlines CEO Doug Parker said, "We anticipate we will also post a record profit for both the fourth quarter and full year 2014."
An ongoing process
Mergers between megacompanies take years to fully execute, and the merger between American Airlines and US Airways is no different. This year has seen a lot of operational integration, including gate moving, codeshare development, cargo combining, and aircraft painting. Meanwhile, American Airlines Group has grown profits along with the rest of the industry, with analysts forecasting even greater earnings in 2015.
Going forward, investors and travelers should keep an eye on how American Airlines Group progresses toward obtaining a single operating certificate and finishing the technical integration of its systems.
"As significant as the discovery of oil itself"
Recent research by the U.S. Energy Information Administration has already tabbed this "Oil Boom 2.0," with a downright staggering current value of $5.8 trillion. The Motley Fool just completed a brand-new investigative report on this significant investment topic and a single, under-the-radar company that's involved with the driving force that got this boom started. Simply click here for access .
The article Merger Update: American Airlines Group originally appeared on Fool.com.
Alexander MacLennan owns shares of 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 - 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.
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At the Oct. 25 close of $39.82, these AMR shares have returned nearly $30 worth of AAL shares per AMR share for a gain of almost 160% since the merger. The opportunity to earn and redeem AAdvantage miles when flying on American or US Airways, with all eligible travel on either airline counting toward elite status qualification in the program of your choice. Select reciprocal benefits for elite status members when flying either airline, including First and Business Class check-in, complimentary checked bags, and priority security and boarding.
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At the Oct. 25 close of $39.82, these AMR shares have returned nearly $30 worth of AAL shares per AMR share for a gain of almost 160% since the merger. Stock performance and distributions for AMR shareholders Like most other airline stocks, shares of American Airlines Group finished out 2013 strong and continued their momentum into 2014. Cargo operations Earlier this month, American Airlines Group completed the combination of the American Airlines and US Airways cargo operations under a single waybill.
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At the Oct. 25 close of $39.82, these AMR shares have returned nearly $30 worth of AAL shares per AMR share for a gain of almost 160% since the merger. Cargo operations Earlier this month, American Airlines Group completed the combination of the American Airlines and US Airways cargo operations under a single waybill. Airline and system merging Since they don't yet have a single operating certificate, American Airlines and US Airways are still technically operating as two separate airlines.
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At the Oct. 25 close of $39.82, these AMR shares have returned nearly $30 worth of AAL shares per AMR share for a gain of almost 160% since the merger. What it means for travelers American Airlines Group has been quick to point out the benefits this merger has for travelers. The move of US Airways into the OneWorld alliance and the beginning of codesharing allow the merged airline to take advantage of a larger combined network before completing the full integration into one airline.
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8545.0
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2014-10-27 00:00:00 UTC
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Airline Upgraded: Delta Air Lines Gets a Boost
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AAL
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https://www.nasdaq.com/articles/airline-upgraded-delta-air-lines-gets-boost-2014-10-27
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nan
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nan
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There are a lot of risks in the airline industry, and high debt levels rank near the top, making things like cash flow and creditworthiness critical to airline success. Attaining an investment-grade credit rating in this industry is difficult, but Delta Air Lines has recently moved one step closer.
Rating agency opinions
Despite some extremely bad calls on mortgage-backed securities ratings, the top bond ratings agencies -- Standard & Poor's, Moody's, and Fitch -- are still key when it comes to determining how the market should perceive a company's debt.
To assign their ratings, these agencies look at all aspects of a company and rate company-issued securities based on their assessment. Most debts in the airline industry are rated non-investment-grade, or "junk," since they fall on the lower end of the creditworthiness scale.
However, there are notable exceptions in the airline industry. Right now, Southwest Airlines and WestJet Airlines currently hold coveted investment-grade ratings from S&P.
Delta's upgrade
Although S&P still grades Delta's debt as non-investment-grade, the airline is now only one step away from joining Southwest Airlines and WestJet with investment-grade status.
Delta Air Lines' upgrade wasn't easy to get, but through significant debt reduction, growing profits, and an excellent cash-flow outlook, Delta has been able to pull ahead of its major legacy rivals.
Debt reduction
In 2009, Delta's adjusted net debt hovered around $17 billion, a massive number for almost any company. But the airline's management wasn't content to let the debt control the company, so they put the airline on a debt-reduction diet.
Since then, Delta has been consistently reducing its debt load, and it's down to $7.4 billion today. Not only has this approach put Delta in a better position should it need to borrow capital again, but management also estimates that adjusted net debt will fall to $5 billion by 2016, saving the airline $1 billion in annual interest expense compared with 2009.
Record profits
During the recession, airlines bled billions of dollars because of weak travel demand, but the industry as a whole has made a remarkably turnaround. Capacity discipline, consolidation, and improved travel demand have pushed airline profits to record levels at Delta Air Lines, United Continental Holdings , American Airlines Group , and Southwest Airlines.
Clearly, a turnaround in the bottom line is a positive for the ability to make whole on outstanding debt obligations.
Free cash flow king
Earnings are definitely something investors should watch, but free cash flow is particularly important in capital-intensive industries such as airlines. Thanks to many of the same tailwinds that have boosted profits, cash flows at major carriers have also moved higher in recent years.
However, Delta Air Lines is winning when it comes to the measure of free cash flow. While American Airlines Group is taking on large amount of capital expenditures over the next several years as it replaces much of its fleet, Delta has taken a more conservative approach to fleet modernization.
That's not to say Delta is brushing aside new aircraft purchases altogether, but by ordering comparatively fewer new planes, Delta has more free cash flow to use for things such as dividends, share buybacks, and debt reduction.
Credit-ratings agencies like this setup, since Delta can use this free cash flow to continue its debt-reduction plan, and it can provide a margin of safety if the airline industry were to slow.
One step away
Like airline stocks, airline debt is typically considered above average in risk, and ratings from credit rating agencies have reflected this assumption. But Delta is now only one step away from joining the small group of airlines with investment-grade credit ratings.
I see this as a bullish event for the company, as it should lead to lower future borrowing costs and could help the airline reduce its debt load even more quickly. Investors should keep an eye on whether Delta can secure an investment-grade credit rating in the future, as it could make the airline's debt even more attractive for bond market investors.
"As significant as the discovery of oil itself"
Recent research by the U.S. Energy Information Administration has already tabbed this "Oil Boom 2.0," with a downright staggering current value of $5.8 trillion. The Motley Fool just completed a brand-new investigative report on this significant investment topic and a single, under-the-radar company that's involved with the driving force that got this boom started. Simply click here for access .
The article Airline Upgraded: Delta Air Lines Gets a Boost originally appeared on Fool.com.
Alexander MacLennan owns shares of and has options on American Airlines Group and Delta Air Lines. 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 - 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.
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Record profits During the recession, airlines bled billions of dollars because of weak travel demand, but the industry as a whole has made a remarkably turnaround. Credit-ratings agencies like this setup, since Delta can use this free cash flow to continue its debt-reduction plan, and it can provide a margin of safety if the airline industry were to slow. The Motley Fool just completed a brand-new investigative report on this significant investment topic and a single, under-the-radar company that's involved with the driving force that got this boom started.
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There are a lot of risks in the airline industry, and high debt levels rank near the top, making things like cash flow and creditworthiness critical to airline success. Attaining an investment-grade credit rating in this industry is difficult, but Delta Air Lines has recently moved one step closer. Capacity discipline, consolidation, and improved travel demand have pushed airline profits to record levels at Delta Air Lines, United Continental Holdings , American Airlines Group , and Southwest Airlines.
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Delta's upgrade Although S&P still grades Delta's debt as non-investment-grade, the airline is now only one step away from joining Southwest Airlines and WestJet with investment-grade status. Capacity discipline, consolidation, and improved travel demand have pushed airline profits to record levels at Delta Air Lines, United Continental Holdings , American Airlines Group , and Southwest Airlines. One step away Like airline stocks, airline debt is typically considered above average in risk, and ratings from credit rating agencies have reflected this assumption.
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Free cash flow king Earnings are definitely something investors should watch, but free cash flow is particularly important in capital-intensive industries such as airlines. Investors should keep an eye on whether Delta can secure an investment-grade credit rating in the future, as it could make the airline's debt even more attractive for bond market investors. The Motley Fool has no position in any of the stocks mentioned.
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8546.0
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2014-10-23 00:00:00 UTC
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American Airlines (AAL) Earnings: Your Inside Scoop on the $11 Billion Quarter
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-earnings-your-inside-scoop-11-billion-quarter-2014-10-23
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nan
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nan
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On Thursday, American Airlines Group reported a record profit for Q3, which includes the busy summer travel season. In fact, American Airlines has reported record earnings for each quarter of 2014.
American Airlines has benefited from its merger with US Airways. Source: American Airlines.
American Airlines is benefiting from two key developments: 1) gaining scale through its merger with US Airways, and 2) a favorable supply demand balance within the U.S. airline industry. As long as it can avoid major integration snafus, American Airlines should be able to continue posting record earnings into 2015.
The results
For Q3, American Airlines generated $11.14 billion in revenue, up 4.4% year over year. Adjusted EPS came in at $1.66. That was up 59% from the combined total at American Airlines and US Airways in Q3 2013.
This EPS performance was slightly better than the average analyst estimate of $1.63. However, estimates had fallen significantly during the quarter after American Airlines cut its unit revenue guidance in early September. Near the beginning of Q3, analysts had (on average) expected EPS of $1.88.
American Airlines posted adjusted EPS of $1.66 last quarter. Source: American Airlines.
American's margin growth was driven by a 1% increase in passenger unit revenue and a 2.4% increase in total unit revenue, alongside a 0.3% decrease in unit costs, excluding special items.
Great is just par for the course
American Airlines' Q3 profit was very strong compared to what airlines were earning just a year or two ago. However, "great" results are increasingly just par for the course. For example, in Q2, American Airlines' profit grew more than 100% year over year, and EPS reached $1.98.
Moreover, every single major airline in the U.S. has reported a record profit for Q3 . In this context, it may be more useful to compare American's performance to that of its key competitors. Delta Air Lines -- American's top rival -- posted a 14.6% adjusted pre-tax margin in Q3, which was significantly better than American's 11% adjusted pre-tax margin.
Looking ahead
Historically, the airline industry has been highly cyclical, so results in any given year may not be representative of long-term trends. The key question for investors is whether American Airlines and its peers can sustain the strong earnings growth they have posted in 2014.
American Airlines is facing tougher competition in several markets from the likes of Southwest Airlines.
American Airlines will confront some unique challenges in this regard. It's facing a significant increase in competition across many key markets. Southwest Airlines is dramatically boosting capacity at Love Field in Dallas, thanks to the expiration of the Wright Amendment, which could draw traffic away from American's large hub at Dallas-Fort Worth International Airport.
American Airlines also faces a notable increase in competition from low-cost carriers on its routes to Latin America. Lastly, competition is heating up on a number of key business routes where American Airlines has strong market share -- including New York-London, New York-Los Angeles, and New York-San Francisco.
In light of this rising competition, investors should pay close attention to management's commentary on unit revenue trends on American's Q3earnings callthis afternoon. Fortunately, any weakness in unit revenue should be more than offset by the recent drop in fuel prices. Because of its no-hedging policy , American Airlines sees an immediate benefit when jet fuel prices fall.
The bottom line
American Airlines has posted strong earnings growth each quarter this year. If jet fuel prices remain near recent levels, American Airlines should continue to post strong earnings growth for at least a few more quarters.
However, American is facing stepped-up competition in a number of key markets, which may offset some of the benefit from cheaper fuel. Moreover, jet fuel prices can be quite volatile, so it would be unwise to expect a long-term tailwind from fuel costs. American's ability to continue growing unit revenue in spite of higher competition will determine its long-term success.
Top dividend stocks for the next decade
The smartest investors know that dividend stocks like American Airlines simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
The article American Airlines ( AAL ) Earnings: Your Inside Scoop on the $11 Billion Quarter 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 - 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.
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The article American Airlines ( AAL ) Earnings: Your Inside Scoop on the $11 Billion Quarter originally appeared on Fool.com. Southwest Airlines is dramatically boosting capacity at Love Field in Dallas, thanks to the expiration of the Wright Amendment, which could draw traffic away from American's large hub at Dallas-Fort Worth International Airport. Lastly, competition is heating up on a number of key business routes where American Airlines has strong market share -- including New York-London, New York-Los Angeles, and New York-San Francisco.
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The article American Airlines ( AAL ) Earnings: Your Inside Scoop on the $11 Billion Quarter originally appeared on Fool.com. Delta Air Lines -- American's top rival -- posted a 14.6% adjusted pre-tax margin in Q3, which was significantly better than American's 11% adjusted pre-tax margin. The bottom line American Airlines has posted strong earnings growth each quarter this year.
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The article American Airlines ( AAL ) Earnings: Your Inside Scoop on the $11 Billion Quarter originally appeared on Fool.com. Great is just par for the course American Airlines' Q3 profit was very strong compared to what airlines were earning just a year or two ago. American Airlines is facing tougher competition in several markets from the likes of Southwest Airlines.
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The article American Airlines ( AAL ) Earnings: Your Inside Scoop on the $11 Billion Quarter originally appeared on Fool.com. American Airlines posted adjusted EPS of $1.66 last quarter. However, American is facing stepped-up competition in a number of key markets, which may offset some of the benefit from cheaper fuel.
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8547.0
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2014-10-23 00:00:00 UTC
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Sector Update: Consumer Shares Higher Pre-Market
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AAL
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https://www.nasdaq.com/articles/sector-update-consumer-shares-higher-pre-market-2014-10-23
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nan
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nan
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Top Consumer Shares:
WMT: +0.62%
MCD: flat
DIS: +0.92%
CVS: +0.56%
KO: +0.35%
GE: +0.68%
Consumer shares were generally higher ahead of the opening bell Thursday.
In consumer stocks news, Dr Pepper Snapple Group ( DPS ) shares were steady at $65.43 after it reported Q3 results that beat the Street view on EPS and total revenues and has increased full-year guidance.
The company reported Q3 EPS of $0.98, up from $0.88 a year ago and topping analyst estimates of $0.88 for the quarter. Total revenues of $1.58 billion were up from $1.54 billion in Q3 2013 and beat analyst projections of $1.54 billion. Sales volumes were flat for the quarter, and up 1% for the year-to-date.
And, American Airlines Group ( AAL ) has reported Q3 results that topped the Street view on EPS with revenues in line with expectations. Shares of AAL were down -0.24% at $36.95 in pre-market trading within a 52-week range of $21.45 - $44.88.
Finally, JetBlue Airways ( JBLU ) reported Q3 operating revenue of $1.52 billion, up from $1.44 billion last year and just shy of the Street consensus of $1.54 billion on Capital IQ. Earnings were $0.24 per share, up from $0.21 per share last year and two cents below the Street view.
JBLU was up 1.07% at $11.30 in pre-market trade.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And, American Airlines Group ( AAL ) has reported Q3 results that topped the Street view on EPS with revenues in line with expectations. Shares of AAL were down -0.24% at $36.95 in pre-market trading within a 52-week range of $21.45 - $44.88. In consumer stocks news, Dr Pepper Snapple Group ( DPS ) shares were steady at $65.43 after it reported Q3 results that beat the Street view on EPS and total revenues and has increased full-year guidance.
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And, American Airlines Group ( AAL ) has reported Q3 results that topped the Street view on EPS with revenues in line with expectations. Shares of AAL were down -0.24% at $36.95 in pre-market trading within a 52-week range of $21.45 - $44.88. In consumer stocks news, Dr Pepper Snapple Group ( DPS ) shares were steady at $65.43 after it reported Q3 results that beat the Street view on EPS and total revenues and has increased full-year guidance.
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And, American Airlines Group ( AAL ) has reported Q3 results that topped the Street view on EPS with revenues in line with expectations. Shares of AAL were down -0.24% at $36.95 in pre-market trading within a 52-week range of $21.45 - $44.88. In consumer stocks news, Dr Pepper Snapple Group ( DPS ) shares were steady at $65.43 after it reported Q3 results that beat the Street view on EPS and total revenues and has increased full-year guidance.
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Shares of AAL were down -0.24% at $36.95 in pre-market trading within a 52-week range of $21.45 - $44.88. And, American Airlines Group ( AAL ) has reported Q3 results that topped the Street view on EPS with revenues in line with expectations. Top Consumer Shares:
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8548.0
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2014-10-23 00:00:00 UTC
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Sector Update: Consumer
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AAL
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https://www.nasdaq.com/articles/sector-update-consumer-2014-10-23-1
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nan
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nan
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Consumer shares were generally higher ahead of the opening bell Thursday.
In consumer stocks news, Dr Pepper Snapple Group ( DPS ) shares were steady at $65.43 after it reported Q3 results that beat the Street view on EPS and total revenues and has increased full-year guidance.
The company reported Q3 EPS of $0.98, up from $0.88 a year ago and topping analyst estimates of $0.88 for the quarter. Total revenues of $1.58 billion were up from $1.54 billion in Q3 2013 and beat analyst projections of $1.54 billion. Sales volumes were flat for the quarter, and up 1% for the year-to-date.
And, American Airlines Group ( AAL ) has reported Q3 results that topped the Street view on EPS with revenues in line with expectations. Shares of AAL were down 0.24% at $36.95 in pre-market trading within a 52-week range of $21.45 - $44.88.
Finally, JetBlue Airways ( JBLU ) reported Q3 operating revenue of $1.52 billion, up from $1.44 billion last year and just shy of the Street consensus of $1.54 billion on Capital IQ. Earnings were $0.24 per share, up from $0.21 per share last year and two cents below the Street view.
JBLU was up 1.07% at $11.30 in pre-market trade.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And, American Airlines Group ( AAL ) has reported Q3 results that topped the Street view on EPS with revenues in line with expectations. Shares of AAL were down 0.24% at $36.95 in pre-market trading within a 52-week range of $21.45 - $44.88. In consumer stocks news, Dr Pepper Snapple Group ( DPS ) shares were steady at $65.43 after it reported Q3 results that beat the Street view on EPS and total revenues and has increased full-year guidance.
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And, American Airlines Group ( AAL ) has reported Q3 results that topped the Street view on EPS with revenues in line with expectations. Shares of AAL were down 0.24% at $36.95 in pre-market trading within a 52-week range of $21.45 - $44.88. In consumer stocks news, Dr Pepper Snapple Group ( DPS ) shares were steady at $65.43 after it reported Q3 results that beat the Street view on EPS and total revenues and has increased full-year guidance.
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And, American Airlines Group ( AAL ) has reported Q3 results that topped the Street view on EPS with revenues in line with expectations. Shares of AAL were down 0.24% at $36.95 in pre-market trading within a 52-week range of $21.45 - $44.88. In consumer stocks news, Dr Pepper Snapple Group ( DPS ) shares were steady at $65.43 after it reported Q3 results that beat the Street view on EPS and total revenues and has increased full-year guidance.
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And, American Airlines Group ( AAL ) has reported Q3 results that topped the Street view on EPS with revenues in line with expectations. Shares of AAL were down 0.24% at $36.95 in pre-market trading within a 52-week range of $21.45 - $44.88. In consumer stocks news, Dr Pepper Snapple Group ( DPS ) shares were steady at $65.43 after it reported Q3 results that beat the Street view on EPS and total revenues and has increased full-year guidance.
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8549.0
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2014-10-23 00:00:00 UTC
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Daily Dividend Report: CMCSA, DD, TWC, AAL, VLO
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AAL
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https://www.nasdaq.com/articles/daily-dividend-report-cmcsa-dd-twc-aal-vlo-2014-10-23
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nan
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nan
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Comcast Corporation ( CMCSA ) declared a quarterly dividend of $0.225 a share on the Company's common stock. The quarterly dividend is payable on January 28, 2015 to shareholders of record as of the close of business on January 7, 2015.
DuPont declared a fourth quarter common stock dividend of 47 cents per share payable December 12, 2014, to stockholders of record November 14, 2014.
Time Warner Cable ( TWC ) declared a quarterly dividend of $0.75 per share on the Company's Common Stock, payable in cash on December 15, 2014, to stockholders of record at the close of business on November 28, 2014.
American Airlines Group ( AAL ) declared a dividend of $0.10 per share for shareholders of record as of November 3, 2014. The dividend will be paid on November 17, 2014.
Valero Energy ( VLO ) has declared a regular quarterly cash dividend on the company's common stock of $0.275 per share. The dividend is payable on December 17, 2014 to holders of record at the close of business on November 19, 2014.
VIDEO: Daily Dividend Report: CMCSA, DD, TWC, AAL, VLO
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.
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American Airlines Group ( AAL ) declared a dividend of $0.10 per share for shareholders of record as of November 3, 2014. VIDEO: Daily Dividend Report: CMCSA, DD, TWC, AAL, VLO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. DuPont declared a fourth quarter common stock dividend of 47 cents per share payable December 12, 2014, to stockholders of record November 14, 2014.
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VIDEO: Daily Dividend Report: CMCSA, DD, TWC, AAL, VLO 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 for shareholders of record as of November 3, 2014. DuPont declared a fourth quarter common stock dividend of 47 cents per share payable December 12, 2014, to stockholders of record November 14, 2014.
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VIDEO: Daily Dividend Report: CMCSA, DD, TWC, AAL, VLO 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 for shareholders of record as of November 3, 2014. DuPont declared a fourth quarter common stock dividend of 47 cents per share payable December 12, 2014, to stockholders of record November 14, 2014.
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American Airlines Group ( AAL ) declared a dividend of $0.10 per share for shareholders of record as of November 3, 2014. VIDEO: Daily Dividend Report: CMCSA, DD, TWC, AAL, VLO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The quarterly dividend is payable on January 28, 2015 to shareholders of record as of the close of business on January 7, 2015.
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8550.0
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2014-10-23 00:00:00 UTC
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Closing Update: Caterpillar Earnings Trigger Stock Market Rally; Dow Pushes Through Technical Resistance
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AAL
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https://www.nasdaq.com/articles/closing-update-caterpillar-earnings-trigger-stock-market-rally-dow-pushes-through
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nan
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nan
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Strong corporate earnings soothed lingering concerns about the health of the U.S. economy and drove stocks sharply higher on Thursday with all three major indices closing more than 1.5% higher. The rally kicked off with robust earnings from Caterpillar ( CAT ) and extended throughout the day, fueled by bullish global economic data and upbeat earnings from airlines and multi-nationals.
The Dow Jones Industrial Average took the lead early on with heavily-weighted component stocks CAT and 3M ( MMM ) catapulting the index 100 points higher at the open. The flurry of economic data at the open, specifically initial jobless claims and the Chicago Fed manufacturing index, solidified the rally sending the Dow above key technical resistance at its 200-day moving average.
Besides industrials, airline stocks were also buoyed by upbeat earnings, although by the end of the day most had given up their earlier gains. Southwest ( LUV ), American Airlines ( AAL ), United Continental ( UAL ) and JetBlue (JBLU) all reported record quarterly profits on Thursday.
Laggards included Yelp (YELP) which beat estimates, but issued downbeat guidance, and Cabelas (CAB) which shed more than 14% on missed Q3 forecasts and lowered guidance.
Here's where the markets stand at the close:
US MARKETS
Dow Jones Industrial Index was up 216 (+1.3%) at 16,677.90
S&P 500 was up 23 points (+1.2%) at 1,950.82
Nasdaq Composite Index was up 69 points (+1.6%) at 4,452.79
GLOBAL SENTIMENT
FTSE 100 was up 0.30%
Nikkei 225 was down 0.37%
Hang Seng Index was down 0.30%
Shanghai China Composite Index was down 1.04%
UPSIDE MOVERS
(+) CYTX FDA gives approval to continue enrolment in Athena cardiovascular trial
(+) EGHT Earnings beat estimates, raises FY15 growth guidance
(+) DAN Beats earnings estimates, raises guidance
(+) KMX Increases share buyback another $2 billion
(+) TSCO Beat Q3 estimates, raised guidance
(+) LTM Reports strong Q3 earnings, 2014 guidance
DOWNSIDE MOVERS
(-) YELP Reported Q4 outlook below expectations, downgraded at Stifel
(-) CAB Worse than expected Q3 earnings, cuts guidance
(-) FREE Files 17.5 mln share offering
(-) UTEK Misses profit, revenue estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Southwest ( LUV ), American Airlines ( AAL ), United Continental ( UAL ) and JetBlue (JBLU) all reported record quarterly profits on Thursday. The Dow Jones Industrial Average took the lead early on with heavily-weighted component stocks CAT and 3M ( MMM ) catapulting the index 100 points higher at the open. The flurry of economic data at the open, specifically initial jobless claims and the Chicago Fed manufacturing index, solidified the rally sending the Dow above key technical resistance at its 200-day moving average.
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Southwest ( LUV ), American Airlines ( AAL ), United Continental ( UAL ) and JetBlue (JBLU) all reported record quarterly profits on Thursday. The rally kicked off with robust earnings from Caterpillar ( CAT ) and extended throughout the day, fueled by bullish global economic data and upbeat earnings from airlines and multi-nationals. (+) CYTX FDA gives approval to continue enrolment in Athena cardiovascular trial (+) EGHT Earnings beat estimates, raises FY15 growth guidance (+) DAN Beats earnings estimates, raises guidance (+) KMX Increases share buyback another $2 billion (+) TSCO Beat Q3 estimates, raised guidance (+) LTM Reports strong Q3 earnings, 2014 guidance
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Southwest ( LUV ), American Airlines ( AAL ), United Continental ( UAL ) and JetBlue (JBLU) all reported record quarterly profits on Thursday. Dow Jones Industrial Index was up 216 (+1.3%) at 16,677.90 S&P 500 was up 23 points (+1.2%) at 1,950.82 Nasdaq Composite Index was up 69 points (+1.6%) at 4,452.79 (+) CYTX FDA gives approval to continue enrolment in Athena cardiovascular trial (+) EGHT Earnings beat estimates, raises FY15 growth guidance (+) DAN Beats earnings estimates, raises guidance (+) KMX Increases share buyback another $2 billion (+) TSCO Beat Q3 estimates, raised guidance (+) LTM Reports strong Q3 earnings, 2014 guidance
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Southwest ( LUV ), American Airlines ( AAL ), United Continental ( UAL ) and JetBlue (JBLU) all reported record quarterly profits on Thursday. The rally kicked off with robust earnings from Caterpillar ( CAT ) and extended throughout the day, fueled by bullish global economic data and upbeat earnings from airlines and multi-nationals. The Dow Jones Industrial Average took the lead early on with heavily-weighted component stocks CAT and 3M ( MMM ) catapulting the index 100 points higher at the open.
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8551.0
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2014-10-22 00:00:00 UTC
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Should American Airlines Group, Inc. Return to Fuel Hedging?
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AAL
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https://www.nasdaq.com/articles/should-american-airlines-group-inc-return-fuel-hedging-2014-10-22
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nan
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nan
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For most of the past decade, hedging jet fuel costs has been a standard practice at virtually every U.S. airline. Yet the American Airlines Group management team -- CEO Doug Parker, President Scott Kirby, and CFO Derek Kerr -- have gone against the grain. In the past year at American Airlines, and in the previous five years at US Airways, they have refused to hedge fuel costs.
After having a bad experience with fuel hedging in 2008 and 2009, Parker and his top lieutenants decided to go cold turkey on hedging. Since then, they have developed a strong argument for why their competitors' hedging strategies are misguided.
With oil prices having plummeted in the past few weeks, American Airlines' no-hedging strategy is set to pay off in a big way this fall. That said, with oil prices at multi-year lows, this may be a good time for airlines to lock in future fuel prices by opening new hedges. Could American Airlines' top leaders take this opportunity to reverse their long-standing opposition to hedging?
Hedging: a dangerous game
Southwest Airlines was the industry leader in fuel hedging in the years leading up to the Great Recession. Southwest's policy of locking in hedges far in advance paid off as oil prices soared from less than $30 in 2003 to more than $140 by mid-2008.
Brent Crude Oil Spot Price , data by YCharts
Southwest offset fuel price increases with billions of dollars of hedging gains between 2004 and 2008. As oil prices skyrocketed during this time period, other airlines saw Southwest's hedging gains and increased their own hedging activity.
Yet by mid-2008, the credit crunch had begun and the global economy was spiraling toward the Great Recession. Travel demand plummeted, hurting airline revenues. Meanwhile, oil prices gave up nearly five years of gains in the span of six months. Yet airlines were locked into higher fuel costs due to the recent flurry of hedging activity.
It was around this time that the US Airways leadership team concluded that hedging didn't make as much sense as everyone in the airline industry had previously assumed. Perversely, the oil price drop in late 2008 caused even bigger problems for US Airways than the previous run-up in oil prices.
The case against hedging
From the perspective of the new American Airlines (and former US Airways) management team, there are three main problems with fuel hedging. The first is that ticket prices are a "natural hedge" for airlines.
If the global economy strengthens, oil prices may rise, but airlines should also be able to raise ticket prices. Likewise, falling oil prices can offset demand weakness in a bad economy. Hedging fuel costs disrupts this "natural" hedge. Most importantly, it means that fuel costs won't decline as quickly during a recession.
US Airways executives decided after 2008 that hedging didn't make sense (Photo: The Motley Fool)
Second, a "disciplined" hedging strategy -- buying new hedges every month to gradually lock in fuel prices for the next few quarters -- doesn't offer any long-term protection. Buying hedges every month provides no advantage over buying jet fuel every month. Either way, over the long term you're going to be paying low prices some of the time and high prices at other times.
Third, fuel hedging can be very pricey. Most airlines hedge with call options, which allow them to cap their fuel costs without locking them in if oil prices happen to fall. The downside of this strategy is that the airline has to pay a premium for each call option. Unless oil prices rise by a significant amount before the option expires, the airline will lose money on the hedge.
The decision to stop hedging worked well for US Airways. Between 2010 and mid-2013, US Airways had the lowest or second-lowest "all-in" fuel cost among U.S. airlines in 10 out of 14 quarters -- despite a significant rise in fuel prices during that period. Hedging premiums had more than offset the occasional hedging gains achieved by other airlines.
Easing up on hedges
In the past year or two, other airlines have started to catch on to the strategy pioneered at US Airways. Most other airlines still hedge, but they hedge a much smaller proportion of their fuel needs. Airlines have also put more emphasis on limiting call option premium costs. This will serve them well in the near future, as oil prices have dropped significantly since June.
Delta reported significant hedging losses in Q3 due to falling oil prices (Photo: The Motley Fool)
Still, American Airlines has the most to gain from lower fuel prices, due to its no-hedging policy. For example, top rival Delta Air Lines reported $347 million in "mark-to-market" losses last quarter due to the declining value of its fuel hedges. Oil prices have continued to fall since the end of Q3, setting Delta up for additional hedging losses in Q4.
Time for another shift?
Doug Parker and his team have shown that they aren't afraid to buck the industry consensus. Today, other airlines are moving to less aggressive hedging policies. Yet American Airlines may want to consider a move in the opposite direction.
Oil prices are currently at a four-year low. The U.S. shale boom has played a big role in boosting world oil supply. Yet many of the shale oil projects that have raised U.S. oil production to levels not seen in 3-4 decades will become unprofitable if oil prices fall any further.
This potentially creates a low-cost hedging opportunity. Rather than buying call options from banks (which will only sell these options if they expect to make a profit), American Airlines could work directly with shale oil producers that are looking to lock in future prices above their cost of production.
Oil producers have just as great an interest in hedging against falling oil prices as airlines do in hedging against rising oil prices. This would give American Airlines (or another airline) an opportunity to lock in a portion of its future fuel costs at the market price, rather than paying a premium. This removes one of the biggest downsides of hedging.
American Airlines may want to lock in some of its future fuel purchases at today's low prices (Photo: American Airlines)
This strategy also wouldn't suffer from the same flaw as "disciplined" hedging. It would be a one-time decision to lock in oil prices at a fair level where American Airlines could probably make money even if oil prices ended up somewhat lower.
Lastly, while locking in oil prices breaks the natural hedge of oil prices vs. demand, the high cost of production in many North American oil fields makes it unlikely that prices would fall much further even during a recession. Meanwhile, it guards against the risk of a severe supply shock -- e.g. a regional war in the Middle East that could rapidly cut oil exports from the Persian Gulf.
Will American Airlines pull the trigger?
