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3800.0
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2022-02-07 00:00:00 UTC
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Why the Frontier-Spirit Deal Lifted the Whole Airline Industry Monday
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AAL
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https://www.nasdaq.com/articles/why-the-frontier-spirit-deal-lifted-the-whole-airline-industry-monday
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nan
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nan
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The stock market opened the new week on a positive note, with investors seeing some continued volatility but ending up pleased with the market's advance by mid-afternoon. As of 3 p.m. ET, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 180 points to 35,269. The S&P 500 (SNPINDEX: ^GSPC) climbed 12 points to 4,513, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) picked up 26 points to 14,124.
Falling stock prices often tempt companies to enter into strategic acquisitions, and the latest pair of companies to decide on a merger came from the airline industry. Specifically, Spirit Airlines (NYSE: SAVE) and Frontier Group Holdings (NASDAQ: ULCC) made a move that lifted both of their stocks. Indeed, even with the impact on the competitive environment across the industry, most of the two companies' airline peers also moved sharply higher. Below, we'll look more closely at what helped the industry move higher on Monday and why Spirit and Frontier's competitors aren't necessarily going to get hurt from the deal.
Image source: Getty Images.
A big partnership in the skies
Shares of Spirit Airlines were up 18% in mid-afternoon trading after the Monday morning announcement. Frontier shares rose more than 4%, which is somewhat unusual for the acquiring company in a tie-up.
The combination will produce a company with a market capitalization of roughly $6.6 billion. Putting the two route maps together will produce an industry player that will be the fifth largest in the U.S. airline industry, serving more than 145 destinations in the U.S., Latin America, and the Caribbean. Service expansion should help boost schedules to underserved markets in the U.S., and the two airlines see greater fuel efficiency helping to produce savings of $1 billion for customers.
Under the terms of the deal, Spirit shareholders will receive $2.13 per share in cash plus 1.9126 shares of Frontier stock for every share of Spirit stock they own. That puts a value of $2.9 billion on Spirit, which would give Spirit shareholders in the aggregate a slightly smaller position in the combined company than Frontier shareholders will retain. Frontier will get seven members out of 12 on the new board of directors. The companies hope to close the merger in the second half of 2022.
Are more deals coming?
Given that the combined Frontier-Spirit would be a competitive threat to the rest of the airline industry, it would be natural to think that shares of those other airline stocks might be moving lower. However, the opposite was the case.
Among the big four airlines, stocks were uniformly higher. American Airlines Group (NASDAQ: AAL) was the biggest gainer with a 6% rise, followed by United Airlines Holdings (NASDAQ: UAL) and its 5% upward move. Delta Air Lines (NYSE: DAL) gained 4%, while Southwest Airlines (NYSE: LUV) was the weakest player but still picked up 3%.
Moreover, some of the smaller carriers gained ground apparently on speculation that they might soon need to make deals of their own. Alaska Air Group (NYSE: ALK), JetBlue Holdings (NASDAQ: JBLU), and Hawaiian Holdings (NASDAQ: HA) were all up between 4% and 5.5% on the day.
With lingering pressures on the travel industry, combining resources could be important for airlines' survival. Moreover, bringing together complementary companies could help boost efficiency and make the airline sector more profitable. That's why the Frontier-Spirit merger isn't likely to be the last strategic move investors will see in the airline space in 2022.
10 stocks we like better than Frontier Group Holdings, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Frontier Group Holdings, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns and recommends Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) was the biggest gainer with a 6% rise, followed by United Airlines Holdings (NASDAQ: UAL) and its 5% upward move. Specifically, Spirit Airlines (NYSE: SAVE) and Frontier Group Holdings (NASDAQ: ULCC) made a move that lifted both of their stocks. Below, we'll look more closely at what helped the industry move higher on Monday and why Spirit and Frontier's competitors aren't necessarily going to get hurt from the deal.
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American Airlines Group (NASDAQ: AAL) was the biggest gainer with a 6% rise, followed by United Airlines Holdings (NASDAQ: UAL) and its 5% upward move. Delta Air Lines (NYSE: DAL) gained 4%, while Southwest Airlines (NYSE: LUV) was the weakest player but still picked up 3%. Alaska Air Group (NYSE: ALK), JetBlue Holdings (NASDAQ: JBLU), and Hawaiian Holdings (NASDAQ: HA) were all up between 4% and 5.5% on the day.
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American Airlines Group (NASDAQ: AAL) was the biggest gainer with a 6% rise, followed by United Airlines Holdings (NASDAQ: UAL) and its 5% upward move. Specifically, Spirit Airlines (NYSE: SAVE) and Frontier Group Holdings (NASDAQ: ULCC) made a move that lifted both of their stocks. Under the terms of the deal, Spirit shareholders will receive $2.13 per share in cash plus 1.9126 shares of Frontier stock for every share of Spirit stock they own.
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American Airlines Group (NASDAQ: AAL) was the biggest gainer with a 6% rise, followed by United Airlines Holdings (NASDAQ: UAL) and its 5% upward move. Below, we'll look more closely at what helped the industry move higher on Monday and why Spirit and Frontier's competitors aren't necessarily going to get hurt from the deal. Under the terms of the deal, Spirit shareholders will receive $2.13 per share in cash plus 1.9126 shares of Frontier stock for every share of Spirit stock they own.
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b99f2f06-4c04-46c6-96e9-f8b2b81d1d85
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3801.0
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2022-02-07 00:00:00 UTC
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Why JetBlue Shares Are Up Today
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AAL
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https://www.nasdaq.com/articles/why-jetblue-shares-are-up-today
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nan
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nan
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What happened
On Monday, two U.S. discount airlines announced plans to merge. Shares of JetBlue Airways (NASDAQ: JBLU) surged by more than 5% in early trading on speculation that perhaps it could be the next acquisition target. As of 11:04 a.m. ET, the shares were up by 4.2%.
So what
Airlines were hard hit by the pandemic, but the industry is slowly recovering from its lows. The sector hit a milestone in that recovery on Monday, when discount carriers Frontier Holdings Group (NASDAQ: ULCC) and Spirit Airlines (NYSE: SAVE) announced plans to combine to create the nation's fifth-largest airline.
Image source: JetBlue Airways.
A combination would be more dangerous to attempt during a crisis, so the deal announcement signaled to investors that the companies believe the worst is behind them. It also led to inevitable speculation about what other airlines might be acquisition targets, and JetBlue placed high on a lot of lists.
JetBlue, like Spirit, has a niche product, though JetBlue has a reputation for high-end service. Its large presence in New York and Boston and its focus on premium fares would likely be of interest to a number of other airlines, including current partner American Airlines Group (NASDAQ: AAL).
American has a long history of acquisitions: Its current form was the product of a merger between American and US Airways, which itself was the product of a merger between US Airways and America West. The old America West management team, which was known for its aggressiveness, still occupies a number of key positions at the current airline.
Now what
The excitement is understandable, but investors shouldn't rush to buy JetBlue shares assuming a deal is imminent.
American has the highest debt-load in the industry, and it will need more time than most of its peers to fully recover from the pandemic. It is also in the middle of a management transition, with longtime CEO (and architect of both the America West/US Airways deal) Doug Parker set to step down on March 31. And the current alliance between American and JetBlue has already come under scrutiny by regulators on anti-competitiveness grounds, which gives reason to doubt that a full-fledged merger between the two would be allowed.
The good news for JetBlue -- and all the other airlines -- is that airline mergers tend to be messy, so if nothing else, this deal means that two low-cost competitors will likely be distracted over the next year. Assuming demand continues to grow as we approach the summer vacation months, JetBlue should be well-positioned to win more leisure traffic.
10 stocks we like better than JetBlue Airways
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and JetBlue Airways wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
Lou Whiteman owns Spirit Airlines. The Motley Fool owns and recommends Spirit Airlines. The Motley Fool recommends JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Its large presence in New York and Boston and its focus on premium fares would likely be of interest to a number of other airlines, including current partner American Airlines Group (NASDAQ: AAL). It is also in the middle of a management transition, with longtime CEO (and architect of both the America West/US Airways deal) Doug Parker set to step down on March 31. And the current alliance between American and JetBlue has already come under scrutiny by regulators on anti-competitiveness grounds, which gives reason to doubt that a full-fledged merger between the two would be allowed.
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Its large presence in New York and Boston and its focus on premium fares would likely be of interest to a number of other airlines, including current partner American Airlines Group (NASDAQ: AAL). The sector hit a milestone in that recovery on Monday, when discount carriers Frontier Holdings Group (NASDAQ: ULCC) and Spirit Airlines (NYSE: SAVE) announced plans to combine to create the nation's fifth-largest airline. The Motley Fool owns and recommends Spirit Airlines.
|
Its large presence in New York and Boston and its focus on premium fares would likely be of interest to a number of other airlines, including current partner American Airlines Group (NASDAQ: AAL). The sector hit a milestone in that recovery on Monday, when discount carriers Frontier Holdings Group (NASDAQ: ULCC) and Spirit Airlines (NYSE: SAVE) announced plans to combine to create the nation's fifth-largest airline. American has a long history of acquisitions: Its current form was the product of a merger between American and US Airways, which itself was the product of a merger between US Airways and America West.
|
Its large presence in New York and Boston and its focus on premium fares would likely be of interest to a number of other airlines, including current partner American Airlines Group (NASDAQ: AAL). The sector hit a milestone in that recovery on Monday, when discount carriers Frontier Holdings Group (NASDAQ: ULCC) and Spirit Airlines (NYSE: SAVE) announced plans to combine to create the nation's fifth-largest airline. American has a long history of acquisitions: Its current form was the product of a merger between American and US Airways, which itself was the product of a merger between US Airways and America West.
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ebd0c6f5-b5f4-40f1-9870-a540b03e052b
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3802.0
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2022-02-07 00:00:00 UTC
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S&P 500, Nasdaq rise after turbulent week; Peloton surges
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AAL
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https://www.nasdaq.com/articles/sp-500-nasdaq-rise-after-turbulent-week-peloton-surges
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nan
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nan
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By Bansari Mayur Kamdar
Feb 7 (Reuters) - The S&P 500 and the Nasdaq rose on Monday after a week of choppy trading spurred on by mixed quarterly results from big technology companies, while Peloton jumped on media reports of interest from potential buyers including Amazon.
Five of the 11 major S&P sectors advanced, with consumer discretionary .SPLRCD stocks leading morning gains.
The tech-heavy Nasdaq .IXIC had a choppy start to February after Facebook owner Meta Platforms FB.O lost $200 billion from its market value on disappointing results last week, while Amazon.com Inc AMZN.O gained just as much on plans of hiking its Prime subscription rate.
"Markets finished out pretty decently last week after a tough month of January, so it does seem that you had capitulation on that Monday, and since then the market is trying to work its way up," said Thomas Hayes, managing member at Great Hill Capital LLC in New York.
"Higher earnings are helpful in the sense that estimates finally ticked up."
Of the 278 companies in the S&P 500 that have posted earnings as of Friday, 78.4% reported above analysts' expectations, according to Refinitiv data.
Meatpacker Tyson Foods Inc TSN.N climbed 10.3% after its first-quarter profit nearly doubled and surged past estimates, boosted by higher prices.
Peloton Interactive Inc PTON.O jumped 28.4% on media reports that Amazon and Nike NKE.N are exploring potential buyout offers for the exercise bike maker.
At 09:47 a.m. ET, the Dow Jones Industrial Average .DJIwas down 70.00 points, or 0.20%, at 35,019.74, the S&P 500 .SPXwas up 5.66 points, or 0.13%, at 4,506.19, and the Nasdaq Composite .IXICwas up 104.79 points, or 0.74%, at 14,202.80.
An unexpectedly strong jobs report last week raised concerns about aggressive policy tightening by the U.S. Federal Reserve, ahead of key inflation data for January that is due on Thursday.
Markets are now pricing in a one-in-three chance the Fed might hike by a full 50 basis points in March and the prospect of rates reaching 1.5% by year end. FEDWATCH
Budget airline Frontier Group Holdings ULCC.O fell 2.9% after agreeing to buy rival Spirit Airlines Inc SAVE.N in a $2.9 billion deal.
Spirit Airlines surged 15.2%, while other carriers United Airlines Holdings Inc UAL.O, Delta Air Lines DAL.Nand American Airlines Group Inc AAL.O rose about 3% each.
U.S.-listed shares of China's Alibaba Group Holding BABA.N fell 6.3% after the company registered an additional 1 billion American depositary shares, raising speculation that it could allow large shareholder SoftBank Group Corp 9984.T to sell its stake more easily.
Advancing issues outnumbered decliners by a 1.42-to-1 ratio on the NYSE and a 2.29-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and four new lows, while the Nasdaq recorded 18 new highs and 25 new lows.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Maju Samuel)
((BansariMayur.Kamdar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Spirit Airlines surged 15.2%, while other carriers United Airlines Holdings Inc UAL.O, Delta Air Lines DAL.Nand American Airlines Group Inc AAL.O rose about 3% each. By Bansari Mayur Kamdar Feb 7 (Reuters) - The S&P 500 and the Nasdaq rose on Monday after a week of choppy trading spurred on by mixed quarterly results from big technology companies, while Peloton jumped on media reports of interest from potential buyers including Amazon. The tech-heavy Nasdaq .IXIC had a choppy start to February after Facebook owner Meta Platforms FB.O lost $200 billion from its market value on disappointing results last week, while Amazon.com Inc AMZN.O gained just as much on plans of hiking its Prime subscription rate.
|
Spirit Airlines surged 15.2%, while other carriers United Airlines Holdings Inc UAL.O, Delta Air Lines DAL.Nand American Airlines Group Inc AAL.O rose about 3% each. By Bansari Mayur Kamdar Feb 7 (Reuters) - The S&P 500 and the Nasdaq rose on Monday after a week of choppy trading spurred on by mixed quarterly results from big technology companies, while Peloton jumped on media reports of interest from potential buyers including Amazon. FEDWATCH Budget airline Frontier Group Holdings ULCC.O fell 2.9% after agreeing to buy rival Spirit Airlines Inc SAVE.N in a $2.9 billion deal.
|
Spirit Airlines surged 15.2%, while other carriers United Airlines Holdings Inc UAL.O, Delta Air Lines DAL.Nand American Airlines Group Inc AAL.O rose about 3% each. By Bansari Mayur Kamdar Feb 7 (Reuters) - The S&P 500 and the Nasdaq rose on Monday after a week of choppy trading spurred on by mixed quarterly results from big technology companies, while Peloton jumped on media reports of interest from potential buyers including Amazon. The tech-heavy Nasdaq .IXIC had a choppy start to February after Facebook owner Meta Platforms FB.O lost $200 billion from its market value on disappointing results last week, while Amazon.com Inc AMZN.O gained just as much on plans of hiking its Prime subscription rate.
|
Spirit Airlines surged 15.2%, while other carriers United Airlines Holdings Inc UAL.O, Delta Air Lines DAL.Nand American Airlines Group Inc AAL.O rose about 3% each. By Bansari Mayur Kamdar Feb 7 (Reuters) - The S&P 500 and the Nasdaq rose on Monday after a week of choppy trading spurred on by mixed quarterly results from big technology companies, while Peloton jumped on media reports of interest from potential buyers including Amazon. "Higher earnings are helpful in the sense that estimates finally ticked up."
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0c64c24e-8146-425b-977d-ed2cee2d84d6
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3803.0
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2022-02-07 00:00:00 UTC
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Wall St set for higher open after a turbulent week
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AAL
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https://www.nasdaq.com/articles/wall-st-set-for-higher-open-after-a-turbulent-week
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nan
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nan
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By Bansari Mayur Kamdar
Feb 7 (Reuters) - U.S. stock index futures edged higher on Monday after a week of volatile trading spurred on by mixed quarterly results from big technology companies, while Peloton jumped on media reports of interest from potential buyers including Amazon.
The tech-heavy Nasdaq .IXIC had a volatile start to February after Facebook owner Meta Platforms FB.O lost $200 billion from its market value on disappointing results last week, while Amazon.com Inc AMZN.O gained just as much on plans of hiking its Prime subscription rate.
"Markets finished out pretty decently last week after a tough month of January, so it does seem that you had capitulation on that Monday, and since then the market is trying to work its way up," said Thomas Hayes, managing member at Great Hill Capital LLC in New York.
"Higher earnings are helpful in the sense that estimates finally ticked up."
Hasbro Inc HAS.O gained 1.9% premarket after the toymaker delivered a strong forecast-beating quarter, bolstered by a recovery in its television production business and price hikes.
Tyson Foods Inc TSN.N climbed 5.6% on beating Wall Street estimates for quarterly revenue and profit driven by higher meat prices.
Of the 278 companies in the S&P 500 that have posted earnings as of Friday, 78.4% reported above analysts' expectations, according to Refinitiv.
At 8:08 a.m. ET, Dow e-minis 1YMcv1 were up 65 points, or 0.19%, S&P 500 e-minis EScv1 were up 13.25 points, or 0.29%, and Nasdaq 100 e-minis NQcv1 were up 66.25 points, or 0.45%.
Despite the earnings-driven seesaw in technology stocks, all three major stock indexes ended the first week of February higher.
An unexpectedly strong jobs report last week raised concerns about aggressive policy tightening by the U.S. Federal Reserve ahead of key inflation data for January that is due on Thursday.
Robust inflation data – which hit its highest annual level in nearly four decades in December – could further bolster the case for a hawkish Fed and extend the climb in yields, hurting the nascent recovery in equity markets.
Markets are now pricing in a one-in-three chance the Fed might hike by a full 50 basis points in March and the prospect of rates reaching 1.5% by year end. FEDWATCH
Market liquidity in U.S. stocks has fallen to levels last seen during the COVID-19 selloff two years ago, adding to volatility in an already-nervous market.
Peloton Interactive Inc PTON.O jumped 31.6% on media reports that Amazon and Nike NKE.N are exploring a potential buyout offer for the exercise bike maker.
Budget airline Frontier Group Holdings ULCC.O fell 3.2% after agreeing to buy rival Spirit Airlines Inc SAVE.N in a $2.9 billion deal, creating the fifth-largest U.S. airline to compete better with larger rivals, tap a rebound in air travel, and expand their flying routes.
Spirit Airlines surged 12.1%, while shares of United Airlines Holdings Inc UAL.O, Delta Air Lines DAL.Nand American Airlines Group Inc AAL.O rose more than 1% each.
U.S.-listed shares of China's Alibaba Group Holding BABA.N fell 3.5% after the company registered an additional 1 billion American depositary shares, raising speculation that it could allow large shareholder SoftBank Group Corp 9984.T to sell its stake more easily.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Maju Samuel)
((BansariMayur.Kamdar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Spirit Airlines surged 12.1%, while shares of United Airlines Holdings Inc UAL.O, Delta Air Lines DAL.Nand American Airlines Group Inc AAL.O rose more than 1% each. By Bansari Mayur Kamdar Feb 7 (Reuters) - U.S. stock index futures edged higher on Monday after a week of volatile trading spurred on by mixed quarterly results from big technology companies, while Peloton jumped on media reports of interest from potential buyers including Amazon. The tech-heavy Nasdaq .IXIC had a volatile start to February after Facebook owner Meta Platforms FB.O lost $200 billion from its market value on disappointing results last week, while Amazon.com Inc AMZN.O gained just as much on plans of hiking its Prime subscription rate.
|
Spirit Airlines surged 12.1%, while shares of United Airlines Holdings Inc UAL.O, Delta Air Lines DAL.Nand American Airlines Group Inc AAL.O rose more than 1% each. By Bansari Mayur Kamdar Feb 7 (Reuters) - U.S. stock index futures edged higher on Monday after a week of volatile trading spurred on by mixed quarterly results from big technology companies, while Peloton jumped on media reports of interest from potential buyers including Amazon. Despite the earnings-driven seesaw in technology stocks, all three major stock indexes ended the first week of February higher.
|
Spirit Airlines surged 12.1%, while shares of United Airlines Holdings Inc UAL.O, Delta Air Lines DAL.Nand American Airlines Group Inc AAL.O rose more than 1% each. By Bansari Mayur Kamdar Feb 7 (Reuters) - U.S. stock index futures edged higher on Monday after a week of volatile trading spurred on by mixed quarterly results from big technology companies, while Peloton jumped on media reports of interest from potential buyers including Amazon. The tech-heavy Nasdaq .IXIC had a volatile start to February after Facebook owner Meta Platforms FB.O lost $200 billion from its market value on disappointing results last week, while Amazon.com Inc AMZN.O gained just as much on plans of hiking its Prime subscription rate.
|
Spirit Airlines surged 12.1%, while shares of United Airlines Holdings Inc UAL.O, Delta Air Lines DAL.Nand American Airlines Group Inc AAL.O rose more than 1% each. By Bansari Mayur Kamdar Feb 7 (Reuters) - U.S. stock index futures edged higher on Monday after a week of volatile trading spurred on by mixed quarterly results from big technology companies, while Peloton jumped on media reports of interest from potential buyers including Amazon. "Higher earnings are helpful in the sense that estimates finally ticked up."
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79dfc815-0d6f-4086-ab27-1c3224b4b2a5
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3804.0
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2022-02-07 00:00:00 UTC
|
GOL Announces Equity Investment Of $200 Mln In Preferred Shares By American Airlines
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AAL
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https://www.nasdaq.com/articles/gol-announces-equity-investment-of-%24200-mln-in-preferred-shares-by-american-airlines
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nan
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nan
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(RTTNews) - GOL Linhas Aéreas Inteligentes S.A. (GOL) has entered an investment agreement with American Airlines, Inc. for expansion of its commercial cooperation with American and an equity investment in the amount of $200 million by American in 22.2 million newly issued preferred shares of GOL through a capital increase for a 5.2% participation in GOL's economic interest.
GOL noted that all holders of the company's preferred shares, including in the form of ADRs, will be able to exercise their preemptive rights to subscribe newly issued shares proportionate to their shareholdings.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - GOL Linhas Aéreas Inteligentes S.A. (GOL) has entered an investment agreement with American Airlines, Inc. for expansion of its commercial cooperation with American and an equity investment in the amount of $200 million by American in 22.2 million newly issued preferred shares of GOL through a capital increase for a 5.2% participation in GOL's economic interest. GOL noted that all holders of the company's preferred shares, including in the form of ADRs, will be able to exercise their preemptive rights to subscribe newly issued shares proportionate to their shareholdings. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - GOL Linhas Aéreas Inteligentes S.A. (GOL) has entered an investment agreement with American Airlines, Inc. for expansion of its commercial cooperation with American and an equity investment in the amount of $200 million by American in 22.2 million newly issued preferred shares of GOL through a capital increase for a 5.2% participation in GOL's economic interest. GOL noted that all holders of the company's preferred shares, including in the form of ADRs, will be able to exercise their preemptive rights to subscribe newly issued shares proportionate to their shareholdings. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - GOL Linhas Aéreas Inteligentes S.A. (GOL) has entered an investment agreement with American Airlines, Inc. for expansion of its commercial cooperation with American and an equity investment in the amount of $200 million by American in 22.2 million newly issued preferred shares of GOL through a capital increase for a 5.2% participation in GOL's economic interest. GOL noted that all holders of the company's preferred shares, including in the form of ADRs, will be able to exercise their preemptive rights to subscribe newly issued shares proportionate to their shareholdings. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - GOL Linhas Aéreas Inteligentes S.A. (GOL) has entered an investment agreement with American Airlines, Inc. for expansion of its commercial cooperation with American and an equity investment in the amount of $200 million by American in 22.2 million newly issued preferred shares of GOL through a capital increase for a 5.2% participation in GOL's economic interest. GOL noted that all holders of the company's preferred shares, including in the form of ADRs, will be able to exercise their preemptive rights to subscribe newly issued shares proportionate to their shareholdings. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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b4e2cf78-138e-4f91-9ba6-6d61944b0fcf
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3805.0
|
2022-02-07 00:00:00 UTC
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COLUMN-Rio's dreadful workplace report may boost cost of energy transition: Russell
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AAL
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https://www.nasdaq.com/articles/column-rios-dreadful-workplace-report-may-boost-cost-of-energy-transition%3A-russell-0
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nan
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nan
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By Clyde Russell
LAUNCESTON, Australia, Feb 7 (Reuters) - Rio Tinto's decision to go public with a self-damning report into its workplace culture should be a watershed moment for a wider mining industry aiming to be seen as the "good guys", helping to drive the world's energy transition.
It was no doubt a courageous decision by Rio RIO.AX, the world's biggest miner of iron ore and a top copper producer, to release a report that makes extremely uncomfortable reading, unveiling a culture riddled with sexual harassment, bullying and racism.
But the big question for Rio, and its peers such as BHP Group BHP.AX, Anglo American AAL.L, Glencore GLEN.L and Vale VALE3.SA, is what the industry does to tackle the issues, and how will it build a future workforce that sees itself as being proud to part of the solution to climate change.
And the issue for the wider commodities markets is that no matter how the miners respond, the likelihood is that any solution will be costly, eventually feeding into the prices of metals such as copper, lithium and nickel, all vital for the renewable energies needed to reach net-zero carbon emissions.
Rio Tinto Chief Executive Jakob Stausholm called the Feb. 1 report "disturbing," and pledged to implement all 26 recommendations by former Australian sex discrimination commissioner Elizabeth Broderick.
The report showed that nearly half of all employees who responded to the external review of workplace culture had been bullied, while nearly 30% of women and about 7% of men experienced sexual harassment, with 21 women reporting actual or attempted rape and sexual assault.
It is obvious that the short-term implication is going to be an intense focus on improving Rio's workplace culture, especially at remote mine sites such as the Pilbara part of Western Australia state, home to the company's major iron ore mines.
But the longer-term implications are likely to be more profound.
It would be reasonable to assume that the issues raised are not limited to just Rio, and that the mining industry in general suffers the same problems.
This means that the chief executives of Rio's peers and competitors are probably already scrambling to see just how out of order their own houses are, and develop action plans to change their own workplace problems.
The issue is now firmly on the radar screens of investors, with pointed questions likely to flow at shareholder meetings.
How the industry is seen to respond will be vital, and there is little doubt the Rio report is a hammer blow to its image.
This could not have come at a worse time, as mining companies try desperately to attract young people into the industry.
LABOUR THE KEY
A simple internet search for "lack of mining engineering students" throws up a plethora of articles, stretching back several years, but becoming more prevalent in recent times.
One such article by the Australian Broadcasting Corporation from August last year highlighted the steps mining companies are prepared to take, including offering free bar tabs to students at the School of Mines in Western Australia.
One student said he had six job offers and eventually settled for a position paying more than A$110,000 ($78,100) a year for a eight-day on, six-day off roster with a gold mining company.
This starting salary compares to the median annual income of A$83,000 for an Australian with a post-graduate degree in 2020.
In other words, mining companies are have to pay handsomely to get the few students are available.
Yes, they can put more money into scholarships and pay even bigger salaries, but ultimately young graduates are going to go to work for companies with a culture and mission they can identify with.
This is the biggest challenge for mining companies, convincing potential employees that they are employers of choice and an integral part of the march towards global net-zero carbon emissions.
A recent report by the International Energy Agency estimated that meeting the targets of the Paris climate accord will require, over the next two decades, that clean energy's share of metal demand rise to more than 40% for copper and rare earth elements, 60% to 70% for nickel and cobalt, and almost 90% for lithium.
This implies the mining industry is going to have to ramp up its activities considerably in coming years, and it is likely that labour shortages will climb the list of top concerns for chief executives.
The questions for the industry, and for the wider community driving the energy transition, is what will be the cost of attracting workers to mining, how can it be done, and what happens if the industry continues to fall short in creating workplaces of choice?
(The opinions expressed here are those of the author, a columnist for Reuters.)
(Editing by Clarence Fernandez)
((clyde.russell@thomsonreuters.com)(+61 437 622 448)(Reuters Messaging: clyde.russell.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But the big question for Rio, and its peers such as BHP Group BHP.AX, Anglo American AAL.L, Glencore GLEN.L and Vale VALE3.SA, is what the industry does to tackle the issues, and how will it build a future workforce that sees itself as being proud to part of the solution to climate change. By Clyde Russell LAUNCESTON, Australia, Feb 7 (Reuters) - Rio Tinto's decision to go public with a self-damning report into its workplace culture should be a watershed moment for a wider mining industry aiming to be seen as the "good guys", helping to drive the world's energy transition. It was no doubt a courageous decision by Rio RIO.AX, the world's biggest miner of iron ore and a top copper producer, to release a report that makes extremely uncomfortable reading, unveiling a culture riddled with sexual harassment, bullying and racism.
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But the big question for Rio, and its peers such as BHP Group BHP.AX, Anglo American AAL.L, Glencore GLEN.L and Vale VALE3.SA, is what the industry does to tackle the issues, and how will it build a future workforce that sees itself as being proud to part of the solution to climate change. By Clyde Russell LAUNCESTON, Australia, Feb 7 (Reuters) - Rio Tinto's decision to go public with a self-damning report into its workplace culture should be a watershed moment for a wider mining industry aiming to be seen as the "good guys", helping to drive the world's energy transition. It was no doubt a courageous decision by Rio RIO.AX, the world's biggest miner of iron ore and a top copper producer, to release a report that makes extremely uncomfortable reading, unveiling a culture riddled with sexual harassment, bullying and racism.
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But the big question for Rio, and its peers such as BHP Group BHP.AX, Anglo American AAL.L, Glencore GLEN.L and Vale VALE3.SA, is what the industry does to tackle the issues, and how will it build a future workforce that sees itself as being proud to part of the solution to climate change. By Clyde Russell LAUNCESTON, Australia, Feb 7 (Reuters) - Rio Tinto's decision to go public with a self-damning report into its workplace culture should be a watershed moment for a wider mining industry aiming to be seen as the "good guys", helping to drive the world's energy transition. It is obvious that the short-term implication is going to be an intense focus on improving Rio's workplace culture, especially at remote mine sites such as the Pilbara part of Western Australia state, home to the company's major iron ore mines.
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But the big question for Rio, and its peers such as BHP Group BHP.AX, Anglo American AAL.L, Glencore GLEN.L and Vale VALE3.SA, is what the industry does to tackle the issues, and how will it build a future workforce that sees itself as being proud to part of the solution to climate change. It was no doubt a courageous decision by Rio RIO.AX, the world's biggest miner of iron ore and a top copper producer, to release a report that makes extremely uncomfortable reading, unveiling a culture riddled with sexual harassment, bullying and racism. And the issue for the wider commodities markets is that no matter how the miners respond, the likelihood is that any solution will be costly, eventually feeding into the prices of metals such as copper, lithium and nickel, all vital for the renewable energies needed to reach net-zero carbon emissions.
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cbf6b632-89a1-48e9-8872-62e3dd30eb6b
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3806.0
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2022-02-07 00:00:00 UTC
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Gol says deal with American Airlines formalized
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AAL
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https://www.nasdaq.com/articles/gol-says-deal-with-american-airlines-formalized
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nan
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nan
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SAO PAULO, Feb 7 (Reuters) - Brazilian airline Gol GOLL4.SA said on Monday a deal earlier announced with American Airlines AAL.O has been formalized, according to a securities filing.
In September, Gol announced an exclusive three-year codeshare agreement with American Airlines, which is going to invest $200 million in the Brazilian airline.
(Reporting by Carolina Mandl; Editing by Toby Chopra)
((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11 97116-3806;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SAO PAULO, Feb 7 (Reuters) - Brazilian airline Gol GOLL4.SA said on Monday a deal earlier announced with American Airlines AAL.O has been formalized, according to a securities filing. In September, Gol announced an exclusive three-year codeshare agreement with American Airlines, which is going to invest $200 million in the Brazilian airline. (Reporting by Carolina Mandl; Editing by Toby Chopra) ((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11 97116-3806;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SAO PAULO, Feb 7 (Reuters) - Brazilian airline Gol GOLL4.SA said on Monday a deal earlier announced with American Airlines AAL.O has been formalized, according to a securities filing. In September, Gol announced an exclusive three-year codeshare agreement with American Airlines, which is going to invest $200 million in the Brazilian airline. (Reporting by Carolina Mandl; Editing by Toby Chopra) ((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11 97116-3806;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SAO PAULO, Feb 7 (Reuters) - Brazilian airline Gol GOLL4.SA said on Monday a deal earlier announced with American Airlines AAL.O has been formalized, according to a securities filing. In September, Gol announced an exclusive three-year codeshare agreement with American Airlines, which is going to invest $200 million in the Brazilian airline. (Reporting by Carolina Mandl; Editing by Toby Chopra) ((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11 97116-3806;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SAO PAULO, Feb 7 (Reuters) - Brazilian airline Gol GOLL4.SA said on Monday a deal earlier announced with American Airlines AAL.O has been formalized, according to a securities filing. In September, Gol announced an exclusive three-year codeshare agreement with American Airlines, which is going to invest $200 million in the Brazilian airline. (Reporting by Carolina Mandl; Editing by Toby Chopra) ((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11 97116-3806;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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eb235b4d-348f-405e-aa4a-83896ded0a3b
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3807.0
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2022-02-07 00:00:00 UTC
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Miners drive rebound in European stocks
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AAL
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https://www.nasdaq.com/articles/miners-drive-rebound-in-european-stocks
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Feb 7 (Reuters) - European shares rebounded on Monday after five straight weeks of falls, as gains in mining stocks and positive earnings reports outweighed worries of a looming policy tightening cycle and geopolitical tensions.
The pan-European STOXX 600 .STOXX inched up 0.1% after losing 0.7% last week.
Miners .SXPP led the rebound, adding 1.2% as aluminium prices in China jumped 3%, bolstered by supply concerns and expectations of strong demand, while Chinese steel and iron ore futures rose after the state planner called for faster infrastructure construction. IRNMET/L
Rio Tinto RIO.L and Anglo American AAL.L gained 1.1% and 1.6%, respectively.
Aurubis AG NAFG.DE, Europe's largest copper producer, jumped 4.7% after confirming an 85% rise in quarterly profit and reiterating higher full-year earnings estimates on solid metal prices and strong output.
French automotive group Faurecia EPED.PA advanced 3.1% after saying it would aim for sales of above 33 billion euros ($37.72 billion) in 2025, at an operating profit margin of more than 8.5%.
(Reporting by Anisha Sircar in Bengaluru; Editing by Subhranshu Sahu)
((Anisha.Sircar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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IRNMET/L Rio Tinto RIO.L and Anglo American AAL.L gained 1.1% and 1.6%, respectively. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Feb 7 (Reuters) - European shares rebounded on Monday after five straight weeks of falls, as gains in mining stocks and positive earnings reports outweighed worries of a looming policy tightening cycle and geopolitical tensions. Miners .SXPP led the rebound, adding 1.2% as aluminium prices in China jumped 3%, bolstered by supply concerns and expectations of strong demand, while Chinese steel and iron ore futures rose after the state planner called for faster infrastructure construction.
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IRNMET/L Rio Tinto RIO.L and Anglo American AAL.L gained 1.1% and 1.6%, respectively. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Feb 7 (Reuters) - European shares rebounded on Monday after five straight weeks of falls, as gains in mining stocks and positive earnings reports outweighed worries of a looming policy tightening cycle and geopolitical tensions. Aurubis AG NAFG.DE, Europe's largest copper producer, jumped 4.7% after confirming an 85% rise in quarterly profit and reiterating higher full-year earnings estimates on solid metal prices and strong output.
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IRNMET/L Rio Tinto RIO.L and Anglo American AAL.L gained 1.1% and 1.6%, respectively. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Feb 7 (Reuters) - European shares rebounded on Monday after five straight weeks of falls, as gains in mining stocks and positive earnings reports outweighed worries of a looming policy tightening cycle and geopolitical tensions. Miners .SXPP led the rebound, adding 1.2% as aluminium prices in China jumped 3%, bolstered by supply concerns and expectations of strong demand, while Chinese steel and iron ore futures rose after the state planner called for faster infrastructure construction.
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IRNMET/L Rio Tinto RIO.L and Anglo American AAL.L gained 1.1% and 1.6%, respectively. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Feb 7 (Reuters) - European shares rebounded on Monday after five straight weeks of falls, as gains in mining stocks and positive earnings reports outweighed worries of a looming policy tightening cycle and geopolitical tensions. The pan-European STOXX 600 .STOXX inched up 0.1% after losing 0.7% last week.
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5e6f32c0-d9f0-4502-8c84-7c38ed8f99d6
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3808.0
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2022-02-04 00:00:00 UTC
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Interesting AAL Put And Call Options For March 25th
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-march-25th
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the March 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 25th contracts and identified one put and one call contract of particular interest.
The put contract at the $16.00 strike price has a current bid of 98 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $16.00, but will also collect the premium, putting the cost basis of the shares at $15.02 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $16.38/share today.
Because the $16.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 59%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 6.12% return on the cash commitment, or 45.66% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $16.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $16.50 strike price has a current bid of $1.11. If an investor was to purchase shares of AAL stock at the current price level of $16.38/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $16.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.51% if the stock gets called away at the March 25th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red:
Considering the fact that the $16.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 48%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 6.78% boost of extra return to the investor, or 50.52% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 52%, while the implied volatility in the call contract example is 51%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $16.38) to be 46%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the March 25th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the March 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 25th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the March 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 25th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 25th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the March 25th expiration.
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62e0262c-1124-42e7-9e06-6675807857f3
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3809.0
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2022-02-03 00:00:00 UTC
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PREVIEW-Big miners plug into battery metals joint ventures
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AAL
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https://www.nasdaq.com/articles/preview-big-miners-plug-into-battery-metals-joint-ventures
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nan
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nan
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By Clara Denina and Zandi Shabalala
LONDON, Feb 3 (Reuters) - Big miners, under pressure to increase their exposure to minerals needed to drive the electric vehicle revolution, have so far opted for the cautious approach of joint ventures with small explorers rather than buying them outright.
Shareholders will scrutinise quarterly results and statements in this month's earning season for news on battery metals such as copper, nickel, cobalt and lithium, used in batteries and renewable energy.
But the miners will also be keen to retain the loyalty of shareholders they have lured with dividends and buybacks to a high-risk sector that remembers reckless spending in previous commodity booms that were followed by bust.
Joint ventures, rather than outright acquisitions, have the advantage of spreading the risks associated with complex minerals that may not provide the margins of the traditional bulk commodities.
As the trend gathered pace, the world's largest listed BHP Group BHP.AX, BHPB.L this month said it had spent $40 million to advance a nickel project in Tanzania through UK-based private developer Kabanga Nickel. The deal also marks its re-entry into Africa.
Such joint ventures can give miners more geographical reach without full exposure to jurisdictions seen as politically challenging.
Over recent years, world number two miner Rio Tinto RIO.AX, RIO.L has been exploring for copper on Canada-listed junior Midnight Sun's MMA.V licences in Zambia under a joint venture agreement and Anglo American AAL.L has been in discussion with Zambian-focused junior Arc Minerals ARCMA.L to hunt for copper.
"We expect the diversified miners to enter new geographies in 2022 through the acquisition of early-stage projects," said James Whiteside, research director at consultancy WoodMac.
But the consultancy predicts large acquisitions this year will remain constrained by a reluctance to buy at high commodity prices that will leave investment growth across metals and mining at multi-year lows.
BHP's exploration budget for the first half of this year is just $80 million.
That could be a problem for ensuring sufficient battery minerals to meet the expected surge in demand.
In the venture deals, the big miners help with providing for equipment and labour skills, while the assets are mainly run by the smaller exploring company.
"The problem is you need extra supply and ...it's going to need more than M&A," Richard Marwood, senior fund manager at Royal London Asset Management, said.
Bank of America head of metals research Michael Widmer also said investments in battery metals markets by major miners will not rival spending and profits of established markets such as iron ore, where high margins are far easier to deliver.
"The reality is that for the big mining companies investment in smaller miners doesn't move the needle that much, but it's good to show that they are in the battery metals," he said.
(Reporting by Zandi Shabalala and Clara Denina; editing by Barbara Lewis)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Over recent years, world number two miner Rio Tinto RIO.AX, RIO.L has been exploring for copper on Canada-listed junior Midnight Sun's MMA.V licences in Zambia under a joint venture agreement and Anglo American AAL.L has been in discussion with Zambian-focused junior Arc Minerals ARCMA.L to hunt for copper. But the miners will also be keen to retain the loyalty of shareholders they have lured with dividends and buybacks to a high-risk sector that remembers reckless spending in previous commodity booms that were followed by bust. Joint ventures, rather than outright acquisitions, have the advantage of spreading the risks associated with complex minerals that may not provide the margins of the traditional bulk commodities.
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Over recent years, world number two miner Rio Tinto RIO.AX, RIO.L has been exploring for copper on Canada-listed junior Midnight Sun's MMA.V licences in Zambia under a joint venture agreement and Anglo American AAL.L has been in discussion with Zambian-focused junior Arc Minerals ARCMA.L to hunt for copper. By Clara Denina and Zandi Shabalala LONDON, Feb 3 (Reuters) - Big miners, under pressure to increase their exposure to minerals needed to drive the electric vehicle revolution, have so far opted for the cautious approach of joint ventures with small explorers rather than buying them outright. "The reality is that for the big mining companies investment in smaller miners doesn't move the needle that much, but it's good to show that they are in the battery metals," he said.
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Over recent years, world number two miner Rio Tinto RIO.AX, RIO.L has been exploring for copper on Canada-listed junior Midnight Sun's MMA.V licences in Zambia under a joint venture agreement and Anglo American AAL.L has been in discussion with Zambian-focused junior Arc Minerals ARCMA.L to hunt for copper. By Clara Denina and Zandi Shabalala LONDON, Feb 3 (Reuters) - Big miners, under pressure to increase their exposure to minerals needed to drive the electric vehicle revolution, have so far opted for the cautious approach of joint ventures with small explorers rather than buying them outright. Bank of America head of metals research Michael Widmer also said investments in battery metals markets by major miners will not rival spending and profits of established markets such as iron ore, where high margins are far easier to deliver.
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Over recent years, world number two miner Rio Tinto RIO.AX, RIO.L has been exploring for copper on Canada-listed junior Midnight Sun's MMA.V licences in Zambia under a joint venture agreement and Anglo American AAL.L has been in discussion with Zambian-focused junior Arc Minerals ARCMA.L to hunt for copper. By Clara Denina and Zandi Shabalala LONDON, Feb 3 (Reuters) - Big miners, under pressure to increase their exposure to minerals needed to drive the electric vehicle revolution, have so far opted for the cautious approach of joint ventures with small explorers rather than buying them outright. In the venture deals, the big miners help with providing for equipment and labour skills, while the assets are mainly run by the smaller exploring company.
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75f7c2bb-47ae-4244-bae2-a54709a974a0
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3810.0
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2022-02-02 00:00:00 UTC
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U.S. FAA sees 'minimal disruptions' to air travel from 5G amid safety concerns
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-sees-minimal-disruptions-to-air-travel-from-5g-amid-safety-concerns
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nan
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nan
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By David Shepardson
WASHINGTON, Feb 2 (Reuters) - The Federal Aviation Administration (FAA) is confident that aviation safety concerns about 5G C-Band deployment will be addressed "safely with minimal disruptions," the head of the FAA will tell U.S. lawmakers on Thursday, according to testimony seen by Reuters.
FAA Administrator Steve Dickson will tell a House of Representatives Transportation and Infrastructure subcommittee that in the coming weeks FAA will use testing data to "safely enable additional 5G deployment."
The aviation industry and FAA has warned 5G interference can impact sensitive airplane electronics like radio altimeters.
Dickson, a pilot, noted radio altimeters are one of the most crucial pieces of safety equipment aboard an aircraft and are used in low visibility landings.
"Harmful interference affecting any of these systems has the potential to be catastrophic," Dickson's testimony says. "There is no scenario under which harmful interference is acceptable from a safety standpoint."
On Jan. 17, airlines chief executives warned of an impending "catastrophic" aviation crisis that could ground almost all traffic because of the 5G deployment.
Hours before the planned Jan. 19 deployment, Verizon VZ.N and AT&T T.N agreed to delay deploying about 510 5G wireless towers near airports.
The delay did not prevent dozens of countries from canceling flights to the United States, and it cast the U.S. regulatory system in an ugly light.
"Although some flights have been affected by safety mitigations required in 5G deployment areas, significant disruptions to the air transportation system have been avoided," Dickson's testimony says.
House Transportation and Infrastructure committee chairman Peter DeFazio in a written statement released ahead of the hearing said that the recent events show "the current interagency process for auctioning off spectrum is completely
broken."
DeFazio said key questions remain, including how long will the wireless carriers keep the towners turned off near airports.
Nick Calio, who heads Airlines for America, says in written testimony 5G issues facing the aviation industry should have been avoided and it will likely take "years" to permanently address interference issues.
The FAA has cleared 20 altimeter models and approved 90% of the U.S. commercial fleet for landing in low-visibility approaches in areas with C-Band 5G.
"We acknowledge that some altimeters — especially older models used by certain segments of the aviation industry — may not receive approval as being safe in the presence of 5G emissions and interference, and may need to be replaced," Dickson's testimony said.
Reuters reported Tuesday Verizon has won approval to turn on about 14% of the 500 towers it agreed not to deploy near airports. The FAA plans subsequent refinements of the airport buffer zones that will allow further towers to be activated.
Federal Communications Commission chair Jessica Rosenworcel was invited but unable to testify. She spoke to DeFazio and subcommittee chair Rick Larsen on Wednesday about the issue, her office said.
(Reporting by David Shepardson; Editing by Leslie Adler and Aurora Ellis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"Although some flights have been affected by safety mitigations required in 5G deployment areas, significant disruptions to the air transportation system have been avoided," Dickson's testimony says. House Transportation and Infrastructure committee chairman Peter DeFazio in a written statement released ahead of the hearing said that the recent events show "the current interagency process for auctioning off spectrum is completely broken." "We acknowledge that some altimeters — especially older models used by certain segments of the aviation industry — may not receive approval as being safe in the presence of 5G emissions and interference, and may need to be replaced," Dickson's testimony said.
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By David Shepardson WASHINGTON, Feb 2 (Reuters) - The Federal Aviation Administration (FAA) is confident that aviation safety concerns about 5G C-Band deployment will be addressed "safely with minimal disruptions," the head of the FAA will tell U.S. lawmakers on Thursday, according to testimony seen by Reuters. Hours before the planned Jan. 19 deployment, Verizon VZ.N and AT&T T.N agreed to delay deploying about 510 5G wireless towers near airports. "Although some flights have been affected by safety mitigations required in 5G deployment areas, significant disruptions to the air transportation system have been avoided," Dickson's testimony says.
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By David Shepardson WASHINGTON, Feb 2 (Reuters) - The Federal Aviation Administration (FAA) is confident that aviation safety concerns about 5G C-Band deployment will be addressed "safely with minimal disruptions," the head of the FAA will tell U.S. lawmakers on Thursday, according to testimony seen by Reuters. FAA Administrator Steve Dickson will tell a House of Representatives Transportation and Infrastructure subcommittee that in the coming weeks FAA will use testing data to "safely enable additional 5G deployment." "Although some flights have been affected by safety mitigations required in 5G deployment areas, significant disruptions to the air transportation system have been avoided," Dickson's testimony says.
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"Harmful interference affecting any of these systems has the potential to be catastrophic," Dickson's testimony says. Nick Calio, who heads Airlines for America, says in written testimony 5G issues facing the aviation industry should have been avoided and it will likely take "years" to permanently address interference issues. Reuters reported Tuesday Verizon has won approval to turn on about 14% of the 500 towers it agreed not to deploy near airports.
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c5cc2ff3-0daf-4eb3-ad17-72c5b861644c
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3811.0
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2022-02-02 00:00:00 UTC
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Airlines urge White House to end COVID international travel testing rules
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AAL
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https://www.nasdaq.com/articles/airlines-urge-white-house-to-end-covid-international-travel-testing-rules
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nan
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nan
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By David Shepardson
WASHINGTON, Feb 2 (Reuters) - Major airlines, business and travel groups urged the White House on Wednesday to end COVID-19 pre-departure testing requirements for vaccinated international passengers traveling to the United States.
Airlines for America, the U.S. Chamber of Commerce, International Air Transport Association, Aerospace Industries Association, the U.S. Travel Association and other groups called for change in a letter to White House coronavirus response coordinator Jeff Zients.
"Surveys of air passengers indicate that pre-departure testing is a leading factor in the decision not to travel internationally. People simply are unwilling to take the chance that they will be unable to return to the U.S.," they wrote.
The White House declined to comment. Airlines for America, which represents American Airlines, Delta Air Lines Inc DAL.N, United Airlines Holdings UAL.O and others said as of last week international air travel was down 38% over 2019 levels.
In December, the Biden administration imposed tougher new rules requiring international air travelers arriving in the United States to obtain a negative COVID-19 test within one day of travel.
Under prior rules, vaccinated international air travelers could present a negative test result obtained within three days of their day of departure.
The White House and Centers for Disease Control (CDC) previously considered but have never imposed testing requirements for Americans to board domestic flights.
The letter noted that more than 74.3 million people have had COVID-19 in the United States, meaning that at least 22% of the population has had the virus.
"Clearly COVID is widespread throughout the U.S. and attempts to control its importation via air travel under today’s circumstances are unlikely to change that fact," it said.
If any new threatening variants appeared "pre-departure testing could be easily reinstituted," it added.
The European Union recommended countries remove intra-Europe COVID travel restrictions, the letter noted. Britain will end COVID predeparture testing for vaccinated air travelers to enter the country starting Feb. 11.
The groups said "travel and aviation’s recovery is dependent on the government taking steps to remove travel restrictions that are no longer justified by current circumstances."
(Reporting by David Shepardson; Editing by Leslie Adler and Stephen Coates)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The White House and Centers for Disease Control (CDC) previously considered but have never imposed testing requirements for Americans to board domestic flights. "Clearly COVID is widespread throughout the U.S. and attempts to control its importation via air travel under today’s circumstances are unlikely to change that fact," it said. Britain will end COVID predeparture testing for vaccinated air travelers to enter the country starting Feb. 11.
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By David Shepardson WASHINGTON, Feb 2 (Reuters) - Major airlines, business and travel groups urged the White House on Wednesday to end COVID-19 pre-departure testing requirements for vaccinated international passengers traveling to the United States. In December, the Biden administration imposed tougher new rules requiring international air travelers arriving in the United States to obtain a negative COVID-19 test within one day of travel. Under prior rules, vaccinated international air travelers could present a negative test result obtained within three days of their day of departure.
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By David Shepardson WASHINGTON, Feb 2 (Reuters) - Major airlines, business and travel groups urged the White House on Wednesday to end COVID-19 pre-departure testing requirements for vaccinated international passengers traveling to the United States. Airlines for America, the U.S. Chamber of Commerce, International Air Transport Association, Aerospace Industries Association, the U.S. Travel Association and other groups called for change in a letter to White House coronavirus response coordinator Jeff Zients. In December, the Biden administration imposed tougher new rules requiring international air travelers arriving in the United States to obtain a negative COVID-19 test within one day of travel.
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By David Shepardson WASHINGTON, Feb 2 (Reuters) - Major airlines, business and travel groups urged the White House on Wednesday to end COVID-19 pre-departure testing requirements for vaccinated international passengers traveling to the United States. In December, the Biden administration imposed tougher new rules requiring international air travelers arriving in the United States to obtain a negative COVID-19 test within one day of travel. The European Union recommended countries remove intra-Europe COVID travel restrictions, the letter noted.
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3ac443a0-b70f-465f-8fed-cfe48a24a5de
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3812.0
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2022-02-02 00:00:00 UTC
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Allegiant Travel says 'worst' of the pandemic over as results beat target
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AAL
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https://www.nasdaq.com/articles/allegiant-travel-says-worst-of-the-pandemic-over-as-results-beat-target
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nan
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nan
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Feb 2 (Reuters) - Low-cost airline Allegiant Travel Co ALGT.O sailed past estimates for fourth-quarter revenue and profit on Wednesday, and said bookings for leisure travel had started to see a recovery heading into the summer.
Companies in the sector are growing more confident that travel will return despite on-and-off restrictions in response to the Omicron variant of COVID-19.
"Despite the Omicron variant, forward bookings are strong for upcoming peak leisure travel periods," Chief Executive Officer Maurice Gallagher said in a statement, adding that spring break bookings have been particularly robust.
Allegiant's operations were earlier hampered by crew shortages due to Omicron's spread, but Gallagher said he expects that to normalize in time for peak travel in March.
"Case counts have started to recede, thus the worst should be behind us," he said.
Larger carriers American Airlines AAL.O and United Airlines UAL.O have also said that a recovery in passenger traffic was likely in March.
In the fourth quarter, Allegiant doubled its revenue to $496.9 million, higher than analysts' average estimate of $482.3 million, according to Refinitiv IBES data.
Net income came in at $10.7 million, or 59 cents per share, in the three months ended Dec. 31, compared with a loss of $28.8 million, or $1.79 per share, a year earlier.
Excluding items, the company earned $1.18 per share, surpassing expectations of $1.17.
Shares of the U.S. low-cost carrier rose 1% in after-market trade.
(Reporting by Amruta Khandekar and Yuvraj Malik, additional reporting by Deborah Sophia; Editing by Devika Syamnath)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Larger carriers American Airlines AAL.O and United Airlines UAL.O have also said that a recovery in passenger traffic was likely in March. Companies in the sector are growing more confident that travel will return despite on-and-off restrictions in response to the Omicron variant of COVID-19. Allegiant's operations were earlier hampered by crew shortages due to Omicron's spread, but Gallagher said he expects that to normalize in time for peak travel in March.
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Larger carriers American Airlines AAL.O and United Airlines UAL.O have also said that a recovery in passenger traffic was likely in March. Feb 2 (Reuters) - Low-cost airline Allegiant Travel Co ALGT.O sailed past estimates for fourth-quarter revenue and profit on Wednesday, and said bookings for leisure travel had started to see a recovery heading into the summer. "Despite the Omicron variant, forward bookings are strong for upcoming peak leisure travel periods," Chief Executive Officer Maurice Gallagher said in a statement, adding that spring break bookings have been particularly robust.
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Larger carriers American Airlines AAL.O and United Airlines UAL.O have also said that a recovery in passenger traffic was likely in March. Feb 2 (Reuters) - Low-cost airline Allegiant Travel Co ALGT.O sailed past estimates for fourth-quarter revenue and profit on Wednesday, and said bookings for leisure travel had started to see a recovery heading into the summer. "Despite the Omicron variant, forward bookings are strong for upcoming peak leisure travel periods," Chief Executive Officer Maurice Gallagher said in a statement, adding that spring break bookings have been particularly robust.
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Larger carriers American Airlines AAL.O and United Airlines UAL.O have also said that a recovery in passenger traffic was likely in March. Feb 2 (Reuters) - Low-cost airline Allegiant Travel Co ALGT.O sailed past estimates for fourth-quarter revenue and profit on Wednesday, and said bookings for leisure travel had started to see a recovery heading into the summer. "Despite the Omicron variant, forward bookings are strong for upcoming peak leisure travel periods," Chief Executive Officer Maurice Gallagher said in a statement, adding that spring break bookings have been particularly robust.
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18d76649-bf5a-4930-89ad-2dda42862887
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3813.0
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2022-02-02 00:00:00 UTC
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Codelco, Collahuasi copper mine production up in December - Chile's Cochilco
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AAL
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https://www.nasdaq.com/articles/codelco-collahuasi-copper-mine-production-up-in-december-chiles-cochilco
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nan
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nan
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SANTIAGO, Feb 2 (Reuters) - Chilean state-owned Codelco's copper production rose 4.3% year-on-year in December to 164,600 tons and the Collahuasi copper mine - a joint venture by Glencore GLEN.N and Anglo American AAL.L - saw output increase 12.9% to 49,900 tons, the Chilean Copper Commission (Cochilco) reported on Wednesday.
Meanwhile extraction at BHP's BHP.AX Escondida, the world's largest copper mine, fell 17.6% in December to 86,400 tons.
(Reporting by Fabian Cambero)
((anthony.esposito@tr.com; +5255 5282 7140;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
SANTIAGO, Feb 2 (Reuters) - Chilean state-owned Codelco's copper production rose 4.3% year-on-year in December to 164,600 tons and the Collahuasi copper mine - a joint venture by Glencore GLEN.N and Anglo American AAL.L - saw output increase 12.9% to 49,900 tons, the Chilean Copper Commission (Cochilco) reported on Wednesday. Meanwhile extraction at BHP's BHP.AX Escondida, the world's largest copper mine, fell 17.6% in December to 86,400 tons. (Reporting by Fabian Cambero) ((anthony.esposito@tr.com; +5255 5282 7140;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SANTIAGO, Feb 2 (Reuters) - Chilean state-owned Codelco's copper production rose 4.3% year-on-year in December to 164,600 tons and the Collahuasi copper mine - a joint venture by Glencore GLEN.N and Anglo American AAL.L - saw output increase 12.9% to 49,900 tons, the Chilean Copper Commission (Cochilco) reported on Wednesday. Meanwhile extraction at BHP's BHP.AX Escondida, the world's largest copper mine, fell 17.6% in December to 86,400 tons. (Reporting by Fabian Cambero) ((anthony.esposito@tr.com; +5255 5282 7140;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SANTIAGO, Feb 2 (Reuters) - Chilean state-owned Codelco's copper production rose 4.3% year-on-year in December to 164,600 tons and the Collahuasi copper mine - a joint venture by Glencore GLEN.N and Anglo American AAL.L - saw output increase 12.9% to 49,900 tons, the Chilean Copper Commission (Cochilco) reported on Wednesday. Meanwhile extraction at BHP's BHP.AX Escondida, the world's largest copper mine, fell 17.6% in December to 86,400 tons. (Reporting by Fabian Cambero) ((anthony.esposito@tr.com; +5255 5282 7140;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
SANTIAGO, Feb 2 (Reuters) - Chilean state-owned Codelco's copper production rose 4.3% year-on-year in December to 164,600 tons and the Collahuasi copper mine - a joint venture by Glencore GLEN.N and Anglo American AAL.L - saw output increase 12.9% to 49,900 tons, the Chilean Copper Commission (Cochilco) reported on Wednesday. Meanwhile extraction at BHP's BHP.AX Escondida, the world's largest copper mine, fell 17.6% in December to 86,400 tons. (Reporting by Fabian Cambero) ((anthony.esposito@tr.com; +5255 5282 7140;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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e7ce34fa-52db-4e28-ae83-377ea4585025
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3814.0
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2022-02-02 00:00:00 UTC
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American Airlines to buy more 737 MAX jets, defers Dreamliner delivery
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-buy-more-737-max-jets-defers-dreamliner-delivery
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nan
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nan
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Adds details, background
Feb 2 (Reuters) - American Airlines Group Inc AAL.O said on Wednesday it has agreed to buy an additional 23 737 MAX 8 aircraft from Boeing Co BA.N by exercising existing purchase options and deferring the delivery of some 787-9 Dreamliner aircraft.
The airline's move to boost its 737 MAX fleet comes at a time when domestic travel in the United States is staging a recovery, despite the disruption caused by the Omicron variant of the coronavirus.
American Airlines said in a filing that it intends to convert seven more of its purchase options for the MAX this year, bringing its order of the 737 MAX 8 aircraft to 30.
The company has deferred the delivery of Boeing's long-haul 787-9 Dreamliner aircraft that was scheduled to be handed over in January next year.
Deliveries of aircraft will now begin in the fourth quarter of 2023 and will continue into 2027, with four 787-9 aircraft now scheduled for delivery in 2023, American said.
Boeing, which is already paying penalties to American Airlines for pushing back deliveries, said it had incurred $4.5 billion charges in the fourth quarter on its 787 program that is grappling with production defects.
Boeing did not immediately respond to a Reuters request for comment.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Shounak Dasgupta and Aditya Soni)
((Abhijith.G@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Adds details, background Feb 2 (Reuters) - American Airlines Group Inc AAL.O said on Wednesday it has agreed to buy an additional 23 737 MAX 8 aircraft from Boeing Co BA.N by exercising existing purchase options and deferring the delivery of some 787-9 Dreamliner aircraft. The airline's move to boost its 737 MAX fleet comes at a time when domestic travel in the United States is staging a recovery, despite the disruption caused by the Omicron variant of the coronavirus. The company has deferred the delivery of Boeing's long-haul 787-9 Dreamliner aircraft that was scheduled to be handed over in January next year.
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Adds details, background Feb 2 (Reuters) - American Airlines Group Inc AAL.O said on Wednesday it has agreed to buy an additional 23 737 MAX 8 aircraft from Boeing Co BA.N by exercising existing purchase options and deferring the delivery of some 787-9 Dreamliner aircraft. American Airlines said in a filing that it intends to convert seven more of its purchase options for the MAX this year, bringing its order of the 737 MAX 8 aircraft to 30. The company has deferred the delivery of Boeing's long-haul 787-9 Dreamliner aircraft that was scheduled to be handed over in January next year.
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Adds details, background Feb 2 (Reuters) - American Airlines Group Inc AAL.O said on Wednesday it has agreed to buy an additional 23 737 MAX 8 aircraft from Boeing Co BA.N by exercising existing purchase options and deferring the delivery of some 787-9 Dreamliner aircraft. American Airlines said in a filing that it intends to convert seven more of its purchase options for the MAX this year, bringing its order of the 737 MAX 8 aircraft to 30. Deliveries of aircraft will now begin in the fourth quarter of 2023 and will continue into 2027, with four 787-9 aircraft now scheduled for delivery in 2023, American said.
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Adds details, background Feb 2 (Reuters) - American Airlines Group Inc AAL.O said on Wednesday it has agreed to buy an additional 23 737 MAX 8 aircraft from Boeing Co BA.N by exercising existing purchase options and deferring the delivery of some 787-9 Dreamliner aircraft. The airline's move to boost its 737 MAX fleet comes at a time when domestic travel in the United States is staging a recovery, despite the disruption caused by the Omicron variant of the coronavirus. Deliveries of aircraft will now begin in the fourth quarter of 2023 and will continue into 2027, with four 787-9 aircraft now scheduled for delivery in 2023, American said.
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af6e5744-e325-44c2-b725-e2c9cb09794c
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3815.0
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2022-02-01 00:00:00 UTC
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U.S. airline group warns 5G interference issues could linger for years
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AAL
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https://www.nasdaq.com/articles/u.s.-airline-group-warns-5g-interference-issues-could-linger-for-years-0
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nan
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nan
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By David Shepardson
WASHINGTON, Feb 1 (Reuters) - It will likely take "years" to permanently address airplane interference issues caused by the deployment of 5G wireless in the C-band, a group representing major U.S. passenger and cargo carriers will tell U.S. lawmakers on Thursday.
Nick Calio, who heads Airlines for America, will tell a House Transportation and Infrastructure subcommittee in written testimony that the 5G issues facing the aviation industry should have been avoided.
"The process that led to this operational nightmare should be held up as a cautionary tale of government communication and coordination gone awry," his testimony, reviewed by Reuters and not yet made public, says.
"It will likely take years, not days or weeks, to fully and permanently mitigate the interference issues caused by deployment of 5G in the C-band," adds Calio, whose group represents American Airlines AAL.O, United Airlines UAL.O, FedEx FDX.N and other major carriers.
Verizon and AT&T in January agreed to delay deploying some 5G wireless towers near airports after the aviation industry and Federal Aviation Administration (FAA) warned 5G interference can impact sensitive airplane electronics like radio altimeters.
The FAA said last week it has cleared 20 altimeter models and approved 90% of the U.S. commercial fleet for landing in low-visibility approaches in areas with C-Band 5G. But 5G has impacted some flights in poor weather, especially some regional jets.
Aerospace Industries Association President Eric Fanning will tell lawmakers that progress is being made on the problem but it is not yet solved.
"With many outstanding questions still on the table, there are disruptions in our future, even with further compromise and collaboration," his testimony says.
The hearing will also feature testimony from FAA Administrator Steve Dickson, wireless industry group CTIA CEO Meredith Attwell Baker and others.
A spokesman for the committee said the Federal Communications Commission (FCC) was invited to testify but was unable to appear. The FCC did not immediately comment.
Baker will tell lawmakers the wireless industry "remains confident that 5G poses no risk to air traffic safety".
Air Line Pilots Association President Joe DePete says the FCC's support of the telecom industry has "not only put the public at risk, but it has also forced pilots to perform extensive workarounds to ensure the safety of flight."
Cathryn Stephens, an airport official appearing on behalf of the American Association of Airport Executives, will tell lawmakers that "pockets of pain persist and it is clear that the reprieve may be temporary and dependent on the willingness of the telecoms to operate in a limited fashion in some areas."
EXPLAINER-Do 5G telecoms pose a threat to airline safety?ID:nL1N2TZ0O0
(Reporting by David Shepardson; editing by Richard Pullin)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"It will likely take years, not days or weeks, to fully and permanently mitigate the interference issues caused by deployment of 5G in the C-band," adds Calio, whose group represents American Airlines AAL.O, United Airlines UAL.O, FedEx FDX.N and other major carriers. By David Shepardson WASHINGTON, Feb 1 (Reuters) - It will likely take "years" to permanently address airplane interference issues caused by the deployment of 5G wireless in the C-band, a group representing major U.S. passenger and cargo carriers will tell U.S. lawmakers on Thursday. Nick Calio, who heads Airlines for America, will tell a House Transportation and Infrastructure subcommittee in written testimony that the 5G issues facing the aviation industry should have been avoided.
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"It will likely take years, not days or weeks, to fully and permanently mitigate the interference issues caused by deployment of 5G in the C-band," adds Calio, whose group represents American Airlines AAL.O, United Airlines UAL.O, FedEx FDX.N and other major carriers. By David Shepardson WASHINGTON, Feb 1 (Reuters) - It will likely take "years" to permanently address airplane interference issues caused by the deployment of 5G wireless in the C-band, a group representing major U.S. passenger and cargo carriers will tell U.S. lawmakers on Thursday. Verizon and AT&T in January agreed to delay deploying some 5G wireless towers near airports after the aviation industry and Federal Aviation Administration (FAA) warned 5G interference can impact sensitive airplane electronics like radio altimeters.
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"It will likely take years, not days or weeks, to fully and permanently mitigate the interference issues caused by deployment of 5G in the C-band," adds Calio, whose group represents American Airlines AAL.O, United Airlines UAL.O, FedEx FDX.N and other major carriers. By David Shepardson WASHINGTON, Feb 1 (Reuters) - It will likely take "years" to permanently address airplane interference issues caused by the deployment of 5G wireless in the C-band, a group representing major U.S. passenger and cargo carriers will tell U.S. lawmakers on Thursday. Verizon and AT&T in January agreed to delay deploying some 5G wireless towers near airports after the aviation industry and Federal Aviation Administration (FAA) warned 5G interference can impact sensitive airplane electronics like radio altimeters.
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"It will likely take years, not days or weeks, to fully and permanently mitigate the interference issues caused by deployment of 5G in the C-band," adds Calio, whose group represents American Airlines AAL.O, United Airlines UAL.O, FedEx FDX.N and other major carriers. By David Shepardson WASHINGTON, Feb 1 (Reuters) - It will likely take "years" to permanently address airplane interference issues caused by the deployment of 5G wireless in the C-band, a group representing major U.S. passenger and cargo carriers will tell U.S. lawmakers on Thursday. Baker will tell lawmakers the wireless industry "remains confident that 5G poses no risk to air traffic safety".
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1b6513ad-99e4-49f6-b99a-ef43c7b8e4ca
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3816.0
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2022-02-01 00:00:00 UTC
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U.S. airline group warns 5G interference issues could linger for years
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AAL
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https://www.nasdaq.com/articles/u.s.-airline-group-warns-5g-interference-issues-could-linger-for-years
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nan
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nan
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WASHINGTON, Feb 1 (Reuters) - A group representing major U.S. passenger and cargo carriers will tell U.S. lawmakers on Thursday that it will likely take "years" to permanently address airplane interference issues caused by deployment of 5G in the C-band.
Airlines for America, which represents American Airlines AAL.O, United Airlines UAL.O, FedEx FDX.N and other major carriers, will tell a House Transportation and Infrastructure subcommittee in written testimony seen by Reuters the "U.S. aviation industry should not be in this position and the process that led to this operational nightmare should be held up as a cautionary tale of government communication and coordination gone awry."
(Reporting by David Shepardson Editing by Chris Reese)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Airlines for America, which represents American Airlines AAL.O, United Airlines UAL.O, FedEx FDX.N and other major carriers, will tell a House Transportation and Infrastructure subcommittee in written testimony seen by Reuters the "U.S. aviation industry should not be in this position and the process that led to this operational nightmare should be held up as a cautionary tale of government communication and coordination gone awry." WASHINGTON, Feb 1 (Reuters) - A group representing major U.S. passenger and cargo carriers will tell U.S. lawmakers on Thursday that it will likely take "years" to permanently address airplane interference issues caused by deployment of 5G in the C-band. (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airlines for America, which represents American Airlines AAL.O, United Airlines UAL.O, FedEx FDX.N and other major carriers, will tell a House Transportation and Infrastructure subcommittee in written testimony seen by Reuters the "U.S. aviation industry should not be in this position and the process that led to this operational nightmare should be held up as a cautionary tale of government communication and coordination gone awry." WASHINGTON, Feb 1 (Reuters) - A group representing major U.S. passenger and cargo carriers will tell U.S. lawmakers on Thursday that it will likely take "years" to permanently address airplane interference issues caused by deployment of 5G in the C-band. (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airlines for America, which represents American Airlines AAL.O, United Airlines UAL.O, FedEx FDX.N and other major carriers, will tell a House Transportation and Infrastructure subcommittee in written testimony seen by Reuters the "U.S. aviation industry should not be in this position and the process that led to this operational nightmare should be held up as a cautionary tale of government communication and coordination gone awry." WASHINGTON, Feb 1 (Reuters) - A group representing major U.S. passenger and cargo carriers will tell U.S. lawmakers on Thursday that it will likely take "years" to permanently address airplane interference issues caused by deployment of 5G in the C-band. (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airlines for America, which represents American Airlines AAL.O, United Airlines UAL.O, FedEx FDX.N and other major carriers, will tell a House Transportation and Infrastructure subcommittee in written testimony seen by Reuters the "U.S. aviation industry should not be in this position and the process that led to this operational nightmare should be held up as a cautionary tale of government communication and coordination gone awry." WASHINGTON, Feb 1 (Reuters) - A group representing major U.S. passenger and cargo carriers will tell U.S. lawmakers on Thursday that it will likely take "years" to permanently address airplane interference issues caused by deployment of 5G in the C-band. (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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1362b51f-5d7c-4e6f-aa7c-fe4d96ac7539
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3817.0
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2022-02-01 00:00:00 UTC
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Chile assembly debates nationalizing copper; industry calls idea ‘barbaric’
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AAL
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https://www.nasdaq.com/articles/chile-assembly-debates-nationalizing-copper-industry-calls-idea-barbaric
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nan
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nan
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SANTIAGO, Feb 1 (Reuters) - Chile's constituent assembly approved on Tuesday an early stage proposal that could lead to the nationalization of the country's copper industry, sparking an angry response from mining firms in the world’s top producer of the red metal.
The environmental commission of the assembly, which is drafting Chile’s new constitution, green lit the proposal "for the Nationalization and New Social and Environmental Management of Copper Mining, Lithium and other Strategic Assets".
The proposal would still face a vote from the full assembly to be included in the final draft text, which would itself go before a national referendum vote later this year.
Chile is rewriting its Constitution to replace a market-centric one that dates back to the military dictatorship of General Augusto Pinochet. Debate on the draft will start in earnest later this month, but proposals have already started to cause jitters in some sectors.
"The proposal adopted is barbaric, with clear and obvious legal errors,” said Diego Hernández, president of the National Mining Society, which represents companies in the sector.
He said the measure would nationalize companies themselves as well as just the metal resources and would have a major economic and legal impact.
"A nationalization would have serious consequences for our economy in a context of globalization, since the affected companies will resort to these treaties to defend their legitimate interests," he added.
The mining industry has called for preserving legal protections to ensure future investments in the sector in the world's largest copper producer and the second-largest lithium producer.
Members of the Constitutional assembly have pointed out that the proposal could be adjusted or even scrapped.
(Reporting by Fabián Andrés Cambero; Writing by Carolina Pulice; Editing by Andrea Ricci)
((carolina.pulice@thomsonreuters.com; twitter: @fab_reuters; +569 62479675;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
SANTIAGO, Feb 1 (Reuters) - Chile's constituent assembly approved on Tuesday an early stage proposal that could lead to the nationalization of the country's copper industry, sparking an angry response from mining firms in the world’s top producer of the red metal. "The proposal adopted is barbaric, with clear and obvious legal errors,” said Diego Hernández, president of the National Mining Society, which represents companies in the sector. "A nationalization would have serious consequences for our economy in a context of globalization, since the affected companies will resort to these treaties to defend their legitimate interests," he added.
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The environmental commission of the assembly, which is drafting Chile’s new constitution, green lit the proposal "for the Nationalization and New Social and Environmental Management of Copper Mining, Lithium and other Strategic Assets". He said the measure would nationalize companies themselves as well as just the metal resources and would have a major economic and legal impact. The mining industry has called for preserving legal protections to ensure future investments in the sector in the world's largest copper producer and the second-largest lithium producer.
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SANTIAGO, Feb 1 (Reuters) - Chile's constituent assembly approved on Tuesday an early stage proposal that could lead to the nationalization of the country's copper industry, sparking an angry response from mining firms in the world’s top producer of the red metal. The environmental commission of the assembly, which is drafting Chile’s new constitution, green lit the proposal "for the Nationalization and New Social and Environmental Management of Copper Mining, Lithium and other Strategic Assets". "The proposal adopted is barbaric, with clear and obvious legal errors,” said Diego Hernández, president of the National Mining Society, which represents companies in the sector.
|
SANTIAGO, Feb 1 (Reuters) - Chile's constituent assembly approved on Tuesday an early stage proposal that could lead to the nationalization of the country's copper industry, sparking an angry response from mining firms in the world’s top producer of the red metal. The environmental commission of the assembly, which is drafting Chile’s new constitution, green lit the proposal "for the Nationalization and New Social and Environmental Management of Copper Mining, Lithium and other Strategic Assets". The proposal would still face a vote from the full assembly to be included in the final draft text, which would itself go before a national referendum vote later this year.
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752a625f-1b19-4feb-b75d-6f819aa5139f
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3818.0
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2022-02-01 00:00:00 UTC
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7 Stocks to Watch in This Current Earnings Season
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AAL
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https://www.nasdaq.com/articles/7-stocks-to-watch-in-this-current-earnings-season
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The earnings season has picked up momentum, with many stocks reporting over the next few weeks. Analysts predict to see robust earnings growth in old economy stocks that include cyclical sectors, energy, materials, industrials, and consumer discretionary names. Meanwhile, following recent price declines, many tech shares are also offering better value. Therefore, today’s article introduces seven stocks to watch in February.
Corporate announcements also reveal how companies have been coping with rising inflation over the past few months. Inflation is now around 7% on an annualized basis, as measured by the Consumer Price Index (CPI). Therefore, identifying stocks that have pricing power, or the ability to increase prices without impacting demand, might hold the key for lucrative returns in 2022.
In January, the Dow Jones Industrial Average, S&P 500 index, and NASDAQ 100 index fell around 4.4%, 86.9%, and 11.5%, respectively. Understandably, these declines can feel unnerving. Yet seasoned investors are welcoming the volatility as a great buying opportunity, especially in names that had become frothy over the past year.
7 Lesser-Known Retail Stocks to Check Out Now
With that information, here are the seven stocks to watch for the near future:
American Airlines (NASDAQ:AAL)
Block (NYSE:SQ)
Novavax (NASDAQ:NVAX)
Palo Alto Networks (NASDAQ:PANW)
Pinterest (NYSE:PINS)
Target (NYSE:TGT)
Workday (NASDAQ:WDAY)
Stocks to Watch: American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
52-week range: $15.33 – $26.09
Fort Worth, Texas-based American Airlines is one of the largest airlines by scheduled revenue passenger miles worldwide. Like other travel stocks, AAL shares became vulnerable during the pandemic, and many still have a lot to prove in 2022.
Management issued fourth-quarter and full-year 2021 results on Jan. 20. Revenue came in at $9.43 billion, up 134% year-over-year (YOY), yet down 17% compared to the same period in 2019. The net loss narrowed to $921 million, or $1.42 per diluted share, down from $2.2 billion, or $3.81 per diluted share, a year ago. Cash and equivalents ended the period at $15.8 billion.
Given that the company ended last year with over $46 billion of debt and lease liabilities, it could take well over a year of solid profits to fix the airline’s balance sheet. However, Wall Street is debating if that could be a likely scenario. After all, the airline faces significant cost pressures, especially due to rising oil prices and surging interest expense.
Meanwhile, reduced travel demand due to the omicron variant is expected to lead to another significant loss in the first quarter. As a result, management anticipates revenue to fall 20% to 22% compared with the first quarter of 2019.
AAL stock is priced at slightly below $17, up 7% over the 12 months. However, it’s down 8.5% YTD. Shares are trading at 0.35 times trailing sales. The 12-month median price forecast for American Airlines stock stands at $19.
Block (SQ)
Source: Sergei Elagin / Shutterstock.com
52-week range: $102.00 – $289.23
Financial technology (fintech) name Block, formerly Square, offers a commerce and payments ecosystem for merchants. In addition, Block’s Cash App has evolved to become a personal finance platform that powers peer-to-peer (P2P) payments as well as trading in Bitcoin (CCC:BTC-USD).
Block is known for its innovative approach to the fintech sphere. However, in recent days, SQ stock investors were left scratching their heads as Apple (NASDAQ:AAPL) made the news in the payments space. The tech giant “is reportedly planning a new service that will allow businesses to accept payments using an iPhone without the need for extra hardware.” Now investors wonder how Block’s business might be affected in future quarters.
7 Triple-A Rated Stocks to Buy Now
Square released Q3 results in early November. Revenue of $3.84 billion was up 27% YOY. Net income came in at $0.1 million, down from $37 million in the prior-year quarter. Cash and equivalents ended the quarter at $6.9 billion. The next report is due after the market close on Feb. 24; the Zacks Consensus Estimate is for 20 cents per share.
Cash App allows Block to generate revenue from various channels, including merchant fees, bank transfers, and investments. The platform grew faster than Block’s seller business, which generates revenue from transaction processing fees and subscription services.
Moreover, Block is on track to close its $29 billion acquisition of “buy now, pay later” company Afterpay. The deal aims to serve as a bridge between its seller ecosystem and Cash App.
Block lost more than half its value over the past three months. SQ stock is currently priced at $120, down 42% in the last 12 months. Shares look historically cheap at just 3.8 times trailing sales. The 12-month median price forecast for Block stock is $244.
Stocks to Watch: Novavax (NVAX)
Source: Ascannio/Shutterstock.com
52-week range: $66.38 – $331.68
Gaithersburg, Maryland-based Novavax is a clinical-stage biotech name that focuses on developing and commercializing vaccines. With the pandemic, the healthcare group came under the limelight.
The company’s COVID-19 vaccine, NVX-CoV2373, was tested in two large-scale studies, resulting in vaccine efficacies (VEs) of about 90%. These are strong results that could allow Novavax to get ahead of other vaccine players like AstraZeneca (NASDAQ:AZN) and Johnson & Johnson (NYSE:JNJ).
Management has already committed to delivering at least 430 million doses worldwide via advance purchase agreements. For instance, last week the Israeli Ministry of Health and Novavax signed such an agreement for five million doses. However, the U.S. Food and Drug Administration (FDA) has not yet approved the vaccine, a fact that has put pressure on NVAX shares.
Novavax issued Q3 2021 results on Nov. 4. Revenue increased 14% YOY to $179 million. At present, the pharma name relies on development agreements for revenue.
During the quarter, net loss widened to $322 million, or $4.31 per share, compared to $197 million, or $3.21 per share, in the prior-year period. Cash and equivalents ended the quarter at $1.9 billion. The next report is due on March 7; the Zacks Consensus Estimate is for 19 cents per share.
NVAX stock hovers around $77, down 46% year-to-date (YTD). Shares are now at a more reasonable valuation at just 3.4x forward earnings and 9.95x trailing sales. The 12-month median price forecast for Novavax stock currently stands at $266.
Palo Alto Networks (PANW)
Source: Sundry Photography / Shutterstock.com
52-week range: $311.56 – $572.67
Palo Alto Networks is one of the largest cybersecurity providers by revenue, serving over 85,000 customers worldwide. Its product portfolio includes firewalls and endpoint protection products and services. Management has been expanding cloud-based security and artificial intelligence (AI)-powered threat detection services. As a result, annual sales are approaching $5 billion.
The group issued Q1 FY22 results on Nov. 18. Revenue grew 32% YOY to $1.2 billion. Net income came in at $170.3 million, or $1.64 per diluted share, up from $158.1 million, or $1.62 per diluted share, in the previous year. Cash and equivalents ended the quarter at $2.27 billion.
Its security ecosystem boasts the cloud security platform Prisma and AI-powered threat detection platform Cortex. Management is forecasting a 26%-27% revenue increase for fiscal year 2022. Increased reliance on tech during the pandemic has made cybersecurity protection a top priority for businesses and individuals alike.
7 Lesser-Known Retail Stocks to Check Out Now
PANW stock changes hands around $500, up 42% over the past 12 months. Shares are trading at 74x forward earnings and 11.3x trailing sales. The 12-month median price forecast for Palo Alto Networks stock is $612.50.
Stocks to Watch: Pinterest (PINS)
Source: Nopparat Khokthong / Shutterstock.com
52-week range: $27.75 – $89.90
Pinterest is well-known as an online sharing and discovery platform. With around 455 million monthly users, the platform has become a leading site for merchants and creators to advertise their products. In addition, client sites at Shopify (NYSE:SHOP) can upload their catalogs into Pinterest’s feed results.
The social media company released Q3 2021 results in early November. Total revenue grew 43% YOY to $633 million. Net income increased 119% YOY to $191 million, or 28 cents per diluted share, up from $87 million in the previous year. Cash and equivalents stood at $1.2 billion.
For platform names like Pinterest, robust engagement metrics are the key to future success. In the U.S., Pinterest has been struggling to preserve monthly activity on its platform, especially since the end of the pandemic.
As a result, management has been investing heavily to maintain its user base and grow its average revenue per user. During the quarter, U.S. and international revenue grew 33% and 96%, respectively.
PINS changes hands around $30, down 60% in the past 12 months. Shares are trading at 34.6 times forward earnings and 10.3 times trailing sales. The 12-month median price forecast for Pinterest stock is $50.
Target (TGT)
Source: jejim / Shutterstock.com
52-week range: $166.82 – $268.98
Dividend yield: 1.68%
The leading general merchandise retailer Target has close to 2,000 stores. The group also boasts robust omnichannel shopping capabilities, including key digital shopping options. In addition, the retailer has partnered with Apple (NASDAQ:AAPL), Walt Disney (NYSE:DIS), and Ulta Beauty (NASDAQ:ULTA) to create shop-in-shops, which fuel higher levels of customer traffic.
Target announced Q3 2021 results on Nov. 17. Revenue grew 13.3% YOY to $25.7 billion. Net earnings came in at $1.49 billion, or $3.04 per diluted share, up from $1.01 billion in the prior-year quarter. Cash and equivalents ended the period at $5.75 billion. The next report is due on March 1; the Zacks Consensus Estimate is for $2.85 per share.
On the results, CEO Brian Cornell remarked, “Following comp growth of nearly 21 percent a year ago, our third quarter comp increase of 12.7 percent was driven entirely by traffic, and reflects continued strength in our store sales, same-day digital fulfillment services.”
The retailer’s same-day delivery and in-store pickup services are key growth drivers. Orders using same-day services increased 60% during the quarter.
7 Triple-A Rated Stocks to Buy Now
TGT stock hovers around $215, up over 12% over the past 12 months. Meanwhile, the Dividend King stock currently generates a 1.7% dividend yield. Shares look reasonably valued at 18.15 times forward earnings and 1.15 times trailing sales.
The 12-month median price forecast for Target stock stands at $280. If you want to invest in businesses with robust earnings prospects, Target stock needs to be on your watchlist.
Stocks to Watch: Workday (WDAY)
Source: Sundry Photography / Shutterstock.com
52-week range: $217.60 – $307.81
Pleasanton, California-based Workday provides enterprise cloud applications for finance and human resources (HR). Its enterprise cloud applications have been adopted by close to half of the Fortune 500..
The pandemic saw a significant increase in the number of employees working from home. As a result, put HR management platforms like Workday have been in the limelight. Now, the company boasts a strong brand name as well as a significant recurring revenue base.
Workday released FY22 Q3 results on Nov. 18. Revenue increased 20% YOY to $1.33 billion. Net income was $287 million, or $1.10 per diluted share, compared to $220 million in the prior-year quarter. Cash and marketable securities ended the quarter at $3.55 billion. The next report is due on Feb. 24; the Zacks Consensus Estimate is for 71 cents per share.
“We reported a strong third quarter, once again accelerating subscription revenue growth, as organizations across the globe look to Workday as their strategic partner in driving their Finance and HR digital transformations,” said CFO Robynne Sisco.
Meanwhile, management anticipates fourth-quarter subscription revenue to come in at almost $1.22 billion, representing 21% growth.
WDAY hovers around $236, down 1% (or flat) over the past 12 months. Despite declining 15% YTD, shares are trading at 77.5 times forward earnings and 14.3 times trailing sales. In other words, they are still frothy. The 12-month median price forecast for Workday stock is $325. Interested readers could consider waiting for a pullback to buy the stock.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.
The post 7 Stocks to Watch in This Current Earnings Season appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7 Lesser-Known Retail Stocks to Check Out Now With that information, here are the seven stocks to watch for the near future: American Airlines (NASDAQ:AAL) Block (NYSE:SQ) Novavax (NASDAQ:NVAX) Palo Alto Networks (NASDAQ:PANW) Pinterest (NYSE:PINS) Target (NYSE:TGT) Workday (NASDAQ:WDAY) Stocks to Watch: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 52-week range: $15.33 – $26.09 Fort Worth, Texas-based American Airlines is one of the largest airlines by scheduled revenue passenger miles worldwide. Like other travel stocks, AAL shares became vulnerable during the pandemic, and many still have a lot to prove in 2022. AAL stock is priced at slightly below $17, up 7% over the 12 months.
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7 Lesser-Known Retail Stocks to Check Out Now With that information, here are the seven stocks to watch for the near future: American Airlines (NASDAQ:AAL) Block (NYSE:SQ) Novavax (NASDAQ:NVAX) Palo Alto Networks (NASDAQ:PANW) Pinterest (NYSE:PINS) Target (NYSE:TGT) Workday (NASDAQ:WDAY) Stocks to Watch: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 52-week range: $15.33 – $26.09 Fort Worth, Texas-based American Airlines is one of the largest airlines by scheduled revenue passenger miles worldwide. Like other travel stocks, AAL shares became vulnerable during the pandemic, and many still have a lot to prove in 2022. AAL stock is priced at slightly below $17, up 7% over the 12 months.
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7 Lesser-Known Retail Stocks to Check Out Now With that information, here are the seven stocks to watch for the near future: American Airlines (NASDAQ:AAL) Block (NYSE:SQ) Novavax (NASDAQ:NVAX) Palo Alto Networks (NASDAQ:PANW) Pinterest (NYSE:PINS) Target (NYSE:TGT) Workday (NASDAQ:WDAY) Stocks to Watch: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 52-week range: $15.33 – $26.09 Fort Worth, Texas-based American Airlines is one of the largest airlines by scheduled revenue passenger miles worldwide. Like other travel stocks, AAL shares became vulnerable during the pandemic, and many still have a lot to prove in 2022. AAL stock is priced at slightly below $17, up 7% over the 12 months.
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7 Lesser-Known Retail Stocks to Check Out Now With that information, here are the seven stocks to watch for the near future: American Airlines (NASDAQ:AAL) Block (NYSE:SQ) Novavax (NASDAQ:NVAX) Palo Alto Networks (NASDAQ:PANW) Pinterest (NYSE:PINS) Target (NYSE:TGT) Workday (NASDAQ:WDAY) Stocks to Watch: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 52-week range: $15.33 – $26.09 Fort Worth, Texas-based American Airlines is one of the largest airlines by scheduled revenue passenger miles worldwide. Like other travel stocks, AAL shares became vulnerable during the pandemic, and many still have a lot to prove in 2022. AAL stock is priced at slightly below $17, up 7% over the 12 months.
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6a29d39e-8b85-4fb0-a159-3d612354ae95
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3819.0
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2022-01-31 00:00:00 UTC
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Botswana's Debswana annual diamond sales jump 64%
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AAL
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https://www.nasdaq.com/articles/botswanas-debswana-annual-diamond-sales-jump-64
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GABORONE, Jan 31 (Reuters) - Sales of rough diamonds by Debswana Diamond Company jumped 64% in 2021, statistics released by the Bank of Botswana showed on Monday, driven by the reopening of key global consumer markets.
The total value of Debswana's diamond exports stood at $3.466 billion in 2021 compared with $2.120 billion in 2020, the central bank data showed.
Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, sells 75% of its output to De Beers with the balance taken up by the state-owned Okavango Diamond Company.
Debswana sales fell by 30% in 2020 as the coronavirus pandemic hit demand while global travel restrictions impacted trading. Since mid-2020 De Beers has shifted some of its rough diamond viewings to international diamond centres such as Antwerp to cater for customers unable to travel to Gaborone.
"Demand for rough diamonds remained robust, with positive midstream sentiment and strong demand for diamond jewellery continuing over the holiday period, particularly in the key U.S. consumer market," Anglo American said in a production update last Thursday.
Debswana accounts for almost all Botswana's diamond exports, with Lucara Diamond Corp's LUC.TO Karowe mine being the only other operating diamond mine in the country.
Botswana gets about 30% of its revenues and 70% of its foreign exchange earnings from diamonds. The southern African country expects its economy to have grown by 9.7% in 2021, after an 8.5% contraction in 2020.
Debswana's production increased by 35% to 22.326 million carats in 2021 from 16.559 million carats in 2020, mostly due to higher-grade ore being treated at its flagship Jwaneng mine, Anglo American said.
Russia's Alrosa ALRS.MM, the world's largest producer of rough diamonds and a competitor of De Beers, reported revenue jumped by 49% to $4.2 billion last year as demand exceeded supply.
Alrosa sales revenue up 49% as diamond demand outstrips supply
(Reporting by Brian Benza in Gaborone; Editing by Helen Reid and Lisa Shumaker)
((nqobile.dludla@thomsonreuters.com; +27103461066;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, sells 75% of its output to De Beers with the balance taken up by the state-owned Okavango Diamond Company. Debswana sales fell by 30% in 2020 as the coronavirus pandemic hit demand while global travel restrictions impacted trading. Russia's Alrosa ALRS.MM, the world's largest producer of rough diamonds and a competitor of De Beers, reported revenue jumped by 49% to $4.2 billion last year as demand exceeded supply.
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Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, sells 75% of its output to De Beers with the balance taken up by the state-owned Okavango Diamond Company. GABORONE, Jan 31 (Reuters) - Sales of rough diamonds by Debswana Diamond Company jumped 64% in 2021, statistics released by the Bank of Botswana showed on Monday, driven by the reopening of key global consumer markets. Russia's Alrosa ALRS.MM, the world's largest producer of rough diamonds and a competitor of De Beers, reported revenue jumped by 49% to $4.2 billion last year as demand exceeded supply.
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Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, sells 75% of its output to De Beers with the balance taken up by the state-owned Okavango Diamond Company. GABORONE, Jan 31 (Reuters) - Sales of rough diamonds by Debswana Diamond Company jumped 64% in 2021, statistics released by the Bank of Botswana showed on Monday, driven by the reopening of key global consumer markets. "Demand for rough diamonds remained robust, with positive midstream sentiment and strong demand for diamond jewellery continuing over the holiday period, particularly in the key U.S. consumer market," Anglo American said in a production update last Thursday.
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Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, sells 75% of its output to De Beers with the balance taken up by the state-owned Okavango Diamond Company. GABORONE, Jan 31 (Reuters) - Sales of rough diamonds by Debswana Diamond Company jumped 64% in 2021, statistics released by the Bank of Botswana showed on Monday, driven by the reopening of key global consumer markets. Debswana sales fell by 30% in 2020 as the coronavirus pandemic hit demand while global travel restrictions impacted trading.
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3820.0
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2022-01-31 00:00:00 UTC
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S.Africa's Amplats to sell stake in two mines to rival Sibanye
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https://www.nasdaq.com/articles/s.africas-amplats-to-sell-stake-in-two-mines-to-rival-sibanye
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Adds details
Jan 31 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J will sell a 50% interest in its Kroondal and Marikana operations in Rustenburg to the north-west of Johannesburg to Sibanye Stillwater SSWJ.J, the platinum group metals miners (PGM) said on Monday.
Sibanye Stillwater would acquire the projects for a cash consideration of 1 rand ($0.0643), and all associated
liabilities of the projects, including costs related to rehabilitation estimated at 415 million rand.
As part of the transaction, Sibanye would also deliver 1.35 million ounces of platinum concentrate from Kroondal to Amplats' Rustenberg smelting operations.
Amplats says its Kroondal and Marikana operations had limited strategic value under the world's leading PGM producer's broader plans.
Sibanye, however, says the transaction will extend Kroondal's life of mine to 2029 and save jobs.
Both mines have a combined workforce of over 30,000 people, Sibanye said.
($1 = 15.5560 rand)
(Reporting by Nelson Banya in Harare and Shanima A in Bengaluru; Editing by Rashmi Aich, Promit Mukherjee and Louise Heavens)
((shanima.a@thomsonreuters.com; (Direct: +91 77 6034 7399 );))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As part of the transaction, Sibanye would also deliver 1.35 million ounces of platinum concentrate from Kroondal to Amplats' Rustenberg smelting operations. Amplats says its Kroondal and Marikana operations had limited strategic value under the world's leading PGM producer's broader plans. ($1 = 15.5560 rand) (Reporting by Nelson Banya in Harare and Shanima A in Bengaluru; Editing by Rashmi Aich, Promit Mukherjee and Louise Heavens) ((shanima.a@thomsonreuters.com; (Direct: +91 77 6034 7399 );)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details Jan 31 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J will sell a 50% interest in its Kroondal and Marikana operations in Rustenburg to the north-west of Johannesburg to Sibanye Stillwater SSWJ.J, the platinum group metals miners (PGM) said on Monday. As part of the transaction, Sibanye would also deliver 1.35 million ounces of platinum concentrate from Kroondal to Amplats' Rustenberg smelting operations. Amplats says its Kroondal and Marikana operations had limited strategic value under the world's leading PGM producer's broader plans.
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Adds details Jan 31 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J will sell a 50% interest in its Kroondal and Marikana operations in Rustenburg to the north-west of Johannesburg to Sibanye Stillwater SSWJ.J, the platinum group metals miners (PGM) said on Monday. Sibanye Stillwater would acquire the projects for a cash consideration of 1 rand ($0.0643), and all associated liabilities of the projects, including costs related to rehabilitation estimated at 415 million rand. As part of the transaction, Sibanye would also deliver 1.35 million ounces of platinum concentrate from Kroondal to Amplats' Rustenberg smelting operations.
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Adds details Jan 31 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J will sell a 50% interest in its Kroondal and Marikana operations in Rustenburg to the north-west of Johannesburg to Sibanye Stillwater SSWJ.J, the platinum group metals miners (PGM) said on Monday. Sibanye Stillwater would acquire the projects for a cash consideration of 1 rand ($0.0643), and all associated liabilities of the projects, including costs related to rehabilitation estimated at 415 million rand. Sibanye, however, says the transaction will extend Kroondal's life of mine to 2029 and save jobs.
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39cbe49d-77d3-4739-85d0-57812018bed1
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3821.0
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2022-01-29 00:00:00 UTC
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A Deep Dive Into the Video Game Industry
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AAL
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https://www.nasdaq.com/articles/a-deep-dive-into-the-video-game-industry
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Peloton's (NASDAQ: PTON) stock fell 25% on reports of halted production and potential layoffs. United (NASDAQ: UAL) and American Airlines (NASDAQ: AAL) express optimism about increased travel in the spring and summer. And for the second quarter in a row, Procter & Gamble (NYSE: PG) flexes its pricing power muscles. Motley Fool analysts Andy Cross and Ron Gross analyze those stories, talk about Amazon's new clothing store and Winnebago's new EV, and share two stocks on their radar: Restoration Hardware (NYSE: RH) and Intellia Therapeutics (NASDAQ: NTLA).
Motley Fool analyst Aaron Bush discusses the shifting landscape in the video game industry, the move to create ecosystems (instead of merely publishing games), and shares why he believes Roblox (NYSE: RBLX) could be one of the defining consumer companies of the 2020s.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Netflix
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Netflix wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
This video was recorded on Jan. 21, 2022.
Chris Hill: Netflix (NASDAQ: NFLX) takes a short-term hit as the streaming wars heat up. Our guest this week has a stock he believes could be one of the defining companies of the next decade. All that and a lot more coming up right now.
It's the Motley Fool Money radio show, I'm Chris Hill, joined by senior analysts, Andy Cross and Ron Gross. Good to see you as always gentlemen.
Andy Cross: Hi, Chris!
Ron Gross: How you doing Chris?
Chris Hill: We got the latest headlines from Wall Street. We've got a deep dive into the video game industry. As always, we've got a couple of stocks on our radar. But we begin with Netflix. Fourth quarter profits in revenue came in higher than expected for the streaming giant and they added more than eight million subscribers in the quarter, but that growth is a little bit lower than it was a year ago, and shares of Netflix fell more than 20 percent on Friday. Andy, a few things to get to here, including the fact that Wall Street freaked out over the fact that Netflix made a reference to computing streaming services in their shareholder letter.
Andy Cross: Chris, we've been talking about the competitive landscape with streaming for a while and clearly Netflix. Reed Hastings and Ted Sarandos, they're not idiots, they know the environment. What really got people, I think, essentially freaked out and it was a very drastic reaction I got to say was with the guidance Chris. The quarter was actually pretty good as you mentioned, they added almost 8.3 million new paid additions, that was a little bit lighter than the estimated 8.5 million. Revenue was up 16 percent global paid memberships, total global paid memberships at 221.8 million up almost nine percent, average revenue per member up seven percent. They said retention was strong, return was down, but on the margin we didn't quite grow the acquisitions as fast as we would've liked to, based on the large subscriber base. However, Chris it was the guidance for the first quarter of this year that really got people I think, spooked because like I said, that fourth-quarter not so bad, operating margin was actually a little bit better than what they expected to on the profit line, but it was that guidance Chris.
I'm looking at the guidance going forward and looking at the quarter estimating to add 2.5 million global paid additions for the quarter versus a 5.8 million ad for a forecast, it's below trend compared to 2018, 2019. Revenue for the quarter expected to be up around 10 percent versus 13 percent estimates. That's the weakest gross since 2012. Chris, when you added altogether, Netflix is really now I think not in this hypergrowth cycle. We've seen the COVID period wane its way through a little bit as they talked about on the call and we're starting to seek Netflix now in a different environment. That has really gotten the markets a little bit concerned with what that might mean for the full year subscription memberships, revenue growth, and then ultimately, the profit picture. At least they expect to be cash-flow positive, which is a good sign, but clearly not nearly as much growth as a senior the last couple of years.
Ron Gross: A lot to unpack here. A lot of this boils down to not just with Netflix, but a lot of the streaming services, price and content. One reason I never really got behind Netflix was because I'd never thought they'd be able to work out the cost of content. I'm not even sure they have yet, but certainly the stock is up a trillion percent since I passed on it, it shows you what I know. But you got to be careful here when you assume you have pricing power and you act on that. Netflix, just raise prices last week, they bumped their standard plan to 1399 per month from 1399-1549. That makes their standard plan more expensive than HBO Max. You got to be careful here because there's a lot of folks, whether it's Disney Plus, Apple TV, Paramount, Peacock, we can keep on going down the list. At some point people say the content's not worth it to me. Netflix does have the content's still, it's still in high-end demand. Six of the top most searched globally, we're on Netflix in 2021, Squid Game among them, I don't think I've seen any of the top 10 most search shows. Again, take what I say with a grain of salt, but the content is good there, but you got to be careful on the pricing side.
Chris Hill: Andy, with respect to the pricing, it really seemed for consumers there are two tiers now. You've got HBO Max and Netflix around $15 a month. You've got Apple, Peacock, Disney Plus they're all single digits, less than $10 a month.
Andy Cross: Let's not forget this is Netflix's game, Squid Game, game, get it how I did here, guys. This is all Netflix does. Amazon Prime, Disney Plus even HBO Max. They have multiple [laughs] layers to their businesses. This is all Netflix does, and it's one reason why I think they've been able to spend that amount of capital on their acquisition, acquiring content and so much on content including now gaming Chris, they started their gaming little tiny gaming platform in November. If you think about Squid Game 1.65 billion hours within the first four weeks, Bridgerton 625 million hours, which are 484 million hours, Red Notice, 363 million hours. As Ron mentioned, they have the content, I think they've been very effective with it. I think they do have that little pricing power. Chris, you do mention like it is Netflix and HBO Max are there and it is remains to be seen whether members and subscribers will continue to pay up for it, but at least a churn number continues to be very impressive and I think that's a very good sticking point for investor to lock onto as they think about what the growth prospects and importantly, what the profit and cash flow prospects for Netflix looked like over the next year or so.
Ron Gross: I think it's also interesting to note that a lot of Netflix's growth seems to be now concentrated overseas in Asia and Europe, with America and Canada being somewhat more of a mature market. But coming up on the outside is Disney, which has recently formed a new international content group to expand its pipeline of content across international markets. They're looking at double the number of countries where Disney Plus is available by fiscal 2023, they've already invested in creation of content in 340 titles already in various stages of development. As we started this conversation, the competition is going to be a big part of Netflix's future.
Andy Cross: In that line that they had in the release in the call, while this added competition may be affecting our marginal growth sum, we continue to grow in every country and region in which these new streaming alternatives have launched. Now, Ron, to your point, there's global competition, 90 percent of the new additions come from outside the US and Canada for Netflix and that marginal growth, Chris, I think is what many of us are locking onto because that could be the difference really on the profit curve and the expectation. But also this is a big analysts game. Like this was a big miss from them. Lots of conversations about how they miss this much and when you look at the history of Netflix yes, in various points, they have missed along their estimates this amount on the past year or so been very volatile with all the COVID announcements, but over time they can consistently grow and return and provide that content and the experience and that experience is very valuable for the members. I think it's a winning strategy from Netflix going forward.
Chris Hill: Microsoft is making its biggest acquisition ever, buying Activision Blizzard for just under $70 billion in cash. Assuming regulators don't derail the deal, it is expected to close next year and signals Ron, among other things, Microsoft's ambitions, both for gaming and the metaverse.
Ron Gross: For sure now, I will fully admit that I didn't get the 2016 LinkedIn acquisition, I'm not even sure I still get it, I get. This one I think makes good sense, $69 billion all-cash deal Activision had been done about 40 percent from its 52-week high as it dealt with sexual harassment and misconduct allegations, Microsoft clearly taking advantage of that price weakness to, as you said, make its largest acquisition ever. CEO Bobby Kotick, who has been under pressure to resign, will remain CEO for the time being, but I wouldn't be surprised if that didn't last much longer after the deal closes. Activision as a company, will report to Microsoft Xbox head Phil Spencer. Interestingly, shares are trading well below the 95 dollar acquisition price due to, as you mentioned, antitrust concerns. I do predict this deal will ultimately go through though. Interesting to note, Microsoft's current fortunes, I say current, over the last several years have really been tied to its B2B businesses, it's business to business, business. Specifically its transformation under statute in the Della into a Cloud company.
But it's also made investments in its consumer Xbox gaming business, which is a smaller business as when you look at the whole of their revenue, they bought Minecraft maker in 2014. The maker of Minecraft, they bought the parent company of Doom and Fallout in 2021. This acquisition will be a big help to Microsoft's plan to turn its Game Pass subscription service into what they're going to call the Netflix of gaming, or what analysts are calling the Netflix of gaming. Once the acquisition closes, Microsoft said it will be the third largest game company by sales with 30 games studios. It'll include powerhouse franchises like Call of Duty, World of Warcraft, and my, I guess favorite, Candy Crush. I never understood that one either to be honest. But listen, you want to talk about the big battles, big competition out there, this acquisition is also a shot across the bow to Facebook as the metaverse, which is currently focused largely on gaming, at least right now, that really will start to take shape. This is an interesting move from that perspective. Shares of Sony also weak as the acquisition is seen as the potential threat to its PlayStation business. Lastly I'll say, 15 percent upside to the acquisition price, with the main risk being the justice department kills the deal. I personally would take those odds, 15 percent upside looks good to me.
Chris Hill: Andy, I don't think Ron was alone in 2016, scratching his head on Microsoft buying LinkedIn for 26 billion, but Nadella and his team made that work and that business is thriving underneath Microsoft. You have to like the prospects for Microsoft's gaming division over the next 5-10 years.
Andy Cross: Well, I think what's really interesting is because gaming is becoming full on Cloud. It's really pushing to the Cloud. Ron kicked it off and teed it up very well with Satya Nadella's and his team's move to the Cloud and the importance of the Cloud. Even LinkedIn, that acquisition, that is very Cloud-based when you just think about distributed intelligence across various different data points that they have and collecting more and more data. I think the Cloud initiative, this does really tie into that. Yes, there certainly will be antitrust concerns and they're going to maybe have as much up to 15 percent of the total market as Ron alluded to and talked about. When you look at Microsoft's Xbox, the Game Pass subscription service, tie them together. The Cloud push, I think this continues to strengthen Microsoft's goal to really be distributed leader in Cloud computing in lots of different ways beyond just B2B.
Chris Hill: On Thursday, shares of Peloton fell 25 percent on reports. The company was halting production of its bikes and treadmills due to lack of demand. The stock regained some of that loss on Friday after Peloton CEO John Foley said the company is looking to right size production levels and consider layoffs. Ron, you have to think that between the prospect of layoffs and the way the stock has fallen over the past six months. Morale at Peloton has got to be low.
Ron Gross: Absolutely. This started as a leaked memo. Supposedly they have found out who the leaker is and they're taking action there, but the company was forced to come out and address what we're really rumors up until they came out to talk about the second quarter and the business in general. Listen, the business pulled forward so much demand as a result of the pandemic. It's a miss from their perspective on how much that was going to decline once the pandemic started to fade. Yes, I do believe that a lot of the information released in the memo is likely to happen. They're going to temporarily halt production, both the bikes and the treadmill. They do probably have thousands of cycles and treadmill sitting in warehouses because the demand just isn't there. Second quarter results, they were able to reiterate some guidance to, I think, calm the markets down, that's why I think we see a little bit of rebound. But they said they don't expect to be EBITDA positive until fiscal 2023. I think layoffs are on the table, Peloton's working with McKinsey & Company to look for opportunities to cut costs. Again, those could include layoffs, store closures, and some pulling back. Price is a big aspect here, those bikes are pretty expensive. The subscription monthly cost is pretty expensive, so Peloton has some work to do to right size this business.
Chris Hill: After the break, we've got the latest on airlines, consumer goods and more. Stay right here, you're listening to Motley Fool Money.
Welcome back to Motley Fool Money. Chris Hill here with Andy Cross and Ron Gross. Two major airlines out with fourth quarter results this week. American and United Airlines both wrapping up their fiscal years with a loss and shares are both down this week. Though, Andy, United's CEO Scott Kirby says he is optimistic about the spring and summer. I know airlines historically have not been the greatest investments, but when you think about how they tie into so many different industries like travel, hotels, restaurants, I really hope Kirby's right.
Andy Cross: Both United and American are fairly optimistic about what they're seeing. They're starting to see their capacity, of course, continues to not be where it is. For United specifically, capacity was down 23 percent versus the fourth quarter of 2019. They compare against 2019 because 2020 was all wacky with COVID. Operating revenues down 25 percent, available seat miles down three percent, so a little bit better. Costs continue to increase, that was up 11 percent on the seat mile basis versus 2019. Cargo for both companies continues to be a big driver and a big win. The cargo for United is now 10 percent of the revenues up from three percent in 2019, so very impressive. But like you said, the bookings and cancellation, Kirby said, starting to return back to normal. These demands still not so great, but improving. They expect capacity to be down only 16-18 percent, operating revenue to be down in only 20-25 percent in the first quarter. Available seat miles to be attractive too, so they expect to end 2022 with the available seat miles minus the fuel cost to be about at the run rate of 2019. You are seeing this optimism from United Airlines, you're seeing that the new CEO at American Airlines, Robert Isom is coming in, stepping over, taking over in March from Doug Parker. That's the largest airline they have in the world. Their cargo revenues were attractive as well, now 30 percent higher than their previous quarterly record. Capacity was down only 13 percent. Leisure travel is approaching 100 percent recovery. Both these companies are starting to see the winds of the COVID challenges starting to dissipate and they're starting to see that travel come back. Business travel continuously be the one that's still uncertain, but there's some glimmer of hopes in the forecast here.
Chris Hill: Shares of Procter & Gamble up this week after second quarter profits and revenue came in higher than expected. More noteworthy than the result is the fact that for the second quarter in the row, P&G is raising prices across a range of items from personal healthcare products to Tide detergent. Ron, we talk about pricing power. Look, this is a Staples company. You don't automatically assume they have it, but they're flexing it.
Ron Gross: Yeah, you nailed it Chris. That's the story here. The stocks trading basically at its all time high, strong business and pricing power, allowing it to deal with the higher costs across the board that have really been taking a whack at margins and will continue to, but at least their ability to raise prices mitigates that. For the quarter, sales up six percent driven by a three percent increase in shipment volumes, but three percentage points increase due to pricing. Again, that helped offset commodity and freight increases. CEO said the company has announced price increases in all of its product categories effective February 28th. The company will increase prices on the balance of its fabric care portfolio including Tide, Gain, Downy, Bounce, all your favorites. Again, they have the ability to raise prices. It'll remain to be seen if people turned to alternatives once those pricing hikes kick in, but I have a feeling they're going to make it through this. For the quarter, their healthcare segment was the strongest with an eight percent sales increase, beauty came in the weakest with a two percent increase. They've raised their revenue outlook for fiscal '22, but they only confirmed their earnings guidance of a 3-6 percent increase. That's because the guidance included 2.8 billion of after-tax headwinds due to these higher costs. But the company is doing what they need to do and it remains a strong consumer goods company.
Chris Hill: All right guys, we'll see you a little bit later in the show. Up next, Aaron Bush weighs in on the ripple effects in the video game industry after Microsoft's big deal, as well as a couple of smaller companies investors should keep their eyes on. Stay right here, this is Motley Fool Money.
Welcome back to Motley Fool Money. I'm Chris Hill. Joining me is Aaron Bush, advisor here at the Motley Fool. Thanks for being here.
Aaron Bush: Thanks for having me, Chris.
Chris Hill: I don't know anyone who studies the video game industry like you do. Earlier in the show, we had talked about Microsoft buying Activision Blizzard. What does this do to the industry landscape? There's been talk this week of smaller players in the industry, independent game creators. If you're one of them, are you excited by the growth prospects for the entire industry? Are you terrified by the behemoth that is Microsoft, or is it something in-between?
Aaron Bush: Yeah. You're definitely thinking hard about what it means for yourself. But let's zoom out for a moment really quickly. 2022 is really destined to accelerate the video game industry's consolidation that we saw pick up and break records last year. A couple of weeks ago, Take-Two acquired Zynga for about $12 billion. That was the largest video game acquisition ever. Microsoft announcing the acquisition of Activision Blizzard for about $70 billion just immediately shatters that record and hyper accelerates consolidation. There are a couple big picture reasons why that acceleration of consolidation is happening, that points toward how deals like this one are changing the industry landscape and are making, all of the companies figure out their place and its future. First, at a high level, we're seeing the increasing dominance of ecosystems. Basically, instead of game publishers like Activision or EA being the top dogs like they were over the past couple of decades, the big players going forward really are those who own multiple pieces of the value chain in one place.
They are owning, the hardware, the storefronts, the developer tools, the Cloud infrastructure, lots of content, etc. When it comes to Activision and Microsoft, Activision is really helping Xbox bolster a key component of its broader ecosystem that's going to be harder for others to compete against unless they also bolster theirs. The second, bigger and more centralized ecosystems lead to the emergence of new business models, namely subscriptions. Like we've seen in video, where there's a flywheel between investing in content and scaling subscribers, I think, we're going to see a similar trend happen in gaming. When a company like Xbox with its Game Pass subscription or PlayStation is able to bring votes of IP under a single subscription or even a couple tiers of subscriptions, it immediately becomes more competitive, and that competition really drives even more heightened consolidation. This is something that the big platforms can do much more successfully than independent publishers, which have much smaller libraries.
Between emerging multipronged ecosystems and shifting business models that lend themselves to consolidation, a deal like Microsoft buying Activision makes sense. It's a pretty huge deal for the industry. I really think it's a shot heard round the world that these ecosystems are stepping up in a huge way, and that consolidation is going to accelerate. If I'm an independent creator or relatively a small business, I'm not necessarily scared. There's still many ways to win, many ways to sell games. But at minimum, I'd be figuring out how to better interface with these increasingly giant ecosystems, and perhaps, even be thinking about how my business, would get consolidated into a larger player as well. We almost definitely won't see a deal surpass this one. This one was massive, and very few gaming companies are even this big. But we definitely will see increased consolidation in the console PC realm, but also, in mobile tale.
Chris Hill: If it's a shot heard round the world in video gaming, it's also seen as Microsoft increasing their shot at owning a corner of the metaverse, for lack of a better term. How soon do you see gaming fitting into the metaverse? I think, anyone who really thinks about it, there are obvious applications there. Is that going to be the first significant business industry within the metaverse?
Aaron Bush: Well, I think the metaverse is still very much a buzzword, that if you put someone like Mark Zuckerberg and Satya Nadella in the same room, they're probably not going to agree on what it means or what it's supposed to be. I think we have to keep that in mind. But really, when I think about the metaverse, it really is about an evolution of a more immersive Internet, and based on that oversimplified definition, gaming has been that for a long time. As it's grown and become more complex and more users are participating in these worlds, it certainly fits the bill in being a component of what the metaverse will entail. Gaming is not the metaverse, but I think it's going to be a subsection of it. When it comes to where a lot of the innovation is going to be, improving technology, testing new business models, I do think that gaming is going to be a place where that happens. Whether or not Microsoft and Xbox are really going to be pioneers for what the future of the so-called metaverse is going to be, that's really to be seen. I think it's just going to be something that the entire world, all of these companies together, push forward together. It's not going to be owned by a single company or a handful of companies but, it certainly is an exciting trend.
Chris Hill: Let's move away from Microsoft for a minute. What business in the gaming industry that particularly excites you at the moment, and why?
Aaron Bush: Yeah, so I am regularly impressed with Roblox, particularly, RBLX, which is a user-generated content platform that has scaled tremendously over the past couple of years. I think that Roblox could be one of the defining consumer companies of the 2020s. Roblox has really taken off with kids, first and foremost. But I'm incredibly impressed with how the company has maintained its top dog status. How we've seen tremendous growth in developer interests on the platform, how it's been working to age up the platform and expand around the world, how it's been involving big brands, and how it's heavily reinvesting to improve its platform. There are other UGC platforms out there, other virtual worlds out there. But I think that people underestimate how much of a lead Roblox has. Roblox's scale, allows it to reinvest in both creators and R&D, in a way that other smaller contenders simply can't match. As these reinvestments build, I think, that the lead over others is also going to compound. I'm really excited to see where a company like Roblox is 5-10 years from now. I imagine it's going to be both much more important as a platform, and its effect on culture in the world, than it is today. If it can pull that off, it's almost definitely going to be a much larger business tale.
Chris Hill: Last thing and then I'll let you go. This can be a CEO, this could be a game developer, a trend, a company. What is something in the industry right now that you think is not really getting as much attention as it probably deserves? As you indicated, you look at the deals earlier this month, that's taking up a lot of the oxygen. What's something that should be getting more attention?
Aaron Bush: I have my eye on the emergence of blockchain games. At their core, these games are pioneering a movement, where players actually own the assets in the game that they play with. Sometimes these games have a native cryptocurrency or two that facilitates a more open in-game economy than traditional games do. For example, you could play a card game, where you actually own and can, therefore, trade the cards in your collection, for essentially real money. Or you could play a big open-world game where your characters, armor and weapons, maybe even the character itself, is yours. If you put 100 hours into a game and win a lot, you might be able to actually benefit financially from playing. There's a lot of skepticism around this trend, I'll admit, especially around how to make games that are both fun and financialized. Most games do not need blockchains at all. But I also see pretty tremendous experimentation, game design innovation and a massive flow of talent and capital to these new studios. I think it's going to take a couple of years to really get going. But in the same way that mobile gaming brought a whole new group of players and revenue streams to the gaming industry over the past decade, and it was a tremendous source of growth for the industry, I suspect that this movement will have a similar effect in the next decade. I think that blockchain games, more than any other segment of the gaming industry, are going to push the boundaries of the ecosystem in the coming few years. This isn't really a stock market play, but a lot of these assets are still going to be traded publicly, and many already are. I think, it'll be at minimum a fun movement to watch, but potentially also, be a lucrative one.
Chris Hill: Aaron Bush, always great talking to you. Thanks for being here.
Aaron Bush: Thanks for having me.
Chris Hill: Coming up after the break, Andy Cross and Ron Gross return with a couple of stocks on their radar. Stay right here. You're listening to Motley Fool Money.
As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. Welcome back to Motley Fool Money, Chris Hill here, once again with Andy Cross and Ron Gross. Our new email address is podcasts@fool.com. Drop us a note if you have questions or feedback on the show, as I have said in the past, if there's something we could be doing better, please tell us. But if you like the show, please tell others, [laughs] tell a friend, post a review on your favorite podcast app. If you like the show, please spread the word and help us out, we appreciate that. Couple of stories before we get to read our stocks guys. Amazon announced it is opening its first ever bricks-and-mortar clothing store later this year, named Amazon Style. The store will be located in the greater Los Angeles area and offer fashion brands that the company says customers are familiar with. Andy, you bullish on this idea.
Andy Cross: I actually am Chris, I think it's really interesting. Ron, this is basically the metaverse in-person here for your shopping experience, you can use the app to scan a QR code to select clothing that is displayed. Again, it's all through the Amazon app. Right there they have you in there. A sales associate will then bring them to your dressing room or robots will bring them probably if not now, maybe sometime in the very near future. What's pretty cool is that inside the private dressing rooms there's a bunch of them from what I can tell. The Amazon provides these customized suggestions for you, tailored to what they know about you, tailored to where your shopping experience is right there, in a touchscreen, you can select, you can read, you can say I want this, I don't want this, I like this, I don't like this. They have it all there. Really it's bringing the physical and the virtual together in a shopping experience. Amazon Style is built around personalization, what they say are machine learning algorithms, produced tailored real-time recommendations for each customer as they shop. Pretty interesting how Amazon is really infusing their Cloud experiences, their distribution, their consumer app, and the shopping experience that many of us are looking for.
Ron Gross: I chuckled at first, but then when I dug in a little bit, I was like, that's neat. One thing I was unclear, it appears to me you don't actually leave with the clothes, you order them online once you decide what you want. If I'm right about that, that's a little weird to me.
Andy Cross: I think it's both. I think you can do both from what I can tell. What I like about it is it makes those dressing rooms that are bland and stale and very lonely, if not intimidating. It actually makes them engaging and fun.
Chris Hill: If any of our listeners in the Southern California area want to do a little boots-on-the-ground research later this year, drop us a note, let us know how that goes. This week at the RV SuperShow in Florida Winnebago unveiled its electric RV camper. Not only does it provide power to run appliances inside the vehicle, but the battery also enables the vehicle to travel a range of up to, wait for it, 125 miles. Ron, I applaud the efforts here, but I think if you're driving the highways and byways of America, aren't you looking to put more than 125 miles in a given day?
Ron Gross: Clearly, yes. I think this ERV right now it's merely a concept, and Winnebago says that, as battery technology evolves, there's a potential for additional range. I would certainly hope so, because I don't think a 125 miles is getting anyone too excited. If you look at it, it looks like a large minivan to me, not really an RV, but I'm not an RV expert. But it has a bed, a kitchenette, and a wet bath with a shower, which I didn't know gave me the scabies a little bit. But I guess [laughs] if it was bigger, maybe it wouldn't freak me out that much. It could charge in 45 minutes, supposedly, using high-speed public charging. This is the infancy, I think, of ERVs and we'll see how they evolve.
Andy Cross: Look, at least if you're stuck out in the woods someplace, when your battery dies, at least you have the amenities to take care of yourself for a couple of days in the RV.
Chris Hill: On that note, do you guys think that charging stations are going to start to be a new amenity that hotels, Airbnb's, etc. start to push from a marketing standpoint, as more people are going electric with their vehicles. That hotels and motels are saying, "Hey, we've got charging stations". It's come in handy, particularly if my Winnebago EV is only going to get me a 120 miles.
Andy Cross: Pilot J2. All those along the highway it's going to be critical, sorry Ron.
Ron Gross: I do think you'll start seeing hotels, for example, start adding that as amenities, but they're not going take the hit to margins, nothing is for free. You're going to see a slight uptake in the cost of your room, and that will include the ability to charge your car.
Chris Hill: Hey, your Tesla might be nice and stylish and sleek and all that. It doesn't have a bed in it. [laughs] Your Tesla doesn't have a kitchenette in it, does it?
Andy Cross: Not yet.
Chris Hill: If you're just starting out investing or you know someone who's looking to get started, we have a free investing starter kit. It covers everything from how to set up a brokerage account, to 401k, to buying your first stock and it includes 15 stocks and five ETFs that are selected by our investing team, and it's free. Just go to fool.com/starterkit. Let's go to our man behind the glass, Dan Boyd. He's going hit you with a question on your radar stock. Andy Cross, you're up first us this week. What are you looking at?
Andy Cross: I was looking at symbol RH, is the former Restoration Hardware store founded in 1979, provides high-end luxury housewares, operates 68 galleries, 14 waterworks stores across the US and sales online through RH.com and a few other different sites. Markup of 8.7 billion stock at $400, is at a 52-week low. Growth is very attractive, 19 percent last quarter to really redesign itself over the years. CEO Gary Friedman is a former COO of William-Sonoma, is serving this massively large and very fragmented home furnishing businesses. Excellent operating margins north of 20 percent, growing 15-20 percent per year, buys back a lot of stock at various points, EPS of around $22. That can probably grow, I think 15 percent a year or so. Stocks not very expensive at about 15 times for a pretty high-quality business Dan.
Chris Hill: Dan question about RH.
Dan Boyd: How big can the market for our age actually be, Andy? I'm a homeowner. Every time I look in their catalog, I look at those prices and I laugh out loud, [laughs] so high.
Andy Cross: By the way, those catalogs are massively thick, aren't they? Yes, it's a very large market especially when you think about the housing market and the evolving home market that were seeing in the US. It's a pretty large market and people are looking for different expressions to showcase their furniture and RH is serving it Dan.
Chris Hill: Ron Gross, what are you looking at?
Ron Gross: I'm going to start the year off by circling back to the gene therapy space I talk about from time to time on the show. These stocks have been absolutely crushed alongside other innovative tech stocks that are, let us call pre-profitability. Today I'm going to focus on Intellia, NTLA down 56 percent from it's 52-week high. I could easily talk about edit toss of 70 percent, CRISPR Therapeutics off 65 percent and many others. First off, I think I should know, I don't think these stocks should have really ever achieved those highs. The stocks got ahead of the actual progress of the companies. Based on an understandable excitement from investors that gene therapy could potentially change the face of medicine. But that world altering change isn't going to happen tomorrow. We honestly don't even know if the CRISPR-Cas9 technology is going to be the silver bullets, so buyer beware. But back to NTLA, made history last summer when it became the first biotech company to successfully edit DNA inside the human body. They've got a strong balance sheet, 1.1 billion in cash, that's essential for an early stage biotech company that is not profitable. Again, these investments, not for those that are risk averse, buy a bundle, buy any ETF, diversify your risk.
Chris Hill: Dan, question about Intellia?
Dan Boyd: Maybe not about Intellia, but I just want to congratulate all spin Dr. Ron over here in coining the phrase pre-profitable. But Ron, you're not fooling me. I know what pre-profitable means. I know it means not profitable.
Ron Gross: Not profitable, yeah. Some of these companies are actually profitable if you look at their income statement because they receive big milestone payments from partners, for example, Intellia has Regeneron as a partner, CRISPR has Vertex. But that's not real profitability, that's sustainable in my opinion. As analysts, we've got to be honest there.
Andy Cross: For profit, Dan, you got to go to homework.
Chris Hill: What do you want to add to your watch list Dan?
Dan Boyd: I think I'm going to RH Chris, the appeal of a $7,000 couch just won't go away. [laughs].
Chris Hill: Andy Cross, Ron Gross, guys, thanks for being here!
Andy Cross: Thanks, Chris!
Ron Gross: Thanks, Chris!
Chris Hill: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Dan Boyd. I'm Chris Hill, we'll see you next week!
Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Andy Cross owns Activision Blizzard, Microsoft, Netflix, and Roblox Corporation. Chris Hill owns Activision Blizzard, Amazon, Apple, Microsoft, Walt Disney, and Zynga. Ron Gross owns Amazon, Apple, CRISPR Therapeutics, Intellia Therapeutics, Microsoft, and Walt Disney. The Motley Fool owns and recommends Activision Blizzard, Amazon, Apple, CRISPR Therapeutics, Microsoft, Netflix, Peloton Interactive, RH, Roblox Corporation, Take-Two Interactive, Vertex Pharmaceuticals, Walt Disney, and Zynga. The Motley Fool recommends Electronic Arts and recommends the following options: long January 2023 $115 calls on Take-Two Interactive, long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United (NASDAQ: UAL) and American Airlines (NASDAQ: AAL) express optimism about increased travel in the spring and summer. Motley Fool analysts Andy Cross and Ron Gross analyze those stories, talk about Amazon's new clothing store and Winnebago's new EV, and share two stocks on their radar: Restoration Hardware (NYSE: RH) and Intellia Therapeutics (NASDAQ: NTLA). Now, Ron, to your point, there's global competition, 90 percent of the new additions come from outside the US and Canada for Netflix and that marginal growth, Chris, I think is what many of us are locking onto because that could be the difference really on the profit curve and the expectation.
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United (NASDAQ: UAL) and American Airlines (NASDAQ: AAL) express optimism about increased travel in the spring and summer. Motley Fool analysts Andy Cross and Ron Gross analyze those stories, talk about Amazon's new clothing store and Winnebago's new EV, and share two stocks on their radar: Restoration Hardware (NYSE: RH) and Intellia Therapeutics (NASDAQ: NTLA). The Motley Fool owns and recommends Activision Blizzard, Amazon, Apple, CRISPR Therapeutics, Microsoft, Netflix, Peloton Interactive, RH, Roblox Corporation, Take-Two Interactive, Vertex Pharmaceuticals, Walt Disney, and Zynga.
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United (NASDAQ: UAL) and American Airlines (NASDAQ: AAL) express optimism about increased travel in the spring and summer. This is all Netflix does, and it's one reason why I think they've been able to spend that amount of capital on their acquisition, acquiring content and so much on content including now gaming Chris, they started their gaming little tiny gaming platform in November. This acquisition will be a big help to Microsoft's plan to turn its Game Pass subscription service into what they're going to call the Netflix of gaming, or what analysts are calling the Netflix of gaming.
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United (NASDAQ: UAL) and American Airlines (NASDAQ: AAL) express optimism about increased travel in the spring and summer. This acquisition will be a big help to Microsoft's plan to turn its Game Pass subscription service into what they're going to call the Netflix of gaming, or what analysts are calling the Netflix of gaming. Chris Hill here with Andy Cross and Ron Gross.
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fe4e77f2-5e1f-4326-a50e-cd83c6b06ed9
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3822.0
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2022-01-28 00:00:00 UTC
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Aeromexico reorganization plan confirmed after creditor deal
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AAL
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https://www.nasdaq.com/articles/aeromexico-reorganization-plan-confirmed-after-creditor-deal-0
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By Maria Chutchian
NEW YORK, Jan 28 (Reuters) - Aeromexico AEROMEX.MX on Friday won court approval of its restructuring plan after the airline struck a deal with the remaining holdouts among its creditors, clearing the way for it to emerge from bankruptcy with new controlling shareholders.
"I could not be more pleased to tell you the plan of reorganization is confirmed," U.S. Bankruptcy Judge Shelley Chapman said soon after the agreement to pay a settlement to the creditors was announced during a court hearing.
Her approval of the plan allows Aeromexico, one of three major Latin American airlines to seek court protection from creditors during the pandemic, to complete the bankruptcy process, which has been ongoing since June 2020.
Aeromexico shares were up 17% on Friday, although those gains did not appear to reflect the creditor deal and final approval, which came as the market was about to close.