Given the long-standing opposition to hedging among the American Airlines management team, a return to hedging is clearly a long shot. That said, some of the objections that Parker, Kirby, and Kerr have historically raised regarding fuel hedging may no longer apply.
There is a strong case to be made that airlines should be hedging more aggressively today than they have in recent years. Oil prices are at a four-year low, yet there are significant geopolitical threats to the global oil supply (such as the rise of ISIS in the Middle East).
Doug Parker and his team are all smart airline managers. If the facts about fuel hedging have changed, they just might change their position and reinstate hedging at American Airlines.
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The article Should American Airlines Group, Inc. Return to Fuel Hedging? 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 - 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.
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Yet the American Airlines Group management team -- CEO Doug Parker, President Scott Kirby, and CFO Derek Kerr -- have gone against the grain. For example, top rival Delta Air Lines reported $347 million in "mark-to-market" losses last quarter due to the declining value of its fuel hedges. The Motley Fool just completed a brand-new investigative report on this significant investment topic and a single, under-the-radar company that has its hands tightly wrapped around the driving force that has allowed this boom to take off in the first place .
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US Airways executives decided after 2008 that hedging didn't make sense (Photo: The Motley Fool) Second, a "disciplined" hedging strategy -- buying new hedges every month to gradually lock in fuel prices for the next few quarters -- doesn't offer any long-term protection. Delta reported significant hedging losses in Q3 due to falling oil prices (Photo: The Motley Fool) Still, American Airlines has the most to gain from lower fuel prices, due to its no-hedging policy. Lastly, while locking in oil prices breaks the natural hedge of oil prices vs. demand, the high cost of production in many North American oil fields makes it unlikely that prices would fall much further even during a recession.
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Delta reported significant hedging losses in Q3 due to falling oil prices (Photo: The Motley Fool) Still, American Airlines has the most to gain from lower fuel prices, due to its no-hedging policy. Oil producers have just as great an interest in hedging against falling oil prices as airlines do in hedging against rising oil prices. Lastly, while locking in oil prices breaks the natural hedge of oil prices vs. demand, the high cost of production in many North American oil fields makes it unlikely that prices would fall much further even during a recession.
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Delta reported significant hedging losses in Q3 due to falling oil prices (Photo: The Motley Fool) Still, American Airlines has the most to gain from lower fuel prices, due to its no-hedging policy. Oil producers have just as great an interest in hedging against falling oil prices as airlines do in hedging against rising oil prices. This would give American Airlines (or another airline) an opportunity to lock in a portion of its future fuel costs at the market price, rather than paying a premium.
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8552.0
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2014-10-17 00:00:00 UTC
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Falling Airline Stocks: American, United, Delta, Southwest & JetBlue
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AAL
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https://www.nasdaq.com/articles/falling-airline-stocks-american-united-delta-southwest-jetblue-2014-10-17
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nan
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nan
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Over the past one month, airline stocks have steadily fallen as concerns related to the spread of Ebola virus have mounted. Major airline stocks including American ( AAL ), United ( UAL ) and Delta ( DAL ) have fallen by over 20% since mid-September. Investors and traders are concerned that the fear of contracting this virus on a flight or at a large hub airport could propel people to shelve their travel plans ahead of and during the upcoming holiday season.
However, the Center for Disease Control and Prevention ( CDC ) has explained that even though Ebola is a deadly virus, which has killed over 4,000 people in its latest outbreak, the chances of contracting this disease on board a U.S. airline are low. U.S. airlines under law can refuse to board a passenger who shows symptoms of an infection (including Ebola disease) which can spread to other passengers. And symptoms of the Ebola disease including fever, headache, muscle pain, and vomiting are quite recognizable. Additionally, unlike flu Ebola does not spread through air. It can be contracted only through physical contact with an infected person's body fluids. So, the chances of contracting this virus within the enclosed environment of an airplane cabin are low.
Separately, we have so far not seen any impact on airline occupancy rates - percentage of seats occupied by passengers in a flight. U.S. airlines recently released their traffic results for the month of September and occupancy levels at most airlines were normal. We figure if no dramatic event unfolds in the U.S. through December, then people will not likely shelve their travel plans around the holiday season. In such a case, the worst case scenario, which in our view has hammered the airline stocks during the past month, will likely not play out. So, airline stocks could gain some of their lost value in the coming weeks.
We currently have a stock price estimate of $39.25 for American Airlines Group, around 37% ahead of its current market price. Our current stock price estimates for Delta and United are also ahead of their current market prices by roughly 25% and 10%, respectively.
See our complete analysis of American Airlines Group here
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major airline stocks including American ( AAL ), United ( UAL ) and Delta ( DAL ) have fallen by over 20% since mid-September. Investors and traders are concerned that the fear of contracting this virus on a flight or at a large hub airport could propel people to shelve their travel plans ahead of and during the upcoming holiday season. See our complete analysis of American Airlines Group here View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
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Major airline stocks including American ( AAL ), United ( UAL ) and Delta ( DAL ) have fallen by over 20% since mid-September. We currently have a stock price estimate of $39.25 for American Airlines Group, around 37% ahead of its current market price. Our current stock price estimates for Delta and United are also ahead of their current market prices by roughly 25% and 10%, respectively.
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Major airline stocks including American ( AAL ), United ( UAL ) and Delta ( DAL ) have fallen by over 20% since mid-September. Over the past one month, airline stocks have steadily fallen as concerns related to the spread of Ebola virus have mounted. However, the Center for Disease Control and Prevention ( CDC ) has explained that even though Ebola is a deadly virus, which has killed over 4,000 people in its latest outbreak, the chances of contracting this disease on board a U.S. airline are low.
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Major airline stocks including American ( AAL ), United ( UAL ) and Delta ( DAL ) have fallen by over 20% since mid-September. Over the past one month, airline stocks have steadily fallen as concerns related to the spread of Ebola virus have mounted. However, the Center for Disease Control and Prevention ( CDC ) has explained that even though Ebola is a deadly virus, which has killed over 4,000 people in its latest outbreak, the chances of contracting this disease on board a U.S. airline are low.
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8553.0
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2014-10-16 00:00:00 UTC
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VXF, AAL, TSLA, LVS: Large Outflows Detected at ETF
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AAL
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https://www.nasdaq.com/articles/vxf-aal-tsla-lvs-large-outflows-detected-etf-2014-10-16
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nan
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nan
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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 $47.2 million dollar outflow -- that's a 1.5% decrease week over week (from 40,834,228 to 40,240,869). Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is down about 2.1%, Tesla Motors Inc (Symbol: TSLA) is down about 2.8%, and Las Vegas Sands Corp (Symbol: LVS) is higher by about 1.6%. 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 $77.20 per share, with $88.99 as the 52 week high point - that compares with a last trade of $79.27. 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.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is down about 2.1%, Tesla Motors Inc (Symbol: TSLA) is down about 2.8%, and Las Vegas Sands Corp (Symbol: LVS) is higher by about 1.6%. 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 $77.20 per share, with $88.99 as the 52 week high point - that compares with a last trade of $79.27. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is down about 2.1%, Tesla Motors Inc (Symbol: TSLA) is down about 2.8%, and Las Vegas Sands Corp (Symbol: LVS) is higher by about 1.6%. 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 $77.20 per share, with $88.99 as the 52 week high point - that compares with a last trade of $79.27. 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).
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is down about 2.1%, Tesla Motors Inc (Symbol: TSLA) is down about 2.8%, and Las Vegas Sands Corp (Symbol: LVS) is higher by about 1.6%. 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 $47.2 million dollar outflow -- that's a 1.5% decrease week over week (from 40,834,228 to 40,240,869). 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 $77.20 per share, with $88.99 as the 52 week high point - that compares with a last trade of $79.27.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is down about 2.1%, Tesla Motors Inc (Symbol: TSLA) is down about 2.8%, and Las Vegas Sands Corp (Symbol: LVS) is higher by about 1.6%. 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 $47.2 million dollar outflow -- that's a 1.5% decrease week over week (from 40,834,228 to 40,240,869). Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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8554.0
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2014-10-14 00:00:00 UTC
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Tuesday Sector Leaders: General Contractors & Builders, Airlines
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AAL
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https://www.nasdaq.com/articles/tuesday-sector-leaders-general-contractors-builders-airlines-2014-10-14
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nan
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nan
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In trading on Tuesday, general contractors & builders shares were relative leaders, up on the day by about 3.7%. Leading the group were shares of Cavco Industries ( CVCO ), up about 7.1% and shares of Taylor Morrison Home Corporation ( TMHC ) up about 5.5% on the day.
Also showing relative strength are airlines shares, up on the day by about 3.7% as a group, led by American Airlines Group ( AAL ), trading up by about 10.8% and Jetblue Airways ( JBLU ), trading up by about 9.2% on Tuesday.
VIDEO: Tuesday Sector Leaders: General Contractors & Builders, Airlines
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.
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Also showing relative strength are airlines shares, up on the day by about 3.7% as a group, led by American Airlines Group ( AAL ), trading up by about 10.8% and Jetblue Airways ( JBLU ), trading up by about 9.2% on Tuesday. In trading on Tuesday, general contractors & builders shares were relative leaders, up on the day by about 3.7%. VIDEO: Tuesday Sector Leaders: General Contractors & Builders, Airlines The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also showing relative strength are airlines shares, up on the day by about 3.7% as a group, led by American Airlines Group ( AAL ), trading up by about 10.8% and Jetblue Airways ( JBLU ), trading up by about 9.2% on Tuesday. In trading on Tuesday, general contractors & builders shares were relative leaders, up on the day by about 3.7%. VIDEO: Tuesday Sector Leaders: General Contractors & Builders, Airlines The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also showing relative strength are airlines shares, up on the day by about 3.7% as a group, led by American Airlines Group ( AAL ), trading up by about 10.8% and Jetblue Airways ( JBLU ), trading up by about 9.2% on Tuesday. VIDEO: Tuesday Sector Leaders: General Contractors & Builders, Airlines 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.
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Also showing relative strength are airlines shares, up on the day by about 3.7% as a group, led by American Airlines Group ( AAL ), trading up by about 10.8% and Jetblue Airways ( JBLU ), trading up by about 9.2% on Tuesday. In trading on Tuesday, general contractors & builders shares were relative leaders, up on the day by about 3.7%. Leading the group were shares of Cavco Industries ( CVCO ), up about 7.1% and shares of Taylor Morrison Home Corporation ( TMHC ) up about 5.5% on the day.
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8555.0
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2014-10-08 00:00:00 UTC
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Sector Update: Consumer Shares Edging Higher in Pre-Market
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AAL
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https://www.nasdaq.com/articles/sector-update-consumer-shares-edging-higher-pre-market-2014-10-08
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nan
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nan
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Top Consumer Shares:
WMT: +0.13%
MCD: +0.19%
DIS: +0.01%
CVS: flat
KO: -0.39%
GE: +0.16%
Consumer shares were generally higher ahead of the opening bell Wednesday.
In consumer stocks news, Costco Wholesale ( COST ) has announced Q4 results that beat the Street view on EPS and total revenues.
The company reported Q4 EPS of $1.58, up from $1.40 in the same period last year and beating analyst estimates of $1.52. Total front-end sales increased 2.2% in September compared with the same month in fiscal 2014, while comparable store front-end sales increased 1.7%.
Shares of COST were up about 2.6% at $128.50 in early pre-market trading within a 52-week range of $109.50 - $127.78.
And, American Airlines Group ( AAL ) on Wednesday reported its traffic results for September 2014, noting that the airline's total passenger load factor was 80.0% for the month, down 1.5 points versus September 2013.
AAL shares rose 1.14% in pre-market trading to $34.48.
Finally, Star Bulk Carriers ( SBLK ) was given a Buy rating at Maxim with a $17 price target. This is a 67% premium from Tuesday's closing price. Shares of SBLK last trades with a 52-week range of $7.72 to $15.88.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And, American Airlines Group ( AAL ) on Wednesday reported its traffic results for September 2014, noting that the airline's total passenger load factor was 80.0% for the month, down 1.5 points versus September 2013. AAL shares rose 1.14% in pre-market trading to $34.48. Consumer shares were generally higher ahead of the opening bell Wednesday.
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And, American Airlines Group ( AAL ) on Wednesday reported its traffic results for September 2014, noting that the airline's total passenger load factor was 80.0% for the month, down 1.5 points versus September 2013. AAL shares rose 1.14% in pre-market trading to $34.48. Total front-end sales increased 2.2% in September compared with the same month in fiscal 2014, while comparable store front-end sales increased 1.7%.
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And, American Airlines Group ( AAL ) on Wednesday reported its traffic results for September 2014, noting that the airline's total passenger load factor was 80.0% for the month, down 1.5 points versus September 2013. AAL shares rose 1.14% in pre-market trading to $34.48. In consumer stocks news, Costco Wholesale ( COST ) has announced Q4 results that beat the Street view on EPS and total revenues.
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And, American Airlines Group ( AAL ) on Wednesday reported its traffic results for September 2014, noting that the airline's total passenger load factor was 80.0% for the month, down 1.5 points versus September 2013. AAL shares rose 1.14% in pre-market trading to $34.48. Top Consumer Shares:
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8556.0
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2014-10-08 00:00:00 UTC
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Sector Update: Consumer
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AAL
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https://www.nasdaq.com/articles/sector-update-consumer-2014-10-08-1
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nan
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nan
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Consumer shares were generally higher ahead of the opening bell Thursday.
In consumer stocks news, Costco Wholesale ( COST ) has announced Q4 results that beat the Street view on EPS and total revenues.
The company reported Q4 EPS of $1.58, up from $1.40 in the same period last year and beating analyst estimates of $1.52. Total front-end sales increased 2.2% in September compared with the same month in fiscal 2014, while comparable store front-end sales increased 1.7%.
Shares of COST were up about 2.6% at $128.50 in early pre-market trading within a 52-week range of $109.50 - $127.78.
And, American Airlines Group ( AAL ) on Wednesday reported its traffic results for September 2014, noting that the airline's total passenger load factor was 80.0% for the month, down 1.5 points versus September 2013.
AAL shares rose 1.14% in pre-market trading to $34.48.
Finally, Star Bulk Carriers ( SBLK ) was given a Buy rating at Maxim with a $17 price target. This is a 67% premium from Tuesday's closing price. Shares of SBLK last trades with a 52-week range of $7.72 to $15.88.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And, American Airlines Group ( AAL ) on Wednesday reported its traffic results for September 2014, noting that the airline's total passenger load factor was 80.0% for the month, down 1.5 points versus September 2013. AAL shares rose 1.14% in pre-market trading to $34.48. Consumer shares were generally higher ahead of the opening bell Thursday.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And, American Airlines Group ( AAL ) on Wednesday reported its traffic results for September 2014, noting that the airline's total passenger load factor was 80.0% for the month, down 1.5 points versus September 2013. AAL shares rose 1.14% in pre-market trading to $34.48.
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And, American Airlines Group ( AAL ) on Wednesday reported its traffic results for September 2014, noting that the airline's total passenger load factor was 80.0% for the month, down 1.5 points versus September 2013. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AAL shares rose 1.14% in pre-market trading to $34.48.
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And, American Airlines Group ( AAL ) on Wednesday reported its traffic results for September 2014, noting that the airline's total passenger load factor was 80.0% for the month, down 1.5 points versus September 2013. AAL shares rose 1.14% in pre-market trading to $34.48. In consumer stocks news, Costco Wholesale ( COST ) has announced Q4 results that beat the Street view on EPS and total revenues.
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8557.0
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2014-10-07 00:00:00 UTC
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1 Industry That Could Make Billions From the Slide in Oil Prices
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AAL
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https://www.nasdaq.com/articles/1-industry-could-make-billions-slide-oil-prices-2014-10-07
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nan
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nan
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Oil prices spiked earlier this summer but have undergone a sharp decline to settle well below where they started the year. As oil prices have dropped, so have gasoline prices benefiting consumers and energy-intensive industries.
Among the biggest winners from this oil price slide is the airline industry, where cheaper jet fuel could set the stage for significant earnings increases.
A big expense
At around 30% of total expenses, jet fuel is one of the largest costs for airlines and is one they have little control over. According to Bureau of Transportation statistics, airlines spent over $48 billion combined on jet fuel last year and have already spent over $28 billion so far in 2014.
The significance of fuel expenses doesn't go unnoticed at airlines, with fuel cost per gallon being a routinely reported number in quarterly and monthly reports. Other strategies abound in the industry, including conventional strategies like hedging fuel prices through financial agreements and unconventional strategies like Delta Air Lines ' move to buy an oil refinery.
Reducing fuel consumption has also been a major driver behind the modernization of airline fleets since newer aircraft are designed with fuel efficiency in mind. Considering the amount of cash airlines are spending on new aircraft to replace older planes still in working condition, airlines themselves clearly see fuel expense as an area deserving of attention.
Boosting profits
In conducting daily flights, airlines use a lot of fuel, and even a small change in price can have a big impact on profits. The following table shows estimated 2014 fuel use by the four largest U.S. airlines with estimates used from each airline's 10-K filing from February . It also uses this data to estimate the savings for each $0.01 decrease in the price per gallon of jet fuel and its impact on earnings based on the current number of shares outstanding.
Since jet fuel prices are constantly fluctuating, it would be tough to come up with exact earnings impacts over long periods of time; however, these numbers are useful for comparing airline outlooks to those earlier this year.
Stock slide
All four major airlines are now well off their peaks, but the effects are strongest with Delta Air Lines and American Airlines Group, which will serve as the two examples in this comparison. In both cases, the market has given little credit for falling jet fuel prices while punishing shares on light news and market fears. I believe it's time to take a look at the value of lower jet fuel prices.
Delta Air Lines shares hit a high of $42.66 on June 5 but have since fallen about 13%. On June 5, jet fuel traded at $2.812 per gallon; $0.137 per gallon above the Sept. 29 price. On a full year basis, this drop should result in fuel savings of approximately $530 million or $0.63 per share.
Of course there are a lot of other variables here. Jet fuel prices will continue to fluctuate, Delta's fuel usage will not remain exactly the same, and Delta's fuel hedging program will result in extra costs or gains. But what is clear is that Delta should see a significant positive impact from this slide in jet fuel prices, and the market has not been rewarding the stock accordingly.
American Airlines Group fuel savings estimates should be a bit closer to actual savings since American does not engage in the same fuel hedging strategies as Delta. In American's case, its stock hit a high of $44.88 on June 23 and has fallen about 20% to today's levels. Despite jet fuel being a major cost to airlines, American Airlines Group shares hit their high as jet fuel prices neared their record high for 2014. On June 23, jet fuel traded at $2.954 per gallon; $0.279 per gallon above the Sept. 29 price. Using American's estimated fuel usage numbers, this drop would save the airline about $1.2 billion, or $1.67 per share, on an annual basis. Like in the Delta estimates, these are not exact numbers but they can serve as general impact estimates.
Buying opportunity
Based on the lack of major negative news, I continue to view the sell-off in airline stocks, particularly in American Airlines Group and Delta Air Lines, which have seen the biggest losses, as overdone. At the same time, jet fuel prices are now well below where they were trading as these airlines hit their highs in June. I believe this could create a major tailwind for earnings even as the market has sold off these stocks.
Although the typical risks of the airline industry still should be considered by investors, risk-tolerant investors should take a look at whether an investment here fits with their overall investment strategy. Personally, I will continue to remain long on American Airlines Group and Delta Air Lines, possibly increasing my positions if shares remain depressed.
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The article 1 Industry That Could Make Billions From the Slide in Oil Prices originally appeared on Fool.com.
Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC and Delta Air Lines. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long October 2014 $36 puts on AMERICAN AIRLINES GROUP INC, long January 2015 $22 calls on Delta Air Lines, long January 2015 $25 calls on Delta Air Lines, and long January 2015 $30 calls on Delta Air Lines.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice. Always do your own due diligence before buying or selling any security. 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.
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Among the biggest winners from this oil price slide is the airline industry, where cheaper jet fuel could set the stage for significant earnings increases. It also uses this data to estimate the savings for each $0.01 decrease in the price per gallon of jet fuel and its impact on earnings based on the current number of shares outstanding. Since jet fuel prices are constantly fluctuating, it would be tough to come up with exact earnings impacts over long periods of time; however, these numbers are useful for comparing airline outlooks to those earlier this year.
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Jet fuel prices will continue to fluctuate, Delta's fuel usage will not remain exactly the same, and Delta's fuel hedging program will result in extra costs or gains. Despite jet fuel being a major cost to airlines, American Airlines Group shares hit their high as jet fuel prices neared their record high for 2014. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long October 2014 $36 puts on AMERICAN AIRLINES GROUP INC, long January 2015 $22 calls on Delta Air Lines, long January 2015 $25 calls on Delta Air Lines, and long January 2015 $30 calls on Delta Air Lines.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice.
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Jet fuel prices will continue to fluctuate, Delta's fuel usage will not remain exactly the same, and Delta's fuel hedging program will result in extra costs or gains. Despite jet fuel being a major cost to airlines, American Airlines Group shares hit their high as jet fuel prices neared their record high for 2014. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long October 2014 $36 puts on AMERICAN AIRLINES GROUP INC, long January 2015 $22 calls on Delta Air Lines, long January 2015 $25 calls on Delta Air Lines, and long January 2015 $30 calls on Delta Air Lines.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice.
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It also uses this data to estimate the savings for each $0.01 decrease in the price per gallon of jet fuel and its impact on earnings based on the current number of shares outstanding. Despite jet fuel being a major cost to airlines, American Airlines Group shares hit their high as jet fuel prices neared their record high for 2014. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8558.0
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2014-10-06 00:00:00 UTC
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Cheap Stocks Wall Street Loves: Delta Air Lines, Inc.
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https://www.nasdaq.com/articles/cheap-stocks-wall-street-loves-delta-air-lines-inc-2014-10-06
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nan
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nan
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Airlines have not traditionally been good investments, but recent changes to the industry look poised to change this model. While airline stocks still do face an above average level of risk, Delta Air Lines remains one of Wall Street's top picks.
At a time when many investors are having a tough time finding cheap stocks, Delta Air Lines may be just what your portfolio's looking for.
Delta Air Lines appears cheap based on several metrics, but the airline's PEG ratio is particularly interesting. Measuring the current price to earnings ratio divided by estimated earnings growth, the PEG ratio lets you know how much you're paying for current earnings and future growth.
In the case of Delta, its PEG ratio comes in at just 0.89, reflecting the airline's low current earnings multiple and strong forecasted growth rate.
The airline also receives positive opinions from Wall Street analysts with 10 "strong buy ratings" and one "buy" rating from analysts reporting to NASDAQ. While doing your own research and not blindly following analysts is definitely important, it's still nice to know that those closely following Delta find its stock appealing.
Delta vs. rivals
Over the past couple years, Delta Air Lines, and the airline industry as a whole, has posted a major comeback with record earnings now being reported. But while other airlines have shared in the gains as well, Delta has remained ahead of them in multiple ways.
As Delta's profits rose, the airline was the first among the three major legacy carriers to launch a dividend and stock buyback program. Although its dividend was about the same as Southwest Airlines ' when it was launched and has now been joined by dividends from American Airlines Group , Delta's stock buyback program with its $2 billion authorization remains the largest of its legacy peers.
While American Airlines Group and United Continental are trying to compete with Delta in its capital returns to shareholders, Delta looks to have the advantage in this area over the next few years. With better margins than United Continental and fewer new aircraft orders than American Airlines, Delta could become the king of airline free cash flow.
In a June presentation, Delta forecasted $3 billion in free cash flow in its five-year targets. That cash could be used for a number of things including further debt reduction, higher dividends, or more share buybacks.
New opportunities
What else could that cash be used for? With Delta Air Lines it could be for something investors haven't even thought of. Remember, this is the airline that bought an oil refinery to reduce fuel expenses and control more of its supply chain.
Delta also used its cash to find a way into the London Heathrow market by purchasing a 49% stake in Virgin Atlantic Airways for $360 million. Since then, Delta and Virgin Atlantic have formed a joint venture that strengthens Delta's network and builds its hub at New York JFK International.
While most of the free cash flow will probably find more conventional uses, Delta's think-outside-the-box perspective could find an even better use for the cash if the opportunity presents itself.
A buying opportunity
With shares off 17% from their June highs, you may be wondering what happened to Delta. But the big move downward happened on pretty light news.
In its August traffic report, Delta adjusted its September PRASM estimate from a 2%-4% year-over-year increase down to a 2%-3% year-over-year increase. Airline stocks have also been hit by the cancelling of most flights to Venezuela, fears of terrorist attacks from ISIS, and fears of an Ebola pandemic.
However, the market largely ignored the good news from Delta over the past few months, including its second quarter earnings beat and a major drop in oil prices . With shares nearly a fifth cheaper than they were in June, I view this sell-off as a good way to acquire shares at a lower price.
Ready for takeoff
With markets at their current levels, finding a combination of value and growth can be a tough proposition. But Delta Air Lines appears to fit the bill and has plenty of Wall Street support behind it.
While airlines do carry greater levels of risk than most companies, Delta's current position makes it worth looking at to see if it fits with your overall investment strategy.
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The article Cheap Stocks Wall Street Loves: Delta Air Lines, Inc. originally appeared on Fool.com.
Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC and Delta Air Lines. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long October 2014 $36 puts on AMERICAN AIRLINES GROUP INC, long January 2015 $22 calls on Delta Air Lines, long January 2015 $25 calls on Delta Air Lines, and long January 2015 $30 calls on Delta Air Lines.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice. Always do your own due diligence before buying or selling any security. 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.
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However, the market largely ignored the good news from Delta over the past few months, including its second quarter earnings beat and a major drop in oil prices . Respected publications like The Economist have compared this disruptive invention to the steam engine and the printing press; Business Insider calls it "the next trillion dollar industry." Watch The Motley Fool's shocking video presentation to learn about the next great wave of technological innovation, one that will bring an end to "Made In China" for good.
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The airline also receives positive opinions from Wall Street analysts with 10 "strong buy ratings" and one "buy" rating from analysts reporting to NASDAQ. Although its dividend was about the same as Southwest Airlines ' when it was launched and has now been joined by dividends from American Airlines Group , Delta's stock buyback program with its $2 billion authorization remains the largest of its legacy peers. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long October 2014 $36 puts on AMERICAN AIRLINES GROUP INC, long January 2015 $22 calls on Delta Air Lines, long January 2015 $25 calls on Delta Air Lines, and long January 2015 $30 calls on Delta Air Lines.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice.
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Delta vs. rivals Over the past couple years, Delta Air Lines, and the airline industry as a whole, has posted a major comeback with record earnings now being reported. Although its dividend was about the same as Southwest Airlines ' when it was launched and has now been joined by dividends from American Airlines Group , Delta's stock buyback program with its $2 billion authorization remains the largest of its legacy peers. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, long October 2014 $36 puts on AMERICAN AIRLINES GROUP INC, long January 2015 $22 calls on Delta Air Lines, long January 2015 $25 calls on Delta Air Lines, and long January 2015 $30 calls on Delta Air Lines.This article is not an endorsement to buy or sell any security and does not constitute professional investment advice.
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The airline also receives positive opinions from Wall Street analysts with 10 "strong buy ratings" and one "buy" rating from analysts reporting to NASDAQ. A buying opportunity With shares off 17% from their June highs, you may be wondering what happened to Delta. Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC and Delta Air Lines.
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8559.0
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2014-10-05 00:00:00 UTC
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Guess Which Airlines Are Making the Most From Non-Ticket Fees?
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https://www.nasdaq.com/articles/guess-which-airlines-are-making-most-non-ticket-fees-2014-10-05
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Did you ever wonder about how those non-ticket airline fees always seem to creep up year after year? Well if you did, then the following data will confirm your worst fears. Airlines are making more and more money from non-ticket,or ancillary fees, and it's now become an integral part of their business model-for budget airlines and traditional airlines alike. It's time to look more closely at which airline is making what from ancillary fees.
By way of comparison, traditional operator United Airlines --14.9% of total revenue from ancillary revenue-generates a far larger percentage from the sale of miles on its frequent flier program. As defined above, United Airlines generated $5.7 billion in ancillary revenue in 2013 with 51% coming from miles sold. The remaining 49% comes from what it calls ancillary revenue (checking in bags, meals, onboard entertainment and premium services).
The top 10 ancillary revenue generators by revenue
In terms of revenue:
Source: CarTrawler Yearbook of Ancillary Revenue
It's not surprising that discount airlines like Ryanair and easyJet generate a large part of their revenue from ancillary sources. However, in terms of revenue per passenger, airlines like Air France/KLM, American Arlines , and Delta are generating almost the same as the budget airlines. However, the standout numbers come from United Airlines, because excluding for the frequent flier program miles sold, United is still generating around $20 from its ancillary revenue. In fact, it's total ancillary revenue has gone up 9.5 times since 2007.
The top ten airlines by share of total revenue
There will be no surprises here, as budget/discount airlines dominate the top 10.
Source: CarTrawler Yearbook of Ancillary Revenue
While budget airlines dominate the top 10, it's notable that United Airlines comes in 12 th with 14.9%. Moreover, the former kings of the budget airline industry (easyjet and Ryanair) actually generate far less per passenger than newer discount airlines like Spirit Airlines or Wizz Air.
The takeaway
Whether you look at traditional or discount airlines, the conclusion is the same. Ancillary revenue has increased strongly in recent years. For example, United Airlines has increased its ancillary revenue by 9.5 times since 2007, a figure that dwarfs the increases of 3.2 times and 5 times at budget airlines, Ryanair and easyjet. Ancillary revenue is now a significant part of budget and traditional airline revenue.
While the figures seem startling, it's not necessarily a bad thing. On the contrary, customers who are willing to pay many of these fees are helping keep ticket prices down for passengers who are not so keen to pay for premium services. Moreover, for the airline industry, it's become a major source of revenue. Investing Fools already know why this year is shaping up to be a great year for North American airlines, and ancillary fees are helping to keep airline capacity utilization (the percentage of passengers on miles flown) high by being able to keep ticket prices low. A win-win for passengers and airlines.
Warren Buffett: This new technology is a "real threat"
At the recent Berkshire Hathaway annual meeting, Warren Buffett admitted this emerging technology is threatening his biggest cash-cow. Buffett's fear can be your gain. Only a few investors are embracing this new market, which experts say will be worth over $2 trillion . Find out how you can cash in on this technology before the crowd catches on, by jumping onto one company that could get you the biggest piece of the action. Click here to access a free investor alert on the company we're calling the brains behind the technology.
The article Guess Which Airlines Are Making the Most From Non-Ticket Fees? originally appeared on Fool.com.
Lee Samaha 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.
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By way of comparison, traditional operator United Airlines --14.9% of total revenue from ancillary revenue-generates a far larger percentage from the sale of miles on its frequent flier program. The remaining 49% comes from what it calls ancillary revenue (checking in bags, meals, onboard entertainment and premium services). Find out how you can cash in on this technology before the crowd catches on, by jumping onto one company that could get you the biggest piece of the action.
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The top 10 ancillary revenue generators by revenue In terms of revenue: Source: CarTrawler Yearbook of Ancillary Revenue It's not surprising that discount airlines like Ryanair and easyJet generate a large part of their revenue from ancillary sources. Source: CarTrawler Yearbook of Ancillary Revenue While budget airlines dominate the top 10, it's notable that United Airlines comes in 12 th with 14.9%. For example, United Airlines has increased its ancillary revenue by 9.5 times since 2007, a figure that dwarfs the increases of 3.2 times and 5 times at budget airlines, Ryanair and easyjet.
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Airlines are making more and more money from non-ticket,or ancillary fees, and it's now become an integral part of their business model-for budget airlines and traditional airlines alike. The top 10 ancillary revenue generators by revenue In terms of revenue: Source: CarTrawler Yearbook of Ancillary Revenue It's not surprising that discount airlines like Ryanair and easyJet generate a large part of their revenue from ancillary sources. For example, United Airlines has increased its ancillary revenue by 9.5 times since 2007, a figure that dwarfs the increases of 3.2 times and 5 times at budget airlines, Ryanair and easyjet.
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The top 10 ancillary revenue generators by revenue In terms of revenue: Source: CarTrawler Yearbook of Ancillary Revenue It's not surprising that discount airlines like Ryanair and easyJet generate a large part of their revenue from ancillary sources. For example, United Airlines has increased its ancillary revenue by 9.5 times since 2007, a figure that dwarfs the increases of 3.2 times and 5 times at budget airlines, Ryanair and easyjet. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8560.0
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2014-10-05 00:00:00 UTC
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Who's Making the Airbus A321 Into a Luxury Jet?
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https://www.nasdaq.com/articles/whos-making-airbus-a321-luxury-jet-2014-10-05
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Since its launch in the late 1980s, the Airbus A321 from Airbus Group has collected over 2,000 orders and has become a common part of airline fleets. And as many airlines move toward larger aircraft, the Airbus A321 stands to see an increase in demand.
Besides being able to haul more passengers than the Airbus A320, two major airlines are finding the Airbus A321 useful for going after a new passenger market.
Mint condition
In the air travel market, JetBlue Airways has managed to carve out its own market of people who want to fly neither with the major carriers nor the discount carriers. But to keep hold of higher-paying travelers and win them over from other carriers, JetBlue is offering a product similar to what major carriers are offering on long-distance overseas flights.
JetBlue is bringing the in-flight suite to the domestic U.S. market in select Airbus A321 aircraft. The suites are called Mint and feature closable doors, a 15-inch screen, a massage function, and fully lie-flat capability.
By making this offering, JetBlue is able to target higher-paying travelers who would otherwise fly first or business class on other major carriers. And surprisingly, JetBlue's Mint suites don't break the bank, either. Often available for as little as $599 each way between New York JFK International and Los Angeles International, these suites are a higher-priced option but not out of reach.
On its website, JetBlue shows two different layouts for its Airbus A321: one with 143 core seats and 16 enhanced experienced seats, of which four are suites, and the other layout with 190 core seats. JetBlue also operates Airbus A320 aircraft with 150 core seats. Based on the number of core seats in each aircraft, the Airbus A321 with the suites is similar to the Airbus A320 if JetBlue were to extend the A320 and add suites.
By adding the suites, JetBlue has chosen to use the extra space of the A321 to sell a premium product, making the aircraft home to one of the most luxurious commercial flight experiences for domestic travel.
Premium layout
JetBlue isn't the only one seeing the potential for a luxury offering in the transcontinental market. American Airlines Group is tossing its hat in the ring by offering its own private suite experience.
These suites have lie-flat seats, an entertainment system available with hundreds of movies and TV programs, and a choice of entree, including such things as shrimp scampi and beef fillet.
Prices for these suites vary dramatically, with reservations months ahead sometimes costing around $1,000 each way, but Bloomberg found that some fares can hit $8,000. The lower end of this price range could work for affluent travelers, but the higher end is for those who would otherwise be flying a private jet.
But these suites aren't in every plane. American Airlines has turned the Airbus A321 Transcontinental into a luxury flight experience, where only 36 of the 102 seats on board are ordinary coach class, with the others being coach seats with extra legroom and first- and business-class seats. Furthermore, American Airlines is being highly selective on when it deploys these aircraft, having selected New York JFK-to-Los Angeles and New York JFK-to-San Francisco as the only routes this aircraft will operate.
Obviously this is a big bet on the luxury air travel market, and investors should watch to see how successful American Airlines is in this new approach.
A growing trend?
JetBlue Airways and American Airlines have both used the Airbus A321 to bring these premium offerings to domestic routes where narrow-body aircraft are preferred but extra space is still required.
As airlines continue to look for new ways to sell to the highest-paying travelers, investors should continue to monitor which new features are added and which aircraft the airlines choose for selling these features.
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The article Who's Making the Airbus A321 Into a Luxury Jet? originally appeared on Fool.com.
Alexander MacLennan owns shares of 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 - 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.
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By adding the suites, JetBlue has chosen to use the extra space of the A321 to sell a premium product, making the aircraft home to one of the most luxurious commercial flight experiences for domestic travel. These suites have lie-flat seats, an entertainment system available with hundreds of movies and TV programs, and a choice of entree, including such things as shrimp scampi and beef fillet. JetBlue Airways and American Airlines have both used the Airbus A321 to bring these premium offerings to domestic routes where narrow-body aircraft are preferred but extra space is still required.
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But to keep hold of higher-paying travelers and win them over from other carriers, JetBlue is offering a product similar to what major carriers are offering on long-distance overseas flights. JetBlue is bringing the in-flight suite to the domestic U.S. market in select Airbus A321 aircraft. JetBlue Airways and American Airlines have both used the Airbus A321 to bring these premium offerings to domestic routes where narrow-body aircraft are preferred but extra space is still required.
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On its website, JetBlue shows two different layouts for its Airbus A321: one with 143 core seats and 16 enhanced experienced seats, of which four are suites, and the other layout with 190 core seats. Based on the number of core seats in each aircraft, the Airbus A321 with the suites is similar to the Airbus A320 if JetBlue were to extend the A320 and add suites. American Airlines has turned the Airbus A321 Transcontinental into a luxury flight experience, where only 36 of the 102 seats on board are ordinary coach class, with the others being coach seats with extra legroom and first- and business-class seats.
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By adding the suites, JetBlue has chosen to use the extra space of the A321 to sell a premium product, making the aircraft home to one of the most luxurious commercial flight experiences for domestic travel. Premium layout JetBlue isn't the only one seeing the potential for a luxury offering in the transcontinental market. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8561.0
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2014-10-04 00:00:00 UTC
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Busted! Another Airline Cracks Down on Your Carry-on Bags
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https://www.nasdaq.com/articles/busted-another-airline-cracks-down-your-carry-bags-2014-10-04
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nan
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nan
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New airline policies frequently raise feathers among flyers, but a recent policy change by Air Canada has everyday passengers divided into two camps of angry and understanding flyers. At the same time, the airline has its own reasons for measuring carry-on bags -- including some reasons you may not have thought of.
How has a new airline policy caused a split in passenger feelings? Could it be part of a broader trend?
Using the bag sizer
Depending on how you pack and where you travel, the bag sizers at airports may or may not be relevant to you in your travels. But these metal frames do have a purpose, and it's to quickly determine whether your carry-on bag meets airline size requirements.
Check-in at Halifax International Airport. A bag sizer can be seen near the right of this image. Source: Robert Alfers via Wikimedia Commons.
Although all carry-on bags should technically have to fit in the bag sizer, enforcement by airlines varies dramatically. Some carriers check every bag, while others completely ignore the bag sizer's presence.
This year, bag-size enforcement has been stepped up, with reports of increased checks at United Continental and American Airlines Group . Even more recently, Air Canada joined the trend after enacting another separate policy (more on this later).
To fully examine this issue, let's look at all three viewpoints: passengers in favor of increased enforcement, passengers against increased enforcement, and the airlines themselves.
Airline perspective
For airlines, the two main reasons to tighten enforcement of carry-on bag sizes are increased efficiency and safety. Time is money in the airline industry; slower boarding increases time spent on the ground, decreases the number of flights an aircraft can operate each day, and leads to fewer on-time arrivals.
Airlines have sought out all sorts of different strategies to reduce boarding time, but carry-on bags, especially oversized ones, remain a problem. When passengers take the time to put a bag in the overhead bin, it adds to the time spent at the gate. With an entire planeload of passengers stowing luggage, this can really add up.
Oversized bags are an even bigger problem, because they clog the bins, forcing passengers to spend more time looking for space. Larger bags have a tougher time fitting through the aisles, slowing down overall movement.
Although it may not strike you as the main reason to check carry-on bag size more closely, passenger safety is an important consideration when it comes to carry-on bags. Statistics for carry-on bag injuries are difficult to obtain, but a widely cited estimate pegs the number at roughly 4,500 injuries per year, or about 12 per day. Many of these injuries are probably small in nature, but all of them are still best avoided.
When passengers are injured on board, the stories generate negative publicity for the airline, further delay boarding, and have the potential to cause legal problems for the airline. Not all carry-on bag injuries can be avoided, as some bags will inevitably be dropped as passengers lift them into overhead bins; but keeping bag size under control is a reasonable place to start.
Larger bags, which are often heavier, as well, are more difficult to control, and their greater weight increases the likelihood of injury when dropped or lifted. By cracking down on these bags, airlines can increase passenger safety through relatively simple means.
Passengers for the crackdown
Unlike many new airline policies, the crackdown on oversized carry-ons has the support of many passengers. These people cite reasons similar to the airlines, including increased safety, decreased boarding time, and less trouble in looking for overhead bin space.
Furthermore, not everyone pushes the limits of carry-on bag size, or even brings a bag on board, at all. For passengers packing light, the crackdown on oversized bags doesn't force them to change their habits; but it does free up more overhead bin space, decreases their chance of injury, and gets the plane off the ground more quickly.
Passengers against the crackdown
Of course, not everyone's happy with this stricter enforcement. Passengers who do test the size limits don't like having to pack lighter or check their bags. For these people, this crackdown is seen as too strict when existing bags that barely exceed the limits are forced to be checked.
Many in this group also feel that this stricter enforcement is just another way to get more money out of passengers. While carry-on bags on most carriers are free, checked bags rarely are, so every time a bag has to be checked, the airline makes a little more money.
Some travelers are also likely upset with the timing of Air Canada's carry-on crackdown coming just weeks after the airline announced it was introducing a fee on first-checked bags. It's tough to clearly determine whether these two events were placed so close together on purpose, but the timing will likely grab the attention of passengers anyway.
Too much baggage
The increased enforcement of carry-on bag sizes has split the passenger community while conveying clear benefits for airlines. Because this policy has many advantages for airlines, and the support of a fair number of flyers, I would not expect the carry-on crackdowns to end anytime soon.
When it comes to flying, it will serve you well to be aware of current policies, including this one -- enforced under the penalty of checked-bag fees.
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The article Busted! Another Airline Cracks Down on Your Carry-on Bags originally appeared on Fool.com.
Alexander MacLennan owns shares of Air Canada and AMERICAN AIRLINES GROUP INC. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long October 2014 $36 puts on AMERICAN AIRLINES GROUP INC. 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.
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These people cite reasons similar to the airlines, including increased safety, decreased boarding time, and less trouble in looking for overhead bin space. For passengers packing light, the crackdown on oversized bags doesn't force them to change their habits; but it does free up more overhead bin space, decreases their chance of injury, and gets the plane off the ground more quickly. Some travelers are also likely upset with the timing of Air Canada's carry-on crackdown coming just weeks after the airline announced it was introducing a fee on first-checked bags.
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Although it may not strike you as the main reason to check carry-on bag size more closely, passenger safety is an important consideration when it comes to carry-on bags. These people cite reasons similar to the airlines, including increased safety, decreased boarding time, and less trouble in looking for overhead bin space. Alexander MacLennan owns shares of Air Canada and AMERICAN AIRLINES GROUP INC. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long October 2014 $36 puts on AMERICAN AIRLINES GROUP INC.
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Not all carry-on bag injuries can be avoided, as some bags will inevitably be dropped as passengers lift them into overhead bins; but keeping bag size under control is a reasonable place to start. While carry-on bags on most carriers are free, checked bags rarely are, so every time a bag has to be checked, the airline makes a little more money. Alexander MacLennan owns shares of Air Canada and AMERICAN AIRLINES GROUP INC. Alexander MacLennan has the following options: long January 2015 $17 calls on AMERICAN AIRLINES GROUP INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long October 2014 $36 puts on AMERICAN AIRLINES GROUP INC.
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When passengers take the time to put a bag in the overhead bin, it adds to the time spent at the gate. Passengers for the crackdown Unlike many new airline policies, the crackdown on oversized carry-ons has the support of many passengers. While carry-on bags on most carriers are free, checked bags rarely are, so every time a bag has to be checked, the airline makes a little more money.
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8562.0
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2014-10-04 00:00:00 UTC
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3 New Airlines Looking to Steal Your Business From Industry Giants
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AAL
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https://www.nasdaq.com/articles/3-new-airlines-looking-steal-your-business-industry-giants-2014-10-04
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nan
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nan
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The airline industry has made quite a recovery over the past few years, leading several new carriers to make a move on this market. But starting a new airline requires a lot of planning, money, and luck.
These new carriers each have their own strategies, and I'll look at how each could affect the air travel market.
Eastern Air Lines
Once one of the largest airlines in the U.S., Eastern Air Lines ceased operations in 1991 after facing tough financial times. But a new group of investors has acquired the rights to the Eastern Air Lines name and is moving forward with an effort to relaunch the carrier.
The process of launching a new Eastern Air Lines began in 2011, and since then Eastern Air Lines Group has:
Filed an application for a Certificate of Public Convenience and Necessity from the U.S. Department of Transportation.
Ordered 10 Boeing 737-800 aircraft and secured purchase rights for 10 Boeing 737 MAX 8 aircraft.
Started accepting pilot applications.
source: Eastern Air Lines.
The new Eastern plans to be based out of Miami International Airport and use the old Eastern Air Lines control center, which is near the airport. By choosing Miami, the new Eastern will be competing with the networks of many major airlines, but especially with American Airlines Group , which uses the airport as a hub.
However, I don't expect Miami to see overcapacity problems, since American Airlines has an interest in keeping capacity levels low and prices elevated while Eastern Air Lines wouldn't have enough resources to add too much extra capacity.
According to Eastern's website, the airline expects aircraft deliveries to begin in late fall of 2014, although no word has been given on when flights will begin.
PEOPLExpress
This airline name wasn't as big as Eastern Air Lines, but it did make a name for itself as a low-cost carrier until it was merged with Continental Airlines, now part of United Continental Holdings , in 1987.
PEOPLExpress route map. Source: PEOPLExpress.
The new PEOPLExpress operates in the eastern U.S. using Newport News/Williamsburg as a hub connecting its Northeast flights with its Southeast ones.
From a pricing perspective, PEOPLExpress operates much like an ultra-discount airline, where fares themselves are low but there are fees for items such as carry-on baggage ($25), advanced seat assignment ($15), coffee or tea ($1), and soft drinks, bottled water, and juice ($2).
With these policies, PEOPLExpress could be a smaller competitor for Spirit Airlines , another ultra-discount carrier with similar policies. As both of these carriers grow, we will get a better feel for how many new customers ultra-discount airlines can bring to the market.
According to the airline's website, PEOPLExpress has operated 817 flights since it began service on June 30, but service has been temporarily suspended until Oct. 16. As an explanation, the airline cited "[r]ecent aircraft and crew availability and maintenance issues, including an aircraft recently damaged by a vendor's truck, an engine change, and a lack of a planned spare aircraft."
This is definitely a patch of rough air for PEOPLExpress, but the airline is able to process refunds for customers with flights before Oct. 16. This airline has a lot ahead of it, and industry followers should keep an eye on it and how well it can resume flights on Oct. 16.
Baltia Air Lines
Unlike the new versions of Eastern Air Lines and PEOPLExpress, Baltia Air Lines wants to go long-haul international early and use jumbo jet aircraft to fly its routes. Although it has a longer-term goal of becoming a leading carrier flying to European capitals, Baltia intends to begin by operating flights to Polkovo Airport in St. Petersburg, Russia.
Source: Baltia Air Lines.
Currently, Baltia is waiting for approval from the FAA Air Carrier Certification process, but if it's successful, the airline will have many challenges ahead. Baltia plans to take control of the New York-to-St. Petersburg route by offering non-stop flights taking approximately eight hours, compared with connecting flights from other carriers that take 11 to 30 hours.
The airline's choice of aircraft is also an interesting one. Even as jumbo jets lose popularity with most airlines, Baltia looks poised to use Boeing 747 aircraft for this route. This has an important trade-off. On one hand, the Boeing 747 is losing popularity because of its fuel consumption, but on the other hand, lower demand for these planes makes them cheaper for start-ups like Baltia to finance.
Because of current geopolitical tensions, Baltia also finds itself at risk from the possibility of increased sanctions between the U.S. and Russia. Unlike major U.S. carriers, where flights to Russia only make up a fraction of their routes, Baltia's only planned route relies on access to Russian airports.
Clearly, Baltia has an uphill battle ahead of it, and unlike Eastern Air Lines and PEOPLExpress, which are both private companies, the market is already assigning a valuation to Baltia through its stock traded over the counter. As of this writing, Baltia is being valued at $77 million, making it one of the smallest publicly traded airlines in existence.
Time for takeoff?
Of the three airlines mentioned here, PEOPLExpress is the only one to have operated passenger flights. Eastern Air Lines and Baltia Air Lines are both in the process of getting regulatory approval to begin flying.
Start-up companies are risky by nature, and start-up airlines are even riskier, because of the industry's capital-intensive nature and susceptibility to economic and geopolitical issues. Industry followers should continue to monitor the progress of these start-up carriers to see which ones could carve out a piece of the market for themselves and which existing carriers will be most affected.
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The article 3 New Airlines Looking to Steal Your Business From Industry Giants originally appeared on Fool.com.
Alexander MacLennan owns shares of 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 - 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.
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From a pricing perspective, PEOPLExpress operates much like an ultra-discount airline, where fares themselves are low but there are fees for items such as carry-on baggage ($25), advanced seat assignment ($15), coffee or tea ($1), and soft drinks, bottled water, and juice ($2). Although it has a longer-term goal of becoming a leading carrier flying to European capitals, Baltia intends to begin by operating flights to Polkovo Airport in St. Petersburg, Russia. Currently, Baltia is waiting for approval from the FAA Air Carrier Certification process, but if it's successful, the airline will have many challenges ahead.
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However, I don't expect Miami to see overcapacity problems, since American Airlines has an interest in keeping capacity levels low and prices elevated while Eastern Air Lines wouldn't have enough resources to add too much extra capacity. Baltia Air Lines Unlike the new versions of Eastern Air Lines and PEOPLExpress, Baltia Air Lines wants to go long-haul international early and use jumbo jet aircraft to fly its routes. Although it has a longer-term goal of becoming a leading carrier flying to European capitals, Baltia intends to begin by operating flights to Polkovo Airport in St. Petersburg, Russia.
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Eastern Air Lines Once one of the largest airlines in the U.S., Eastern Air Lines ceased operations in 1991 after facing tough financial times. PEOPLExpress This airline name wasn't as big as Eastern Air Lines, but it did make a name for itself as a low-cost carrier until it was merged with Continental Airlines, now part of United Continental Holdings , in 1987. Baltia Air Lines Unlike the new versions of Eastern Air Lines and PEOPLExpress, Baltia Air Lines wants to go long-haul international early and use jumbo jet aircraft to fly its routes.
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Eastern Air Lines Once one of the largest airlines in the U.S., Eastern Air Lines ceased operations in 1991 after facing tough financial times. Eastern Air Lines and Baltia Air Lines are both in the process of getting regulatory approval to begin flying. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8563.0
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2014-10-03 00:00:00 UTC
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Friday Sector Leaders: Airlines, Railroads
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AAL
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https://www.nasdaq.com/articles/friday-sector-leaders-airlines-railroads-2014-10-03
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nan
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nan
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In trading on Friday, airlines shares were relative leaders, up on the day by about 2.7%. Leading the group were shares of CHC Group ( HELI ), up about 6.6% and shares of American Airlines Group ( AAL ) up about 6.3% on the day.
Also showing relative strength are railroads shares, up on the day by about 2.4% as a group, led by Kansas City Southern Industries ( KSU ), trading higher by about 3.6% and Union Pacific Corporation ( UNP ), trading higher by about 3.3% on Friday.
VIDEO: Friday Sector Leaders: Airlines, Railroads
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.
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Leading the group were shares of CHC Group ( HELI ), up about 6.6% and shares of American Airlines Group ( AAL ) up about 6.3% on the day. In trading on Friday, airlines shares were relative leaders, up on the day by about 2.7%. Also showing relative strength are railroads shares, up on the day by about 2.4% as a group, led by Kansas City Southern Industries ( KSU ), trading higher by about 3.6% and Union Pacific Corporation ( UNP ), trading higher by about 3.3% on Friday.
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Leading the group were shares of CHC Group ( HELI ), up about 6.6% and shares of American Airlines Group ( AAL ) up about 6.3% on the day. In trading on Friday, airlines shares were relative leaders, up on the day by about 2.7%. VIDEO: Friday Sector Leaders: Airlines, Railroads The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Leading the group were shares of CHC Group ( HELI ), up about 6.6% and shares of American Airlines Group ( AAL ) up about 6.3% on the day. Also showing relative strength are railroads shares, up on the day by about 2.4% as a group, led by Kansas City Southern Industries ( KSU ), trading higher by about 3.6% and Union Pacific Corporation ( UNP ), trading higher by about 3.3% on Friday. VIDEO: Friday Sector Leaders: Airlines, Railroads The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Leading the group were shares of CHC Group ( HELI ), up about 6.6% and shares of American Airlines Group ( AAL ) up about 6.3% on the day. In trading on Friday, airlines shares were relative leaders, up on the day by about 2.7%. VIDEO: Friday Sector Leaders: Airlines, Railroads The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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8564.0
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2014-10-02 00:00:00 UTC
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Is It Time to Buy American Airlines Group Inc. Stock?
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AAL
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https://www.nasdaq.com/articles/it-time-buy-american-airlines-group-inc-stock-2014-10-02
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nan
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nan
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American Airlines Group has taken investors on a roller-coaster ride since it emerged from bankruptcy and merged with US Airways late last year. Shares stood near $25 at the time of the merger and soared as high as $44.88 this summer. However, since mid-July, American Airlines' stock has tanked by more than 20%.
American Airlines Stock Chart, data by YCharts .
The company's shares still do not look as appealing as those of rival Delta Air Lines . But the recent pullback seems like a massive overreaction, considering that American Airlines has posted strong results this year and has more merger-related benefits ahead. Thus, this definitely could be a good time to buy American Airlines stock.
Record earnings
American Airlines posted the best results in company history during the first half of 2014. In the first quarter -- typically a seasonally weak period -- the airline delivered an adjusted profit of $402 million . The company followed this up with a stellar $1.5 billion adjusted profit in the second quarter , powered by a 5.9% rise in passenger revenue per available seat mile, or PRASM.
The second half of the year doesn't look quite as rosy. In July, American projected that third-quarter PRASM would rise 1%-3%, leading to a 10.5%-12.5% pre-tax margin. However, by early September, the outlook had weakened: American now projects unit revenue will be up 0%-2%, and that pre-tax margin will be 10%-12% (compared to 12.8% in the second quarter).
American has posted big margin growth in 2014, but the gains are slowing. Photo: American Airlines.
American's unit revenue is also likely to come under pressure in the fourth quarter . International capacity growth has run ahead of demand recently, and American is about to get a boatload of new competition in Dallas and a few other key markets. Despite those issues, analysts expect American Airlines to post record earnings per share of $5.37 this year and $6.81 next year.
Extremely low valuation
Based on these analyst estimates, American is trading at about 6.4 times 2014 earnings and five times 2015 earnings. To be fair, these estimates exclude taxes, which American will start to accrue in the next year or two (though it will not owe cash tax payments for many years due to various credits).
American has an even lower earnings multiple than Delta. Photo: The Motley Fool.
Even adjusting for potential taxes, American Airlines trades for just eight times forward earnings. That makes it one of the cheapest stocks on the market. By contrast, Delta Air Lines stock trades for about nine times forward earnings (including taxes), and United Continental stock trades for about 12 times forward earnings (adjusting for taxes).
One reason for American's low valuation is its heavy capital expenditure burden. The airline plans to spend about $5.5 billion annually for the next five years in order to replace nearly half of its mainline aircraft fleet.
As a result, free cash flow will lag book earnings dramatically in coming years. Even if American Airlines looks extremely cheap based on its earnings multiple, it might actually be fairly expensive when measured by its free cash flow.
If American Airlines is a good stock, Delta is a great one
Despite American Airlines' low free cash flow, the stock still looks like a good deal following its recent pullback. The ongoing fleet replacement will significantly boost fuel efficiency over time, providing a long-term earnings tailwind. Moreover, as the pace of aircraft purchases slows after 2020, free cash flow should soar.
That said, Delta could be an even better bet. Delta's earnings multiple is only slightly higher than that of American, and Delta is producing billions of dollars of free cash flow annually. This will allow Delta to devote much more cash to shareholder-friendly activities such as dividends, buybacks, and debt reduction.
On the other hand, if you prefer American Airlines -- or already own Delta stock and want to diversify your airline stock holdings -- this looks like a good time to buy American Airlines stock. Barring any major integration blunders, American Airlines seems well positioned to continue earning big profits.
Top dividend stocks for the next decade
The smartest investors know that dividend stocks like American Airlines and Delta simply crush their nondividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
The article Is It Time to Buy American Airlines Group Inc. Stock? originally appeared on Fool.com.
Adam Levine-Weinberg is short shares of United Continental 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 - 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.
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But the recent pullback seems like a massive overreaction, considering that American Airlines has posted strong results this year and has more merger-related benefits ahead. International capacity growth has run ahead of demand recently, and American is about to get a boatload of new competition in Dallas and a few other key markets. Even if American Airlines looks extremely cheap based on its earnings multiple, it might actually be fairly expensive when measured by its free cash flow.
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Extremely low valuation Based on these analyst estimates, American is trading at about 6.4 times 2014 earnings and five times 2015 earnings. By contrast, Delta Air Lines stock trades for about nine times forward earnings (including taxes), and United Continental stock trades for about 12 times forward earnings (adjusting for taxes). If American Airlines is a good stock, Delta is a great one Despite American Airlines' low free cash flow, the stock still looks like a good deal following its recent pullback.
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By contrast, Delta Air Lines stock trades for about nine times forward earnings (including taxes), and United Continental stock trades for about 12 times forward earnings (adjusting for taxes). If American Airlines is a good stock, Delta is a great one Despite American Airlines' low free cash flow, the stock still looks like a good deal following its recent pullback. On the other hand, if you prefer American Airlines -- or already own Delta stock and want to diversify your airline stock holdings -- this looks like a good time to buy American Airlines stock.
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Extremely low valuation Based on these analyst estimates, American is trading at about 6.4 times 2014 earnings and five times 2015 earnings. If American Airlines is a good stock, Delta is a great one Despite American Airlines' low free cash flow, the stock still looks like a good deal following its recent pullback. On the other hand, if you prefer American Airlines -- or already own Delta stock and want to diversify your airline stock holdings -- this looks like a good time to buy American Airlines stock.
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8565.0
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2014-10-01 00:00:00 UTC
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American Airlines Group, Inc. Doubles Down on Dallas for Asian Flights
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-doubles-down-dallas-asian-flights-2014-10-01
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nan
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nan
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The merger of American Airlines Group and US Airways created a third giant U.S. airline capable of matching Delta Air Lines and United Continental . While American Airlines' global route network is broadly competitive with those of Delta and United, it does have one weak point: Asia.
American Airlines has a much smaller footprint in Asia than its two key competitors. Given the size and growth rate of Asia's developing economies, building a stronger network there is crucial.
American Airlines is looking to bolster its presence on routes to Asia. Source: American Airlines.
American Airlines now appears to have a strategy for competing in Asia. It plans to build Dallas-Fort Worth International Airport -- its largest hub -- into a major Asian gateway airport.
Competing from behind
Whereas American Airlines has a leading position in the domestic market and for flights to Latin America and Europe, it is a distant third place for flights to Asia.
For example, in Q2, American Airlines' transpacific capacity was less than one-quarter of its European or Latin American capacity. As a result, it generated just $255 million of transpacific revenue, compared to $1.19 billion at United and $819 million at Delta.
United Airlines has by far the biggest presence in Asia of any U.S. airline. Source: The Motley Fool.
This summer, American Airlines began two new routes to Asia, flying from its Dallas hub to Shanghai and Hong Kong. This expanded American's number of nonstop Asian routes to nine. That still leaves it far behind United and Delta, though.
Another Asian flight in Dallas
Last week, American Airlines announced plans to launch yet another flight to Asia from its Dallas hub. It is looking to fly nonstop to Beijing starting next summer, complementing its existing route from Chicago to Beijing.
After adding service to Beijing, American would fly nonstop from Dallas to all of the five key business markets in East Asia: Tokyo, Seoul, Beijing, Shanghai, and Hong Kong. This would mark a major milestone in the company's Asian strategy. Delta has similarly added flights from Seattle to each of those five cities as part of its attempt to make Seattle a major Asian gateway.
American Airlines Chief Marketing Officer Andrew Nocella emphasized the importance of this new route. He stated, "The pending addition of Beijing and recent additions of Shanghai and Hong Kong elevate Dallas/Fort Worth to one of the primary connecting hubs between Asia and destinations within the U.S. as well as Mexico, Central and South America."
The geography problem remains
Adding new routes to Asia is the easy part of American's strategy to boost its appeal to business customers. Now it must make those routes profitable -- and it needs to convince corporate customers that Dallas is a good connecting point to get to Asia. That's a more challenging task.
Delta and United have transpacific gateways that are much closer to Asia than Dallas.
From a geographical perspective, American still operates at a disadvantage compared to United and Delta, which have their main Asian gateways in San Francisco and Seattle, respectively. Both of those cities are more than 1,000 miles closer to Asia than Dallas.
This means American Airlines' flights to Asia are significantly more expensive to operate . Additionally, for travelers originating in the Northeast, Midwest, or Western U.S., flying to Asia through Dallas would involve significant backtracking, increasing travel times.
On the other hand, American Airlines has a strong position in the South and Southeast U.S., with large hubs in Dallas, Charlotte, and Miami. United and Delta only have one hub each in those regions (Houston and Atlanta, respectively). For customers in the South and Southeast regions, Dallas isn't very far out of the way for trips to Asia. Flying to Asia from Dallas could thus be seen as a way for American to leverage its existing strengths.
American still needs a second Asian gateway
American Airlines is progressing toward its goal of building Dallas-Fort Worth International Airport into a major Asian gateway. While the airport is not ideally located for flights to Asia, American is leveraging its large route network in Dallas (where it operates more than 750 daily departures) and its leading position in the South and Southeast to gather connecting traffic for its new flights.
That said, American Airlines will need a second major Asian gateway if it wants to become a serious competitor to United and Delta in Asia. For many of the largest U.S. population centers -- including six of American's nine "cornerstone" markets -- Dallas is too far from the shortest route to Asia to be a reasonable connecting point.
Today, American Airlines operates some flights to Asia from its Chicago and Los Angeles hubs. In the future, the company should consider adding more flights to Asia from one or both of those hubs in order to provide better options for traveling between the U.S. and Asia.
Top dividend stocks for the next decade
The smartest investors know that dividend stocks like American Airlines simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
The article American Airlines Group, Inc. Doubles Down on Dallas for Asian Flights originally appeared on Fool.com.
Adam Levine-Weinberg is short shares of United Continental 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 - 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.
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The geography problem remains Adding new routes to Asia is the easy part of American's strategy to boost its appeal to business customers. From a geographical perspective, American still operates at a disadvantage compared to United and Delta, which have their main Asian gateways in San Francisco and Seattle, respectively. For many of the largest U.S. population centers -- including six of American's nine "cornerstone" markets -- Dallas is too far from the shortest route to Asia to be a reasonable connecting point.
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It plans to build Dallas-Fort Worth International Airport -- its largest hub -- into a major Asian gateway airport. This summer, American Airlines began two new routes to Asia, flying from its Dallas hub to Shanghai and Hong Kong. American still needs a second Asian gateway American Airlines is progressing toward its goal of building Dallas-Fort Worth International Airport into a major Asian gateway.
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Another Asian flight in Dallas Last week, American Airlines announced plans to launch yet another flight to Asia from its Dallas hub. American still needs a second Asian gateway American Airlines is progressing toward its goal of building Dallas-Fort Worth International Airport into a major Asian gateway. That said, American Airlines will need a second major Asian gateway if it wants to become a serious competitor to United and Delta in Asia.
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After adding service to Beijing, American would fly nonstop from Dallas to all of the five key business markets in East Asia: Tokyo, Seoul, Beijing, Shanghai, and Hong Kong. Delta and United have transpacific gateways that are much closer to Asia than Dallas. That said, American Airlines will need a second major Asian gateway if it wants to become a serious competitor to United and Delta in Asia.
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8566.0
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2014-10-01 00:00:00 UTC
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Wall Street's Crazy Idea for Staples and Office Depot
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AAL
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https://www.nasdaq.com/articles/wall-streets-crazy-idea-staples-and-office-depot-2014-10-01
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nan
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nan
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Last month Credit Suisse analyst Gary Balter suggested office supplies retailer Staples should merge with Office Depot ( ODP ) because of increased online competition, sending shares of both companies soaring. He asks, "Why are they waiting?"