The plan provides for new infusions of capital into Aeromexico. Apollo Global Management APO.N, a frequent investor in distressed companies, will be the largest shareholder. Delta Air Lines Inc DAL.N, an existing equity holder, is expected to have a 20% stake in the company once the plan is implemented.
The deals struck on Friday brought in support from a group of junior creditors who had opposed what they argued was overly beneficial treatment for Delta and four Mexican individual investors.
To resolve remaining issues with its most vocal plan opponent, Invictus Global Management, Aeromexico agreed to pay $1.1 million in cash. The airline also said it would provide a group of junior creditors $800,000 to cover legal fees.
Timothy Graulich of Davis Polk & Wardwell, who represents Aeromexico, said during Friday's hearing before Chapman that the company was "truly grateful" for the successful outcome.
"When we filed, we were literally almost out of money," he said.
The settlement came a day after Aeromexico announced another deal with the official committee representing unsecured creditors in the bankruptcy.
(Reporting by Maria Chutchian; Editing by Christian Plumb and Mark Porter)
((Valentine.Hilaire@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Maria Chutchian NEW YORK, Jan 28 (Reuters) - Aeromexico AEROMEX.MX on Friday won court approval of its restructuring plan after the airline struck a deal with the remaining holdouts among its creditors, clearing the way for it to emerge from bankruptcy with new controlling shareholders. Her approval of the plan allows Aeromexico, one of three major Latin American airlines to seek court protection from creditors during the pandemic, to complete the bankruptcy process, which has been ongoing since June 2020. The deals struck on Friday brought in support from a group of junior creditors who had opposed what they argued was overly beneficial treatment for Delta and four Mexican individual investors.
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By Maria Chutchian NEW YORK, Jan 28 (Reuters) - Aeromexico AEROMEX.MX on Friday won court approval of its restructuring plan after the airline struck a deal with the remaining holdouts among its creditors, clearing the way for it to emerge from bankruptcy with new controlling shareholders. "I could not be more pleased to tell you the plan of reorganization is confirmed," U.S. Bankruptcy Judge Shelley Chapman said soon after the agreement to pay a settlement to the creditors was announced during a court hearing. Timothy Graulich of Davis Polk & Wardwell, who represents Aeromexico, said during Friday's hearing before Chapman that the company was "truly grateful" for the successful outcome.
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By Maria Chutchian NEW YORK, Jan 28 (Reuters) - Aeromexico AEROMEX.MX on Friday won court approval of its restructuring plan after the airline struck a deal with the remaining holdouts among its creditors, clearing the way for it to emerge from bankruptcy with new controlling shareholders. "I could not be more pleased to tell you the plan of reorganization is confirmed," U.S. Bankruptcy Judge Shelley Chapman said soon after the agreement to pay a settlement to the creditors was announced during a court hearing. Her approval of the plan allows Aeromexico, one of three major Latin American airlines to seek court protection from creditors during the pandemic, to complete the bankruptcy process, which has been ongoing since June 2020.
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By Maria Chutchian NEW YORK, Jan 28 (Reuters) - Aeromexico AEROMEX.MX on Friday won court approval of its restructuring plan after the airline struck a deal with the remaining holdouts among its creditors, clearing the way for it to emerge from bankruptcy with new controlling shareholders. "I could not be more pleased to tell you the plan of reorganization is confirmed," U.S. Bankruptcy Judge Shelley Chapman said soon after the agreement to pay a settlement to the creditors was announced during a court hearing. The plan provides for new infusions of capital into Aeromexico.
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8ff160c1-fc54-4474-b459-11fdb1af351c
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3823.0
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2022-01-28 00:00:00 UTC
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Airlines cancel flights ahead of Nor'easter storm
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AAL
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https://www.nasdaq.com/articles/airlines-cancel-flights-ahead-of-noreaster-storm
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CHICAGO, Jan 28 (Reuters) - U.S. carriers on Friday canceled hundreds of flights and warned of operational disruptions this weekend because of a winter storm that is forecast to bring high winds and heavy snow across the Northeast and Mid-Atlantic regions.
The National Weather Service said in an advisory that the Nor'easter storm would result in blizzard-like conditions and make travel "nearly impossible."
American Airlines AAL.O said it expects the storm to have a "significant" impact on its Northeast operations, especially at Boston Logan International Airport. The Texas-based carrier has thus far canceled 50 flights in order to avoid last-minute disruptions at the airport. It is allowing impacted passengers to rebook flights without change fees.
New York-based JetBlue JBLU.O said it has canceled about 500 flights through Sunday. United Airlines UAL.O has canceled 10% of its Saturday flights. And Delta Air Lines DAL.N also said they expect the storm to impact their weekend operations.
In all, more than 2,200 flights have been canceled for Saturday, according to flight-tracking service FlightAware.
Inclement winter weather has added to the challenges facing the airline industry, which is trying to recover from turbulence caused by the Omicron coronavirus variant. An increase in COVID-19 infections among employees has left carriers short staffed, forcing them to cancel flights.
Southwest Airlines Co LUV.N on Thursday said about 5,000 employees, or roughly 10% of its workforce, had contracted the virus in the first three weeks of January. The company has canceled more than 5,600 flights thus far this month, which is estimated to cost it $50 million in revenue.
(Reporting by Rajesh Kumar Singh; Editing by Mark Porter)
((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O said it expects the storm to have a "significant" impact on its Northeast operations, especially at Boston Logan International Airport. CHICAGO, Jan 28 (Reuters) - U.S. carriers on Friday canceled hundreds of flights and warned of operational disruptions this weekend because of a winter storm that is forecast to bring high winds and heavy snow across the Northeast and Mid-Atlantic regions. Inclement winter weather has added to the challenges facing the airline industry, which is trying to recover from turbulence caused by the Omicron coronavirus variant.
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American Airlines AAL.O said it expects the storm to have a "significant" impact on its Northeast operations, especially at Boston Logan International Airport. CHICAGO, Jan 28 (Reuters) - U.S. carriers on Friday canceled hundreds of flights and warned of operational disruptions this weekend because of a winter storm that is forecast to bring high winds and heavy snow across the Northeast and Mid-Atlantic regions. United Airlines UAL.O has canceled 10% of its Saturday flights.
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American Airlines AAL.O said it expects the storm to have a "significant" impact on its Northeast operations, especially at Boston Logan International Airport. CHICAGO, Jan 28 (Reuters) - U.S. carriers on Friday canceled hundreds of flights and warned of operational disruptions this weekend because of a winter storm that is forecast to bring high winds and heavy snow across the Northeast and Mid-Atlantic regions. The Texas-based carrier has thus far canceled 50 flights in order to avoid last-minute disruptions at the airport.
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American Airlines AAL.O said it expects the storm to have a "significant" impact on its Northeast operations, especially at Boston Logan International Airport. CHICAGO, Jan 28 (Reuters) - U.S. carriers on Friday canceled hundreds of flights and warned of operational disruptions this weekend because of a winter storm that is forecast to bring high winds and heavy snow across the Northeast and Mid-Atlantic regions. It is allowing impacted passengers to rebook flights without change fees.
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36ea1aba-5dbe-428f-9ee9-0b98125a6045
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3824.0
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2022-01-27 00:00:00 UTC
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AAL March 11th Options Begin Trading
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AAL
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https://www.nasdaq.com/articles/aal-march-11th-options-begin-trading
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the March 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 11th contracts and identified one put and one call contract of particular interest.
The put contract at the $15.00 strike price has a current bid of 80 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $15.00, but will also collect the premium, putting the cost basis of the shares at $14.20 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $15.77/share today.
Because the $15.00 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 65%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 5.33% return on the cash commitment, or 45.27% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $15.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $16.00 strike price has a current bid of $1.05. If an investor was to purchase shares of AAL stock at the current price level of $15.77/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $16.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.12% if the stock gets called away at the March 11th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $16.00 strike highlighted in red:
Considering the fact that the $16.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 51%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 6.66% boost of extra return to the investor, or 56.52% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 58%, while the implied volatility in the call contract example is 56%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $15.77) to be 46%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the March 11th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the March 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 11th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the March 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 11th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 11th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAL's trailing twelve month trading history, with the $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the March 11th expiration.
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3a104f82-4dd7-4527-9c93-c84d0229ea34
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3825.0
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2022-01-27 00:00:00 UTC
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Airline Stock Roundup: AAL, HA Post Q4 Loss, SAVE, GOL in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-aal-ha-post-q4-loss-save-gol-in-focus
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In the past week,American Airlines AAL and Hawaiian Holdings HA reported losses for fourth-quarter 2021. The same, however, narrowed year over year as the December-quarter results were better than the fourth-quarter 2020 earnings reports, despite the omicron-induced crisis.
On the non-earnings front, Gol Linhas Aereas Inteligentes GOL grabbed headlines for its deal with Castlelake to secure financing up to $600 million for buying 12 new Boeing 737 Max 8 jets. An expansion-related update from Spirit Airlines SAVE was also available over the past week.
Read the last Airline stock Roundup here.
Recap of the Latest Top Stories
1. American Airlines’ fourth-quarter 2021 loss (excluding 2 cents from non-recurring items) of $1.42 cents per share compared favorably with the Zacks Consensus Estimate of a loss of $1.51. Quarterly loss per share was also narrower than the year-ago loss of $3.86. Average fuel price per gallon (including related taxes) climbed to $2.36 from $1.27 a year ago. AAL, currently carrying a Zacks Rank #4 (Sell), expects system capacity for the March quarter to decline in the 8-10% range from the figure reported in first-quarter 2019. Total revenues in the first quarter of 2022 are anticipated to decline in the 20-22% band from the level recorded in first-quarter 2019. Fuel cost per gallon in first-quarter 2022 is expected in the $2.41-$2.46 band. Fuel gallon consumption is expected to be $934 million. CASM excluding fuel and special items is expected to increase in the 8-10% range in the first quarter of 2022 from the number reported in first-quarter 2019.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Hawaiian Holdings’ fourth-quarter 2021 loss (excluding 44 cents from non-recurring items) of $1.37 per share was narrower than the Zacks Consensus Estimate of a loss of $1.69. HA reported a loss of $3.71 in the year-ago quarter. Moreover, quarterly revenues of $494.7 million surged more than 100% year over year and beat the Zacks Consensus Estimate of $493.4 million. HA expects Capacity in first-quarter 2022 to decline 10-13% from the first-quarter 2019 levels. Total revenues are anticipated to plunge 31-35% from the first-quarter 2019 levels.
3. Gol Linhas’ deal with private equity firm Castlelake is aimed at modernizing its fleet. Also, the same is in line with its objective to reach carbon neutrality by 2050. The jets to be bought consume 15% less fuel, produce 16% fewer carbon emissions and 40% less noise apart from possessing a greater flight range than the NG aircraft. The deal will include 10 finance leases and two sale-leasebacks. The interest for the lease is approximately 6%.
4. To expand its operations, Spirit Airlines aims to launch three routes from the Salt Lake City International airport or SLC on May 26. This marks SAVE’s debut in the tourist-friendly state of Utah. The non-stop flights will operate on a daily basis and connect SLC with Las Vegas, Los Angeles and Orlando. Through the new flights, SAVE intends to meet the anticipated demand swell this spring. Evidently, SAVE is the first airline to announce operations into the newly-rebuilt airport (worth $4.5 billion), which was unveiled in 2020.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that almost all airline stocks have traded in the red over the past week. As a result, the NYSE ARCA Airline Index has decreased 4.2% to $78.92. Shares of Hawaiian Holdings have declined maximum as HA’s downbeat revenue guidance for the March quarter disappointed investors. Over the past six months, the NYSE ARCA Airline Index has depreciated 18.2%
What's Next in the Airline Space?
Fourth-quarter earnings reports from some more carriers are expected in the coming days.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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 Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL, currently carrying a Zacks Rank #4 (Sell), expects system capacity for the March quarter to decline in the 8-10% range from the figure reported in first-quarter 2019. In the past week,American Airlines AAL and Hawaiian Holdings HA reported losses for fourth-quarter 2021. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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In the past week,American Airlines AAL and Hawaiian Holdings HA reported losses for fourth-quarter 2021. AAL, currently carrying a Zacks Rank #4 (Sell), expects system capacity for the March quarter to decline in the 8-10% range from the figure reported in first-quarter 2019. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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In the past week,American Airlines AAL and Hawaiian Holdings HA reported losses for fourth-quarter 2021. AAL, currently carrying a Zacks Rank #4 (Sell), expects system capacity for the March quarter to decline in the 8-10% range from the figure reported in first-quarter 2019. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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In the past week,American Airlines AAL and Hawaiian Holdings HA reported losses for fourth-quarter 2021. AAL, currently carrying a Zacks Rank #4 (Sell), expects system capacity for the March quarter to decline in the 8-10% range from the figure reported in first-quarter 2019. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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cade19d9-3682-4ed3-8d9e-a2479f457c93
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3826.0
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2022-01-27 00:00:00 UTC
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Airline Stocks: What Has LUV, JBLU, UAL and AAL Heading Higher Today
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AAL
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https://www.nasdaq.com/articles/airline-stocks%3A-what-has-luv-jblu-ual-and-aal-heading-higher-today
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airline stocks are taking off on Thursday with recent news behind today’s rise in price for the shares!
Source: m.photo / Shutterstock.com
Earnings reports are the major news pushing airline stocks higher today. Several major players in the space released results for fourth quarter of 2021 and its pulling the sector higher today.
Let’s jump into that below!
Airline Stocks Soaring: Southwest Airlines (LUV)
Southwest Airlines (NYSE:LUV) stock is flying close to 1% higher with the release of its fourth-quarter earnings report for 2021. That comes after reporting adjusted earnings per share of 14 cents and revenue of $5.1 billion. Both of those are better than Wall Street’s estimates of 7 cents per share and revenue of $5.01 billion.
Airline Stocks Soaring: JetBlue Airways (JBLU)
JetBlue Airways (NASDAQ:JBLU) stock is also rising 3.5% this morning thanks to its Q4 2021 earnings report. This includes adjusted losses per share of 36 cents on revenue of $1.83 billion. These both come in above analysts’ estimates of -39 cents per share and revenue of $1.82 billion.
10 Stocks to Buy That Could Make You a Millionaire in 2022
Airline Stocks Soaring: United Airlines (UAL)
United Airlines (NASDAQ:UAL) stock is getting a 1.1% boost with the release of its earnings report for Q4 2021. That’s thanks to its adjusted per-share losses of $1.60 on revenue of $8.19 billion. These both come in above Wall Street’s estimates of -$386 per share and revenue of $7.48 billion.
Airline Stocks Soaring: American Airlines (AAL)
American Airlines (NASDAQ:AAL) shares are climbing slightly higher this morning despite releasing earnings results. Instead, the company is likely soaring alongside other airline stocks and their positive outlooks for the rest of the year.
Investors looking for more recentstock market newswill want to keep reading!
InvestorPlace has all the stock coverage that traders need to know about for Thursday. A few examples include updates on Nio (NYSE:NIO) and Lordstown Motors (NASDAQ:RIDE) shares, as well as this morning’s biggest pre-market stock movers. You can find all of that info at the following links!
More Thursday Stock Market News
Is NIO Stock a Buy? Here’s What 5 Analysts Think About Nio Price Predictions.
RIDE Stock Alert: 3 Reasons Investors Should Be Watching Lordstown Motors Now
Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Airline Stocks: What Has LUV, JBLU, UAL and AAL Heading Higher Today appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The post Airline Stocks: What Has LUV, JBLU, UAL and AAL Heading Higher Today appeared first on InvestorPlace. Airline Stocks Soaring: American Airlines (AAL) American Airlines (NASDAQ:AAL) shares are climbing slightly higher this morning despite releasing earnings results. Several major players in the space released results for fourth quarter of 2021 and its pulling the sector higher today.
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Airline Stocks Soaring: American Airlines (AAL) American Airlines (NASDAQ:AAL) shares are climbing slightly higher this morning despite releasing earnings results. The post Airline Stocks: What Has LUV, JBLU, UAL and AAL Heading Higher Today appeared first on InvestorPlace. Airline Stocks Soaring: Southwest Airlines (LUV) Southwest Airlines (NYSE:LUV) stock is flying close to 1% higher with the release of its fourth-quarter earnings report for 2021.
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Airline Stocks Soaring: American Airlines (AAL) American Airlines (NASDAQ:AAL) shares are climbing slightly higher this morning despite releasing earnings results. The post Airline Stocks: What Has LUV, JBLU, UAL and AAL Heading Higher Today appeared first on InvestorPlace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airline stocks are taking off on Thursday with recent news behind today’s rise in price for the shares!
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Airline Stocks Soaring: American Airlines (AAL) American Airlines (NASDAQ:AAL) shares are climbing slightly higher this morning despite releasing earnings results. The post Airline Stocks: What Has LUV, JBLU, UAL and AAL Heading Higher Today appeared first on InvestorPlace. Source: m.photo / Shutterstock.com Earnings reports are the major news pushing airline stocks higher today.
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3827.0
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2022-01-27 00:00:00 UTC
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Chilean Senate commission approves adjusted mining royalty bill
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AAL
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https://www.nasdaq.com/articles/chilean-senate-commission-approves-adjusted-mining-royalty-bill
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By Fabian Cambero
SANTIAGO, Jan 27 (Reuters) - Chile's Senate on Thursday pushed forward an amended version of the country's mining royalty bill, which would raise tariffs on firms operating in the world's top copper producing nation despite being watered down amid industry pushback.
The upper chamber's Mining Commission waved through the amended draft, which seeks to address concerns within the copper and lithium industries that higher tariffs will hit Chile's competitiveness and hurt new investment.
The commission approved the adjusted bill that proposes royalties based on two areas: first the value of gross copper sales and a second calculated according to profitability, similar to the current tax model for the industry.
The commission said the bill would see an 'ad valorem' tax corresponding to 1% of annual sales of copper products applied to firms producing under 200,000 metric tonnes of copper per year. Mines producing under 50,000 tonnes would be exempt.
"For companies that produce higher levels, the royalty will be applied depending on the average annual copper price registered according to the prices of the London Metal Exchange," the commission added.
Chile's mining industry has strongly opposed plans to raise taxes, arguing that the level is already at its limit. Lawmakers, especially from the leftist opposition, have pushed to increase taxes to bolster funds for social spending.
Leftist President-elect Gabriel Boric, 35, comes into office in March after his strong election victory last year. He does, however, face a divided Congress which is likely to temper any reform plans.
The modified bill includes a sales tax of some 3% for lithium, but excludes contracts signed with a development office in the Salar de Atacama, where the two main current lithium miners Albemarle ALB.N and SQM SQMA.SN operate.
The bill will now move to the Senate Treasury Committee and then will be reviewed in a plenary session of the chamber, to later return to the lower Chamber of Deputies.
"We hope that the Treasury Commission can quickly deal with this initiative and that before March 11 of this year we can send this project into law," said Senator Yasna Provoste, president of the parliamentary body.
The global price of copper has hit a decade high fueled by expectations about a recovery from the coronavirus pandemic.
In addition to state mining firm Codelco, the world's top copper producer, multinationals such as BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L, Antofagasta Minerals ANTO.L and Freeport FCX.N operate in Chile.
(Reporting by Fabian Cambero; Editing by Adam Jourdan and Paul Simao)
((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition to state mining firm Codelco, the world's top copper producer, multinationals such as BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L, Antofagasta Minerals ANTO.L and Freeport FCX.N operate in Chile. By Fabian Cambero SANTIAGO, Jan 27 (Reuters) - Chile's Senate on Thursday pushed forward an amended version of the country's mining royalty bill, which would raise tariffs on firms operating in the world's top copper producing nation despite being watered down amid industry pushback. The upper chamber's Mining Commission waved through the amended draft, which seeks to address concerns within the copper and lithium industries that higher tariffs will hit Chile's competitiveness and hurt new investment.
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In addition to state mining firm Codelco, the world's top copper producer, multinationals such as BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L, Antofagasta Minerals ANTO.L and Freeport FCX.N operate in Chile. By Fabian Cambero SANTIAGO, Jan 27 (Reuters) - Chile's Senate on Thursday pushed forward an amended version of the country's mining royalty bill, which would raise tariffs on firms operating in the world's top copper producing nation despite being watered down amid industry pushback. The upper chamber's Mining Commission waved through the amended draft, which seeks to address concerns within the copper and lithium industries that higher tariffs will hit Chile's competitiveness and hurt new investment.
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In addition to state mining firm Codelco, the world's top copper producer, multinationals such as BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L, Antofagasta Minerals ANTO.L and Freeport FCX.N operate in Chile. By Fabian Cambero SANTIAGO, Jan 27 (Reuters) - Chile's Senate on Thursday pushed forward an amended version of the country's mining royalty bill, which would raise tariffs on firms operating in the world's top copper producing nation despite being watered down amid industry pushback. The upper chamber's Mining Commission waved through the amended draft, which seeks to address concerns within the copper and lithium industries that higher tariffs will hit Chile's competitiveness and hurt new investment.
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In addition to state mining firm Codelco, the world's top copper producer, multinationals such as BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L, Antofagasta Minerals ANTO.L and Freeport FCX.N operate in Chile. By Fabian Cambero SANTIAGO, Jan 27 (Reuters) - Chile's Senate on Thursday pushed forward an amended version of the country's mining royalty bill, which would raise tariffs on firms operating in the world's top copper producing nation despite being watered down amid industry pushback. The upper chamber's Mining Commission waved through the amended draft, which seeks to address concerns within the copper and lithium industries that higher tariffs will hit Chile's competitiveness and hurt new investment.
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83adede9-747a-49e4-84b5-4f0d592c59f0
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3828.0
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2022-01-27 00:00:00 UTC
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METALS-Dollar drags copper lower after hawkish U.S. Fed
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AAL
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https://www.nasdaq.com/articles/metals-dollar-drags-copper-lower-after-hawkish-u.s.-fed
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nan
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nan
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Updates throughout, adds dateline
LONDON, Jan 27 (Reuters) - Copper prices eased on Thursday as the U.S. Federal Reserve indicated it could tighten monetary policy quicker and faster than previously expected, boosting the dollar.
In a news conference following a Federal Open Market Committee meeting, Fed chief Jerome Powell said "the committee is of a mind to raise the federal funds rate at the March meeting assuming that the conditions are appropriate for doing so".
The news boosted the dollar to its highest since July 2020, making metals priced in the U.S. greenback less attractive to global buyers. FRX/
"The hawkish tone that Powell provided yesterday has taken edge off commodity performance including in base metals," said WisdomTree commodity strategist Nitesh Shah.
"Reduced liquidity means that what could be fueling demand for these metals could wane."
Three-month copper on the London Metal Exchange CMCU3 was down 1% at $9,824 a tonne, as of 1304 GMT, snapping a two-session winning streak.
COPPER INVENTORIES: Capping further losses were low inventories of the metal in warehouses registered with the LME.
On-warrant copper stocks slipped to a two-month low of 65,750 tonnes. MCUSTX-TOTAL
COPPER SUPPLY: Miner Anglo American AAL.L said its overall production for the fourth quarter was flat as a strong diamonds performance countered a 4% fall in copper, for which it expects higher output this year.
ANTOFAGASTA: The U.S. Department of the Interior canceled two mineral leases for Antofagasta's ANTO.L proposed Twin Metals copper and nickel mine in Minnesota, effectively killing the project and handing a major win to environmentalists.
RUSSIA: The United States has set out a diplomatic path to address sweeping Russian demands in eastern Europe, as Moscow held security talks with Western countries and intensified its military build-up near Ukraine with new drills.
Russia is a major producer of metals including nickel and palladium.
OTHER METALS: LME aluminium CMAL3 was flat at $3,093 a tonne, zinc CMZN3 added 0.8% to $3,637, lead CMPB3 shed 0.4% to $2,313, tin CMSN3 was up 0.2% to $42 300 while nickel CMNI3 was down 0.6% to $22,555.
(Reporting by Zandi Shabalala, additional reporting by Enrico Dela Cruz in Manila; Editing by Bernadette Baum)
((zandi.shabalala@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MCUSTX-TOTAL COPPER SUPPLY: Miner Anglo American AAL.L said its overall production for the fourth quarter was flat as a strong diamonds performance countered a 4% fall in copper, for which it expects higher output this year. Updates throughout, adds dateline LONDON, Jan 27 (Reuters) - Copper prices eased on Thursday as the U.S. Federal Reserve indicated it could tighten monetary policy quicker and faster than previously expected, boosting the dollar. The news boosted the dollar to its highest since July 2020, making metals priced in the U.S. greenback less attractive to global buyers.
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MCUSTX-TOTAL COPPER SUPPLY: Miner Anglo American AAL.L said its overall production for the fourth quarter was flat as a strong diamonds performance countered a 4% fall in copper, for which it expects higher output this year. FRX/ "The hawkish tone that Powell provided yesterday has taken edge off commodity performance including in base metals," said WisdomTree commodity strategist Nitesh Shah. ANTOFAGASTA: The U.S. Department of the Interior canceled two mineral leases for Antofagasta's ANTO.L proposed Twin Metals copper and nickel mine in Minnesota, effectively killing the project and handing a major win to environmentalists.
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MCUSTX-TOTAL COPPER SUPPLY: Miner Anglo American AAL.L said its overall production for the fourth quarter was flat as a strong diamonds performance countered a 4% fall in copper, for which it expects higher output this year. COPPER INVENTORIES: Capping further losses were low inventories of the metal in warehouses registered with the LME. ANTOFAGASTA: The U.S. Department of the Interior canceled two mineral leases for Antofagasta's ANTO.L proposed Twin Metals copper and nickel mine in Minnesota, effectively killing the project and handing a major win to environmentalists.
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MCUSTX-TOTAL COPPER SUPPLY: Miner Anglo American AAL.L said its overall production for the fourth quarter was flat as a strong diamonds performance countered a 4% fall in copper, for which it expects higher output this year. Updates throughout, adds dateline LONDON, Jan 27 (Reuters) - Copper prices eased on Thursday as the U.S. Federal Reserve indicated it could tighten monetary policy quicker and faster than previously expected, boosting the dollar. In a news conference following a Federal Open Market Committee meeting, Fed chief Jerome Powell said "the committee is of a mind to raise the federal funds rate at the March meeting assuming that the conditions are appropriate for doing so".
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c153d185-8759-49d9-9b1d-5867760b576d
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3829.0
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2022-01-27 00:00:00 UTC
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Anglo American posts flat Q4 overall output, sees higher copper in 2022
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AAL
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https://www.nasdaq.com/articles/anglo-american-posts-flat-q4-overall-output-sees-higher-copper-in-2022
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nan
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nan
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Updates, adds forecasts
LONDON, Jan 27 (Reuters) - Global miner Anglo American AAL.L said on Thursday its overall production for the fourth quarter was flat as a strong diamonds performance countered a 4% fall in copper, for which it expects higher output this year.
After producing 647,200 tonnes of copper in 2021, in line with the previous year, the London listed miner now expects between 680,000 and 760,000 tonnes for this year, driven by its new Quellaveco copper mine in Peru.
However, it warned about possible COVID-related disruptions and water shortages in Chile, where it mines the bulk of its copper.
"(At Quellaveco) We are on track and within budget, we mined our first ore in October 2021, and we are expecting our first production of copper concentrate in the middle of this year," Chief Executive Mark Cutifani said in a statement.
The miner expects Quellaveco to produce between 120,000 and 160,000 tonnes in 2022, followed by an average of 300,000 tonnes per year for the first 10 years at full production.
In the three months to December, rough diamond production rose by 15% from a year earlier mostly on increased output from Botswana and Namibia to meet renewed consumer demand.
Iron ore production fell 7% in the fourth quarter, due to unplanned maintenance at its Minas-Rio mine in Brazil, but was up 3% for the year at 63.8 million tonnes.
Its Platinum Group Metals (PGMs) operations more than doubled refined production in the fourth quarter, resulting in a record full-year refined production of 5.1 million ounces. For 2022, it expects to produce between 4.1 million and 4.5 million ounces.
(Reporting by Clara Denina in London and Shanima A in Bengaluru; editing by Jason Neely)
((shanima.a@thomsonreuters.com; (; Direct: +91 77 6034 7399 );))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Updates, adds forecasts LONDON, Jan 27 (Reuters) - Global miner Anglo American AAL.L said on Thursday its overall production for the fourth quarter was flat as a strong diamonds performance countered a 4% fall in copper, for which it expects higher output this year. "(At Quellaveco) We are on track and within budget, we mined our first ore in October 2021, and we are expecting our first production of copper concentrate in the middle of this year," Chief Executive Mark Cutifani said in a statement. In the three months to December, rough diamond production rose by 15% from a year earlier mostly on increased output from Botswana and Namibia to meet renewed consumer demand.
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Updates, adds forecasts LONDON, Jan 27 (Reuters) - Global miner Anglo American AAL.L said on Thursday its overall production for the fourth quarter was flat as a strong diamonds performance countered a 4% fall in copper, for which it expects higher output this year. The miner expects Quellaveco to produce between 120,000 and 160,000 tonnes in 2022, followed by an average of 300,000 tonnes per year for the first 10 years at full production. Its Platinum Group Metals (PGMs) operations more than doubled refined production in the fourth quarter, resulting in a record full-year refined production of 5.1 million ounces.
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Updates, adds forecasts LONDON, Jan 27 (Reuters) - Global miner Anglo American AAL.L said on Thursday its overall production for the fourth quarter was flat as a strong diamonds performance countered a 4% fall in copper, for which it expects higher output this year. After producing 647,200 tonnes of copper in 2021, in line with the previous year, the London listed miner now expects between 680,000 and 760,000 tonnes for this year, driven by its new Quellaveco copper mine in Peru. The miner expects Quellaveco to produce between 120,000 and 160,000 tonnes in 2022, followed by an average of 300,000 tonnes per year for the first 10 years at full production.
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Updates, adds forecasts LONDON, Jan 27 (Reuters) - Global miner Anglo American AAL.L said on Thursday its overall production for the fourth quarter was flat as a strong diamonds performance countered a 4% fall in copper, for which it expects higher output this year. After producing 647,200 tonnes of copper in 2021, in line with the previous year, the London listed miner now expects between 680,000 and 760,000 tonnes for this year, driven by its new Quellaveco copper mine in Peru. For 2022, it expects to produce between 4.1 million and 4.5 million ounces.
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ec92bd8d-a348-4c05-8e23-bec8f3f012e3
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3830.0
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2022-01-27 00:00:00 UTC
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Anglo American Q4 production flat on rise in diamond output
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AAL
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https://www.nasdaq.com/articles/anglo-american-q4-production-flat-on-rise-in-diamond-output
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nan
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nan
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Jan 27 (Reuters) - Global miner Anglo American AAL.L said on Thursday its fourth-quarter overall production was broadly flat, helped by higher rough diamond production at De Beers that countered a 4% drop in copper output for the three months ended Dec. 31.
(Reporting by Clara Denina in London and Shanima A in Bengaluru)
((shanima.a@thomsonreuters.com; (; Direct: +91 77 6034 7399 );))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jan 27 (Reuters) - Global miner Anglo American AAL.L said on Thursday its fourth-quarter overall production was broadly flat, helped by higher rough diamond production at De Beers that countered a 4% drop in copper output for the three months ended Dec. 31. (Reporting by Clara Denina in London and Shanima A in Bengaluru) ((shanima.a@thomsonreuters.com; (; Direct: +91 77 6034 7399 );)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jan 27 (Reuters) - Global miner Anglo American AAL.L said on Thursday its fourth-quarter overall production was broadly flat, helped by higher rough diamond production at De Beers that countered a 4% drop in copper output for the three months ended Dec. 31. (Reporting by Clara Denina in London and Shanima A in Bengaluru) ((shanima.a@thomsonreuters.com; (; Direct: +91 77 6034 7399 );)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jan 27 (Reuters) - Global miner Anglo American AAL.L said on Thursday its fourth-quarter overall production was broadly flat, helped by higher rough diamond production at De Beers that countered a 4% drop in copper output for the three months ended Dec. 31. (Reporting by Clara Denina in London and Shanima A in Bengaluru) ((shanima.a@thomsonreuters.com; (; Direct: +91 77 6034 7399 );)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jan 27 (Reuters) - Global miner Anglo American AAL.L said on Thursday its fourth-quarter overall production was broadly flat, helped by higher rough diamond production at De Beers that countered a 4% drop in copper output for the three months ended Dec. 31. (Reporting by Clara Denina in London and Shanima A in Bengaluru) ((shanima.a@thomsonreuters.com; (; Direct: +91 77 6034 7399 );)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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9a2af4f3-70b5-41d6-b53b-926da281f571
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3831.0
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2022-01-24 00:00:00 UTC
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Noteworthy Monday Option Activity: AAL, VIAC, AXP
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AAL
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-aal-viac-axp
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 163,041 contracts has been traded thus far today, a contract volume which is representative of approximately 16.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.5% of AAL's average daily trading volume over the past month, of 35.1 million shares. Particularly high volume was seen for the $16 strike call option expiring January 28, 2022, with 13,779 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $16 strike highlighted in orange:
ViacomCBS Inc (Symbol: VIAC) saw options trading volume of 73,615 contracts, representing approximately 7.4 million underlying shares or approximately 46.5% of VIAC's average daily trading volume over the past month, of 15.8 million shares. Particularly high volume was seen for the $35 strike call option expiring April 14, 2022, with 4,846 contracts trading so far today, representing approximately 484,600 underlying shares of VIAC. Below is a chart showing VIAC's trailing twelve month trading history, with the $35 strike highlighted in orange:
And American Express Co. (Symbol: AXP) options are showing a volume of 15,529 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 46.3% of AXP's average daily trading volume over the past month, of 3.4 million shares. Particularly high volume was seen for the $180 strike call option expiring March 18, 2022, with 1,084 contracts trading so far today, representing approximately 108,400 underlying shares of AXP. Below is a chart showing AXP's trailing twelve month trading history, with the $180 strike highlighted in orange:
For the various different available expirations for AAL options, VIAC options, or AXP options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $16 strike call option expiring January 28, 2022, with 13,779 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 163,041 contracts has been traded thus far today, a contract volume which is representative of approximately 16.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.5% of AAL's average daily trading volume over the past month, of 35.1 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 163,041 contracts has been traded thus far today, a contract volume which is representative of approximately 16.3 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAL's trailing twelve month trading history, with the $16 strike highlighted in orange: ViacomCBS Inc (Symbol: VIAC) saw options trading volume of 73,615 contracts, representing approximately 7.4 million underlying shares or approximately 46.5% of VIAC's average daily trading volume over the past month, of 15.8 million shares. That number works out to 46.5% of AAL's average daily trading volume over the past month, of 35.1 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 163,041 contracts has been traded thus far today, a contract volume which is representative of approximately 16.3 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $16 strike call option expiring January 28, 2022, with 13,779 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $16 strike highlighted in orange: ViacomCBS Inc (Symbol: VIAC) saw options trading volume of 73,615 contracts, representing approximately 7.4 million underlying shares or approximately 46.5% of VIAC's average daily trading volume over the past month, of 15.8 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 163,041 contracts has been traded thus far today, a contract volume which is representative of approximately 16.3 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAL's trailing twelve month trading history, with the $16 strike highlighted in orange: ViacomCBS Inc (Symbol: VIAC) saw options trading volume of 73,615 contracts, representing approximately 7.4 million underlying shares or approximately 46.5% of VIAC's average daily trading volume over the past month, of 15.8 million shares. Below is a chart showing AXP's trailing twelve month trading history, with the $180 strike highlighted in orange: For the various different available expirations for AAL options, VIAC options, or AXP options, visit StockOptionsChannel.com.
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36f375a5-448c-4d91-b471-d7a509851c1a
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3832.0
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2022-01-24 00:00:00 UTC
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5 Top Aerospace Stocks to Buy for the Long Haul
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AAL
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https://www.nasdaq.com/articles/5-top-aerospace-stocks-to-buy-for-the-long-haul
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nan
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nan
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A full recovery in commercial aviation will take time, but it's a question of when, not if. So if you want to play a multiyear recovery in the sector, then stocks like aerospace and defense company Textron (NYSE: TXT), pilot training and simulator company CAE (NYSE: CAE), aerospace and defense giant Raytheon Technologies (NYSE: RTX), small-cap aviation services AAR (NYSE: AIR), and advanced-materials company Hexcel (NYSE: HXL) are excellent ways to gain exposure. Here's why.
Image source: Getty Images.
Textron can soar again in 2022
Textron stock soared more than 50% in 2021, and there's reason to believe it can continue. The industrial, defense, and aerospace company operates out of four segments, Bell (military and commercial helicopters), Industrial (specialized vehicles, fuel systems, and functional components), Textron Systems (military hardware, robotic land vehicles, air support for the U.S. military), and Textron Aviation (business jets and planes).
The big story of 2021 was the resurgence in profits at Textron Aviation (with its Cessna and Beechcraft brands) as the business-jet market recovered strongly. The segment was responsible for $333 million of the $397 million increase in operational profit in the first nine months of 2021. A combination of a recovering economy and the frustrations around commercial aviation travel during the pandemic seem to be encouraging spending on business jets.
These favorable conditions should continue, with Honeywell's Global Business Aviation Outlook noting that "business aviation usage trends point to a nearly 50% increase in flight hours in 2021 versus 2020, roughly 5% above 2019." Furthermore, it said, "Operators plan to make new jet purchases equivalent to about 14% of their fleets over the next five years as replacements or additions to their current fleet."
It looks like another good year for Textron.
CAE invested during the downturn
The aviation industry faces a potential shortage of pilots in the next couple of years. The pandemic caused early pilot retirements, a lack of new pilots entering training, and an industry exodus by many junior pilots. Throw in the need to train pilots using new digital formats and retrain rusty pilots, and the outlook is positive for market-leading pilot training services and simulator company CAE.
Image source: Getty Images.
Management spent much of the pandemic acquiring a slew of training and simulation businesses to consolidate the market and prepare for post-pandemic growth. In particular, growth in higher-margin training services provides the company with a way to expand revenue and margin in the future.
Management's actions are likely to prove perspicacious in the coming years as the market for pilot training picks up.
Raytheon Technologies' balanced growth
This behemoth offers a combination of defense and commercial aviation businesses. The former supported the latter during the worst days of the pandemic. However, its commercial aviation businesses (Collins Aerospace and Pratt & Whitney) are set for a multiyear recovery and will take up the growth baton from the defense businesses (Raytheon Intelligence & Space, and Raytheon Missiles & Defense).
CEO Greg Hayes believes Raytheon will generate $10 billion in free cash flow by 2025. That's a considerable number, representing around 7.4% of the current market cap of $135.8 billion.
If Raytheon hits Hayes' target, it will look like an excellent value stock. Its defense revenue is relatively stable. In addition, Collins Aerospace's original equipment manufacturer (OEM) sales should be in growth mode as airplane production ramps up, and Pratt & Whitney's engines should have decades of aftermarket growth ahead of them.
AAR and Hexcel
Hexcel is a play on the OEM market and the trend toward Boeing and Airbus using its stronger, lighter advanced composites as part of their more-modern aircraft. Given that the aftermarket is very limited for such products, buying Hexcel stock is a vote of confidence in production ramp-up at airplane manufacturers.
In addition, with more content per plane on newer models, Hexcel is likely to generate significantly more overall revenue when unit volumes return to 2019 levels. Let's put it this way: In the three years before 2020, Hexcel generated an average of $246 million in free cash flow (FCF). Given that the market cap is just $4.8 billion, Hexcel would trade on less than 20 times FCF (at the current market cap) when it gets back to 2017-2019 levels of FCF. That would be an excellent valuation for a company with such strong growth prospects.
Image source: Getty Images.
In contrast, AAR is a play on growth in aviation services. It offers parts supply (used and OEM factory-new parts), repair and engineering, and flight and logistics support for commercial and cargo airlines and the military. Customers include Lufthansa, American Airlines, Delta Air Lines, Southwest Airlines, FedEx, UPS, and the U.S. Air Force.
It's a business that will grow in line with the recovery in-flight hours and AAR's ability to grow contracts. So far, so good. On the second-quarter earnings presentation in December, CEO John Holmes said: "We delivered our fifth straight quarter of adjusted operating margin improvement and are now exceeding pre-pandemic levels. We expect this improvement to continue as our higher-margin parts activities fully recover."
Wall Street analysts think AAR will generate around $100 million a year in FCF in the 2021-2023 period, or around 6.7% of its current $1.5 billion market cap. AAR represents an excellent value play on a recovering commercial aviation market.
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Lee Samaha owns Honeywell International. The Motley Fool owns and recommends FedEx. The Motley Fool recommends Delta Air Lines, Hexcel, Southwest Airlines, and Textron. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The big story of 2021 was the resurgence in profits at Textron Aviation (with its Cessna and Beechcraft brands) as the business-jet market recovered strongly. Management spent much of the pandemic acquiring a slew of training and simulation businesses to consolidate the market and prepare for post-pandemic growth. On the second-quarter earnings presentation in December, CEO John Holmes said: "We delivered our fifth straight quarter of adjusted operating margin improvement and are now exceeding pre-pandemic levels.
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So if you want to play a multiyear recovery in the sector, then stocks like aerospace and defense company Textron (NYSE: TXT), pilot training and simulator company CAE (NYSE: CAE), aerospace and defense giant Raytheon Technologies (NYSE: RTX), small-cap aviation services AAR (NYSE: AIR), and advanced-materials company Hexcel (NYSE: HXL) are excellent ways to gain exposure. The industrial, defense, and aerospace company operates out of four segments, Bell (military and commercial helicopters), Industrial (specialized vehicles, fuel systems, and functional components), Textron Systems (military hardware, robotic land vehicles, air support for the U.S. military), and Textron Aviation (business jets and planes). The Motley Fool recommends Delta Air Lines, Hexcel, Southwest Airlines, and Textron.
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So if you want to play a multiyear recovery in the sector, then stocks like aerospace and defense company Textron (NYSE: TXT), pilot training and simulator company CAE (NYSE: CAE), aerospace and defense giant Raytheon Technologies (NYSE: RTX), small-cap aviation services AAR (NYSE: AIR), and advanced-materials company Hexcel (NYSE: HXL) are excellent ways to gain exposure. The industrial, defense, and aerospace company operates out of four segments, Bell (military and commercial helicopters), Industrial (specialized vehicles, fuel systems, and functional components), Textron Systems (military hardware, robotic land vehicles, air support for the U.S. military), and Textron Aviation (business jets and planes). However, its commercial aviation businesses (Collins Aerospace and Pratt & Whitney) are set for a multiyear recovery and will take up the growth baton from the defense businesses (Raytheon Intelligence & Space, and Raytheon Missiles & Defense).
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Raytheon Technologies' balanced growth This behemoth offers a combination of defense and commercial aviation businesses. However, its commercial aviation businesses (Collins Aerospace and Pratt & Whitney) are set for a multiyear recovery and will take up the growth baton from the defense businesses (Raytheon Intelligence & Space, and Raytheon Missiles & Defense). AAR represents an excellent value play on a recovering commercial aviation market.
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459f72ea-5516-4766-b2b1-ca1e966a96f5
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3833.0
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2022-01-22 00:00:00 UTC
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American Airlines' Earnings Beat Is No Cause for Optimism
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AAL
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https://www.nasdaq.com/articles/american-airlines-earnings-beat-is-no-cause-for-optimism
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nan
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nan
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Earlier this month, American Airlines (NASDAQ: AAL) raised its fourth-quarter guidance. On Thursday, the airline giant posted results roughly in line with its updated forecast and slightly ahead of analysts' estimates.
However, American Airlines continues to report extremely poor results by objective standards. That trend is set to continue into 2022. Moreover, the company is still struggling under a massive debt burden, giving investors plenty of reasons to avoid American Airlines stock.
Another big quarterly loss
American Airlines recorded $9.43 billion of revenue last quarter, up from $4.03 billion a year earlier but down 17% compared with the fourth quarter of 2019 on 13% less capacity.
While unit revenue decreased a modest 4.2% relative to Q4 2019, American faced significant cost pressures. First, adjusted non-fuel unit costs surged 13.4% over that period, because of lower capacity, an incentive program to boost reliability, and other recovery-related expenses. Second, fuel costs have jumped due to the recent spike in oil prices. Third, American Airlines' interest expense has increased because of all of the incremental debt it took on to survive the past two years.
Image source: American Airlines.
This caused American Airlines to report a $1.18 billion pre-tax loss for the quarter, putting its adjusted pre-tax margin at minus-12.5%. That translated to an adjusted loss per share of $1.42.
These results were not as bad as what management had expected a few months ago. The full-service airline's initial guidance for the quarter called for a 20% revenue decline relative to Q4 2019 and an adjusted pre-tax margin between minus-16% and minus-18%. Still, by any objective standard, American's results were terrible -- and worse than what analysts had anticipated prior to the company providing its fourth-quarter outlook.
The first quarter will be even worse
Between seasonal weakness and the omicron variant's impact on demand, American Airlines is set to ring up another big loss in the first quarter. The company expects revenue to decline 20% to 22% compared with the first quarter of 2019 on 8% to 10% less capacity. Meanwhile, total costs will be up slightly from three years ago, with higher nonfuel unit costs, increased interest expense, and higher fuel prices more than offsetting reduced capacity and improved fuel efficiency.
If this outlook proves accurate, it implies a first-quarter adjusted pre-tax loss of more than $2 billion. Even if American ultimately beats its guidance, as it did last quarter, it nevertheless seems clear that the company is going to lose a lot of money this quarter -- and more than Wall Street analysts had been expecting.
Image source: American Airlines.
To be fair, American Airlines does expect to return to profitability later this year, as demand continues to recover. However, the company is digging itself such a deep hole in the first quarter that it will be hard to earn a full-year profit or generate positive free cash flow in 2022.
No reason to own American Airlines stock
American Airlines stock retreated on Thursday, after the company's earnings release. It ended the day at $16.76, within striking distance of its 52-week low. That might make the stock seem like a bargain, given that several analysts expect earnings per share to rebound to between $4 and $6 on roughly $50 billion of revenue by 2024.
Nevertheless, savvy investors will resist the temptation to buy this long-suffering airline stock. American Airlines has missed analysts' estimates repeatedly in recent years. Moreover, airline industry competition will be tougher than ever over the next few years. Budget carriers have continued growing their fleets through the pandemic, and American's fellow network airlines will be looking to make market share gains among high-fare business travelers.
That could keep a lid on profits for the foreseeable future. And given that American Airlines ended 2021 with over $46 billion of debt and lease liabilities, it would take many years of strong profits and cash flow to fix its balance sheet. As long as American's massive debt load continues to hang over the company, investors can probably find better places to put their money.
10 stocks we like better than American Airlines Group
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Adam Levine-Weinberg has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Earlier this month, American Airlines (NASDAQ: AAL) raised its fourth-quarter guidance. First, adjusted non-fuel unit costs surged 13.4% over that period, because of lower capacity, an incentive program to boost reliability, and other recovery-related expenses. Budget carriers have continued growing their fleets through the pandemic, and American's fellow network airlines will be looking to make market share gains among high-fare business travelers.
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Earlier this month, American Airlines (NASDAQ: AAL) raised its fourth-quarter guidance. Another big quarterly loss American Airlines recorded $9.43 billion of revenue last quarter, up from $4.03 billion a year earlier but down 17% compared with the fourth quarter of 2019 on 13% less capacity. This caused American Airlines to report a $1.18 billion pre-tax loss for the quarter, putting its adjusted pre-tax margin at minus-12.5%.
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Earlier this month, American Airlines (NASDAQ: AAL) raised its fourth-quarter guidance. Another big quarterly loss American Airlines recorded $9.43 billion of revenue last quarter, up from $4.03 billion a year earlier but down 17% compared with the fourth quarter of 2019 on 13% less capacity. No reason to own American Airlines stock American Airlines stock retreated on Thursday, after the company's earnings release.
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Earlier this month, American Airlines (NASDAQ: AAL) raised its fourth-quarter guidance. Another big quarterly loss American Airlines recorded $9.43 billion of revenue last quarter, up from $4.03 billion a year earlier but down 17% compared with the fourth quarter of 2019 on 13% less capacity. No reason to own American Airlines stock American Airlines stock retreated on Thursday, after the company's earnings release.
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f849cc99-94d0-4758-a039-310d6ef1e411
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3834.0
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2022-01-21 00:00:00 UTC
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Biden administration suspending 44 U.S flights by Chinese carriers
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AAL
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https://www.nasdaq.com/articles/biden-administration-suspending-44-u.s-flights-by-chinese-carriers
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nan
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nan
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By David Shepardson
WASHINGTON, Jan 21 (Reuters) - The U.S. Transportation Department said Friday it would suspend 44 China-bound flights from the United States by four Chinese carriers in response to the Chinese government's decision to suspend some U.S. carrier flights over COVID-19 concerns.
The Biden administration action came after Chinese authorities suspended a total of 44 United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N flights after some passengers tested positive for COVID-19.
The suspensions will begin on Jan. 30 with Xiamen Airlines’ scheduled Los Angeles-to-Xiamen flight.
The decision will cut some flights by Xiamen, Air China 601111.SS, China Southern Airlines 600029.SS and China Eastern Airlines 600115.SS. The Chinese Embassy in Washington did not immediately comment.
The Transportation Department said China's suspension of some flights "are adverse to the public interest and warrant proportionate remedial action." It added that China's "unilateral actions against the named U.S. carriers are inconsistent" with a China-U.S. bilateral agreement.
The department said that if China revised its "policies to bring about the necessary improved situation for U.S. carriers, the Department is fully prepared to once again revisit the action." But it also warned that if China cancels more flights, "we reserve the right to take additional action."
The number of U.S. flights being scrapped has surged since December, as infections caused by the highly contagious Omicron variant of the coronavirus soared to record highs in the United States.
Beijing and Washington have sparred over air services since the start of the pandemic. In August, the U.S. Transportation Department limited four flights from Chinese carriers to 40% passenger capacity for four weeks after Beijing imposed identical limits on four United Airlines flights.
(Reporting by David Shepardson; editing by Jonathan Oatis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Biden administration action came after Chinese authorities suspended a total of 44 United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N flights after some passengers tested positive for COVID-19. By David Shepardson WASHINGTON, Jan 21 (Reuters) - The U.S. Transportation Department said Friday it would suspend 44 China-bound flights from the United States by four Chinese carriers in response to the Chinese government's decision to suspend some U.S. carrier flights over COVID-19 concerns. The Transportation Department said China's suspension of some flights "are adverse to the public interest and warrant proportionate remedial action."
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The Biden administration action came after Chinese authorities suspended a total of 44 United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N flights after some passengers tested positive for COVID-19. The decision will cut some flights by Xiamen, Air China 601111.SS, China Southern Airlines 600029.SS and China Eastern Airlines 600115.SS. In August, the U.S. Transportation Department limited four flights from Chinese carriers to 40% passenger capacity for four weeks after Beijing imposed identical limits on four United Airlines flights.
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The Biden administration action came after Chinese authorities suspended a total of 44 United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N flights after some passengers tested positive for COVID-19. By David Shepardson WASHINGTON, Jan 21 (Reuters) - The U.S. Transportation Department said Friday it would suspend 44 China-bound flights from the United States by four Chinese carriers in response to the Chinese government's decision to suspend some U.S. carrier flights over COVID-19 concerns. The decision will cut some flights by Xiamen, Air China 601111.SS, China Southern Airlines 600029.SS and China Eastern Airlines 600115.SS.
|
The Biden administration action came after Chinese authorities suspended a total of 44 United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N flights after some passengers tested positive for COVID-19. By David Shepardson WASHINGTON, Jan 21 (Reuters) - The U.S. Transportation Department said Friday it would suspend 44 China-bound flights from the United States by four Chinese carriers in response to the Chinese government's decision to suspend some U.S. carrier flights over COVID-19 concerns. The Transportation Department said China's suspension of some flights "are adverse to the public interest and warrant proportionate remedial action."
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a7d8d44c-9b61-4acd-ae24-a34573a284b9
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3835.0
|
2022-01-21 00:00:00 UTC
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Biden administration suspending 44 Chinese carrier U.S flights
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AAL
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https://www.nasdaq.com/articles/biden-administration-suspending-44-chinese-carrier-u.s-flights
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nan
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nan
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WASHINGTON, Jan 21 (Reuters) - The U.S. Transportation Department said Friday it would suspend 44 China-bound flights from the United States by Chinese carriers in response to the Chinese government's decision to suspend some U.S. carrier flights over COVID-19 concerns.
The Biden administration action comes after Chinese authorities have suspended 44 total United Airlines, American Airlines and Delta Air Lines flights after some passengers latest tested positive for COVID-19. The flight suspensions will begin Jan. 30 with Xiamen Airlines’ scheduled Los Angeles to Xiamen.
(Reporting by David Shepardson)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, Jan 21 (Reuters) - The U.S. Transportation Department said Friday it would suspend 44 China-bound flights from the United States by Chinese carriers in response to the Chinese government's decision to suspend some U.S. carrier flights over COVID-19 concerns. The Biden administration action comes after Chinese authorities have suspended 44 total United Airlines, American Airlines and Delta Air Lines flights after some passengers latest tested positive for COVID-19. (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Jan 21 (Reuters) - The U.S. Transportation Department said Friday it would suspend 44 China-bound flights from the United States by Chinese carriers in response to the Chinese government's decision to suspend some U.S. carrier flights over COVID-19 concerns. The Biden administration action comes after Chinese authorities have suspended 44 total United Airlines, American Airlines and Delta Air Lines flights after some passengers latest tested positive for COVID-19. The flight suspensions will begin Jan. 30 with Xiamen Airlines’ scheduled Los Angeles to Xiamen.
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WASHINGTON, Jan 21 (Reuters) - The U.S. Transportation Department said Friday it would suspend 44 China-bound flights from the United States by Chinese carriers in response to the Chinese government's decision to suspend some U.S. carrier flights over COVID-19 concerns. The Biden administration action comes after Chinese authorities have suspended 44 total United Airlines, American Airlines and Delta Air Lines flights after some passengers latest tested positive for COVID-19. (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Jan 21 (Reuters) - The U.S. Transportation Department said Friday it would suspend 44 China-bound flights from the United States by Chinese carriers in response to the Chinese government's decision to suspend some U.S. carrier flights over COVID-19 concerns. The Biden administration action comes after Chinese authorities have suspended 44 total United Airlines, American Airlines and Delta Air Lines flights after some passengers latest tested positive for COVID-19. The flight suspensions will begin Jan. 30 with Xiamen Airlines’ scheduled Los Angeles to Xiamen.
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30fd0ef6-6854-4587-891d-dee35077eb64
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3836.0
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2022-01-21 00:00:00 UTC
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Alrosa sales revenue up 49% as diamond demand outstrips supply
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AAL
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https://www.nasdaq.com/articles/alrosa-sales-revenue-up-49-as-diamond-demand-outstrips-supply
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nan
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nan
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Adds detail, quotes, context
MOSCOW, Jan 21 (Reuters) - Russian diamond producer Alrosa's ALRS.MM sales revenue jumped by 49% to $4.2 billion last year as demand exceeded supply and helped the company to recover from the hit it took at the start of the COVID-19 pandemic, it said on Friday.
Alrosa, the world's largest producer of rough diamonds and a competitor of Anglo American's AAL.L De Beers, raised 2021 production by 8% to 32.4 million carats as it increased output at deposits in Russia's far east.
"Demand for rough diamonds outstrips the supply. Following completion of the Diwali celebration, cutters in India have ramped up production to prepare for restocking by jewellery companies after the Christmas season sales," Alrosa said in a statement.
The bulk of global diamond cutting and polishing operations are located in India.
Alrosa's average price index rose by 12.5% in 2021, the state-controlled miner said, adding that global prices remain supported by high jewellery demand, declining inventories in the diamond sector and muted production capacity.
It expects global annual production of rough diamonds to remain at 110 million to 120 million carats in the mid-term, compared with pre-pandemic levels of 140–150 million carats.
Alrosa's 2021 diamond sales rose by 42% to 45.5 million carats thanks to sales of part of its previously accumulated stockpile. This decreased its stockpile to 8.8 million carats at the end of 2021.
(Reporting by Polina Devitt Editing by David Goodman)
((Polina.Devitt@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alrosa, the world's largest producer of rough diamonds and a competitor of Anglo American's AAL.L De Beers, raised 2021 production by 8% to 32.4 million carats as it increased output at deposits in Russia's far east. Adds detail, quotes, context MOSCOW, Jan 21 (Reuters) - Russian diamond producer Alrosa's ALRS.MM sales revenue jumped by 49% to $4.2 billion last year as demand exceeded supply and helped the company to recover from the hit it took at the start of the COVID-19 pandemic, it said on Friday. Following completion of the Diwali celebration, cutters in India have ramped up production to prepare for restocking by jewellery companies after the Christmas season sales," Alrosa said in a statement.
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Alrosa, the world's largest producer of rough diamonds and a competitor of Anglo American's AAL.L De Beers, raised 2021 production by 8% to 32.4 million carats as it increased output at deposits in Russia's far east. Adds detail, quotes, context MOSCOW, Jan 21 (Reuters) - Russian diamond producer Alrosa's ALRS.MM sales revenue jumped by 49% to $4.2 billion last year as demand exceeded supply and helped the company to recover from the hit it took at the start of the COVID-19 pandemic, it said on Friday. It expects global annual production of rough diamonds to remain at 110 million to 120 million carats in the mid-term, compared with pre-pandemic levels of 140–150 million carats.
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Alrosa, the world's largest producer of rough diamonds and a competitor of Anglo American's AAL.L De Beers, raised 2021 production by 8% to 32.4 million carats as it increased output at deposits in Russia's far east. It expects global annual production of rough diamonds to remain at 110 million to 120 million carats in the mid-term, compared with pre-pandemic levels of 140–150 million carats. Alrosa's 2021 diamond sales rose by 42% to 45.5 million carats thanks to sales of part of its previously accumulated stockpile.
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Alrosa, the world's largest producer of rough diamonds and a competitor of Anglo American's AAL.L De Beers, raised 2021 production by 8% to 32.4 million carats as it increased output at deposits in Russia's far east. Adds detail, quotes, context MOSCOW, Jan 21 (Reuters) - Russian diamond producer Alrosa's ALRS.MM sales revenue jumped by 49% to $4.2 billion last year as demand exceeded supply and helped the company to recover from the hit it took at the start of the COVID-19 pandemic, it said on Friday. "Demand for rough diamonds outstrips the supply.
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3ef6d6ec-55d1-4d5f-9f65-c0f7abe76b2c
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3837.0
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2022-01-20 00:00:00 UTC
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Why Vertical Aerospace Stock Lifted Off Today
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AAL
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https://www.nasdaq.com/articles/why-vertical-aerospace-stock-lifted-off-today
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nan
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nan
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What happened
Shares of Vertical Aerospace (NYSE: EVTL) took flight on Thursday, gaining up to 38% on strong volume. There was no news to explain the jump, but the stock appeared to get caught in an updraft on a strong market day in which investors poured money back into riskier investments.
Image source: Getty Images.
So what
Vertical Aerospace is a British company developing an electronic aircraft capable of vertical takeoffs and landings. The company has big backers, boasting a total of 1,350 conditional preorders from the likes of American Airlines Group (NASDAQ: AAL) and others, and went public back in December via a merger with special purpose acquisition company (SPAC) Broadstone Acquisition Corp.
This is an exciting opportunity, but also a very crowded field. Vertical is one of four early-stage electric vertical takeoff and landing (eVTOL) companies to go public in the last year, joining Joby Aviation (NYSE: JOBY), Lilium (NASDAQ: LILM), and Archer Aviation (NYSE: ACHR).
Vertical Aerospace shares in their first few weeks of trading have been volatile, jumping as much as 20% after the merger with Broadstone was finalized but falling more than 40% in the days that followed. But they have gained altitude in recent days despite no apparent news.
EVTL data by YCharts
Through much of January, the broader markets have soured on pre-revenue companies and other riskier assets, a group which would include Vertical Aerospace. But the markets were up on Thursday, and investors rushed into Vertical Aerospace as focus shifted to the potential return on investment instead of the risk involved. Through 1:45 p.m. EST, nearly 7.5 million Vertical Aerospace shares had traded hands, well above the 461,000 average daily volume for the company. https://finance.yahoo.com/quote/EVTL?p=EVTL&.tsrc=fin-srch
Now what
There is real promise in these electric helicopter/airplane hybrids but also a lot of hype. Vertical Aerospace is valued by the market at nearly $2 billion despite not yet having a product in service and facing a lot of competition.
Earlier in the week, Barclays analyst David Zazula initiated coverage on Vertical Aerospace with an underweight rating and a $7 price target, warning that the company has the smallest balance sheet and the most aggressive projections among all of the eVTOL companies. He sees material long-term upside to the concept but cautions there are a lot of risks as well.
His warning should be taken seriously. For those interested in the technology and drawn to Vertical Aerospace's ambitious plan, there is enough substance here to make this stock a small piece of a well-diversified portfolio. But investors need to be aware this is unlikely to be a smooth flight, and there is a lot of potential downside from here if things do not go as planned.
10 stocks we like better than Vertical Aerospace Ltd.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Vertical Aerospace Ltd. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The company has big backers, boasting a total of 1,350 conditional preorders from the likes of American Airlines Group (NASDAQ: AAL) and others, and went public back in December via a merger with special purpose acquisition company (SPAC) Broadstone Acquisition Corp. There was no news to explain the jump, but the stock appeared to get caught in an updraft on a strong market day in which investors poured money back into riskier investments. EVTL data by YCharts Through much of January, the broader markets have soured on pre-revenue companies and other riskier assets, a group which would include Vertical Aerospace.
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The company has big backers, boasting a total of 1,350 conditional preorders from the likes of American Airlines Group (NASDAQ: AAL) and others, and went public back in December via a merger with special purpose acquisition company (SPAC) Broadstone Acquisition Corp. What happened Shares of Vertical Aerospace (NYSE: EVTL) took flight on Thursday, gaining up to 38% on strong volume. There was no news to explain the jump, but the stock appeared to get caught in an updraft on a strong market day in which investors poured money back into riskier investments.
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The company has big backers, boasting a total of 1,350 conditional preorders from the likes of American Airlines Group (NASDAQ: AAL) and others, and went public back in December via a merger with special purpose acquisition company (SPAC) Broadstone Acquisition Corp. Vertical is one of four early-stage electric vertical takeoff and landing (eVTOL) companies to go public in the last year, joining Joby Aviation (NYSE: JOBY), Lilium (NASDAQ: LILM), and Archer Aviation (NYSE: ACHR). Earlier in the week, Barclays analyst David Zazula initiated coverage on Vertical Aerospace with an underweight rating and a $7 price target, warning that the company has the smallest balance sheet and the most aggressive projections among all of the eVTOL companies.
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The company has big backers, boasting a total of 1,350 conditional preorders from the likes of American Airlines Group (NASDAQ: AAL) and others, and went public back in December via a merger with special purpose acquisition company (SPAC) Broadstone Acquisition Corp. What happened Shares of Vertical Aerospace (NYSE: EVTL) took flight on Thursday, gaining up to 38% on strong volume. Vertical Aerospace shares in their first few weeks of trading have been volatile, jumping as much as 20% after the merger with Broadstone was finalized but falling more than 40% in the days that followed.
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3fc2c51d-f261-4931-bf1c-0786a597ec81
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3838.0
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2022-01-20 00:00:00 UTC
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Stock Market Today: Foiled Again! Sizable Snap-Back Fizzles Late
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-foiled-again-sizable-snap-back-fizzles-late
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nan
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nan
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Stocks suffered another failure to launch on Thursday as a brisk morning run in the major indexes crumbled in the afternoon, resulting in another disappointing finish in the red, and a deeper turn into correction territory for the Nasdaq Composite.
Initial claims for unemployment benefits were in focus today. Filings for the week ended Jan. 15 climbed by 55,000, to 286,000 – the highest level since late October.
SEE MORE The 12 Best Utility Stocks to Buy for 2022
"Thursday's rise in weekly jobless claims show that the labor market is starting to reflect the negative economic impacts from the Omicron wave," says Robert Schein, chief investment officer of Blanke Schein Wealth Management, adding that "we still believe the labor market is strong enough for the Federal Reserve to proceed with its expected rate-hike plans in 2022."
Existing-home sales for December also disappointed, off 4.6% month-over-month and down 7.1% year-over-year amid scarce inventory.
Stocks nonetheless seem primed for a bounce off recent declines (even if only of the dead-cat variety), perhaps encouraged by Street-beating earnings from the likes of Travelers (TRV, +3.2%) and Union Pacific (UNP, +1.1%).
But what momentum there was faded fast.
Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
The Dow Jones Industrial Average, up 1.3% at its highs, reversed to finish 0.9% lower to 34,715, with the S&P 500 (-1.1% to 4,482) following suit. The Nasdaq, already in correction territory, watched a 2.1% intraday climb turn to ash, closing down 1.3% to 14,154.
While the short-term collapse of the Nasdaq seems somewhat sudden, John Lynch, chief investment officer for Comerica Wealth Management, highlights some underlying rot: "Though the Composite entered correction territory yesterday, performance at the stock level had already weakened significantly," he says. "The Nasdaq-100 members have already experienced an average decline of 22.0% from their 52-week highs.
SEE MORE The 22 Best Stocks to Buy for 2022
"As investors reprice the risk of Fed rate hikes, the indexes simply need to catch up to their average stock. We believe solid growth in the economy and profits should preclude anything more than a 10.0% correction in the major equity indexes."
YCharts
Other news in the stock market today:
The small-cap Russell 2000 plunged 1.9% to 2,024.
U.S. crude oil futures eased back 0.3% to $85.55 per barrel.
Gold futures posted a marginal loss, ending at $1,842.60 an ounce.
Bitcoin actually put together a solid return of 2.6%, to $42,726.19. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
Peloton Interactive (PTON) slumped 23.9% after CNBC reported that the company is suspending production of its connected fitness Bike exercise bike and Tread+ treadmills for the next two months. The move comes amid decreased demand, according to internal documents obtained by CNBC. Since closing at a record high of $162.72 in December 2020, PTON shares have surrendered more than 85%.
American Airlines Group (AAL) slid 3.2% after the travel name reported earnings. In its fourth quarter, AAL reported higher-than-expected revenue of $9.43 billion, but adjusted earnings of $1.42 fell short of the consensus estimate and the airline said it expects first-quarter revenue to be down 20% to 22% when compared to Q1 2019. CFRA Research analyst Colin Scarola kept a Hold rating on AAL after earnings, saying inflation is starting to drive up costs. "Notably, AAL's labor costs are approaching 2019 levels, even with headcount still down 9% vs. the same point in 2019," Scarola writes in a note. "And the price of jet fuel is currently about 23% higher than the average price during 2019."
Give Europe a Glance
Investors concerned about U.S. stocks' sluggish start to 2022 might want to look overseas.
SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022
European equities have long underperformed their American counterparts and the same was true in 2021. But 2022 is shaping up as the year in which returns from across the pond might finally outpace those seen here at home, notes BCA Research.
Although European equities face persistent headwinds, including sensitivity to the Chinese economy, the trajectory of COVID-19 and tensions over Ukraine, "these risks are likely to fade over the year and will give way to an improvement in the outlook for eurozone equities," BCA strategists say. "The Eurozone economy is still operating below potential. This implies that the European economy has more room to catch up, which will support earnings and therefore risk assets."
Europe is also fruitful ground for investors seeking value stocks, with the region sporting "much more attractive" valuations at the moment, adds BCA.
Value is the primary focus of our examination of the best European stocks to buy for 2022, but we also highlight a few growthier options. And one trait these names pretty much all share is they generally deliver greater income than their U.S. cousins. (Indeed, a few are even members of the European Dividend Aristocrats.)
SEE MORE Hedge Funds’ 25 Favorite Blue-Chip Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (AAL) slid 3.2% after the travel name reported earnings. In its fourth quarter, AAL reported higher-than-expected revenue of $9.43 billion, but adjusted earnings of $1.42 fell short of the consensus estimate and the airline said it expects first-quarter revenue to be down 20% to 22% when compared to Q1 2019. CFRA Research analyst Colin Scarola kept a Hold rating on AAL after earnings, saying inflation is starting to drive up costs.
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American Airlines Group (AAL) slid 3.2% after the travel name reported earnings. In its fourth quarter, AAL reported higher-than-expected revenue of $9.43 billion, but adjusted earnings of $1.42 fell short of the consensus estimate and the airline said it expects first-quarter revenue to be down 20% to 22% when compared to Q1 2019. CFRA Research analyst Colin Scarola kept a Hold rating on AAL after earnings, saying inflation is starting to drive up costs.
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American Airlines Group (AAL) slid 3.2% after the travel name reported earnings. In its fourth quarter, AAL reported higher-than-expected revenue of $9.43 billion, but adjusted earnings of $1.42 fell short of the consensus estimate and the airline said it expects first-quarter revenue to be down 20% to 22% when compared to Q1 2019. CFRA Research analyst Colin Scarola kept a Hold rating on AAL after earnings, saying inflation is starting to drive up costs.
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American Airlines Group (AAL) slid 3.2% after the travel name reported earnings. In its fourth quarter, AAL reported higher-than-expected revenue of $9.43 billion, but adjusted earnings of $1.42 fell short of the consensus estimate and the airline said it expects first-quarter revenue to be down 20% to 22% when compared to Q1 2019. CFRA Research analyst Colin Scarola kept a Hold rating on AAL after earnings, saying inflation is starting to drive up costs.
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c7ba446c-f1de-499b-b7db-30f99fa2e94c
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3839.0
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2022-01-20 00:00:00 UTC
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Consumer Sector Update for 01/20/2022: LAZR, CVNA, CRSR, AAL
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-for-01-20-2022%3A-lazr-cvna-crsr-aal
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nan
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nan
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Consumer stocks were narrowly higher late in Thursday trading, with the SPDR Consumer Staples Select Sector ETF (XLP) adding 0.1% and the SPDR Consumer Discretionary Select Sector ETF (XLY) rising 0.2%.
In company news, Luminar Technologies (LAZR) was 16% higher after the vehicle sensors and software company announced a new partnership with Daimler's Mercedes-Benz unit that includes Luminar providing its Iris light detection and ranging technology to the German automaker. Financial terms were not disclosed.
Carvana (CVNA) climbed 2% after a KeyBanc downgrade to sector weight from overweight, one day after the used-car ecommerce platform said it completed its 1 millionth sale during the final three months of 2021, or roughly nine years after the company began operations.
Corsair Gaming (CRSR) was advancing 3.8% after the gaming equipment and components company reported preliminary FY21 revenue of $1.9 billion, reaching the high end of its $1.825 billion to $1.925 billion forecast range and topping Street views looking for $1.88 billion in revenue for 12 months ended Dec. 31. Street forecast provided by Capital IQ. It sees FY22 revenue growing to between $1.9 billion to $2.1 billion, straddling the Capital IQ consensus looking for $1.99 billion in revenue this year.
To the downside, American Airlines Group (AAL) turned 1.3% lower late Thursday, reversing a midday gain, after the carrier said total revenue for its current Q1 will likely be down 20% to 22% from its $10.58 billion in revenue during the pre-pandemic first three months of 2019, indicating a Q1 range of $8.25 billion to $8.46 billion. Analysts, on average, are looking for American Airlines to generate $8.97 billion during the three months ending March 31.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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To the downside, American Airlines Group (AAL) turned 1.3% lower late Thursday, reversing a midday gain, after the carrier said total revenue for its current Q1 will likely be down 20% to 22% from its $10.58 billion in revenue during the pre-pandemic first three months of 2019, indicating a Q1 range of $8.25 billion to $8.46 billion. In company news, Luminar Technologies (LAZR) was 16% higher after the vehicle sensors and software company announced a new partnership with Daimler's Mercedes-Benz unit that includes Luminar providing its Iris light detection and ranging technology to the German automaker. Carvana (CVNA) climbed 2% after a KeyBanc downgrade to sector weight from overweight, one day after the used-car ecommerce platform said it completed its 1 millionth sale during the final three months of 2021, or roughly nine years after the company began operations.
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To the downside, American Airlines Group (AAL) turned 1.3% lower late Thursday, reversing a midday gain, after the carrier said total revenue for its current Q1 will likely be down 20% to 22% from its $10.58 billion in revenue during the pre-pandemic first three months of 2019, indicating a Q1 range of $8.25 billion to $8.46 billion. Consumer stocks were narrowly higher late in Thursday trading, with the SPDR Consumer Staples Select Sector ETF (XLP) adding 0.1% and the SPDR Consumer Discretionary Select Sector ETF (XLY) rising 0.2%. Corsair Gaming (CRSR) was advancing 3.8% after the gaming equipment and components company reported preliminary FY21 revenue of $1.9 billion, reaching the high end of its $1.825 billion to $1.925 billion forecast range and topping Street views looking for $1.88 billion in revenue for 12 months ended Dec. 31.
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To the downside, American Airlines Group (AAL) turned 1.3% lower late Thursday, reversing a midday gain, after the carrier said total revenue for its current Q1 will likely be down 20% to 22% from its $10.58 billion in revenue during the pre-pandemic first three months of 2019, indicating a Q1 range of $8.25 billion to $8.46 billion. Corsair Gaming (CRSR) was advancing 3.8% after the gaming equipment and components company reported preliminary FY21 revenue of $1.9 billion, reaching the high end of its $1.825 billion to $1.925 billion forecast range and topping Street views looking for $1.88 billion in revenue for 12 months ended Dec. 31. It sees FY22 revenue growing to between $1.9 billion to $2.1 billion, straddling the Capital IQ consensus looking for $1.99 billion in revenue this year.
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To the downside, American Airlines Group (AAL) turned 1.3% lower late Thursday, reversing a midday gain, after the carrier said total revenue for its current Q1 will likely be down 20% to 22% from its $10.58 billion in revenue during the pre-pandemic first three months of 2019, indicating a Q1 range of $8.25 billion to $8.46 billion. Corsair Gaming (CRSR) was advancing 3.8% after the gaming equipment and components company reported preliminary FY21 revenue of $1.9 billion, reaching the high end of its $1.825 billion to $1.925 billion forecast range and topping Street views looking for $1.88 billion in revenue for 12 months ended Dec. 31. It sees FY22 revenue growing to between $1.9 billion to $2.1 billion, straddling the Capital IQ consensus looking for $1.99 billion in revenue this year.
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2022-01-20 00:00:00 UTC
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Airline Stock Roundup: 5G Rollout Scare, UAL & DAL's Q4 Earnings Grab Headlines
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-5g-rollout-scare-ual-dals-q4-earnings-grab-headlines
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In the past week, U.S. airlines, including Delta Air Lines DAL and American Airlines AAL, raised safety-related concerns over the expected deployment of 5G wireless service near many U.S. airports.
On the earnings front, Delta kicked off the fourth-quarter 2021 earnings season for the airline stocks on a bright note. DAL reported better-than-expected earnings per share and revenues for the same period. Results were aided by optimistic air traffic during the holidays. United Airlines UAL reported narrower-than-expected loss per share for fourth-quarter 2021. UAL’s performance on the revenue front was encouraging, again owing to strong air-travel demand during the holiday period.
On the traffic front, Allegiant Travel Company ALGT reported impressive traffic numbers for December as air-travel demand in the United States continues to improve, despite the threat posed by the omicron variant. Latin American carrier Copa Holdings’ CPA December traffic improved 11.5% from the November data.
Read the last Airline stock Roundup here.
Recap of the Latest Top Stories
1. Delta’s fourth-quarter 2021 earnings (excluding 86 cents from non-recurring items) of 22 cents per share outpaced the Zacks Consensus Estimate of 15 cents. Delta’s revenues came in at $9,470 million, which not only beat the Zacks Consensus Estimate of $9,232.1 million but also soared in excess of 100% from the year-ago reported figure as people resorted to air travel during the holidays. Due to the omicron-induced operational disruptions, DAL expects to incur a loss in first-quarter 2022.
Per Delta president Glen Hauenstein, "The recent rise in COVID cases associated with the omicron variant is expected to impact the pace of demand recovery early in the quarter, with recovery momentum resuming from President's Day weekend forward. Factoring this in to our outlook, we expect total March quarter revenue to recover to 72 to 76% of 2019 levels, compared to 74% in the December quarter." For the first quarter of 2022, DAL, currently carrying a Zacks Rank #4 (Sell), expects to operate at a capacity that is in the 83-85% range of first-quarter 2019 levels.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. United Airlines incurred a loss (excluding 39 cents from non-recurring items) of $1.60 per share in the fourth quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. Operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year with passenger revenues, accounting for 84% of the top line, soaring 185.4% to $6,878 million. This reflects the improvement in air-travel demand from the pandemic-induced lows in 2020. UAL’s management said that its bookings for spring and summer travel remain strong.
Nevertheless, with air-travel demand continuing to be below the pre-pandemic levels, total revenues declined 24.8% from the fourth-quarter 2019 (pre-pandemic) level. Passenger revenues dropped 30.87% from the 2019 level, while cargo revenues jumped more than 100% to $727 million. Revenues from other sources decreased 8.1% from the level in the fourth quarter of 2019 to $587 million.
United Airlines expects first-quarter 2022 capacity to decline 16-18% from the first-quarter 2019 level. UAL anticipates 2022 capacity to decline from the 2019 reading. Previously, the airline expected the same to increase 5% from the 2019 level. UAL now forecasts 2022 adjusted CASM, excluding fuel, to increase from the 2019 level (earlier, the same was anticipated to decline from the 2019 level).
3. Per a Reuters report, CEOs of major U.S. airlines warned of catastrophic aviation crisis in the event of 5G 'C-Band' service being rolled out by the telecom companies. Evidently, Delta warned that some flights could be affected if 5G signals cause limited interference with altitude instruments under certain weather conditions. Aviation companies are mainly concerned about the 5G rollout causing wrong readings by altimeters (devices that use radio frequencies to measure the distance between aircraft and the ground, and help planes land in bad weather).
4. At Allegiant, scheduled traffic (measured in revenue passenger miles) surged 100.5% in December 2021 from the year-ago levels. Capacity (measured in available seat miles) for scheduled service increased 37.9% from the December 2020 reading. With the traffic surge outweighing capacity expansion, the load factor (% of seats filled by passengers) in December expanded 24.6 points to 78.8% from the year-ago period’s levels. For the total system (including scheduled service and fixed fee contract), Allegiant carried 95.4% more passengers in December 2021 from the year-ago period’s level.
5. Copa Holdings’ traffic, measured in revenue passenger miles (RPMs), declined 13.5% to 1.57 billion in December 2021 from the comparable period’s level in 2019. The downside was primarily due to coronavirus-led lower air-travel demand from the pre-pandemic levels (2019). Due to tepid demand, capacity, measured in available seat miles (ASMs), fell 11.8% from the 2019 level to 1.87 billion. With traffic declining more than the amount of capacity contraction, load factor (percentage of seats filled with passengers) deteriorated 160 basis points to 83.8% in December.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that all airline stocks have traded in the red over the past week. Consequently, the NYSE ARCA Airline Index decreased 2.6% to $82.51 as headwinds like multiple flight cancellations and 5G-related concerns weighed on investors’ sentiments. Over the past six months, the NYSE ARCA Airline Index has depreciated 13.5%.
What's Next in the Airline Space?
Fourth-quarter earnings reports from some more carriers are expected in the coming days.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past week, U.S. airlines, including Delta Air Lines DAL and American Airlines AAL, raised safety-related concerns over the expected deployment of 5G wireless service near many U.S. airports. American Airlines Group Inc. (AAL): Free Stock Analysis Report Per a Reuters report, CEOs of major U.S. airlines warned of catastrophic aviation crisis in the event of 5G 'C-Band' service being rolled out by the telecom companies.
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In the past week, U.S. airlines, including Delta Air Lines DAL and American Airlines AAL, raised safety-related concerns over the expected deployment of 5G wireless service near many U.S. airports. American Airlines Group Inc. (AAL): Free Stock Analysis Report On the traffic front, Allegiant Travel Company ALGT reported impressive traffic numbers for December as air-travel demand in the United States continues to improve, despite the threat posed by the omicron variant.
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In the past week, U.S. airlines, including Delta Air Lines DAL and American Airlines AAL, raised safety-related concerns over the expected deployment of 5G wireless service near many U.S. airports. American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta’s revenues came in at $9,470 million, which not only beat the Zacks Consensus Estimate of $9,232.1 million but also soared in excess of 100% from the year-ago reported figure as people resorted to air travel during the holidays.
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In the past week, U.S. airlines, including Delta Air Lines DAL and American Airlines AAL, raised safety-related concerns over the expected deployment of 5G wireless service near many U.S. airports. American Airlines Group Inc. (AAL): Free Stock Analysis Report UAL’s performance on the revenue front was encouraging, again owing to strong air-travel demand during the holiday period.
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2022-01-20 00:00:00 UTC
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American Airlines Group (AAL) Q4 2021 Earnings Call Transcript
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-q4-2021-earnings-call-transcript
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Image source: The Motley Fool.
American Airlines Group (NASDAQ: AAL)
Q4 2021 Earnings Call
Jan 20, 2022, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the American Airlines Group fourth quarter 2021earnings conference call Today's call is being recorded. [Operator instructions] And now I would like to turn the conference over to your moderator, head of investor relations, Mr. Dan Cravens.
Dan Cravens -- Moderator, Managing Director of Investor Relations
Thank you, Liz, and good morning, everyone, and welcome to the American Airlines Group fourth quarter 2021earnings conference call On the call this morning, we have Doug Parker, chairman and CEO; Robert Isom, president and incoming CEO; and Derek Kerr, chief financial officer. Also on the call for our Q&A session are some of our senior executives, including Maya Leibman, Steve Johnson, Vasu Raja, David Seymour, Nate Gatten, and Devon May. Like we normally do, Doug will start the call with an overview of our quarter and will update the actions we have taken during the pandemic.
Robert will then follow up with some remarks about our operations and initiatives for 2022. After Robert's remarks, Derek will follow with the details on the quarter and provide guidance for the year. [Operator instructions] Before we begin, we must state that today's call does contain forward-looking statements, including statements concerning future revenues, costs, forecasts of capacity, and fleet plans. These statements represent our predictions and expectations as to future events, but numerous risks and uncertainties could cause results to differ from those projected.
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Information about some of these risks and uncertainties can be found in our earnings press release that was issued this morning, as well as our Form 10-Q for the quarter ended September 30, 2021. In addition, we will be discussing certain non-GAAP financial measures this morning, which exclude the impact of unusual items. A reconciliation of those numbers to the GAAP measures is included in the earnings release, and that can be found in the Investor Relations section of our website. A webcast of this call will also be archived on our website.
And the information that we're giving you on the call this morning is as of today's date, and we undertake no obligation to update the information subsequently. So thanks again and joining us -- for joining us this morning. And at this point, I'll turn the call over to our chairman and CEO, Doug Parker.
Doug Parker -- Chairman and Chief Executive Officer
Thank you, Dan, and good morning, everybody, and thanks for being on the call. We have a lot to cover today, but I'm going to start with the big news since last quarter's call, at least for me, which is that Robert Isom is going to be the next CEO of American Airlines. That change is effective on March 31. I'm going to remain chairman of the American Board, but importantly, I will have no executive duties.
Robert will be fully in charge. I will stand as chairman for as long as Robert and the board find that of value. This is terrific news for our team. Robert is going to be the ninth CEO in the nearly 100-year history of American Airlines, which we believe is the best job in all of aviation.
And we all are excited for Robert and for American. As you all know, Robert is someone I've worked alongside for several decades. He's an extraordinary team builder who understands the complexities of operating in an airline like American. He loves the people of American, and he brings a fresh perspective to the future of American.
I know he's going to accomplish great things, and I'm looking forward to watching that happen, along with all of you. Now what this transition does mean is this is going to be my lastearnings callwith you all, which is kind of a big deal for me. I've had a speaking role on every quarterlyearnings callsince I became CFO of America West Airlines in June of 1995. So by my calculations, this makes this my 107th consecutive quarterly call.
So I'm going to try not to speak as much on this one as I have on the first 106 calls, especially as it relates to the company's go-forward plans. Rather, I'm going to let those who are leading American into the future to talk about that future. But before I turn over the stage, I do have a couple of quick thank yous. First is to you all, the sell-side analysts and the reporters, who cover our business.
You all have very important jobs covering this crazy industry that we all love, and you do it extremely well. I hope you know I have great respect for what you do and the challenges you face, and I've done my best throughout my career to treat you with the respect you deserve and to give you access in the community you need to do your jobs well. And you've all been extremely fair to me, which I really appreciate. So thank you very much as a blanket thank you to all of you on the line.
It also goes to some of the great people that preceded you, former analysts, like Carl Carros, Candace Browning, Sam Bucket; and former reporters, like Terry Max and Susan Carey, and Scott McCartney. Thank you, all. The second thank you is to the American Airlines team which I can't begin to do adequately on this call, but what I can do to somewhat thank them is to tell you all about the phenomenal job they did in 2021. For the year when growing back to meet a huge increase in demand was the most important and challenging objective for all airlines, the American team grew back faster and further than anyone else.
We served about 25% more customers than any other airline in 2020, which is phenomenal in our industry. The last time in the U.S. airline was that much larger than the next best -- next highest competitor was more than 10 years ago, and that was done by merging two existing airlines, not through organic growth. This growth in 2021 led us to hire 16,000 new team members last year.
We expect to hire another 18,000 in 2022, and our team managed that growth while taking great care of our customers. We posted the best operating performance in our company's history in 2021 with the highest on-time performance and completion factor we've ever had. And we were the second highest to the four largest airlines in all of those metrics, despite the fact we grew back so much further and faster than they did. We're particularly proud of how we ended the year certainly relative to our competitors.
Our team had far more customers than any other airline over holidays, and we did so with much less disruption than our primary competitors. American was the top-performing airline, among all airlines in December in each of the key operating metrics. And as our teams performed as well, our customers have taken note. Our full-year 2021 likelihood to recommend scores were the highest in American history.
That's an incredible testament to our people, who not only show up every day to operate the world's largest airline, but they do so in a way that welcomes back our customers with open arms. And all this translated to our shareholders as well in a year of very difficult stock performance for the industry. American stock increased 19%, far more than any other U.S. airline.
So I want to summarize all this to convey my gratitude to the incredible American Airlines team. And I want to thank each of them on behalf of our customers, our shareholders, and everyone who counts on them every day. It's this performance that gives us great confidence and momentum as we head into 2022 and beyond. So with that, thank you all again.
I'm going to now turn it over to our soon-to-be CEO, Robert Isom, to talk about what lies ahead. Robert?
Robert Isom -- President
Thanks, Doug, and good morning, everyone. I want to start by thanking the entire American Airlines team for their efforts in the fourth quarter and throughout the entire pandemic. And I'd like to reiterate how honored I am to be taking on the role as CEO. I want to express my appreciation for Doug's partnership and friendship over the years.
As you all know, Doug leaves behind an incredible legacy, having opened many doors for our airline and our industry. I look forward to continuing to work closely with him over the coming months to ensure a seamless transition. I'm taking on this role at a very important time for American. Over the past few years, our airline and our industry have gone through a period of transformative change that American has made good use of that time, especially in regard to renewing our fleet, facilities, and network, and making the company as efficient as possible.
For fleet, we have dramatically simplified. We now operate just four fleet types. That gives us operating flexibility, reliability, and efficiency. American's fleet remains the youngest in the U.S.
network carriers. Our aircraft are equipped with industry-leading Wi-Fi, new interiors, and we've added seats to our 737 and A321 fleets, bringing us more in line with the rest of the industry. For facilities, we have expanded the number of gates we operate at our largest hubs in Dallas/Fort Worth and Charlotte. And we have inaugurated a wonderful new regional concourse at Reagan National, which is historically our most profitable hub.
We've also invested more than $200 million in lounges over the past five years with new Admirals Club lounges opening at Reagan National and LaGuardia. New and upgraded airport spaces are underway in New York, Chicago, and Los Angeles as well. And we've also updated maintenance, training, and corporate spaces throughout the system to ensure our team can perform at an even higher level. For network, we're finding more to where our customers want to go.
Our DFW and Charlotte hubs are prime to operate more than 900 and 700 flights per day, respectively. Our partnerships with JetBlue in the Northeast in Alaska and the West Coast allow us to create an industry-leading presence in markets that have historically been difficult for American. And our proposed investments in South American carriers strengthened our already industry-leading position in that region. As demand continues to recover and we return to full utilization of our assets, American is poised to outperform.
We have extracted $1.3 billion of efficiencies, and we're operating an economic fleet that will provide CASM-X tailwinds as capacity is restored. Based on our current assumptions, we expect all of this to result in a return to profitability later this year and continued deleveraging as we pay down $15 billion of debt by the end of 2025. And I'm excited to hit the ground running in April and build on our momentum to deliver results in 2022. So let's get to the business in the quarter.
This morning, American reported a fourth quarter GAAP net loss of $931 million and a full year GAAP net loss of $2 billion. Excluding net special items, we reported a net loss of $921 million for the quarter and a net loss of $5.4 billion for the full year. Our results for 2021 were significantly improved over 2020, but the impact of the omicron variant has affected the timing of a full revenue recovery. We delivered a strong revenue performance in the fourth quarter, despite the rise in infections.
We reported fourth quarter revenues of $9.4 billion, our highest for any quarter since the start of the pandemic, and a sequential increase of $458 million from the third quarter. Our cargo team continues to do a fantastic work and delivered record cargo revenues of $1.3 billion in 2021, 30% higher than our previous record. As we've seen throughout the pandemic, each new variance and corresponding increase in cases is followed by a faster recovery of demand with fewer regulatory restrictions and changes in travel policies. Based on what we're seeing, we expect omicron to follow the same pattern.
Bookings are recovering quickly after dropping off considerably in early December, though they're still not back to pre-omicron levels. Leisure travel, particularly in the U.S., and short-haul international market, remains very strong and is approaching a 100% recovery. We expect this trend to continue. And interestingly, we've seen many of our customers that have historically -- we've historically called leisure travelers are actually flying for reasons beyond just vacations.
They may find a feature of a mountain destination, but they're actually going to work remotely for the week. The lines between leisure and business travel are definitely blurry.. The recovery of international and business travel slowed late in the fourth quarter, given the omicron variant, but we remain very bullish on both. The return of international travel is directly linked to travel restrictions around the globe.
As the restrictions fall off, we expect international travel to pick up considerably. We still expect business travel to come back in full, but it will come back in a different way. And by that, I mean the overall mix of business customers, how they travel and how we serve them. As we have shared previously, small and medium-sized business travel remains the strongest segment.
In the fourth quarter, small and medium business travel was roughly 80% recovered, while large corporate travel was only 40% recovered. In addition, small and medium business revenue had sequential month-over-month improvement in December, in spite of the impact of omicron. We're optimistic that as corporate travel returns in a significant way this year and as companies come back more fully into the office and get back on the road, we're going to be back on track. But as we're developing our plans and forecast for this year, we're working to build an airline that can be profitable, even without the full return of managed corporate travel.
The demand environment has changed a lot through the pandemic. Because of this, we have to be nimble and responsive. We have built agile processes that allow us to deliver the network our customers need and want, no matter the environment. The game has changed and our team is ready.
Growing back our network the way we did in 2020 is a feat in and of itself, but to do so while running a reliable operation and achieving strong revenue results along the way make it even more impressive. We entered 2022 with tremendous confidence as a result of the way we finished last year and started the new year. As Doug noted, American had the best reliability of all U.S. carriers in December and the highest annual likelihood to recommend scores in our history.
We're very pleased that 97% of our team has been vaccinated or submitted a request for an accommodation, with no one losing their job. We put creative agreements in place with our union partners to support the operations throughout the pandemic and just recently reached new contract extensions for some of our team members to start the year, all of this while flying more flights and more passengers than any other U.S. carrier by a wide margin. To ensure this momentum continues, we have two sharply focused priorities for this year: running a reliable airline for our customers and returning to profitability.
Returning to profitability is very much tied to the demand and revenue environment. But as I mentioned, the work we have done during the pandemic has positioned us very well. This includes our cost and efficiency actions, which Derek will touch on momentarily, as well as the work that we have done to refocus our network around our most profitable clients. Enhancing our partnerships around the U.S.
and around the world and driving value through the AAdvantage program and co-brand cards has found something that we've done well. And on an absolute basis, new AAdvantage member acquisitions in 2021 outpaced 2019, despite lower level of capacity, and our AAdvantage revenues in 2021 closed in on 2019 revenues. So in summary, we're grateful for the incredible work of the American Airlines team over the past year. We remain optimistic about the return of demand, and we're very pleased with how American is positioned, thanks to the tremendous efforts of our team.
And now with that, I'll turn it over to Derek.
Derek Kerr -- Chief Financial Officer
Thanks, Robert, and good morning, everyone. Before I review the results, I would also like to thank the American Airlines team for their outstanding work during the quarter. This pandemic has been relentless. And despite the uncertainty, our team continued to show it's the best in the business.
This morning, we reported a fourth quarter GAAP net loss of $931 million or a loss of $1.44 per share. Excluding net special items, we reported a net loss of $921 million or a loss of $1.42 per share. For the full year 2021, we reported a GAAP net loss of $2 billion. And excluding net special items, we reported a net loss of $5.4 billion.
Despite the impact of omicron that we saw in this quarter, the trajectory of our revenue recovery continues to be positive, and it even exceeded our initial expectations as we outlined on our last call. Our fourth quarter revenue was down 17% compared with the same period of 2019 versus our original guidance of down 20%. This gradual improvement makes it even clearer to us that despite the uncertain demand environment, the steps we have taken over the past 24 months to bolster our network and improve our revenue-generating capabilities are working. On the cost side, we remain focused on keeping our controllable cost down, and we actioned $1.3 billion in permanent annual cost initiatives in 2021, providing a new and more efficient baseline for our 2022 budget.
During the fourth quarter, we made the decision to invest in the operation with a holiday pay program for our employees, as well as reducing our peak holiday capacity. These actions did put pressure on our unit cost performance in the fourth quarter, but they led to a strong operational performance over that period. This included an industry-leading month of operating performance in December when it mattered the most to our customers. On the fleet side, I'm pleased to report that our fleet harmonization project is now nearly complete, with our last A321 going into the shop this quarter.
This is a full year ahead of our original schedule. We're excited to have this project behind us. In addition to a consistent product and better experience for our customers, the operational benefits of having a simplified and streamlined fleet are already being realized. The changes we have made to our A321s and 737s enable us to fly 2% more total capacity than we could have with the old configuration, thus, providing a unit cost tailwind as we continue to build back our network.
In addition to better unit cost, these reconfigured aircraft will also generate more revenue, allowing us to recover from the pandemic even faster. With respect to our widebody aircraft. We continue to have productive conversations with Boeing to determine the timing of our delayed 788 deliveries that were expected to arrive last year. Due to the continued uncertainty of delivery schedule, these aircraft remains out of our near-term schedule to minimize customer disruption.
We expect to fly four aircraft during our peak summer schedule. We ended the fourth quarter with $15.8 billion of total available liquidity, which is the highest year-end liquidity balance in the company's history. As we have said in the past, the deleveraging of American's balance sheet remains a top priority, and we are committed to significant debt reduction in the years ahead. Even with this volatile demand environment, we remain on track with our target of reducing overall debt levels by $15 billion by the end of 2025.
In fact, as of the end of 2021, we have already reduced our overall debt levels by $3.7 billion from our peak levels in the second quarter of 2021. During the quarter, we made $706 million in scheduled debt payments, which resulted in paying off the 2013-1 AATC B-tranche. In the first quarter, we expect to make $337 million of scheduled debt payments, which will include unencumbering 12 aircraft. For our pension, our funded status improved by 9.2 points to 77.9%, resulting in a $2 billion reduction in the underfunded liability on a year-over-year basis.
Lastly, during the fourth quarter, we completed approximately $960 million of AATC financing, and we now have financing secured for all our 2022 deliveries through the third quarter. Our 2022 budget reflects our priorities to run a reliable airline for our customers and return to profitability. Our plan includes ongoing investments that will help build upon the positive momentum we've seen in our operations, while leveraging the cost efficiencies and network enhancements we have talked so much about. We believe these actions will provide a solid baseline for both profitability and free cash flow production when demand has fully recovered.
Looking to the first quarter, COVID-impacted demand and elevated fuel prices will continue to put pressure on our near-term margins. In this environment, we expect our capacity to be down approximately 8% to 10% versus the first quarter of 2019. Based on current demand assumptions and capacity plans, we expect total revenue to be down approximately 20% to 22% versus the first quarter of 2019. We expect our first quarter CASM, excluding fuel and net special items, to be up between 8% and 10%.
While we expect to be unprofitable on a pre-tax basis in January and February, we anticipate a material improvement and a return to profitability in March as demand returns. As for 2022 capacity, much of our plans are subject to the uncertain timings of deliveries of our 788 aircraft. As I mentioned previously, we moved these aircraft from our near-term schedule to protect our customers. This reduction is worth approximately 1 to 2 points of scheduled capacity for 2022.
With this adjustment, we expect to add back our capacity throughout the year and to have full year capacity recovered to approximately 95% of 2019 levels. This, of course, is subject to the future demand environment, and we always have the ability to adapt, if demand conditions warrant. As we look at our costs, like other airlines, we are seeing inflationary pressures in fuel prices, hiring and training for both new hires and existing crews as we build back our operation, including on the regional side. We are also seeing increased starting wages for certain work groups, including vendors.
In addition, we are seeing unit cost pressures from the rolling 788 delays, as well as the impact from our ramp and mechanic contract that was ratified in early 2020. Even with these unit cost pressures, our fleet simplification strategy enables higher aircraft utilization and higher average gauge, both of which will help alleviate some of these pressures. As such, we expect our full-year CASM, excluding fuel and special items, to be up approximately 5% versus 2019, with the second half of the year much lower than the first half as we fly in more efficient schedule. For the full year, our projected debt maturities are expected to be $2.6 billion.
This includes the cash settlement of our $750 million unsecured notes that mature in June. Without any additional prepayment of debt, we project our total debt will be down $5.4 billion at the end of 2022 versus our peak levels in 2021. With respect to capital expenditures, we expect full-year 2022 capex to be approximately $2.6 billion, which is significantly lower than in previous years and versus others as our fleet replacement needs are complete. Net aircraft capex, including predelivery deposits, is expected to be $1.8 billion, and non-aircraft capex is expected to be $800 million.
So in conclusion. We are incredibly proud of our team for their continued resilience in a very challenging environment. With the bold actions we've taken and steadfast commitment of our team, we are well-positioned for the future. Now before we open up the line to questions, I would like to acknowledge Dan Cravens for a minute.
Today is Dan Cravens' 62nd call, not quite as many as 107, but 67 is pretty amazing, and finalearnings callas part of our American Airlines, US Airways, and America West team. I'd like to personally thank Dan for his two decades of service, his advocacy for both the airline and our investors, and for his friendship. The continuing Dan provided -- or the continuity, excuse me, Dan provided over 20 years in his role across multiple airlines, multiple crisis and a global academic is unmatched.
We wish him the best of luck in his next adventure. We will be introducing Scott Long, who will be stepping into Dan's role from our financial planning organization later this month. So with that, I'd like to open up the line for analyst questions.
Questions & Answers:
Operator
[Operator instructions] Our first question comes from Jamie Baker with J.P. Morgan.
Jamie Baker -- J.P. Morgan -- Analyst
Hi, good morning. Just quickly, Doug, I love your prepared remarks. I know the point wasn't to make me feel old, but Paul, Candace, Sam, I mean, what a throwback. But it really has been a privilege to speak to you on these calls, all these conferences, all these years.
I did want to just add my own thanks and congratulations. And obviously, same goes to my friend, Dan Cravens. First question, on the traffic liability, Derek. So sequentially, from the third quarter to the fourth, it declined by about $360 million, granted this is less than the customary seasonal decline, but Delta and United both experienced flat sequential trends.
And I'm just trying to understand what the nuances, the puts and takes are, whether it's a network issue, differences in forward bookings. Any additional color on the ATL sequential change?
Derek Kerr -- Chief Financial Officer
No. There's not really any difference, any color. I think, from a stored value basis, though that stayed pretty much the same. Future travel dropped from -- I think we were at 6.4 in total ATL balance, future travel was 3.6, went down to 3.2, which is a normal seasonality for us.
We did see a pickup at the end of the month or at the end of the month from normal buying. So I think it's just normal seasonality for us. And what we didn't see as much as the stored value being used and some additions because, as you know, some of the issues with the cancellations and things that were out there, we added a little bit to that. But I would have expected it to drop even more, but it held up just because of the fact that from an operations standpoint, there were -- we added a little bit in the fourth quarter from issues with the operation.
But other than that, I think it's just seasonality or what we normally see. I'm not sure why others were flat or up other than what they did.
Jamie Baker -- J.P. Morgan -- Analyst
All right. That's perfect. And just a quick follow-up, and I don't want to get bogged down in comparing your guides to that of United and Delta. But you all expect to arrive at a pretty similar first quarter revenue outcome, down 20-plus points from '19.
But you have to fly considerably more capacity to arrive at that output. Can you just remind us what some of the seasonal and network factors that drive this? I understand there's more seasonality for you in the first quarter, but I'm just trying to figure out what causes that drag.
Vasu Raja -- Chief Revenue Officer
Jamie, this is Vasu. The reality of where we still are in the first quarter is that there's still probably a pretty large variability in first quarter forecast. And so much like Derek, I won't comment on what our competitors are looking at. But we have taken a pretty conservative view of what revenue production will be in Q1.
We've been encouraged by recent trends as case growth spikes. We're already seeing bookings come in stronger so we'll see. But what we see to realize through the pandemic is that we have a lot of levers to go play in the airline really flexibly, and we can shift things up and down and indeed move capacity from one market to another, but more nimbly than we had in times past. And after so many crises, we thought we were nimble before and we got even faster.
So there's still a lot yet to do in the first quarter, and we'll see how things come together as demand start hitting back up.
Jamie Baker -- J.P. Morgan -- Analyst
OK. That's great. Thank you, gentlemen. Take care.
Doug Parker -- Chairman and Chief Executive Officer
Thank you, Jamie.
Operator
Our next question comes from Mike Linenberg with Deutsche Bank.
Mike Linenberg -- Deutsche Bank -- Analyst
Hey, good morning, everyone. Yes, really to echo a lot of what Jamie said. Doug, it's been a privilege, really. And I've learned a lot going all the way back to the early 2000s, and Dan as well.
Dan, you've been a great friend and you've been a great supporter. And so Scott, you've got some pretty big shoes to fill there.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Mike.
Mike Linenberg -- Deutsche Bank -- Analyst
Just quickly on to questions. I'm sure you're going to get some along these lines. I just want to hit on sort of this G5-ish -- or excuse me, G5, 5G issue. The FA was out, I think, yesterday or two days ago saying something like 62% of the U.S.
fleet is -- should be fine. Where do you guys stack up? And the way we should think about this, is this going to be -- is this going to blow over the next few weeks? Or is this going to sort of reappear five, six months down the road, when maybe some of these exemption zones or buffer zones around airports, maybe there's changes there. Like what should we be concerned about? What should we anticipate as this 5G rolls out over time? Thank you.
Doug Parker -- Chairman and Chief Executive Officer
OK. They're asking me to take this one, even though [inaudible] going start very much, Mike, the 5G. This has been like my last assignment. Anyway -- this is look -- and we've all been -- every airline, all CEOs that involve this over the holidays, it wasn't -- anyway, it wasn't our finest hour, I think, as a country to get us to that point.
But the good news is we now have what should have been going on for quite some time, which is the manufacturers, the telecoms, the government agencies all sharing information that they need to make sure that this can be rolled out in a way that all Americans get 5G and all Americans know that their flights aren't going to be impacted by that 5G. So where we sit right now is the way that we're all able to upgrade our fleet is because the telecoms have agreed not to fully deploy some of their towers near airports. So with that agreement, everything is fine. Again, I -- well, I'll turn to David [inaudible].
As far as you'll ever see, everything is totally fine. You see, we don't expect really any material disruption whatsoever as long as that's in place. As against stay in place, we need to get to where they can actually -- and we want to get to where they actually can deploy all the towers they have in place and that we can still do that. But no one's going to make -- no one's going to go do that until we all agree that it can be done without disruption.
So a long way of me saying, it's taken a while to get to the right spot, but I feel like we're in the right spot and the right people to derive information. I don't think you're going to see any material disruption going forward because of this.
Mike Linenberg -- Deutsche Bank -- Analyst
Great. That's what I wanted to hear. And just, Derek, a quick one on the non-op expense, $360 million for the quarter. Because of where your pension is and maybe the potential gains that you're anticipating and how you book it into 2022, is there going to be a pension tailwind not only in the March quarter, but for the year and any sort of rough estimate on what we should use from a modeling perspective? Thank you.
Derek Kerr -- Chief Financial Officer
Yes. I think there is a pension tailwind into the year. So if we ended up the quarter $380 million for this quarter. We're projecting it to be in the $350 million range for non-op and slowly declining as we pay off some debt throughout the quarter.
So I would -- first quarter should be more in the $350 million, $360 million range and declining to about the $340 million range in the fourth quarter.
Mike Linenberg -- Deutsche Bank -- Analyst
That's great. Thank you.
Operator
Our next question comes from Helane Becker with Cowen.
Helane Becker -- Cowen and Company -- Analyst
Thank you very much, operator. And yes, Doug, it's been really nice knowing you, but hopefully, we'll continue to stay in touch. And Dan, I mean you've been a really good supporter. Actually, your whole team has been a really good support of our conferences over the years.
So thank you very much and best wishes to both of you. And I refused to tell you how many of those conference calls.
Doug Parker -- Chairman and Chief Executive Officer
I think I know, but thanks, Helane.
Helane Becker -- Cowen and Company -- Analyst
No worries. So actually, I guess, I don't know, maybe to Robert. Can you just address two things? There -- you guys have said you're going to hire, I guess, a gross number of 18,000 people this year. And some of those are going to be pilots.
We're seeing United and American -- or Delta, rather, cut regional jet capacity because they don't have enough pilots. Are you going down that similar path? Or are you in a better position from a training perspective?
Robert Isom -- President
kkSo Helane, thanks. It's Robert. Thanks for that question. So we are going to be doing a lot of hiring this year.
We did a lot of hiring as well last year. So from a ton of perspective, we had a couple of years of the pandemic in which, quite frankly, there weren't a lot of people being trained. And given the demand, we -- the capacity in the industry fell by quite a bit. So as we all rebound, of course, there is a constraint that we're all dealing with.
There's not enough production. I do -- of pilot. I do believe that over time that that supply and demand in Palace will be remedied. It's an incredibly attractive profession when you think about the starting wages and the ultimate compensation for the industry.
So we're doing everything that we can, and I know other companies are as well, to encourage those that are looking for a great profession to come into the business. But in the short run, from a mainline perspective, look, we have -- American is a very, very attractive brand. We're going to have plenty of pilots. The biggest issue that we're dealing with is the throughput of pilots and getting them through training.
We've invested an incredible amount of resources and having training assets ready to go. Those are all coming online. And again, from a mainline perspective, we'll be able to supply all that we need. The imbalance is really going to be played out in the regional carriers.
And on that front, like other carriers, we're going to have issues as well. We have them right now. We're working very hard on that. It's impacting us to a certain degree, but we're going to do everything that we can to make sure that it's not a material impact over time.
Helane Becker -- Cowen and Company -- Analyst
OK. That's very helpful. Thank you. And then just my follow-up question.
I don't know who wants to answer this one. But when you talk about small- and medium-sized businesses and those folks who are traveling, because they really have to, for their livelihood, can you talk about also whether they've got the credit card? And if you're seeing increased credit card acquisition in that category?
Vasu Raja -- Chief Revenue Officer
Helane, this is Vasu, and I'm happy to answer your question. Indeed, this is one of our increasingly fair topics to talk about. You are correct. We see small and mid-market business growth.
But look, the diversity of who that customer is really can't be overstated. Everybody from somebody starting a business to sometimes relatively large companies who are seeing growth through the pandemic and get on the road to drive sales or visit factories or whatever the case might be. And for us, we do very -- we haven't seen growing acquisitions on our co-branded credit cards. Indeed, in Q4, it's not just that our spend level were eclipsed in 2019.
But our acquisitions, even net of attrition, was equal to and very often, for some months and some weeks, greater than what it was in 2019, which means that where people are coming to the card. That said, we see a real opportunity within the space of small business, mid-market business because the reality is we don't actually have a true card product or an entire consumer offering for that segment. A lot of things that we have are either tailored for really large corporate accounts or individual travelers. So we see a lot of opportunity as we come out of this and a lot of ways to go and drive a lot more value to that customer and captured in our P&L.
Helane Becker -- Cowen and Company -- Analyst
Thanks very much, Vasu. Thanks, everybody.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Helane.
Operator
Our next question comes from Duane Pfennigwerth with Evercore ISI.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Hi. Thanks. Good morning. I wanted to ask you both the same question I asked Gary and Bob at their investor day.
You have worked together for a long time as a team. But from a change perspective, is there any daylight between the two of you strategically? And do you have any examples of issues where you really constructively disagreed over the last decade?
Robert Isom -- President
Hey, Duane. Thanks. I'll start. Look, Doug and I are different leaders, and we definitely go about how we lead the company in different ways.
But I'll tell you that in terms of the strategic direction of American, I've not only worked with Doug, but I've been part of every major decision in this company over the last -- since the merger. And so from that perspective, we're doing the right thing. I'm excited about the positioning of American. The assets that we've put in place, whether it's fleet, airport, alliances, our network, we're ready to go.
As demand recovers and we can put our assets to full utilization, we're poised to outperform. So from that perspective, I don't expect to hear a lot of difference in terms of the way that Doug does these things. But right now, I am solely focused on making sure that we deliver a great product for our customers, and that's running a reliable airline, and getting back to profitability.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Thanks for that thoughts and appreciate it. It's a tricky question. Maybe one for Vasu. How different would March quarter capacity have been if we never had omicron? Maybe this is an unfair observation, but it feels like Americans' plans relative to the industry are very static in what is obviously a very dynamic world.
Appreciate you taking the questions.
Vasu Raja -- Chief Revenue Officer
Yeah, absolutely, and I appreciate the question. Look, it's sort of hard to do what hypotheticals would be. But what I would say is this. The part of the reason why maybe there's probably less volatility in our schedules is where our airline's sort of naturally positioned.
We -- not only do we operate a lot more of our capacity in domestic, we generate a lot more of value for customers and RASM results from flying in domestic. So for most of the pandemic, certainly the last several months, we've oriented about 85-ish percent of our ASM capacity in the domestic and short-haul operations. As we go in the first quarter, it will be about 80-ish percent in those, with another 5% or so constituting major international markets like one at Heathrow, for example. So for us, so much of our network is there, indeed.
So 65% of our network is in our -- what we call Sunbelt hubs, Phoenix, DFW, Charlotte, D.C., Miami, that have been extremely robust through the pandemic. And any one of those hubs produce unit revenues, which are well in excess of what our competitors do. So a little bit of what you see as a network composition difference, quite frankly. As we go out in the first quarter, quite briefly, we are flying the things where we can most directly create value for the customer and outperform.
And we're not doing the things that don't. So our long-haul schedules are 70% of what they have historically been. Our short-haul schedules are a lot closer to what flat is. So what it would be like when demand is that remains to be seen.
But for us, the real opportunity when we said it all through the pandemic is less about driving volume. And the capacity base, the cost base of the airline changes only very marginally, whether we fly at 95% or 92% of the airline. The really big thing for us is domestic yield performance. And as we look out, I mean, if indeed demand comes back where we see it is less about how we go and manipulate capacity around the system and more about how we capture it in yield growth.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Appreciate the thoughts.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Duane.
Operator
Our next question comes from Hunter Keay with Wolfe Research.
Hunter Keay -- Wolfe Research -- Analyst
Good morning. Robert, as you think about taking over the CEO role, what are some of the things that you want to accomplish in your first 100 days, maybe when your ability to put your stamp on things is at its highest.
Robert Isom -- President
Hunter, I'm going to just be really clear and focused on that. Our goal right now is to get back to profitability as soon as possible to deliver a reliable product, plain and simple. As I take a look forward, we've got a great opportunity ahead of us. And everything come together is the right time.
I do think that we're in a position where demand is poised to react. Everything that we see suggests that there is a pent-up desire for people to get out on the road, whether it's for leisure or business demand. And for that, I think I've got a special opportunity, one that brings together everything that we've been bringing -- working so hard to do throughout the pandemic and bringing that to fruition. So as I take look out to the middle of the year, I do think that we're going to get back to profitability.
I do think that American is going to continue to [inaudible] a very reliable airline, and I think we're going to be very, very competitive in all the markets that we serve.
Hunter Keay -- Wolfe Research -- Analyst
OK. And I always -- we talked about capacity being driven by demand and fuel cost occasionally. But what if you're not able to hire people? And what if you're not able to hire the right people that fit the culture that you want to build at American? Is there a decision where you would decide to be smaller as opposed to hiring people that might not be great cultural fits?
Robert Isom -- President
So Hunter, thanks for that question because, look, this is something that I'm really proud of. Last year, as we built back, the entire economy, all industries had struggled with finding the right people, getting them in the right positions. But you know what, American, as we grew back, we really quickly remedied any issues that we had. And what we found is American is a very, very attractive place to work.
American Airlines sells itself in terms of attracting people to it. So whether it's the new flight attendant classes that are now graduating, whether it's the thousands of people that we're bringing on to work in our reservations and agent ranks, and those pilots and mechanics that we're bringing in. We, at American, get a chance to really choose those that get to be part of the team. And that's a great position to be in.
Over time, I think that we're going to have to do a lot of work to make sure that the supply of pilots into our regional carriers as strong as we need it to be. But you'll see us on the forefront of that as well.
Hunter Keay -- Wolfe Research -- Analyst
Thank you.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Hunter.
Operator
Our next question comes from David Vernon with Bernstein.
David Vernon -- Bernstein -- Analyst
Hey, good morning, everybody, and congratulations on to everybody on their next chapters here. Derek, first question for you on cash flow. If we're looking out at the full-year guidance you've laid out, capex of $2.6 billion, should we be expecting cash from operations to cover that? I'm just trying to get a sense for how secure we should be looking at the balance sheet and the liquidity you have on there. Are we going to be dipping into that from an operating standpoint or are we going to be able cover that based on what you see today?
Derek Kerr -- Chief Financial Officer
We'll definitely be able to cover that.
David Vernon -- Bernstein -- Analyst
Excellent. Short and sweet. I like it. Second question maybe for Robert or Derek, as you look at the capacity and the CASM-X guidance you've given for 2022 down five, up five, how do we think about -- in broad brushes, '22-'23, if we're up a little relative to '19 and is that just going to be kind of a one-for-one thing or is there more abated to that? Like how should we be thinking about the operating leverage coming back into the business as demand gets restored?
Derek Kerr -- Chief Financial Officer
Hey, good morning everybody and yeah. I think exactly what you're saying. I think we are underutilizing our fleet without a doubt at this point in time. I think as we add back our assets, Robert talked about pilot's reportability and making sure the throughput happens and get the throughput through.
So if we had -- and the 7-8, so you have two opportunities to grow this airline at a very cheap cost. I think the cost headwind, there's probably 3 or 4 points of cost headwind we have in place right now with underutilizing our assets and making sure that when those aircraft get back and we can use them as much as we can, we do not need to add costs. We do not need to add aircraft. So we could -- in today's world, we could fly the airline probably 5% more with the cost structure we have today.
So it's pretty close to 1:1. It might be a little bit sticky in there a little bit, but it's pretty darn close to 1:1. The first 5% that we could add back.
David Vernon -- Bernstein -- Analyst
All right. Thanks, guys.
Operator
Our next question comes from Dan McKenzie with Seaport Global.
Dan McKenzie -- Seaport Global Securities -- Analyst
Hey, good morning. Congrats to both Doug and Dan on what an amazing run it's been. It's really been a pleasure. A couple of questions here.
One housecleaning question. Just one follow-up on small- and medium-sized businesses. Vasu, what's factored into the first quarter revenue outlook with respect to the timing of international returning? Are you just sort of straight-lining current trends? Or did you factor in some kind of escalation in March potentially?
Robert Isom -- President
Hey, great question. And you're absolutely correct. We are straight-lining current trends with the low exception of our short-haul business.
Dan McKenzie -- Seaport Global Securities -- Analyst
OK.
Robert Isom -- President
It tends to peak in the March, April time period as North America goes on spring breaks and Easter vacations.
Dan McKenzie -- Seaport Global Securities -- Analyst
OK. Very good. Secondly, just following up on Helane's question on small- and medium-sized businesses. I'm wondering if you can elaborate on kind of their purchase behavior versus a typical leisure traveler.
Do they book further out, closer in? It's presumably higher-margin business. I'm just trying to get a sense of what that means. And I guess I didn't -- in the PowerPoint, I guess, or I didn't catch what that revenue from small- and medium-sized business was as a percent of 2019 revenue, and how you're thinking about that trending potentially here in 2022?
Vasu Raja -- Chief Revenue Officer
Sure. Let me answer those in a slightly different order. First, small business. As we ended December, what we call small- and mid-market business was 80% recovered.
Large corporate business, people who bought on big managed programs, was 40% recovered, ballpark. Interestingly, what that means for us is historically, if 40% of our revenues came from business, about 15 points of that were from large corporates and the balance were from small- and mid-market companies, due to the pandemic that's shifted a lot, where less than 10% comes from managed corporates. As we think about next year, we absolutely anticipate a rebound of business travel, but something where -- something a lot closer to 30 points of the 40 or so is coming from small- to mid-market, and managed corporates come down a little. This is something, which is certainly an opportunity that we look upon very favorably and may, in many ways, be unique to American Airlines because so much of that small business growth, to your question about the profile, does actually book in a very similar booking window as large corporate travel.
So it's a much shorter days to departure than what leisure is. But very critically, it's originating in markets that are in the center of the country, think Oklahoma City or Austin, San Antonio, places like that. It engages in trip behavior, which is very different than managed corporates. People are willing to go stay a Saturday night and fly on a lower-load factor flight.
But very importantly, it comes in at the same level as yield as our large corporate businesses, but a fraction of the cost of sales. The cost of sales looks a lot more like what leisure is. So we see this as a sign of real opportunity. And indeed, as we look out there, and if you think about things, we see that -- to Robert's comments earlier, the nature of this travel is starting to change.
But as we see small businesses traveling, there are more people traveling for blended business leisure purposes. More people willing to go by themselves into a premium fare product when a cheaper one is available. So we see a lot of opportunity as the world changes, and we're going to organize and position ourselves to execute on that.
Dan McKenzie -- Seaport Global Securities -- Analyst
That's terrific. Thanks, Vasu.
Operator
Our next question comes from Catherine O'Brien with Goldman Sachs.
Catherine O'Brien -- Goldman Sachs -- Analyst
Hey, good morning, everyone. I just want to echo my peer congratulations to Doug and Dan. It's really been a pleasure working with you the last, I guess, almost 12 years now. Question maybe just on your 2022 growth outlook for that 5%.
I understand that the uncertainty around the 787 just makes it more difficult. But can you share high level what you're thinking the breakout between domestic and international growth is at least on your current 70 assumption? And what's driving the decision on where to allocate that capacity?
Vasu Raja -- Chief Revenue Officer
Yes. This is Vasu. I can help with that. We are -- look, as we see it -- first, this is your first question.
We anticipate that with the 787, we will be a materially smaller international airline than what we would otherwise like to be operating something, which is probably, let's call it, 75% to 85% of the scale we had in 2019. But our short-haul network, domestic and the narrow-bodies we fly into Mexico, Caribbean, Latin America will probably be a lot closer to what 2019 is. But there's a couple of other important things to note there. Of course, first, we have a very conservative view of what happens with the 787s and did a pretty conservative view about how international demand, even recovers through the course of the year.
So a big mix of our international flying, and you don't already see it in published schedules, is oriented around markets where we can go drive a lot of the connectivity through -- whether it's Heathrow or other partner hubs, Doha, things like that that we might not have in times past. The other thing that's out there, too, is to an earlier comment I made. We have a lot more flexibility with the airline. And indeed, through the pandemic, we've come to realize it's much easier -- within a few points, we have a lot of flexibility in how we go and plan the airline.
And so we are consciously trying to build the airlines so that we could be really efficient in how we utilize our assets and make moves around the system. So that we can go fly the markets that customers demand most, even if it's relatively late in the booking curve. So while those are broad strokes of where capacity is, still, things may change. And realistically, they will change as demand comes back.
Catherine O'Brien -- Goldman Sachs -- Analyst
Got it. And then maybe one more for you again, Vasu. Just to dig into your short-term revenue outlook a bit more, I understand there's a lot of moving pieces, but your RASM performance versus '19 improved each quarter through 2021. But it looks like it's going to get worse in the first quarter per your guidance.
Of course, you called out impact of omicron. But can you just help us think through the drivers of that a bit more? And anything we should know about cargo or other revenue trends? Or is that really just your conservative view, as you noted on loads and pricing on the passenger side? Thanks for the time.
Vasu Raja -- Chief Revenue Officer
Look, it's very much the conservative view. And look, having gone through multiple waves of the pandemic, one of the things that we've come to more reliably build forecast on is that the amount of time it takes from the cases peaking to demand recovery. And that's shortened through every wave. In the Delta wave, it was about a seven-week spread between case peaking to demand bottoming out and growing again.
So a lot of our outlook is based on a slightly shortened version of that occurring. But indeed, what we've been seeing as cases a peak, wherever they peaked in the world, Israel, U.K., more recently in domestic, it's not a seven-week span. It's not a four-week span. It's something a lot more like a seven-day span, so it's still early to tell.
As I mentioned earlier, 85% of our capacity is in domestic. And if you presume, last week was the peak of cases across the country. We've been encouraged by the last few days of bookings, but a lot of our first quarter forecast is based on the conservatism that we've had for having seen prior waves before. And indeed, we anticipate that January and February will remain challenged because historically, they are seasonally some of the weakest month in our business.
So we'll see, but we remain encouraged for how strong demand comes back, and we are certainly reserving every seat because there's a customer that wants to travel and want to do soon.
Doug Parker -- Chairman and Chief Executive Officer
Let's go and move on to the next question.
Operator
Our next question comes from Andrew Didora with Bank of America.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Hi. Good morning, everyone. Doug, I just want to extend my congratulations as well, and that the same goes to Dan. It's been a pleasure working with both of you over the years.
Just first question around costs, I guess, Derek, does the 5% CASM guide include anything from current labor negotiations? And then just secondly on costs. When you factor in kind of new labor deals, all the kind of the inflation, and the economy that you were discussing earlier, even as capacity comes back, do you think that getting back to prepandemic CASM-X is a realistic expectation over the next few years?
Doug Parker -- Chairman and Chief Executive Officer
Yes. It does not include -- I mean, it includes year-over-year deals that were already done. So any deal that is already done is built in. As Robert talked about, we got some real -- we got some deals done in the past few weeks that weren't huge impact on the cost, but really good opportunity to get those deals done and get them done quick with some of our groups.
But it does not include any new contract negotiations that aren't complete today. So that's number one. Number two, I do think -- we had expected 2022 to get back to 2019 levels. But with the variant and us pulling down the flying from 78s not being there, and also demand not quite being there, we will not get to the 2019 levels.
As we get to 2023, it's definitely possible. It depends on the growth of the airline and other things that we do. If we don't get there, we'll get very close, put it that way. So I think in 2023, we've kind of -- I've always talked about being pretty flat in 2022.
That's not happening really driven by thoughtfully utilizing our assets. As we fully utilize those assets, and we plan in 2023, I think we can get to that level, we're pretty close. We might not get all the way down to 2019, but we'll get pretty close.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Got it. That's helpful. And then just lastly for me for Robert. I guess as you assume the CEO role here, what do you think American needs to do better in, I'll call it, this new world post-pandemic to help drive American's margins back toward pre-pandemic levels? Thanks.
Robert Isom -- President
Yes. Thanks, Andrew. Look, we need to put all the pieces together, all the things that we've been working on over the last three years, and then bring them at that and execute very well. Running reliably for this airline, I know, pays off in terms of unit revenues or price up in terms of unit cost.
And it definitely pays off in terms of customer satisfaction. Again, American has invested in all the right places, when we talk about the aircraft and airports and lounges and whatnot. And that's money that has been spent. It's in place.
And now it's time to bring it back and put it into action. And so we do that. I'm quite confident. As Derek has said, I'm quite confident in all aspects American is poised to outperform.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Andrew.
Operator
That concludes the analysts' Q&A. We will now take questions from the media. [Operator instructions] Our first question comes from Alison Sider with Wall Street Journal.
Alison Sider -- The Wall Street Journal -- Air Travel Reporter
Hi. I just was wondering if you could talk a little bit more about your expectations for 787 deliveries. And kind of how confident you are or anything that you're hearing from Boeing about what they might expect in terms of the schedule on that?
Derek Kerr -- Chief Financial Officer
Yeah. Ali, this is Derek. We're still on the same schedule. Mid-April is what we're talking about for our first delivery.
That has been locked in on those dates for probably the last couple of months, and we're still planning on that happening. So we haven't got any different information in the past couple of months, where I think we're still on target for those and that we would take all 13 throughout the year. But we have been conservatively when we put four in the schedule for the summer. We had originally thought we could get all 13 in the summer, but we pulled that down to four.
And we've had really good discussions with Boeing. And I think they're on track as of today to hit that mid-April time frame. And we're hopeful that that's still the case and that nothing else comes up.
Alison Sider -- The Wall Street Journal -- Air Travel Reporter
Got it. And is this something -- is this a situation where you would seek any kind of compensation from Boeing for the delays? Or if there was a further delay, is that something you would discuss?
Derek Kerr -- Chief Financial Officer
Yes. Yes, we're in discussions with Boeing where we're at. There are delayed penalties that are paid and Boeing is paying the delayed penalties, and everything is happening as we speak today. If there are further delays, and it really does impact the summer much more than what we think it is, then -- we've had good discussions with Boeing that they will compensate us for the losses that we've had for the delay of those aircraft.
Alison Sider -- The Wall Street Journal -- Air Travel Reporter
OK. Thank you.
Operator
Our next question comes from David Koenig with the Associated Press.
David Koenig -- The Associated Press -- Business Writer
Thanks. Hi, Doug. Well, congratulations as well. I hope you have a great retirement.
And you've mentioned 5G in this week's agreement with Verizon and AT&T. I wondered how long -- do you get a signal of how long they're willing to delay their full rollout? And why did this have to come down to an 11th hour crisis like this?
Doug Parker -- Chairman and Chief Executive Officer
Yeah. Thanks, David. We get the sense that they're -- again, the right people are talking to each other, and everyone agrees that it doesn't make sense to deploy any more 5G until we're certain that it's not going to have a disruptive effect on airlines. So again, that's where we stand at this point.
I hope that's where we'll stay. I feel really good about this role will be because, again, the right people are talking to each other. Why it took this long to the right people to talk to each other? I don't know. We can do a post audit later.
I'm not quite certain. Frankly, we are the end user of this dysfunction. It got -- we're the ones affected. Our customers are the ones affected.
And as it was getting ready to be deployed, and we were, therefore, being told what that was going to mean to our operations, we screamed as loud as we could. And fortunately, people listened. So that's where we are today, and what should have happened prior to this is happening now. The technical experts that are working on it tell us it's really not that complicated once they all are able to share information and work on it.
So they seem encouraged that we'll be able to address this in a way that allows for full deployment of 5G, including near airports. I mean, again, with lower levels or whatever is required and also doesn't allow for -- it doesn't require any disruption of air travel. So that's where we are. I don't expect until we get to the point that everyone is really comfortable that that you'll see anything turned on near airports because no one wants to go through this again.
David Koenig -- The Associated Press -- Business Writer
So are the airlines talking directly to the telecoms? Or are you going through the regulators?
Doug Parker -- Chairman and Chief Executive Officer
Look, it's much more about the manufacturers, our OEM talking directly to the telecoms, which is happening. So the Boeings, the Airbuses, the Palaces, Honeywell, Collin, etc., talking to their counterparts at AT&T and Verizon, obviously, with FAA involvement. But it's -- what needed to happen is now happening is you needed those organizations, those companies able to talk to each other and share information. Because when we do that, we can get results because people are willing to work together.
We hadn't have that, instead we had government agencies talking to each other, and that's -- that can be less productive.
David Koenig -- The Associated Press -- Business Writer
All right. Thank you.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, David.
Operator
Our next question comes from Mary Schlangenstein with Bloomberg News.
Mary Schlangenstein -- Bloomberg News -- Airlines Reporter
Good morning. Congratulations, Doug and Robert, both. I wanted to ask you if you could talk a little bit about how much of a delay you see the omicron flare-up having on the return to more near-normal travel? One of your competitors said it pushes it out 60 days. But I wonder how that ties in with Vasu's comments about the shortening time between a peak and a bottoming out and then a recovery in demand?
Robert Isom -- President
Hey, Mary. We don't see things a lot different. Look, I think that we were recovering nicely after the Delta variant as we took a look into the Thanksgiving time frame. But then omicron hit, demand dropped off fairly rapidly.
And yes, demand is recovering faster than it had in previous ways. But I think it -- we don't view demand as anything more than delayed. We don't think it's diminished. And if you're taking a look in kind of the one or the two-, three-month time frame of how demand -- the rebound is pushed out, I think that that's the appropriate time frame.
And for us, as Vasu has mentioned, I know Doug earlier said as well, look, as we take a look out in February, especially as we get to current period, we see a lot of demand and a lot of strength in the bookings that we're seeing already. So I do think that as omicron [inaudible], we're going to come out strong.
Mary Schlangenstein -- Bloomberg News -- Airlines Reporter
Thank you. And if I could quickly ask, in discussing increased wage levels going forward and as you try to hire more people, is American contemplating, at all, potentially other unilateral pay increase for unionized workers, either any particular groups or maybe on a more broader basis?
Robert Isom -- President
And Mary, as I mentioned earlier in the call, American has a very attractive brand. We have incredibly generous compensation benefits programs. We attract people right now with the positions that -- and the compensation structure that we have. In various pockets throughout the country, various positions like in regional carriers, we take the appropriate action that we have to.
But I feel really confident in where we are today and what we're contemplating in being able to track the right people in the right numbers and getting in front of it, too.
Mary Schlangenstein -- Bloomberg News -- Airlines Reporter
OK. Thank you very much.
Operator
Our next question comes from Leslie Josephs with CNBC.
Leslie Josephs -- CNBC -- Airline Reporter
Hi. Good morning, everyone. I was just wondering what you guys think the impact is going to be of the multiple labor negotiations you have going on now. You've seen complaints about the issues with quality of life, the schedule changes.
So curious if that changes how you think about scheduling the airline going forward? And what sort of like what Mary was saying with pay increases in 2022 and beyond, how do you see that going?
Robert Isom -- President
Leslie, thanks for the question. Here's the one thing I know is that everybody at American is joined in the goal and objective of running a really reliable airline, one that returns to profitability as soon as possible. And so I know that our labor leaders, our team members, they want a profitable and successful American Airlines as we go forward. So as we take a look into any negotiations, I know that that's a [inaudible] that we're all taking.
It's got -- it has to be a mindset of taking care of our team members certainly, but also making sure we take care of the company and our shareholders. And that's a balance that we've always been able to maintain and will do going forward. So as I think -- I look going forward, as I said before, I know that we can attract team members to American Airlines. And there's ways we can get better.
And by better, it means running an airline that is more reliable, too. And I know everybody is joined in, in that goal.
Leslie Josephs -- CNBC -- Airline Reporter
OK. Thanks. And if I could just ask one follow-up on the 787. Derek, did you say that Boeing is definitely paying compensation now, and they could pay even more if the summer schedule is affected?
Derek Kerr -- Chief Financial Officer
The first answer is yes. I mean, there's delayed penalties that are always in all of these contracts. And Boeing is paying the delayed penalties for each one of these contracts, 320s aircraft. And then the rest of it will be in negotiation as we talk to them.
I mean, hopefully, we don't have to do anything. And hopefully, they hit the schedule that they have, and we don't have any disruption as we go forward. But we've been told from the highest level of the Boeing team that if there is compensation needed to come to the airline, that they're fully abreast to help us and to overcome the cost that the 787 has caused us over these last -- the delay in those aircraft has cost us over the last few years. And that's a negotiation we'll have with the Boeing team.
Leslie Josephs -- CNBC -- Airline Reporter
In addition to what they're already paying for the existing delay?
Derek Kerr -- Chief Financial Officer
Correct.
Leslie Josephs -- CNBC -- Airline Reporter
Got it. Thank you.
Operator
Our next question comes from David Slotnick with TPG.
David Slotnick -- TPG -- Senior Aviation Business Reporter
Good morning. And congratulations, Doug. Robert, during your prepared remarks, you mentioned something about a blurring of line between business and leisure travel. I was wondering if you could elaborate on that a bit? Does it translate to higher yields, more premium cabin sales, etc.?
Robert Isom -- President
Vasu is going to take this. Go ahead.
Vasu Raja -- Chief Revenue Officer
David, Greg here from you. But yes, we plan to be a really encouraging trend. We do see a blurring of lines where the trip patterns are changing. Thursday, which is still our biggest business day of the week, is also becoming one of our biggest leisure days of the week.
We're having more people who buy business style, fare products, travel as if it's a business trip, but they're going to places, major destinations, Fort Walton Beach, things like that. So that behavior is starting to change. And we can trace the things where people work Fridays remotely or can spend a week or two at a time, working from some place that is not where they live. So all that's creating a lot more variation of how we've historically thought about business and leisure, but in that is a lot of opportunity.
But clearly, as we go through the pandemic, customers have a lot more flexibility with their time. There's a lot more savings that are out there, and travel has always been one of the most aspirational things for U.S. consumers. So we see a lot of that, and we benefit a lot -- from a lot of that in our short-haul network the most.
Our premium cabin sales have been the most robust in places like the Caribbean and leisure destinations in the U.S. more so than they've been and more prototypical business destinations like the Transcon markets or London Heathrow. So we're really encouraged by that trend. We think that it's going to lead to a lot of things.
That's why we have done a lot of things where we are increasingly rewarding travel, which is not just for how frequently people fly but for simply spending on our credit cards or spending all across the airline. And from my earlier comments, we think there's even more to do, which can be really great for our customers and, of course, really great to the airline, too.
David Slotnick -- TPG -- Senior Aviation Business Reporter
Thanks, Vasu. And just as a follow-up. Do you see the impact of inflation leading to anything involved in higher ticket fares, higher prices for customers?
Vasu Raja -- Chief Revenue Officer
Look, it remains to be seen. I mean, this industry has a long history with inflation where it hasn't always bled so cleanly into fares. So we'll see, and we don't make any future commentary about pricing. But it's early to tell and how -- whether this level of inflation stays or not, it's even early to go and guess at that, too.
David Slotnick -- TPG -- Senior Aviation Business Reporter
Great. Thank you very much.
Doug Parker -- Chairman and Chief Executive Officer
Thank you, David.
Operator
Our next question comes from Dawn Gilbertson with USA Today.
Doug Parker -- Chairman and Chief Executive Officer
Hi, Dawn.
Dawn Gilbertson -- USA Today -- Consumer Travel Reporter
Hi. I got to say, Doug, I'm really jealous. This is your last call, but I'm very happy for you and your family.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Dawn.
Dawn Gilbertson -- USA Today -- Consumer Travel Reporter
I have a couple of questions, first, for Vasu, following up on Mary's question about kind of the lag in bookings because of omicron, spring break and summer. I'm wondering whether you guys are considering extending your -- the expiration date for tickets and for current travel credits? And my second question is probably for Robert, but maybe not. Your call times, like a lot of airlines still are pretty high, as recently as Friday, it was four hours plus. Can you give any specifics on what you're doing to address this persistent problem and what's behind it?
Robert Isom -- President
It's great to hear from you, Dawn. I'll start and then others can add in, too. So first of all, we are assessing different options for what we call stored value, what we do with people who have COVID-related credits that are out there. We've been really encouraged by what we've seen.
We're the only airline that allows customers to do name changes and reassign them in. Because of that, we've seen a lot of consumers go and take advantage of that flexibility. And so that, combined with the fact that we've flown with bigger airline, has led us to, at least, believe that we may be seeing is probably a little bit different than others. But we're assessing what our options are, and we'll have more in the not distant future.
Vasu Raja -- Chief Revenue Officer
Dawn, and Maya may want to help me out with this. But hey, with reservations right now, with so many changes that are going on in the environment, whether it's travel restrictions, quarantine requirements, schedule changes. You name it. The level of calls that we're getting right now is really unprecedented, and for good reasons.
And what we're trying to do with -- to make sure is that not only do we have all of the resources from a reservations perspective available. But we're also investing in things like chat and then callback functions as well. And one of the things I'm really proud of is while we have had some extended callback times as of late, I'm really proud of the way we've performed throughout the pandemic. American has consistently performed better than a lot of our competitors.
And as we come out of this huge call volume spike, and I expect us to get back to really reasonable and satisfactory times. Maya, do you want to add anything else?
Maya Leibman -- Executive Vice President and Chief Information Officer
Yes. Just following up on some of the technologies that we've implemented in res around a virtual assistant, which is sort of artificial intelligence that can respond to some of the easier questions without the customer having to interact with an agent. And they can -- that's a win-win because the customer can really do that asynchronously and get their answer in short order, that, then this is on to chat for more difficult questions. Our res agents are now trained.
We have hundreds now trained to be able to handle a chat. And again, this allows them to handle more than one interaction at a time, which is better for our customers and more productive for our agents. And then but like Robert said, that really helps defray some of the impact to reservations. But at the end of the day, the nature of the questions that we're getting are so complex, where people are really wanting to fully understand what are the COVID restrictions in traveling here? What kind of vaccination status do I have to have? How do I use this store value combined with this form of payment? And in those cases, we still need our fabulous res agents to be able to handle those.
Dawn Gilbertson -- USA Today -- Consumer Travel Reporter
Thank you very much.
Doug Parker -- Chairman and Chief Executive Officer
Hey, Dawn, before you sign off, with everyone listening in, you would have absolutely been in my prepared remarks whereas it's the peers still on the line. But look, of all the -- for those who don't know, Dawn has covered airlines here's on our public when we started America West. So [inaudible] when we were at America West, really. Of all the articles that I have written to a level that I've chosen to actually hang on to you, Dawn, more than we have a Dawn Gilbertson by the line than anybody else.
So thank you very much. We really, really appreciate it.
Dawn Gilbertson -- USA Today -- Consumer Travel Reporter
Thank you, Doug. It's been a pleasure.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Dawn. Yes, thank you.
Operator
That concludes today's question-and-answer session. I'd like to turn the call back to management for closing remarks.
Doug Parker -- Chairman and Chief Executive Officer
I think we're done. Thanks, all, very much. Really appreciate it. I really appreciate it.
I've enjoyed this immensely. This is maybe my favorite of the 107. So thank you all very much. Congratulations to Robert.
Congratulations to Dan, and we'll be in touch. Thanks again.
Operator
[Operator signoff]
Duration: 83 minutes
Call participants:
Dan Cravens -- Moderator, Managing Director of Investor Relations
Doug Parker -- Chairman and Chief Executive Officer
Robert Isom -- President
Derek Kerr -- Chief Financial Officer
Jamie Baker -- J.P. Morgan -- Analyst
Vasu Raja -- Chief Revenue Officer
Mike Linenberg -- Deutsche Bank -- Analyst
Helane Becker -- Cowen and Company -- Analyst
Duane Pfennigwerth -- Evercore ISI -- Analyst
Hunter Keay -- Wolfe Research -- Analyst
David Vernon -- Bernstein -- Analyst
Dan McKenzie -- Seaport Global Securities -- Analyst
Catherine O'Brien -- Goldman Sachs -- Analyst
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Alison Sider -- The Wall Street Journal -- Air Travel Reporter
David Koenig -- The Associated Press -- Business Writer
Mary Schlangenstein -- Bloomberg News -- Airlines Reporter
Leslie Josephs -- CNBC -- Airline Reporter
David Slotnick -- TPG -- Senior Aviation Business Reporter
Dawn Gilbertson -- USA Today -- Consumer Travel Reporter
Maya Leibman -- Executive Vice President and Chief Information Officer
More AAL analysis
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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) Q4 2021 Earnings Call Jan 20, 2022, 8:30 a.m. Operator [Operator signoff] Duration: 83 minutes Call participants: Dan Cravens -- Moderator, Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Chief Revenue Officer Mike Linenberg -- Deutsche Bank -- Analyst Helane Becker -- Cowen and Company -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Hunter Keay -- Wolfe Research -- Analyst David Vernon -- Bernstein -- Analyst Dan McKenzie -- Seaport Global Securities -- Analyst Catherine O'Brien -- Goldman Sachs -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- The Wall Street Journal -- Air Travel Reporter David Koenig -- The Associated Press -- Business Writer Mary Schlangenstein -- Bloomberg News -- Airlines Reporter Leslie Josephs -- CNBC -- Airline Reporter David Slotnick -- TPG -- Senior Aviation Business Reporter Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Maya Leibman -- Executive Vice President and Chief Information Officer More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Over the past few years, our airline and our industry have gone through a period of transformative change that American has made good use of that time, especially in regard to renewing our fleet, facilities, and network, and making the company as efficient as possible.
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Operator [Operator signoff] Duration: 83 minutes Call participants: Dan Cravens -- Moderator, Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Chief Revenue Officer Mike Linenberg -- Deutsche Bank -- Analyst Helane Becker -- Cowen and Company -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Hunter Keay -- Wolfe Research -- Analyst David Vernon -- Bernstein -- Analyst Dan McKenzie -- Seaport Global Securities -- Analyst Catherine O'Brien -- Goldman Sachs -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- The Wall Street Journal -- Air Travel Reporter David Koenig -- The Associated Press -- Business Writer Mary Schlangenstein -- Bloomberg News -- Airlines Reporter Leslie Josephs -- CNBC -- Airline Reporter David Slotnick -- TPG -- Senior Aviation Business Reporter Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Maya Leibman -- Executive Vice President and Chief Information Officer More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q4 2021 Earnings Call Jan 20, 2022, 8:30 a.m. Dan Cravens -- Moderator, Managing Director of Investor Relations Thank you, Liz, and good morning, everyone, and welcome to the American Airlines Group fourth quarter 2021earnings conference call On the call this morning, we have Doug Parker, chairman and CEO; Robert Isom, president and incoming CEO; and Derek Kerr, chief financial officer.
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Operator [Operator signoff] Duration: 83 minutes Call participants: Dan Cravens -- Moderator, Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Chief Revenue Officer Mike Linenberg -- Deutsche Bank -- Analyst Helane Becker -- Cowen and Company -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Hunter Keay -- Wolfe Research -- Analyst David Vernon -- Bernstein -- Analyst Dan McKenzie -- Seaport Global Securities -- Analyst Catherine O'Brien -- Goldman Sachs -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- The Wall Street Journal -- Air Travel Reporter David Koenig -- The Associated Press -- Business Writer Mary Schlangenstein -- Bloomberg News -- Airlines Reporter Leslie Josephs -- CNBC -- Airline Reporter David Slotnick -- TPG -- Senior Aviation Business Reporter Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Maya Leibman -- Executive Vice President and Chief Information Officer More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q4 2021 Earnings Call Jan 20, 2022, 8:30 a.m. Operator Good morning, and welcome to the American Airlines Group fourth quarter 2021earnings conference call Today's call is being recorded.
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Operator [Operator signoff] Duration: 83 minutes Call participants: Dan Cravens -- Moderator, Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Chief Revenue Officer Mike Linenberg -- Deutsche Bank -- Analyst Helane Becker -- Cowen and Company -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Hunter Keay -- Wolfe Research -- Analyst David Vernon -- Bernstein -- Analyst Dan McKenzie -- Seaport Global Securities -- Analyst Catherine O'Brien -- Goldman Sachs -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- The Wall Street Journal -- Air Travel Reporter David Koenig -- The Associated Press -- Business Writer Mary Schlangenstein -- Bloomberg News -- Airlines Reporter Leslie Josephs -- CNBC -- Airline Reporter David Slotnick -- TPG -- Senior Aviation Business Reporter Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Maya Leibman -- Executive Vice President and Chief Information Officer More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q4 2021 Earnings Call Jan 20, 2022, 8:30 a.m. So let's get to the business in the quarter.
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2022-01-20 00:00:00 UTC
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U.S. FAA approves 78% of planes for low-visibility landings near 5G airports
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-approves-78-of-planes-for-low-visibility-landings-near-5g-airports
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By David Shepardson
WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Aviation Administration on Thursday issued new approvals for additional altimeters that allow about 78% of the U.S. commercial air fleet to perform low-visibility landings at airports where 5G C-band wireless is deployed.
Some flights were being affected at San Francisco because of low visibility, with some diverted to other airports or canceled, airlines said.
Airplane models with one of 13 cleared altimeters include all Boeing BA.N 717, 737, 747, 757, 767, 777, 787 and MD-10/-11 models; all Airbus AIR.PA A300, A310, A319, A320, A330, A340, A350 and A380 models; and some Embraer EMBR3.SA 170 and 190 regional jets. The FAA said it anticipated "some altimeters will be too susceptible to 5G interference" and will be prohibited from performing low-visibility landings near 5G deployments.
AT&T T.N and Verizon Communications VZ.N agreed late Tuesday to delay switching on new telecom towers near key airports even as they turned on the new 5G C-Band service.
Radio altimeters are used to give data on height above grounds for bad-weather landings.
President Joe Biden on Wednesday said he had "pushed as hard I can to have the 5G folks hold up and abide by what was being requested by the airlines."
Verizon will temporarily not turn on about 500 towers near airports, sources told Reuters, or less than 10% of their planned deployment, while the carriers and the administration work on a permanent solution.
(Reporting by David Shepardson Editing by Chizu Nomiyama and Jonathan Oatis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Aviation Administration on Thursday issued new approvals for additional altimeters that allow about 78% of the U.S. commercial air fleet to perform low-visibility landings at airports where 5G C-band wireless is deployed. AT&T T.N and Verizon Communications VZ.N agreed late Tuesday to delay switching on new telecom towers near key airports even as they turned on the new 5G C-Band service. Verizon will temporarily not turn on about 500 towers near airports, sources told Reuters, or less than 10% of their planned deployment, while the carriers and the administration work on a permanent solution.
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By David Shepardson WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Aviation Administration on Thursday issued new approvals for additional altimeters that allow about 78% of the U.S. commercial air fleet to perform low-visibility landings at airports where 5G C-band wireless is deployed. The FAA said it anticipated "some altimeters will be too susceptible to 5G interference" and will be prohibited from performing low-visibility landings near 5G deployments. (Reporting by David Shepardson Editing by Chizu Nomiyama and Jonathan Oatis) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Aviation Administration on Thursday issued new approvals for additional altimeters that allow about 78% of the U.S. commercial air fleet to perform low-visibility landings at airports where 5G C-band wireless is deployed. Airplane models with one of 13 cleared altimeters include all Boeing BA.N 717, 737, 747, 757, 767, 777, 787 and MD-10/-11 models; all Airbus AIR.PA A300, A310, A319, A320, A330, A340, A350 and A380 models; and some Embraer EMBR3.SA 170 and 190 regional jets. Verizon will temporarily not turn on about 500 towers near airports, sources told Reuters, or less than 10% of their planned deployment, while the carriers and the administration work on a permanent solution.
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By David Shepardson WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Aviation Administration on Thursday issued new approvals for additional altimeters that allow about 78% of the U.S. commercial air fleet to perform low-visibility landings at airports where 5G C-band wireless is deployed. Some flights were being affected at San Francisco because of low visibility, with some diverted to other airports or canceled, airlines said. Verizon will temporarily not turn on about 500 towers near airports, sources told Reuters, or less than 10% of their planned deployment, while the carriers and the administration work on a permanent solution.
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3843.0
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2022-01-20 00:00:00 UTC
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American Airlines (AAL) Posts Narrower-Than-Expected Q4 Loss
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-posts-narrower-than-expected-q4-loss
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nan
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nan
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American Airlines’ AAL fourth-quarter 2021 loss (excluding 2 cents from non-recurring items) of $1.42 cents per share compared favorably with the Zacks Consensus Estimate of a loss of $1.51. Quarterly loss per share was also narrower than the year-ago loss of $3.86.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Operating revenues of $9,427 million skyrocketed 134.1% year over year and also surpassed the Zacks Consensus Estimate of $9,320.1 million. This massive year-over-year jump reflects improving air-travel demand. Revenues increased 5.1%, sequentially, despite omicron-related woes.
Passenger revenues, which accounted for the bulk of the top line (88.9%), increased to $8,382 million from a mere $3,190 million a year ago, driven by strong demand in the year-end holiday period. Cargo revenues improved 19.6% to $341 million, driven by the carrier’s focus on its cargo unit in the coronavirus era. Cargo yield per ton mile rose 11.7% in the fourth quarter of 2021. Other revenues climbed 27.7%.
Total revenue per available seat mile (TRASM: a key measure of unit revenues) increased to 15.43 cents from 12.12 cents a year ago. Passenger revenue per available seat miles (PRASM) surged 42.8% to 13.72 cents in the period. Consolidated yield increased 14.3%.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) rose to 48,982 million in the reported quarter from a mere 21,303 million a year ago. To cater to this buoyant demand, capacity (measured in average seat miles) expanded to 61,105 million from 33,219 million. Consolidated load factor (percentage of seats filled by passengers) increased 16.1 percentage points to 80.2% in the final quarter of 2021. Improvement on the international front was also encouraging with load factor increasing 20 percentage points year over year to 69.6%.
Total operating costs (on a reported basis) escalated 56% to $10,207 million with aircraft fuel expenses and related taxes skyrocketing to $2,196 million from $698 million a year ago. Average fuel price per gallon (including related taxes) climbed to $2.36 from $1.27 a year ago. However, consolidated operating costs per available seat mile (CASM: excluding fuel and special items) declined 25.3% to 13.14 cents. Fuel gallon consumption increased 68.8% to $931 million in fourth-quarter 2021. American Airlines, currently carrying a Zacks Rank #3 (Hold), exited the quarter with $15.8 billion of total available liquidity.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Airlines expects system capacity for the March quarter to decline in the 8-10% range from the figure reported in first-quarter 2019. Total revenues in the first quarter of 2022 are anticipated to decline in the 20-22% band from the level recorded in first-quarter 2019. Fuel cost per gallon in first-quarter 2022 is expected in the $2.41-$2.46 band. Fuel gallon consumption is expected to be $934 million. CASM excluding fuel and special items is expected to increase in the 8-10% range in the first quarter of 2022 from the number reported in first-quarter 2019.
American Airlines expects 2022 capacity to decline 5% from 2019 levels. CASM excluding fuel and special items is expected to increase roughly 5% from 2019 actuals. AAL expects capex in 2022 to be $2.6 billion ($800 million of non-aircraft capex and $1.8 billion of net aircraft capex).
American Airlines is the third S&P 500 member of the Zacks Airline industry to have released its fourth-quarter 2021 numbers.
On Jan 13, Delta Air Lines DAL kicked off the fourth-quarter 2021 earnings season for the airline stocks on a bright note. DAL reported better-than-expected earnings per share and revenues for the same period. Upbeat air traffic aided results during the holidays.
Due to the omicron-led operational disruptions, Delta expects to incur loss in first-quarter 2022. DAL management anticipates total March-quarter revenues to recover to 72-76% of the first-quarter 2019 actuals, induced by the omicron impact.
On Jan 19, United Airlines UAL posted a fourth-quarter loss (excluding 39 cents from non-recurring items) of $1.60 per share, narrower than the Zacks Consensus Estimate of a loss of $2.23. Operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. Both the top and the bottom line improved significantly year over year, courtesy of strong holiday travel demand.
Due to omicron-led turbulence, United Airlines expects first-quarter 2022 capacity to decline 16-18% from the first-quarter 2019 level. UAL estimates total operating revenues to drop 20-25% in the March quarter from the comparable period’s level in 2019.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
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United Airlines Holdings Inc (UAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines’ AAL fourth-quarter 2021 loss (excluding 2 cents from non-recurring items) of $1.42 cents per share compared favorably with the Zacks Consensus Estimate of a loss of $1.51. AAL expects capex in 2022 to be $2.6 billion ($800 million of non-aircraft capex and $1.8 billion of net aircraft capex). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines’ AAL fourth-quarter 2021 loss (excluding 2 cents from non-recurring items) of $1.42 cents per share compared favorably with the Zacks Consensus Estimate of a loss of $1.51. AAL expects capex in 2022 to be $2.6 billion ($800 million of non-aircraft capex and $1.8 billion of net aircraft capex). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines’ AAL fourth-quarter 2021 loss (excluding 2 cents from non-recurring items) of $1.42 cents per share compared favorably with the Zacks Consensus Estimate of a loss of $1.51. AAL expects capex in 2022 to be $2.6 billion ($800 million of non-aircraft capex and $1.8 billion of net aircraft capex). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines’ AAL fourth-quarter 2021 loss (excluding 2 cents from non-recurring items) of $1.42 cents per share compared favorably with the Zacks Consensus Estimate of a loss of $1.51. AAL expects capex in 2022 to be $2.6 billion ($800 million of non-aircraft capex and $1.8 billion of net aircraft capex). American Airlines Group Inc. (AAL): Free Stock Analysis Report
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4e6af606-f91e-471c-b4b6-a9eb589d9175
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3844.0
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2022-01-20 00:00:00 UTC
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U.S. FAA approves 78% of planes for low-visibility landings near 5G
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-approves-78-of-planes-for-low-visibility-landings-near-5g
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nan
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nan
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WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Aviation Administration on Thursday issued new approvals for additional altimeters that allow about 78% of the U.S. commercial air fleet to perform low-visibility landings at airports where 5G C-band wireless is deployed.
Airplane models with one of 13 cleared altimeters include all Boeing BA.N 717, 737, 747, 757, 767, 777, 787, MD-10/-11; all Airbus AIR.PA A300, A310, A319, A320, A330, A340, A350 and A380 models; and some Embraer EMBR3.SA 170 and 190 regional jets. The FAA said it anticipated "some altimeters will be too susceptible to 5G interference" and will be prohibited from performing low-visibility landings near 5G deployments.
(Reporting by David Shepardson Editing by Chizu Nomiyama)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Aviation Administration on Thursday issued new approvals for additional altimeters that allow about 78% of the U.S. commercial air fleet to perform low-visibility landings at airports where 5G C-band wireless is deployed. The FAA said it anticipated "some altimeters will be too susceptible to 5G interference" and will be prohibited from performing low-visibility landings near 5G deployments. (Reporting by David Shepardson Editing by Chizu Nomiyama) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Aviation Administration on Thursday issued new approvals for additional altimeters that allow about 78% of the U.S. commercial air fleet to perform low-visibility landings at airports where 5G C-band wireless is deployed. The FAA said it anticipated "some altimeters will be too susceptible to 5G interference" and will be prohibited from performing low-visibility landings near 5G deployments. (Reporting by David Shepardson Editing by Chizu Nomiyama) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Aviation Administration on Thursday issued new approvals for additional altimeters that allow about 78% of the U.S. commercial air fleet to perform low-visibility landings at airports where 5G C-band wireless is deployed. Airplane models with one of 13 cleared altimeters include all Boeing BA.N 717, 737, 747, 757, 767, 777, 787, MD-10/-11; all Airbus AIR.PA A300, A310, A319, A320, A330, A340, A350 and A380 models; and some Embraer EMBR3.SA 170 and 190 regional jets. (Reporting by David Shepardson Editing by Chizu Nomiyama) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Aviation Administration on Thursday issued new approvals for additional altimeters that allow about 78% of the U.S. commercial air fleet to perform low-visibility landings at airports where 5G C-band wireless is deployed. Airplane models with one of 13 cleared altimeters include all Boeing BA.N 717, 737, 747, 757, 767, 777, 787, MD-10/-11; all Airbus AIR.PA A300, A310, A319, A320, A330, A340, A350 and A380 models; and some Embraer EMBR3.SA 170 and 190 regional jets. The FAA said it anticipated "some altimeters will be too susceptible to 5G interference" and will be prohibited from performing low-visibility landings near 5G deployments.
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251b3618-35e1-4a20-8486-7232f5e518e3
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3845.0
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2022-01-20 00:00:00 UTC
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Airline Stocks Alert: Why Are UAL, AAL Stocks Dipping Today?
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AAL
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https://www.nasdaq.com/articles/airline-stocks-alert%3A-why-are-ual-aal-stocks-dipping-today
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airline stocks are in focus today as 5G road bumps and lingering omicron concerns continue to hamper the industry. Both American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) reported fourth-quarter 2021 earnings recently, and the results have investors abuzz.
Source: EQRoy / Shutterstock.com
What do you need to know about these high-flyers?
Both American and United beat estimates in their quarterly reports this week but provided advanced warning of Q1 2022. American reported losing $1.42 a share, narrowly beating its $1.46 forecasts. On the other hand, United announced a $1.60 loss per share, strongly surpassing its estimated $2.09 per share loss. United has stated that despite consistently growing demand for flights, this quarter will likely only see capacity around 83% of 2019 levels. Staffing was a stated concern, in addition to rising fuel and safety costs.
“The United team has been fighting through unprecedented obstacles to, once again, overcome the new and daunting challenges that COVID-19 is bringing to aviation. While Omicron is impacting near-term demand, we remain optimistic about the spring and excited about the summer and beyond.”
Airlines are in a complicated position at this point in time. While signs of light exist, there remain a plethora of concerns able to bottleneck the rebounding businesses.
Investors Continue to Express Near-Term Doubt in Airline Stocks
The past five days have seen a progressive decline in both UAL and AAL stocks. AAL has fallen from $19.60 earlier this month to its current $17.39 level. UAL went from $48.79 to $44.05 per share. This week’s news spurred a lukewarm response from investors, as United and American are both down slightly so far today.
American has stated it expects Q1 2022 revenue to be roughly 21% lower than the first quarter of 2019. Similarly, United is predicting between 20% and 25% lower revenue than its pre-pandemic equivalent.
This comes in addition to conflicts between 5G network providers and the aviation industry, as 5G towers impacts aviation communications equipment. On Tuesday, CEOs from 10 airlines penned a letter to President Joe Biden’s administration requesting a delayed rollout of certain 5G towers, estimating roughly 1,000 flight disruptions per day from interference. As a response, AT&T (NYSE:T) and Verizon (NYSE:VZ) announced delaying activation of some 5G towers located near airports.
American Airlines COO David Seymour commented on the risk posed to airlines from 5G interference. “Until a long-term technical solution is developed and implemented and as long as 5G is deployed, we anticipate we’ll experience delays, diversions and cancellations that are well beyond our control,” he said.
Airlines have been a volatile industry ever since the pandemic hit. Recent developments seemingly continue to put the aviation industry in cloudy skies.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Airline Stocks Alert: Why Are UAL, AAL Stocks Dipping Today? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Both American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) reported fourth-quarter 2021 earnings recently, and the results have investors abuzz. Investors Continue to Express Near-Term Doubt in Airline Stocks The past five days have seen a progressive decline in both UAL and AAL stocks. AAL has fallen from $19.60 earlier this month to its current $17.39 level.
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Both American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) reported fourth-quarter 2021 earnings recently, and the results have investors abuzz. Investors Continue to Express Near-Term Doubt in Airline Stocks The past five days have seen a progressive decline in both UAL and AAL stocks. AAL has fallen from $19.60 earlier this month to its current $17.39 level.
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Both American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) reported fourth-quarter 2021 earnings recently, and the results have investors abuzz. Investors Continue to Express Near-Term Doubt in Airline Stocks The past five days have seen a progressive decline in both UAL and AAL stocks. AAL has fallen from $19.60 earlier this month to its current $17.39 level.
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Both American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) reported fourth-quarter 2021 earnings recently, and the results have investors abuzz. Investors Continue to Express Near-Term Doubt in Airline Stocks The past five days have seen a progressive decline in both UAL and AAL stocks. AAL has fallen from $19.60 earlier this month to its current $17.39 level.
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58d09902-8f48-4d4b-93b2-c90e8db4b1a7
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3846.0
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2022-01-20 00:00:00 UTC
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Consumer Sector Update for 01/20/2022: CVNA,CRSR,AAL
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-for-01-20-2022%3A-cvnacrsraal
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nan
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nan
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Consumer stocks were broadly higher in Thursday trading, with the SPDR Consumer Staples Select Sector ETF (XLP) climbing 0.6% and the SPDR Consumer Discretionary Select Sector ETF (XLY) rising 1.3%.
In company news, Carvana (CVNA) climbed 6.4% after a KeyBanc downgrade to sector weight from overweight, one day after the used-car ecommerce platform said it completed its 1 millionth sale during the final three months of 2021, or roughly nine years after the company began operations.
Corsair Gaming (CRSR) was rising 5% after the gaming equipment and components company reported preliminary FY21 revenue of $1.9 billion, reaching the high end of its $1.825 billion to $1.925 billion forecast range and topping Street views looking for $1.88 billion in revenue for 12 months ended Dec. 31. Street forecast provided by Capital IQ. It sees FY22 revenue growing to between $1.9 billion to $2.1 billion, straddling the Capital IQ consensus looking for $1.99 billion in revenue this year.
American Airlines Group (AAL) rose 0.3% on Thursday, reversing an earlier decline that followed the carrier saying total revenue for its current Q1 likely will be down 20% to 22% from its $10.58 billion in revenue during the pre-pandemic first three months of 2019, indicating a Q1 range of $8.25 billion to $8.46 billion. Analysts, on average, are looking for American to generate $8.97 billion during the three months ending March 31.
The views and 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) rose 0.3% on Thursday, reversing an earlier decline that followed the carrier saying total revenue for its current Q1 likely will be down 20% to 22% from its $10.58 billion in revenue during the pre-pandemic first three months of 2019, indicating a Q1 range of $8.25 billion to $8.46 billion. Consumer stocks were broadly higher in Thursday trading, with the SPDR Consumer Staples Select Sector ETF (XLP) climbing 0.6% and the SPDR Consumer Discretionary Select Sector ETF (XLY) rising 1.3%. In company news, Carvana (CVNA) climbed 6.4% after a KeyBanc downgrade to sector weight from overweight, one day after the used-car ecommerce platform said it completed its 1 millionth sale during the final three months of 2021, or roughly nine years after the company began operations.
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American Airlines Group (AAL) rose 0.3% on Thursday, reversing an earlier decline that followed the carrier saying total revenue for its current Q1 likely will be down 20% to 22% from its $10.58 billion in revenue during the pre-pandemic first three months of 2019, indicating a Q1 range of $8.25 billion to $8.46 billion. Consumer stocks were broadly higher in Thursday trading, with the SPDR Consumer Staples Select Sector ETF (XLP) climbing 0.6% and the SPDR Consumer Discretionary Select Sector ETF (XLY) rising 1.3%. Corsair Gaming (CRSR) was rising 5% after the gaming equipment and components company reported preliminary FY21 revenue of $1.9 billion, reaching the high end of its $1.825 billion to $1.925 billion forecast range and topping Street views looking for $1.88 billion in revenue for 12 months ended Dec. 31.
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American Airlines Group (AAL) rose 0.3% on Thursday, reversing an earlier decline that followed the carrier saying total revenue for its current Q1 likely will be down 20% to 22% from its $10.58 billion in revenue during the pre-pandemic first three months of 2019, indicating a Q1 range of $8.25 billion to $8.46 billion. Corsair Gaming (CRSR) was rising 5% after the gaming equipment and components company reported preliminary FY21 revenue of $1.9 billion, reaching the high end of its $1.825 billion to $1.925 billion forecast range and topping Street views looking for $1.88 billion in revenue for 12 months ended Dec. 31. It sees FY22 revenue growing to between $1.9 billion to $2.1 billion, straddling the Capital IQ consensus looking for $1.99 billion in revenue this year.
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American Airlines Group (AAL) rose 0.3% on Thursday, reversing an earlier decline that followed the carrier saying total revenue for its current Q1 likely will be down 20% to 22% from its $10.58 billion in revenue during the pre-pandemic first three months of 2019, indicating a Q1 range of $8.25 billion to $8.46 billion. Corsair Gaming (CRSR) was rising 5% after the gaming equipment and components company reported preliminary FY21 revenue of $1.9 billion, reaching the high end of its $1.825 billion to $1.925 billion forecast range and topping Street views looking for $1.88 billion in revenue for 12 months ended Dec. 31. It sees FY22 revenue growing to between $1.9 billion to $2.1 billion, straddling the Capital IQ consensus looking for $1.99 billion in revenue this year.
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f627be85-fc6d-44fc-8a61-a5e5f3a6d779
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3847.0
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2022-01-20 00:00:00 UTC
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US STOCKS-Growth bargains, upbeat earnings boost Wall Street
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AAL
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https://www.nasdaq.com/articles/us-stocks-growth-bargains-upbeat-earnings-boost-wall-street
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nan
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nan
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By Bansari Mayur Kamdar and Shreyashi Sanyal
Jan 20 (Reuters) - U.S. stock indexes rose on Thursday on strong earnings reports, while bargain hunting boosted mega-cap growth companies after the Nasdaq index plunged into correction territory in the previous session.
The Nasdaq .IXIC has had a rough two months since hitting a record peak in November, with investors dumping tech stocks on expectations that the Federal Reserve would aggressively raise interest rates to tame inflation.
Recovering somewhat from Wednesday's selloff, growth companies such as Microsoft Corp MSFT.O and Tesla Inc TSLA.O gained 2.5% and 3.8%, respectively.
The S&P 500 consumer discretionary .SPLRCD, technology .SPLRCT and communication services .SPLRCL were the sectors that gained the most on the benchmark index .SPX.
Netflix NFLX.O, which is set to kick off earnings for big growth companies after market close, rose 1.4%.
Wall Street is watching Netflix's results to see whether companies have started to pull in enough new customers to justify big spending on online programming in 2022.
"A lot of investors certainly felt that they missed out on that swing higher in growth stocks in the fall," said David Keller, chief market strategist at StockCharts.com
"Now that they've come off quite a bit and are testing levels of previous support, I wouldn't be surprised if a good earnings report causes a nice bounce to Netflix, mainly because it is at such a lower valuation than a couple of months ago."
The Fed's policy meeting next week will be eyed for clarity on the central bank's plan to control inflation after data earlier this month showed U.S. consumer prices surged to the highest level in four decades in December.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits unexpectedly rose last week, likely as a wave of COVID-19 cases disrupted business activity.
U.S. Treasury yields were steady after dropping from two-year highs on Wednesday. Yields have been rising this month as investors price in the likelihood of a hawkish Fed, weighing on equity markets. /US
At 11:40 a.m. ET, the Dow Jones Industrial Average .DJI was up 425.53 points, or 1.21%, at 35,454.18, the S&P 500 .SPX was up 61.57 points, or 1.36%, at 4,594.33 and the Nasdaq Composite .IXIC was up 256.71 points, or 1.79%, at 14,596.97.
Insurance industry bellwether Travelers Companies TRV.N gained 5.8% after reporting a record quarterly profit as higher returns from its investments cushioned the hit from a rise in catastrophe-related claims.
Baker Hughes Co BKR.O jumped 5.4% as surging crude prices boosted demand for its oilfield service equipment, helping it post an adjusted quarterly profit compared with a year-ago loss.
American Airlines AAL.O dipped 0.4%, reversing from early gains despite it reporting a smaller fourth-quarter loss, while United Airlines UAL.O fell 0.5% after cutting its capacity forecast for 2022.
Advancing issues outnumbered decliners by a 4.19-to-1 ratio on the NYSE and a 3.19-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and one new low, while the Nasdaq recorded 14 new highs and 124 new lows.
(Reporting by Bansari Mayur Kamdar and Shreyashi Sanyal in Bengaluru; Editing by Aditya Soni)
((BansariMayur.Kamdar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O dipped 0.4%, reversing from early gains despite it reporting a smaller fourth-quarter loss, while United Airlines UAL.O fell 0.5% after cutting its capacity forecast for 2022. The Nasdaq .IXIC has had a rough two months since hitting a record peak in November, with investors dumping tech stocks on expectations that the Federal Reserve would aggressively raise interest rates to tame inflation. "A lot of investors certainly felt that they missed out on that swing higher in growth stocks in the fall," said David Keller, chief market strategist at StockCharts.com "Now that they've come off quite a bit and are testing levels of previous support, I wouldn't be surprised if a good earnings report causes a nice bounce to Netflix, mainly because it is at such a lower valuation than a couple of months ago."
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American Airlines AAL.O dipped 0.4%, reversing from early gains despite it reporting a smaller fourth-quarter loss, while United Airlines UAL.O fell 0.5% after cutting its capacity forecast for 2022. By Bansari Mayur Kamdar and Shreyashi Sanyal Jan 20 (Reuters) - U.S. stock indexes rose on Thursday on strong earnings reports, while bargain hunting boosted mega-cap growth companies after the Nasdaq index plunged into correction territory in the previous session. The Fed's policy meeting next week will be eyed for clarity on the central bank's plan to control inflation after data earlier this month showed U.S. consumer prices surged to the highest level in four decades in December.
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American Airlines AAL.O dipped 0.4%, reversing from early gains despite it reporting a smaller fourth-quarter loss, while United Airlines UAL.O fell 0.5% after cutting its capacity forecast for 2022. By Bansari Mayur Kamdar and Shreyashi Sanyal Jan 20 (Reuters) - U.S. stock indexes rose on Thursday on strong earnings reports, while bargain hunting boosted mega-cap growth companies after the Nasdaq index plunged into correction territory in the previous session. "A lot of investors certainly felt that they missed out on that swing higher in growth stocks in the fall," said David Keller, chief market strategist at StockCharts.com "Now that they've come off quite a bit and are testing levels of previous support, I wouldn't be surprised if a good earnings report causes a nice bounce to Netflix, mainly because it is at such a lower valuation than a couple of months ago."
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American Airlines AAL.O dipped 0.4%, reversing from early gains despite it reporting a smaller fourth-quarter loss, while United Airlines UAL.O fell 0.5% after cutting its capacity forecast for 2022. Netflix NFLX.O, which is set to kick off earnings for big growth companies after market close, rose 1.4%. The Fed's policy meeting next week will be eyed for clarity on the central bank's plan to control inflation after data earlier this month showed U.S. consumer prices surged to the highest level in four decades in December.
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9284c5b5-da1e-42b3-9123-9ece9fb51396
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3848.0
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2022-01-20 00:00:00 UTC
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American Airlines Group Inc Q4 Loss Increases, but beats estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-q4-loss-increases-but-beats-estimates
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nan
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nan
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(RTTNews) - American Airlines Group Inc (AAL) revealed Loss for fourth quarter that decreased from the same period last year and beat the Street estimates.
The company's bottom line came in at -$0.93 billion, or -$1.44 per share. This compares with -$2.18 billion, or -$3.81 per share, in last year's fourth quarter.
Excluding items, American Airlines Group Inc reported adjusted earnings of -$0.92 billion or -$1.42 per share for the period.
Analysts on average had expected the company to earn -$1.47 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 134.0% to $9.43 billion from $4.03 billion last year.
American Airlines Group Inc earnings at a glance (GAAP) :
-Earnings (Q4): -$0.93 Bln. vs. -$2.18 Bln. last year. -EPS (Q4): -$1.44 vs. -$3.81 last year. -Analyst Estimates: -$1.47 -Revenue (Q4): $9.43 Bln vs. $4.03 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc (AAL) revealed Loss for fourth quarter that decreased from the same period last year and beat the Street estimates. Excluding items, American Airlines Group Inc reported adjusted earnings of -$0.92 billion or -$1.42 per share for the period. Analysts on average had expected the company to earn -$1.47 per share, according to figures compiled by Thomson Reuters.
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(RTTNews) - American Airlines Group Inc (AAL) revealed Loss for fourth quarter that decreased from the same period last year and beat the Street estimates. Excluding items, American Airlines Group Inc reported adjusted earnings of -$0.92 billion or -$1.42 per share for the period. American Airlines Group Inc earnings at a glance (GAAP) : -Earnings (Q4): -$0.93 Bln.
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(RTTNews) - American Airlines Group Inc (AAL) revealed Loss for fourth quarter that decreased from the same period last year and beat the Street estimates. The company's revenue for the quarter rose 134.0% to $9.43 billion from $4.03 billion last year. -Analyst Estimates: -$1.47 -Revenue (Q4): $9.43 Bln vs. $4.03 Bln last year.
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(RTTNews) - American Airlines Group Inc (AAL) revealed Loss for fourth quarter that decreased from the same period last year and beat the Street estimates. This compares with -$2.18 billion, or -$3.81 per share, in last year's fourth quarter. Excluding items, American Airlines Group Inc reported adjusted earnings of -$0.92 billion or -$1.42 per share for the period.
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2afbfb76-6e06-4785-9ef9-735bf05aec60
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3849.0
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2022-01-20 00:00:00 UTC
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US STOCKS-Growth bargains, upbeat earnings take Wall Street higher
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AAL
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https://www.nasdaq.com/articles/us-stocks-growth-bargains-upbeat-earnings-take-wall-street-higher
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nan
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nan
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By Bansari Mayur Kamdar and Shreyashi Sanyal
Jan 20 (Reuters) - U.S. stock indexes rose on Thursday on strong earnings reports, while bargain hunting boosted mega-cap growth companies after the Nasdaq index plunged into correction territory in the previous session.
The Nasdaq .IXIC has had a rough two months since hitting a record peak in November, with investors dumping tech stocks on expectations that the Federal Reserve would aggressively raise interest rates to tame inflation.
Recovering somewhat from Wednesday's selloff, companies including Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Amazon AMZN.O, Tesla Inc TSLA.O, Meta Platforms Inc FB.O rose up to 2.5%.
The S&P 500 consumer discretionary .SPLRCD, technology .SPLRCT and communication services .SPLRCL were the sectors that gained the most on the benchmark index .SPX.
"We've done a lot of damage in a very short period of time and that tends to cause a reflexive bounce. It won't take much for bargain hunters to come out and turn this thing around a little bit," said Art Hogan, chief market strategist at National Securities in New York.
Netflix NFLX.O, which is set to kick off the earnings for big growth companies after market close, rose 1.4%.
Wall Street is watching Netflix's results to see whether companies have started to pull in enough new customers to justify big spending on online programming in 2022.
The Fed's policy meeting next week will be eyed for clarity on the central bank's plan to control inflation, after data earlier this month showed U.S. consumer prices surged to the highest level in four decades in December.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits unexpectedly rose last week, likely as a wave of COVID-19 cases disrupted business activity.
At 9:43 a.m. ET, the Dow Jones Industrial Average .DJI was up 207.11 points, or 0.59%, at 35,235.76, the S&P 500 .SPX was up 33.65 points, or 0.74%, at 4,566.41 and the Nasdaq Composite .IXIC was up 194.08 points, or 1.35%, at 14,534.33.
Insurance industry bellwether Travelers Companies TRV.N gained 3.7% after reporting a record quarterly profit as higher returns from its investments cushioned the hit from a rise in catastrophe-related claims.
"The earnings season is going to be a positive catalyst, especially since we're coming in so significantly off the all-time highs. The setup for earnings surprises is likely also a set up for markets to actually do a whole lot better," National Securities' Hogan said.
Baker Hughes Co BKR.O jumped 5.1% as surging crude prices boosted demand for its oilfield service equipment, helping it post an adjusted quarterly profit compared with a year-ago loss.
American Airlines AAL.O fell 1.9%, reversing early gains even as it reported a smaller fourth-quarter loss, while United Airlines UAL.O shed 1.2% after cutting its capacity forecast for 2022.
Advancing issues outnumbered decliners by a 1.82-to-1 ratio on the NYSE and a 2.43-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and one new low, while the Nasdaq recorded seven new highs and 60 new lows.
(Reporting by Bansari Mayur Kamdar and Shreyashi Sanyal in Bengaluru; Editing by Aditya Soni)
((BansariMayur.Kamdar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O fell 1.9%, reversing early gains even as it reported a smaller fourth-quarter loss, while United Airlines UAL.O shed 1.2% after cutting its capacity forecast for 2022. The Nasdaq .IXIC has had a rough two months since hitting a record peak in November, with investors dumping tech stocks on expectations that the Federal Reserve would aggressively raise interest rates to tame inflation. The Fed's policy meeting next week will be eyed for clarity on the central bank's plan to control inflation, after data earlier this month showed U.S. consumer prices surged to the highest level in four decades in December.
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American Airlines AAL.O fell 1.9%, reversing early gains even as it reported a smaller fourth-quarter loss, while United Airlines UAL.O shed 1.2% after cutting its capacity forecast for 2022. By Bansari Mayur Kamdar and Shreyashi Sanyal Jan 20 (Reuters) - U.S. stock indexes rose on Thursday on strong earnings reports, while bargain hunting boosted mega-cap growth companies after the Nasdaq index plunged into correction territory in the previous session. The Fed's policy meeting next week will be eyed for clarity on the central bank's plan to control inflation, after data earlier this month showed U.S. consumer prices surged to the highest level in four decades in December.
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American Airlines AAL.O fell 1.9%, reversing early gains even as it reported a smaller fourth-quarter loss, while United Airlines UAL.O shed 1.2% after cutting its capacity forecast for 2022. By Bansari Mayur Kamdar and Shreyashi Sanyal Jan 20 (Reuters) - U.S. stock indexes rose on Thursday on strong earnings reports, while bargain hunting boosted mega-cap growth companies after the Nasdaq index plunged into correction territory in the previous session. Insurance industry bellwether Travelers Companies TRV.N gained 3.7% after reporting a record quarterly profit as higher returns from its investments cushioned the hit from a rise in catastrophe-related claims.
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American Airlines AAL.O fell 1.9%, reversing early gains even as it reported a smaller fourth-quarter loss, while United Airlines UAL.O shed 1.2% after cutting its capacity forecast for 2022. By Bansari Mayur Kamdar and Shreyashi Sanyal Jan 20 (Reuters) - U.S. stock indexes rose on Thursday on strong earnings reports, while bargain hunting boosted mega-cap growth companies after the Nasdaq index plunged into correction territory in the previous session. Netflix NFLX.O, which is set to kick off the earnings for big growth companies after market close, rose 1.4%.
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62a71cc8-2c78-4e85-be8d-597e09d3b89a
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3850.0
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2022-01-20 00:00:00 UTC
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American Airlines Group Q4 21 Earnings Conference Call At 8:30 AM ET
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-q4-21-earnings-conference-call-at-8%3A30-am-et
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nan
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on January 20, 2022, to discuss Q4 21 earnings results.
To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on January 20, 2022, to discuss Q4 21 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on January 20, 2022, to discuss Q4 21 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on January 20, 2022, to discuss Q4 21 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on January 20, 2022, to discuss Q4 21 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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639fd065-c0ae-487f-9291-04daf56310dc
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3851.0
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2022-01-20 00:00:00 UTC
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American Airlines loss narrows on strong holiday travel demand
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AAL
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https://www.nasdaq.com/articles/american-airlines-loss-narrows-on-strong-holiday-travel-demand
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nan
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nan
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Adds details, shares, background
Jan 20 (Reuters) - American Airlines Group Inc AAL.O reported a smaller fourth-quarter loss on Thursday, boosted by strong travel demand during the holiday season.
U.S. carriers benefited from millions of Americans flying in November and December, with the Transportation Security Administration screening nearly 21 million travelers during the 10-day Thanksgiving holiday.
Demand during Christmas Eve and New Year's Eve was strong as well, although mass flight cancellations towards the end of the year due to rising COVID-19 cases and inclement weather meant airlines could not fully tap that demand.
Shares of the company were up 1.1% before the bell on Thursday.
Fort Worth, Texas-based American Airlines had ramped up capacity and staffing to meet the demand surge during the key season. Available seat miles, the carrying capacity of an airplane available to create revenue, rose 84% from a year earlier.
The airline's adjusted net loss fell to $921 million, or $1.42 per share, for the quarter ended Dec. 31, from $2.2 billion, or $3.86 per share, a year earlier when the COVID-19 pandemic hammered air travel.
Total operating revenue rose to $9.43 billion from $4.03 billion a year earlier.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Ramakrishnan M.)
((Abhijith.G@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details, shares, background Jan 20 (Reuters) - American Airlines Group Inc AAL.O reported a smaller fourth-quarter loss on Thursday, boosted by strong travel demand during the holiday season. Fort Worth, Texas-based American Airlines had ramped up capacity and staffing to meet the demand surge during the key season. Available seat miles, the carrying capacity of an airplane available to create revenue, rose 84% from a year earlier.
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Adds details, shares, background Jan 20 (Reuters) - American Airlines Group Inc AAL.O reported a smaller fourth-quarter loss on Thursday, boosted by strong travel demand during the holiday season. The airline's adjusted net loss fell to $921 million, or $1.42 per share, for the quarter ended Dec. 31, from $2.2 billion, or $3.86 per share, a year earlier when the COVID-19 pandemic hammered air travel. Total operating revenue rose to $9.43 billion from $4.03 billion a year earlier.
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Adds details, shares, background Jan 20 (Reuters) - American Airlines Group Inc AAL.O reported a smaller fourth-quarter loss on Thursday, boosted by strong travel demand during the holiday season. Demand during Christmas Eve and New Year's Eve was strong as well, although mass flight cancellations towards the end of the year due to rising COVID-19 cases and inclement weather meant airlines could not fully tap that demand. The airline's adjusted net loss fell to $921 million, or $1.42 per share, for the quarter ended Dec. 31, from $2.2 billion, or $3.86 per share, a year earlier when the COVID-19 pandemic hammered air travel.
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Adds details, shares, background Jan 20 (Reuters) - American Airlines Group Inc AAL.O reported a smaller fourth-quarter loss on Thursday, boosted by strong travel demand during the holiday season. The airline's adjusted net loss fell to $921 million, or $1.42 per share, for the quarter ended Dec. 31, from $2.2 billion, or $3.86 per share, a year earlier when the COVID-19 pandemic hammered air travel. Total operating revenue rose to $9.43 billion from $4.03 billion a year earlier.
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9a23edf8-ce12-471a-a848-d512b3b4a347
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3852.0
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2022-01-20 00:00:00 UTC
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US STOCKS-Wall Street set to open higher after upbeat earnings
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-open-higher-after-upbeat-earnings
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nan
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nan
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By Bansari Mayur Kamdar
Jan 20 (Reuters) - U.S. stock futures rose on Thursday as upbeat results from American Airlines and Travelers kept the positive momentum going for the fourth-quarter earnings season, a day after the tech-heavy Nasdaq index plunged into correction territory.
The Nasdaq .IXIC has had a rough two months since hitting a record peak in November, with investors dumping tech stocks on expectations that the Federal Reserve would aggressively raise interest rates to tame inflation.
Recovering somewhat from Wednesday's selloff, megacap growth companies including Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Amazon AMZN.O, Tesla Inc TSLA.O, Meta Platforms Inc FB.O rose up to 1.8% in premarket trading.
"We've done a lot of damage in a very short period of time and that tends to cause a reflexive bounce. It won't take much for bargain hunters to come out and turn this thing around a little bit," said Art Hogan, chief market strategist at National Securities in New York.
Netflix NFLX.O, which is set to kick off the earnings season for big growth companies later in the day, advanced 0.9%.
Wall Street is watching Netflix's results to see whether companies have started to pull in enough new customers to justify big spending on online programming in 2022.
The U.S. Senate Judiciary Committee is also set to decide on whether the full Senate should vote on two bills aimed at reining in tech giants. The bills would bar tech platforms like Amazon from giving preference to their own businesses on their websites and big app stores like Apple from requiring app providers to use their payment system.
The Fed's policy meeting next week will be eyed for clarity on the central bank's plan to control inflation, after data earlier this month showed U.S. consumer prices surged to the highest level in four decades.
A report on Thursday showed the number of Americans filing new claims for unemployment benefits unexpectedly rose last week, likely as a wave of COVID-19 cases disrupted business activity.
At 8:37 a.m. ET, Dow e-minis 1YMcv1 were up 128 points, or 0.37%, S&P 500 e-minis EScv1 were up 19.75 points, or 0.44%, and Nasdaq 100 e-minis NQcv1 were up 132.5 points, or 0.88%.
Insurance industry bellwether Travelers Companies TRV.N gained 4.3% after reporting a record quarterly profit as higher returns from its investments cushioned the hit from a rise in catastrophe-related claims.
"The earnings season is going to be a positive catalyst, especially since we're coming in so significantly off the all-time highs. The setup for earnings surprises is likely also a set up for markets to actually do a whole lot better," National Securities' Hogan said.
American Airlines AAL.O gained 1.8% after reporting a smaller fourth-quarter loss, boosted by strong travel demand during the holiday season, while United Airlines UAL.O declined 0.9% after cutting its capacity forecast for 2022.
Baker Hughes Co BKR.O added 1.2% as surging crude prices boosted demand for its oilfield service equipment, helping it post an adjusted quarterly profit compared with a year-ago loss.
(Reporting by Bansari Mayur Kamdar and Shreyashi Sanyal in Bengaluru; Editing by Aditya Soni)
((BansariMayur.Kamdar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL.O gained 1.8% after reporting a smaller fourth-quarter loss, boosted by strong travel demand during the holiday season, while United Airlines UAL.O declined 0.9% after cutting its capacity forecast for 2022. By Bansari Mayur Kamdar Jan 20 (Reuters) - U.S. stock futures rose on Thursday as upbeat results from American Airlines and Travelers kept the positive momentum going for the fourth-quarter earnings season, a day after the tech-heavy Nasdaq index plunged into correction territory. The Nasdaq .IXIC has had a rough two months since hitting a record peak in November, with investors dumping tech stocks on expectations that the Federal Reserve would aggressively raise interest rates to tame inflation.
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American Airlines AAL.O gained 1.8% after reporting a smaller fourth-quarter loss, boosted by strong travel demand during the holiday season, while United Airlines UAL.O declined 0.9% after cutting its capacity forecast for 2022. By Bansari Mayur Kamdar Jan 20 (Reuters) - U.S. stock futures rose on Thursday as upbeat results from American Airlines and Travelers kept the positive momentum going for the fourth-quarter earnings season, a day after the tech-heavy Nasdaq index plunged into correction territory. Insurance industry bellwether Travelers Companies TRV.N gained 4.3% after reporting a record quarterly profit as higher returns from its investments cushioned the hit from a rise in catastrophe-related claims.
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American Airlines AAL.O gained 1.8% after reporting a smaller fourth-quarter loss, boosted by strong travel demand during the holiday season, while United Airlines UAL.O declined 0.9% after cutting its capacity forecast for 2022. By Bansari Mayur Kamdar Jan 20 (Reuters) - U.S. stock futures rose on Thursday as upbeat results from American Airlines and Travelers kept the positive momentum going for the fourth-quarter earnings season, a day after the tech-heavy Nasdaq index plunged into correction territory. Netflix NFLX.O, which is set to kick off the earnings season for big growth companies later in the day, advanced 0.9%.
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American Airlines AAL.O gained 1.8% after reporting a smaller fourth-quarter loss, boosted by strong travel demand during the holiday season, while United Airlines UAL.O declined 0.9% after cutting its capacity forecast for 2022. By Bansari Mayur Kamdar Jan 20 (Reuters) - U.S. stock futures rose on Thursday as upbeat results from American Airlines and Travelers kept the positive momentum going for the fourth-quarter earnings season, a day after the tech-heavy Nasdaq index plunged into correction territory. Netflix NFLX.O, which is set to kick off the earnings season for big growth companies later in the day, advanced 0.9%.
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862082c0-ee56-4ca2-bdb3-7421291292f3
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3853.0
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2022-01-20 00:00:00 UTC
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American Airlines Q4 Loss Narrows Better Than View
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AAL
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https://www.nasdaq.com/articles/american-airlines-q4-loss-narrows-better-than-view
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nan
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) on Thursday reported narrower net loss in the fourth quarter on higher travel demand.
Net loss in the fourth quarter was $931 million or $1.44 per share compared with net loss of $2.178 billion or $3.81 per share in the same quarter a year ago.
Excluding one-time items loss was $921 million or $1.42 per share, that beat the average estimate of seventeen analysts polled by Thomson Reuters at $1.47 loss per share. Analysts' estimates typically exclude special items.
Total operating revenue for the quarter more than doubled to $9.427 billion from $4.27 billion last year. The consensus estimate stood at $9.37 billion.
AAL stock is up 1.33% at $17.54.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) on Thursday reported narrower net loss in the fourth quarter on higher travel demand. AAL stock is up 1.33% at $17.54. Net loss in the fourth quarter was $931 million or $1.44 per share compared with net loss of $2.178 billion or $3.81 per share in the same quarter a year ago.
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(RTTNews) - American Airlines Group Inc. (AAL) on Thursday reported narrower net loss in the fourth quarter on higher travel demand. AAL stock is up 1.33% at $17.54. Net loss in the fourth quarter was $931 million or $1.44 per share compared with net loss of $2.178 billion or $3.81 per share in the same quarter a year ago.
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(RTTNews) - American Airlines Group Inc. (AAL) on Thursday reported narrower net loss in the fourth quarter on higher travel demand. AAL stock is up 1.33% at $17.54. Net loss in the fourth quarter was $931 million or $1.44 per share compared with net loss of $2.178 billion or $3.81 per share in the same quarter a year ago.
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(RTTNews) - American Airlines Group Inc. (AAL) on Thursday reported narrower net loss in the fourth quarter on higher travel demand. AAL stock is up 1.33% at $17.54. Net loss in the fourth quarter was $931 million or $1.44 per share compared with net loss of $2.178 billion or $3.81 per share in the same quarter a year ago.
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0e830ac8-8cbe-4368-a159-4816469c0d93
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3854.0
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2022-01-20 00:00:00 UTC
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U.S. stock futures rise on earnings after Nasdaq enters correction territory
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AAL
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https://www.nasdaq.com/articles/u.s.-stock-futures-rise-on-earnings-after-nasdaq-enters-correction-territory
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nan
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nan
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By Bansari Mayur Kamdar
Jan 20 (Reuters) - U.S. stock futures rose on Thursday on a string of strong earnings led by American Airlines and insurer Travelers, a day after the tech-heavy Nasdaq plunged into correction territory.
Investors will also be watching jobless claims data at 0830 ET for cues on the Federal Reserve's policy meeting next week after data earlier this month showed U.S. consumer prices reached the highest in four decades.
Bets of a more hawkish Fed have weighed on Wall Street this month, with the Nasdaq confirming it was in a correction on Wednesday as investors continued to dump technology stocks.
Recovering somewhat from the selloff, megacap growth companies including Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Amazon AMZN.O, Tesla Inc TSLA.O, Meta Platforms Inc FB.O rose 1.6% in premarket trading.
Several heavyweight growth stocks have underperformed the Nasdaq since its last record close on Nov. 19, with Amazon, Tesla and Nvidia NVDA.O down 15%, 12% and 24%, respectively.
Netflix NFLX.O, the streaming service pioneer that is set to kick off earnings season for big growth companies later in the day, advanced 1%.
Wall Street is watching Netflix's results to see whether companies have started to pull in enough new customers to justify big spending on online programming in 2022.
The U.S. Senate Judiciary Committee is also set to decide on whether the full Senate should vote on two bills aimed at reining in tech giants. The bills would bar tech platforms like Amazon from giving preference to their own businesses on their websites and big app stores like Apple from requiring app providers to use their payment system.
At 7:09 a.m. ET, Dow e-minis 1YMcv1 were up 157 points, or 0.45%, S&P 500 e-minis EScv1 were up 22.5 points, or 0.5%, and Nasdaq 100 e-minis NQcv1 were up 122.5 points, or 0.81%
American Airlines AAL.O gained 1.4% after reporting a smaller fourth-quarter loss, boosted by strong travel demand during the holiday season.
Peer United Airlines UAL.O declined 1.2% after cutting its capacity forecast for 2022 on Wednesday and warning of higher costs due to Omicron coronavirus variant.
Bellwether insurer Travelers Companies TRV.N gained 3.3% after reporting a record quarterly profit as higher returns from its investments cushioned the hit from a rise in catastrophe-related claims.
U.S. railroad operator Union Pacific Corp UNP.N and trust bank Northern Trust Corp NTRS.O will also be reporting results later in the day for the final quarter of 2022.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Aditya Soni)
((BansariMayur.Kamdar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
ET, Dow e-minis 1YMcv1 were up 157 points, or 0.45%, S&P 500 e-minis EScv1 were up 22.5 points, or 0.5%, and Nasdaq 100 e-minis NQcv1 were up 122.5 points, or 0.81% American Airlines AAL.O gained 1.4% after reporting a smaller fourth-quarter loss, boosted by strong travel demand during the holiday season. By Bansari Mayur Kamdar Jan 20 (Reuters) - U.S. stock futures rose on Thursday on a string of strong earnings led by American Airlines and insurer Travelers, a day after the tech-heavy Nasdaq plunged into correction territory. Bets of a more hawkish Fed have weighed on Wall Street this month, with the Nasdaq confirming it was in a correction on Wednesday as investors continued to dump technology stocks.
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ET, Dow e-minis 1YMcv1 were up 157 points, or 0.45%, S&P 500 e-minis EScv1 were up 22.5 points, or 0.5%, and Nasdaq 100 e-minis NQcv1 were up 122.5 points, or 0.81% American Airlines AAL.O gained 1.4% after reporting a smaller fourth-quarter loss, boosted by strong travel demand during the holiday season. By Bansari Mayur Kamdar Jan 20 (Reuters) - U.S. stock futures rose on Thursday on a string of strong earnings led by American Airlines and insurer Travelers, a day after the tech-heavy Nasdaq plunged into correction territory. Bellwether insurer Travelers Companies TRV.N gained 3.3% after reporting a record quarterly profit as higher returns from its investments cushioned the hit from a rise in catastrophe-related claims.