Office Depot isn't done digesting its own acquisition and now it may be gobbled up itself. Photo: Flickr user Mike Mozart.
It could just be the old saw, the burned hand learns best. Eighteen years ago Staples tried to do just that and was stopped cold by the Justice Department because of antitrust concerns. It's a testament to the futile nature of such second-guessing regulation because lawyers can't tell what the future holds.
By denying Staples the opportunity to buy up its rival back then, it ensured the industry would suffer mightily in the future because there was actually too much competition, more than the market could sustain. Substituting a regulator's judgment on what's best instead of allowing the market to decide is foolhardy.
It's not your daddy's office supply market anymore
But Balter notes that today there's a lot more online competition with rivals like Amazon.com stealing market share from the bricks and mortar stores, and he believes the FTC's approval of Office Depot's acquisition of OfficeMax -- the necessary outcome of having prevented Staples from winnowing the field before -- suggests it would also sign off on the two remaining office supplies giants joining together.
I'm not convinced regulators have caught up with modern times. They still tend to severely lag real-world events and it's hard to see how leaving just one major office supplies company would sit well with them.
The Justice Department sought to block AT&T from acquiring T-Mobile , even though the latter is ailing and needs the support of a major carrier, and there would still be sufficient competition to negate fears of price increases. It sought to stop American Airlines Group from merging with US Airways because it thought it would "eliminate competition." The antitrust division also blocked H&R Block from acquiring TaxACT, prevented the Nasdaq exchange from buying the NYSE, and inserted itself into Anheuser-Busch InBev's acquisition of Grupo Modelo.
The cigarette industry is facing similar cannibalization of its business like office supplies, and the merger of Lorillard and Reynolds-American is expected to face particularly harsh scrutiny by antitrust regulators, even though Altria remains a potent rival and the deal actually creates a fourth major cigarette player, Imperial Tobacco , through the shedding of assets.
Completely eliminating all major competition in the office supply market just won't pass regulatory muster.
It's not really a crazy notion
Yet Balter's got a point.
Revenues at Staples fell 2% last quarter to $5.2 billion while adjust per-share profits fell 25% year over year. Pro forma sales at Office Depot were also down by a like amount to $3.9 billion, but its adjusted net losses narrowed in the quarter to $0.02 per share from $0.03 in the year ago period.
Balter contends Staples buying Office Depot could save them $1.44 billion and more than double their combined operating profit by 2017, resulting in Staples stock more than doubling to $30 a share.
When the idea was first broached, shares of both companies jumped, with Staples rising 8% and Office Depot climbing 6%, but since then cooler heads have prevailed, no doubt understanding the difficulty of such a combination and their respective stocks have all but given up the gains previously made.
Photo: Flickr user Carl Malamud.
The online avenue, though, is where much of the future lies. Staples, which has the second largest web presence behind Amazon in terms of SKUs and now sells some 500,000 items online compared to the 100,000 a year ago, saw sales growth of 8% last quarter as it launched its Buy Online, Pick Up in Store initiative. It's also branched out beyond just your typical pens, paper clips, and reams of paper. Now it's selling stuff more akin to an MRO operation like W.W. Grainger or Fastenal .
Office Depot also saw increases in online sales domestically, though in international markets it has been down.
Go directly to the heart of the matter
The growth of the direct channel is leading to a decline in the physical one. Staples will be shutting as many as 225 stores in North America by the end of the year, or 12% of its total footprint, to save $500 million dollars. It closed just 42 stores in all of 2013. Office Depot anticipates closing at least 400 stores through 2016 as it integrates the two operations, or one-fifth of the 1,876 stores it had open at the end of June.
It's clear a merger ought to happen, as it would strengthen both businesses. It's not a situation like the union of Sears and Kmart, two failing businesses that came together to make one giant sickly company. When management failed to invest in the company, consumers had plenty of options to turn to.
A Staples/Office Depot merger would succeed because the market just can't support two office supplies stores. Bringing them together would stabilize them. It's hard to believe though that regulators would see that as a viable option.
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The article Wall Street's Crazy Idea for Staples and Office Depot originally appeared on Fool.com.
Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com and Staples. 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.
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The Justice Department sought to block AT&T from acquiring T-Mobile , even though the latter is ailing and needs the support of a major carrier, and there would still be sufficient competition to negate fears of price increases. Pro forma sales at Office Depot were also down by a like amount to $3.9 billion, but its adjusted net losses narrowed in the quarter to $0.02 per share from $0.03 in the year ago period. When the idea was first broached, shares of both companies jumped, with Staples rising 8% and Office Depot climbing 6%, but since then cooler heads have prevailed, no doubt understanding the difficulty of such a combination and their respective stocks have all but given up the gains previously made.
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Last month Credit Suisse analyst Gary Balter suggested office supplies retailer Staples should merge with Office Depot ( ODP ) because of increased online competition, sending shares of both companies soaring. Revenues at Staples fell 2% last quarter to $5.2 billion while adjust per-share profits fell 25% year over year. Balter contends Staples buying Office Depot could save them $1.44 billion and more than double their combined operating profit by 2017, resulting in Staples stock more than doubling to $30 a share.
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Last month Credit Suisse analyst Gary Balter suggested office supplies retailer Staples should merge with Office Depot ( ODP ) because of increased online competition, sending shares of both companies soaring. It's not your daddy's office supply market anymore But Balter notes that today there's a lot more online competition with rivals like Amazon.com stealing market share from the bricks and mortar stores, and he believes the FTC's approval of Office Depot's acquisition of OfficeMax -- the necessary outcome of having prevented Staples from winnowing the field before -- suggests it would also sign off on the two remaining office supplies giants joining together. Balter contends Staples buying Office Depot could save them $1.44 billion and more than double their combined operating profit by 2017, resulting in Staples stock more than doubling to $30 a share.
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A Staples/Office Depot merger would succeed because the market just can't support two office supplies stores. To see our free report on these stocks, just click here . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8567.0
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2014-09-30 00:00:00 UTC
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United Airlines Is Not the Same as Delta and American
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AAL
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https://www.nasdaq.com/articles/united-airlines-not-same-delta-and-american-2014-09-30
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nan
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nan
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The top three airlines in the U.S. all produce about $40 billion in annual revenue. Yet investors have put much higher price tags on shares of Delta Air Lines and American Airlines than those of United Continental Holdings .
Bulls see United Continental's lower valuation as an opportunity. While United has lower margins than Delta and American, many analysts see the three as being essentially alike. Thus, it should be a straightforward task for United to catch up to Delta and American.
Airline YTD Stock Performance, data by YCharts .
United's better than expected second-quarter earnings report provided much of the impetus for this lift. The company posted a 51% jump in adjusted earnings per share last quarter, and also issued a solid forecast for the third quarter.
This was a big achievement, considering that United's profit margin has regularly lagged those of Delta and American by 5-6 percentage points recently. Just a few months earlier, United reported a massive first-quarter loss. The big second-quarter improvement led many analysts to conclude that United had finally turned the corner and was on its way to eventual parity with Delta and American.
If United was really a near-replica of Delta and American, it might be relatively easy for it to close its margin deficit. However, there are several important structural differences between United and the other two network carriers.
Focus on international flights
One key difference is United's exposure to international routes. In the second quarter, United generated slightly more than 40% of its $9 billion in passenger revenue from its international routes . By contrast, international flights accounted for just 33% of passenger revenue at Delta and slightly less than 30% for American Airlines .
American Airlines is less exposed to international markets than United. Photo: American Airlines.
The recent surge in airline profitability has been driven primarily by consolidation in the U.S. airline industry, which has led to tighter capacity discipline among the largest carriers. The international market is much more competitive, though -- especially in Asia, where United has much more capacity than Delta or American.
In Asia, United's profitability has been hurt by the rapid growth of various airlines -- especially Chinese carriers -- that aim to find a foothold in the strategically valuable U.S. market. With many of its routes contested by competitors whose primary goal is market share, not short-term profit, it's no wonder that United's profit margin lags those of its rivals.
Competition everywhere
Another point of differentiation is the competition the airlines face in their top hub markets. Delta absolutely dominates air travel in its top three hub markets: Atlanta, Detroit, and Minneapolis-St. Paul. The same is true for American Airlines in markets such as Dallas-Fort Worth, Charlotte, N.C., Philadelphia, and Miami .
By contrast, United has much greater competition in most of its hubs. For example, its largest market in terms of daily departures is Chicago, where it competes with a sizable American Airlines hub and Southwest Airlines ' largest focus city. It also faces stiff competition in New York, Los Angeles, Washington, D.C., and Denver.
Several United hubs face significant competition from Southwest Airlines. Photo: The Motley Fool.
The only markets where United has a clear leadership position are Houston and San Francisco. Even there, its dominance does not approach that of Delta and American in their top hubs. Additionally, United's market share in those cities is gradually eroding due to the growth of Southwest and Virgin America, respectively.
United's lower market share in its hub markets stems from its strategic choice to locate its hubs in the top business travel markets. The goal is to gain a competitive advantage in bidding for corporate contracts. So far, that benefit has been outweighed by the higher level of competition in each individual market.
Small hubs
In addition, United also has smaller hubs than Delta and American. Last year, in Houston and Chicago -- its largest hub markets -- United and its two largest regional carriers together boarded about 15.5 million and 12.3 million passengers, respectively.
Delta boarded more than 36 million passengers in Atlanta last year. Photo: The Motley Fool.
By contrast, Delta and its top regional carrier boarded more than 36 million passengers in Atlanta last year. Meanwhile, American Airlines and its main regional affiliate boarded 23.5 million passengers in Dallas.
This situation means that United on average offers fewer flights on smaller airplanes. Fewer flights means less convenience for passengers, which could impact revenue. Smaller airplanes have higher unit costs. The result is a less profitable operation.
Tying it all together
Here, I have highlighted three major structural differences between United Continental and its two main competitors: Delta Air Lines and American Airlines. First, United has a much higher exposure to international flights. Second, United has a lower market share in its hub markets. Third, United's hubs are smaller in terms of absolute passenger counts.
These factors reflect a key difference in strategy between United and its peers. United tries to compete in the top markets for business travel regardless of whether it can dominate them. By contrast, Delta and American each dominate a few cities where they drive lots of connecting traffic through their hubs.
United's smaller hubs and its higher exposure to international flights mean that it relies more on origin and destination traffic (rather than connecting traffic) than its peers. This is a double-edged sword.
On the one hand, origin and destination traffic tends to generate higher fares than connecting traffic. On the other hand, since United focuses its capacity on strategically important cities, it faces significant competition for origin and destination passengers. This means United is more likely to be drawn into pricing battles in order to fill empty seats.
Looking ahead
United's track record over the last few years suggests severe execution problems, a flawed strategy, or both. While execution issues have certainly cropped up, there may be more to United's problems than a few easy-to-correct mistakes.
Delta and American benefit from large captive markets in their top hubs. In order to match their financial results, United must be the preferred carrier in its hub markets, where it almost always faces at least one significant competitor.
However, United has consistently found itself near the bottom of the airline industry in customer service ratings for the past two to three years. This is preventing United from being the preferred carrier in its hub markets. Either United needs to rise to the top in customer service rankings -- and stay there -- or its margins will continue to trail those of the competition for the foreseeable future.
The article United Airlines Is Not the Same as Delta and American originally appeared on Fool.com.
Adam Levine-Weinberg is short shares of United Continental 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 - 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.
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The big second-quarter improvement led many analysts to conclude that United had finally turned the corner and was on its way to eventual parity with Delta and American. In Asia, United's profitability has been hurt by the rapid growth of various airlines -- especially Chinese carriers -- that aim to find a foothold in the strategically valuable U.S. market. Tying it all together Here, I have highlighted three major structural differences between United Continental and its two main competitors: Delta Air Lines and American Airlines.
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Last year, in Houston and Chicago -- its largest hub markets -- United and its two largest regional carriers together boarded about 15.5 million and 12.3 million passengers, respectively. Tying it all together Here, I have highlighted three major structural differences between United Continental and its two main competitors: Delta Air Lines and American Airlines. On the other hand, since United focuses its capacity on strategically important cities, it faces significant competition for origin and destination passengers.
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The international market is much more competitive, though -- especially in Asia, where United has much more capacity than Delta or American. United's lower market share in its hub markets stems from its strategic choice to locate its hubs in the top business travel markets. Small hubs In addition, United also has smaller hubs than Delta and American.
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The international market is much more competitive, though -- especially in Asia, where United has much more capacity than Delta or American. Competition everywhere Another point of differentiation is the competition the airlines face in their top hub markets. Second, United has a lower market share in its hub markets.
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8568.0
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2014-09-22 00:00:00 UTC
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AAL Makes Notable Cross Below Critical Moving Average
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AAL
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https://www.nasdaq.com/articles/aal-makes-notable-cross-below-critical-moving-average-2014-09-22
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nan
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nan
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In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $36.41, changing hands as low as $35.85 per share. American Airlines Group Inc shares are currently trading down about 1.7% on the day. The chart below shows the one year performance of AAL shares, versus its 200 day moving average:
Looking at the chart above, AAL's low point in its 52 week range is $23.45 per share, with $44.88 as the 52 week high point - that compares with a last trade of $35.98.
According to the ETF Finder at ETF Channel, AAL makes up 3.07% of the PowerShares DWA Consumer Cyclicals Momentum Portfolio ETF (Symbol: PEZ) which is trading lower by about 2.1% on the day Monday.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
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.
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In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $36.41, changing hands as low as $35.85 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $23.45 per share, with $44.88 as the 52 week high point - that compares with a last trade of $35.98. According to the ETF Finder at ETF Channel, AAL makes up 3.07% of the PowerShares DWA Consumer Cyclicals Momentum Portfolio ETF (Symbol: PEZ) which is trading lower by about 2.1% on the day Monday.
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In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $36.41, changing hands as low as $35.85 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $23.45 per share, with $44.88 as the 52 week high point - that compares with a last trade of $35.98. According to the ETF Finder at ETF Channel, AAL makes up 3.07% of the PowerShares DWA Consumer Cyclicals Momentum Portfolio ETF (Symbol: PEZ) which is trading lower by about 2.1% on the day Monday.
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In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $36.41, changing hands as low as $35.85 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $23.45 per share, with $44.88 as the 52 week high point - that compares with a last trade of $35.98. According to the ETF Finder at ETF Channel, AAL makes up 3.07% of the PowerShares DWA Consumer Cyclicals Momentum Portfolio ETF (Symbol: PEZ) which is trading lower by about 2.1% on the day Monday.
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In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $36.41, changing hands as low as $35.85 per share. According to the ETF Finder at ETF Channel, AAL makes up 3.07% of the PowerShares DWA Consumer Cyclicals Momentum Portfolio ETF (Symbol: PEZ) which is trading lower by about 2.1% on the day Monday. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $23.45 per share, with $44.88 as the 52 week high point - that compares with a last trade of $35.98.
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8569.0
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2014-09-20 00:00:00 UTC
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Tablets in the Air: Another Airline Goes Paperless
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AAL
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https://www.nasdaq.com/articles/tablets-air-another-airline-goes-paperless-2014-09-20
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nan
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nan
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Technology is changing entire industries and the airline industry is no exception. With a recent move from American Airlines Group , the world's largest airline is poised to join a broader industry trend toward using technology for cost savings.
The manual approach
A few days ago, American Airlines announced that it would replace the manuals carried by its flight attendants with Samsung tablets. While it may seem buying an airline's supply of tablets would mean more costs, the airline expects to save nearly $1 million annually.
These cost savings are expected to come from a reduction in printing costs saving $300,000 and lower fuel consumption for a $650,000 savings. The fuel savings make sense since these lightweight tablets will be replacing manuals weighing nearly five pounds.
But flight attendants are not the only ones seeing paper being replaced with modern technology. American Airlines has already replaced its pilots' 35 pound flight bags with 1.2 pound Apple iPads in another bid to cut costs. Air Canada has also chosen iPad replacements for manuals and Delta Air Lines has done likewise, although it chose Microsoft Surface 2 tablets.
Technology for rent and savings
Air Canada Rouge offers streaming on several types of devices. source: Air Canada Rouge
Finding other uses for tablets is already providing a new source of revenue for Air Canada's low cost subsidiary, Air Canada Rouge. For on-board entertainment, passengers are encouraged to bring their own mobile devices and stream video and movies provided by the airline. But since not all passengers have or bring a mobile device, Air Canada Rouge rents iPads for $10 per flight.
But this move by Air Canada Rouge is part of a larger trend. Similar moves have been made at the discount subsidiaries of Singapore Airlines and Qantas Airways . Not only does this strategy boost ancillary revenue for airlines but it puts the planes on a diet as well.
While iPads do add some additional weight, far more is saved by removing the seat back entertainment systems which can sometimes top 13 pounds each. For aircraft with hundreds of seats, these weight savings can really add up and mean fuel use reduction or the ability to take on more cargo.
A personalized experience
Going forward, there is a lot more airlines could do with mobile technology. Besides providing passengers with entertainment, having mobile access to passenger data could help personalize passenger experiences.
Airlines have been focused on generating ancillary revenues from extras such as food and upgrade sales but efforts to sell these products have been broadly targeted. By collecting data on which passengers purchased which extras in the past, airlines will be better able to target the flyers most likely to purchase these extras.
The bottom line
Airlines are realizing the benefits of technology through both cost reduction and new sources of revenue. But unlike so many other situations where airlines make more money, passengers actually come out ahead here since mobile devices are superior to most seat back entertainment systems and airlines will have a better idea for what individuals passengers want to buy.
Over the next few years, expect to see mobile devices play a greater role in your flight experience and make sure to find out if bringing your mobile device will provide you with access to free streaming content.
The real winner is behind the Apple Watch (warning, it may shock you)
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 has nearly unlimited room to run for early in-the-know investors. To be one of them, and see where the real money is to be made, just click here !
The article Tablets in the Air: Another Airline Goes Paperless originally appeared on Fool.com.
Alexander MacLennan owns shares of Air Canada, AMERICAN AIRLINES GROUP INC, and Delta Air Lines. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC. 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.
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For on-board entertainment, passengers are encouraged to bring their own mobile devices and stream video and movies provided by the airline. While iPads do add some additional weight, far more is saved by removing the seat back entertainment systems which can sometimes top 13 pounds each. Airlines have been focused on generating ancillary revenues from extras such as food and upgrade sales but efforts to sell these products have been broadly targeted.
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source: Air Canada Rouge Finding other uses for tablets is already providing a new source of revenue for Air Canada's low cost subsidiary, Air Canada Rouge. But since not all passengers have or bring a mobile device, Air Canada Rouge rents iPads for $10 per flight. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC.
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source: Air Canada Rouge Finding other uses for tablets is already providing a new source of revenue for Air Canada's low cost subsidiary, Air Canada Rouge. But unlike so many other situations where airlines make more money, passengers actually come out ahead here since mobile devices are superior to most seat back entertainment systems and airlines will have a better idea for what individuals passengers want to buy. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC.
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With a recent move from American Airlines Group , the world's largest airline is poised to join a broader industry trend toward using technology for cost savings. Air Canada has also chosen iPad replacements for manuals and Delta Air Lines has done likewise, although it chose Microsoft Surface 2 tablets. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8570.0
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2014-09-20 00:00:00 UTC
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Is JetBlue Airways Being Too Nice to Its Passengers?
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AAL
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https://www.nasdaq.com/articles/jetblue-airways-being-too-nice-its-passengers-2014-09-20
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nan
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nan
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With more fees and cramped planes, airlines are frequently maligned for providing an unpleasant experience for passengers. Now, analysts are pressuring JetBlue Airways to change key policies to increase profits at the expense of the customer experience.
Wall Street vs. David Barger
For most companies, the actions by Wall Street over the past few months would be cause for celebration. Price targets have been raised by several analysts as they turn more bullish on JetBlue.
So why is this a problem for JetBlue? Unlike most analyst upgrades, these ones come on analyst hopes that serious changes will be made at JetBlue. Specifically, analysts have been bullish because they expect that current JetBlue Airways CEO David Barger will depart next year and be replaced by someone with a greater emphasis on shareholder returns.
While Barger certainly has nothing against shareholder returns, he has led JetBlue as a more customer-friendly airline and has even avoided charging a first checked bag fee. But analysts are hoping that JetBlue can increase profits by instituting new, less customer-friendly policies and use the proceeds to do things like buy back shares and initiate a dividend.
Why now?
JetBlue's policies are fairly unique in the airline industry, but they have been in place for a long time and are a core part of the airline itself. However, these policies are now being threatened by a perfect storm.
For most the deregulated airline industry's history, posting profits has been good enough for investors, but a new wave of airline profitability has raised the bar for airline investment. Resulting from better capacity management, a series of mergers, and increasing travel demand, record profits are now being posted at major carriers and airline shareholders are finally outperforming the market.
This has left airlines with cash flows beyond what are needed to fund operations, leading to the reinstatement of dividends at American Airlines Group , which last paid a dividend in 1980, and Delta Air Lines , which had suspended its dividend in 2003 before entering bankruptcy two years later.
Share buybacks have also taken off with a $2 billion buyback under way at Delta Air Lines and $1 billion buybacks recently announced by American Airlines Group and United Continental Holdings .
At the same time, Wall Street is well aware of a major source of these profits: airline fees. Checked bag fees at U.S. carriers brought in an extra $3.35 billion in revenue in 2013 alone. Besides the fees, airlines are creating higher density layouts to be able to sell more seats per flight allowing them to boost revenue while reducing cost per available seat mile.
Now it's no surprise that profit seeking analysts want JetBlue to post similar returns. Over the past five years, JetBlue's stock has underperformed shares of the other major airlines, and JetBlue also is yet to initiate a dividend or stock buyback program.
These analysts see JetBlue's road to big profits, and hence shareholder returns, as being done through the same methods that have made other major carriers as profitable as they are today. Among the things they cite as ways to build shareholder value are increasing seat density and launching a first checked bag fee.
Who will JetBlue follow?
JetBlue has built its brand around being an alternative airline largely for passengers sick of flying other carriers. But JetBlue is now being faced with tough calls from Wall Street to ditch its flyer-friendly strategy for one more focused on profit generation.
So far, JetBlue is trying to have as much of both sides as possible. Next year, the airline is expected to create fare families that will have different features at different levels. Although it has yet to be confirmed by JetBlue itself, some analysts expect a first checked bag fee to be included in the changes.
But JetBlue and its CEO are not willing to turn the airline into another legacy carrier just yet. As the storm of profit-seeking analysts has descended upon JetBlue, Businessweek reports that Barger is firing back, saying, "You want to compare my track record to bankruptcies and layoffs?" in reference to the bankruptcies seen among legacy airlines.
Barger also continues to argue for the benefits of JetBlue's position as neither a budget airline nor a giant carrier, signaling support for the airline's current place in the market.
But if Barger leaves the CEO position next year, the future of JetBlue's policies will be up in the air. In an August article, Businessweek noted that Barger says the board is still in favor of building the JetBlue franchise. However, if more pressure is brought to bear by Wall Street, some members of the board may seek to implement more of the analysts' suggestions.
Of course there is also always the possibility of an activist investor moving in or even a full takeover of the airline. The argument that JetBlue could post much greater profits with a few policy changes would be enticing for activist investors. Additionally, JetBlue would be a reasonable size for a takeover and has been the subject of takeover rumors for years.
Going forward with JetBlue
Analysts may be annoying to JetBlue's management, but not because of negative opinions on the stock. In fact, analysts are upgrading the stock, but it comes with the catch that they expect the airline to change much of how it operates.
It's true that JetBlue's stock has underperformed shares of major carriers over the past five years, but it's unclear what taking on legacy carrier policies would do to future ticket sales. Over the next several months, JetBlue management and shareholders will have to decide what's more important: the potential for greater profits from implementing legacy carrier style policies or the customer-friendly brand image that separates JetBlue from its larger rivals.
Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
The article Is JetBlue Airways Being Too Nice to Its Passengers? originally appeared on Fool.com.
Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC and Delta Air Lines. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC. 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.
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Specifically, analysts have been bullish because they expect that current JetBlue Airways CEO David Barger will depart next year and be replaced by someone with a greater emphasis on shareholder returns. Resulting from better capacity management, a series of mergers, and increasing travel demand, record profits are now being posted at major carriers and airline shareholders are finally outperforming the market. As the storm of profit-seeking analysts has descended upon JetBlue, Businessweek reports that Barger is firing back, saying, "You want to compare my track record to bankruptcies and layoffs?"
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Share buybacks have also taken off with a $2 billion buyback under way at Delta Air Lines and $1 billion buybacks recently announced by American Airlines Group and United Continental Holdings . Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC and Delta Air Lines. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC.
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Over the past five years, JetBlue's stock has underperformed shares of the other major airlines, and JetBlue also is yet to initiate a dividend or stock buyback program. Over the next several months, JetBlue management and shareholders will have to decide what's more important: the potential for greater profits from implementing legacy carrier style policies or the customer-friendly brand image that separates JetBlue from its larger rivals. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC.
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Specifically, analysts have been bullish because they expect that current JetBlue Airways CEO David Barger will depart next year and be replaced by someone with a greater emphasis on shareholder returns. This has left airlines with cash flows beyond what are needed to fund operations, leading to the reinstatement of dividends at American Airlines Group , which last paid a dividend in 1980, and Delta Air Lines , which had suspended its dividend in 2003 before entering bankruptcy two years later. The Motley Fool has no position in any of the stocks mentioned.
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8571.0
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2014-09-19 00:00:00 UTC
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Delta Air Lines to Expand Los Angeles Hub with New Flights - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-to-expand-los-angeles-hub-with-new-flights-analyst-blog-2014-09-19
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nan
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nan
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Delta Air Line Inc. 's ( DAL ) is set to further enhance its presence in Los Angeles with the expected launch of twice daily flights to San Antonio, TX on Apr 7, 2015, in addition to its Dallas service slated to start this fall.
There will be four Dallas-bound flights per day connecting Fort Worth International Airport and Los Angeles International Airport (LAX) from Nov 2, 2014. Further, a third daily Delta service between Los Angeles and Austin is scheduled to start from the same date.
According to the company, the new routes will enhance passenger access to Delta's trans-Pacific routes through Los Angeles. All flights will be operated by Delta's affiliate carrier Compass Airlines and will use Embraer SA's ( ERJ ) E-175 aircraft.
Los Angeles is a key market for Delta which has significantly expanded its network from LAX by adding services to Boise, Idaho, El Salvador apart from expanding its year-round service in Boston.
The Atlanta-based company is also expected to start service between LAX and Monterrey, Mexico from November. The premier carrier is slated to expand its trans-Atlantic network in Oct 2014 by adding a service between LAX and London's Heathrow airport as part of its joint venture partnership with Virgin Atlantic Airways.
Delta presently operates 140 peak day departures from LAX and connects 47 different destinations. However, the carrier faces stiff competition from traditional rivals like American Airlines Group Inc. ( AAL ) and United Continental Holdings Inc. ( UAL ), who are building Los Angeles as a hub expanding operations therein. Virgin America and Southwest Airlines are also scheduled to launch a service between Dallas and LAX from Oct 2014.
To combat rivalry, the carrier has invested $229 million in expansion and enhancement of Terminal 5 at LAX. The third largest passenger airline in the U.S. also plans to double the size of screening checkpoints and ticketing lobby to augment customer experience.
We believe although the new routes will boost traffic for Delta between these two important markets, operating a smaller aircraft as compared to its peers who offer service on larger mainline jets, can act as a potential impediment to growth.
Delta currently carries a Zacks Rank #3 (Hold).
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EMBRAER AIR-ADR (ERJ): 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.
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However, the carrier faces stiff competition from traditional rivals like American Airlines Group Inc. ( AAL ) and United Continental Holdings Inc. ( UAL ), who are building Los Angeles as a hub expanding operations therein. Click to get this free report EMBRAER AIR-ADR (ERJ): 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. Delta Air Line Inc. 's ( DAL ) is set to further enhance its presence in Los Angeles with the expected launch of twice daily flights to San Antonio, TX on Apr 7, 2015, in addition to its Dallas service slated to start this fall.
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Click to get this free report EMBRAER AIR-ADR (ERJ): 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. However, the carrier faces stiff competition from traditional rivals like American Airlines Group Inc. ( AAL ) and United Continental Holdings Inc. ( UAL ), who are building Los Angeles as a hub expanding operations therein. There will be four Dallas-bound flights per day connecting Fort Worth International Airport and Los Angeles International Airport (LAX) from Nov 2, 2014.
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Click to get this free report EMBRAER AIR-ADR (ERJ): 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. However, the carrier faces stiff competition from traditional rivals like American Airlines Group Inc. ( AAL ) and United Continental Holdings Inc. ( UAL ), who are building Los Angeles as a hub expanding operations therein. Delta Air Line Inc. 's ( DAL ) is set to further enhance its presence in Los Angeles with the expected launch of twice daily flights to San Antonio, TX on Apr 7, 2015, in addition to its Dallas service slated to start this fall.
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However, the carrier faces stiff competition from traditional rivals like American Airlines Group Inc. ( AAL ) and United Continental Holdings Inc. ( UAL ), who are building Los Angeles as a hub expanding operations therein. Click to get this free report EMBRAER AIR-ADR (ERJ): 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. Further, a third daily Delta service between Los Angeles and Austin is scheduled to start from the same date.
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8572.0
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2014-09-18 00:00:00 UTC
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Notable ETF Inflow Detected - VXF, AAL, LVS, ILMN
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AAL
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-vxf-aal-lvs-ilmn-2014-09-18
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nan
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nan
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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 $243.5 million dollar inflow -- that's a 6.8% increase week over week in outstanding units (from 41,432,511 to 44,234,228). Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.7%, Las Vegas Sands Corp (Symbol: LVS) is up about 2.2%, and Illumina Inc (Symbol: ILMN) is higher by about 0.1%. 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 $74.62 per share, with $88.99 as the 52 week high point - that compares with a last trade of $87.13. 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.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.7%, Las Vegas Sands Corp (Symbol: LVS) is up about 2.2%, and Illumina Inc (Symbol: ILMN) is higher by about 0.1%. 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 $74.62 per share, with $88.99 as the 52 week high point - that compares with a last trade of $87.13. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.7%, Las Vegas Sands Corp (Symbol: LVS) is up about 2.2%, and Illumina Inc (Symbol: ILMN) is higher by about 0.1%. 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 $74.62 per share, with $88.99 as the 52 week high point - that compares with a last trade of $87.13. 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.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.7%, Las Vegas Sands Corp (Symbol: LVS) is up about 2.2%, and Illumina Inc (Symbol: ILMN) is higher by about 0.1%. 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 $243.5 million dollar inflow -- that's a 6.8% increase week over week in outstanding units (from 41,432,511 to 44,234,228). 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 $74.62 per share, with $88.99 as the 52 week high point - that compares with a last trade of $87.13.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.7%, Las Vegas Sands Corp (Symbol: LVS) is up about 2.2%, and Illumina Inc (Symbol: ILMN) is higher by about 0.1%. 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 $243.5 million dollar inflow -- that's a 6.8% increase week over week in outstanding units (from 41,432,511 to 44,234,228). 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 $74.62 per share, with $88.99 as the 52 week high point - that compares with a last trade of $87.13.
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8573.0
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2014-09-17 00:00:00 UTC
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5 Reasons to Buy the Dip in Airline Stocks
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AAL
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https://www.nasdaq.com/articles/5-reasons-buy-dip-airline-stocks-2014-09-17
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nan
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nan
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Since earlier this summer, shares of Delta Air Lines and American Airlines Group are down 7% and 17%, respectively, from their highs. But there are several reasons that this dip is actually an excellent buying opportunity for value investors.
Lower oil prices
Airline stocks were on a steady flight upward through early 2014, but their ascent was halted in early June as oil prices spiked. Because of supply concerns stemming from geopolitical concerns, Brent crude topped $112 a barrel, and West Texas Intermediate Crude topped $105 a barrel.
This oil price spike marked the record high for Delta Air Lines stock and put a ceiling on American Airlines Group stock that kept it from topping $45 per share.
But while these airline stocks fell and have yet to recover, oil has fallen well below its pre-spike heights. Thanks to rising supplies, lagging demand, and a rise in the U.S. dollar, oil prices are now well below where they started the year, with Brent crude now at $98 a barrel, and West Texas Intermediate crude at $92 a barrel.
While investors sold off these airlines over fuel cost concerns, they have yet to buy back in now that fuel costs are not only below the pre-spike price, but below the beginning of the year price.