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ET, Dow e-minis 1YMcv1 were up 157 points, or 0.45%, S&P 500 e-minis EScv1 were up 22.5 points, or 0.5%, and Nasdaq 100 e-minis NQcv1 were up 122.5 points, or 0.81% American Airlines AAL.O gained 1.4% after reporting a smaller fourth-quarter loss, boosted by strong travel demand during the holiday season. By Bansari Mayur Kamdar Jan 20 (Reuters) - U.S. stock futures rose on Thursday on a string of strong earnings led by American Airlines and insurer Travelers, a day after the tech-heavy Nasdaq plunged into correction territory. Bellwether insurer Travelers Companies TRV.N gained 3.3% after reporting a record quarterly profit as higher returns from its investments cushioned the hit from a rise in catastrophe-related claims.
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ET, Dow e-minis 1YMcv1 were up 157 points, or 0.45%, S&P 500 e-minis EScv1 were up 22.5 points, or 0.5%, and Nasdaq 100 e-minis NQcv1 were up 122.5 points, or 0.81% American Airlines AAL.O gained 1.4% after reporting a smaller fourth-quarter loss, boosted by strong travel demand during the holiday season. By Bansari Mayur Kamdar Jan 20 (Reuters) - U.S. stock futures rose on Thursday on a string of strong earnings led by American Airlines and insurer Travelers, a day after the tech-heavy Nasdaq plunged into correction territory. Investors will also be watching jobless claims data at 0830 ET for cues on the Federal Reserve's policy meeting next week after data earlier this month showed U.S. consumer prices reached the highest in four decades.
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a861bb30-d306-4dd9-bb0c-fbad4599a64a
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3855.0
|
2022-01-19 00:00:00 UTC
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Should You Buy United Airlines Stock Ahead Of Earnings?
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AAL
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https://www.nasdaq.com/articles/should-you-buy-united-airlines-stock-ahead-of-earnings
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nan
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nan
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As the world grapples with another Covid surge, macroeconomic recovery has become a key concern for authorities leading to fewer restriction measures. The shares of United Airlines (NASDAQ: UAL) observed another round of sell-off after WHO declared the Omicron mutation as a variant of concern and investors were wary of a decline in passenger traffic. UAL stock has lost $10 billion in market capitalization – compared to the $4.2 billion operating cash burn since February 2020. Considering stable domestic demand even during these uncertain times, Trefis believes that the stock is poised for more gains. We highlight the quarterly trends in revenues, earnings, stock price, and expectations for Q4 2021 in an interactive dashboard analysis, United Airlines Earnings Preview.
United Airlines fundamentals improved in 2021 despite a raging pandemic
United Airlines revenues observed a 38% growth in 2021 assisted by passenger demand in the second and third quarters despite a raging pandemic. The company’s total capacity stood just 28% below 2019 levels and the consolidated load factor was 76% in the third quarter. The operating cash remained positive at $2.3 billion on revenues of $16 billion in the first nine months of 2021. Notably, the TSA checkpoint numbers stand 18% below pre-pandemic levels – hinting toward a gradual recovery in the coming months. (related: United Airlines Stock: Should You Buy The Dip?)
How has UAL stock fared in comparison to the S&P 500?
UAL stock declined from levels of around $80 in February 2020 (pre-crisis peak) to levels of around $26 in March 2020 (as the markets bottomed out), implying UAL stock lost 67% from its approximate pre-crisis peak. Despite the multiple waves of the pandemic and an uncertain macroeconomic environment, the stock has gained 78% to reach $46 and we expect more room for growth given less stringent restriction measures imposed by governments.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
UAL Return 7% 7% -36%
S&P 500 Return -2% -2% 108%
Trefis MS Portfolio Return -7% -7% 264%
[1] Month-to-date and year-to-date as of 1/17/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As the world grapples with another Covid surge, macroeconomic recovery has become a key concern for authorities leading to fewer restriction measures. The shares of United Airlines (NASDAQ: UAL) observed another round of sell-off after WHO declared the Omicron mutation as a variant of concern and investors were wary of a decline in passenger traffic. Despite the multiple waves of the pandemic and an uncertain macroeconomic environment, the stock has gained 78% to reach $46 and we expect more room for growth given less stringent restriction measures imposed by governments.
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The shares of United Airlines (NASDAQ: UAL) observed another round of sell-off after WHO declared the Omicron mutation as a variant of concern and investors were wary of a decline in passenger traffic. United Airlines fundamentals improved in 2021 despite a raging pandemic United Airlines revenues observed a 38% growth in 2021 assisted by passenger demand in the second and third quarters despite a raging pandemic. UAL stock declined from levels of around $80 in February 2020 (pre-crisis peak) to levels of around $26 in March 2020 (as the markets bottomed out), implying UAL stock lost 67% from its approximate pre-crisis peak.
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United Airlines fundamentals improved in 2021 despite a raging pandemic United Airlines revenues observed a 38% growth in 2021 assisted by passenger demand in the second and third quarters despite a raging pandemic. UAL stock declined from levels of around $80 in February 2020 (pre-crisis peak) to levels of around $26 in March 2020 (as the markets bottomed out), implying UAL stock lost 67% from its approximate pre-crisis peak. Total [2] UAL Return 7% 7% -36% S&P 500 Return -2% -2% 108% Trefis MS Portfolio Return -7% -7% 264% [1] Month-to-date and year-to-date as of 1/17/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines fundamentals improved in 2021 despite a raging pandemic United Airlines revenues observed a 38% growth in 2021 assisted by passenger demand in the second and third quarters despite a raging pandemic. Despite the multiple waves of the pandemic and an uncertain macroeconomic environment, the stock has gained 78% to reach $46 and we expect more room for growth given less stringent restriction measures imposed by governments. Total [2] UAL Return 7% 7% -36% S&P 500 Return -2% -2% 108% Trefis MS Portfolio Return -7% -7% 264% [1] Month-to-date and year-to-date as of 1/17/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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595be4c7-5877-4fd0-bd67-812dd6588750
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3856.0
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2022-01-19 00:00:00 UTC
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Should You Pick American Airlines Stock Ahead Of Earnings?
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AAL
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https://www.nasdaq.com/articles/should-you-pick-american-airlines-stock-ahead-of-earnings
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nan
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nan
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[Updated 01/18/2022]
Macroeconomic recovery has been a key concern for authorities after the surge in infections due to the Omicron variant. Thus, governments have imposed fewer restriction measures to ease economic activity. The shares of American Airlines (NASDAQ: AAL) have remained relatively level in recent months despite expectations of lukewarm travel demand in the near-term. It is largely due to American’s $6.5 billion of operating cash burn in 2020, which is comparable to a $7 billion decline in market capitalization. Moreover, the company’s $24 billion of long-term debt obligations are a drag on long-term shareholder returns. We highlight the quarterly trends in revenues, earnings, stock price, and expectations for Q4 2021 in an interactive dashboard analysis, American Airlines Earnings Preview.
Below you’ll find our previous coverage of AAL stock where you can track our view over time.
[Updated 12/29/2021] – Is This Airline Stock A Better Pick Over American Airlines?
The shares of American Airlines (NASDAQ: AAL) currently trade 35% below pre-Covid levels as compared to a 44% decline in United Airlines stock (NASDAQ: UAL). United Airlines incurred $4.1 billion of operating cash burn last year which is lower than its $11 billion drop in market capitalization since February 2020. Comparing this with American Airlines’ $7.2 billion decline in market capitalization and $6.5 billion of operating cash burn, Trefis believes that United Airlines stock is a good value investment. Also, the third phase of the payroll support program restricts airline companies from returning capital to investors as dividends and share repurchases until September 2022. We compare the historical trends in revenues, margins, and valuation multiple of both companies in an interactive dashboard analysis, American Airlines vs United Airlines: Industry Peers; Which Stock Is A Better Bet?– parts of which are highlighted below.
Revenue Growth
United’s growth was a bit higher than American’s before the pandemic, with United’s revenue expanding at an average rate of 5.8% per year from $36.6 billion in 2016 to $43.3 billion in 2019, versus American’s revenue which grew by 4.5% per year from $40 billion in 2016 to $45 billion in 2019. With the pandemic causing a severe downturn in the travel & tourism industry, both companies reported a 60% (y-o-y) top-line contraction in 2020.
To match demand-supply and lower operating losses, United and American lowered capacity in 2020 (available seat miles) by 57% and 50%, respectively. Thus, lower cash generation from reduced capacity and occupancy rate prompted the need for government aid to assist maintenance costs and employee salaries.
Per PSP-3 requirements, dividend payouts and share buybacks remain suspended until September 2022 as the airline industry continues to face hiccups from multiple waves of coronavirus infections.
United and American’s topline has been majorly driven by domestic demand in the past few years. In 2019, domestic business accounted for 74% and 62% of United and American’s total revenues, respectively.
Both companies reported strong revenue growth this year, assisted by domestic travel demand and a decline in new infections after the fourth wave (due to Delta variant). (related: Southwest Airlines Stock Poised For Strong Gains?)
Returns (Profits)
Coming to Returns, United has been reporting a slightly higher operating margin than American.
In 2019, United Airlines reported $43 billion in revenues, $3 billion of net income – at a net margin of 7%. Similarly, American Airlines reported $46 billion in revenues, $1.6 billion of net income – at a net margin of 4%.
American sizably low net margins have largely been due to $1 billion of annual interest expense on the $20 billion of long-term debt.
Moreover, American’s highly leveraged balance sheet led to an operating cash burn of $6.5 billion as compared to $4.1 billion for United Airlines.
Risk
American Airlines looks like the riskier of the two companies from the perspective of financial leverage.
High fixed costs and significantly low demand took a heavy toll on all air carriers over the past two years. With the culmination of the CARES Act grant, the airline industry faces downside risk from recurring travel restrictions due to multiple infectious waves. Thus, revenue contraction coupled with a loaded balance sheet negatively affects shareholder returns.
As dividends and share repurchases stand suspended until September 2022, profiting from short-term dips remains a rational investment strategy for airline stocks.
United and American ended Q3 2021 with $14 billion and $24 billion of long-term debt (net of cash & cash equivalents), respectively.
Given United Airlines’ stronger balance sheet, we believe that the stock is a better pick over American Airlines. (related: American Airlines Stock To Tread Water?)
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
AAL Return 3% 3% -60%
UAL Return 7% 7% -36%
S&P 500 Return -2% -2% 108%
Trefis MS Portfolio Return -7% -7% 264%
[1] Month-to-date and year-to-date as of 1/18/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The shares of American Airlines (NASDAQ: AAL) have remained relatively level in recent months despite expectations of lukewarm travel demand in the near-term. Below you’ll find our previous coverage of AAL stock where you can track our view over time. The shares of American Airlines (NASDAQ: AAL) currently trade 35% below pre-Covid levels as compared to a 44% decline in United Airlines stock (NASDAQ: UAL).
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The shares of American Airlines (NASDAQ: AAL) have remained relatively level in recent months despite expectations of lukewarm travel demand in the near-term. Below you’ll find our previous coverage of AAL stock where you can track our view over time. The shares of American Airlines (NASDAQ: AAL) currently trade 35% below pre-Covid levels as compared to a 44% decline in United Airlines stock (NASDAQ: UAL).
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The shares of American Airlines (NASDAQ: AAL) have remained relatively level in recent months despite expectations of lukewarm travel demand in the near-term. Below you’ll find our previous coverage of AAL stock where you can track our view over time. The shares of American Airlines (NASDAQ: AAL) currently trade 35% below pre-Covid levels as compared to a 44% decline in United Airlines stock (NASDAQ: UAL).
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Total [2] AAL Return 3% 3% -60% UAL Return 7% 7% -36% S&P 500 Return -2% -2% 108% Trefis MS Portfolio Return -7% -7% 264% [1] Month-to-date and year-to-date as of 1/18/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The shares of American Airlines (NASDAQ: AAL) have remained relatively level in recent months despite expectations of lukewarm travel demand in the near-term. Below you’ll find our previous coverage of AAL stock where you can track our view over time.
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53542088-4ec3-4c45-9c73-13278f643666
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3857.0
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2022-01-19 00:00:00 UTC
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Affirm Stock: Bear vs. Bull
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AAL
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https://www.nasdaq.com/articles/affirm-stock%3A-bear-vs.-bull
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nan
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nan
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Affirm Holdings (NASDAQ: AFRM) lost more than 50% of its value over the past two months as rising interest rates caused investors to dump their pricier, more speculative, and unprofitable growth stocks.
Unfortunately for Affirm's investors, the "buy now, pay later" (BNPL) services provider checked all three boxes. It was valued at 36 times its estimated fiscal 2022 sales when it hit its all-time high last November, its long-term growth relies on its unproven ability to disrupt traditional credit card companies, and analysts don't expect it to turn a profit anytime soon.
But now that Affirm's stock has been cut in half, is it time to take a contrarian view? Let's review the bear and bull cases to find out.
Image source: Getty Images.
What the bears will tell you about Affirm
The bears claim Affirm's business is unsustainable for three reasons.
First, it already faces a lot of competitors in the BNPL space. PayPal (NASDAQ: PYPL) rolled out its own BNPL services in 2020, Block (NYSE: SQ) is in the process of acquiring the BNPL service Afterpay (OTC: AFTP.Y), which it will integrate into its Cash App, and smaller stand-alone players like Klarna are splitting up the rest of the market. PayPal and Block can also afford to offer their BNPL services at lower rates to tether more merchants and shoppers to their broader ecosystems.
Second, there's no clear path toward profitability as that competition intensifies. Affirm's net loss widened from $113 million in fiscal 2020 to $431 million in fiscal 2021, then widened again to $307 million -- compared to a loss of $3.9 million a year earlier -- in the first quarter of fiscal 2022 (period ending Sep. 30, 2021).
Affirm is challenging credit card companies by letting consumers break up purchases into smaller payments without hidden or late fees, by calculating interest payments based on a fixed dollar amount instead of compounding percentages, and charging merchants lower transaction fees. However, Affirm might need to eventually raise its fees for consumers and merchants to narrow its staggering losses, which would erode its defenses against competing BNPL services and credit card companies.
Lastly, BNPL payments are essentially "subprime microloans" for lower-income consumers, many of whom don't have adequate credit scores to be approved for traditional credit cards. Pursuing those subprime consumers in an inflation-battered economy is very risky, and a recent Credit Karma survey found that 34% of BNPL users had already fallen behind on at least one payment. If those delinquency rates continue rising, Affirm will need to significantly increase its provision for credit losses -- which already rose from 17% to 24% of its revenue between the first quarters of fiscal 2021 and 2022.
Affirm's stock still can't be considered cheap at 15 times this year's sales. Analysts expect Affirm's revenue to rise more than 40% in both fiscal 2022 and 2023, but it's easy to find other high-growth tech stocks -- like Sea Limited and MercadoLibre -- that are growing faster but trading at lower price-to-sales ratios.
What the bulls will tell you about Affirm
The bulls will point out that Affirm continues to gain big partners -- including Amazon (NASDAQ: AMZN), Walmart, Target, Peloton, Shopify (NYSE: SHOP), and American Airlines -- as they revolt against Visa (NYSE: V) and Mastercard's swipe fees.
Amazon notably started to block payments from Visa-branded cards in the U.K. just a few months after it partnered with Affirm. That move, which Amazon blamed on Visa's high swipe fees, indicates BNPL platforms could still disrupt traditional card-processing networks.
Affirm also continues to grow like a weed. Its number of active consumers soared 124% year-over-year to 8.7 million in the first quarter of 2022, and its network of merchants expanded from 6,500 to 102,000 as it gained tens of thousands of new merchants from Shopify.
The company's growth rates indicate there's still a fertile market for cheaper alternatives to traditional credit cards. That's why the global BNPL market might still expand at a compound annual growth rate of 22.4% from 2021 to 2028, according to Grand View Research, as Gen Z and Millennial consumers -- many of whom still can't qualify for credit cards with lower interest rates -- flock to seemingly cheaper services like Affirm.
If Affirm merely matches that projected growth rate, its revenue could more than quadruple from $870.5 million in fiscal 2021 to nearly $3.6 billion in fiscal 2028. Its gross margins could expand as economies of scale kick in, and its profitability could also improve as it reduces its stock-based compensation expenses, which still consumed a third of its revenue in fiscal 2021.
What I think about Affirm
Affirm enjoys an early-mover's advantage in a high-growth niche of the fintech market, and it's still expanding at an impressive rate. But, I think the competitive headwinds, widening losses, and rising delinquency rates are too difficult to ignore. This also isn't the kind of stock most investors want to own when inflation spikes and interest rates rise.
Therefore, investors should consider avoiding Affirm for now and stick with safer (and more profitable) fintech stocks like PayPal until the macro headwinds wane.
10 stocks we like better than Affirm Holdings, Inc.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun owns Amazon, Block, Inc., MercadoLibre, PayPal Holdings, and Sea Limited. The Motley Fool owns and recommends Affirm Holdings, Inc., Afterpay Limited, Amazon, Block, Inc., Mastercard, MercadoLibre, PayPal Holdings, Peloton Interactive, Sea Limited, Shopify, and Visa. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Affirm Holdings (NASDAQ: AFRM) lost more than 50% of its value over the past two months as rising interest rates caused investors to dump their pricier, more speculative, and unprofitable growth stocks. It was valued at 36 times its estimated fiscal 2022 sales when it hit its all-time high last November, its long-term growth relies on its unproven ability to disrupt traditional credit card companies, and analysts don't expect it to turn a profit anytime soon. Analysts expect Affirm's revenue to rise more than 40% in both fiscal 2022 and 2023, but it's easy to find other high-growth tech stocks -- like Sea Limited and MercadoLibre -- that are growing faster but trading at lower price-to-sales ratios.
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Leo Sun owns Amazon, Block, Inc., MercadoLibre, PayPal Holdings, and Sea Limited. The Motley Fool owns and recommends Affirm Holdings, Inc., Afterpay Limited, Amazon, Block, Inc., Mastercard, MercadoLibre, PayPal Holdings, Peloton Interactive, Sea Limited, Shopify, and Visa. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify.
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What the bulls will tell you about Affirm The bulls will point out that Affirm continues to gain big partners -- including Amazon (NASDAQ: AMZN), Walmart, Target, Peloton, Shopify (NYSE: SHOP), and American Airlines -- as they revolt against Visa (NYSE: V) and Mastercard's swipe fees. That's why the global BNPL market might still expand at a compound annual growth rate of 22.4% from 2021 to 2028, according to Grand View Research, as Gen Z and Millennial consumers -- many of whom still can't qualify for credit cards with lower interest rates -- flock to seemingly cheaper services like Affirm. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify.
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That's why the global BNPL market might still expand at a compound annual growth rate of 22.4% from 2021 to 2028, according to Grand View Research, as Gen Z and Millennial consumers -- many of whom still can't qualify for credit cards with lower interest rates -- flock to seemingly cheaper services like Affirm. 10 stocks we like better than Affirm Holdings, Inc. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Affirm Holdings, Inc. wasn't one of them!
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12d2373c-2563-4200-b7cc-d017d5fbafa5
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3858.0
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2022-01-19 00:00:00 UTC
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U.S. airlines report only minor impact from 5G deployment
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AAL
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https://www.nasdaq.com/articles/u.s.-airlines-report-only-minor-impact-from-5g-deployment
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nan
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nan
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By David Shepardson
WASHINGTON, Jan 19 (Reuters) - U.S. airlines said on Wednesday the rollout of new 5G services was having only a minor impact on air travel as the U.S. Federal Aviation Administration (FAA) said it has issued new approvals to allow more low-visibility landings.
The increased approvals for Boeing and Airbus planes meant an estimated 62% of U.S. commercial planes could perform bad-weather landings at some airports, up from 45% previously, the FAA said.
Many international carriers had canceled flights to the United States or switched aircraft on concerns that powerful signals from the 5G rollout, which began on Wednesday, could interfere with airplane systems.
AT&T T.N and Verizon Communications VZ.N agreed late Tuesday to delay switching on new telecom towers near key airports even as they turned on the new 5G C-Band service.
The FAA early Wednesday cleared aircraft using another three radio altimeters, which are used to give data on height above grounds for bad-weather landings. It approved two others earlier.
American Airlines AAL.O said it had seen a "minor operational impact" including some delays and four cancellations as a result of the new 5G service and some additional impact to its regional fleets.
It expected the FAA to soon issue additional approvals "for our Airbus and regional fleets."
United Airlines UAL.N said it anticipated "minor disruptions at some airports due to the remaining 5G restrictions."
Southwest Airlines LUV.N said that initially "because of favorable weather conditions, we anticipate very minimal impact on our operation."
Airplane models with one of the five cleared altimeters include some Boeing BA.N 717, 737, 747, 757, 767, 777, MD-10/-11 and Airbus AIR.PA A300, A310, A319, A320, A330, A340, A350 and A380 models, the FAA said.
"Even with these approvals, flights at some airports may still be affected," it cautioned.
President Joe Biden on Wednesday said he had "pushed as hard I can to have the 5G folks hold up and abide by what was being requested by the airlines."
Verizon will temporarily not turn on about 500 towers near airports, sources told Reuters, or less than 10% of their planned deployment, while the carriers and the administration work on a permanent solution.
Verizon Chief Executive Hans Vestberg told CNBC Wednesday he was confident a review of the aviation concerns around those towers near airports will "go fast."
(Reporting by David Shepardson Editing by Chris Reese and Richard Pullin)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O said it had seen a "minor operational impact" including some delays and four cancellations as a result of the new 5G service and some additional impact to its regional fleets. By David Shepardson WASHINGTON, Jan 19 (Reuters) - U.S. airlines said on Wednesday the rollout of new 5G services was having only a minor impact on air travel as the U.S. Federal Aviation Administration (FAA) said it has issued new approvals to allow more low-visibility landings. Many international carriers had canceled flights to the United States or switched aircraft on concerns that powerful signals from the 5G rollout, which began on Wednesday, could interfere with airplane systems.
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American Airlines AAL.O said it had seen a "minor operational impact" including some delays and four cancellations as a result of the new 5G service and some additional impact to its regional fleets. It expected the FAA to soon issue additional approvals "for our Airbus and regional fleets." Airplane models with one of the five cleared altimeters include some Boeing BA.N 717, 737, 747, 757, 767, 777, MD-10/-11 and Airbus AIR.PA A300, A310, A319, A320, A330, A340, A350 and A380 models, the FAA said.
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American Airlines AAL.O said it had seen a "minor operational impact" including some delays and four cancellations as a result of the new 5G service and some additional impact to its regional fleets. By David Shepardson WASHINGTON, Jan 19 (Reuters) - U.S. airlines said on Wednesday the rollout of new 5G services was having only a minor impact on air travel as the U.S. Federal Aviation Administration (FAA) said it has issued new approvals to allow more low-visibility landings. The increased approvals for Boeing and Airbus planes meant an estimated 62% of U.S. commercial planes could perform bad-weather landings at some airports, up from 45% previously, the FAA said.
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American Airlines AAL.O said it had seen a "minor operational impact" including some delays and four cancellations as a result of the new 5G service and some additional impact to its regional fleets. "Even with these approvals, flights at some airports may still be affected," it cautioned. Verizon will temporarily not turn on about 500 towers near airports, sources told Reuters, or less than 10% of their planned deployment, while the carriers and the administration work on a permanent solution.
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a6940643-6ddf-4418-84bd-601fb49489b6
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3859.0
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2022-01-19 00:00:00 UTC
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Pre-Market Earnings Report for January 20, 2022 : UNP, TRV, FITB, NTRS, KEY, RF, MTB, BKR, AAL, FHN, SNV, WBS
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AAL
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-january-20-2022-%3A-unp-trv-fitb-ntrs-key-rf-mtb-bkr-aal-fhn
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nan
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nan
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The following companies are expected to report earnings prior to market open on 01/20/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Union Pacific Corporation (UNP)is reporting for the quarter ending December 31, 2021. The transportation (rail) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.60. This value represents a 10.17% increase compared to the same quarter last year. UNP missed the consensus earnings per share in the 1st calendar quarter of 2021 by -2.91%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for UNP is 24.04 vs. an industry ratio of 7.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The Travelers Companies, Inc. (TRV)is reporting for the quarter ending December 31, 2021. The insurance (property & casualty) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $3.86. This value represents a 21.38% decrease compared to the same quarter last year. In the past year TRV has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 30%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TRV is 12.97 vs. an industry ratio of 13.10.
Fifth Third Bancorp (FITB)is reporting for the quarter ending December 31, 2021. The bank company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.91. This value represents a 3.41% increase compared to the same quarter last year. In the past year FITB has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 3.3%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for FITB is 13.20 vs. an industry ratio of 13.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Northern Trust Corporation (NTRS)is reporting for the quarter ending December 31, 2021. The bank company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.82. This value represents a 22.15% increase compared to the same quarter last year. NTRS missed the consensus earnings per share in the 4th calendar quarter of 2020 by -1.97%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for NTRS is 18.60 vs. an industry ratio of 13.00, implying that they will have a higher earnings growth than their competitors in the same industry.
KeyCorp (KEY)is reporting for the quarter ending December 31, 2021. The bank company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.57. This value represents a 1.79% increase compared to the same quarter last year. In the past year KEY has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 14.04%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for KEY is 10.43 vs. an industry ratio of 13.00.
Regions Financial Corporation (RF)is reporting for the quarter ending December 31, 2021. The banks (southeast) company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.49. This value represents a 20.97% decrease compared to the same quarter last year. In the past year RF has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 24.53%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for RF is 9.73 vs. an industry ratio of 12.80.
M&T Bank Corporation (MTB)is reporting for the quarter ending December 31, 2021. The bank company's consensus earnings per share forecast from the 6 analysts that follow the stock is $3.29. This value represents a 7.06% decrease compared to the same quarter last year. MTB missed the consensus earnings per share in the 2nd calendar quarter of 2021 by -6.76%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for MTB is 13.16 vs. an industry ratio of 13.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Baker Hughes Company (BKR)is reporting for the quarter ending December 31, 2021. The oil (field services) company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.29. This value represents a 514.29% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for BKR is 41.23 vs. an industry ratio of 51.00.
American Airlines Group, Inc. (AAL)is reporting for the quarter ending December 31, 2021. The airline company's consensus earnings per share forecast from the 9 analysts that follow the stock is $-1.54. This value represents a 60.10% increase compared to the same quarter last year. In the past year AAL has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 4.81%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AAL is -2.11 vs. an industry ratio of 5.10.
First Horizon Corporation (FHN)is reporting for the quarter ending December 31, 2021. The bank (southwest) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.38. This value represents a 17.39% decrease compared to the same quarter last year. In the past year FHN has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 21.95%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for FHN is 9.34 vs. an industry ratio of 14.20.
Synovus Financial Corp. (SNV)is reporting for the quarter ending December 31, 2021. The banks (southeast) company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.10. This value represents a 1.85% increase compared to the same quarter last year. In the past year SNV has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 12.15%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for SNV is 11.23 vs. an industry ratio of 12.80.
Webster Financial Corporation (WBS)is reporting for the quarter ending December 31, 2021. The bank (northeast) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.10. This value represents a 11.11% increase compared to the same quarter last year. WBS missed the consensus earnings per share in the 3rd calendar quarter of 2021 by -0.92%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for WBS is 13.67 vs. an industry ratio of 12.40, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and 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 reporting for the quarter ending December 31, 2021. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AAL is -2.11 vs. an industry ratio of 5.10.
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American Airlines Group, Inc. (AAL)is reporting for the quarter ending December 31, 2021. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AAL is -2.11 vs. an industry ratio of 5.10.
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American Airlines Group, Inc. (AAL)is reporting for the quarter ending December 31, 2021. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AAL is -2.11 vs. an industry ratio of 5.10.
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American Airlines Group, Inc. (AAL)is reporting for the quarter ending December 31, 2021. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AAL is -2.11 vs. an industry ratio of 5.10.
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c0c1d70f-35b2-4099-a57f-c167dc049d10
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3860.0
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2022-01-18 00:00:00 UTC
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U.S. FAA halts review of FedEx proposal to install A321 laser-based missile-defense system
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-halts-review-of-fedex-proposal-to-install-a321-laser-based-missile-defense-0
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nan
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By David Shepardson
WASHINGTON, Jan 18 (Reuters) - The Federal Aviation Administration (FAA) said on Tuesday it was withdrawing proposed conditions that could have allowed delivery company FedEx Corp FDX.Nto install a laser-based missile-defense on Airbus A321-200 airplanes.
The FAA said Tuesday it "has determined that further internal study is necessary." The FAA said to avoid confusion "a comment period on a proposal that the agency is not moving forward at this time, the FAA is withdrawing the notice." FedEx did not comment Tuesday and the FAA declined comment beyond the withdrawal.
The FAA had said on Friday it was proposing conditions and opening the proposal for public comment.
In October, 2019, FedEx applied for approval to use a feature that emits infrared laser energy outside the aircraft as a countermeasure against heat-seeking missiles, the FAA disclosed Friday.
For decades, the airline industry and several governments have been grappling with the threat to airliners from shoulder-fired missiles known as Man-Portable Air Defense Systems, or MANPADs. Some use infrared systems to target an aircraft's engines.
"The FedEx missile-defense system directs infrared laser energy toward an incoming missile, in an effort to interrupt
the missile’s tracking of the aircraft’s heat," the FAA document said.
According to the U.S. State Department, more than 40 civil airplanes have been hit by MANPADs since the 1970s.
In November 2002, two missiles narrowly missed an Arkia Israeli Airlines Boeing 757 passenger jet on take-off from Mombasa airport, and efforts to combat the threat accelerated.
In 2003, an Airbus A300 freighter flown by DHL was damaged by MANPADs and forced to make an emergency landing in Baghdad.
In 2007 and 2008, FedEx took part in a U.S. government trial of anti-missile technology for civil planes by installing Northrop Grumman's NOC.N Guardian countermeasures system on some commercial cargo flights while BAE Systems BAES.L said it had installed its JetEye system on an American Airlines airplane.
(Reporting by David Shepardson Editing by Chizu Nomiyama and David Gregorio)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, Jan 18 (Reuters) - The Federal Aviation Administration (FAA) said on Tuesday it was withdrawing proposed conditions that could have allowed delivery company FedEx Corp FDX.Nto install a laser-based missile-defense on Airbus A321-200 airplanes. In October, 2019, FedEx applied for approval to use a feature that emits infrared laser energy outside the aircraft as a countermeasure against heat-seeking missiles, the FAA disclosed Friday. In November 2002, two missiles narrowly missed an Arkia Israeli Airlines Boeing 757 passenger jet on take-off from Mombasa airport, and efforts to combat the threat accelerated.
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By David Shepardson WASHINGTON, Jan 18 (Reuters) - The Federal Aviation Administration (FAA) said on Tuesday it was withdrawing proposed conditions that could have allowed delivery company FedEx Corp FDX.Nto install a laser-based missile-defense on Airbus A321-200 airplanes. In October, 2019, FedEx applied for approval to use a feature that emits infrared laser energy outside the aircraft as a countermeasure against heat-seeking missiles, the FAA disclosed Friday. "The FedEx missile-defense system directs infrared laser energy toward an incoming missile, in an effort to interrupt the missile’s tracking of the aircraft’s heat," the FAA document said.
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By David Shepardson WASHINGTON, Jan 18 (Reuters) - The Federal Aviation Administration (FAA) said on Tuesday it was withdrawing proposed conditions that could have allowed delivery company FedEx Corp FDX.Nto install a laser-based missile-defense on Airbus A321-200 airplanes. "The FedEx missile-defense system directs infrared laser energy toward an incoming missile, in an effort to interrupt the missile’s tracking of the aircraft’s heat," the FAA document said. In 2007 and 2008, FedEx took part in a U.S. government trial of anti-missile technology for civil planes by installing Northrop Grumman's NOC.N Guardian countermeasures system on some commercial cargo flights while BAE Systems BAES.L said it had installed its JetEye system on an American Airlines airplane.
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By David Shepardson WASHINGTON, Jan 18 (Reuters) - The Federal Aviation Administration (FAA) said on Tuesday it was withdrawing proposed conditions that could have allowed delivery company FedEx Corp FDX.Nto install a laser-based missile-defense on Airbus A321-200 airplanes. FedEx did not comment Tuesday and the FAA declined comment beyond the withdrawal. In 2007 and 2008, FedEx took part in a U.S. government trial of anti-missile technology for civil planes by installing Northrop Grumman's NOC.N Guardian countermeasures system on some commercial cargo flights while BAE Systems BAES.L said it had installed its JetEye system on an American Airlines airplane.
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e9319937-d067-460e-9827-85b4ce0472ee
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3861.0
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2022-01-18 00:00:00 UTC
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Biden administration in talks to head off 5G aviation standoff
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AAL
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https://www.nasdaq.com/articles/biden-administration-in-talks-to-head-off-5g-aviation-standoff-0
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nan
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By David Shepardson
WASHINGTON, Jan 18 (Reuters) - The Biden administration is working with wireless carriers, airlines, airplane manufacturers and key federal agencies to resolve a looming aviation crisis, a senior administration official told Reuters.
Airlines are preparing to cancel a significant number of passenger and cargo flights in the coming hours to prepare for AT&T T.N and Verizon's VZ.N new 5G C-Band service that starts on Wednesday, after warning on Monday of "catastrophic" impacts.
Airlines want wireless carriers to not turn on some wireless towers near airport runways in a bid to avoid most of the flight disruptions.
The White House wants "a solution that maximizes 5G deployment while protecting air safety and minimizing disruptions to passenger travel, cargo operations, and our economic recovery," the official said.
The Federal Aviation Administration (FAA) has warned that potential interference could affect sensitive airplane instruments such as altimeters and significantly hamper low-visibility operations.
The airlines asked Sunday "that 5G be implemented everywhere in the country except within the approximate 2 miles (3.2 km) of airport runways" at some key airports.
Discussions are centered around that proposal that would also allow about 90% of the wireless tower deployment to go forward, sources told Reuters, though it would impact 5G deployment near many large population centers.
Two other sources said it would require delaying about 500 towers from being activated.
Alaska Airlines ALK.N Chief Executive Ben Minicucci said Tuesday in a statement "there’s a serious threat of mounting cancellations, delays and diversions of our passenger and cargo flights if action is not taken immediately."
AT&T and Verizon, which won significant C-Band spectrum in an $80 billion auction last year, on Jan. 3 agreed to buffer zones around 50 airports to reduce interference risks and take other steps to cut potential interference for six months. They also agreed to delay deployment for two weeks until Wednesday.
But any deal would require Verizon and AT&T to agree to a new delay of some 5G service. They did not comment Tuesday.
Verizon Chief Executive Hans Vestberg told employees on Jan. 4 the carrier saw no aviation safety issue with 5G, but reluctantly agreed to a two-week delay that expires Wednesday.
The chief executives of major U.S. passenger and cargo carriers on Monday said new 5G service could render a significant number of widebody aircraft unusable, "could potentially strand tens of thousands of Americans overseas" and cause chaos for U.S. flights.
"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others.
EXPLAINER-Do 5G telecoms pose a threat to airline safety?
Major U.S. airlines warn 5G could ground some planes, wreak havoc
(Reporting by David Shepardson; Editing by Lisa Shumaker)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others. The White House wants "a solution that maximizes 5G deployment while protecting air safety and minimizing disruptions to passenger travel, cargo operations, and our economic recovery," the official said. Alaska Airlines ALK.N Chief Executive Ben Minicucci said Tuesday in a statement "there’s a serious threat of mounting cancellations, delays and diversions of our passenger and cargo flights if action is not taken immediately."
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others. By David Shepardson WASHINGTON, Jan 18 (Reuters) - The Biden administration is working with wireless carriers, airlines, airplane manufacturers and key federal agencies to resolve a looming aviation crisis, a senior administration official told Reuters. Airlines are preparing to cancel a significant number of passenger and cargo flights in the coming hours to prepare for AT&T T.N and Verizon's VZ.N new 5G C-Band service that starts on Wednesday, after warning on Monday of "catastrophic" impacts.
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others. Airlines are preparing to cancel a significant number of passenger and cargo flights in the coming hours to prepare for AT&T T.N and Verizon's VZ.N new 5G C-Band service that starts on Wednesday, after warning on Monday of "catastrophic" impacts. Alaska Airlines ALK.N Chief Executive Ben Minicucci said Tuesday in a statement "there’s a serious threat of mounting cancellations, delays and diversions of our passenger and cargo flights if action is not taken immediately."
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others. Discussions are centered around that proposal that would also allow about 90% of the wireless tower deployment to go forward, sources told Reuters, though it would impact 5G deployment near many large population centers. Alaska Airlines ALK.N Chief Executive Ben Minicucci said Tuesday in a statement "there’s a serious threat of mounting cancellations, delays and diversions of our passenger and cargo flights if action is not taken immediately."
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f17205ee-dea9-436f-bfb7-768d1d39cbe2
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3862.0
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2022-01-18 00:00:00 UTC
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Will The Tide Turn For JetBlue Airways Stock?
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AAL
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https://www.nasdaq.com/articles/will-the-tide-turn-for-jetblue-airways-stock
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nan
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The shares of JetBlue Airways (NASDAQ: JBLU) are trading 30% below pre-Covid levels despite relatively high passenger numbers at TSA checkpoints due to the anticipation of a prolonged dip in air travel demand. However, investors have been optimistic on Atlas Air stock (NASDAQ: AAWW), a global provider of leased aircraft and aviation operating services. Last year, Atlas Air stock surged 60% assisted by a strong air freight market where demand exceeded pre-pandemic levels. Atlas Air provides air cargo services whereas JetBlue serves passenger demand. While both companies cater to different customer groups, domestic cargo & passenger demand are key macroeconomic factors driving their top line. Does the optimism in Atlas Air stock indicate an upcoming surge in the air travel market? We compare the historical trends in revenues, margins, and valuation multiple of both companies in an interactive dashboard analysis, JetBlue Airways vs. Atlas Air – parts of which are highlighted below.
1. Revenue Growth
Atlas Air’s growth was higher than JetBlue’s before the pandemic, with Atlas Air’s revenues expanding by 14% p.a. from $1.8 billion in 2016 to $3.2 billion in 2019. JetBlue’s revenues grew by at an average rate of 7% p.a. from $6.6 billion in 2016 to $8.1 billion in 2019. JetBlue Airways reported a 60% top-line contraction in 2020 whereas Atlas Air observed a 17% growth.
Atlas Air segregates its operations into three segments, ACMI & CMI, Charter, and Dry Leasing. The ACMI segment provides cargo and passenger aircraft operating solutions including aircraft, crew, and maintenance, while customers take care of fuel, landing, navigation, and other costs. The CMI segment is similar to ACMI except that the aircraft is not provided by Atlas. The Charter segment provides a complete package where the customer pays a fixed fee that includes fuel, insurance, landing, navigation, etc.
The company’s ACMI, Charter, Dry Leasing, and Other segments contribute 37%, 57%, 5%, and 1% of total operating revenues, respectively. In the last few years, Atlas Air’s growth has been majorly driven by the Charter segment, which has more than doubled since 2016.
JetBlue Airways primarily earns its revenues from the sale of air tickets and other ancillary services such as freight & mail. In the past few years, continued capacity growth along with rising ticket prices have been key contributors assisting topline expansion.
JetBlue’s domestic business contributes a bulk of the revenues and has been the major factor strengthening investor confidence in recent months. (related: Optimism In Estee Lauder Stock A Trigger For Delta Air Lines?)
2. Returns (Profits)
Coming to profitability, both companies have been reporting comparable net margin and operating cash margin in the past few years.
In 2018, Atlas Air reported net income margin and operating cash margin of 10% and 16%, respectively. The company generated $425 million of operating cash on operating revenue of $2.6 billion. Subsequently, invested $713 million in property, plant & equipment and raised $216 million in long-term debt.
Whereas, JetBlue Airways reported net income margin and operating cash margin of 2% and 16%, respectively. The company generated $1.2 billion of operating cash on revenues of $7.6 billion. Subsequently, invested $908 million in property, plant & equipment and returned $382 million to investors in share repurchases.
Both companies have been following an almost similar capital investment plan by re-investing a sizable portion of operating cash into the business.
Despite having a different target customer profile, B2C for JetBlue Airways and B2B for Atlas Air, the ratio of fixed assets (property, plant & equipment and operating leases) to total assets is comparable at 66%.
3. Risk
Atlas Air and JetBlue are similar from the perspective of financial leverage.
Financial leverage coupled with strong topline growth is a boon for investors. However, high interest expenses weigh on the bottom line if growth stalls.
In 2020, Atlas Air and JetBlue reported $2.3 billion and $4.4 billion of long-term debt, respectively. With $3 billion of cash & short-term investments, JetBlue has $1.4 billion of net debt.
Similarly, the $845 million of cash & short-term investments on Atlas Air’s balance sheet results in $1 billion of net debt. (related: Air Travel Demand To Push Boeing Stock Higher?)
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
JBLU Return 5% 5% -33%
AAWW Return -7% -7% 67%
S&P 500 Return -2% -2% 109%
Trefis MS Portfolio Return -4% -4% 276%
[1] Month-to-date and year-to-date as of 1/12/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The shares of JetBlue Airways (NASDAQ: JBLU) are trading 30% below pre-Covid levels despite relatively high passenger numbers at TSA checkpoints due to the anticipation of a prolonged dip in air travel demand. While both companies cater to different customer groups, domestic cargo & passenger demand are key macroeconomic factors driving their top line. We compare the historical trends in revenues, margins, and valuation multiple of both companies in an interactive dashboard analysis, JetBlue Airways vs. Atlas Air – parts of which are highlighted below.
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Last year, Atlas Air stock surged 60% assisted by a strong air freight market where demand exceeded pre-pandemic levels. In 2018, Atlas Air reported net income margin and operating cash margin of 10% and 16%, respectively. Despite having a different target customer profile, B2C for JetBlue Airways and B2B for Atlas Air, the ratio of fixed assets (property, plant & equipment and operating leases) to total assets is comparable at 66%.
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Revenue Growth Atlas Air’s growth was higher than JetBlue’s before the pandemic, with Atlas Air’s revenues expanding by 14% p.a. In 2020, Atlas Air and JetBlue reported $2.3 billion and $4.4 billion of long-term debt, respectively. Total [2] JBLU Return 5% 5% -33% AAWW Return -7% -7% 67% S&P 500 Return -2% -2% 109% Trefis MS Portfolio Return -4% -4% 276% [1] Month-to-date and year-to-date as of 1/12/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Atlas Air provides air cargo services whereas JetBlue serves passenger demand. Revenue Growth Atlas Air’s growth was higher than JetBlue’s before the pandemic, with Atlas Air’s revenues expanding by 14% p.a. Similarly, the $845 million of cash & short-term investments on Atlas Air’s balance sheet results in $1 billion of net debt.
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f7172ce9-ca70-4d42-9ba3-e5a954ff726e
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3863.0
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2022-01-18 00:00:00 UTC
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Travel Demand Aids American Airlines (AAL) Amid High Fuel Cost
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AAL
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https://www.nasdaq.com/articles/travel-demand-aids-american-airlines-aal-amid-high-fuel-cost
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We have recently updated a report on American Airlines Group Inc. AAL.
Owing to an improvement in air-travel demand in the United States, American Airlines witnessed a 20% sequential increase in third-quarter 2021 passenger revenues. With economic activities picking up, passenger revenues (up 56.1% in the first nine months of 2021) have been increasing from the beginning of 2021 itself.
The carrier's debt-reduction efforts are impressive as well. Management aims to lower debt by $15 billion by 2025-end. The company aims to attain this objective through naturally-occurring amortization. Also, it intends to utilize surplus cash and free cash flow to pay down prepayable debt. In third-quarter 2021, American Airlines prepaid its entire $950 million spare parts term loan facility. During the September quarter, the carrier scheduled debt amortization payments of approximately $649 million and unencumbered 20 Boeing 777-200 aircraft.
The current scenario of rising fuel costs does not bode well for the airline. During the third quarter, the average fuel price per gallon (including related taxes) climbed to $2.07 from $1.23 a year ago as oil prices moved north. With oil prices continuing to move up, the company estimates the average fuel price per gallon to increase to $2.36 in the fourth quarter.
Zacks Rank & Stocks to Consider
American Airlines currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.
Some better-ranked stocks in the broader Zacks Transportation sector are J.B. Hunt Transport Services JBHT, FedEx Corporation FDX and Schneider National SNDR.
The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. JBHT is benefiting from strong performances across all its segments. The Dedicated Contract Services (DCS) unit is being aided by fleet-productivity improvement and a rise in average revenue-producing trucks. The Integrated Capacity Solutions (ICS) unit is gaining from a favorable customer freight mix as well as higher contractual and spot rates.
JBHT’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has increased 36.1% in the past year. J.B. Hunt currently carries a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for FedEx is pegged at 12%. FDX is benefitting from a surge in e-commerce demand amid the pandemic.
FDX exited first-quarter fiscal 2022 with cash and equivalents of $6,853 million, much higher than its current debt of $125 million. Driven by the tailwinds, the stock has moved up 2.7% in the past year. FedEx currently carries a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Schneider is pegged at 20.7%. SNDR benefits from strong performance in the Intermodal and Logistics units.
SNDR’s third-quarter cash balance is also encouraging. Driven by the tailwinds, the stock has moved up 13.7% in the past year. Schneider currently carries a Zacks Rank #2.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
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J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report
FedEx Corporation (FDX): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Schneider National, Inc. (SNDR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We have recently updated a report on American Airlines Group Inc. AAL. American Airlines Group Inc. (AAL): Free Stock Analysis Report Owing to an improvement in air-travel demand in the United States, American Airlines witnessed a 20% sequential increase in third-quarter 2021 passenger revenues.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report We have recently updated a report on American Airlines Group Inc. AAL. Some better-ranked stocks in the broader Zacks Transportation sector are J.B. Hunt Transport Services JBHT, FedEx Corporation FDX and Schneider National SNDR.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report We have recently updated a report on American Airlines Group Inc. AAL. Zacks Rank & Stocks to Consider American Airlines currently carries a Zacks Rank #3 (Hold).
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We have recently updated a report on American Airlines Group Inc. AAL. American Airlines Group Inc. (AAL): Free Stock Analysis Report Zacks Rank & Stocks to Consider American Airlines currently carries a Zacks Rank #3 (Hold).
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6a75c108-811e-42b6-b8d5-6a64d15f49e5
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3864.0
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2022-01-18 00:00:00 UTC
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The Zacks Analyst Blog Highlights: The PNC Financial Services Group Inc., United Airlines Holdings Inc., Discover Financial Services, The Travelers Companies Inc. and American Airlines Group Inc
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-the-pnc-financial-services-group-inc.-united-airlines
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For Immediate Release
Chicago, IL – January 18, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The PNC Financial Services Group Inc. PNC, United Airlines Holdings Inc. UAL, Discover Financial Services DFS, The Travelers Companies Inc. TRV and American Airlines Group Inc. AAL.
Here are highlights from Monday’s Analyst Blog:
5 Large-Cap Stocks Likely to Gain from Q4 Earnings This Week
The fourth-quarter 2021 earnings season picked up momentum from Jan 14 as banking behemoths started releasing their financial numbers. The last quarter was an impressive one for Wall Street. The termination of fiscal stimulus, reduction in monetary stimulus, soaring inflation and the resurgence of coronavirus failed to derail the U.S. stock market’s northbound journey.
Five large-cap companies — The PNC Financial Services Group Inc., United Airlines Holdings Inc., Discover Financial Services, The Travelers Companies Inc. and American Airlines Group Inc. — are slated to release their fourth-quarter 2021 earnings results this week. These stocks are likely to gain in the near term, buoyed by their possible earnings beat
Good Start to Fourth-Quarter Earnings
As of Jan 14, 26 S&P 500 companies have reported fourth-quarter 2021 results. Total earnings of these companies are up 19.2% year over year on 11.7% higher revenues with 88.5% beating EPS estimates and 84.6% surpassing revenue estimates.
Total fourth-quarter earnings of the market's benchmark — the S&P 500 Index — are projected to climb 20.9% from the same period last year on 11.7% higher revenues, following 41.4% year-over-year earnings growth on 17.4% higher revenues in the third quarter, 95% year-over-year earnings growth on 25.3% higher revenues in the second quarter and 49.3% year-over-year earnings growth on 10.3% higher revenues in first-quarter 2021.
The first three quarters of this year were favorably impacted since the preceding quarters of last year were affected by the pandemic-induced lockdowns and restrictions. However, the U.S. economy started reopening at a very slow pace since the beginning of the fourth quarter of 2020.
Stocks in Focus
Five large-cap (market capital > $12 billion) companies will report fourth-quarter 2021 earnings results this week. Each of these stocks carries a Zacks Rank #3 (Hold) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The PNC Financial Services Group is one of the largest diversified financial services institutions in the United States. Going forward, the focus to expand the middle-market lending franchise, and bolster digital products and service offerings should drive PNC’s bottom-line growth.
Growing loan and deposit balances highlight a strong balance-sheet position of PNC. This further supports its inorganic expansion strategies, thereby positioning PNC Financial Services well for bottom-line growth. Its sound capital-deployment activities are likely to instill confidence in the stock.
PNC Financial Services has an Earnings ESP of +2.29%. The Zacks Consensus Estimate for current-year earnings improved 0.1% over the last 7 days. PNC recorded earnings surprises in the last four reported quarters, with an average beat of 29.4%. PNC Financial Services is set to release earnings results on Jan 18, before the opening bell.
The Travelers Companies boasts a strong market presence in auto, homeowners’ insurance, commercial U.S. property-casualty insurance with solid inorganic growth. A high retention rate, increase in new business and positive renewal premium change bode well. TRV’s commercial businesses should perform well, owing to market stability.
The Travelers Companies remains optimistic about the personal line of business, given growth at the profitable agency auto and homeowners business. TRV expects net investment income from non-fixed income portfolio to be $420 million to $430 million quarterly in 2022. Sufficient capital boosts shareholder value.
The Travelers Companies has an Earnings ESP of +3.21%. It has an expected earnings growth rate of 0.2% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 7 days.
TRV recorded earnings surprises in the last four reported quarters, with an average beat of 38.1%. The Travelers Companies is set to release earnings results on Jan 20, before the opening bell.
United Airlines Holdings provides air transportation services in North America, Asia, Europe, the Middle East, and Latin America. UAL transports people and cargo through its mainline and regional operations.
United Airlines aims to become 100% green by 2050. The carrier's focus on its cargo unit is also encouraging. Moreover, UAL’s cost-control efforts are supporting its bottom line. United Airlines expects 2022 CASM-excluding fuel, profit sharing, third-party business expenses and special charges to be lower than 2019 levels.
UAL has an Earnings ESP of +7.04%. It has an expected earnings growth rate of more than 100% for the current year. United Airlines recorded earnings surprises in two of the last four reported quarters, with an average beat of 7.5%. UAL is set to release earnings results on Jan 19, after the closing bell.
Discover Financial Services is a direct banking and payment services company in the United States. DFS operates through two segments — Direct Banking and Payment Services. Expansion in the global payments business and an attractive core business position the company well for growth.
A gradual economic recovery and improved consumer spending have been providing a boost to DFS’ sales volume. Its strong balance sheet is another positive, highlighted by its cash and investment securities that are higher than long-term borrowings. Discover Financial Services’ banking business provides significant diversification benefits. A solid financial position enables DFS to deploy capital via buybacks and dividends.
Discover Financial Services has an Earnings ESP of +4.74%. The Zacks Consensus Estimate for current-year earnings improved 0.4% over the last 7 days. DFS recorded earnings surprises in the last four reported quarters, with an average beat of 34.7%. Discover Financial Services is set to release earnings results on Jan 19, after the closing bell.
American Airlines Group attracted significant traffic during the Thanksgiving holiday period. With air-travel demand continuing to recover in the United States despite the threat posed by the omicron variant, American Airlines’ passenger revenues increased 56.1% year over year in the first nine months of 2021.
AAL’s debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion within 2025. American Airlines’ codeshare agreement with Indian low-cost airline, IndiGo, is an added positive.
AAL has an Earnings ESP of +7.40%. It has an expected earnings growth rate of 96.8% for the current year. It recorded earnings surprises in the last four reported quarters, with an average beat of 3.3%. American Airlines is set to releaseearnings results on Jan 20, before the opening bell.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
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See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report
Discover Financial Services (DFS): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: The PNC Financial Services Group Inc. PNC, United Airlines Holdings Inc. UAL, Discover Financial Services DFS, The Travelers Companies Inc. TRV and American Airlines Group Inc. AAL. AAL’s debt-reduction efforts are impressive as well. AAL has an Earnings ESP of +7.40%.
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Stocks recently featured in the blog include: The PNC Financial Services Group Inc. PNC, United Airlines Holdings Inc. UAL, Discover Financial Services DFS, The Travelers Companies Inc. TRV and American Airlines Group Inc. AAL. AAL’s debt-reduction efforts are impressive as well. AAL has an Earnings ESP of +7.40%.
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Stocks recently featured in the blog include: The PNC Financial Services Group Inc. PNC, United Airlines Holdings Inc. UAL, Discover Financial Services DFS, The Travelers Companies Inc. TRV and American Airlines Group Inc. AAL. AAL’s debt-reduction efforts are impressive as well. AAL has an Earnings ESP of +7.40%.
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Stocks recently featured in the blog include: The PNC Financial Services Group Inc. PNC, United Airlines Holdings Inc. UAL, Discover Financial Services DFS, The Travelers Companies Inc. TRV and American Airlines Group Inc. AAL. AAL’s debt-reduction efforts are impressive as well. AAL has an Earnings ESP of +7.40%.
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6bec50dc-7301-4f71-9956-3b53abf5c400
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3865.0
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2022-01-18 00:00:00 UTC
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China aviation regulator suspends eight more incoming U.S. flights
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AAL
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https://www.nasdaq.com/articles/china-aviation-regulator-suspends-eight-more-incoming-u.s.-flights
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nan
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BEIJING, Jan 18 (Reuters) - China's aviation regulator on Tuesday suspended another eight incoming U.S. flights by U.S. airlines, bringing the total cancellation this year to 84, based on a Reuters tally.
The Civil Aviation Administration of China ordered United Airlines UALCO.UL to suspend four more flights from San Francisco to Shanghai over COVID-19 cases, while ordering Delta Air Lines DAL.N to cancel two flights from Seattle to Shanghai from the week of Jan. 31.
Two Dallas-to-Shanghai flights from American Airlines AAL.O will be cancelled from Feb. 21 over COVID-19 cases, the regulator said.
(Reporting by Stella Qiu and Ryan Woo, Editing by Louise Heavens)
((yifan.qiu@thomsonreuters.com; 86-10-66271289;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two Dallas-to-Shanghai flights from American Airlines AAL.O will be cancelled from Feb. 21 over COVID-19 cases, the regulator said. BEIJING, Jan 18 (Reuters) - China's aviation regulator on Tuesday suspended another eight incoming U.S. flights by U.S. airlines, bringing the total cancellation this year to 84, based on a Reuters tally. The Civil Aviation Administration of China ordered United Airlines UALCO.UL to suspend four more flights from San Francisco to Shanghai over COVID-19 cases, while ordering Delta Air Lines DAL.N to cancel two flights from Seattle to Shanghai from the week of Jan. 31.
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Two Dallas-to-Shanghai flights from American Airlines AAL.O will be cancelled from Feb. 21 over COVID-19 cases, the regulator said. BEIJING, Jan 18 (Reuters) - China's aviation regulator on Tuesday suspended another eight incoming U.S. flights by U.S. airlines, bringing the total cancellation this year to 84, based on a Reuters tally. The Civil Aviation Administration of China ordered United Airlines UALCO.UL to suspend four more flights from San Francisco to Shanghai over COVID-19 cases, while ordering Delta Air Lines DAL.N to cancel two flights from Seattle to Shanghai from the week of Jan. 31.
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Two Dallas-to-Shanghai flights from American Airlines AAL.O will be cancelled from Feb. 21 over COVID-19 cases, the regulator said. BEIJING, Jan 18 (Reuters) - China's aviation regulator on Tuesday suspended another eight incoming U.S. flights by U.S. airlines, bringing the total cancellation this year to 84, based on a Reuters tally. The Civil Aviation Administration of China ordered United Airlines UALCO.UL to suspend four more flights from San Francisco to Shanghai over COVID-19 cases, while ordering Delta Air Lines DAL.N to cancel two flights from Seattle to Shanghai from the week of Jan. 31.
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Two Dallas-to-Shanghai flights from American Airlines AAL.O will be cancelled from Feb. 21 over COVID-19 cases, the regulator said. BEIJING, Jan 18 (Reuters) - China's aviation regulator on Tuesday suspended another eight incoming U.S. flights by U.S. airlines, bringing the total cancellation this year to 84, based on a Reuters tally. The Civil Aviation Administration of China ordered United Airlines UALCO.UL to suspend four more flights from San Francisco to Shanghai over COVID-19 cases, while ordering Delta Air Lines DAL.N to cancel two flights from Seattle to Shanghai from the week of Jan. 31.
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19144577-dbee-441d-b335-d3c883b39e1a
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3866.0
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2022-01-17 00:00:00 UTC
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5 Large-Cap Stocks Likely to Gain From Q4 Earnings This Week
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AAL
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https://www.nasdaq.com/articles/5-large-cap-stocks-likely-to-gain-from-q4-earnings-this-week
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The fourth-quarter 2021 earnings season picked up momentum from Jan 14 as banking behemoths started releasing their financial numbers. The last quarter was an impressive one for Wall Street. The termination of fiscal stimulus, reduction in monetary stimulus, soaring inflation and the resurgence of coronavirus failed to derail the U.S. stock market’s northbound journey.
Five large-cap companies — The PNC Financial Services Group Inc. PNC, United Airlines Holdings Inc. UAL, Discover Financial Services DFS, The Travelers Companies Inc. TRV, and American Airlines Group Inc. AAL — are slated to release their fourth-quarter 2021 earnings results this week. These stocks are likely to gain in the near term, buoyed by their possible earnings beat
Good Start to Fourth-Quarter Earnings
As of Jan 14, 26 S&P 500 companies have reported fourth-quarter 2021 results. Total earnings of these companies are up 19.2% year over year on 11.7% higher revenues with 88.5% beating EPS estimates and 84.6% surpassing revenue estimates.
Total fourth-quarter earnings of the market's benchmark — the S&P 500 Index — are projected to climb 20.9% from the same period last year on 11.7% higher revenues, following 41.4% year-over-year earnings growth on 17.4% higher revenues in the third quarter, 95% year-over-year earnings growth on 25.3% higher revenues in the second quarter and 49.3% year-over-year earnings growth on 10.3% higher revenues in first-quarter 2021.
The first three quarters of this year were favorably impacted since the preceding quarters of last year were affected by the pandemic-induced lockdowns and restrictions. However, the U.S. economy started reopening at a very slow pace since the beginning of the fourth quarter of 2020.
Stocks in Focus
Five large-cap (market capital > $12 billion) companies will report fourth-quarter 2021 earnings results this week. Each of these stocks carries a Zacks Rank #3 (Hold) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of above-mentioned five stocks in last quarter.
Image Source: Zacks Investment Research
The PNC Financial Services Group is one of the largest diversified financial services institutions in the United States. Going forward, the focus to expand the middle-market lending franchise, and bolster digital products and service offerings should drive PNC’s bottom-line growth.
Growing loan and deposit balances highlight a strong balance-sheet position of PNC. This further supports its inorganic expansion strategies, thereby positioning PNC Financial Services well for bottom-line growth. Its sound capital-deployment activities are likely to instill confidence in the stock.
PNC Financial Services has an Earnings ESP of +2.29%. The Zacks Consensus Estimate for current-year earnings improved 0.1% over the last 7 days. PNC recorded earnings surprises in the last four reported quarters, with an average beat of 29.4%. PNC Financial Services is set to release earnings results on Jan 18, before the opening bell.
The Travelers Companies boasts a strong market presence in auto, homeowners’ insurance, commercial U.S. property-casualty insurance with solid inorganic growth. A high retention rate, increase in new business and positive renewal premium change bode well. TRV’s commercial businesses should perform well, owing to market stability.
The Travelers Companies remains optimistic about the personal line of business, given growth at the profitable agency auto and homeowners business. TRV expects net investment income from non-fixed income portfolio to be $420 million to $430 million quarterly in 2022. Sufficient capital boosts shareholder value.
The Travelers Companies has an Earnings ESP of +3.21%. It has an expected earnings growth rate of 0.2% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 7 days.
TRV recorded earnings surprises in the last four reported quarters, with an average beat of 38.1%. The Travelers Companies is set to release earnings results on Jan 20, before the opening bell.
United Airlines Holdings provides air transportation services in North America, Asia, Europe, the Middle East, and Latin America. UAL transports people and cargo through its mainline and regional operations.
United Airlines aims to become 100% green by 2050. The carrier's focus on its cargo unit is also encouraging. Moreover, UAL’s cost-control efforts are supporting its bottom line. United Airlines expects 2022 CASM-excluding fuel, profit sharing, third-party business expenses and special charges to be lower than 2019 levels.
UAL has an Earnings ESP of +7.04%. It has an expected earnings growth rate of more than 100% for the current year. United Airlines recorded earnings surprises in two of the last four reported quarters, with an average beat of 7.5%. UAL is set to release earnings results on Jan 19, after the closing bell.
Discover Financial Services is a direct banking and payment services company in the United States. DFS operates through two segments — Direct Banking and Payment Services. Expansion in the global payments business and an attractive core business position the company well for growth.
A gradual economic recovery and improved consumer spending have been providing a boost to DFS’ sales volume. Its strong balance sheet is another positive, highlighted by its cash and investment securities that are higher than long-term borrowings. Discover Financial Services’ banking business provides significant diversification benefits. A solid financial position enables DFS to deploy capital via buybacks and dividends.
Discover Financial Services has an Earnings ESP of +4.74%. The Zacks Consensus Estimate for current-year earnings improved 0.4% over the last 7 days. DFS recorded earnings surprises in the last four reported quarters, with an average beat of 34.7%. Discover Financial Services is set to release earnings results on Jan 19, after the closing bell.
American Airlines Group attracted significant traffic during the Thanksgiving holiday period. With air-travel demand continuing to recover in the United States despite the threat posed by the omicron variant, American Airlines’ passenger revenues increased 56.1% year over year in the first nine months of 2021.
AAL’s debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion within 2025. America Airlines’ codeshare agreement with Indian low-cost airline, IndiGo, is an added positive.
AAL has an Earnings ESP of +7.40%. It has an expected earnings growth rate of 96.8% for the current year. It recorded earnings surprises in the last four reported quarters, with an average beat of 3.3%. America Airlines is set to release earnings results on Jan 20, before the opening bell.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report
Discover Financial Services (DFS): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Five large-cap companies — The PNC Financial Services Group Inc. PNC, United Airlines Holdings Inc. UAL, Discover Financial Services DFS, The Travelers Companies Inc. TRV, and American Airlines Group Inc. AAL — are slated to release their fourth-quarter 2021 earnings results this week. AAL’s debt-reduction efforts are impressive as well. AAL has an Earnings ESP of +7.40%.
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Five large-cap companies — The PNC Financial Services Group Inc. PNC, United Airlines Holdings Inc. UAL, Discover Financial Services DFS, The Travelers Companies Inc. TRV, and American Airlines Group Inc. AAL — are slated to release their fourth-quarter 2021 earnings results this week. AAL’s debt-reduction efforts are impressive as well. AAL has an Earnings ESP of +7.40%.
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Five large-cap companies — The PNC Financial Services Group Inc. PNC, United Airlines Holdings Inc. UAL, Discover Financial Services DFS, The Travelers Companies Inc. TRV, and American Airlines Group Inc. AAL — are slated to release their fourth-quarter 2021 earnings results this week. AAL’s debt-reduction efforts are impressive as well. AAL has an Earnings ESP of +7.40%.
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Five large-cap companies — The PNC Financial Services Group Inc. PNC, United Airlines Holdings Inc. UAL, Discover Financial Services DFS, The Travelers Companies Inc. TRV, and American Airlines Group Inc. AAL — are slated to release their fourth-quarter 2021 earnings results this week. AAL’s debt-reduction efforts are impressive as well. AAL has an Earnings ESP of +7.40%.
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9d5aa11e-f44d-4b5d-95d2-83e6d7a9ce8a
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3867.0
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2022-01-17 00:00:00 UTC
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EXCLUSIVE-Major U.S. airline CEOs warn 5G could ground some planes, wreak havoc
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AAL
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https://www.nasdaq.com/articles/exclusive-major-u.s.-airline-ceos-warn-5g-could-ground-some-planes-wreak-havoc
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By David Shepardson
WASHINGTON, Jan 17 (Reuters) - The chief executives of major U.S. passenger and cargo carriers on Monday warned of an impending "catastrophic" aviation crisis on Wednesday when AT&T T.N and Verizon VZ.N are set to deploy new 5G service.
The airlines warned the new C-Band 5G service could potentially make a significant number of widebody aircraft unusable and "could potentially strand tens of thousands of Americans overseas."
"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others.
The FAA has warned that potential interference could affect sensitive airplane instruments such as altimeters and impact on low-visibility operations.
"This means that on a day like yesterday, more than 1,100 flights and 100,000 passengers would be subjected to cancellations, diversions or delays," it cautioned.
Action is urgent, they added in the letter also signed by UPS Airlines UPS.N, Atlas Air AAWW.O, JetBlue Airways JBLU.O and FedEx Express FDX.N. "To be blunt, the nation’s commerce will grind to a halt."
The letter, which was seen by Reuters, went to White House National Economic Council director Brian Deese, Transportation Secretary Pete Buttigieg, Federal Aviation Administration (FAA) Administrator Steve Dickson and Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel.
Airlines for America, the group that organized the letter, declined to comment. The government agencies did not immediately comment.
AT&T and Verizon, which won nearly all of the C-Band spectrum in an $80 billion auction last year, on Jan. 3 agreed to buffer zones around 50 airports to reduce interference risks and take other steps to cut potential interference for six months. They also agreed to delay deployment for two weeks until Wednesday, temporarily averting an aviation safety standoff.
The CEOs of major airlines and Boeing BA.N Chief Executive Dave Calhoun held a lengthy call with Buttigieg and Dickson on Sunday to warn of the looming crisis, officials told Reuters.
The airlines ask "that 5G be implemented everywhere in the country except within the approximate 2 miles (3.2 km) of airport runways" at some key airports.
"Immediate intervention is needed to avoid significant operational disruption to air passengers, shippers, supply chain and delivery of needed medical supplies."
The airlines added that flight restrictions will not be limited to poor weather operations. "Multiple modern safety systems on aircraft will be deemed unusable causing a much larger problem than what we knew... Airplane manufacturers have informed us that there are huge swaths of the operating
fleet that may need to be indefinitely grounded."
The carriers added they urge action to ensure "5G is deployed except when towers are too close to airport runways until the FAA can determine how that can be safely accomplished without catastrophic disruption."
The FAA said on Sunday it had cleared an estimated 45% of the U.S. commercial airplane fleet to perform low-visibility landings at many airports where 5G C-band will be deployed starting on Wednesday. The airlines noted on Monday that the list did not include many large airports.
(Reporting by David Shepardson; Editing by Chizu Nomiyama and Bill Berkrot)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others. By David Shepardson WASHINGTON, Jan 17 (Reuters) - The chief executives of major U.S. passenger and cargo carriers on Monday warned of an impending "catastrophic" aviation crisis on Wednesday when AT&T T.N and Verizon VZ.N are set to deploy new 5G service. The CEOs of major airlines and Boeing BA.N Chief Executive Dave Calhoun held a lengthy call with Buttigieg and Dickson on Sunday to warn of the looming crisis, officials told Reuters.
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others. By David Shepardson WASHINGTON, Jan 17 (Reuters) - The chief executives of major U.S. passenger and cargo carriers on Monday warned of an impending "catastrophic" aviation crisis on Wednesday when AT&T T.N and Verizon VZ.N are set to deploy new 5G service. The letter, which was seen by Reuters, went to White House National Economic Council director Brian Deese, Transportation Secretary Pete Buttigieg, Federal Aviation Administration (FAA) Administrator Steve Dickson and Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel.
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others. By David Shepardson WASHINGTON, Jan 17 (Reuters) - The chief executives of major U.S. passenger and cargo carriers on Monday warned of an impending "catastrophic" aviation crisis on Wednesday when AT&T T.N and Verizon VZ.N are set to deploy new 5G service. The airlines warned the new C-Band 5G service could potentially make a significant number of widebody aircraft unusable and "could potentially strand tens of thousands of Americans overseas."
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others. By David Shepardson WASHINGTON, Jan 17 (Reuters) - The chief executives of major U.S. passenger and cargo carriers on Monday warned of an impending "catastrophic" aviation crisis on Wednesday when AT&T T.N and Verizon VZ.N are set to deploy new 5G service. The FAA has warned that potential interference could affect sensitive airplane instruments such as altimeters and impact on low-visibility operations.
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f6b44c91-a1db-45cd-a000-9aa422a74706
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3868.0
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2022-01-17 00:00:00 UTC
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EXCLUSIVE-Major U.S. airline CEOs urge action to avoid 'catastrophic' 5G flight disruptions
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AAL
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https://www.nasdaq.com/articles/exclusive-major-u.s.-airline-ceos-urge-action-to-avoid-catastrophic-5g-flight-disruptions
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nan
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WASHINGTON, Jan 17 (Reuters) - The chief executives of major U.S. passenger and cargo carriers on Monday warned of an impending "catastrophic" aviation crisis Wednesday when AT&T T.N and Verizon VZ.N are set to deploy new 5G service.
"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others to the White House, Transportation Department, Federal Aviation Administration, Federal Communications Commission. "This means that on a day like yesterday, more than 1,100 flights and 100,000 passengers
would be subjected to cancellations, diversions or delays."
Action is urgent, they added in the letter also signed by UPS Airlines, JetBlue Airways and FedEx Express. "To be blunt, the nation’s commerce will grind to a halt."
(Reporting by David Shepardson; Editing by Chizu Nomiyama)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others to the White House, Transportation Department, Federal Aviation Administration, Federal Communications Commission. WASHINGTON, Jan 17 (Reuters) - The chief executives of major U.S. passenger and cargo carriers on Monday warned of an impending "catastrophic" aviation crisis Wednesday when AT&T T.N and Verizon VZ.N are set to deploy new 5G service. "This means that on a day like yesterday, more than 1,100 flights and 100,000 passengers would be subjected to cancellations, diversions or delays."
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others to the White House, Transportation Department, Federal Aviation Administration, Federal Communications Commission. WASHINGTON, Jan 17 (Reuters) - The chief executives of major U.S. passenger and cargo carriers on Monday warned of an impending "catastrophic" aviation crisis Wednesday when AT&T T.N and Verizon VZ.N are set to deploy new 5G service. (Reporting by David Shepardson; Editing by Chizu Nomiyama) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others to the White House, Transportation Department, Federal Aviation Administration, Federal Communications Commission. "To be blunt, the nation’s commerce will grind to a halt." (Reporting by David Shepardson; Editing by Chizu Nomiyama) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded," wrote the chief executives of American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.N, Southwest Airlines LUV.N and others to the White House, Transportation Department, Federal Aviation Administration, Federal Communications Commission. WASHINGTON, Jan 17 (Reuters) - The chief executives of major U.S. passenger and cargo carriers on Monday warned of an impending "catastrophic" aviation crisis Wednesday when AT&T T.N and Verizon VZ.N are set to deploy new 5G service. "This means that on a day like yesterday, more than 1,100 flights and 100,000 passengers would be subjected to cancellations, diversions or delays."
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6ed12314-ed7b-4082-80f9-bc6d7e8ecc99
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3869.0
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2022-01-16 00:00:00 UTC
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Winter storm slams U.S. East Coast, Canada, thousands of flights canceled
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AAL
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https://www.nasdaq.com/articles/winter-storm-slams-u.s.-east-coast-canada-thousands-of-flights-canceled
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nan
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nan
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By Jan Wolfe and Kanishka Singh
WASHINGTON, Jan 16 (Reuters) - A major winter storm slammed much of the eastern United States with snow, ice and high winds on Sunday, causing widespread travel disruptions and power outages on a holiday weekend.
Winter weather alerts stretched more than 1,000 miles (1,609 km) from Alabama to Maine, with the governors of Georgia, Virginia, North Carolina and South Carolina all declaring emergencies due to the storm.
More than 200,000 homes and businesses in North Carolina, South Carolina, and Georgia reported power outages, according to PowerOutage.US, a website tracking power outages.
In North Carolina, where some regions saw record snowfalls, two people died Sunday when they lost control of their car in Raleigh.
The highest snowfall totals were expected along the spine of the Appalachians as well as across the lower Great Lakes.
The storm made its way through the Mid-Atlantic region toward New England on Sunday night, bringing snow that is expected to change to ice, sleet and eventually rain, the National Weather Service said.
In Canada, the storm is forecast to dump between 20-40cm (8-16 inches) of snow through Monday morning over parts of southern and eastern Ontario, the Canadian province that shares part of its border with New York state, the government weather agency, Environment Canada, said.
The inclement weather hits just as Ontario schools were set to reopen for in-person classes on Monday after the winter break was extended because of the highly contagious Omicron coronavirus variant.
More than 3,000 flights within, into or out of the United States were canceled on Sunday, and over 8,000 flights were delayed, according to FlightAware data.
American Airlines Group Inc AAL.Osaw more than 660 flight cancellations. More than 90% of the flights into and out of Charlotte Douglas International Airport in North Carolina, an American Airlines hub, were canceled, the FlightAware website showed.
American Airlines said it is allowing customers affected by the weather to rebook flights without a fee.
Toronto, home of Canada's busiest airport, is set to see accumulations of 15 to 20cm of snow.
This was a long weekend for most people in the United States as Monday is Martin Luther King Jr. Day, a federal holiday.
Georgia Governor Brian Kemp said on Sunday people should avoid non-essential travel in areas impacted by the storm.
"If you're able tonight and tomorrow morning, stay home and off the roads," Kemp said onTwitter. "It's going to be treacherous in a lot of parts of our state."
(Reporting by Jan Wolfe in Washington and Kanishka Singh in Bengaluru; Additional reporting by Steve Gorman and Dan Whitcomb in Los Angeles; Editing by Lisa Shumaker, Kieran Murray and Karishma Singh)
((Kanishka.Singh@thomsonreuters.com; +91 9620300091;))
The views and 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.Osaw more than 660 flight cancellations. The storm made its way through the Mid-Atlantic region toward New England on Sunday night, bringing snow that is expected to change to ice, sleet and eventually rain, the National Weather Service said. The inclement weather hits just as Ontario schools were set to reopen for in-person classes on Monday after the winter break was extended because of the highly contagious Omicron coronavirus variant.
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American Airlines Group Inc AAL.Osaw more than 660 flight cancellations. By Jan Wolfe and Kanishka Singh WASHINGTON, Jan 16 (Reuters) - A major winter storm slammed much of the eastern United States with snow, ice and high winds on Sunday, causing widespread travel disruptions and power outages on a holiday weekend. More than 200,000 homes and businesses in North Carolina, South Carolina, and Georgia reported power outages, according to PowerOutage.US, a website tracking power outages.
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American Airlines Group Inc AAL.Osaw more than 660 flight cancellations. By Jan Wolfe and Kanishka Singh WASHINGTON, Jan 16 (Reuters) - A major winter storm slammed much of the eastern United States with snow, ice and high winds on Sunday, causing widespread travel disruptions and power outages on a holiday weekend. Winter weather alerts stretched more than 1,000 miles (1,609 km) from Alabama to Maine, with the governors of Georgia, Virginia, North Carolina and South Carolina all declaring emergencies due to the storm.
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American Airlines Group Inc AAL.Osaw more than 660 flight cancellations. By Jan Wolfe and Kanishka Singh WASHINGTON, Jan 16 (Reuters) - A major winter storm slammed much of the eastern United States with snow, ice and high winds on Sunday, causing widespread travel disruptions and power outages on a holiday weekend. In Canada, the storm is forecast to dump between 20-40cm (8-16 inches) of snow through Monday morning over parts of southern and eastern Ontario, the Canadian province that shares part of its border with New York state, the government weather agency, Environment Canada, said.
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2b075922-2db8-497c-bcc3-f15bc66e0687
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3870.0
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2022-01-16 00:00:00 UTC
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Airlines cancel over 2,700 U.S. flights as winter storm hits U.S. East Coast
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AAL
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https://www.nasdaq.com/articles/airlines-cancel-over-2700-u.s.-flights-as-winter-storm-hits-u.s.-east-coast
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By Kanishka Singh
Jan 16 (Reuters) - Airlines canceled over 2,700 U.S. flights on Sunday as a winter storm combining high winds and ice was poised to hit the U.S. East Coast over the holiday weekend.
The flights canceled by 12:30 p.m. ET (1730 GMT) on Sunday included over 2,700 entering, departing from or within the United States, according to flight tracking website FlightAware.com. Over 1,500 flights were delayed, the data showed.
American Airlines Group Inc AAL.O had over 600 flight cancellations. Almost 95% of the flights out of Charlotte Douglas International Airport in North Carolina, an American Airlines hub, were canceled, the FlightAware website showed.
American Airlines is allowing customers affected by the weather to rebook flights without a fee.
A major winter storm will impact the eastern United States on Sunday into Monday, the National Weather Service said. The highest snowfall totals were expected along the spine of the Appalachians as well as across the lower Great Lakes.
The most significant icing was expected over the Carolinas, with significant impacts to travel across those regions, the NWS said. About 74 million people were under winter weather alerts as of Saturday evening, according to NWS.
Georgia Governor Brian Kemp tweeted on Sunday that people should avoid non-essential travel in areas impacted by the storm. The governors of Georgia, Virginia, North Carolina and South Carolina had declared emergencies due to the storm.
(Reporting by Kanishka Singh in Bengaluru; Editing by Lisa Shumaker)
((Kanishka.Singh@thomsonreuters.com; +91 9620300091;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O had over 600 flight cancellations. By Kanishka Singh Jan 16 (Reuters) - Airlines canceled over 2,700 U.S. flights on Sunday as a winter storm combining high winds and ice was poised to hit the U.S. East Coast over the holiday weekend. Almost 95% of the flights out of Charlotte Douglas International Airport in North Carolina, an American Airlines hub, were canceled, the FlightAware website showed.
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American Airlines Group Inc AAL.O had over 600 flight cancellations. By Kanishka Singh Jan 16 (Reuters) - Airlines canceled over 2,700 U.S. flights on Sunday as a winter storm combining high winds and ice was poised to hit the U.S. East Coast over the holiday weekend. Almost 95% of the flights out of Charlotte Douglas International Airport in North Carolina, an American Airlines hub, were canceled, the FlightAware website showed.
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American Airlines Group Inc AAL.O had over 600 flight cancellations. By Kanishka Singh Jan 16 (Reuters) - Airlines canceled over 2,700 U.S. flights on Sunday as a winter storm combining high winds and ice was poised to hit the U.S. East Coast over the holiday weekend. Almost 95% of the flights out of Charlotte Douglas International Airport in North Carolina, an American Airlines hub, were canceled, the FlightAware website showed.
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American Airlines Group Inc AAL.O had over 600 flight cancellations. Almost 95% of the flights out of Charlotte Douglas International Airport in North Carolina, an American Airlines hub, were canceled, the FlightAware website showed. A major winter storm will impact the eastern United States on Sunday into Monday, the National Weather Service said.
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f190cf6b-a3cc-420d-a007-eb0ad4b87329
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3871.0
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2022-01-14 00:00:00 UTC
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Airline Stocks Fly High in Thursday's Trading: Here's Why
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AAL
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https://www.nasdaq.com/articles/airline-stocks-fly-high-in-thursdays-trading%3A-heres-why
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nan
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Delta Air Lines DAL kicked off the fourth-quarter 2021 earnings season for the airline stocks yesterday on a bright note. DAL reported better-than-expected earnings per share and revenues for the same period. Results were aided by an upbeat air traffic during the holidays.
Apart from a strong earnings report, DAL management’s encouraging commentary on the omicron variant of COVID-19, pleased investors. As a result, the stock gained 2.1% on Jan 13. In fact, the bullishness was not limited to Delta alone as other stocks like American Airlines AAL, Spirit Airlines SAVE and United Airlines UAL in the industry were also lifted. The NYSE ARCA Airline index was up 2.84% following the northward movement of its constituents.
Omicron: A Short-Term Pain Point for Air-Travel Demand
The omicron variant is causing U.S. airlines, including Delta to cancel multiple flights as the illness caused by the virus results in staff crunch. Encouragingly, for Delta, operations have stabilized over the past seven days with omicron-related cancellations impacting only 1% of its flights, per CEO Ed Bastian.
Bastian further said that the omicron impact is likely to be short-term and “is expected to temporarily delay the demand recovery 60 days”. Although the variant is likely to result in a first-quarter loss for Delta, it is expected to be profitable in the remaining three quarters of 2022. In fact, DAL, currently carrying a Zacks Rank #3 (Hold), expects spring and summer travel to recover, riding on significant pent-up air travel demand, “resulting in a meaningful profit in 2022”.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Entire Industry Perked Up
Delta’s healthy earnings report and bright forecast cheered investors, prompting them to grow bullish on the entire industry. American Airlines, which will report its fourth-quarter results on Jan 20, gained 4.54% yesterday. Like Delta, AAL’s December-quarter results are likely to be positively impacted by upbeat passenger traffic. AAL operated 1,500 flights more than other airlines during the Thanksgiving week.
Buoyed by the strong air-travel demand scenario, American Airlines recently provided an improved revenue guidance for the final quarter of 2021. Management now expects total revenues to decline approximately 17% in the fourth quarter of 2021 from the comparable period’s figure in 2019. Previously, the airline estimated the same to decrease around 20%. The expectation that fuel cost per gallon will decline is also a positive. If this expectation comes true, the bottom line at AAL will get a boost. AAL now expects average fuel price per gallon to be $2.36 for the fourth quarter compared with the previous expectation of $2.43-$2.48.
United Airlines, which will report fourth-quarter results on Jan 19, gained 3.5% yesterday. Like its peers, UAL attracted a significant traffic during the Thanksgiving holiday period. UAL expanded its domestic network by 700 flights during the Thanksgiving week. By doing so, the airline operated around 87% of its 2019 domestic schedule.
Against the above backdrop, upbeat passenger volumes during the holidays are likely to have bumped up UAL’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for fourth-quarter passenger revenues indicates a surge of more than 100% from the year-ago reported number. Moreover, United Airlines suggests a 2.1% increase from the third-quarter 2021 reported level.
Spirit Airlines was another top gainer on Jan 13 with shares of SAVE rising 5.08% yesterday. SAVE is expected to report fourth-quarter results on Feb 8. Similar to other carriers, SAVE’s top line is likely to have benefited from increased passenger revenues, accounting for bulk of its revenues.
Driven by upbeat traffic during the holidays, the Zacks Consensus Estimate for fourth-quarter passenger revenues at Spirit Airlines indicates a 6.3%% increase from the third-quarter 2021 reported level. On the back of higher traffic, the consensus mark for SAVE’s load factor (% of seats filled by passengers) in the December quarter is currently pegged at 80, higher than 78 recorded in third-quarter 2021.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, the bullishness was not limited to Delta alone as other stocks like American Airlines AAL, Spirit Airlines SAVE and United Airlines UAL in the industry were also lifted. Like Delta, AAL’s December-quarter results are likely to be positively impacted by upbeat passenger traffic. AAL operated 1,500 flights more than other airlines during the Thanksgiving week.
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In fact, the bullishness was not limited to Delta alone as other stocks like American Airlines AAL, Spirit Airlines SAVE and United Airlines UAL in the industry were also lifted. Like Delta, AAL’s December-quarter results are likely to be positively impacted by upbeat passenger traffic. AAL operated 1,500 flights more than other airlines during the Thanksgiving week.
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In fact, the bullishness was not limited to Delta alone as other stocks like American Airlines AAL, Spirit Airlines SAVE and United Airlines UAL in the industry were also lifted. Like Delta, AAL’s December-quarter results are likely to be positively impacted by upbeat passenger traffic. AAL operated 1,500 flights more than other airlines during the Thanksgiving week.
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In fact, the bullishness was not limited to Delta alone as other stocks like American Airlines AAL, Spirit Airlines SAVE and United Airlines UAL in the industry were also lifted. Like Delta, AAL’s December-quarter results are likely to be positively impacted by upbeat passenger traffic. AAL operated 1,500 flights more than other airlines during the Thanksgiving week.
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58ec2fde-0391-4602-9ae9-7f333fbe844e
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3872.0
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2022-01-14 00:00:00 UTC
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Will Cost Woes Dampen American Airlines' (AAL) Q4 Earnings?
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AAL
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https://www.nasdaq.com/articles/will-cost-woes-dampen-american-airlines-aal-q4-earnings
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nan
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American Airlines Group AAL is scheduled to report fourth-quarter 2021 results on Jan 20, before market open.
The Zacks Consensus Estimate for fourth-quarter loss has widened by 3.5% in the past 60 days. Given this, let’s take a look at the factors that are expected to have influenced the company’s fourth-quarter performance:
With improved air-travel demand, American Airlines’ passenger revenues are expected to reflect sequential increase in the fourth quarter. The Zacks Consensus Estimate for fourth-quarter passenger revenues indicates a 1.1% rise from the third-quarter reported number. Robust Thanksgiving holiday demand is expected to have boosted the carrier’s passenger revenues.
However, mass-scale flight cancellations between late October and early November, as well as during the Christmas travel period through the end of the year owing to staffing shortages and inclement weather conditions, pushed up American Airlines’ costs. The airline expects cost per available seat mile (“CASM”) to increase 13-14% in the fourth quarter from the 2019 level. Apart from reduced capacity, a holiday operational incentive program in the fourth quarter and a write down of excess spare-parts inventory pushed up the company’s unit costs. The higher expenses are likely to have hurt AAL’s bottom line in the to-be-reported quarter.
Rising fuel costs are also expected to have dented American Airlines’ bottom line in the fourth quarter. American Airlines estimates average fuel price per gallon to be $2.36 for the fourth quarter, indicating a rise of 14% from the third quarter’s reported figure. The Zacks Consensus Estimate for the same stands at $2.42.
Despite improving, air-travel demand continues to be below the pre-pandemic levels. As a result, American Airlines expects total revenues to decline approximately 17% in the fourth quarter of 2021 from the comparable period in 2019.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Earnings Whispers
The proven Zacks model does not conclusively predict an earnings beat for American Airlines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: American Airlines has an earnings ESP of -0.34% as the Most Accurate Estimate is pegged at a loss of $1.79, while the Zacks Consensus Estimate is poised at a loss of $1.78. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Airlines carries a Zacks Rank #3.
Highlights of Q3 Earnings
American Airlines incurred an adjusted loss of 99 cents per share in the third quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.04. This was the seventh consecutive quarterly loss incurred by the company as coronavirus continues to weigh on air-travel demand. Operating revenues of $8,969 million skyrocketed 182.67% year over year and also surpassed the Zacks Consensus Estimate of $8,926.6 million. The upside was due to significant increase in passenger revenues, thanks to improved air-travel demand.
Stocks to Consider
Investors interested in the broader Transportation sector may consider C.H. Robinson Worldwide CHRW, Southwest Airlines LUV and Landstar System LSTR, as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
C.H. Robinson currently has an Earnings ESP of +4.79% and a Zacks Rank #3. The company will report fourth-quarter 2021 results on Feb 2.
Favorable pricing and higher volumes, owing to improved freight market conditions, are expected to have aided C.H. Robinson’s fourth-quarter performance.
Southwest Airlines has an Earnings ESP of +227.38% and is currently a Zacks #3 Ranked player. The company will release fourth-quarter 2021 results on Jan 27.
Southwest Airlines expects to be profitable in the fourth quarter of 2021 owing to a strong Thanksgiving holiday travel period, higher fares and benefits from the co-brand credit card agreement with Chase.
Landstar System has an Earnings ESP of +3.19% and is Zacks #3 Ranked, presently. The company will release fourth-quarter 2021 results on Jan 26.
Landstar’s fourth-quarter performance is expected to have benefited from higher truck rates and strong freight demand.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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 Airlines Co. (LUV): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Landstar System, Inc. (LSTR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group AAL is scheduled to report fourth-quarter 2021 results on Jan 20, before market open. The higher expenses are likely to have hurt AAL’s bottom line in the to-be-reported quarter. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines Group AAL is scheduled to report fourth-quarter 2021 results on Jan 20, before market open. The higher expenses are likely to have hurt AAL’s bottom line in the to-be-reported quarter.
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American Airlines Group AAL is scheduled to report fourth-quarter 2021 results on Jan 20, before market open. The higher expenses are likely to have hurt AAL’s bottom line in the to-be-reported quarter. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group AAL is scheduled to report fourth-quarter 2021 results on Jan 20, before market open. The higher expenses are likely to have hurt AAL’s bottom line in the to-be-reported quarter. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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0278051b-42cb-480d-be38-994c3c3b12e1
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3873.0
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2022-01-13 00:00:00 UTC
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Airline Stock Roundup: AAL's Bullish Q4 Revenue View, ALK, GOL, AZUL in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-aals-bullish-q4-revenue-view-alk-gol-azul-in-focus
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nan
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In the past week,American Airlines’ AAL management provided an improved guidance for fourth-quarter 2021 revenues despite multiple flight cancellations. Alaska Airlines, the wholly-owned subsidiary of Alaska Air Group ALK, trimmed its schedule for the current month following the omicron-induced staff crunch.
Air-travel demand is improving in Latin America with increased vaccinations. Reflecting this buoyant scenario, Gol Linhas Aereas Inteligentes GOL provided an upbeat view for the final quarter of 2021. Owing to the healthy air-travel demand scene, Gol Linhas’ traffic for December improved significantly year over year, as reported in last week’s write up.
Another Brazilian carrier Azul AZUL was also in news in the past week, courtesy of its December traffic report. Like Gol, Azul is benefiting from improved air-travel demand on the domestic front.
Recap of the Latest Top Stories
1 Per an SEC filing, American Airlines now expects total revenues to decline approximately 17% in the fourth quarter of 2021 from the comparable period’s figure in 2019. Previously, the airline estimated the same to decrease around 20%. However, due to mass-scale flight cancellations during the Christmas travel period through the end of the year, American Airlines now predicts capacity to decline 13% in the fourth quarter from the 2019 level compared with the previous expectation of a decrease of 11-13%. Due to reduced capacity, AAL, currently carrying a Zacks Rank #3 (Hold), incurred higher costs. It now expects cost per available seat mile to increase 13-14% in the fourth quarter from the 2019 level. Previously, the carrier estimated the same to increase 8-10%. American Airlines expects total liquidity of approximately $15.8 billion at the end of the fourth quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. For the fourth quarter of 2021 (detailed results of which will be out on Feb 17), Gol anticipates EBITDA margin to be approximately 35% while it expects EBIT margin to be around 28%. GOL estimates average fuel price per liter to be R$4.11. Gol predicts passenger revenue per available seat kilometers to increase 35% year over year in the fourth quarter. It expects cost per available seat kilometers, excluding fuel, to decrease 12% from the fourth-quarter 2020 level. Total demand, measured in revenue passenger kilometers, is forecast to increase 15.4% year over year. Total capacity, measured in available seat kilometers, is expected to climb 13.2% year over year.
3. Per a Reuters report, Alaska Airlines reduced its flight schedule nearly 10% through January 2022 to combat the omicron-induced staffing shortage. With employees falling sick due to this highly transmissible COVID-19 variant, Alaska Airlines’ operations took a massive hit and the airline was compelled to slash flight schedule. Citing its concerns, management said, "As we have entered 2022, the continued impacts of Omicron have been disruptive in all our lives and unprecedented employee sick calls have impacted our ability to operate our airline reliably".
4. Azul reported a 1.9% decline in traffic (on a consolidated basis) for December 2021 from the levels achieved in December 2019 (pre-coronavirus). The decline was mainly due to weakness on the international front. Consolidated load factor (% of seats filled by passengers) dipped 0.6 percentage points (p.p) to 82.9% last month with the capacity contraction (1.2%) being less than the reduction in traffic. International traffic in December declined a massive 60.9% from the comparable period’s level in 2019. However, the scenario was much brighter on the domestic front with traffic increasing 20.9% from the December 2019 levels.
Performance
The following table shows the price movement of major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that most airline stocks have traded in the green over the past week. As a result, the NYSE ARCA Airline Index has increased 2.5% to $84.68. Over the past six months, the NYSE ARCA Airline Index has depreciated 10.9%.
What's Next in the Airline Space?
Fourth-quarter earnings reports from United Airlines UAL and American Airlines are scheduled to be out on Jan 19 and Jan 20, respectively.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
AZUL (AZUL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past week,American Airlines’ AAL management provided an improved guidance for fourth-quarter 2021 revenues despite multiple flight cancellations. Due to reduced capacity, AAL, currently carrying a Zacks Rank #3 (Hold), incurred higher costs. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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In the past week,American Airlines’ AAL management provided an improved guidance for fourth-quarter 2021 revenues despite multiple flight cancellations. Due to reduced capacity, AAL, currently carrying a Zacks Rank #3 (Hold), incurred higher costs. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report In the past week,American Airlines’ AAL management provided an improved guidance for fourth-quarter 2021 revenues despite multiple flight cancellations. Due to reduced capacity, AAL, currently carrying a Zacks Rank #3 (Hold), incurred higher costs.
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In the past week,American Airlines’ AAL management provided an improved guidance for fourth-quarter 2021 revenues despite multiple flight cancellations. Due to reduced capacity, AAL, currently carrying a Zacks Rank #3 (Hold), incurred higher costs. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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e000ef77-cd2c-4cb7-b568-51ea543514a3
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3874.0
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2022-01-13 00:00:00 UTC
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American Airlines (AAL) May Report Negative Earnings: Know the Trend Ahead of Next Week's Release
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-may-report-negative-earnings%3A-know-the-trend-ahead-of-next-weeks
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nan
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nan
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Wall Street expects a year-over-year increase in earnings on higher revenues when American Airlines (AAL) reports results for the quarter ended December 2021. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on January 20. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This world's largest airline is expected to post quarterly loss of $1.78 per share in its upcoming report, which represents a year-over-year change of +53.9%.
Revenues are expected to be $9.05 billion, up 124.7% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 10.23% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for American Airlines?
For American Airlines, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.34%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that American Airlines will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that American Airlines would post a loss of $1.04 per share when it actually produced a loss of $0.99, delivering a surprise of +4.81%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
American Airlines doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wall Street expects a year-over-year increase in earnings on higher revenues when American Airlines (AAL) reports results for the quarter ended December 2021. American Airlines Group Inc. (AAL): Free Stock Analysis Report While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
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Wall Street expects a year-over-year increase in earnings on higher revenues when American Airlines (AAL) reports results for the quarter ended December 2021. American Airlines Group Inc. (AAL): Free Stock Analysis Report Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out.
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Wall Street expects a year-over-year increase in earnings on higher revenues when American Airlines (AAL) reports results for the quarter ended December 2021. American Airlines Group Inc. (AAL): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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Wall Street expects a year-over-year increase in earnings on higher revenues when American Airlines (AAL) reports results for the quarter ended December 2021. American Airlines Group Inc. (AAL): Free Stock Analysis Report Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out.
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5e8027f0-c69d-4777-98c8-680b98ad3b63
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3875.0
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2022-01-13 00:00:00 UTC
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Airline Stocks Alert: Why Are UAL, DAL, AAL Stocks Flying Higher Today?
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AAL
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https://www.nasdaq.com/articles/airline-stocks-alert%3A-why-are-ual-dal-aal-stocks-flying-higher-today
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Today, airline stocks have lift-off, with each of the three major U.S. airlines surging to new year-to-date (YTD) highs. United Airlines (NASDAQ:UAL), Delta Airlines (NYSE:DAL) and American Airlines (NASDAQ:AAL) have all surged between 3% and 6% in early afternoon trading.
Source: Shutterstock
This move appears to indicate investors have a brighter outlook for airline stocks in 2022. Amid what could be the largest spike in Covid-19 cases due to the omicron variant, there’s room for hope among those invested in airline names. That’s a good thing, because right now, there are many headwinds this sector is battling.
Besides the pandemic, costs are expected to rise this quarter. Higher fuel prices, spurred by indiscriminate inflation, have margins under pressure. On top of that, a slew of canceled flights have some investors concerned about the near-term revenue outlook for airlines.
However, today there’s a big catalyst taking the “big three” airlines higher. Let’s dive into what investors are watching with these stocks.
Airline Stocks Surge Amid Positive Earnings Report
Delta Airlines was the first to report fourth quarter earnings before the bell today. All airline stocks rose on news of the company’s strong numbers. However, interestingly, Delta’s move higher today has been the weakest among its peers.
Despite the aforementioned headwinds Delta sees as problematic, this company has been able to provide a solid outlook moving forward. The company states that its operations have stabilized, with travel demand remaining robust. Accordingly, this past quarter, Delta saw its strongest revenue and bookings numbers since 2019.
For the period, DAL reported revenue of $9.47 billion, which beat analyst expectations of $9.21 billion. These results signaled that holiday travel this past year has come back; travelers are ready to return to normal.
That said, Delta’s CEO was quick to caution that the coming four to six weeks may provide some turbulence. The severity of this latest Covid-19 wave has caused some travelers to push back their travel plans for a few weeks. Still, the outlook in the months to come appears rosy and investors seem to be willing to look into the future with airline stocks. (I mean, you kind of have to).
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Airline Stocks Alert: Why Are UAL, DAL, AAL Stocks Flying Higher Today? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines (NASDAQ:UAL), Delta Airlines (NYSE:DAL) and American Airlines (NASDAQ:AAL) have all surged between 3% and 6% in early afternoon trading. The post Airline Stocks Alert: Why Are UAL, DAL, AAL Stocks Flying Higher Today? Amid what could be the largest spike in Covid-19 cases due to the omicron variant, there’s room for hope among those invested in airline names.
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United Airlines (NASDAQ:UAL), Delta Airlines (NYSE:DAL) and American Airlines (NASDAQ:AAL) have all surged between 3% and 6% in early afternoon trading. The post Airline Stocks Alert: Why Are UAL, DAL, AAL Stocks Flying Higher Today? InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today, airline stocks have lift-off, with each of the three major U.S. airlines surging to new year-to-date (YTD) highs.
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United Airlines (NASDAQ:UAL), Delta Airlines (NYSE:DAL) and American Airlines (NASDAQ:AAL) have all surged between 3% and 6% in early afternoon trading. The post Airline Stocks Alert: Why Are UAL, DAL, AAL Stocks Flying Higher Today? InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today, airline stocks have lift-off, with each of the three major U.S. airlines surging to new year-to-date (YTD) highs.
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The post Airline Stocks Alert: Why Are UAL, DAL, AAL Stocks Flying Higher Today? United Airlines (NASDAQ:UAL), Delta Airlines (NYSE:DAL) and American Airlines (NASDAQ:AAL) have all surged between 3% and 6% in early afternoon trading. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today, airline stocks have lift-off, with each of the three major U.S. airlines surging to new year-to-date (YTD) highs.
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c2fca4f8-9566-48b8-a2dd-e6172660fdf9
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3876.0
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2022-01-13 00:00:00 UTC
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Why Airline Stocks Are Soaring Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-soaring-today
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nan
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nan
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What happened
On Thursday, Delta Air Lines (NYSE: DAL) kicked off airline earnings season on a high note and took the rest of the sector along for the ride. Shares of Delta, American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all climbed as much as 5% on Thursday morning on hope that a recovery is at hand.
So what
Airline stocks endured a miserable 2020 due to the pandemic, and 2021 was choppy as investors weighed signs of pent-up demand against the threat of new variants and renewed travel restrictions. Investors are eager to see what the companies have to say about 2022, and Delta on Thursday provided reason for optimism.
Image source: Delta Air Lines.
The airline earned $0.22 per share in the fourth quarter on revenue of $9.47 billion, topping consensus estimates for $0.14 per share in earnings on sales of $9.2 billion. CEO Ed Bastian in a statement called 2021 "a year like no other for Delta," highlighting "significant progress in our recovery supported by growing brand preference, enabling us to be the only major U.S. airline to deliver profitability across the second half of the year."
The airline expects to fall back into a loss in the first quarter due to the omicron variant and weather issues, but Bastian said, "We are confident in a strong spring and summer travel season with significant pent-up demand for consumer and business travel."
Delta said it expects a "healthy" profit in the final three quarters of 2022, which should translate to a "meaningful" profit for the full year. Delta ended the quarter with more than $14 billion in total liquidity and reduced its total debt by $6 billion during the year.
Although the results are Delta-specific, it is not hard to see why investors in other airlines are encouraged. The pandemic is an industrywide issue and not company specific, and Delta's commentary on demand and its ability to turn a profit as the year goes on is good news for all carriers.
Now what
We're on our way toward a recovery, but it will take time. The pandemic is not over, and if we have learned anything over the past year, it is to expect the unexpected. While the airlines appear to be headed in the right direction, a new variant could delay the rebound.
For those with a long-enough time horizon, Delta appears to be one of the top choices. The airline was a top operator before the pandemic, and as Bastian notes, it appears to have gained some market share thanks to some of its actions to protect customers, at the cost of added revenue, by refusing to sell middle seats through 2020.
United and American will get there, but American in particular has a higher debt load and will likely need longer than its rivals to clean up its balance sheet. Spirit and JetBlue, as discounters, are well-positioned to benefit if Bastian's hoped-for summer vacation rally occurs.
There is opportunity in the airline sector, but investors would be wise to keep their seatbelts fastened.
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Lou Whiteman owns Delta Air Lines and Spirit Airlines. The Motley Fool owns and recommends Spirit Airlines. The Motley Fool recommends Delta Air Lines and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Delta, American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all climbed as much as 5% on Thursday morning on hope that a recovery is at hand. What happened On Thursday, Delta Air Lines (NYSE: DAL) kicked off airline earnings season on a high note and took the rest of the sector along for the ride. So what Airline stocks endured a miserable 2020 due to the pandemic, and 2021 was choppy as investors weighed signs of pent-up demand against the threat of new variants and renewed travel restrictions.
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Shares of Delta, American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all climbed as much as 5% on Thursday morning on hope that a recovery is at hand. What happened On Thursday, Delta Air Lines (NYSE: DAL) kicked off airline earnings season on a high note and took the rest of the sector along for the ride. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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Shares of Delta, American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all climbed as much as 5% on Thursday morning on hope that a recovery is at hand. CEO Ed Bastian in a statement called 2021 "a year like no other for Delta," highlighting "significant progress in our recovery supported by growing brand preference, enabling us to be the only major U.S. airline to deliver profitability across the second half of the year." See the 10 stocks *Stock Advisor returns as of January 10, 2022 Lou Whiteman owns Delta Air Lines and Spirit Airlines.
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Shares of Delta, American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all climbed as much as 5% on Thursday morning on hope that a recovery is at hand. What happened On Thursday, Delta Air Lines (NYSE: DAL) kicked off airline earnings season on a high note and took the rest of the sector along for the ride. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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e53810f5-2b86-4120-bebc-15dd48902c1f
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3877.0
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2022-01-13 00:00:00 UTC
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Thursday's ETF Movers: FTXR, CQQQ
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AAL
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https://www.nasdaq.com/articles/thursdays-etf-movers%3A-ftxr-cqqq
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nan
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nan
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In trading on Thursday, the First Trust Nasdaq Transportation ETF is outperforming other ETFs, up about 2% on the day. Components of that ETF showing particular strength include shares of Spirit Airlines, up about 6% and shares of American Airlines Group, up about 5.7% on the day.
And underperforming other ETFs today is the Invesco China Technology ETF, off about 3.4% in Thursday afternoon trading. Among components of that ETF with the weakest showing on Thursday were shares of Zhihu, lower by about 8.8%, and shares of Kingsoft Cloud Holdings, lower by about 6.9% on the day.
VIDEO: Thursday's ETF Movers: FTXR, CQQQ
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of Spirit Airlines, up about 6% and shares of American Airlines Group, up about 5.7% on the day. Among components of that ETF with the weakest showing on Thursday were shares of Zhihu, lower by about 8.8%, and shares of Kingsoft Cloud Holdings, lower by about 6.9% on the day. VIDEO: Thursday's ETF Movers: FTXR, CQQQ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of Spirit Airlines, up about 6% and shares of American Airlines Group, up about 5.7% on the day. Among components of that ETF with the weakest showing on Thursday were shares of Zhihu, lower by about 8.8%, and shares of Kingsoft Cloud Holdings, lower by about 6.9% on the day. VIDEO: Thursday's ETF Movers: FTXR, CQQQ The views and 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 Thursday, the First Trust Nasdaq Transportation ETF is outperforming other ETFs, up about 2% on the day. Components of that ETF showing particular strength include shares of Spirit Airlines, up about 6% and shares of American Airlines Group, up about 5.7% on the day. Among components of that ETF with the weakest showing on Thursday were shares of Zhihu, lower by about 8.8%, and shares of Kingsoft Cloud Holdings, lower by about 6.9% on the day.
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In trading on Thursday, the First Trust Nasdaq Transportation ETF is outperforming other ETFs, up about 2% on the day. Components of that ETF showing particular strength include shares of Spirit Airlines, up about 6% and shares of American Airlines Group, up about 5.7% on the day. And underperforming other ETFs today is the Invesco China Technology ETF, off about 3.4% in Thursday afternoon trading.
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8be8e4e5-5703-43ce-9ac5-23ae199a893d
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3878.0
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2022-01-13 00:00:00 UTC
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US STOCKS-Futures muted ahead of data; Delta Air rises on strong earnings
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AAL
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https://www.nasdaq.com/articles/us-stocks-futures-muted-ahead-of-data-delta-air-rises-on-strong-earnings
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nan
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nan
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By Bansari Mayur Kamdar
Jan 13 (Reuters) - U.S. stock index futures were muted on Thursday ahead of jobless claims data and fresh inflation figures that are expected to give more cues on the Federal Reserve's tightening policy, while Delta Air Lines led gains among carriers on strong earnings.
Both jobless claims and producer prices data at 08:30 a.m. ET come after Wall Street eked out slim gains on Wednesday when consumer prices largely met market expectations despite hitting a 40-year high.
The producer price index (PPI) for final demand is expected to rise 0.4% in December, compared with a 0.8% increase in November. In the 12 months through December, the PPI likely accelerated 9.8% after shooting up 9.6% in November.
Delta Air Lines DAL.N gained 2.2% in premarket trading after beating estimates for fourth-quarter earnings and said it has recovered nearly 80% of its 2019 pre-pandemic level revenue.
Shares of peers American Airlines AAL.O and United Airlines UAL.O advanced 1.6% each.
More U.S. companies will report results on the final quarter of 2021 in the coming weeks, with year-over-year earnings growth from S&P 500 companies expected to be at 22.4%, according to IBES data from Refinitiv.
JPMorgan Chase JPM.N is due to report on Friday along with Citigroup C.N and Wells Fargo WFC.N. Results from big technology and other mega-cap companies start next week, with Netflix NFLX.O due to report on Jan. 20.
Banks have been among the best performers since the start of the new year, with retail investors also raising their exposure to bank stocks ahead of the earnings announcements, according to Vanda Research's weekly report on retail flows.
Major U.S. tech firms edged lower ahead of a White House meeting with their top executives, including representatives from Alphabet-owned Google GOOGL.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O, to discuss software security.
Also on the radar, Fed Governor Lael Brainard will appear at a Congressional hearing later in the day for her nomination as deputy chair.
Wells Fargo joined Goldman Sachs GS.N, JPMorgan and Deutsche Bank DBKGn.DE in forecasting an aggressive tightening of U.S. monetary policy in the coming months and estimating the Fed to raise interest rates four times this year.
At 7:03 a.m. ET, Dow e-minis 1YMcv1 were up 38 points, or 0.11%, S&P 500 e-minis EScv1 were up 0.75 points, or 0.02%, and Nasdaq 100 e-minis NQcv1 were down 3.5 points, or 0.02%.
Recently listed satellite launch service provider Virgin Orbit VORB.O gained 2.1% after tweeting that it is on track for its first commercial satellite launch on Thursday between 1300 and 1530 Pacific Time.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Maju Samuel)
((BansariMayur.Kamdar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of peers American Airlines AAL.O and United Airlines UAL.O advanced 1.6% each. By Bansari Mayur Kamdar Jan 13 (Reuters) - U.S. stock index futures were muted on Thursday ahead of jobless claims data and fresh inflation figures that are expected to give more cues on the Federal Reserve's tightening policy, while Delta Air Lines led gains among carriers on strong earnings. Major U.S. tech firms edged lower ahead of a White House meeting with their top executives, including representatives from Alphabet-owned Google GOOGL.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O, to discuss software security.
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Shares of peers American Airlines AAL.O and United Airlines UAL.O advanced 1.6% each. By Bansari Mayur Kamdar Jan 13 (Reuters) - U.S. stock index futures were muted on Thursday ahead of jobless claims data and fresh inflation figures that are expected to give more cues on the Federal Reserve's tightening policy, while Delta Air Lines led gains among carriers on strong earnings. Both jobless claims and producer prices data at 08:30 a.m.
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Shares of peers American Airlines AAL.O and United Airlines UAL.O advanced 1.6% each. By Bansari Mayur Kamdar Jan 13 (Reuters) - U.S. stock index futures were muted on Thursday ahead of jobless claims data and fresh inflation figures that are expected to give more cues on the Federal Reserve's tightening policy, while Delta Air Lines led gains among carriers on strong earnings. More U.S. companies will report results on the final quarter of 2021 in the coming weeks, with year-over-year earnings growth from S&P 500 companies expected to be at 22.4%, according to IBES data from Refinitiv.
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Shares of peers American Airlines AAL.O and United Airlines UAL.O advanced 1.6% each. By Bansari Mayur Kamdar Jan 13 (Reuters) - U.S. stock index futures were muted on Thursday ahead of jobless claims data and fresh inflation figures that are expected to give more cues on the Federal Reserve's tightening policy, while Delta Air Lines led gains among carriers on strong earnings. The producer price index (PPI) for final demand is expected to rise 0.4% in December, compared with a 0.8% increase in November.
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a7ab650f-6fa5-4b95-85fb-3c80916760fd
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3879.0
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2022-01-13 00:00:00 UTC
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U.S. FAA issues impact notices on 5G wireless aviation
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-issues-impact-notices-on-5g-wireless-aviation
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nan
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nan
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By David Shepardson
WASHINGTON, Jan 13 (Reuters) - The Federal Aviation Administration (FAA) began publishing notices early on Thursday that detailed the extent of potential impact of new 5G wireless service on sensitive aircraft electronics.
The FAA has been in talks with airplane makers, airlines and wireless carriers to reduce the impact of new wireless service set to begin on Jan. 19.
The FAA has warned that potential interference could affect sensitive airplane instruments like altimeters but on Wednesday reported progress.
AT&T T.N and Verizon Communications VZ.N, which won nearly all of the C-Band spectrum in an $80-billion auction last year, on Jan. 3 agreed to buffer zones around 50 airports to reduce the risk of interference. They also agreed to delay deployment for two weeks, averting an aviation safety standoff.
The FAA began publishing what are known as 'Notices to Air Missions' at midnight Thursday local time offering details on "aircraft with untested altimeters or that need retrofitting or replacement will be unable to perform low-visibility landings where 5G is deployed."
More than 300 notices had been posted by 01:00 ET, including many around major airports and hospitals where medical helicopters are used. The FAA did not respond to a question about how many in total were to be published.
Many of the notices say certain procedures are unavailable unless the FAA approves alternative methods of compliance "due to 5G C-Band interference."
The wireless industry provided additional transmitter location data and the FAA said it was able to determine that in the initial 5G deployment, aircraft will be able to safely land in low-visibility conditions on some runways without restrictions.
Some notices include details of how instrument approaches at major airports are impacted. The FAA has determined that some GPS-guided approaches will continue to be possible at certain airports like Miami and Phoenix.
The FAA said Wednesday that it "expects to provide updates soon about the estimated percentage of commercial aircraft equipped with altimeters that can operate reliably and accurately in the 5G C-Band environment."
The FAA is still "working to determine which radar altimeters will be reliable and accurate with 5G C-Band deployed in the United States."
On Friday, the FAA picked 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service.
(Reporting by David Shepardson; Editing by Leslie Adler and Kenneth Maxwell)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, Jan 13 (Reuters) - The Federal Aviation Administration (FAA) began publishing notices early on Thursday that detailed the extent of potential impact of new 5G wireless service on sensitive aircraft electronics. The FAA began publishing what are known as 'Notices to Air Missions' at midnight Thursday local time offering details on "aircraft with untested altimeters or that need retrofitting or replacement will be unable to perform low-visibility landings where 5G is deployed." The wireless industry provided additional transmitter location data and the FAA said it was able to determine that in the initial 5G deployment, aircraft will be able to safely land in low-visibility conditions on some runways without restrictions.
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By David Shepardson WASHINGTON, Jan 13 (Reuters) - The Federal Aviation Administration (FAA) began publishing notices early on Thursday that detailed the extent of potential impact of new 5G wireless service on sensitive aircraft electronics. The FAA has warned that potential interference could affect sensitive airplane instruments like altimeters but on Wednesday reported progress. Some notices include details of how instrument approaches at major airports are impacted.
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By David Shepardson WASHINGTON, Jan 13 (Reuters) - The Federal Aviation Administration (FAA) began publishing notices early on Thursday that detailed the extent of potential impact of new 5G wireless service on sensitive aircraft electronics. The FAA began publishing what are known as 'Notices to Air Missions' at midnight Thursday local time offering details on "aircraft with untested altimeters or that need retrofitting or replacement will be unable to perform low-visibility landings where 5G is deployed." On Friday, the FAA picked 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service.
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By David Shepardson WASHINGTON, Jan 13 (Reuters) - The Federal Aviation Administration (FAA) began publishing notices early on Thursday that detailed the extent of potential impact of new 5G wireless service on sensitive aircraft electronics. Some notices include details of how instrument approaches at major airports are impacted. On Friday, the FAA picked 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service.
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eedb0ff5-13f4-4d93-9e63-c7948971e04e
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3880.0
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2022-01-12 00:00:00 UTC
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U.S. FAA to issue 5G wireless aviation impact notices
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-to-issue-5g-wireless-aviation-impact-notices
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nan
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nan
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By David Shepardson
WASHINGTON, Jan 12 (Reuters) - The Federal Aviation Administration (FAA) said it will publish notices early Thursday detailing the extent of the potential impact of new 5G wireless service on sensitive aircraft electronics.
The FAA has been in talks with airplane manufacturers, airlines and wireless carriers to reduce the impact of new wireless service that is set to begin Jan. 19. The FAA has warned that potential interference could impact sensitive airplane instruments like altimeters.
AT&T T.N and Verizon Communications VZ.N, which won nearly all of the C-Band spectrum in an $80-billion auction last year, on Jan. 3 agreed to buffer zones around 50 airports to reduce the risk of interference. They also agreed to delay deployment for two weeks, averting an aviation safety standoff.
The FAA said it will publish what are known as Notices to Air Missions at midnight Thursday offering details on "aircraft with untested altimeters or that need retrofitting or replacement will be unable to perform low-visibility landings where 5G is deployed."
Among the notices will be details of how instrument approaches at major airports are impacted. The FAA has determined that some GPS-guided approaches will continue to be possible at certain airports like Miami and Phoenix.
The FAA said Wednesday that it "expects to provide updates soon about the estimated percentage of commercial aircraft equipped with altimeters that can operate reliably and accurately in the 5G C-Band environment."
The wireless industry provided additional transmitter location data and the FAA said it was able to determine that in the initial 5G deployment, aircraft will be able to safely land in low-visibility conditions on some runways without restrictions.
The FAA is still "working to determine which radar altimeters will be reliable and accurate with 5G C-Band deployed in the United States."
On Friday, the FAA picked 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service.
(Reporting by David Shepardson; Editing by Leslie Adler)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, Jan 12 (Reuters) - The Federal Aviation Administration (FAA) said it will publish notices early Thursday detailing the extent of the potential impact of new 5G wireless service on sensitive aircraft electronics. The FAA said it will publish what are known as Notices to Air Missions at midnight Thursday offering details on "aircraft with untested altimeters or that need retrofitting or replacement will be unable to perform low-visibility landings where 5G is deployed." The wireless industry provided additional transmitter location data and the FAA said it was able to determine that in the initial 5G deployment, aircraft will be able to safely land in low-visibility conditions on some runways without restrictions.
|
By David Shepardson WASHINGTON, Jan 12 (Reuters) - The Federal Aviation Administration (FAA) said it will publish notices early Thursday detailing the extent of the potential impact of new 5G wireless service on sensitive aircraft electronics. The FAA has warned that potential interference could impact sensitive airplane instruments like altimeters. On Friday, the FAA picked 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service.
|
By David Shepardson WASHINGTON, Jan 12 (Reuters) - The Federal Aviation Administration (FAA) said it will publish notices early Thursday detailing the extent of the potential impact of new 5G wireless service on sensitive aircraft electronics. The FAA said it will publish what are known as Notices to Air Missions at midnight Thursday offering details on "aircraft with untested altimeters or that need retrofitting or replacement will be unable to perform low-visibility landings where 5G is deployed." The wireless industry provided additional transmitter location data and the FAA said it was able to determine that in the initial 5G deployment, aircraft will be able to safely land in low-visibility conditions on some runways without restrictions.
|
By David Shepardson WASHINGTON, Jan 12 (Reuters) - The Federal Aviation Administration (FAA) said it will publish notices early Thursday detailing the extent of the potential impact of new 5G wireless service on sensitive aircraft electronics. The FAA said it will publish what are known as Notices to Air Missions at midnight Thursday offering details on "aircraft with untested altimeters or that need retrofitting or replacement will be unable to perform low-visibility landings where 5G is deployed." Among the notices will be details of how instrument approaches at major airports are impacted.
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87566718-179d-4d22-ab45-6850bcb62067
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3881.0
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2022-01-12 00:00:00 UTC
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4 Airline Stocks to Buy on Any Covid-19 Variant Dips
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AAL
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https://www.nasdaq.com/articles/4-airline-stocks-to-buy-on-any-covid-19-variant-dips
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airlines were doing great at getting people back on their feet after a brutal 2020 ravaged by the Covid-19 pandemic. Passengers finally want to travel again. However, airline stocks are not doing so well right now.
You can chalk that down to the omicron variant, which is spreading fast and highly contagious. After a harrowing couple of years, airlines were finally looking to get their mojo back. And there was evidence this was happening.
But with omicron sweeping across the globe, airlines are struggling once again. The rapid transmission rate means airlines are facing a shortage of employees. Major airlines had to trim personnel extensively last year. Therefore, they do not have adequate staff to cover regular flight schedules. Thousands of flights were cancelled in December and January because of weather and omicron-related staffing shortages.
The 7 Best Blue-Chip Stocks to Buy for 2022
The omicron variant has already spread to the U.S., as well as most of Europe and Asia. It has the potential to slow down the overall recovery of the airline sector.
For now, ticket sales remain strong. Millions across the globe are expected to fly as flights operate at high capacity. That means it is the ideal time to invest in your favorite airline stocks that are trading at a steep discount.
American Airlines Group (NASDAQ:AAL)
Delta Air Lines (NYSE:DAL)
United Airlines Holdings (NASDAQ:UAL)
Southwest Airlines (NYSE:LUV)
Airline Stocks: American Airlines Group (AAL)
AAL) airplane waiting on the tarmac. Represents airline stocks." width="300" height="169">
Source: GagliardiPhotography / Shutterstock.com
American Airlines is a world leader in the airline industry. It is a huge airline with an extensive route network and a robust international business model. However, due to significant debt and reliance on global markets, AAL will take time to get its mojo back.
AAL executives are looking to build and create new alliances such as their deal with JetBlue Airways (NASDAQ:JBLU). The partnership has helped AAL customers greatly by adding more offerings to the U.S. northeast.
Meanwhile, American Airlines has been getting a lot of support from the federal government. And it’s finally paying off. The company reported $169 million in profit for the third quarter, thanks to over $990 million in federal payroll support passed by Congress.
Revenue came in at $8.97 billion, up significantly from $3.17 billion last year. But it is still down roughly 25% from the 2019 figure. When you exclude one-time items, like government payroll support and other miscellaneous expenses taken into account, American had a loss of 99 cents per share instead of the analysts’ expectation for $1.04.
“While we don’t like reporting losses, this was our smallest quarterly loss since the pandemic began,” wrote CEO Doug Parker and President Robert Isom in a letter to employees.
Despite these positive beats, investors are not biting. Over three months, AAL stock is down 5%. Again, much of the sentiment is because of omicron variant fears. Considering the size of the legacy carrier, it is just a matter of time before the company bounces back. The number of international routes by American Airlines has increased tenfold in just one year, with the company launching new services to Tel Aviv and Delhi.
If it builds on this performance, then the future is bright.
Delta Air Lines (DAL)
Source: David Peterlin / Shutterstock.com
Delta has been developing new ways of providing service and lower prices to better compete with discount airlines for several years now. This airline is behind recent innovation in this industry as it consolidates smaller carriers that have helped stabilize the business when acquiring Northwest Airlines back in 2008-2009.
Delta is a company that everyone in the airline industry strives to be like. Delta has always been at the forefront when it comes to aviation industry innovations and Delta’s purchase of an oil refinery is no different. The company wants complete access, control over jet fuel supplies so it can ensure its customers have reliable flights every time. In an increasinglyglobal market Delta’s post-pandemic stability and strong labor relations make it a perfect candidate for international carriers looking to recover from the pandemic.
Third-quarter revenue and profit from Delta topped analysts’ expectations but were still lower than in 2019. Delta’s third-quarter profit fell 19% from the previous year, and it was its second consecutive profitable quarter since 2019 Covid-19 first reared its ugly head. However, the point worth noting is that this is the only profit without the cushion of U.S aid.
The airline is hiring more people, and it plans on adding 8,000 people in various roles by 2022. The airline was under immense pressure this summer due to long wait times. It vowed to increase staffing to ease the bottlenecks, and it looks like its promise has been kept.
Nonetheless, Delta is warning that it will be under pressure from more expensive fuel in late 2021 despite improving travel demand. Since the fourth-quarter results are likely to be depressed, waiting for the dip before buying in is better. Currently, shares are trading at a very healthy 22.9x forward price-earnings.
Airline Stocks: United Airlines Holdings (UAL)
Source: NextNewMedia / Shutterstock.com
United Airlines has a long history of catering to the needs and wants of its customers in Silicon Valley and providing service throughout Asia. The major American airline is the envy of many companies. It has a large footprint in crucial business markets and are very popular with corporate travelers.
However, that focus came under fire due to the coronavirus. UAL suffered because of not having a diversified travel route. During the pandemic, United’s advantage in terms of air travel has diminished. This doesn’t mean that it’s going to give up its position as a top American airline, though.
United Airlines’ performance in Q3 was better than expected, with adjusted earnings per share surprising investors and revenue exceeding forecasts. United reported revenue of more than $7.8 billion in Q3, even higher than analysts anticipated. It is one of the most successful quarters for UAL since the pandemic.
United’s load factor has improved by 59.2%. But it is still below pre-pandemic levels. And forecasts predict that the airline will continue to struggle with efficiency for some time. The load factor is a percentage that shows how full an airplane’s seats are. Airlines want this number as high as possible.
The company is looking to grow its international capacity by 10% in 2022, while domestically, it plans to maintain a similar output level. It cited a rebound in premium leisure travel, recovery of business trips, and reopening European borders as factors supporting its recent success.
In Q4, UAL expects the capacity to be down roughly 23% compared to the fourth quarter of 2019. Revenue is forecasted to be down 25% to 30% during the same period. Shares are up just 9% in the last 12 months. So, there is an incentive to buy right now, considering the sluggish price momentum and the airline’s niche focus.
Southwest Airlines (LUV)
Source: Markus Mainka / Shutterstock.com
Southwest Airlines is the original discounter, but it’s a maverick that no longer flies below anyone’s radar. The Dallas-based airline has never landed in bankruptcy court. Its operations always remain profitable even when other significant carriers struggle with their finances like many competitors do today regularly.
The airline has run into some labor trouble, but luckily it has one of the best balance sheets in the industry. The company’s operating revenues increased 161% in the third quarter of this year but were 17% less than the 2019 figure due to a pandemic that hit them hard. Southwest Airlines ended the third quarter with a $17 billion liquidity reserve, well over its debt outstanding at under $12 billion.
Despite the company’s revenue increasing in recent quarters, it is not expected to be profitable in the year-end period. The fourth quarter of 2021 will see a capacity that remains below what was seen pre-pandemic levels.
Investing in any airline stock is a risky business. Investors have been burned by the pandemic’s effects on air travel before, and the new variants are not helping matters. That said, Southwest has historically outperformed its competitors when operating during tough periods, making it one of the best airline stocks out there.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. You can check out his analysis on InvestorPlace and TipRanks.
The post 4 Airline Stocks to Buy on Any Covid-19 Variant Dips appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ:AAL) Delta Air Lines (NYSE:DAL) United Airlines Holdings (NASDAQ:UAL) Southwest Airlines (NYSE:LUV) Airline Stocks: American Airlines Group (AAL) AAL) airplane waiting on the tarmac. However, due to significant debt and reliance on global markets, AAL will take time to get its mojo back. AAL executives are looking to build and create new alliances such as their deal with JetBlue Airways (NASDAQ:JBLU).
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American Airlines Group (NASDAQ:AAL) Delta Air Lines (NYSE:DAL) United Airlines Holdings (NASDAQ:UAL) Southwest Airlines (NYSE:LUV) Airline Stocks: American Airlines Group (AAL) AAL) airplane waiting on the tarmac. However, due to significant debt and reliance on global markets, AAL will take time to get its mojo back. AAL executives are looking to build and create new alliances such as their deal with JetBlue Airways (NASDAQ:JBLU).
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American Airlines Group (NASDAQ:AAL) Delta Air Lines (NYSE:DAL) United Airlines Holdings (NASDAQ:UAL) Southwest Airlines (NYSE:LUV) Airline Stocks: American Airlines Group (AAL) AAL) airplane waiting on the tarmac. However, due to significant debt and reliance on global markets, AAL will take time to get its mojo back. AAL executives are looking to build and create new alliances such as their deal with JetBlue Airways (NASDAQ:JBLU).
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American Airlines Group (NASDAQ:AAL) Delta Air Lines (NYSE:DAL) United Airlines Holdings (NASDAQ:UAL) Southwest Airlines (NYSE:LUV) Airline Stocks: American Airlines Group (AAL) AAL) airplane waiting on the tarmac. However, due to significant debt and reliance on global markets, AAL will take time to get its mojo back. AAL executives are looking to build and create new alliances such as their deal with JetBlue Airways (NASDAQ:JBLU).
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52309cd8-edac-43b2-9529-705014251ed8
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3882.0
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2022-01-12 00:00:00 UTC
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American, Aer Lingus Ink Codeshare Deal For Easy Travel Between US And Ireland
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AAL
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https://www.nasdaq.com/articles/american-aer-lingus-ink-codeshare-deal-for-easy-travel-between-us-and-ireland
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(RTTNews) - American Airlines has inked a new codesharing partnership with Aer Lingus, the flag carrier of Ireland, that will make it more simple, easy and more convenient for customers to travel between the United States and Ireland, also known as the Emerald Isle.
Under the deal, American will place its code on Aer Lingus flights between London Heathrow (LHR) and Dublin (DUB). Customers can also book codeshare flights on Aer Lingus from DUB to Amsterdam (AMS), Birmingham (BHX), London Gatwick (LGW) and Manchester (MAN) as well as from LHR to Belfast City, Northern Ireland (BHD); Cork, Ireland (ORK) and Shannon, Ireland (SNN).
Additionally, customers traveling with Aer Lingus will now be able to book codeshare travel on American Airlines flights from Chicago O'Hare (ORD) to Albuquerque, New Mexico, (ABQ); Nashville, Tennessee (BNA); Dallas-Fort Worth (DFW); Los Angeles (LAX); Seattle (SEA); San Francisco (SFO); San Jose, California (SJC) and Tucson, Arizona (TUS).
Aer Lingus sees travel demand for dream vacations, business travel, and reconnecting families and friends in 2022 and beyond to be stronger than ever following two years of restrictions on travel. More so after the decision by the Irish Government to remove pre-departure COVID-19 test requirements for double-vaccinated passengers.
The codeshare agreement will enable Aer Lingus customers to avail of greater connectivity options and more seamless travel between the U.S. and Europe via its Dublin hub. This will also have the added benefit for customers to get US Customs & Border Protection (CBP) pre-clearance in Dublin itself.