Overblown traffic results concerns
Admittedly, traffic numbers from airlines have not been great, but they're far from terrible. August PRASM numbers from Delta Air Lines came in with a 2% gain -- compared to a guided 2% to 3% gain -- but Delta noted the results were affected negatively by "events in Russia, the Middle East and Africa." August traffic numbers from American Airlines Group came in with flat revenue passenger mile numbers and a slight slip in load factor.
Delta's September PRASM guidance was reduced from a 2-4% gain to a 2-3% gain. However, Delta's and American's margin guidance remains strong, and at least part of these traffic results came from geopolitical issues that airlines may be able to work around in the near future.
Even lower valuations
The airline rally through 2013 and early 2014 came largely from investors recognizing the lower valuations of airline stocks and beginning to move them toward a more reasonable valuation. But even at their peaks, Delta Air Lines traded at only 12 times FY2015 earnings, and American Airlines Group traded at only 8 times FY2015 earnings.
Not only do the lower stock prices make the shares cheaper compared to these June estimates, but the estimates themselves have risen as well, with American's FY2015 estimates increasing 12% since June, and Delta's FY2015 estimates increasing 8% since June.
In a market many investors consider overvalued, shares of Delta Air Lines, American Airlines Group, and most other airlines trade well below the market average. If airline valuations can move closer to the market average, value investors could be rewarded by choosing airline stocks.
Dividends and buybacks
While it's important airlines don't get too far ahead of themselves when it comes to returning cash to shareholders, today's levels of dividends and buybacks achieve shareholder value objectives without threatening the financial stability of these carriers.
Last year, Delta Air Lines launched a $500 million stock buyback and a $0.06 per quarter dividend, becoming the first major legacy airline to reinstate these policies. But the capital return plan was given a boost this year when the buyback was increased to $2 billion and the dividend raised to $0.09 per quarter.
American Airlines Group also announced a $1 billion stock buyback coupled with a $0.10 per quarter dividend, marking the first time American Airlines has paid a dividend since 1980.
With airline stocks trading at such low valuations, these buybacks could go a long way to increasing earnings per share. In fact, the recent dip in airline stocks may serve to benefit shareholders in the long run since the lower current share prices allow airlines to buy back more shares for the same price.
Although the dividends from Delta and American Airlines are not nearly enough to make these companies into income stocks, they do serve a purpose besides the amount actually paid to shareholders. By paying a dividend, shares of these airlines can now be purchased by dividend-only funds, and by investors with a strategy of only purchasing dividend-paying stocks. While this type of buying in is wearing off for Delta, the more recent dividend reinstatement from American Airlines could bring more big money investors to the stock.
Analysts and big money are still on board
Even as these airline stocks have dipped and the traffic reports have scared off some investors, analyst earnings estimates for FY2015 have risen for all four major airlines. Target prices have also increased for Delta Air Lines, and barely slipped for American Airlines Group.
Institutional investors are also getting on board with net buyers during the last three months for both Delta Air Lines and American Airlines Group. While you should not blindly follow analysts and big money investors, having them remain bullish is still a positive for the stock.
Flight sale
Delta Air Lines and American Airlines Group appear to be attractive buys after a slide in their respective stock prices. While airlines still carry above-average risks, there are several reasons to be bullish on airline stocks after this dip. Risk-tolerant investors should consider whether these companies fit with their overall investment strategy.
You can't afford to miss this
"Made in China" -- an all too familiar phrase. But not for much longer: There's a radical new technology out there, one that's already being employed by the U.S. Air Force, BMW and even Nike. Respected publications like The Economist have compared this disruptive invention to the steam engine and the printing press; Business Insider calls it "the next trillion dollar industry." Watch The Motley Fool's shocking video presentation to learn about the next great wave of technological innovation, one that will bring an end to "Made In China" for good. Click here !
The article 5 Reasons to Buy the Dip in Airline Stocks originally appeared on Fool.com.
Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC and Delta Air Lines. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC. 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.
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Flight sale Delta Air Lines and American Airlines Group appear to be attractive buys after a slide in their respective stock prices. Respected publications like The Economist have compared this disruptive invention to the steam engine and the printing press; Business Insider calls it "the next trillion dollar industry." Watch The Motley Fool's shocking video presentation to learn about the next great wave of technological innovation, one that will bring an end to "Made In China" for good.
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Because of supply concerns stemming from geopolitical concerns, Brent crude topped $112 a barrel, and West Texas Intermediate Crude topped $105 a barrel. Not only do the lower stock prices make the shares cheaper compared to these June estimates, but the estimates themselves have risen as well, with American's FY2015 estimates increasing 12% since June, and Delta's FY2015 estimates increasing 8% since June. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC.
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This oil price spike marked the record high for Delta Air Lines stock and put a ceiling on American Airlines Group stock that kept it from topping $45 per share. In a market many investors consider overvalued, shares of Delta Air Lines, American Airlines Group, and most other airlines trade well below the market average. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC.
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This oil price spike marked the record high for Delta Air Lines stock and put a ceiling on American Airlines Group stock that kept it from topping $45 per share. With airline stocks trading at such low valuations, these buybacks could go a long way to increasing earnings per share. In fact, the recent dip in airline stocks may serve to benefit shareholders in the long run since the lower current share prices allow airlines to buy back more shares for the same price.
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8574.0
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2014-09-16 00:00:00 UTC
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Why United Continental Holdings Inc. Stock Has Skyrocketed 33% in 2014
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AAL
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https://www.nasdaq.com/articles/why-united-continental-holdings-inc-stock-has-skyrocketed-33-2014-2014-09-16
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nan
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nan
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This year has continued the gains in the airline industry with strong performances from American Airlines Group and Delta Air Lines . While United Continental Holdings has not gained as much, it has still added another 33% to the holdings of investors from the beginning of the year.
So how has United Continental grown the fortunes of investors this year and can it continue doing so for investors?
Clear weather lifts all planes
For the past couple years, the airline industry has been booming thanks to growing air travel demand and disciplined capacity management. This has led to record profits and the available funds for things like debt reduction, fleet modernization, and returns of capital to shareholders.
As the story of the airline industry has turned positive, investors have been buying a broad array of airline stocks looking to capture the upside of the industry. Despite United Continental having lower operating margins than its top rivals, investors have pushed the stock higher as these margins improve alongside the healthier industry.
Share buybacks
Delta Air Lines was the first among the major legacy carriers to launch a share buyback. In 2013, the share buyback was launched with a $500 million authorization, but this was expanded to $2 billion this year.
In July, American Airlines Group and United Continental launched share buybacks of their own. While American Airlines' announcement came with a dividend, United Continental's did not, but impressed investors nonetheless.
The airline launched a $1 billion share buyback that is expected to be completed over the next three years. By doing this United signaled to its shareholders that it has confidence in its financial future and that it sees its shares as undervalued.
Additionally, the buyback shows that management is interested in shareholder-friendly initiatives, raising the possibility of a dividend being initiated in the future.
Beating earnings
On Wall Street, earnings reports can make or break an investment. So it should be no surprise that United Continental investors are doing well after the airline beat earnings for the last three reports in a row.
Seeing as United Continental has lagged peers for the past year, these earnings beats give hope to investors that the airline may be catching up to rivals.
Analyst upgrades
As United Continental has posted strong earnings, analysts have turned more positive on the stock. Two such analysts, Julie Yates and Krishna Vege from Credit Suisse , have named United Continental as their top pick, citing undervaluation compared to peers.
It should be noted that many analysts remain bullish on the airline industry as a whole with American Airlines Group and Delta Air Lines also receiving outperform ratings from most analysts.
So United Continental's good position with analysts is not unique, but the airline industry as a whole, United included, has been helped higher by these positive analyst comments.
Outperforming the market, underperforming peers
United Continental shares have been good to investors who have held them this year, but those same investors could have done even better with American Airlines Group or Delta Air Lines shares.
At this point, I prefer and own shares of the latter two companies, but United Continental could appeal to investors willing to assume some more risk and bet on a catch-up to industry averages.
The real winner is behind the Apple Watch (warning, it may shock you)
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 has nearly unlimited room to run for early in-the-know investors. To be one of them, and see where the real money is to be made, just click here !
The article Why United Continental Holdings Inc. Stock Has Skyrocketed 33% in 2014 originally appeared on Fool.com.
Alexander MacLennan owns shares of AMERICAN AIRLINES GROUP INC and Delta Air Lines. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC. 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.
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Clear weather lifts all planes For the past couple years, the airline industry has been booming thanks to growing air travel demand and disciplined capacity management. Seeing as United Continental has lagged peers for the past year, these earnings beats give hope to investors that the airline may be catching up to rivals. Two such analysts, Julie Yates and Krishna Vege from Credit Suisse , have named United Continental as their top pick, citing undervaluation compared to peers.
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This year has continued the gains in the airline industry with strong performances from American Airlines Group and Delta Air Lines . In July, American Airlines Group and United Continental launched share buybacks of their own. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC.
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So United Continental's good position with analysts is not unique, but the airline industry as a whole, United included, has been helped higher by these positive analyst comments. Outperforming the market, underperforming peers United Continental shares have been good to investors who have held them this year, but those same investors could have done even better with American Airlines Group or Delta Air Lines shares. Alexander MacLennan 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 INC, long January 2015 $32 calls on AMERICAN AIRLINES GROUP INC, and long January 2015 $40 calls on AMERICAN AIRLINES GROUP INC.
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This year has continued the gains in the airline industry with strong performances from American Airlines Group and Delta Air Lines . Outperforming the market, underperforming peers United Continental shares have been good to investors who have held them this year, but those same investors could have done even better with American Airlines Group or Delta Air Lines shares. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8575.0
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2014-09-11 00:00:00 UTC
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3 Reasons American Airlines Group Inc.'s Stock Could Rise
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AAL
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https://www.nasdaq.com/articles/3-reasons-american-airlines-group-incs-stock-could-rise-2014-09-11
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nan
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nan
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Shares of American Airlines Group, have soared since the company exited bankruptcy and merged with US Airways in late 2013. Investors are enthusiastic about the new management team (brought over from US Airways) and the potential to generate merger synergies.
American Airlines Post-Merger Price Chart, data by YCharts
So far, the rise in American Airlines' stock price has been matched by strong earnings growth. Like many of its competitors, American Airlines is on pace to produce record earnings this year. Are further gains possible? Here are three reasons why American Airlines stock could have more room to run.
Rapid fuel efficiency gains
Fuel consumption is one area where American Airlines will generate significant savings in the next few years. In 2011, American ordered 460 narrowbody jets to renew its dated domestic fleet. (A few of these orders were eventually converted to options.) The new planes are in some cases 35% more fuel-efficient than the models they are replacing.
American Airlines is also updating its widebody fleet with more fuel-efficient aircraft. Since late 2012, the carrier has added more than a dozen Boeing 777-300ERs -- the largest twin-engine planes in production today -- to its fleet. American will also receive the first of its 42 Boeing 787 Dreamliner orders later this year.
American Airlines is adding lots of new fuel-efficient planes to its fleet. Photo: American Airlines
Adding new, fuel-efficient aircraft will reduce American's costs in the long-run. However, doing so requires massive up-front investments -- the carrier expects to spend about $5 billion per year on capital expenditures for the next few years. Thus, it is also important for American Airlines to make the most of the planes it already has.
American Airlines is doing just that by adding rows to all of its more than 200 Boeing 737-800 aircraft in order to squeeze more seats in. American is also gradually expanding the seating capacity of its Boeing 777-200s from 247 to 289. These projects will reduce unit costs, allowing American Airlines to make more money with lower average fares.
Merger revenue synergies
On the revenue side, American Airlines has a big opportunity to improve results by leveraging the combined strengths of the "old" American Airlines and US Airways. For example, US Airways has historically been very weak in the Midwest and the Great Plains states. However, it has been strong in the Southeast due to its big hub in Charlotte.
By contrast, American has had a strong position in the Midwest and Great Plains states thanks to its hubs in Chicago and Dallas. On the other hand, it has had a small footprint in the Southeast, as its Miami hub is inconvenient for domestic connections.
Merging American and US Airways is creating opportunities to grow based on the combined strengths of the two merger partners. The company has added numerous flights from Charlotte to the Midwest and Great Plains states this year, thus providing new city-pair connections.
The merger with US Airways has created a big revenue synergy opportunity. Photo: American Airlines
Another area where the merger may drive revenue gains is in the New York corporate travel market. US Airways operates the highly profitable "shuttle" routes between New York, Boston, and Washington, D.C. However, it doesn't operate international flights from New York -- its main transatlantic hub is in Philadelphia.
American Airlines does operate transatlantic flights in New York, though. In fact, in conjunction with joint venture partner British Airways, it dominates the New York-London route -- the top international route for U.S. business travelers. Combining the two carriers' strengths in New York will help American gain lucrative corporate market share.
Returning cash to shareholders
The third factor that could send American Airlines shares higher over time is the company's plan to return cash to shareholders. In July, the company announced plans to start a regular dividend for the first time since 1980. American also plans to buy back $1 billion of stock by the end of 2015.
Just as importantly, American is using excess cash to pay down expensive debt. American's heavy capital commitments will limit the amount of cash that it can return to shareholders for the next five years or so. However, by the end of the decade, American could be producing massive free cash flow, allowing it to reward long-term investors with even bigger payouts.
Foolish bottom line
American Airlines clearly made the most of its trip through bankruptcy. Thanks to its merger with US Airways and a favorable industry environment, earnings have already rebounded to record levels. This is allowing American Airlines to return cash to shareholders through its dividend and share repurchase program.
The impact of American's fleet renewal initiative will continue to build during the next several years. The carrier also has numerous opportunities to exploit the combined strengths of the American Airlines and US Airways networks to generate revenue synergies.
That said, there are some potential headwinds ahead. Southwest Airlines is on the verge of a major expansion in Dallas, which is also home to American's largest hub. Increased competition there could put pressure on unit revenue over the next year. Additionally, merger integrations are always risky.
Lastly, American's valuation already incorporates a lot of the potential synergy gains. American Airlines does have plenty of upside for long-term investors. But that upside comes with risk, and it will be quite a while before the company has the means to match the industry leaders in terms of shareholder returns.
Top dividend stocks for the next decade
The smartest investors know that dividend stocks like American Airlines simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now .
The article 3 Reasons American Airlines Group Inc.'s Stock Could Rise 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 - 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.
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The company has added numerous flights from Charlotte to the Midwest and Great Plains states this year, thus providing new city-pair connections. However, by the end of the decade, American could be producing massive free cash flow, allowing it to reward long-term investors with even bigger payouts. The carrier also has numerous opportunities to exploit the combined strengths of the American Airlines and US Airways networks to generate revenue synergies.
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Photo: American Airlines Adding new, fuel-efficient aircraft will reduce American's costs in the long-run. These projects will reduce unit costs, allowing American Airlines to make more money with lower average fares. The company has added numerous flights from Charlotte to the Midwest and Great Plains states this year, thus providing new city-pair connections.
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American Airlines Post-Merger Price Chart, data by YCharts So far, the rise in American Airlines' stock price has been matched by strong earnings growth. Photo: American Airlines Adding new, fuel-efficient aircraft will reduce American's costs in the long-run. Merger revenue synergies On the revenue side, American Airlines has a big opportunity to improve results by leveraging the combined strengths of the "old" American Airlines and US Airways.
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By contrast, American has had a strong position in the Midwest and Great Plains states thanks to its hubs in Chicago and Dallas. The merger with US Airways has created a big revenue synergy opportunity. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8576.0
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2014-09-10 00:00:00 UTC
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Why American Airlines Group Inc. Stock Has Skyrocketed 50% in 2014
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-group-inc-stock-has-skyrocketed-50-2014-2014-09-10
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nan
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nan
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The airline industry has historically had poor returns for investors, but 2014 has been an exception, with American Airlines Group being one of the best performers. But the rise of American Airlines and the industry as a whole has several key reasons behind it.
Making it official
In 2011, American Airlines was a bankrupt airline, with most analysts expecting shareholders to receive nothing. But in 2013, American Airlines announced its plan to merge with US Airways to create the world's largest airline and give old American Airlines shareholders a piece of the pie.
The merger became official last December, when the new airline began trading as American Airlines Group and allowed investors a chance to buy a piece of this newly merged airline.
While it's tough to gauge investor behavior, it is reasonable to expect that many investors who were interested in this new airline combination wanted to wait until the merger became official and shares began trading. Investors who bought shares over time quite likely helped contribute to the share price rally in January, when American Airlines shares rose 34%.
Rising estimates
As analysts digested the full effect of the American Airlines-US Airways merger, earnings estimates for 2014 and 2015 have risen sharply. In December, average estimates for 2014 earnings per share were just over $2.50 per share, but they rose to nearly $3.00 per share by January.
Estimates rose even higher after January, hitting $4.50 per share in February and rising to $5.22 today. Estimates for 2015 also rose from $3.50 per share in January to nearly $6.50 per share today.
As estimates have risen, investors have taken another look at the future earnings power of this airline. Combined with positive notes from analysts that accompanied these estimate increases, many investors have seen value in the airline and driven shares higher.
Dividends and buybacks
American Airlines has been buying back shares for most of 2014, but capital returns got another boost in July, when the airline announced $1 billion in share buybacks and a $0.10-per-quarter dividend. With this announcement, American Airlines joined Delta Air Lines and Southwest Airlines as major airlines paying dividends to their shareholders.
Although shares have performed poorly since the announcement, such an announcement has been expected for much of the year, and it's quite likely that investors have pushed shares higher on this expectation. Furthermore, outside factors may be to blame for this slide, since the announcement came as tensions continued to boil between Russia and Ukraine following the downing of Malaysia Airlines flight 17.
Higher profits
Airline profits are surging across the major carriers, thanks to improving travel demand and more fees and extra services. American Airlines has been a prime example, with current estimates forecasting $3.8 billion in 2014 earnings, compared with last year's $1.95 billion in earnings from American Airlines and US Airways.
Much of this trend can be attributed to disciplined capacity management that has kept fares at higher margin levels, in contrast with past examples of margin-destroying fare wars.
Not only is this profit growth good for justifying a higher current price, but 2014 profit growth also keeps a multi-year trend of airline profit growth alive. The airline bull thesis centers on the argument that, thanks to better management and industry consolidation, the industry will no longer be the competitive cutthroat environment it used to be and will instead see strong profit growth through improved demand and higher margins.
The 2014 profit growth keeps the trend going that saw significant year-over-year profit growth for the past few years, with estimates calling for further increases for 2015 and 2016.
The bottom line
American Airlines has come a long way since its 2011 bankruptcy to become one of the best performing airline stocks of 2014, thanks to rising earnings estimates, higher profits, and the expectation and confirmation of share buybacks and dividends.
The company still has the challenge of bringing together American Airlines and US Airways, with integration issues serving as a risk going forward. However, if management can pull it off with minimal turbulence, American Airlines Group could be set for more gains over the next couple of years.
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The article Why American Airlines Group Inc. Stock Has Skyrocketed 50% in 2014 originally appeared on Fool.com.
Alexander MacLennan owns shares of and has options on American Airlines Group and Delta Air Lines. 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 - 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.
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Combined with positive notes from analysts that accompanied these estimate increases, many investors have seen value in the airline and driven shares higher. Furthermore, outside factors may be to blame for this slide, since the announcement came as tensions continued to boil between Russia and Ukraine following the downing of Malaysia Airlines flight 17. Alexander MacLennan owns shares of and has options on American Airlines Group and Delta Air Lines.
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The merger became official last December, when the new airline began trading as American Airlines Group and allowed investors a chance to buy a piece of this newly merged airline. With this announcement, American Airlines joined Delta Air Lines and Southwest Airlines as major airlines paying dividends to their shareholders. The bottom line American Airlines has come a long way since its 2011 bankruptcy to become one of the best performing airline stocks of 2014, thanks to rising earnings estimates, higher profits, and the expectation and confirmation of share buybacks and dividends.
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But in 2013, American Airlines announced its plan to merge with US Airways to create the world's largest airline and give old American Airlines shareholders a piece of the pie. The merger became official last December, when the new airline began trading as American Airlines Group and allowed investors a chance to buy a piece of this newly merged airline. The bottom line American Airlines has come a long way since its 2011 bankruptcy to become one of the best performing airline stocks of 2014, thanks to rising earnings estimates, higher profits, and the expectation and confirmation of share buybacks and dividends.
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Combined with positive notes from analysts that accompanied these estimate increases, many investors have seen value in the airline and driven shares higher. The bottom line American Airlines has come a long way since its 2011 bankruptcy to become one of the best performing airline stocks of 2014, thanks to rising earnings estimates, higher profits, and the expectation and confirmation of share buybacks and dividends. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8577.0
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2014-09-10 00:00:00 UTC
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VXF, AAL, LVS, LBTYA: Large Outflows Detected at ETF
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AAL
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https://www.nasdaq.com/articles/vxf-aal-lvs-lbtya-large-outflows-detected-etf-2014-09-10
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nan
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nan
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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 $52.3 million dollar outflow -- that's a 1.4% decrease week over week (from 42,031,991 to 41,432,511). Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.5%, Las Vegas Sands Corp (Symbol: LVS) is down about 0.5%, and Liberty Global plc (Symbol: LBTYA) is higher by about 0.2%. 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 $74.28 per share, with $88.99 as the 52 week high point - that compares with a last trade of $86.91. 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.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.5%, Las Vegas Sands Corp (Symbol: LVS) is down about 0.5%, and Liberty Global plc (Symbol: LBTYA) is higher by about 0.2%. 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 $74.28 per share, with $88.99 as the 52 week high point - that compares with a last trade of $86.91. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.5%, Las Vegas Sands Corp (Symbol: LVS) is down about 0.5%, and Liberty Global plc (Symbol: LBTYA) is higher by about 0.2%. 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 $74.28 per share, with $88.99 as the 52 week high point - that compares with a last trade of $86.91. 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).
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.5%, Las Vegas Sands Corp (Symbol: LVS) is down about 0.5%, and Liberty Global plc (Symbol: LBTYA) is higher by about 0.2%. 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 $52.3 million dollar outflow -- that's a 1.4% decrease week over week (from 42,031,991 to 41,432,511). 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 $74.28 per share, with $88.99 as the 52 week high point - that compares with a last trade of $86.91.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.5%, Las Vegas Sands Corp (Symbol: LVS) is down about 0.5%, and Liberty Global plc (Symbol: LBTYA) is higher by about 0.2%. 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 $52.3 million dollar outflow -- that's a 1.4% decrease week over week (from 42,031,991 to 41,432,511). Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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8578.0
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2014-09-10 00:00:00 UTC
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Full Flights Aid Aug Traffic Growth for Southwest Airlines - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/full-flights-aid-aug-traffic-growth-for-southwest-airlines-analyst-blog-2014-09-10
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nan
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nan
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Dallas, TX-based Southwest Airlines Co. ( LUV ) recorded a healthy rise in traffic in Aug 2014. The month's traffic - measured in revenue passenger miles (RPMs) - came in at 9.62 billion, up 4.9% from 9.17 billion recorded in the comparable period a year ago.
Meanwhile, on a year-over-year basis, consolidated capacity (or available seat miles/ASMs) decreased a mere 0.2% to 11.25 billion leading to a load factor of 85.5%, up 420 basis points year over year. PRASM (passenger revenue per available seat miles) went up approximately 5-6% in the reported month.
In the first eight months of 2014, Southwest Airlines generated RPMs of 73 billion (up 3.1% year over year) and ASMs of 88.1 billion (down 0.2%), leading to a load factor of 82.9% (up 260 bps).
Southwest Airlines' August traffic numbers outperformed that of two of its traditional rivals, namely Delta Air Lines, Inc. ( DAL ) and United Continental Holdings, Inc. ( UAL ). While Delta's traffic grew a little over 3%, United Continental reported near-flat results.
2014 is deemed a vital year for Southwest Airlines. After operating for several decades within the U.S. domestic market, Southwest Airlines has finally begun flying into international territory, with flights to the Caribbean. The carrier also expects to complete the integration of its subsidiary AirTran with itself by the end of this year.
Moreover, the slot wins at the LaGuardia (LGA) airport in New York and at Reagan National Airport (DCA) in Washington, D.C., from American Airlines Group Inc. ( AAL ), has widened Southwest Airlines' scope for further expansion in the cities.
Additionally, the carrier will be able to offer several domestic non-stop services in and out of Dallas Love Field as flight restrictions (Wright Amendment) therein will be removed on and from Oct 14.
We believe such expansion initiatives along with the key slot wins will create tailwinds for the company, going forward.
More recently, Southwest Airlines announced a facelift with a fresh modern look for its jets along with a refurbished logo, website and airport counters.
Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy).
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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.
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Moreover, the slot wins at the LaGuardia (LGA) airport in New York and at Reagan National Airport (DCA) in Washington, D.C., from American Airlines Group Inc. ( AAL ), has widened Southwest Airlines' scope for further expansion in the cities. 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. Southwest Airlines' August traffic numbers outperformed that of two of its traditional rivals, namely Delta Air Lines, Inc. ( DAL ) and United Continental Holdings, Inc. ( UAL ).
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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. Moreover, the slot wins at the LaGuardia (LGA) airport in New York and at Reagan National Airport (DCA) in Washington, D.C., from American Airlines Group Inc. ( AAL ), has widened Southwest Airlines' scope for further expansion in the cities. In the first eight months of 2014, Southwest Airlines generated RPMs of 73 billion (up 3.1% year over year) and ASMs of 88.1 billion (down 0.2%), leading to a load factor of 82.9% (up 260 bps).
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Moreover, the slot wins at the LaGuardia (LGA) airport in New York and at Reagan National Airport (DCA) in Washington, D.C., from American Airlines Group Inc. ( AAL ), has widened Southwest Airlines' scope for further expansion in the cities. 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. In the first eight months of 2014, Southwest Airlines generated RPMs of 73 billion (up 3.1% year over year) and ASMs of 88.1 billion (down 0.2%), leading to a load factor of 82.9% (up 260 bps).
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Moreover, the slot wins at the LaGuardia (LGA) airport in New York and at Reagan National Airport (DCA) in Washington, D.C., from American Airlines Group Inc. ( AAL ), has widened Southwest Airlines' scope for further expansion in the cities. 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 month's traffic - measured in revenue passenger miles (RPMs) - came in at 9.62 billion, up 4.9% from 9.17 billion recorded in the comparable period a year ago.
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8579.0
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2014-09-10 00:00:00 UTC
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Airline Stock Roundup: Aug Traffic Results, Southwest Airlines Facelift in News - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-aug-traffic-results-southwest-airlines-facelift-in-news-analyst
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nan
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nan
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Over the past 5 trading days, airline stocks exhibited mixed performance trends. Most of the carriers grossed attention with their August traffic releases. Companies like Delta Air Lines Inc. ( DAL ), United Continental Holdings Inc. ( UAL ) and American Airlines Group ( AAL ) reported subdued results while Alaska Air Group Inc. ( ALK ) witnessed impressive growth. In addition, Southwest Airlines Co . ( LUV ) was also in the headlines over its recently announced facelift.
A Recap of Last Week's Most Important Stories
1. Despite a rise in August traffic figures, Delta Air Lines lost value as it partially reduced its September quarter forecast. The news impacted Delta's stock which closed the day 5.16% lower. The Atlanta-based carrier now expects its September quarter unit revenue growth to be around 2-3%, down from the earlier forecast of 2-4%. (Read more: Delta Aug Traffic Lacks Bite, Stock Dips on Lowered View )
2. Premier carrier United Continental Holdings Inc. reported near-flat traffic figures for the month of Aug 2014. Airline traffic - measured in revenue passenger miles or RPMs, which implies revenue generated per mile per passenger - improved a mere 0.1% year over year to 19.53 billion. Consolidated capacity (or available seat miles/ASMs) for the month was 22.38 billion, up 0.2% from Aug 2013. (Read more: United Continental (UAL) Reports Near-Flat August Traffic )
3. Alaska Air Group reported 6.8% growth in its August traffic on a 7.5% increase in capacity compared to the year-ago period. However, the company reported a drop in its load factor by 50 basis points (bps) to 87.3%.
4. American Airlines also reported its August performance that reflected near-flat traffic. However, total capacity for the month was up 1.1% while load factor came in at 84.6%, down 90 bps.
5. Southwest Airlines announced a fresh modern look for its jets. Apart from all aircraft, the newly launched look will also feature on the Southwest Airlines logo, website and airport ticket counters. (Read more: Southwest Airlines' Facelift: New Heart Echoes Core Values )
Performance
The following table shows the price movements of the major airline companies over the past 5 trading days and during the last 6 months:
Over the trailing 5 trading sessions, airline stocks reflected a mixed trend. Top gainers over the past five days were United Continental and Copa Holdings, with gains of 3.7% and 2.1%, respectively. Biggest losers include GOL Linhas A ( GOL ) and Alaska Air Group with losses of 5% and 3%, respectively.
On the other hand, over the past 6 months, most of the stocks have fared reasonably well except for American Airlines, which dropped 2.3%. The biggest gainers in the 6-month span were GOL Linhas and Southwest Airlines, sporting growth of 53% and 40%, respectively.
What's Next in the Airline Biz?
In the current week, we foresee no significant changes in the airline industry or global economic factors. As a result, we expect stocks to trade in line for the remainder of this week.
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
GOL LINHAS-ADR (GOL): 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
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.
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Companies like Delta Air Lines Inc. ( DAL ), United Continental Holdings Inc. ( UAL ) and American Airlines Group ( AAL ) reported subdued results while Alaska Air Group Inc. ( ALK ) witnessed impressive growth. Click to get this free report SOUTHWEST AIR (LUV): 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 AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Despite a rise in August traffic figures, Delta Air Lines lost value as it partially reduced its September quarter forecast.
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Companies like Delta Air Lines Inc. ( DAL ), United Continental Holdings Inc. ( UAL ) and American Airlines Group ( AAL ) reported subdued results while Alaska Air Group Inc. ( ALK ) witnessed impressive growth. Click to get this free report SOUTHWEST AIR (LUV): 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 AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Premier carrier United Continental Holdings Inc. reported near-flat traffic figures for the month of Aug 2014.
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Companies like Delta Air Lines Inc. ( DAL ), United Continental Holdings Inc. ( UAL ) and American Airlines Group ( AAL ) reported subdued results while Alaska Air Group Inc. ( ALK ) witnessed impressive growth. Click to get this free report SOUTHWEST AIR (LUV): 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 AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. (Read more: Southwest Airlines' Facelift: New Heart Echoes Core Values ) Performance The following table shows the price movements of the major airline companies over the past 5 trading days and during the last 6 months: Over the trailing 5 trading sessions, airline stocks reflected a mixed trend.
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Companies like Delta Air Lines Inc. ( DAL ), United Continental Holdings Inc. ( UAL ) and American Airlines Group ( AAL ) reported subdued results while Alaska Air Group Inc. ( ALK ) witnessed impressive growth. Click to get this free report SOUTHWEST AIR (LUV): 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 AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Over the past 5 trading days, airline stocks exhibited mixed performance trends.
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8580.0
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2014-09-09 00:00:00 UTC
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Southwest Airlines' Facelift: New Heart Echoes Core Values - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-facelift%3A-new-heart-echoes-core-values-analyst-blog-2014-09-09
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nan
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nan
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The year just got a little more special for Southwest Airlines Co. ( LUV ) as the passenger carrier announced a modern new look for its jets, adding to a host of key milestones that the company is expected to witness through 2014.
Apart from all aircraft, the newly launched look will also feature on the Southwest Airlines logo, websites and ticket counters. Termed as the Heart, the new aircraft livery is dedicated to the company's committed force of employees. In an all-new look, the jets will replace the earlier red-bellied design with stripes of red, yellow and blue on the tail and winglets along with a similar coloured large heart on their bellies.
In addition, the Southwest Airlines brand name will switch positions - from the tail of the planes to the middle - and will also sport a new font. According to the carrier, the new logo symbolizes its commitment to its core values as the company progresses in the near future.
This is the first facelift for Southwest Airlines since the carrier added the canyon blue color to the top its jets in 2001 to mark its 30 th birthday. Notably, to minimise the cost impact associated with the makeover, the Dallas-based carrier has decided to phase the rollout of its revamped look.
Southwest Airlines will repaint 60 planes by the end of this year and follow it up with six additional ones every month. The carrier estimates 6-7 years for the full transition of its fleet which comprises 680 of The Boeing Co.'s ( BA ) aircraft. The company's website already sports the new look, while changes in employee uniforms and airport signage will take another 2-3 years.
Having operating for several decades within the U.S. domestic market, Southwest Airlines inaugurated its international services in Jul 2014. The carrier technically took over the operations of its subsidiary AirTran, which it intends to integrate with itself by the end of this year.
To make things even brighter, the largest domestic carrier in terms of passenger strength will be able to offer several domestic non-stop services in and out of Dallas Love Field as flight restrictions (Wright Amendment) therein will be removed next month. Further, the slot wins at New York's John F. Kennedy and Washington D.C.'s Dulles airports, from rival American Airlines Group Inc. ( AAL ), will bolster its scope for expansion in the cities.
With transition costs kept under check, we believe the switch in the brand's look will not involve a major financial impact for Southwest Airlines. It will, in fact, provide a fresh outlook as the carrier expands boundaries, transforming its identity from a major domestic carrier to an international one.
Southwest Airlines currently carries a Zacks Rank #1 (Strong Buy). A similar ranked stock worth considering is Republic Airways Holdings Inc. ( RJET ).
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
BOEING CO (BA): Free Stock Analysis Report
REPUBLIC AIRWAY (RJET): 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.
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Further, the slot wins at New York's John F. Kennedy and Washington D.C.'s Dulles airports, from rival American Airlines Group Inc. ( AAL ), will bolster its scope for expansion in the cities. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The year just got a little more special for Southwest Airlines Co. ( LUV ) as the passenger carrier announced a modern new look for its jets, adding to a host of key milestones that the company is expected to witness through 2014.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Further, the slot wins at New York's John F. Kennedy and Washington D.C.'s Dulles airports, from rival American Airlines Group Inc. ( AAL ), will bolster its scope for expansion in the cities. Apart from all aircraft, the newly launched look will also feature on the Southwest Airlines logo, websites and ticket counters.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Further, the slot wins at New York's John F. Kennedy and Washington D.C.'s Dulles airports, from rival American Airlines Group Inc. ( AAL ), will bolster its scope for expansion in the cities. The year just got a little more special for Southwest Airlines Co. ( LUV ) as the passenger carrier announced a modern new look for its jets, adding to a host of key milestones that the company is expected to witness through 2014.
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Further, the slot wins at New York's John F. Kennedy and Washington D.C.'s Dulles airports, from rival American Airlines Group Inc. ( AAL ), will bolster its scope for expansion in the cities. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report REPUBLIC AIRWAY (RJET): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This is the first facelift for Southwest Airlines since the carrier added the canyon blue color to the top its jets in 2001 to mark its 30 th birthday.
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8581.0
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2014-09-07 00:00:00 UTC
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4 Ways American Airlines Is Swallowing US Airways
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AAL
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https://www.nasdaq.com/articles/4-ways-american-airlines-swallowing-us-airways-2014-09-07
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nan
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nan
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Late last year, the merger between US Airways and American Airlines parent company AMR became official. But combining the two major airlines into American Airlines Group is an enormous task that's still going on today.
Moving day
To make operations more efficient and position the new American Airlines' gates in greater proximity, US Airways and American Airlines are changing terminals at many airports across the country.
Since American Airlines Group wants to do as little moving as it has to, the company is looking to move the smaller airline's operations. With American Airlines being significantly larger than US Airways, this has meant that US Airways' operations are typically the ones to move.
Moves by either US Airways or American Airlines have already taken place at Los Angeles International, Phoenix Sky Harbor International, Miami International, and New York JFK International, which are among the most notable.
As these two airlines consolidate, travelers should expect to see their ground operations working closer together.
Policy integration
Before the merger, American Airlines and US Airways had differing policies that were fine when they were separate, but that can't continue as the two become one. To truly become one unified airline, American Airlines Group can have only one set of policies.
Among the things to disappear were American Airlines' bereavement fares to match the policy at US Airways. Checked-bag fees have also increased on many American Airlines flights to Mexico, the Caribbean, and Central America to match those of US Airways. In addition, American has matched the unaccompanied-minors policy of US Airways by raising the maximum age for the unaccompanied-minor fee from 11 to 14.
Frequent flyer programs
Loyalty programs are a core part of the modern airline business model, and American Airlines Group will have to work on integrating American's AAdvantage program and US Airways' Dividend Miles program. Because of the intricacies of these programs, American Airlines Group currently expects that it will be 2015 before Dividend Miles members are brought into the AAdvantage program.
In the meantime, American Airlines Group has been unifying certain parts of the programs. As of June, AAdvantage elite members can now upgrade to first class on US Airways flights. That comes on top of a series of changes put in place in January involving select reciprocal benefits, including complimentary checked bags, priority screening, and lounge access. Ordinary members will also be affected as the two airlines are aligning their redemption rates, resulting in a lower frequent-flyer-mile cost for certain American Airlines flights.
Aircraft refresh
Obviously, the US Airways aircraft will have to be repainted in the American Airlines colors, but there is more to be done here. American Airlines Group is undergoing a massive fleet overhaul that's seeing the addition of hundreds of new aircraft.
To unify the features of both airlines, the aircraft will be similarly equipped so that American Airlines can offer the same features throughout its network. This means personal entertainment systems on narrowbody aircraft and features such as lie-flat business-class seats on many long-range widebody aircraft.
Building one airline
Once combined, the new American Airlines will be the world's largest airline. But to get the job done, policies have to be integrated, operations moved, frequent flyers combined, and aircraft refreshed. Travelers and investors should keep an eye on this integration, with most tasks expected to be wrapped up in 2015.
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The article 4 Ways American Airlines Is Swallowing US Airways originally appeared on Fool.com.
Alexander MacLennan owns shares of 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 - 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.
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Checked-bag fees have also increased on many American Airlines flights to Mexico, the Caribbean, and Central America to match those of US Airways. That comes on top of a series of changes put in place in January involving select reciprocal benefits, including complimentary checked bags, priority screening, and lounge access. Take advantage of this profitable opportunity by grabbing your brand-new special report, " The IRS Is Daring You to Make This Investment Now!
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To truly become one unified airline, American Airlines Group can have only one set of policies. Frequent flyer programs Loyalty programs are a core part of the modern airline business model, and American Airlines Group will have to work on integrating American's AAdvantage program and US Airways' Dividend Miles program. But to get the job done, policies have to be integrated, operations moved, frequent flyers combined, and aircraft refreshed.
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Moving day To make operations more efficient and position the new American Airlines' gates in greater proximity, US Airways and American Airlines are changing terminals at many airports across the country. Frequent flyer programs Loyalty programs are a core part of the modern airline business model, and American Airlines Group will have to work on integrating American's AAdvantage program and US Airways' Dividend Miles program. Building one airline Once combined, the new American Airlines will be the world's largest airline.
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Since American Airlines Group wants to do as little moving as it has to, the company is looking to move the smaller airline's operations. To truly become one unified airline, American Airlines Group can have only one set of policies. But to get the job done, policies have to be integrated, operations moved, frequent flyers combined, and aircraft refreshed.
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8582.0
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2014-09-05 00:00:00 UTC
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After Hours Most Active for Sep 5, 2014 : QQQ, MSFT, YHOO, AAL, FTR, AAPL, CX, C, S, FI, X, BAC
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AAL
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https://www.nasdaq.com/articles/after-hours-most-active-sep-5-2014-qqq-msft-yhoo-aal-ftr-aapl-cx-c-s-fi-x-bac-2014-09-05
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The NASDAQ 100 After Hours Indicator is up .43 to 4,090.35. The total After hours volume is currently 17,466,209 shares traded.
The following are the most active stocks for the after hours session :
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.01 at $99.90, with 1,476,566 shares traded. This represents a 31.36% increase from its 52 Week Low.
Microsoft Corporation ( MSFT ) is unchanged at $45.91, with 1,091,360 shares traded., following a 52-week high recorded in today's regular session.
Yahoo! Inc. ( YHOO ) is +0.26 at $39.85, with 914,223 shares traded. As reported by Zacks, the current mean recommendation for YHOO is in the "buy range".
American Airlines Group, Inc. ( AAL ) is +0.05 at $37.90, with 907,878 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range".
Frontier Communications Corporation ( FTR ) is unchanged at $6.67, with 829,422 shares traded. As reported in the last short interest update the days to cover for FTR is 11.601443; this calculation is based on the average trading volume of the stock.
Apple Inc. ( AAPL ) is +0.03 at $99.00, with 620,012 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Cemex S.A.B. de C.V. ( CX ) is -0.03 at $13.37, with 100,000 shares traded. As reported in the last short interest update the days to cover for CX is 15.963097; this calculation is based on the average trading volume of the stock.
Citigroup Inc. ( C ) is unchanged at $52.30, with 72,820 shares traded. As reported by Zacks, the current mean recommendation for C is in the "buy range".
Sprint Corporation ( S ) is unchanged at $5.88, with 62,100 shares traded. S's current last sale is 98% of the target price of $6.
Frank's International N.V. ( FI ) is -0.0836 at $20.00, with 38,000 shares traded. As reported by Zacks, the current mean recommendation for FI is in the "buy range".
United States Steel Corporation ( X ) is -0.02 at $40.14, with 27,805 shares traded. X's current last sale is 105.63% of the target price of $38.
Bank of America Corporation ( BAC ) is -0.005 at $16.01, with 26,161 shares traded. BAC's current last sale is 88.94% of the target price of $18.
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.
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American Airlines Group, Inc. ( AAL ) is +0.05 at $37.90, with 907,878 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". Microsoft Corporation ( MSFT ) is unchanged at $45.91, with 1,091,360 shares traded., following a 52-week high recorded in today's regular session.
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American Airlines Group, Inc. ( AAL ) is +0.05 at $37.90, with 907,878 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The total After hours volume is currently 17,466,209 shares traded.
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American Airlines Group, Inc. ( AAL ) is +0.05 at $37.90, with 907,878 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 YHOO is in the "buy range".
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American Airlines Group, Inc. ( AAL ) is +0.05 at $37.90, with 907,878 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The NASDAQ 100 After Hours Indicator is up .43 to 4,090.35.
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8583.0
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2014-09-05 00:00:00 UTC
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Delta Air Lines vs. American Airlines: Which is the Better Stock? - Stocks in the News
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-vs-american-airlines-which-better-stock-stocks-news-2014-09-05
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nan
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nan
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Few inventions have changed how people live and experience the world as much as the airplane. It has altered the way in which people live, travel, and conduct business by cutting travel time and making any place reachable.
That being said, Delta Air Lines ( DAL ) and American Airlines ( AAL ) are two of the power houses of the U.S. airline industry and if are looking to get in on the industry from an investment perspective, you may want to consider these companies in your portfolio.
We will analyze both companies using statistics ranging from customer service to key air industry statistics and financial data. Delta Airlines is currently trading at $39.42, up about 41.84% YTD and American Airlines is currently trading at $38.29, up about 51.70% YTD.
Customer Service
Source: airfarewatchdog
DOT (Department of Transportation ) all reportable airports 3. DOT. Per 1K passengers
DOT (Department of Transportation ) all reportable airports 4. DOT. Per 1MM passengers
5. 2014 American Customer Satisfaction Index Scores
Looking at the customer service numbers, we can deduce that Delta has a better service for customers than American Airlines. These statistics are significant because at the heart of the airline industry, it is a service and when holding all things equal, the airline with better customer service will be the better company.
Since we cannot hold all things equal in stock picking, these numbers should be in the back of your mind when thinking of which airline stock to add to your portfolio, as a better customer experience can definitely help a company's long term performance.
Key Airline Industry Ratios/Terms
SOURCE: Bureau of Transportation Statistics T-100 Segment data.
The above graphs help explain the popularity of each airline and how loyal customers are to each airline. Total # of passengers per year typically gauge how popular an airline is and indicates if the company is generally doing well or poorly.
As you can see from the past decade, American Airlines totaled more passengers and flights per year since early 2000, but Delta eventually took over in both categories in 09' when it jumped tremendously. As we can see from the load factor, both companies seem to be consistently growing and currently hovering around the 80% mark. This measures the capacity utilization and efficiency of an airline to fill sears and generate fare revenue.
Available Seat Miles measures an airplanes capacity available to generate revenue. ASM basically measures an airlines revenue-generating abilities based upon traffic. This metric is very important for investors because it indicates which airlines is best at generating revenue from the availability of seats to customers.
As you can see, American Airlines is the winner at the beginning of '02, but eventually gets overrun by Delta beginning in 09'. This could be explained by the merger of Delta Airlines and Northwestern Airlines which resulted in the largest commercial airline in the world (at the time) with 786 aircraft and $17.7 billion in enterprise value.
Revenue Passenger Mile (RPM) is an important metric that shows the number of miles traveled by paying passengers. RPM's are the backbone of most transportation metrics because it accounts for both number of paying passengers and miles flown. Again, we see a similar story after 09' where Delta presumes to take over American Airlines in RPM's which could be attributed to the merger with Northwestern Airlines.
Key Financial Statistics
Valuation
From the above valuation statistics, we can deduce that while Delta is the bigger company in terms of market capitalization, both companies seem to be not overvalued. Growth is better accounted for in Delta than in American which could give investors bigger gains in the future given American has positive investment news.
Profitability
According to the data above, the most noticeable metrics are American Airlines negative profit margin and negative Net income to Common Shareholders. Both companies have similar gross profit per year hovering around $15 million, but the significant difference comes from operational cost management where American Airlines Gross Profit gets significantly subtracted relative to Delta Airlines.
One potential reason could be from Income Tax Expense where Delta and American generate a net value of $8.01bil and -$346 million, respectively. Both Airlines generate similar revenue and American Airlines comes out on top generating higher revenue per share giving some positive signs for their shareholders. Although American Airlines has about 4.5x higher Debt/Equity than Delta Airlines which indicates that costs could potentially hinder their growth for gross profit and revenue for the coming years.
Bottom Line
When analyzing these companies from an investor standpoint, it would be arguably difficult to say that American Airlines is the better stock to have in your portfolio. Yes, American Airlines is a little more experienced in being publicly traded and both companies have a similar rate of return on their common stock since going public.
According to the customer service data, Airline key ratios, and financial data, Delta Airlines as of now seems to be the stock to be investigating more to potentially have in your portfolio. We currently have both companies as a Zacks Rank #3 (hold) due to mixed consensus on earnings estimate revisions for the next year. Delta and American has had a positive average earnings surprise of 5.79 % and 62.23% respectively.
Investors should be watching to see how Delta will maintain their growth that they have incurred after their merger with Northwestern Airlines. Also, investors should carefully watch how American Airlines will control their operational costs and generate a positive net income for their shareholders. These massive Airlines are big players in the airline industry and you should research how these companies will capitalize in the upcoming holiday season.
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
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.
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That being said, Delta Air Lines ( DAL ) and American Airlines ( AAL ) are two of the power houses of the U.S. airline industry and if are looking to get in on the industry from an investment perspective, you may want to consider these companies in your portfolio. Click to get this free 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. As you can see from the past decade, American Airlines totaled more passengers and flights per year since early 2000, but Delta eventually took over in both categories in 09' when it jumped tremendously.
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Click to get this free 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. That being said, Delta Air Lines ( DAL ) and American Airlines ( AAL ) are two of the power houses of the U.S. airline industry and if are looking to get in on the industry from an investment perspective, you may want to consider these companies in your portfolio. Both companies have similar gross profit per year hovering around $15 million, but the significant difference comes from operational cost management where American Airlines Gross Profit gets significantly subtracted relative to Delta Airlines.
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That being said, Delta Air Lines ( DAL ) and American Airlines ( AAL ) are two of the power houses of the U.S. airline industry and if are looking to get in on the industry from an investment perspective, you may want to consider these companies in your portfolio. Click to get this free 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. This could be explained by the merger of Delta Airlines and Northwestern Airlines which resulted in the largest commercial airline in the world (at the time) with 786 aircraft and $17.7 billion in enterprise value.
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That being said, Delta Air Lines ( DAL ) and American Airlines ( AAL ) are two of the power houses of the U.S. airline industry and if are looking to get in on the industry from an investment perspective, you may want to consider these companies in your portfolio. Click to get this free 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. Per 1K passengers DOT (Department of Transportation ) all reportable airports 4.
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8584.0
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2014-09-04 00:00:00 UTC
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How Many Stocks Can Pass GuruFocus Value Screeners? - September 2, 2014
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AAL
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https://www.nasdaq.com/articles/how-many-stocks-can-pass-gurufocus-value-screeners-september-2-2014-2014-09-04
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nan
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GuruFocus provides value screeners for our Premium members to generate ideas with proven value strategies. GuruFocus' All-In-One Screener also allows subscribers to create their own value screeners with more than 150 filters. Here we want to see how many companies pass different stock screeners in different regions and which companies can pass most of the screeners. The July 2014 and August 2014 stock lists can be seen here and here separately.
The following are the number of companies that pass the screeners:
Warren Buffett Recent Buys
Note: Peter Lynch Screener and Walter Schloss Screener can be found through All-in-One Guru Screener . The complete stock list can be seen by clicking the link.
The following are the US stocks that passed at least three screeners as of September 2, 2014:
The following are the Canadian stocks that passed at least two screeners as of September 2, 2014:
The following are the UK/Ireland's stocks that passed at least two screeners as of September 2, 2014:
The following are the European stocks that passed at least three screeners as of September 2, 2014:
The following are the Asian stocks that passed at least three screeners as of September 2, 2014:
The following are the Oceania stocks that passed at least two screeners as of September 2, 2014:
The following are the brief summaries of different screeners.
Benjamin Graham Net-Net Working Capital Screener
Benjamin Graham defined the net-net value as Cash and short-term investments + (0.75 * accounts receivable) + (0.5 * inventory) - total liabilities. He looked for companies whose market values were less than two-thirds of that net-net value. The rules of the screener are as follows:
The stock prices are less than the net current asset value of the companies - Benjamin Graham
During the past 12 months, the companies generated positive operating cash flow.
The company has no meaningful debt compared to its cash position.
According to Benjamin Graham, some of these companies may well go under as economic conditions worsen, it is important to hold a diversified group of them.
Undervalued Predictable Companies - Discount Cash Flow and Discount Earnings
GuruFocus applied the discounted cash flow and discounted earnings to the top ranked predictable companies, and calculated the intrinsic values of the these companies. These are the companies that appeared to be undervalued. The intrinsic value of the companies is calculated with Future Earnings at Growth Stage + Terminal Value .
Buffett-Munger Screener - Good Companies at Fair or Undervalued Prices
The Buffett-Munger Screener can be used to find companies with high-quality business at undervalued or fair-valued prices:
Companies that have high Predictability Rank, that is, companies that can consistently grow their revenue and earnings.
Companies that have competitive advantages. It can maintain or even expand its profit margin while growing its business
Companies that incur little debt while growing business
Companies that are fair valued or under-valued. We use PEPG as indicator. PEPG is the P/E ratio divided by the average growth rate of EBITDA over the past 5 years.
Companies at Historical Low Price/Sales Ratios
These companies have been very predictable in their business operations. They are sold at close to historical low price/sales ratios. Their sales and earnings have consistently grown for at least the past decade. However the price/sales (P/S) ratio of each of these companies is less than 30% above its historical low.
Companies at Historical Low Price/Book Ratios
These are the predictable companies that are sold at close to historical low price/book (P/B) ratios. Their sales and earnings have consistently grown for at least the past decade. However the price/book (P/B) ratios of these companies are less than 30% above their historical lows.
Peter Lynch Screener
Companies that have Predictability Rank of at least 2 stars.
Companies that have P/E ratio of at most 14.
Companies that have 10 years revenue growth rate of at least 6%.
Walter Schloss's Screener
Companies that have Altman Z-Score of at least 2.99. Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations. Altman Z-Score is calculated with this formula: Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5 where
X1 = working capital/total assets,
X2 = retained earnings/total assets,
X3 = earnings before interest and taxes/total assets,
X4 = market value equity/book value of total liabilities,
X5 = sales/total assets.
Companies that have interest coverage of at least 10. It is a ratio that measures the burden of the debt a company carries and how easily the company can pay off its debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Companies that have price to tangible book of at most 1.0.
Companies that have max 25% above 3-year low.
Both Peter Lynch Screener and Walter Schloss Screener can be found through All-in-One Guru Screener. GuruFocus premium membership is needed to access the details of the portfolios and screeners. We also publish a monthly Buffett-Munger newsletter which features the picks from Buffett-Munger Screener. If you are a premium member, you can download this for free. If you are not a Premium Member, we invite you for a 7-day Free Trial.
GuruFocus Global Membership allows you to screen for bargains in Global Markets. We now cover more than 50,000 stocks in 32 countries across five regions. Take a 7-day Free Trial.
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.
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Benjamin Graham Net-Net Working Capital Screener Benjamin Graham defined the net-net value as Cash and short-term investments + (0.75 * accounts receivable) + (0.5 * inventory) - total liabilities. According to Benjamin Graham, some of these companies may well go under as economic conditions worsen, it is important to hold a diversified group of them. PEPG is the P/E ratio divided by the average growth rate of EBITDA over the past 5 years.
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The rules of the screener are as follows: The stock prices are less than the net current asset value of the companies - Benjamin Graham During the past 12 months, the companies generated positive operating cash flow. Undervalued Predictable Companies - Discount Cash Flow and Discount Earnings GuruFocus applied the discounted cash flow and discounted earnings to the top ranked predictable companies, and calculated the intrinsic values of the these companies. Altman Z-Score is calculated with this formula: Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5 where X1 = working capital/total assets, X2 = retained earnings/total assets, X3 = earnings before interest and taxes/total assets, X4 = market value equity/book value of total liabilities, X5 = sales/total assets.
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Here we want to see how many companies pass different stock screeners in different regions and which companies can pass most of the screeners. The following are the US stocks that passed at least three screeners as of September 2, 2014: The following are the Canadian stocks that passed at least two screeners as of September 2, 2014: The following are the UK/Ireland's stocks that passed at least two screeners as of September 2, 2014: The following are the European stocks that passed at least three screeners as of September 2, 2014: The following are the Asian stocks that passed at least three screeners as of September 2, 2014: The following are the Oceania stocks that passed at least two screeners as of September 2, 2014: The following are the brief summaries of different screeners. Buffett-Munger Screener - Good Companies at Fair or Undervalued Prices The Buffett-Munger Screener can be used to find companies with high-quality business at undervalued or fair-valued prices: Companies that have high Predictability Rank, that is, companies that can consistently grow their revenue and earnings.
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Here we want to see how many companies pass different stock screeners in different regions and which companies can pass most of the screeners. Buffett-Munger Screener - Good Companies at Fair or Undervalued Prices The Buffett-Munger Screener can be used to find companies with high-quality business at undervalued or fair-valued prices: Companies that have high Predictability Rank, that is, companies that can consistently grow their revenue and earnings. PEPG is the P/E ratio divided by the average growth rate of EBITDA over the past 5 years.
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8585.0
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2014-09-04 00:00:00 UTC
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Stock Market News for September 04, 2014 - Market News
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AAL
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https://www.nasdaq.com/articles/stock-market-news-for-september-04-2014-market-news-2014-09-04
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nan
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Benchmarks ended mostly in the negative territory on Wednesday after a drop in Apple shares weighed on the broader markets. A possibility of a cease-fire between Ukraine and Russia had initially lifted the markets. Meanwhile, investors were reluctant to bet big bucks ahead of the European Central Bank's monthly policy meeting on Thursday.
For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article
The Dow Jones Industrial Average (DJI) gained a meager 0.06% to close at 17,078.28 The Standard & Poor 500 (S&P 500) had hit an intraday record high of 2009.28, before dropping 0.08% to settle at 2,000.72. The tech-laden Nasdaq Composite Index closed at 4,572.57; declining 0.6%. The fear-gauge CBOE Volatility Index (VIX) went up 0.9% to settle at 12.36. A total of 2.8 billion shares were traded in the NYSE on Wednesday. Decliners outpaced advancing stocks on the NYSE. For 52% stocks that declined, 45% advanced.
Shares of Apple Inc. ( AAPL ) took a beating yesterday after Samsung unveiled two large-screen phones and a virtual reality device. The new products were launched concurrently in New York, Beijing and Berlin. Apple's biggest rival released these products before the much-awaited release of iPhone 6 on Sep 9. Shares of Apple dropped 4.2% to $98.94, its worst one-day percentage decline since Jan 28.
A total of 120 million Apple shares were traded on Wednesday, more than its long-term average of 68.66 million shares per person.
Apple was the second biggest laggard in the S&P 500. It also weighed heavily on the Nasdaq and the technology sector. The Technology Select Sector SPDR (XLK) declined 0.6%, the second biggest loser among the S&P 500 sectors.
Possibility of a ceasefire between Ukrainian forces and pro-Russian separatists failed to boost the markets. President Vladimir Putin outlined ceasefire plans. However, reports stated that Ukraine's prime minister had rejected the plan.
Coming back to the domestic events, shares of Delta Air Lines Inc. ( DAL ) plunged 5.2% after the company lowered its operating margin for the third quarter and increased its fuel costs outlook. The airliner also declared that its traffic dropped slightly last month.
Shares of other airliners declined on this news. Airline stocks such as American Airlines Group Inc. ( AAL ), United Continental Holdings, Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) decreased 3.4%, 1.9% and 1%, respectively.
Economic data was largely encouraging. According to the U.S. Department of Commerce, new orders for manufactured goods surged 10.5% in July. However, this was slightly less than the consensus estimate of 10.6%. This reading follows an increase of 1.5% in June. However, excluding transportation, new orders decreased 0.8% in July. Separately, unfilled orders, shipments and inventories data were up 5.4%, 1.2% and 0.1%, respectively.
Domestic car sales data was positive. Total vehicle sales increased to an annualized rate of 17.5 million in August, well beyond the consensus expectation of a rise to 16.6 million. Domestic-made vehicle sales also climbed to an annualized rate of 14.1 million in August, more than the consensus expectation of an increase to 13.2 million.
The Federal Reserve's Beige Book reported expansion in economic activity in all Federal Reserve Districts. The report further stated that consumer spending growth is positive and jobs growth is modest. However, Fed's Beige Book stated the housing sector lagged the others.
The SPDR S&P Homebuilders (XHB) was the biggest loser among the S&P 500 sectors. The sector declined 1.2%. Key housing stocks from the sector such as Toll Brothers Inc. ( TOL ), PulteGroup, Inc. ( PHM ), KB Home ( KBH ), DR Horton Inc. ( DHI ) and Beazer Homes USA Inc. ( BZH ) decreased 4.7%, 3.8%, 3.3%, 2.5% and 2.8%, respectively. Out of 10 S&P sectors, 5 sectors declined on Wednesday.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airline stocks such as American Airlines Group Inc. ( AAL ), United Continental Holdings, Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) decreased 3.4%, 1.9% and 1%, respectively. Click to get this free report APPLE INC (AAPL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report KB HOME (KBH): Free Stock Analysis Report D R HORTON INC (DHI): Free Stock Analysis Report BEAZER HOMES (BZH): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, investors were reluctant to bet big bucks ahead of the European Central Bank's monthly policy meeting on Thursday.
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Airline stocks such as American Airlines Group Inc. ( AAL ), United Continental Holdings, Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) decreased 3.4%, 1.9% and 1%, respectively. Click to get this free report APPLE INC (AAPL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report KB HOME (KBH): Free Stock Analysis Report D R HORTON INC (DHI): Free Stock Analysis Report BEAZER HOMES (BZH): Free Stock Analysis Report To read this article on Zacks.com click here. Key housing stocks from the sector such as Toll Brothers Inc. ( TOL ), PulteGroup, Inc. ( PHM ), KB Home ( KBH ), DR Horton Inc. ( DHI ) and Beazer Homes USA Inc. ( BZH ) decreased 4.7%, 3.8%, 3.3%, 2.5% and 2.8%, respectively.
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Click to get this free report APPLE INC (AAPL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report KB HOME (KBH): Free Stock Analysis Report D R HORTON INC (DHI): Free Stock Analysis Report BEAZER HOMES (BZH): Free Stock Analysis Report To read this article on Zacks.com click here. Airline stocks such as American Airlines Group Inc. ( AAL ), United Continental Holdings, Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) decreased 3.4%, 1.9% and 1%, respectively. A total of 120 million Apple shares were traded on Wednesday, more than its long-term average of 68.66 million shares per person.
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Airline stocks such as American Airlines Group Inc. ( AAL ), United Continental Holdings, Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) decreased 3.4%, 1.9% and 1%, respectively. Click to get this free report APPLE INC (AAPL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report KB HOME (KBH): Free Stock Analysis Report D R HORTON INC (DHI): Free Stock Analysis Report BEAZER HOMES (BZH): Free Stock Analysis Report To read this article on Zacks.com click here. However, reports stated that Ukraine's prime minister had rejected the plan.
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8586.0
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2014-09-04 00:00:00 UTC
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'Nervous' David Tepper's New Top Holding
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AAL
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https://www.nasdaq.com/articles/nervous-david-teppers-new-top-holding-2014-09-04
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nan
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nan
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David Tepper ( Trades , Portfolio ), leader of the $20 billion hedge fund Appaloosa Management, told Bloomberg today after the European Central Bank announced it would cut interest rates: "It's the beginning of the end of the bond market rally. We're done."
ECB President Mario Draghi said the bank would also begin buying asset-backed securities and bonds in order to stimulate the economy.
The announcement confirms Tepper's unease with the market and economic growth prospects he discussed in May, when he told attendees at the SALT Investment Conference in Las Vegas: "There are times to make money. This is a time to not lose money. I think it is a nervous time."
Chuck Royce Undervalued Stocks
Chuck Royce Top Growth Companies
Chuck Royce High Yield stocks
John Rogers Undervalued Stocks
John Rogers Top Growth Companies
John Rogers High Yield stocks
David Tepper Undervalued Stocks
David Tepper Top Growth Companies
David Tepper High Yield stocks
Indeed, Tepper's usually bullish buying has tapered. He bought only three new stocks in the second quarter and three in the first quarter, one of which, Facebook ( FB ), he said was a short-term trade. This compares to 19 new stocks he added to his portfolio in fourth quarter 2013.
Tepper also did some significant rearranging in his portfolio in the second quarter. He cut his previous second-place holding, the S&P SPDR ( SPY ), by more than 72% to occupy 3.6% of his portfolio from 9.9%, and he no longer reports holding a call on the SPY that spanned 12.4% of his portfolio as his largest position. Tepper also raised his sixth-place long position, American Airlines Group Inc. ( AAL ), to be his top position at 7% of his portfolio as of the end of the second quarter.
American Airlines Group ( AAL )
Tepper's holding history shows an American Airlines position appearing in his portfolio in fourth quarter 2013, but he has held shares of US Airways Group, a company that merged with AMR Corp that quarter to form the new American Airlines, since 2009.
Tepper already has a gain of 51% on his American Airlines position at its share price around $38.81 on Thursday. He has a much larger gain overall, however, considering US Airways stock traded around $3 per share in fourth quarter 2009.
In the second quarter, Tepper increased his stake in American Airlines Group by 35.5% to 11,654,522 shares in total, making it his top holding.
Holding history:
American Airlines Group is the holding company for American Airlines and US Airways, and hosts a combined 6,700 flights per day to 54 countries. This year it is ranked as the largest airline in the U.S. by number of passengers, fleet size and destinations offered.
The combined companies reported increased revenue passenger miles in July, up 1.1% from last year, as year-to-date revenue passenger miles increased 2% from the same period of 2013. July total passengers also increased 3% from July 2013, and year-to-date passengers increased 2% year over year.
The Fort Worth-based company also reported record GAAP net profit of $1.5 billion for second quarter 2014, a 114% increase from $681 million the previous year. Total revenues also increased by 10.2% to $11.4 billion, driven by a 3.1% increase in total available seat miles and 5.9% increase in consolidated passenger revenue per available seat mile.
American's quarterly one-year revenue and earnings history:
American Airlines announced in its second quarter results that it would begin focusing on deploying capital to reduce debt, increase pension contributions and return capital to shareholders. The plan is expected to consist of $2.8 billion in debt and aircraft lease prepayments, $1 billion in share repurchases, $6 million in additional pension payments. It will also include the initiation of a $0.10 per-share dividend, the first American has paid since 1980.
As of June 30, American has $10.3 billion in total cash on its balance sheet.
The merger cost the company approximately $1.2 billion, payment of which it will spread over three years. Synergies from the merger are expected to total $1.05 billion in 2015.
American Airlines trades Thursday with a P/E ratio of 10.6, lower than 93% of companies in the Global Airlines industry. Its P/S ratio at 0.5 is lower than 98% of the companies in the industry.
Gurus Jim Chanos (Trades, Portfolio), Stanley Druckenmiller (Trades, Portfolio) and Steve Mandel (Trades, Portfolio) started position in the stock in the second quarter, while Kyle Bass (Trades, Portfolio) and John Paulson (Trades, Portfolio) sold out.
See David Tepper's portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here.
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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.
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Tepper also raised his sixth-place long position, American Airlines Group Inc. ( AAL ), to be his top position at 7% of his portfolio as of the end of the second quarter. American Airlines Group ( AAL ) Tepper's holding history shows an American Airlines position appearing in his portfolio in fourth quarter 2013, but he has held shares of US Airways Group, a company that merged with AMR Corp that quarter to form the new American Airlines, since 2009. David Tepper ( Trades , Portfolio ), leader of the $20 billion hedge fund Appaloosa Management, told Bloomberg today after the European Central Bank announced it would cut interest rates: "It's the beginning of the end of the bond market rally.
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American Airlines Group ( AAL ) Tepper's holding history shows an American Airlines position appearing in his portfolio in fourth quarter 2013, but he has held shares of US Airways Group, a company that merged with AMR Corp that quarter to form the new American Airlines, since 2009. Tepper also raised his sixth-place long position, American Airlines Group Inc. ( AAL ), to be his top position at 7% of his portfolio as of the end of the second quarter. Chuck Royce Undervalued Stocks Chuck Royce Top Growth Companies Chuck Royce High Yield stocks John Rogers Undervalued Stocks John Rogers Top Growth Companies John Rogers High Yield stocks David Tepper Undervalued Stocks David Tepper Top Growth Companies David Tepper High Yield stocks Indeed, Tepper's usually bullish buying has tapered.
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American Airlines Group ( AAL ) Tepper's holding history shows an American Airlines position appearing in his portfolio in fourth quarter 2013, but he has held shares of US Airways Group, a company that merged with AMR Corp that quarter to form the new American Airlines, since 2009. Tepper also raised his sixth-place long position, American Airlines Group Inc. ( AAL ), to be his top position at 7% of his portfolio as of the end of the second quarter. Chuck Royce Undervalued Stocks Chuck Royce Top Growth Companies Chuck Royce High Yield stocks John Rogers Undervalued Stocks John Rogers Top Growth Companies John Rogers High Yield stocks David Tepper Undervalued Stocks David Tepper Top Growth Companies David Tepper High Yield stocks Indeed, Tepper's usually bullish buying has tapered.
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Tepper also raised his sixth-place long position, American Airlines Group Inc. ( AAL ), to be his top position at 7% of his portfolio as of the end of the second quarter. American Airlines Group ( AAL ) Tepper's holding history shows an American Airlines position appearing in his portfolio in fourth quarter 2013, but he has held shares of US Airways Group, a company that merged with AMR Corp that quarter to form the new American Airlines, since 2009. In the second quarter, Tepper increased his stake in American Airlines Group by 35.5% to 11,654,522 shares in total, making it his top holding.
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8587.0
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2014-09-04 00:00:00 UTC
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Delta Aug Traffic Lacks Bite, Stock Dips on Lowered View - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/delta-aug-traffic-lacks-bite-stock-dips-on-lowered-view-analyst-blog-2014-09-04
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nan
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A rise in August traffic figures could not save Delta Air Lines Inc. ( DAL ) from tumbling as the third largest U.S. carrier in terms of passenger count reduced its September quarter forecast partially. The news impacted Delta's stock, which closed the day 5.16% lower.
Delta stated overcapacity in transatlantic routes, the impact of the Ebola outbreak and geo-political crisis in Russia and the Middle East as factors weighing on its unit revenues. The Atlanta-based carrier now expects its September quarter unit revenue growth to be around 2-3%, down from the earlier forecast of 2-4%.
Consequently, the reduced unit revenue expectation is likely to have an impact on Delta's margins. The carrier now expects an operating margin of 15-16%, down from its previous guidance of 15-17%.
Further, despite a fall in Brent crude, jet fuel prices have not seen any meaningful decline. This led the premier carrier to raise its expected fuel price projection for the forthcoming quarter by 2 cents to $2.90-$2.95. Notably, jet fuel comprises 30-35% of the airline's operating costs.
Similar concerns have also dragged down some of Delta's traditional peers. American Airlines Group Inc. ( AAL ), United Continental Holdings Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) were some of the biggest losers.
However, these negatives were partially mitigated by moderate August traffic numbers. Revenue passenger miles or RPMs - which imply revenue generated per mile per passenger - moved up 3.1% year over year to 20.03 billion. Consolidated capacity (available seat miles or ASMs) for the month increased 2.7% from Aug 2013 to 22.87 billion. Passenger revenue per available seat mile (PRASM) improved 2.0% year over year. Continued domestic strength attributed to the improved performance.
The load factor or percentage of seats filled by passengers improved 30 basis points (bps) from Aug 2013 to 87.6% while the completion factor was 99.6%, with nearly 84.3% of flights on schedule.
In the first eight months of 2014, Delta has generated RPMs of 137.94 billion (up 3.9% from the corresponding period last year) and ASMs of 161.40 billion (up 2.5% year over year). The load factor improved 120 bps year over year to 85.5%.
Delta is expected to generate higher revenues than last year on strong domestic market, capacity discipline, route expansion, cost control measures and customer-focused initiatives. Apart from domestic strength, Delta is leveraging from its joint venture with Virgin Atlantic and strong demand within the New-York London route. The carrier also held that it will earn a pre-tax income of $4 billion in 2014.
Delta currently has a Zacks Rank #3 (Hold).
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
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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.
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American Airlines Group Inc. ( AAL ), United Continental Holdings Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) were some of the biggest losers. 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. A rise in August traffic figures could not save Delta Air Lines Inc. ( DAL ) from tumbling as the third largest U.S. carrier in terms of passenger count reduced its September quarter forecast partially.
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American Airlines Group Inc. ( AAL ), United Continental Holdings Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) were some of the biggest losers. 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. Revenue passenger miles or RPMs - which imply revenue generated per mile per passenger - moved up 3.1% year over year to 20.03 billion.
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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. American Airlines Group Inc. ( AAL ), United Continental Holdings Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) were some of the biggest losers. Revenue passenger miles or RPMs - which imply revenue generated per mile per passenger - moved up 3.1% year over year to 20.03 billion.
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American Airlines Group Inc. ( AAL ), United Continental Holdings Inc. ( UAL ) and Southwest Airlines Co. ( LUV ) were some of the biggest losers. 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. Consequently, the reduced unit revenue expectation is likely to have an impact on Delta's margins.
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8588.0
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2014-09-02 00:00:00 UTC
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American Airlines, Orbitz End Dispute; Fare List Restored - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-orbitz-end-dispute-fare-list-restored-analyst-blog-2014-09-02
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nan
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Just days after American Airlines Group Inc. ( AAL ) cut its ties with Orbitz Worldwide Inc. ( OWW ), the premier passenger carrier agreed to restore airfare listings on the online travel company's website.
On Aug 26, 2014, American Airlines had pulled out its fare listing from Orbitz and two of the latter's affiliate websites - Cheaptickets.com and ebookers.com - over a fee dispute. Beginning Sep 1, the carrier was also supposed to drop U.S. Airways' listings from Orbitz. However, corporate customers could continue to book their tickets through 'Orbitz for Business'.
However, last Friday, the two parties reached a mutual agreement that will reinstate fare information about American Airlines and U.S. Airways on Orbitz websites. The news pumped up Orbitz's share price by 3.4% on Friday trade on Nasdaq, while American Airline's shares closed the day marginally in the red.
Founded in 2000, Orbitz offers online booking of air tickets for American Airlines as well as peers like United Continental Holdings Inc. ( UAL ), Delta Airlines Inc. ( DAL ) and JetBlue Airways, among others.
It is worth noting that American Airlines and Orbitz had been caught in a similar dispute in the past, when the former withdrew airfare information from the latter's website in 2010. Thereafter, in 2011, American Airlines had sued Orbitz claiming that the travel agency had downplayed the carrier's flights in results reflected against customers' search queries. That dispute was, however, settled last year.
We believe the possible impact that Orbitz apprehended on its turnover due to the pullout of the nation's largest carrier from its website, led to the quick settlement of the dispute. It could have considerably dragged down Orbitz's position vis-à-vis peers like Expedia Inc. and Travelocity.
On the other hand, American Airlines, which might have had a lesser impact on account of the pullout, will now have all major online booking sites offering their tickets, including Orbitz.
American Airlines currently carries a Zacks Rank #3 (Hold).
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ORBITZ WORLDWID (OWW): 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.
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Just days after American Airlines Group Inc. ( AAL ) cut its ties with Orbitz Worldwide Inc. ( OWW ), the premier passenger carrier agreed to restore airfare listings on the online travel company's website. Click to get this free report ORBITZ WORLDWID (OWW): 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. Thereafter, in 2011, American Airlines had sued Orbitz claiming that the travel agency had downplayed the carrier's flights in results reflected against customers' search queries.
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Click to get this free report ORBITZ WORLDWID (OWW): 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. Just days after American Airlines Group Inc. ( AAL ) cut its ties with Orbitz Worldwide Inc. ( OWW ), the premier passenger carrier agreed to restore airfare listings on the online travel company's website. Founded in 2000, Orbitz offers online booking of air tickets for American Airlines as well as peers like United Continental Holdings Inc. ( UAL ), Delta Airlines Inc. ( DAL ) and JetBlue Airways, among others.
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Just days after American Airlines Group Inc. ( AAL ) cut its ties with Orbitz Worldwide Inc. ( OWW ), the premier passenger carrier agreed to restore airfare listings on the online travel company's website. Click to get this free report ORBITZ WORLDWID (OWW): 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. Founded in 2000, Orbitz offers online booking of air tickets for American Airlines as well as peers like United Continental Holdings Inc. ( UAL ), Delta Airlines Inc. ( DAL ) and JetBlue Airways, among others.
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Just days after American Airlines Group Inc. ( AAL ) cut its ties with Orbitz Worldwide Inc. ( OWW ), the premier passenger carrier agreed to restore airfare listings on the online travel company's website. Click to get this free report ORBITZ WORLDWID (OWW): 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. Founded in 2000, Orbitz offers online booking of air tickets for American Airlines as well as peers like United Continental Holdings Inc. ( UAL ), Delta Airlines Inc. ( DAL ) and JetBlue Airways, among others.
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8589.0
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2014-09-02 00:00:00 UTC
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Sector Update: Consumer
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AAL
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https://www.nasdaq.com/articles/sector-update-consumer-2014-09-02-1
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nan
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Consumer stocks were narrowly lower Tuesday afternoon with shares of consumer staples companies in the S&P 500 sinking about 0.2%. Shares of consumer discretionary firms in the S&P 500 were down less than 0.1%.
In company news, online travel reservation company Orbitz Worldwide ( OWW ) was narrowly higher today after late Friday announcing an agreement with American Airlines ( AAL ) resolving a dispute that kept American Airlines flights off its websites for several days last week.
The deal immediately returned all of the airlines' flights to the website. OWW also said all tickets previously purchased on its sites would remain valid.
The companies had disagreed over the portion of ticket sales revenue OWW would receive. AAL, the world's largest airline, removed data for American Airlines flights from OWW's websites Aug. 26 and had planned to remove US Airways flight data on Sept. 1 when its contract expired.
Financial terms of the settlement were not disclosed.
OWW shares rose 0.3% to $8.23 each today, climbing to a high of $8.30 a share earlier today. The stock has traded within a 52-week range of $6.40 to $10.70 a share, declining almost 13% over the past 12 months through Friday's close.
AAL was ahead 1.9% at $39.60 a share in mid-day trade.
In other sector news,
(+) NCLH, (+11.4%) Announces deal to buy Prestige Cruises International for $3.025 mln in cash, stock and assumed debt. Sees acquisition immediately raising adjusted EPS by single-digit percentages including around $25 mln in expected synergies.
(-) CONN, (-30.4%) Q2 net income of $0.50 per share misses by $0.25. Revenue rises 30.4% to $353 mln, in-line with estimates. Lowers FY15 guidance by $0.60 from prior guidance to new range of $2.80 to $3.00 per share, lagging Street by at least $0.74.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, online travel reservation company Orbitz Worldwide ( OWW ) was narrowly higher today after late Friday announcing an agreement with American Airlines ( AAL ) resolving a dispute that kept American Airlines flights off its websites for several days last week. AAL, the world's largest airline, removed data for American Airlines flights from OWW's websites Aug. 26 and had planned to remove US Airways flight data on Sept. 1 when its contract expired. AAL was ahead 1.9% at $39.60 a share in mid-day trade.
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In company news, online travel reservation company Orbitz Worldwide ( OWW ) was narrowly higher today after late Friday announcing an agreement with American Airlines ( AAL ) resolving a dispute that kept American Airlines flights off its websites for several days last week. AAL, the world's largest airline, removed data for American Airlines flights from OWW's websites Aug. 26 and had planned to remove US Airways flight data on Sept. 1 when its contract expired. AAL was ahead 1.9% at $39.60 a share in mid-day trade.
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In company news, online travel reservation company Orbitz Worldwide ( OWW ) was narrowly higher today after late Friday announcing an agreement with American Airlines ( AAL ) resolving a dispute that kept American Airlines flights off its websites for several days last week. AAL, the world's largest airline, removed data for American Airlines flights from OWW's websites Aug. 26 and had planned to remove US Airways flight data on Sept. 1 when its contract expired. AAL was ahead 1.9% at $39.60 a share in mid-day trade.
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In company news, online travel reservation company Orbitz Worldwide ( OWW ) was narrowly higher today after late Friday announcing an agreement with American Airlines ( AAL ) resolving a dispute that kept American Airlines flights off its websites for several days last week. AAL, the world's largest airline, removed data for American Airlines flights from OWW's websites Aug. 26 and had planned to remove US Airways flight data on Sept. 1 when its contract expired. AAL was ahead 1.9% at $39.60 a share in mid-day trade.
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8590.0
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2014-09-01 00:00:00 UTC
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How United Airlines Just Made It a Lot Easier to Check Your Bags
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AAL
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https://www.nasdaq.com/articles/how-united-airlines-just-made-it-lot-easier-check-your-bags-2014-09-01
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nan
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nan
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United Airlines passengers departing from Chicago's O'Hare airport can add another DIY task to their pre-flight checklist: tagging their own checked luggage. The Chicago Tribune reported this week that United did a soft launch of the self-check program at its main hub. The company hopes it will cut ticket counter lines and free up agents to deal with up to 30% more customers who need to talk to a person.
To take advantage of the new program, United passengers at O'Hare who have already checked in on their mobile devices can print bag tag stickers at the carrier's check-in kiosks, drop their tagged luggage at a separate bag drop counter, and move on.
While the Tribune noted that self-checking doesn't reduce passengers' checked bag fees, it's hard to see the downside to staying out of the ticket counter line if all you need to do is drop a bag. From the airlines' perspective, fewer bag drops at the ticket counter means hours saved on rote tasks -- and ideally, better customer satisfaction among fliers who really do need to speak to a ticket agent.
Lightening the checked baggage load
United isn't the first airline to offer self-service bag check-in, and it already offers the service at some other airports, including Boston Logan. The O'Hare rollout is almost certainly the shape of things to come, not just for United, but for other airlines, too.
American Airlines debuted a similar program at O'Hare in March, at which time the airline told the Tribune that the new self-check process is more than 50% faster than checking bags at the ticket counter. Alaska Airlines lets passengers on select nonstop flights print bag tags at the airport or at home after checking in online. Several overseas carriers have started offering print-at-home options, and United said that option is in the works for its passengers.
Australia-based Qantas goes a step further in streamlining bag check-in. Passengers traveling within Australia have the option to print tags at check-in kiosks on the way to the baggage drop. Qantas also sells permanent Q Bag Tags that let frequent fliers go straight to the bag drop before domestic Australian flights -- no printing required.
New tech to move passengers more quickly
United has been busy automating other parts of the airport experience this year, too. The airline has installed automated passport-control kiosks in Chicago, Newark, and Houston over the past year to cut down on customs wait times for returning passengers. (I used one of the APCs in Houston last month, and it was by far the speediest part of the reentry process. The machine took about a minute to scan my passport, record my customs information, take a dreadful photo, and print a receipt to hand to a customs officer.)
In August, United became the first domestic carrier to allow mobile check-in for international flights through its mobile app. Passengers can use their smartphones to scan their passport or store their passport data with the app to speed things along even more. Either way, the app makes passport scanning one less task that has to be handled by a ticket agent at the counter.
At the gate, United is giving self-boarding a trial run this year. Eight of United's 10 renovated gates in Boston give fliers the option to scan their own boarding passes, "making boarding quicker for everyone and facilitating on-time departures," according to a company press release.
Healthier bottom line, happier passengers
With airline profit margins thin overall, anything that streamlines operations and cuts costs is a win. United seems to be leading the pack when it comes to using mobile technology to steer passengers away from the ticket counter. It was the first domestic airline to provide a mobile check-in option at all of its U.S. airports, and it leads U.S. carriers in offering mobile check-in at airports abroad as well.
If United can pave the way on self-checking baggage and self-scanning of boarding passes, other airlines will have to follow suit to stay competitive. The fact that these innovations can improve flier satisfaction is a bonus.
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The article How United Airlines Just Made It a Lot Easier to Check Your Bags originally appeared on Fool.com.
Casey Kelly Barton 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.
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United Airlines passengers departing from Chicago's O'Hare airport can add another DIY task to their pre-flight checklist: tagging their own checked luggage. Alaska Airlines lets passengers on select nonstop flights print bag tags at the airport or at home after checking in online. The airline has installed automated passport-control kiosks in Chicago, Newark, and Houston over the past year to cut down on customs wait times for returning passengers.
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To take advantage of the new program, United passengers at O'Hare who have already checked in on their mobile devices can print bag tag stickers at the carrier's check-in kiosks, drop their tagged luggage at a separate bag drop counter, and move on. Lightening the checked baggage load United isn't the first airline to offer self-service bag check-in, and it already offers the service at some other airports, including Boston Logan. Eight of United's 10 renovated gates in Boston give fliers the option to scan their own boarding passes, "making boarding quicker for everyone and facilitating on-time departures," according to a company press release.
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To take advantage of the new program, United passengers at O'Hare who have already checked in on their mobile devices can print bag tag stickers at the carrier's check-in kiosks, drop their tagged luggage at a separate bag drop counter, and move on. While the Tribune noted that self-checking doesn't reduce passengers' checked bag fees, it's hard to see the downside to staying out of the ticket counter line if all you need to do is drop a bag. Lightening the checked baggage load United isn't the first airline to offer self-service bag check-in, and it already offers the service at some other airports, including Boston Logan.
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While the Tribune noted that self-checking doesn't reduce passengers' checked bag fees, it's hard to see the downside to staying out of the ticket counter line if all you need to do is drop a bag. New tech to move passengers more quickly United has been busy automating other parts of the airport experience this year, too. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8591.0
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2014-08-30 00:00:00 UTC
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How to Get Your Name On a Stadium
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AAL
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https://www.nasdaq.com/articles/how-get-your-name-stadium-2014-08-30
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nan
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nan
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Once upon a time, the naming of sports facilities tended to follow certain conventions. In most cases they were titled after either the team they housed (Giants Stadium), a VIP connected with the franchise (Wrigley Field), or their geographic location (Madison Square Garden).
But today, in a world stuffed with rich companies eager to spend marketing dollars, the name written in giant letters across a sports facility more often than not belongs to a corporation.
Your Name Here
Given that they typically involve many millions of dollars and publicly traded companies, the processes of selling and buying naming rights can be surprisingly opaque.
That's likely because the entity granting those privileges -- generally, the team itself -- is a small, somewhat secretive organization compared to the firm doing the buying. Oftentimes, it's unclear who approaches who, why the winning namer is chosen, and how the parties settle on the price and duration of their deal.
What is certain is that there's usually a lot of cash involved. British bank Barclays is spending $200 million over 20 years to be the name on the arena where the NBA's Brooklyn Nets play. And that's half as much as the deal reached in the neighboring borough of Queens that obligated Citigroup to pony up $20 million per year for similar rights across two decades with baseball's New York Mets.
It helps to be a major financial firm with buckets of cash for this kind of activity. Case in point, Bank of America , is now paying $7 million per year to have its name grace the stadium in Charlotte where the NFL's Carolina Panthers play on Sundays.
Further down the city/team chain, companies can go athletic for relatively bargain rates. Retailer Target , for instance, shells out an estimated $1.5 million annually for the den of the NBA's Minnesota Timberwolves, the Target Center.
Low-Cost Publicity
Those deals sound pricey, but from the namers' standpoint they can be a relative bargain. The $7 million Bank of America pays the Panthers every year is petty cash compared to the over $1.8 billion it spent on total marketing expenses in fiscal 2013.
The same goes for Coca-Cola . The company hands over a bit north of $6 million yearly to keep the name of its orange juice line, Minute Maid, on the Houston Astros' baseball stadium.
Meanwhile, the soda overlord's grand total for advertising in 2013 was over 500 times as much, at $3.3 billion.
Their Name Is Mud
But naming a stadium isn't necessarily a home run/slam dunk/hat trick for all parties concerned. More than once, a company has run into difficulties during their title tenure.
The economy was seemingly healthy in 2006 when Citigroup and the Mets announced their deal on Citi Field. Two years later, the recession sank its deep claws into the financial sector. The bank suffered near-mortal wounds, necessitating one of the priciest bailouts from the government's Troubled Asset Relief Program.
Suddenly, to many, a $400 million investment into a baseball stadium seemed like an irresponsible waste of money.
From the team's side, meanwhile, it (literally) pays to be selective about which entities it grants naming privileges.
Before the Astros played in a ballpark named after that orange juice, their stadium bore the moniker of one of the most notorious groups of financial cheaters in history.
The place was called Enron Field from its opening in 2000 until just after that firm's inglorious collapse the following year. The Astros had to pay $2.1 million to Enron in order to break their 30-year, $100 million contract for the name.
By Any Other Name...
Although it's tempting to sell the identity of a stadium/arena to a well-heeled bidder for millions, certain teams don't have that luxury. That's because some facilities have such strong name recognition.
So it was with the NFL's San Francisco 49ers, which in 1995 began to sell the naming rights to its storied Candlestick Park. The idea of a name change to 3com or, especially, Monster Park, didn't sit well with fans, and went so far as to vote yes to a ballot initiative that (among other measures) enshrined the old name.
Meanwhile, venues like Chicago's Soldier Field and Yankee Stadium have too much history and tradition wrapped up in their identities. It's telling that when the latter team built a new facility last decade, it didn't consider selling naming rights at all.
But for many owners, those big payouts from deep corporate pockets are too enticing to resist. For proof, just go see a game at FedEx Forum, AmericanAirlines Arena, American Airlines Center, AT&T Park, Time Warner Cable Arena, or the Pepsi Center...
The article How to Get Your Name On a Stadium originally appeared on Fool.com.
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.
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In most cases they were titled after either the team they housed (Giants Stadium), a VIP connected with the franchise (Wrigley Field), or their geographic location (Madison Square Garden). But today, in a world stuffed with rich companies eager to spend marketing dollars, the name written in giant letters across a sports facility more often than not belongs to a corporation. And that's half as much as the deal reached in the neighboring borough of Queens that obligated Citigroup to pony up $20 million per year for similar rights across two decades with baseball's New York Mets.
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But today, in a world stuffed with rich companies eager to spend marketing dollars, the name written in giant letters across a sports facility more often than not belongs to a corporation. Your Name Here Given that they typically involve many millions of dollars and publicly traded companies, the processes of selling and buying naming rights can be surprisingly opaque. The $7 million Bank of America pays the Panthers every year is petty cash compared to the over $1.8 billion it spent on total marketing expenses in fiscal 2013.
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Your Name Here Given that they typically involve many millions of dollars and publicly traded companies, the processes of selling and buying naming rights can be surprisingly opaque. Case in point, Bank of America , is now paying $7 million per year to have its name grace the stadium in Charlotte where the NFL's Carolina Panthers play on Sundays. The company hands over a bit north of $6 million yearly to keep the name of its orange juice line, Minute Maid, on the Houston Astros' baseball stadium.
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The $7 million Bank of America pays the Panthers every year is petty cash compared to the over $1.8 billion it spent on total marketing expenses in fiscal 2013. The Astros had to pay $2.1 million to Enron in order to break their 30-year, $100 million contract for the name. It's telling that when the latter team built a new facility last decade, it didn't consider selling naming rights at all.
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8592.0
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2014-08-27 00:00:00 UTC
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Stocks: The Trouble With Travel
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AAL
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https://www.nasdaq.com/articles/stocks-trouble-travel-2014-08-27
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nan
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nan
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Yesterday American Airlines (AAL) and their recent acquisition US Airways, in a move that will have shocked those who have spent the last five years under a rock, announced that they would no longer be listing their flights and fares on Orbitz (OWW). Okay, so the sarcasm may be a little overdone, but this is just the latest in a long-running dispute between the online booking agent and the giant carrier. The airline first pulled their flights from the site in 2010, prompting a legal battle that American lost. This time, though, it may be different.
The outcome of the lawsuit that followed was a ruling by an Illinois court that American had to list on Orbitz. That ruling was in turn followed by an American Airways suit against Orbitz, which was settled out of court, claiming that the online listing company was deliberately giving less prominence to their flights than they gave to competitors. As you can see, it has been a rocky relationship.
The initial market reaction to the news has been quite revealing. Both stocks traded lower, but AAL lost less than 1 percent yesterday, while OWW dropped over 4.5 percent. That makes perfect sense and is a pattern that I expect to see continue as the two companies’ respective industries are in different stages of development, and consequently the airline has a lot more power in price negotiations than the website.
The airline business, after years of inefficiency exploited by a rash of new, dynamic, low cost carriers, has been moving toward consolidation in the last couple of years. Major carriers have cut costs (and flights) and now are somewhat more competitive with the discount airlines where they have to be, while taking advantage of their monopoly positions in smaller markets.
As an example, for me to fly this weekend from the regional airport near where I live to a major city, which is only a 45 minute flight away, where American Airlines is my only option, would cost roughly $520. I know it is Labor Day weekend and short notice, but that represents some serious pricing power.
Online booking, on the other hand, is still seeing increasing competition as metasearch engines such as Kayak, which has been owned by The Priceline Group (PCLN) since 2012, Momondo, Hipmunk and a host of others gain traffic. They compare prices on different booking sites for customers. In other words, while the airlines still have areas of business with significant pricing power and little competition, online booking sites do not. That explains why, in my sample search, there was only $1 between the highest and lowest prices available from multiple sites.
The airlines’ pricing power may be frustrating to travelers, but until it changes it gives companies such as American Airlines a backstop when competition heats up. For that reason the forward P/E of AAL, at below 8 looks way too low and the stock is still undervalued.
OWW, however, is anything but cheap at a forward P/E of just under 20. Once again, in disputes about fees with booking sites, it is the big airlines that hold the pricing power. Assuming that American faces no legal difficulty this time around, Orbitz will be the loser in this battle; American has plenty of other places to place their tickets. Given the plethora of other sites available and the fact that most prospective customers use either metasearch or regular search engines such as Google (GOOG) in their initial search for flights, it would seem that Orbitz and other sites need American Airlines more than the other way around.
Ultimately not being listed on Orbitz will do little or no harm to AAL, especially as this decision is only in regard to individual bookings. Businesses using Orbitz will still see American and US Airways flights listed. For Orbitz, and other travel booking sites, though, it could be indicative of a period of further margin squeezing. If, as I suspect, not being on every site is shown not to hurt an airline, then future discussions on commissions paid to the booking sites will look very different.
Once again, as frustrating as it may be for consumers, the big airlines will have the upper hand when it comes to pricing. That may result in your flights costing a few bucks more, but it is good for stock in American Airlines.
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.
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Yesterday American Airlines (AAL) and their recent acquisition US Airways, in a move that will have shocked those who have spent the last five years under a rock, announced that they would no longer be listing their flights and fares on Orbitz (OWW). Both stocks traded lower, but AAL lost less than 1 percent yesterday, while OWW dropped over 4.5 percent. For that reason the forward P/E of AAL, at below 8 looks way too low and the stock is still undervalued.
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Yesterday American Airlines (AAL) and their recent acquisition US Airways, in a move that will have shocked those who have spent the last five years under a rock, announced that they would no longer be listing their flights and fares on Orbitz (OWW). Both stocks traded lower, but AAL lost less than 1 percent yesterday, while OWW dropped over 4.5 percent. For that reason the forward P/E of AAL, at below 8 looks way too low and the stock is still undervalued.
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Yesterday American Airlines (AAL) and their recent acquisition US Airways, in a move that will have shocked those who have spent the last five years under a rock, announced that they would no longer be listing their flights and fares on Orbitz (OWW). Both stocks traded lower, but AAL lost less than 1 percent yesterday, while OWW dropped over 4.5 percent. For that reason the forward P/E of AAL, at below 8 looks way too low and the stock is still undervalued.
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Yesterday American Airlines (AAL) and their recent acquisition US Airways, in a move that will have shocked those who have spent the last five years under a rock, announced that they would no longer be listing their flights and fares on Orbitz (OWW). Both stocks traded lower, but AAL lost less than 1 percent yesterday, while OWW dropped over 4.5 percent. For that reason the forward P/E of AAL, at below 8 looks way too low and the stock is still undervalued.
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8593.0
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2014-08-27 00:00:00 UTC
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In the news: DISH protests Comcast deal, Apple making a bigger iPad and more
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AAL
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https://www.nasdaq.com/articles/news-dish-protests-comcast-deal-apple-making-bigger-ipad-and-more-2014-08-27
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nan
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nan
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Wednesday headlines include: Dish Network protesting Comcast's merger with Time Warner, Orbits loses two big airlines, Apple making a larger iPad, AT&T combining its wireless and business units and a former AIG CEO's lawsuit against the federal government is allowed to proceed.
DISH Network
Satellite television provider DISH Network ( DISH ) filed a petition with the Federal Communications Commission to block the merger of rivals Comcast ( CMCSA ) and Time Warner Cable ( TWC ). DISH said the deal would cause "irreparable harm" to consumers and the industry. DISH cited discriminatory data caps and restriction of third-party online rights among the issues it sees stemming from a merger of the nation's two largest cable television providers.
Orbitz
Online travel booker Orbitz ( OWW ) saw its shares drop Tuesday after American Airlines and U.S. Airways ( AAL ) pulled their flight listings from the company's websites. The move is the latest step in a long-running dispute over the fees that Orbitz charges to list and sell the flights. Corporate customers of the airlines will still be able to book through Orbitz, but people booking personal travel will have to use a different service.
Apple
Tech-giant Apple (AAPL) isn't just prepping a larger iPhone, the company is also working on a new, larger format iPad. According to sources who spoke to Bloomberg, production on a version of the tablet computer is expected to start in the first quarter of 2015. The bigger model will have a 12.9-inch screen.
AT&T
Telecommunications giant AT&T (T) is combining its wireless and business units into a single entity lead by the former head of the wireless operation, Ralph de la Vega. The company is facing increased competition from cable companies and other nontraditional telecommunications providers. To counter that, AT&T is trying to make its services more seamless, with a single unit that can provide support for wireless and wireline services.
American International Group
The federal government lost its bid to have a more than $25 billion lawsuit tossed out of court on Tuesday. The suit brought by former AIG (AIG) CEO Maurice Greenberg, claims the government acted illegally when it bailed out the insurer by diluting existing shareholders. Judge Thomas Wheeler said that the complexity of the issues in the case and the factual disagreements "strongly point to the need for a trial."
This article was originally published on MarketIntelligeneCenter.com
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.
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Orbitz Online travel booker Orbitz ( OWW ) saw its shares drop Tuesday after American Airlines and U.S. Airways ( AAL ) pulled their flight listings from the company's websites. Wednesday headlines include: Dish Network protesting Comcast's merger with Time Warner, Orbits loses two big airlines, Apple making a larger iPad, AT&T combining its wireless and business units and a former AIG CEO's lawsuit against the federal government is allowed to proceed. DISH cited discriminatory data caps and restriction of third-party online rights among the issues it sees stemming from a merger of the nation's two largest cable television providers.
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Orbitz Online travel booker Orbitz ( OWW ) saw its shares drop Tuesday after American Airlines and U.S. Airways ( AAL ) pulled their flight listings from the company's websites. Wednesday headlines include: Dish Network protesting Comcast's merger with Time Warner, Orbits loses two big airlines, Apple making a larger iPad, AT&T combining its wireless and business units and a former AIG CEO's lawsuit against the federal government is allowed to proceed. DISH Network Satellite television provider DISH Network ( DISH ) filed a petition with the Federal Communications Commission to block the merger of rivals Comcast ( CMCSA ) and Time Warner Cable ( TWC ).
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Orbitz Online travel booker Orbitz ( OWW ) saw its shares drop Tuesday after American Airlines and U.S. Airways ( AAL ) pulled their flight listings from the company's websites. Wednesday headlines include: Dish Network protesting Comcast's merger with Time Warner, Orbits loses two big airlines, Apple making a larger iPad, AT&T combining its wireless and business units and a former AIG CEO's lawsuit against the federal government is allowed to proceed. DISH Network Satellite television provider DISH Network ( DISH ) filed a petition with the Federal Communications Commission to block the merger of rivals Comcast ( CMCSA ) and Time Warner Cable ( TWC ).
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Orbitz Online travel booker Orbitz ( OWW ) saw its shares drop Tuesday after American Airlines and U.S. Airways ( AAL ) pulled their flight listings from the company's websites. Wednesday headlines include: Dish Network protesting Comcast's merger with Time Warner, Orbits loses two big airlines, Apple making a larger iPad, AT&T combining its wireless and business units and a former AIG CEO's lawsuit against the federal government is allowed to proceed. DISH Network Satellite television provider DISH Network ( DISH ) filed a petition with the Federal Communications Commission to block the merger of rivals Comcast ( CMCSA ) and Time Warner Cable ( TWC ).
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8594.0
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2014-08-24 00:00:00 UTC
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The Best Airlines: Why JetBlue Makes the Cut and American Doesn't
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AAL
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https://www.nasdaq.com/articles/best-airlines-why-jetblue-makes-cut-and-american-doesnt-2014-08-24
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nan
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nan
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Come Sept. 1, American Airlines Group will no longer offer first-class and business-class meal service on flights shorter than two hours and 45 minutes.
For American, the change is practical. A spokesperson toldThe Los Angeles Times that the carrier is in the process of synchronizing operations with acquired peer US Airways, which in April set a similar cutoff. For me, the change is more evidence of a movement to increase fees and cut perks industrywide .
Are there any carriers left that deliver premium perks at a price that's within reach for everyday business fliers? After looking at the data, I think JetBlue Airways may be among this increasingly rare breed.
JetBlue's mix of enhanced services and reasonable fees makes it one of the best airlines. Credit: JetBlue
Stacked up, ready to taxi
In particular, I took SKYTRAX's ranking data for overall performance, Airfarewatchdog.com's breakdown of known fees, and added in operating margin data from S&P Capital IQ. My goal? Find a carrier that didn't splurge too much on fees to fund margins while also delivering quality service as determined by an outside evaluator. (In this case, SKYTRAX.)
To be fair, the data reflects the entirety of each airline's performance. And yet if you consider that a huge portion of daily commercial flights are inter-U.S. business travel -- i.e., flights of three hours or less -- these rankings must naturally skew to reflect the experience of short-haul frequent fliers.
Why these sources, in particular? S&P Capital IQ does a good job of accounting for anomalies and one-time items in calculating margins, making comparisons easier. SKYTRAX has been ranking national and international airlines for years using a variety of criteria. Airfarewatchdog.com tracks airfares and offers would-be passengers money-saving tips and access to cheap tickets.
Now, let's review how the major American independent carriers ranked:
Sources: SKYTRAX , S&P Capital IQ , and Airfarewatchdog.com
* Includes significant one-time items
Sometimes, the best airlines are gougers
Frankly, I was surprised with the fees that some carriers levied.
Heaping on fees doesn't necessarily lead to a worse experience . Virgin America isn't exactly cheap when it comes to add-ons with a max of $1,319, according to my read of Airfarewatchdog's data. The killer on its list: up to $399 each way for upgrades.
Big fees don't always equal big margins . Both American and United Continental list fees fit for a big spender, but you wouldn't know that from their operating margins. Other costs are taking too large a toll for these carriers to earn a profit on fees the way that Spirit Airlines does.
Carriers with the best cost controls, win . Not surprisingly, Southwest levied the fewest fees among the carriers I saw on Airfarewatchdog's list. Yet the carrier also had one of the better operating margins, coming in just under JetBlue. Fervent cost controls and operating with an all-737 fleet, boosting maintenance efficiency, appears to be having an impact.
JetBlue: premium services from a lower-fare airline
Of them all, none are so promising as JetBlue, though I suspect that Alaska gets close. The carrier's decent but not overwhelming fee schedule and double-digit operating margins might even put it over the top. The problem is that SKYTRAX ranks it a three-star airline; it doesn't rank among the top tier. Fresh competition from Delta in Seattle could make it difficult for Alaska to climb the ladder next year, as well.
Meanwhile, JetBlue is earning high marks for service while building a better flying experience. Consider the "Even More" program , through which the carrier sells extra legroom to A320 passengers. There's also "Mint," a premium cabin service offered on flights between New York and Los Angeles. Flights to San Francisco begin in October. What's interesting is that JetBlue started by pitching Mint and its lie-flat service for $599 each way -- a steep discount to first-class fares shopped by larger peers. Even if prices increase over time, which they will, JetBlue should be able to take plenty of premium business from the likes of American and United.
Final takeaway
Ranking the best airlines is a subjective process and Virgin America also scored well in SKYTRAX's rankings, naming it the top low-cost carrier for 2013. JetBlue, for its part, is moving upmarket, delivering a premium experience at a reasonable price -- earning accolades and improving margins along the way. Add in a growing fleet of new, fuel-efficient aircraft and improvements for boosting efficiency and you've a stock poised to keep climbing.
Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But 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 has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here !
The article The Best Airlines: Why JetBlue Makes the Cut and American Doesn't originally appeared on Fool.com.
Tim Beyers is a member of theMotley Fool Rule Breakersstock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+ , Tumblr , or Twitter, where he goes by @milehighfool . You can also get his insights delivered directly to your RSS reader .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.
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Come Sept. 1, American Airlines Group will no longer offer first-class and business-class meal service on flights shorter than two hours and 45 minutes. A spokesperson toldThe Los Angeles Times that the carrier is in the process of synchronizing operations with acquired peer US Airways, which in April set a similar cutoff. What's interesting is that JetBlue started by pitching Mint and its lie-flat service for $599 each way -- a steep discount to first-class fares shopped by larger peers.
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Credit: JetBlue Stacked up, ready to taxi In particular, I took SKYTRAX's ranking data for overall performance, Airfarewatchdog.com's breakdown of known fees, and added in operating margin data from S&P Capital IQ. Now, let's review how the major American independent carriers ranked: Sources: SKYTRAX , S&P Capital IQ , and Airfarewatchdog.com * Includes significant one-time items Sometimes, the best airlines are gougers Frankly, I was surprised with the fees that some carriers levied. JetBlue, for its part, is moving upmarket, delivering a premium experience at a reasonable price -- earning accolades and improving margins along the way.
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Credit: JetBlue Stacked up, ready to taxi In particular, I took SKYTRAX's ranking data for overall performance, Airfarewatchdog.com's breakdown of known fees, and added in operating margin data from S&P Capital IQ. Find a carrier that didn't splurge too much on fees to fund margins while also delivering quality service as determined by an outside evaluator. Now, let's review how the major American independent carriers ranked: Sources: SKYTRAX , S&P Capital IQ , and Airfarewatchdog.com * Includes significant one-time items Sometimes, the best airlines are gougers Frankly, I was surprised with the fees that some carriers levied.
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Credit: JetBlue Stacked up, ready to taxi In particular, I took SKYTRAX's ranking data for overall performance, Airfarewatchdog.com's breakdown of known fees, and added in operating margin data from S&P Capital IQ. Both American and United Continental list fees fit for a big spender, but you wouldn't know that from their operating margins. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8595.0
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2014-08-23 00:00:00 UTC
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5 Things American Airlines Group Inc.'s Management Wants You to Know
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AAL
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https://www.nasdaq.com/articles/5-things-american-airlines-group-incs-management-wants-you-know-2014-08-23
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nan
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nan
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Late last month, American Airlines Group reported that it earned the highest quarterly profit in its history during Q2. From a financial perspective, the company's merger with US Airways has been very lucrative thus far.
On the company's conference call, American Airlines' top executives talked about a variety of issues related to the company's merger process and global demand trends. Here are five key points that American's management wants investors to know.
The merger integration process is on track
"It's sometimes hard to remember that just less than eight months ago, American was in bankruptcy and getting ready to emerge from bankruptcy through our merger with US Airways. Yet today, here we are reporting record profits. ... There's a tremendous amount of work ahead, as we all know. But what we do know is this performance is evidence that we are on the right track and it gives us confidence as we move forward." --Doug Parker, American Airlines CEO
American Airlines is making good progress on its merger integration. Photo: American Airlines
It is still very early in the American Airlines-US Airways merger process. The main integration activities that have occurred so far have been the implementation of code-sharing between American Airlines and US Airways, harmonization of their frequent-flier programs, and combining airport operations like check-in counters.
Even with fairly small changes, American Airlines has seen a significant improvement in its profitability simply from gaining scale. Cost synergies will start to arrive next year, helping the company keep unit costs roughly flat in 2015.
Meanwhile, American Airlines is just starting to implement initiatives to boost unit revenue. These include reworking hub schedules to allow smoother connections, redeploying aircraft across the combined American Airlines-US Airways network, and focusing more flights on peak days/times.
Air travel demand is high throughout the world
"As far out as we can see, we expect the domestic environment to remain strong and I would even say, the international environment is strong." --American Airlines President Scott Kirby
Most U.S. airlines have been reporting very strong demand for domestic routes in the past couple of years. Capacity discipline has helped drive domestic fares higher, leading to record earnings across much of the U.S. airline industry.
However, American Airlines' management team emphasized that air travel demand is very strong outside of the U.S. as well. That said, international unit revenue trends have been weaker as many airlines (including American) are adding flights between the U.S. and the rest of the world.
Nevertheless, it's much better to have strong demand and modest overcapacity than to have less capacity and weak travel demand. American Airlines is cutting some international capacity for the fall and winter in order to bolster unit revenue trends going forward.
American's expansion in Asia is succeeding so far
"When you look out, you have 10% capacity growth across the Pacific. We have even higher capacity growth and we are going to have RASM[a measure of unit revenue] up. That is huge revenue growth." --American Airlines President Scott Kirby
In June, American Airlines started new routes to Hong Kong and Shanghai from its largest hub at Dallas-Fort Worth International Airport. The addition of these routes will drive dramatic transpacific capacity growth starting this quarter, as American was beginning with a fairly small footprint in Asia.
American Airlines' growth in China is off to a strong start. Photo: American Airlines
Typically, this level of growth would hurt unit revenue, as long-haul routes take a few years to "mature." Nevertheless, American Airlines expects to grow transpacific unit revenue in Q3, a testiment to the strength of demand.
That said, the jury is out on how Asian unit revenue will hold up looking out to Q4 and beyond. Last fall, American Airlines canceled an unsuccessful flight from New York to Tokyo's Haneda Airport. This means comparisons will get tougher beginning in late Q4. Additionally, Q3 is the peak travel season -- it won't be quite as easy for American to fill its new flights to Asia in the fall and winter.
Venezuela's currency issues are a major headwind -- for now
"In the third quarter of last year, Venezuela was only 0.5% of AA system capacity, but would have been 2% of our total combined consolidated revenue. This year, we've canceled most of our Venezuela flying ... which means that our system PRASM in Q3 is negatively affected by almost a full 1.5% ...." --American Airlines President Scott Kirby
Last year, Venezuelan travel demand was artificially inflated by a loophole that let Venezuelan nationals exchange money at a favorable rate if they traveled abroad. (The dollars they received could then be resold for a profit on the black market.)
Venezuela's government has cracked down on this activity. It is also refusing to help airlines exchange Venezuelan bolivars for dollars. American Airlines has historically been the leading carrier between the U.S. and Venezuela, and so it is experiencing the biggest negative impact from Venezuela's currency problems.
Now, American Airlines is dramatically cutting back service to Venezuela to reduce the risk of currency losses. However, these flights were extremely profitable last year, so the service reductions will depress unit revenue in Q3 and Q4. The impact will peak in Q4, when the Venezuelan flight cuts could reduce American's unit revenue by about 2 percentage points.
It's too early to estimate the impact of Southwest's expansion in Dallas
"We don't see anything in our numbers yet that's identifiable, but we know there will be an impact from [ Southwest Airlines' expansion in Washington D.C. and Dallas]. The Wright Amendment impact will be larger than in D.C., but we aren't seeing anything yet." --American Airlines President Scott Kirby
Southwest Airlines' growth in Dallas will create a drag on American's unit revenue beginning this fall. Photo: The Motley Fool
Southwest Airlines will expand later this year in two key American Airlines hub markets: Dallas and Washington D.C. Southwest's growth is enabled by the phase-out of restrictions on long-haul flights at Dallas Love Field and the airline's acquisition of flight slots at Reagan Airport in Washington, D.C.
The introduction of meaningful competition on a number of routes that American Airlines currently dominates will clearly have a negative impact on unit revenue. American Airlines executives stated on the recentearnings callthat they expect the biggest impact on point-to-point travel in Dallas.
However, the Love Field flight restrictions don't expire until mid-October. As of last month, it was still too early for American Airlines to estimate the impact of new competition from Southwest Airlines. Investors will have to wait until October for more information.
Foolish bottom line
By and large, American Airlines had an extremely successful spring quarter, and Q3 is shaping up to be strong as well. The merger integration process is beginning in earnest, and it should deliver even bigger benefits starting this fall and heading into 2015.
This is great news for investors, because American Airlines may also start to feel unit revenue pressure from its growth in Asia and Southwest Airlines' expansion in Dallas starting later this year. Merger synergies will hopefully enable American to keep its earnings stable or growing despite these headwinds.
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The article 5 Things American Airlines Group Inc.'s 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 - 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.
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The main integration activities that have occurred so far have been the implementation of code-sharing between American Airlines and US Airways, harmonization of their frequent-flier programs, and combining airport operations like check-in counters. These include reworking hub schedules to allow smoother connections, redeploying aircraft across the combined American Airlines-US Airways network, and focusing more flights on peak days/times. The addition of these routes will drive dramatic transpacific capacity growth starting this quarter, as American was beginning with a fairly small footprint in Asia.
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The addition of these routes will drive dramatic transpacific capacity growth starting this quarter, as American was beginning with a fairly small footprint in Asia. This year, we've canceled most of our Venezuela flying ... which means that our system PRASM in Q3 is negatively affected by almost a full 1.5% ...." --American Airlines President Scott Kirby Last year, Venezuelan travel demand was artificially inflated by a loophole that let Venezuelan nationals exchange money at a favorable rate if they traveled abroad. --American Airlines President Scott Kirby Southwest Airlines' growth in Dallas will create a drag on American's unit revenue beginning this fall.
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--American Airlines President Scott Kirby Southwest Airlines' growth in Dallas will create a drag on American's unit revenue beginning this fall. Photo: The Motley Fool Southwest Airlines will expand later this year in two key American Airlines hub markets: Dallas and Washington D.C. Southwest's growth is enabled by the phase-out of restrictions on long-haul flights at Dallas Love Field and the airline's acquisition of flight slots at Reagan Airport in Washington, D.C. This is great news for investors, because American Airlines may also start to feel unit revenue pressure from its growth in Asia and Southwest Airlines' expansion in Dallas starting later this year.
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Photo: American Airlines It is still very early in the American Airlines-US Airways merger process. --American Airlines President Scott Kirby Southwest Airlines' growth in Dallas will create a drag on American's unit revenue beginning this fall. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8596.0
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2014-08-22 00:00:00 UTC
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United Airlines to Better Dining Options for Domestic Fliers - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/united-airlines-to-better-dining-options-for-domestic-fliers-analyst-blog-2014-08-22
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nan
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nan
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In an effort to augment travelers' on-board experience, United Continental Holdings Inc. ( UAL ) has launched intriguing food and beverage options for its domestic premium customers. The latest offering will include four new salad choices, replacing the previous chicken and shrimp salad options.
Beginning Sep 1, 2014, premium cabin customers within North America will get chilled sandwiches and wraps, which includes Italian prosciutto on tomato focaccia, Cobb salad wrap, a Thai style chicken wrap and caprese on Asiago baguette. Apart from these, new warm sandwich options will also feature on the menu.
The new salads and sandwiches will be served fresh with a gluten-free soup, along with the carrier's traditional offerings which include warmed nuts, premium snacks and warmed cookies. In addition, beginning this fall, first and business class customers will be able to enjoy a glass of Prosecco - an Italian sparkling white wine - on all of United Airlines' North American flights.
In early 2015, United Airlines plans to offer premium cabin meals on flights that travel more than 2 hours 20 minutes or span 800 miles. According to the Chicago-based carrier, more than 100 daily flights under the United Airlines banner will offer the new menu to passengers availing its services.
Further, United Airlines intends to serve freshly prepared food to the front cabin passengers of United Express in place of the snack boxes served currently. Meanwhile, economy class passengers on all long-haul flights will be served enhanced meals and beverages, subject to departure and arrival timings, flight duration, and places of origin and destination.
United Airlines' decision to revamp its on-board menu comes right on the heels of rival American Airlines Group Inc.'s ( AAL ) decision to curtail food service for premium passengers on flights shorter than 2 hours 45 minutes. The largest carrier in the U.S. has expressed its intention to have a similar food policy for its group carrier U.S. Airways as well.
Meanwhile, Delta Air Lines Inc. ( DAL ), which upgrades in-flight food options on a regular basis, offers meals for its domestic premium passengers on flights spanning 900 miles or more. However, as an exception, all traditional carriers including United Airlines provide full meals on a number of shorter flights on popular and significant business routes.
Passenger carriers in the U.S. consider it a customary investment to enhance customers' in-flight experience to counter competition. United Airlines ensures that it does not lag behind in this regard. The carrier has introduced lie-flat premium seats on all its long haul international flights apart from offering Wi-Fi service and in-flight entertainment. The culinary revamp is yet another attempt by the carrier to remain competitive and lure higher number of domestic passengers.
United Airlines currently carries a Zacks Rank #1 (Strong Buy). Another stock worth considering is Southwest Airlines Co. ( LUV ), with a similar 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
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.
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United Airlines' decision to revamp its on-board menu comes right on the heels of rival American Airlines Group Inc.'s ( AAL ) decision to curtail food service for premium passengers on flights shorter than 2 hours 45 minutes. 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. In an effort to augment travelers' on-board experience, United Continental Holdings Inc. ( UAL ) has launched intriguing food and beverage options for its domestic premium customers.
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United Airlines' decision to revamp its on-board menu comes right on the heels of rival American Airlines Group Inc.'s ( AAL ) decision to curtail food service for premium passengers on flights shorter than 2 hours 45 minutes. 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. In early 2015, United Airlines plans to offer premium cabin meals on flights that travel more than 2 hours 20 minutes or span 800 miles.
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United Airlines' decision to revamp its on-board menu comes right on the heels of rival American Airlines Group Inc.'s ( AAL ) decision to curtail food service for premium passengers on flights shorter than 2 hours 45 minutes. 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. Further, United Airlines intends to serve freshly prepared food to the front cabin passengers of United Express in place of the snack boxes served currently.
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United Airlines' decision to revamp its on-board menu comes right on the heels of rival American Airlines Group Inc.'s ( AAL ) decision to curtail food service for premium passengers on flights shorter than 2 hours 45 minutes. 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 new salads and sandwiches will be served fresh with a gluten-free soup, along with the carrier's traditional offerings which include warmed nuts, premium snacks and warmed cookies.
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8597.0
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2014-08-19 00:00:00 UTC
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Noteworthy ETF Outflows: VXF, AAL, LVS, LBTYA
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AAL
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https://www.nasdaq.com/articles/noteworthy-etf-outflows-vxf-aal-lvs-lbtya-2014-08-19
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nan
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nan
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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 $34.6 million dollar outflow -- that's a 1.0% decrease week over week (from 41,031,246 to 40,631,493). Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is down about 0.1%, Las Vegas Sands Corp (Symbol: LVS) is up about 0.5%, and Liberty Global plc (Symbol: LBTYA) is lower by about 0.3%. 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 $72.39 per share, with $88.99 as the 52 week high point - that compares with a last trade of $86.95. 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.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is down about 0.1%, Las Vegas Sands Corp (Symbol: LVS) is up about 0.5%, and Liberty Global plc (Symbol: LBTYA) is lower by about 0.3%. 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 $72.39 per share, with $88.99 as the 52 week high point - that compares with a last trade of $86.95. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is down about 0.1%, Las Vegas Sands Corp (Symbol: LVS) is up about 0.5%, and Liberty Global plc (Symbol: LBTYA) is lower by about 0.3%. 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 $72.39 per share, with $88.99 as the 52 week high point - that compares with a last trade of $86.95. 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).
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is down about 0.1%, Las Vegas Sands Corp (Symbol: LVS) is up about 0.5%, and Liberty Global plc (Symbol: LBTYA) is lower by about 0.3%. 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 $34.6 million dollar outflow -- that's a 1.0% decrease week over week (from 41,031,246 to 40,631,493). 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 $72.39 per share, with $88.99 as the 52 week high point - that compares with a last trade of $86.95.
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Among the largest underlying components of VXF, in trading today American Airlines Group Inc (Symbol: AAL) is down about 0.1%, Las Vegas Sands Corp (Symbol: LVS) is up about 0.5%, and Liberty Global plc (Symbol: LBTYA) is lower by about 0.3%. 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 $34.6 million dollar outflow -- that's a 1.0% decrease week over week (from 41,031,246 to 40,631,493). Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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8598.0
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2014-08-17 00:00:00 UTC
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How Biofuels and The Boeing Company Are Reshaping the Global Aviation Industry
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AAL
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https://www.nasdaq.com/articles/how-biofuels-and-boeing-company-are-reshaping-global-aviation-industry-2014-08-17
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nan
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nan
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Source: Airlines for America .
There are two ways to decrease the amount of petroleum fuel used: (1) purchase more efficient aircraft and (2) purchase renewable drop-in fuels such as renewable jet and renewable diesel. Having multiple fuels to choose from reduces a company's exposure to risk from pricing pressures in any single market, thereby decreasing the volatility of a company's fuel expenditures. In a 63 billion gallon per year industry, taking advantage of even small price fluctuations between acceptable fuels could be the difference between profit and loss. Additionally, several types of renewable jet fuels are more energy dense than petroleum fuels, meaning jet engines would require less fuel to travel the same distance. It's a win-win.
While renewable fuels for aviation may sound like more of a pipedream at the moment, there are currently around 800 million gallons of renewable diesel (a second-generation drop-in diesel fuel not to be confused with biodiesel) capacity worldwide. Yet, if dedicated solely to aviation, it would only meet 1.3% of the industry's needs. A concerted effort will be needed to catalyze development and expand the market -- and that's exactly what many companies and governments have set out to do.
What momentum?
Since 2008 airlines around the world have been conducting demonstration flights powered in part by renewable aviation fuels and gobbling up offtake agreements with renewable fuel producers. Honeywell International has powered more than 20 demonstration flights for military and commercial partners with its Green Jet Fuel. The renewable fuel is made from renewable, non-food feedstocks and can be used in 50/50 blends with petroleum fuels, has a higher energy density than petroleum fuels, and can result in 65%-80% reductions in greenhouse gas emissions. Honeywell is also one of the refiners working with renewable oils manufacturer Solazyme on its own long-term quest to create cost-competitive aviation fuels .
There are plenty more demonstration flights -- more than 1,500 actually -- and investments to choose from. Some notable selections:
In 2011 Alaska Air Group paid $16 per gallon for a biofuel made from used cooking oils to power 75 passenger flights.
Also in 2011, Qantas signed a non-binding letter of intent with Solazyme to purchase 200 million-400 million liters of renewable jet fuel per year.
In 2013 United Airlines committed to purchasing 15 million gallons of renewable diesel through 2016 from AltAir.
In April British Airways partnered with Solena Fuels to produce 50,000 metric tons of renewable jet fuel per year from London's garbage . The airline agreed to purchase about $510 million worth of fuel over an 11-year period.
In June synthetic biology pioneer Amyris and its partner Total SA gained ASTM approval for drop-in jet fuel containing up to 10% farnesene-based renewable fuel. The first international commercial flight took place the next month when Brazilian airline GOL flew a Boeing 737 from Florida to Brazil -- a route that will now use the fuel regularly .
Earlier this month, Boeing partnered with South African Airways to create renewable jet fuel from tobacco plants engineered for use as energy feedstocks.
The demonstration flights and biofuels investments can also be easily characterized as marketing ploys. Why else would a company pay 2 times or 4 times market prices for the input that already represents the largest single expense (renewable jet and renewable diesel fuels can be cost-competitive with current market prices depending on production method)? Airlines were positioning themselves for a revised ASTM standard for jet fuel that included renewable fuels, which finally arrived earlier this summer. Giddy up for a flurry of deals and development!
What does the future hold?
It will take time to gain market share, but early progress is encouraging. The commercial scale facilities and partnerships listed above will de-risk each approach to renewable aviation fuels, thereby catalyzing future developments on a much larger scale. For instance, on the quarterly conference call last week Amyris CEO John Melo hinted that fast-falling production costs of its farnesene may nudge Total SA to fund the construction of up to three massive commercial scale fuel facilities by the end of the decade. A (potential) drop in the bucket perhaps, but such capacity would represent a historic milestone for renewable fuels. Just last week, Total SA invested another $11 million in Amyris for the sole purpose of lowering its production costs of farnesene.
Also last week, the U.S. Department of Agriculture, Boeing, and Airlines for America announced the Farm to Fly 2.0 initiative with the goal of producing 1 billion gallons of drop-in aviation biofuels per year by 2018. It's not clear if that includes the nation's current renewable diesel capacity or only dedicated projects under construction now, but 1 billion gallons would represent 4.3% of the American aviation industry's total annual fuel use and cut its emissions by 3.5%.
What does it all mean for you? Well, if you're an airline passenger, then it will translate into lower ticket prices in the long-term. Then again, the changes will occur over such a long time period that the savings will likely go unnoticed -- but at least you'll have cleaner air. If you're an investor, then it could translate into some interesting opportunities, if you know where to look. We'll investigate some of the investment opportunities in aviation biofuels together in the coming weeks.
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The article How Biofuels and The Boeing Company Are Reshaping the Global Aviation Industry originally appeared on Fool.com.
Maxx Chatsko owns shares of Amyris. Check out hispersonal portfolio,CAPS page,previous writing for The Motley Fool, or his work forSynBioBeta to keep up with developments in the synthetic biology industry. 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.
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For instance, on the quarterly conference call last week Amyris CEO John Melo hinted that fast-falling production costs of its farnesene may nudge Total SA to fund the construction of up to three massive commercial scale fuel facilities by the end of the decade. Also last week, the U.S. Department of Agriculture, Boeing, and Airlines for America announced the Farm to Fly 2.0 initiative with the goal of producing 1 billion gallons of drop-in aviation biofuels per year by 2018. It's not clear if that includes the nation's current renewable diesel capacity or only dedicated projects under construction now, but 1 billion gallons would represent 4.3% of the American aviation industry's total annual fuel use and cut its emissions by 3.5%.
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In June synthetic biology pioneer Amyris and its partner Total SA gained ASTM approval for drop-in jet fuel containing up to 10% farnesene-based renewable fuel. Why else would a company pay 2 times or 4 times market prices for the input that already represents the largest single expense (renewable jet and renewable diesel fuels can be cost-competitive with current market prices depending on production method)? It's not clear if that includes the nation's current renewable diesel capacity or only dedicated projects under construction now, but 1 billion gallons would represent 4.3% of the American aviation industry's total annual fuel use and cut its emissions by 3.5%.
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There are two ways to decrease the amount of petroleum fuel used: (1) purchase more efficient aircraft and (2) purchase renewable drop-in fuels such as renewable jet and renewable diesel. Additionally, several types of renewable jet fuels are more energy dense than petroleum fuels, meaning jet engines would require less fuel to travel the same distance. The renewable fuel is made from renewable, non-food feedstocks and can be used in 50/50 blends with petroleum fuels, has a higher energy density than petroleum fuels, and can result in 65%-80% reductions in greenhouse gas emissions.
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In June synthetic biology pioneer Amyris and its partner Total SA gained ASTM approval for drop-in jet fuel containing up to 10% farnesene-based renewable fuel. Earlier this month, Boeing partnered with South African Airways to create renewable jet fuel from tobacco plants engineered for use as energy feedstocks. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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8599.0
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2014-08-15 00:00:00 UTC
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Southwest Airlines Extends International Reach to Mexico - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-extends-international-reach-to-mexico-analyst-blog-2014-08-15
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nan
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nan
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As announced earlier, Southwest Airlines Co. ( LUV ) is expanding its service to Cancun and Los Cabos in Mexico after debuting in international skies last month. The flight adds to the newly launched services from Atlanta, Baltimore and Orlando to Oranjestad, Aruba and Montego Bay, Jamaica.
Southwest Airlines will now operate daily service between Santa Ana, CA and San Jose del Cabo/Los Cabos Mexico along with another one from Atlanta/Baltimore to Cancun. A Saturday only service between Cancun and Mexico will be launched on Aug 16, 2014. Additionally, flights to Mexico City and Punta Cana, Dominican Republic will be started from Nov 2.
The new destinations will be accretive to Southwest's international operation as maximum U.S. visitors fly to Los Cabos as a popular tourist destination from California. On the other hand, Mexicans comprise a large chunk of the tourist population traveling to Southern California. We believe such passengers will benefit immensely from Southwest Airlines' low fare base.
After operating for several decades within the U.S. domestic market, Southwest Airlines inaugurated its international services in Jul 2014. The carrier has come a long way since it started operations four decades ago. Having established itself as a top domestic carrier, the company now plans to flag off international flights from nine U.S. cities by the end of 2014.
At the moment, however, international services will have only a modest contribution in Southwest Airlines' overall performance. In this regard, the carrier will naturally lag behind larger rivals like Delta Airlines Inc. ( DAL ), American Airlines Group Inc. ( AAL ) and United Continental Holdings Inc. ( UAL ), which boast strong international operations.
Through this expansion Southwest Airlines is technically taking over the operations of its subsidiary AirTran, which flies to the Caribbean. However, Southwest Airlines' international service is here to stay for good as the carrier plans to add 50 international routes going forward. We believe the carrier should gain from its competitively priced low fares as compared to its traditional rivals.
Southwest Airlines currently carries a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this regard, the carrier will naturally lag behind larger rivals like Delta Airlines Inc. ( DAL ), American Airlines Group Inc. ( AAL ) and United Continental Holdings Inc. ( UAL ), which boast strong international operations. 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. As announced earlier, Southwest Airlines Co. ( LUV ) is expanding its service to Cancun and Los Cabos in Mexico after debuting in international skies last month.
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In this regard, the carrier will naturally lag behind larger rivals like Delta Airlines Inc. ( DAL ), American Airlines Group Inc. ( AAL ) and United Continental Holdings Inc. ( UAL ), which boast strong international operations. 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.
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In this regard, the carrier will naturally lag behind larger rivals like Delta Airlines Inc. ( DAL ), American Airlines Group Inc. ( AAL ) and United Continental Holdings Inc. ( UAL ), which boast strong international operations. 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. However, Southwest Airlines' international service is here to stay for good as the carrier plans to add 50 international routes going forward.
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In this regard, the carrier will naturally lag behind larger rivals like Delta Airlines Inc. ( DAL ), American Airlines Group Inc. ( AAL ) and United Continental Holdings Inc. ( UAL ), which boast strong international operations. 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 new destinations will be accretive to Southwest's international operation as maximum U.S. visitors fly to Los Cabos as a popular tourist destination from California.
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