Last year, Aer Lingus had joined the Atlantic Joint Business (AJB) between American, British Airways, Iberia and Finnair. This collaboration has delivered significant benefits to customers, such as lower fares and easier journeys to more destinations with better aligned schedules and frequencies.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Additionally, customers traveling with Aer Lingus will now be able to book codeshare travel on American Airlines flights from Chicago O'Hare (ORD) to Albuquerque, New Mexico, (ABQ); Nashville, Tennessee (BNA); Dallas-Fort Worth (DFW); Los Angeles (LAX); Seattle (SEA); San Francisco (SFO); San Jose, California (SJC) and Tucson, Arizona (TUS). The codeshare agreement will enable Aer Lingus customers to avail of greater connectivity options and more seamless travel between the U.S. and Europe via its Dublin hub. Last year, Aer Lingus had joined the Atlantic Joint Business (AJB) between American, British Airways, Iberia and Finnair.
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Under the deal, American will place its code on Aer Lingus flights between London Heathrow (LHR) and Dublin (DUB). Customers can also book codeshare flights on Aer Lingus from DUB to Amsterdam (AMS), Birmingham (BHX), London Gatwick (LGW) and Manchester (MAN) as well as from LHR to Belfast City, Northern Ireland (BHD); Cork, Ireland (ORK) and Shannon, Ireland (SNN). Additionally, customers traveling with Aer Lingus will now be able to book codeshare travel on American Airlines flights from Chicago O'Hare (ORD) to Albuquerque, New Mexico, (ABQ); Nashville, Tennessee (BNA); Dallas-Fort Worth (DFW); Los Angeles (LAX); Seattle (SEA); San Francisco (SFO); San Jose, California (SJC) and Tucson, Arizona (TUS).
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(RTTNews) - American Airlines has inked a new codesharing partnership with Aer Lingus, the flag carrier of Ireland, that will make it more simple, easy and more convenient for customers to travel between the United States and Ireland, also known as the Emerald Isle. Customers can also book codeshare flights on Aer Lingus from DUB to Amsterdam (AMS), Birmingham (BHX), London Gatwick (LGW) and Manchester (MAN) as well as from LHR to Belfast City, Northern Ireland (BHD); Cork, Ireland (ORK) and Shannon, Ireland (SNN). Additionally, customers traveling with Aer Lingus will now be able to book codeshare travel on American Airlines flights from Chicago O'Hare (ORD) to Albuquerque, New Mexico, (ABQ); Nashville, Tennessee (BNA); Dallas-Fort Worth (DFW); Los Angeles (LAX); Seattle (SEA); San Francisco (SFO); San Jose, California (SJC) and Tucson, Arizona (TUS).
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Customers can also book codeshare flights on Aer Lingus from DUB to Amsterdam (AMS), Birmingham (BHX), London Gatwick (LGW) and Manchester (MAN) as well as from LHR to Belfast City, Northern Ireland (BHD); Cork, Ireland (ORK) and Shannon, Ireland (SNN). Additionally, customers traveling with Aer Lingus will now be able to book codeshare travel on American Airlines flights from Chicago O'Hare (ORD) to Albuquerque, New Mexico, (ABQ); Nashville, Tennessee (BNA); Dallas-Fort Worth (DFW); Los Angeles (LAX); Seattle (SEA); San Francisco (SFO); San Jose, California (SJC) and Tucson, Arizona (TUS). Aer Lingus sees travel demand for dream vacations, business travel, and reconnecting families and friends in 2022 and beyond to be stronger than ever following two years of restrictions on travel.
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31550180-d836-4eda-9e4e-a09ed9a0dc57
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3883.0
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2022-01-12 00:00:00 UTC
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American Airlines (AAL) Up on Improved Q4 Revenue Guidance
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-up-on-improved-q4-revenue-guidance
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nan
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American Airlines AAL improved its expectations for fourth-quarter 2021 total revenues despite multiple flight cancellations during the Christmas and New Year holiday travel period. This, in turn, drove shares of the company up 1.2% at the close of business on Jan 11.
Per a SEC filing dated Jan 11, American Airlines now expects total revenues to decline approximately 17% in the fourth quarter of 2021 from the comparable period in 2019. Previously, the airline estimated the same to decrease around 20%.
However, due to mass-scale flight cancellations during the Christmas travel period through the end of the year, American Airlines now predicts capacity to decline 13% in the fourth quarter from the 2019 level, compared with the previous expectation of a decrease of 11-13%. The flight cancellations resulted from staffing shortages as a large number of pilots and flight attendants fell sick with COVID-19, thanks to the emergence of the Omicron variant. Severe winter weather in parts of the United States also caused flight cuts. The schedule cuts were not just limited to American Airlines. Other U.S. carriers were equally affected by the spike in Omicron cases and inclement weather conditions.
American Airlines Group Inc. Price
American Airlines Group Inc. price | American Airlines Group Inc. Quote
Due to reduced capacity, AAL incurred higher costs. It now expects cost per available seat mile to increase 13-14% in the fourth quarter from the 2019 level. Previously, the carrier estimated the same to increase 8-10%. Apart from reduced capacity, a holiday operational incentive program in the fourth quarter and a write down of excess spare parts inventory pushed up the company’s unit costs.
American Airlines estimates average fuel price per gallon to be $2.36 for the fourth quarter, compared with the previous expectation of $2.43-$2.48. Pre-tax margin, excluding net special items, is expected to be between -12% and -13% (past forecast: between -16% and -18%).
American Airlines expects total liquidity of approximately $15.8 billion at the end of the fourth quarter.
Zacks Rank & Key Picks
American Airlines carries a Zacks Rank #4 (Sell).
Some better-ranked stocks within the broader Transportation sector are as follows:
Expeditors International of Washington EXPD carries a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 29.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Expeditors have appreciated around 32% in a year.
ArcBest Corporation ARCB carries a Zacks Rank #2 (Buy). The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 27.4%.
Shares of ArcBest have surged more than 100% in a year.
Schneider National SNDR carries a Zacks Rank #2. The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21%.
Shares of Schneider National have rallied more than 17% in a year.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL improved its expectations for fourth-quarter 2021 total revenues despite multiple flight cancellations during the Christmas and New Year holiday travel period. Due to reduced capacity, AAL incurred higher costs. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines AAL improved its expectations for fourth-quarter 2021 total revenues despite multiple flight cancellations during the Christmas and New Year holiday travel period. Due to reduced capacity, AAL incurred higher costs.
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American Airlines AAL improved its expectations for fourth-quarter 2021 total revenues despite multiple flight cancellations during the Christmas and New Year holiday travel period. Due to reduced capacity, AAL incurred higher costs. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines AAL improved its expectations for fourth-quarter 2021 total revenues despite multiple flight cancellations during the Christmas and New Year holiday travel period. Due to reduced capacity, AAL incurred higher costs.
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8430a516-4f5b-4ec8-bd92-9d84db15082b
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3884.0
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2022-01-11 00:00:00 UTC
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Passenger breaks into cockpit of American Airlines at Honduras airport
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AAL
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https://www.nasdaq.com/articles/passenger-breaks-into-cockpit-of-american-airlines-at-honduras-airport
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nan
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Adds details
Jan 11 (Reuters) - A passenger broke into the cockpit of an American Airlines jet at an airport on Honduras as the plane was boarding for a flight to Miami, ABC News reported on Tuesday.
Reuters could not immediately confirm the report.
ABC reported that the man, who was not immediately identified, entered the cockpit and damaged flight controls before attempting to jump from a window.
The damaged aircraft was grounded at Ramon Villeda Morales International Airport in San Pedro Sula, Honduras, according to ABC, which reported that passengers were being boarded onto later flights.
(Reporting by Dan Whitcomb; Editing by Sandra Maler)
((Dan.Whitcomb@tr.com; 310-491-7290;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details Jan 11 (Reuters) - A passenger broke into the cockpit of an American Airlines jet at an airport on Honduras as the plane was boarding for a flight to Miami, ABC News reported on Tuesday. ABC reported that the man, who was not immediately identified, entered the cockpit and damaged flight controls before attempting to jump from a window. The damaged aircraft was grounded at Ramon Villeda Morales International Airport in San Pedro Sula, Honduras, according to ABC, which reported that passengers were being boarded onto later flights.
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Adds details Jan 11 (Reuters) - A passenger broke into the cockpit of an American Airlines jet at an airport on Honduras as the plane was boarding for a flight to Miami, ABC News reported on Tuesday. ABC reported that the man, who was not immediately identified, entered the cockpit and damaged flight controls before attempting to jump from a window. The damaged aircraft was grounded at Ramon Villeda Morales International Airport in San Pedro Sula, Honduras, according to ABC, which reported that passengers were being boarded onto later flights.
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Adds details Jan 11 (Reuters) - A passenger broke into the cockpit of an American Airlines jet at an airport on Honduras as the plane was boarding for a flight to Miami, ABC News reported on Tuesday. ABC reported that the man, who was not immediately identified, entered the cockpit and damaged flight controls before attempting to jump from a window. The damaged aircraft was grounded at Ramon Villeda Morales International Airport in San Pedro Sula, Honduras, according to ABC, which reported that passengers were being boarded onto later flights.
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Adds details Jan 11 (Reuters) - A passenger broke into the cockpit of an American Airlines jet at an airport on Honduras as the plane was boarding for a flight to Miami, ABC News reported on Tuesday. Reuters could not immediately confirm the report. ABC reported that the man, who was not immediately identified, entered the cockpit and damaged flight controls before attempting to jump from a window.
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4270cc13-4600-4172-b8c0-5686a8ce071b
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3885.0
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2022-01-11 00:00:00 UTC
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Omicron turbulence looms over U.S. airline earnings
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AAL
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https://www.nasdaq.com/articles/omicron-turbulence-looms-over-u.s.-airline-earnings
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, Jan 11 (Reuters) - U.S. airlines have come a long way since the spring of 2020 when COVID-19 brought the industry to its knees. Yet the pandemic will loom large when big carriers report quarterly earnings starting on Thursday.
The latest wave of the health crisis, driven by the highly contagious Omicron coronavirus variant, has caused havoc for a short-staffed industry. A multifold increase in daily sick calls as well as a series of winter storms have led to mass cancellation of flights.
For example, in one day alone, nearly one-third of United Airlines' UAL.O workforce in Newark, New Jersey called in sick. The Chicago-based carrier has 3,000 employees who are currently infected with the virus.
Since Christmas Eve, U.S. airlines have canceled more than 30,600 flights, or about 7% of the scheduled total, according to flight-tracking service FlightAware - one of the biggest disruptions in recent years.
Until the Omicron variant began to take a toll on airline operations, the quarter through December was shaping up as the industry's strongest period in two years.
The promising start prompted Delta Air Lines Inc DAL.N and Southwest Airlines Co LUV.N last month to forecast a profit for the quarter. Both carriers had previously expected to report a loss.
Delta is due to report fourth-quarter earnings on Thursday. Analysts on average expect the Atlanta-based carrier to post an adjusted profit of 15 cents a share, according to Refinitiv data.
Similarly, Wall Street expects Southwest's adjusted profit to come in at 9 cents a share on Jan. 27.
American Airlines AAL.O on Tuesday forecast a smaller-than-expected fall in fourth-quarter revenue. Both American and United Airlines will report their results next week.
SURGE IN SICK CALLS
The virus-induced turmoil has dampened expectations of an upside earnings surprise.
Air travel demand tends to cool off in the first quarter, which should ease staffing needs of carriers. Still, their earnings could suffer if they struggle to run a smooth operation.
"If planes do not fly, airlines do not generate revenue," said Peter McNally, global sector lead for industrials materials and energy at research firm Third Bridge.
A spokesperson for JetBlue Airways Corp JBLU.O warned of additional cancellations until COVID-19 case counts start to come down. Most of the airline's crew members are based in the Northeastern United States where the Omicron variant is raging.
"Like many businesses and organizations, we have seen a surge in the number of sick calls from Omicron," JetBlue's spokesperson said.
The airline has cut its flight schedule through mid-January and is deploying team leaders and managers to staff frontline operations. It is also offering incentives for crew members not scheduled to work to pick up additional shifts and trips.
To mitigate the staffing issues, United Airlines is offering its pilots premium pay through the end of the month. Southwest, too, is offering pay incentives for operational employees through Jan. 25.
BUMP-UP IN COSTS
All the incentives along with flight cancellations are expected to further inflate the industry's costs, which have gone up in the past year due to efforts to ramp up operations.
Until Omicron's onset, carriers were assuming that a rebound in business and international traffic would help mitigate the cost pressure and allow them to be profitable this year.
They were all aggressively hiring pilots, flight attendants and airport staff to run more flights this spring and summer.
Surging COVID-19 cases, however, have called that assumption into question as they have brought in a new wave of border restrictions.
Last month, Delta said while it was still hopeful of a "very strong" summer over the transatlantic route, the Omicron variant could delay a recovery in international traffic by at least three months. The transatlantic route is one of the most lucrative ones in the world and accounted for up to 17% of 2019 passenger revenue for the major U.S. carriers.
The variant has also clouded the outlook for the industry's cash cow, business travel, as it has forced companies to further delay bringing their employees back to office.
Analysts at Bank of America Corp BAC.N reckon the pandemic's impact on corporate travel is the biggest risk to the airline industry.
"The pandemic will continue to drive travel patterns, but we think it will have the biggest impact on corporate travel," the bank's analysts wrote in a note.
(Reporting by Rajesh Kumar Singh in Chicago Editing by Tim Hepher and Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O on Tuesday forecast a smaller-than-expected fall in fourth-quarter revenue. The latest wave of the health crisis, driven by the highly contagious Omicron coronavirus variant, has caused havoc for a short-staffed industry. "If planes do not fly, airlines do not generate revenue," said Peter McNally, global sector lead for industrials materials and energy at research firm Third Bridge.
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American Airlines AAL.O on Tuesday forecast a smaller-than-expected fall in fourth-quarter revenue. By Rajesh Kumar Singh CHICAGO, Jan 11 (Reuters) - U.S. airlines have come a long way since the spring of 2020 when COVID-19 brought the industry to its knees. Yet the pandemic will loom large when big carriers report quarterly earnings starting on Thursday.
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American Airlines AAL.O on Tuesday forecast a smaller-than-expected fall in fourth-quarter revenue. Until the Omicron variant began to take a toll on airline operations, the quarter through December was shaping up as the industry's strongest period in two years. All the incentives along with flight cancellations are expected to further inflate the industry's costs, which have gone up in the past year due to efforts to ramp up operations.
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American Airlines AAL.O on Tuesday forecast a smaller-than-expected fall in fourth-quarter revenue. Delta is due to report fourth-quarter earnings on Thursday. "Like many businesses and organizations, we have seen a surge in the number of sick calls from Omicron," JetBlue's spokesperson said.
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4b44a2df-ad2f-4942-b4be-28902fe80755
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3886.0
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2022-01-11 00:00:00 UTC
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American Airlines expects Q4 revenue to fall lesser than expected
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AAL
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https://www.nasdaq.com/articles/american-airlines-expects-q4-revenue-to-fall-lesser-than-expected
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nan
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Jan 11 (Reuters) - American Airlines Group Inc AAL.O on Tuesday forecast a smaller-than-expected fall in fourth-quarter revenue, sending shares of the No. 1 U.S. carrier up about 2% before the bell.
The company said it expects revenue for the quarter to be down about 17%, compared with its prior expectation of an about 20% fall.
Rapidly rising COVID-19 infections of the Omicron variant have forced airlines to cancel flights as pilots and cabin crew fell sick and needed to quarantine.
Mass cancellations over the Christmas and New Year holiday period and higher incentives given to employees had an impact on carriers, with American Airlines forecasting higher fourth-quarter costs.
The company expects cost per available seat mile—the standard measure in the industry showing what it costs to fly one seat one mile—to be up between 13% and 14%, compared with its previous guidance of a rise of between 8% and 10%.
A writedown of excess spare parts inventory also increased costs, the airline added.
The company expects to report pretax margin to be down between approximately 12% and 13% versus its previous forecast of a fall in the range of 16% to 18%.
The company is set to report results on Jan. 20.
(Reporting by Kannaki Deka in Bengaluru; Editing by Amy Caren Daniel)
((Kannaki.Deka@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jan 11 (Reuters) - American Airlines Group Inc AAL.O on Tuesday forecast a smaller-than-expected fall in fourth-quarter revenue, sending shares of the No. Rapidly rising COVID-19 infections of the Omicron variant have forced airlines to cancel flights as pilots and cabin crew fell sick and needed to quarantine. The company expects to report pretax margin to be down between approximately 12% and 13% versus its previous forecast of a fall in the range of 16% to 18%.
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Jan 11 (Reuters) - American Airlines Group Inc AAL.O on Tuesday forecast a smaller-than-expected fall in fourth-quarter revenue, sending shares of the No. Mass cancellations over the Christmas and New Year holiday period and higher incentives given to employees had an impact on carriers, with American Airlines forecasting higher fourth-quarter costs. The company expects cost per available seat mile—the standard measure in the industry showing what it costs to fly one seat one mile—to be up between 13% and 14%, compared with its previous guidance of a rise of between 8% and 10%.
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Jan 11 (Reuters) - American Airlines Group Inc AAL.O on Tuesday forecast a smaller-than-expected fall in fourth-quarter revenue, sending shares of the No. Mass cancellations over the Christmas and New Year holiday period and higher incentives given to employees had an impact on carriers, with American Airlines forecasting higher fourth-quarter costs. The company expects cost per available seat mile—the standard measure in the industry showing what it costs to fly one seat one mile—to be up between 13% and 14%, compared with its previous guidance of a rise of between 8% and 10%.
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Jan 11 (Reuters) - American Airlines Group Inc AAL.O on Tuesday forecast a smaller-than-expected fall in fourth-quarter revenue, sending shares of the No. The company said it expects revenue for the quarter to be down about 17%, compared with its prior expectation of an about 20% fall. Mass cancellations over the Christmas and New Year holiday period and higher incentives given to employees had an impact on carriers, with American Airlines forecasting higher fourth-quarter costs.
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70e6d9ee-5be1-49d5-b264-16e40fff9b50
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3887.0
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2022-01-11 00:00:00 UTC
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Pre-Market Most Active for Jan 11, 2022 : BDTX, SQQQ, FTI, QQQ, AAL, TQQQ, F, NOK, RIO, AAPL, SAN, PLTR
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-jan-11-2022-%3A-bdtx-sqqq-fti-qqq-aal-tqqq-f-nok-rio-aapl-san
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is up 27.53 to 15,641.96. The total Pre-Market volume is currently 23,990,292 shares traded.
The following are the most active stocks for the pre-market session:
Black Diamond Therapeutics, Inc. (BDTX) is +0.85 at $5.35, with 6,610,517 shares traded., following a 52-week high recorded in prior regular session.
ProShares UltraPro Short QQQ (SQQQ) is -0.06 at $6.65, with 3,765,497 shares traded. This represents a 18.12% increase from its 52 Week Low.
TechnipFMC plc (FTI) is -0.49 at $6.29, with 1,598,809 shares traded. FTI's current last sale is 62.9% of the target price of $10.
Invesco QQQ Trust, Series 1 (QQQ) is +1.52 at $381.63, with 770,127 shares traded. This represents a 28.3% increase from its 52 Week Low.
American Airlines Group, Inc. (AAL) is +0.21 at $19.00, with 769,049 shares traded. AAL's current last sale is 97.44% of the target price of $19.5.
ProShares UltraPro QQQ (TQQQ) is +1.5 at $146.10, with 743,528 shares traded. This represents a 94.72% increase from its 52 Week Low.
Ford Motor Company (F) is -0.04 at $23.81, with 680,874 shares traded. F's current last sale is 125.32% of the target price of $19.
Nokia Corporation (NOK) is unchanged at $6.17, with 596,294 shares traded. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
Rio Tinto Plc (RIO) is unchanged at $72.71, with 528,441 shares traded. RIO's current last sale is 103.87% of the target price of $70.
Apple Inc. (AAPL) is +1.01 at $173.20, with 517,548 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Banco Santander, S.A. (SAN) is -0.06 at $3.53, with 375,092 shares traded. SAN's current last sale is 84.05% of the target price of $4.2.
Palantir Technologies Inc. (PLTR) is +0.04 at $16.54, with 329,616 shares traded. PLTR's current last sale is 71.91% of the target price of $23.
The views and 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 +0.21 at $19.00, with 769,049 shares traded. AAL's current last sale is 97.44% of the target price of $19.5. Black Diamond Therapeutics, Inc. (BDTX) is +0.85 at $5.35, with 6,610,517 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.21 at $19.00, with 769,049 shares traded. AAL's current last sale is 97.44% of the target price of $19.5. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
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American Airlines Group, Inc. (AAL) is +0.21 at $19.00, with 769,049 shares traded. AAL's current last sale is 97.44% of the target price of $19.5. The total Pre-Market volume is currently 23,990,292 shares traded.
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AAL's current last sale is 97.44% of the target price of $19.5. American Airlines Group, Inc. (AAL) is +0.21 at $19.00, with 769,049 shares traded. SAN's current last sale is 84.05% of the target price of $4.2.
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d8f66b49-e2c8-4190-b258-e6afd050d211
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3888.0
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2022-01-10 00:00:00 UTC
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Heavy rains force miners to halt operations in southeast Brazil
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AAL
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https://www.nasdaq.com/articles/heavy-rains-force-miners-to-halt-operations-in-southeast-brazil-0
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nan
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nan
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By Gabriel Araujo
SAO PAULO, Jan 10 (Reuters) - Heavy rainfall in southeastern Brazil has prompted miners including Vale SA VALE3.SA to suspend some operations, they said on Monday, after downpours caused deadly floods in the northeast and threatened to delay harvests in the midwest.
Rainfall is expected to remain heavy this week in most of top mining state Minas Gerais, after runoff closed roads and railways.
The rains may also have contributed to the dramatic collapse of a canyon rock face in the state on Saturday, killing 10 people visiting a waterfall on boats.
In the northeastern state of Bahia, flooding displaced about 50,000 families and killed some two dozen over the holidays.
Vale said on Monday it has partially suspended operations at its Southeastern and Southern iron ore systems due to the bad weather, but reaffirmed its 2022 production target as the Northern system was not affected.
Samarco, a joint venture between Vale and BHP BHP.AX, also cut back operations in its Germano complex, producing at an estimated 50% of capacity until weather allows it to ramp up.
Brazilian steelmakers Usiminas USIM5.SA and Companhia Siderurgica Nacional (CSN) CSNA3.SA also halted operations of their mining units.
Anglo American AAL.L said its Minas-Rio system continued to operate as planned during the rainy season.
Over the weekend, France's Vallourec VLLP.PA paused its Pau Branco mine after heavy rainfall caused a dike to overflow.
"We see the news as potentially negative for the entire mining sector, as it could result in new regulations to suspend existing operations or delay new projects," analysts at XP Investimentos said in a research note.
BTG Pactual analysts said economic impacts could be muted if normal operations are restored quickly, but noted it all depends on how long the heavy rainfall will last.
"We estimate there could be more than 100 million tonnes of annualized iron ore supply at risk at this stage in Brazil, which is a relevant number (roughly 7% of seaborne supply and about 30% of Brazilian supply), so clearly the stakes are high and we could see impacts on short-term iron ore movements," they said.
INTERRUPTED RAILWAYS, CLOSED HIGHWAYS
Vale said in a securities filing that train circulation at its Vitoria-Minas railway was partially interrupted by the rains, halting output at the Brucutu mine and the Mariana complex due to a lack of transportation.
Both mines are part of Vale's Southeastern system, along with the Itabira complex, where production was not affected.
In the Southern system, Vale said all of its complexes had to halt production because key highways BR-040 and MG-030 were closed.
Vale said its Northern System is still operating as planned, and maintained its 2022 iron ore production forecast at 320-335 million tonnes. It noted its production plan takes into account the seasonal rainfall impact.
The miner also said the rains had not changed the alert level for any of its tailing dams which are under constant, "real-time" monitoring.
"While Vale did not change its production guidance for 2022, we believe that the market could start to project volumes closer to the low end of the range," Itau BBA analysts said, noting that iron ore prices could be supported at their current high levels.
Vale's two halted operations accounted for about 31% of its output in the first nine months of 2021, the Itau BBA analysts said. A two-week halt in these operations could represent an impact of about 3 million tonnes for the company, according to their preliminary calculations.
Steelmaker Usiminas announced a stoppage at its mining subsidiary Mineracao Usiminas (MUSA) due to weather, but said it had enough inventory of raw material to avoid disruption.
The company also said its Barragem Central tailings dam, which has been inactive since 2014, reached alert level 1 - an initial warning that does not mean a safety breach was noted.
CSN and its steel mining subsidiary CSN Mineracao SA CMIN3.SA announced a halt to operations of the Casa de Pedra mine, but said they are expected to resume in coming days.
They said port operations at the Itaguai coal terminal, located in the neighboring state of Rio de Janeiro, were also suspended due to excessive rains.
On Sunday, Brazil's regulatory National Mining Agency (ANM) suspended operations at French steel pipe maker Vallourec's Pau Branco iron ore mine in the state after a dike overflowed, cutting off a federal highway. There were no reported injuries.
"After the dam incidents of the past, we welcome the zero tolerance approach that miners are taking in the country to minimize operational risks, which we consider the prudent approach," BTG Pactual said.
(Reporting by Gabriel Araujo; Additional reporting by Roberto Samora and Marta Nogueira; Editing by Bill Berkrot and Alistair Bell)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Anglo American AAL.L said its Minas-Rio system continued to operate as planned during the rainy season. By Gabriel Araujo SAO PAULO, Jan 10 (Reuters) - Heavy rainfall in southeastern Brazil has prompted miners including Vale SA VALE3.SA to suspend some operations, they said on Monday, after downpours caused deadly floods in the northeast and threatened to delay harvests in the midwest. Vale said in a securities filing that train circulation at its Vitoria-Minas railway was partially interrupted by the rains, halting output at the Brucutu mine and the Mariana complex due to a lack of transportation.
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Anglo American AAL.L said its Minas-Rio system continued to operate as planned during the rainy season. Vale said on Monday it has partially suspended operations at its Southeastern and Southern iron ore systems due to the bad weather, but reaffirmed its 2022 production target as the Northern system was not affected. CSN and its steel mining subsidiary CSN Mineracao SA CMIN3.SA announced a halt to operations of the Casa de Pedra mine, but said they are expected to resume in coming days.
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Anglo American AAL.L said its Minas-Rio system continued to operate as planned during the rainy season. By Gabriel Araujo SAO PAULO, Jan 10 (Reuters) - Heavy rainfall in southeastern Brazil has prompted miners including Vale SA VALE3.SA to suspend some operations, they said on Monday, after downpours caused deadly floods in the northeast and threatened to delay harvests in the midwest. Vale said on Monday it has partially suspended operations at its Southeastern and Southern iron ore systems due to the bad weather, but reaffirmed its 2022 production target as the Northern system was not affected.
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Anglo American AAL.L said its Minas-Rio system continued to operate as planned during the rainy season. Over the weekend, France's Vallourec VLLP.PA paused its Pau Branco mine after heavy rainfall caused a dike to overflow. Vale said its Northern System is still operating as planned, and maintained its 2022 iron ore production forecast at 320-335 million tonnes.
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a17fe4c4-bd5b-433e-b29c-487764d929cb
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3889.0
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2022-01-07 00:00:00 UTC
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U.S. FAA details 50 airports that will have 5G buffer zones
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-details-50-airports-that-will-have-5g-buffer-zones-0
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nan
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nan
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By David Shepardson
WASHINGTON, Jan 7 (Reuters) - The Federal Aviation Administration (FAA) on Friday disclosed a list of 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service on Jan. 19.
AT&T T.N and Verizon Communications VZ.N on Monday agreed to buffer zones around 50 airports to reduce the risk of disruption from potential interference to sensitive airplane instruments like altimeters. They also agreed to delay deployment for two weeks, averting an aviation safety standoff.
The list includes airports in New York City, Los Angeles, Chicago, Las Vegas, Minneapolis, Detroit, Dallas, Philadelphia, Seattle and Miami.
The FAA said it does not "not necessarily" mean that low-visibility flights cannot occur at airports that are not among the 50.
AT&T and Verizon, which won nearly all of the C-Band spectrum in an $80-billion auction last year, declined comment.
On Thursday, the FAA renewed warnings that despite the agreement 5G wireless service could still disrupt flights, saying "even with the temporary buffer around 50 airports, 5G deployment will increase the risk of disruption during low visibility" including "flight cancellations, diverted flights, and delays during periods of low visibility."
Some major airports such as Denver, Atlanta and Ronald Reagan Washington National are not on the list because 5G is not yet being deployed, while others are not on the list because "5G towers are far enough away that a natural buffer exists."
Other airports not listed do not currently have the ability to allow low-visibility landings, the FAA said. It said the delay would allow it to evaluate ways to minimize disruptions, and also gives companies more time to prepare.
"If there’s the possibility of a risk to the flying public, we are obligated to pause the activity, until we can prove it is safe," the FAA said.
ACI-NA President and CEO Kevin Burke, who heads the association representing U.S. and Canadian airports, said on Friday the FAA list "is largely irrelevant because the entire aviation system is about to be adversely impacted by this poorly planned and coordinated expansion of 5G service in and around airports." He said the "so-called fix will create winners and losers within the airport community, and the entire aviation system will suffer under the terms of this deal."
Airlines for America, a trade group representing U.S. passenger and cargo carriers, said it appreciated the "FAA’s efforts to implement mitigations for airports that may be most impacted by disruptions generated by the deployment of new 5G service."
(Reporting by David Shepardson Editing by Sandra Maler and Grant McCool)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, Jan 7 (Reuters) - The Federal Aviation Administration (FAA) on Friday disclosed a list of 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service on Jan. 19. The list includes airports in New York City, Los Angeles, Chicago, Las Vegas, Minneapolis, Detroit, Dallas, Philadelphia, Seattle and Miami. Airlines for America, a trade group representing U.S. passenger and cargo carriers, said it appreciated the "FAA’s efforts to implement mitigations for airports that may be most impacted by disruptions generated by the deployment of new 5G service."
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By David Shepardson WASHINGTON, Jan 7 (Reuters) - The Federal Aviation Administration (FAA) on Friday disclosed a list of 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service on Jan. 19. AT&T T.N and Verizon Communications VZ.N on Monday agreed to buffer zones around 50 airports to reduce the risk of disruption from potential interference to sensitive airplane instruments like altimeters. On Thursday, the FAA renewed warnings that despite the agreement 5G wireless service could still disrupt flights, saying "even with the temporary buffer around 50 airports, 5G deployment will increase the risk of disruption during low visibility" including "flight cancellations, diverted flights, and delays during periods of low visibility."
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By David Shepardson WASHINGTON, Jan 7 (Reuters) - The Federal Aviation Administration (FAA) on Friday disclosed a list of 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service on Jan. 19. On Thursday, the FAA renewed warnings that despite the agreement 5G wireless service could still disrupt flights, saying "even with the temporary buffer around 50 airports, 5G deployment will increase the risk of disruption during low visibility" including "flight cancellations, diverted flights, and delays during periods of low visibility." ACI-NA President and CEO Kevin Burke, who heads the association representing U.S. and Canadian airports, said on Friday the FAA list "is largely irrelevant because the entire aviation system is about to be adversely impacted by this poorly planned and coordinated expansion of 5G service in and around airports."
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By David Shepardson WASHINGTON, Jan 7 (Reuters) - The Federal Aviation Administration (FAA) on Friday disclosed a list of 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service on Jan. 19. The FAA said it does not "not necessarily" mean that low-visibility flights cannot occur at airports that are not among the 50. ACI-NA President and CEO Kevin Burke, who heads the association representing U.S. and Canadian airports, said on Friday the FAA list "is largely irrelevant because the entire aviation system is about to be adversely impacted by this poorly planned and coordinated expansion of 5G service in and around airports."
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19c94156-d972-4db0-a7b4-c72d271a7ec1
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3890.0
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2022-01-07 00:00:00 UTC
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U.S. FAA details 50 airports that will have 5G buffer zones
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-details-50-airports-that-will-have-5g-buffer-zones
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nan
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nan
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WASHINGTON, Jan 7 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Friday disclosed a list of 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service on Jan. 19.
AT&T and Verizon Communications on Monday agreed to buffer zones around 50 airports to reduce the risk of disruption from potential interference to sensitive airplane instruments like altimeters. They also agreed to delay deployment for two weeks, averting an aviation safety standoff.
The list includes airports in New York City, Los Angeles, Chicago, Las Vegas, Minneapolis, Detroit, Dallas, Philadelphia, Seattle and Miami. (Reporting by David ShepardsEditing by Sandra Maler) ((David.Shepardson@thomsonreuters.com; 2028988324;)) Keywords: USA AVIATION/5G (URGENT)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, Jan 7 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Friday disclosed a list of 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service on Jan. 19. AT&T and Verizon Communications on Monday agreed to buffer zones around 50 airports to reduce the risk of disruption from potential interference to sensitive airplane instruments like altimeters. The list includes airports in New York City, Los Angeles, Chicago, Las Vegas, Minneapolis, Detroit, Dallas, Philadelphia, Seattle and Miami.
|
WASHINGTON, Jan 7 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Friday disclosed a list of 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service on Jan. 19. AT&T and Verizon Communications on Monday agreed to buffer zones around 50 airports to reduce the risk of disruption from potential interference to sensitive airplane instruments like altimeters. The list includes airports in New York City, Los Angeles, Chicago, Las Vegas, Minneapolis, Detroit, Dallas, Philadelphia, Seattle and Miami.
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WASHINGTON, Jan 7 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Friday disclosed a list of 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service on Jan. 19. AT&T and Verizon Communications on Monday agreed to buffer zones around 50 airports to reduce the risk of disruption from potential interference to sensitive airplane instruments like altimeters. (Reporting by David ShepardsEditing by Sandra Maler) ((David.Shepardson@thomsonreuters.com; 2028988324;)) Keywords: USA AVIATION/5G (URGENT) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Jan 7 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Friday disclosed a list of 50 U.S. airports that will have buffer zones when wireless carriers turn on new 5G C-band service on Jan. 19. AT&T and Verizon Communications on Monday agreed to buffer zones around 50 airports to reduce the risk of disruption from potential interference to sensitive airplane instruments like altimeters. They also agreed to delay deployment for two weeks, averting an aviation safety standoff.
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0144d68d-e6b8-4b8a-98ba-229d45bd39ba
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3891.0
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2022-01-07 00:00:00 UTC
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Why Airline Stocks Were Up Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-were-up-today
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nan
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nan
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What happened
The airline sector is poised for a rebound in 2022, according to one Wall Street analyst, making it a great time to buy in. That has airline stocks that trade in New York soaring higher on Friday, with Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), and Azul (NYSE: AZUL) all up as much as 5% during the session.
So what
Airline stocks had a miserable 2020 due to the pandemic, followed by an uneven 2021 as initial optimism after vaccines were released was replaced by new worries about the rise of variants. As the year went on, investor sentiment concerning airlines got worse and worse.
Image source: Getty Images.
Bank of America analyst Andrew Didora thinks the tide is about to turn, saying interest in the sector is at its lowest in recent memory but adding that "times of poor sentiment are usually good times to buy airline stocks." In this case, Didora is hopeful that the omicron variant will soon be past its peak in the U.S., allowing the gradual return of corporate travelers and a healthy consumer eager to travel heading into spring break and summer.
Didora favors Delta over American or United Airlines Group (NASDAQ: UAL), citing Delta's strong balance sheet, attractive valuation, and history of disciplined growth. He also likes a number of discounters -- the airlines that tend to react best when leisure travel is leading the way.
While not naming Spirit as one of his top picks, the ultra-low cost carrier is popular among many on Wall Street due to its industry-low costs.
Azul is based in Brazil, and has its own COVID-19 issues to wrestle with. But the airline by virtue of trading in New York tends to rise and fall along with the U.S. carriers. And although Brazil has trailed other parts of the world in terms of vaccination rates, Azul has established itself as one of the Latin America's best operators, and it should have opportunities to gain market share as the rest of the industry digs out from the damage caused by the pandemic.
Now what
It's hard to get too excited based on hopes that things can't get any worse. That's not quite what Didora is saying, but investors should be mindful that even if the worst is over, there is still a long way to go before conditions normalize. International travel remains low, and higher-margin business travel is unlikely to rebound while most office places are still closed.
Delta is a strong choice for those who want to buy in and wait for a recovery, but investors need to understand that they could be in for a volatile ride if a new variant emerges or the pandemic takes some other unexpected twist. Travel will one day recover, but it is far from certain that 2022 will be any better than 2021 for the airline stocks.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Lou Whiteman owns Delta Air Lines and Spirit Airlines. The Motley Fool owns and recommends Spirit Airlines. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That has airline stocks that trade in New York soaring higher on Friday, with Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), and Azul (NYSE: AZUL) all up as much as 5% during the session. So what Airline stocks had a miserable 2020 due to the pandemic, followed by an uneven 2021 as initial optimism after vaccines were released was replaced by new worries about the rise of variants. And although Brazil has trailed other parts of the world in terms of vaccination rates, Azul has established itself as one of the Latin America's best operators, and it should have opportunities to gain market share as the rest of the industry digs out from the damage caused by the pandemic.
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That has airline stocks that trade in New York soaring higher on Friday, with Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), and Azul (NYSE: AZUL) all up as much as 5% during the session. Lou Whiteman owns Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines.
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That has airline stocks that trade in New York soaring higher on Friday, with Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), and Azul (NYSE: AZUL) all up as much as 5% during the session. Bank of America analyst Andrew Didora thinks the tide is about to turn, saying interest in the sector is at its lowest in recent memory but adding that "times of poor sentiment are usually good times to buy airline stocks." 10 stocks we like better than Delta Air Lines When our award-winning analyst team has a stock tip, it can pay to listen.
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That has airline stocks that trade in New York soaring higher on Friday, with Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), and Azul (NYSE: AZUL) all up as much as 5% during the session. Travel will one day recover, but it is far from certain that 2022 will be any better than 2021 for the airline stocks. That's right -- they think these 10 stocks are even better buys.
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26e38932-794f-4d81-8c25-86783b1ec8f0
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3892.0
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2022-01-07 00:00:00 UTC
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Friday Sector Leaders: Airlines, Education & Training Services
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AAL
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https://www.nasdaq.com/articles/friday-sector-leaders%3A-airlines-education-training-services
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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 2.3%. Leading the group were shares of Frontier Group Holdings, up about 5.2% and shares of American Airlines Group up about 5.1% on the day.
Also showing relative strength are education & training services shares, up on the day by about 2.1% as a group, led by Aspen Group, trading higher by about 11.6% and Gaotu Techedu Inc American Depositary Shares, trading higher by about 4.2% on Friday.
VIDEO: Friday Sector Leaders: Airlines, Education & Training Services
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, airlines shares were relative leaders, up on the day by about 2.3%. Also showing relative strength are education & training services shares, up on the day by about 2.1% as a group, led by Aspen Group, trading higher by about 11.6% and Gaotu Techedu Inc American Depositary Shares, trading higher by about 4.2% on Friday. VIDEO: Friday Sector Leaders: Airlines, Education & Training Services The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, airlines shares were relative leaders, up on the day by about 2.3%. Also showing relative strength are education & training services shares, up on the day by about 2.1% as a group, led by Aspen Group, trading higher by about 11.6% and Gaotu Techedu Inc American Depositary Shares, trading higher by about 4.2% on Friday. VIDEO: Friday Sector Leaders: Airlines, Education & Training Services The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Leading the group were shares of Frontier Group Holdings, up about 5.2% and shares of American Airlines Group up about 5.1% on the day. Also showing relative strength are education & training services shares, up on the day by about 2.1% as a group, led by Aspen Group, trading higher by about 11.6% and Gaotu Techedu Inc American Depositary Shares, trading higher by about 4.2% on Friday. VIDEO: Friday Sector Leaders: Airlines, Education & Training Services The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, airlines shares were relative leaders, up on the day by about 2.3%. Also showing relative strength are education & training services shares, up on the day by about 2.1% as a group, led by Aspen Group, trading higher by about 11.6% and Gaotu Techedu Inc American Depositary Shares, trading higher by about 4.2% on Friday. VIDEO: Friday Sector Leaders: Airlines, Education & Training Services The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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897a5d63-781b-402e-83ec-e478475c8fc6
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3893.0
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2022-01-07 00:00:00 UTC
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Omicron Rising: Avoid These 3 Stocks in 2022
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AAL
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https://www.nasdaq.com/articles/omicron-rising%3A-avoid-these-3-stocks-in-2022
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nan
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nan
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The stock market can move in different directions, often based on the latest news events. For example, many technology stocks have brutally sold off on reports of potentially rising interest rates, while many value stocks, including those beaten up during the pandemic, have gotten red-hot over the past month.
But while it might feel safe to buy what keeps going up each day, the market can change directions quickly and shouldn't be relied on to determine what's a good investment. For instance, these three stocks are up nicely over the past month but don't have the fundamentals to keep up this performance for long.
Image source: Getty Images.
1. Carnival
The cruise line industry matches up poorly against the omicron variant. A cruise ship is a vessel that puts a lot of people in close quarters with each other, exacerbating the potential for spreading an infectious, and sometimes deadly, respiratory virus.
But cruises are fun, and as more vaccinations are administered through the population, companies like Carnival (NYSE: CCL) have started to see some life. In Carnival's fourth-quarter 2021 (ending Nov. 30), customer deposits were said to have grown for three straight quarters, hitting $3.5 billion. Passenger occupancy rose from 54% in Q3 2021 to 58% in Q4 and management signaled that 2022 could see continued improvement.
This momentum, along with a shift toward value stocks in the broader market, could explain the stock's recent price action; share prices are up more than 20% in just the past month or so. However, look closer at the chart below.
CCL Revenue (TTM) data by YCharts
Carnival has borrowed a ton of money to stay afloat throughout the pandemic, inflating the company's enterprise value to above its pre-pandemic valuation. The stock is not cheap, even though the share price is down.
Meanwhile, the business is burning cash, evidenced by its negative free cash flow. To top it off, the CDC recently discouraged cruise travel because of the omicron variant.
2. Norwegian Cruise Line Holdings
Fellow cruise line company Norwegian Cruise Line Holdings (NYSE: NCLH) tells a similar and unfortunate story. Like Carnival, Norwegian has had to aggressively borrow money to help it stay afloat, pushing the business's enterprise value higher than before the pandemic.
NCLH Revenue (TTM) data by YCharts
The company is burning cash, but Norwegian's weaker balance sheet could have it in an even deeper financial hole. Its debt-to-capital ratio expresses its total debt compared to its overall capital. In other words, it measures leverage and determines how a business is funding itself. With a ratio of 81%, nearly all of Norwegian's capital is coming from debt, which could put the company in danger if it continues getting worse.
Norwegian shares have risen 18% this month, but the business is unhealthy as long as it keeps losing money, burning $275 million per month in 2021 Q3. The company is preparing to resume operations, estimating that it will lose $350 million per month in Q4 as it revamps the business. Still, if omicron depresses travel demand, it could put Norwegian in a problematic situation.
3. American Airlines Group
Airlines have dealt with similar challenges as cruise lines, but air travel is a more diversified industry used for vacations, business, and long-distance trips. Airlines are a tricky business; it costs a lot of money to fuel, maintain, and operate planes, whether they fly empty or full.
Lower air travel has hurt American Airlines (NASDAQ: AAL) over the past couple of years. The company was virtually rescued from bankruptcy in 2021, taking government relief loans when passenger traffic plunged almost to zero.
AAL Debt To Capital (Quarterly) data by YCharts
But even though American Airlines has managed to survive thus far, that doesn't mean the business is a wise investment. According to TSA records, passenger traffic is at roughly 70% of 2019 levels, which hurts American's profitability because it must fly at less than total capacity. And just like Carnival and Norwegian, debt has pushed the enterprise value above 2019 levels.
Meanwhile, the balance sheet is highly leveraged. As the chart demonstrates, its debt-to-capital ratio is at 124%, and American is still losing money. The stock price may be up 12% over the past month and 21% over the past year, but American Airlines could be a very risky stock until its financials improve.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends Carnival. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lower air travel has hurt American Airlines (NASDAQ: AAL) over the past couple of years. AAL Debt To Capital (Quarterly) data by YCharts But even though American Airlines has managed to survive thus far, that doesn't mean the business is a wise investment. A cruise ship is a vessel that puts a lot of people in close quarters with each other, exacerbating the potential for spreading an infectious, and sometimes deadly, respiratory virus.
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Lower air travel has hurt American Airlines (NASDAQ: AAL) over the past couple of years. AAL Debt To Capital (Quarterly) data by YCharts But even though American Airlines has managed to survive thus far, that doesn't mean the business is a wise investment. CCL Revenue (TTM) data by YCharts Carnival has borrowed a ton of money to stay afloat throughout the pandemic, inflating the company's enterprise value to above its pre-pandemic valuation.
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Lower air travel has hurt American Airlines (NASDAQ: AAL) over the past couple of years. AAL Debt To Capital (Quarterly) data by YCharts But even though American Airlines has managed to survive thus far, that doesn't mean the business is a wise investment. This momentum, along with a shift toward value stocks in the broader market, could explain the stock's recent price action; share prices are up more than 20% in just the past month or so.
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AAL Debt To Capital (Quarterly) data by YCharts But even though American Airlines has managed to survive thus far, that doesn't mean the business is a wise investment. Lower air travel has hurt American Airlines (NASDAQ: AAL) over the past couple of years. Norwegian shares have risen 18% this month, but the business is unhealthy as long as it keeps losing money, burning $275 million per month in 2021 Q3.
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9a432e15-64f5-45b5-943d-f20ad8997329
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3894.0
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2022-01-06 00:00:00 UTC
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U.S. flights still face risks from new 5G service -FAA
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AAL
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https://www.nasdaq.com/articles/u.s.-flights-still-face-risks-from-new-5g-service-faa
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nan
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nan
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By David Shepardson
WASHINGTON, Jan 6 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Thursday issued fresh warnings that new 5G wireless service could still disrupt flights, saying there were "big differences" between U.S. aviation protections and those used in France.
Late Thursday, the FAA launched a dedicated webpage on 5G and aviation safety raising questions about potential impact on sensitive airplane electronics like altimeters.
This week, AT&T and Verizon agreed to adopt similar precautions to those in France. On Monday, the carriers said they would delay use of C-Band spectrum for wireless service until Jan. 19 -- an agreement aimed at heading off an aviation safety crisis and flight disruptions.
On Tuesday, President Joe Biden hailed the deal between wireless carriers and U.S. regulators allowing 5G deployment in two weeks. The FAA said the delay would allow it to evaluate ways to minimize disruptions to altimeters, and also gives companies more time to prepare.
The FAA said 5G airport buffer zones in France cover "96 seconds of flight" while safety precautions around U.S. airports "only protect the last 20 seconds of flight." It said temporary U.S. lower power levels will be 2.5 times higher than France. It noted that France requires antennas be tilted downward to limit harmful interference, a rule the United States lacks.
"If there’s the possibility of a risk to the flying public, we are obligated to pause the activity, until we can prove it is safe," the FAA website said. "Radar altimeters still must be proven safe in the overall U.S. 5G environment to fly into these airports, so we must take into account the higher signal strength when assessing safety and risk."
AT&T and Verizon won nearly all of the C-Band spectrum in an $80-billion auction last year. The FAA in early November issued a bulletin warning action may be needed to address potential interference from 5G, which prompted the carriers to agree to delay deployment for 30 days to Jan. 5.
The deal Monday assured AT&T and Verizon they will be able to start service this month and they agreed to temporary buffer zones around 50 airports that the FAA will identify by Friday.
The FAA website said 50 airports are covered because the "wireless companies only agreed to 50 airports." AT&T and Verizon did not immediately comment.
Biden said the agreement "puts us on track to substantially reduce disruptions to air operations" after Jan. 19.
The FAA said that "even with the temporary buffer around 50 airports, 5G deployment will increase the risk of disruption during low visibility" including "flight cancellations, diverted flights, and delays during periods of low visibility."
The FAA said it is working during the two-week delay "to complete evaluations of the most popular altimeters allowing some aircraft to operate in 5G and minimize disruptions."
(Reporting by David Shepardson; Editing by Leslie Adler and David Gregorio)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Late Thursday, the FAA launched a dedicated webpage on 5G and aviation safety raising questions about potential impact on sensitive airplane electronics like altimeters. On Monday, the carriers said they would delay use of C-Band spectrum for wireless service until Jan. 19 -- an agreement aimed at heading off an aviation safety crisis and flight disruptions. The FAA in early November issued a bulletin warning action may be needed to address potential interference from 5G, which prompted the carriers to agree to delay deployment for 30 days to Jan. 5.
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By David Shepardson WASHINGTON, Jan 6 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Thursday issued fresh warnings that new 5G wireless service could still disrupt flights, saying there were "big differences" between U.S. aviation protections and those used in France. The FAA said 5G airport buffer zones in France cover "96 seconds of flight" while safety precautions around U.S. airports "only protect the last 20 seconds of flight." The FAA said that "even with the temporary buffer around 50 airports, 5G deployment will increase the risk of disruption during low visibility" including "flight cancellations, diverted flights, and delays during periods of low visibility."
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By David Shepardson WASHINGTON, Jan 6 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Thursday issued fresh warnings that new 5G wireless service could still disrupt flights, saying there were "big differences" between U.S. aviation protections and those used in France. The FAA said 5G airport buffer zones in France cover "96 seconds of flight" while safety precautions around U.S. airports "only protect the last 20 seconds of flight." The FAA said that "even with the temporary buffer around 50 airports, 5G deployment will increase the risk of disruption during low visibility" including "flight cancellations, diverted flights, and delays during periods of low visibility."
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By David Shepardson WASHINGTON, Jan 6 (Reuters) - The U.S. Federal Aviation Administration (FAA) on Thursday issued fresh warnings that new 5G wireless service could still disrupt flights, saying there were "big differences" between U.S. aviation protections and those used in France. This week, AT&T and Verizon agreed to adopt similar precautions to those in France. The FAA said 5G airport buffer zones in France cover "96 seconds of flight" while safety precautions around U.S. airports "only protect the last 20 seconds of flight."
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2419ba12-70cc-4f66-bf0f-9cc48dab9b40
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3895.0
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2022-01-06 00:00:00 UTC
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Interesting AAL Put And Call Options For February 25th
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-february-25th
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the February 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 25th contracts and identified one put and one call contract of particular interest.
The put contract at the $18.50 strike price has a current bid of $1.15. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $18.50, but will also collect the premium, putting the cost basis of the shares at $17.35 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $18.73/share today.
Because the $18.50 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 6.22% return on the cash commitment, or 45.38% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $18.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $19.00 strike price has a current bid of $1.12. If an investor was to purchase shares of AAL stock at the current price level of $18.73/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $19.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.42% if the stock gets called away at the February 25th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $19.00 strike highlighted in red:
Considering the fact that the $19.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.98% boost of extra return to the investor, or 43.65% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $18.73) to be 47%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $19.00 strike highlighted in red: Considering the fact that the $19.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the February 25th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $19.00 strike highlighted in red: Considering the fact that the $19.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the February 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 25th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $19.00 strike highlighted in red: Considering the fact that the $19.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the February 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 25th contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $19.00 strike highlighted in red: Considering the fact that the $19.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the February 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 25th contracts and identified one put and one call contract of particular interest.
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d967e105-d812-4f26-9062-3625b8450f51
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3896.0
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2022-01-04 00:00:00 UTC
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Chile's Nov. copper output falls amid drops from Codelco and Escondida - Cochilco
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AAL
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https://www.nasdaq.com/articles/chiles-nov.-copper-output-falls-amid-drops-from-codelco-and-escondida-cochilco
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nan
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nan
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SANTIAGO, Jan 4 (Reuters) - Chile's total copper production in November fell by 0.6% year-on-year to 481,800 tons, due to drops from state-owned Codelco and the giant Escondida mine, the Chilean Copper Commission (Cochilco) reported on Tuesday.
Codelco's production saw an output drop of 7.4% in November compared with the same period of the previous year to 153,800 tonnes, accumulating a 0.4% drop in 2021 so far.
Extraction at BHP's BHP.AX Escondida, the world's largest copper mine, fell by 11.6% year-on-year to 80,300 tonnes in November. In 2021 through November, the mine recorded a 14.5% drop.
However, the Collahuasi copper mine - a joint venture by Glencore GLEN.N and Anglo American AAL.L - reported a 5.1% year-on-year rise in production to 50,700 tonnes, Cochilco said. Its 2021 output was 0.8% down from the previous year.
(Reporting by Natalia Ramos; Writing by Peter Frontini Editing by Marguerita Choy)
((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;))
The views and 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 Collahuasi copper mine - a joint venture by Glencore GLEN.N and Anglo American AAL.L - reported a 5.1% year-on-year rise in production to 50,700 tonnes, Cochilco said. SANTIAGO, Jan 4 (Reuters) - Chile's total copper production in November fell by 0.6% year-on-year to 481,800 tons, due to drops from state-owned Codelco and the giant Escondida mine, the Chilean Copper Commission (Cochilco) reported on Tuesday. Extraction at BHP's BHP.AX Escondida, the world's largest copper mine, fell by 11.6% year-on-year to 80,300 tonnes in November.
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However, the Collahuasi copper mine - a joint venture by Glencore GLEN.N and Anglo American AAL.L - reported a 5.1% year-on-year rise in production to 50,700 tonnes, Cochilco said. SANTIAGO, Jan 4 (Reuters) - Chile's total copper production in November fell by 0.6% year-on-year to 481,800 tons, due to drops from state-owned Codelco and the giant Escondida mine, the Chilean Copper Commission (Cochilco) reported on Tuesday. Codelco's production saw an output drop of 7.4% in November compared with the same period of the previous year to 153,800 tonnes, accumulating a 0.4% drop in 2021 so far.
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However, the Collahuasi copper mine - a joint venture by Glencore GLEN.N and Anglo American AAL.L - reported a 5.1% year-on-year rise in production to 50,700 tonnes, Cochilco said. SANTIAGO, Jan 4 (Reuters) - Chile's total copper production in November fell by 0.6% year-on-year to 481,800 tons, due to drops from state-owned Codelco and the giant Escondida mine, the Chilean Copper Commission (Cochilco) reported on Tuesday. Codelco's production saw an output drop of 7.4% in November compared with the same period of the previous year to 153,800 tonnes, accumulating a 0.4% drop in 2021 so far.
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However, the Collahuasi copper mine - a joint venture by Glencore GLEN.N and Anglo American AAL.L - reported a 5.1% year-on-year rise in production to 50,700 tonnes, Cochilco said. SANTIAGO, Jan 4 (Reuters) - Chile's total copper production in November fell by 0.6% year-on-year to 481,800 tons, due to drops from state-owned Codelco and the giant Escondida mine, the Chilean Copper Commission (Cochilco) reported on Tuesday. Codelco's production saw an output drop of 7.4% in November compared with the same period of the previous year to 153,800 tonnes, accumulating a 0.4% drop in 2021 so far.
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71a8bbac-7409-4bfb-b5c7-6dae1f36e6ba
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3897.0
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2022-01-04 00:00:00 UTC
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US STOCKS-Futures extend positive start to the year
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AAL
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https://www.nasdaq.com/articles/us-stocks-futures-extend-positive-start-to-the-year
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nan
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nan
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By Shreyashi Sanyal
Jan 4 (Reuters) - U.S. stock index futures rose on Tuesday, extending a strong start to the year after worries about the Omicron variant of the coronavirus subsided and travel stocks bounced.
Equity markets across the globe bounced for the second straight day of trading in 2022, with the World Health Organization saying more evidence is emerging that the coronavirus variant is affecting the upper respiratory tract, causing milder symptoms than previous variants. MKTS/GLOB
Travel stocks led premarket advances with a 2.7% rise in Carnival Corp CCL.N leading gains among cruise operators, while American Airlines AAL.O gained 0.9%.
Big technology stocks that led gain in the previous session also rose, with Apple Inc AAPL.O, Tesla Inc TSLA.O, Meta Platforms Inc FB.O, Netflix Inc NFLX.O and Amazon.com Inc AMZN.O gaining between 0.3% and 0.9%.
Ford Motor Co F.N added 1.5% after the automaker said it will nearly double annual production capacity for its red-hot F-150 Lightning electric pickup to 150,000 vehicles.
General Electric Co GE.N rose 2.2% after Credit Suisse upgraded the conglomerate's stock to "outperform" from "neutral".
Foot Locker Inc FL.N slipped 3.8% after J.P. Morgan downgraded the sports and footwear retailer's stock to "underweight" from "neutral".
At 6:28 a.m. ET, Dow e-minis 1YMcv1 were up 133 points, or 0.36%, S&P 500 e-minis EScv1 were up 18.75 points, or 0.39%, and Nasdaq 100 e-minis NQcv1 were up 61.5 points, or 0.37%.
Meanwhile, data due at 10 a.m. ET is expected to show U.S. manufacturing activity eased last month from a reading of 61.1 in November. Economists polled by Reuters forecast the ISM Manufacturing PMI index to fall to 60.
(Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Maju Samuel)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MKTS/GLOB Travel stocks led premarket advances with a 2.7% rise in Carnival Corp CCL.N leading gains among cruise operators, while American Airlines AAL.O gained 0.9%. Ford Motor Co F.N added 1.5% after the automaker said it will nearly double annual production capacity for its red-hot F-150 Lightning electric pickup to 150,000 vehicles. General Electric Co GE.N rose 2.2% after Credit Suisse upgraded the conglomerate's stock to "outperform" from "neutral".
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MKTS/GLOB Travel stocks led premarket advances with a 2.7% rise in Carnival Corp CCL.N leading gains among cruise operators, while American Airlines AAL.O gained 0.9%. By Shreyashi Sanyal Jan 4 (Reuters) - U.S. stock index futures rose on Tuesday, extending a strong start to the year after worries about the Omicron variant of the coronavirus subsided and travel stocks bounced. ET, Dow e-minis 1YMcv1 were up 133 points, or 0.36%, S&P 500 e-minis EScv1 were up 18.75 points, or 0.39%, and Nasdaq 100 e-minis NQcv1 were up 61.5 points, or 0.37%.
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MKTS/GLOB Travel stocks led premarket advances with a 2.7% rise in Carnival Corp CCL.N leading gains among cruise operators, while American Airlines AAL.O gained 0.9%. By Shreyashi Sanyal Jan 4 (Reuters) - U.S. stock index futures rose on Tuesday, extending a strong start to the year after worries about the Omicron variant of the coronavirus subsided and travel stocks bounced. Big technology stocks that led gain in the previous session also rose, with Apple Inc AAPL.O, Tesla Inc TSLA.O, Meta Platforms Inc FB.O, Netflix Inc NFLX.O and Amazon.com Inc AMZN.O gaining between 0.3% and 0.9%.
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MKTS/GLOB Travel stocks led premarket advances with a 2.7% rise in Carnival Corp CCL.N leading gains among cruise operators, while American Airlines AAL.O gained 0.9%. By Shreyashi Sanyal Jan 4 (Reuters) - U.S. stock index futures rose on Tuesday, extending a strong start to the year after worries about the Omicron variant of the coronavirus subsided and travel stocks bounced. Big technology stocks that led gain in the previous session also rose, with Apple Inc AAPL.O, Tesla Inc TSLA.O, Meta Platforms Inc FB.O, Netflix Inc NFLX.O and Amazon.com Inc AMZN.O gaining between 0.3% and 0.9%.
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ce48f321-9a89-4955-9348-1b89667374b1
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3898.0
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2022-01-04 00:00:00 UTC
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U.S. outlines deal with AT&T, Verizon over 5G delay -letter
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AAL
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https://www.nasdaq.com/articles/u.s.-outlines-deal-with-att-verizon-over-5g-delay-letter-0
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nan
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nan
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By David Shepardson
WASHINGTON, Jan 4 (Reuters) - U.S. transportation officials told wireless carriers the government will not seek any further delays in deployment of 5G wireless service beyond Jan. 19 absent any "unforeseen aviation safety issues," according to a previously unreported letter.
U.S. Transportation Secretary Pete Buttigieg and Federal Aviation Administration (FAA) chief Steve Dickson disclosed details in a joint letter late Monday to AT&T T.N and Verizon Communications VZ.N, outlining the agreement to delay C-Band wireless deployment by two weeks that had been set to begin Wednesday.
The agreement "will give us additional time and space to reduce the impacts to commercial flights," they wrote. "We are confident that your voluntary steps will support the safe coexistence of 5G C-Band deployment and aviation activities, helping to retain America’s economic strength and leadership role around the world."
The attached "final term sheet" said unless "unforeseen aviation safety issues" arise the U.S. agencies "will not seek or demand any further delays of C-Band deployment, in whole or in part, including a delay of return to routine operations."
An industry official told Reuters the deal gives them assurances they will be able to begin deployment this month.
The aviation industry and FAA have raised concerns about potential interference of 5G with sensitive aircraft electronics like radio altimeters that could disrupt flights.
AT&T and Verizon had agreed on Sunday to adopt exclusion zones for six months around some airports in a bid to mirror safeguards adopted by France.
The letter said that by Friday regulators will provide the carriers "with a list of no more than 50 priority airports that they would propose to be subject to the C-Band exclusion zones" that AT&T and Verizon had proposed Sunday.
Additional requests may be made for "voluntary surgical mitigation measures at any individual airport" but AT&T and Verizon "shall have sole discretion to determine if any requested mitigations, adjustments or alterations will be made."
AT&T and Verizon won nearly all of the C-Band spectrum in an $80-billion auction last year. In total, Verizon paid $52.9 billion for the spectrum, including incentive payments and clearing costs.
AT&T and Verizon in November had agreed to delay the deployment by 30 days to Jan. 5 after the FAA raised safety concerns and adopted voluntary precautionary measures for six months.
(Reporting by David Shepardson Editing by Nick Zieminski)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
U.S. Transportation Secretary Pete Buttigieg and Federal Aviation Administration (FAA) chief Steve Dickson disclosed details in a joint letter late Monday to AT&T T.N and Verizon Communications VZ.N, outlining the agreement to delay C-Band wireless deployment by two weeks that had been set to begin Wednesday. "We are confident that your voluntary steps will support the safe coexistence of 5G C-Band deployment and aviation activities, helping to retain America’s economic strength and leadership role around the world." AT&T and Verizon in November had agreed to delay the deployment by 30 days to Jan. 5 after the FAA raised safety concerns and adopted voluntary precautionary measures for six months.
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By David Shepardson WASHINGTON, Jan 4 (Reuters) - U.S. transportation officials told wireless carriers the government will not seek any further delays in deployment of 5G wireless service beyond Jan. 19 absent any "unforeseen aviation safety issues," according to a previously unreported letter. AT&T and Verizon had agreed on Sunday to adopt exclusion zones for six months around some airports in a bid to mirror safeguards adopted by France. AT&T and Verizon in November had agreed to delay the deployment by 30 days to Jan. 5 after the FAA raised safety concerns and adopted voluntary precautionary measures for six months.
|
By David Shepardson WASHINGTON, Jan 4 (Reuters) - U.S. transportation officials told wireless carriers the government will not seek any further delays in deployment of 5G wireless service beyond Jan. 19 absent any "unforeseen aviation safety issues," according to a previously unreported letter. U.S. Transportation Secretary Pete Buttigieg and Federal Aviation Administration (FAA) chief Steve Dickson disclosed details in a joint letter late Monday to AT&T T.N and Verizon Communications VZ.N, outlining the agreement to delay C-Band wireless deployment by two weeks that had been set to begin Wednesday. AT&T and Verizon in November had agreed to delay the deployment by 30 days to Jan. 5 after the FAA raised safety concerns and adopted voluntary precautionary measures for six months.
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By David Shepardson WASHINGTON, Jan 4 (Reuters) - U.S. transportation officials told wireless carriers the government will not seek any further delays in deployment of 5G wireless service beyond Jan. 19 absent any "unforeseen aviation safety issues," according to a previously unreported letter. AT&T and Verizon had agreed on Sunday to adopt exclusion zones for six months around some airports in a bid to mirror safeguards adopted by France. AT&T and Verizon in November had agreed to delay the deployment by 30 days to Jan. 5 after the FAA raised safety concerns and adopted voluntary precautionary measures for six months.
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ca7b5214-3136-4dd6-b605-b48f3984fba4
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3899.0
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2022-01-04 00:00:00 UTC
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U.S. outlines deal with AT&T, Verizon over 5G delay - letter
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AAL
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https://www.nasdaq.com/articles/u.s.-outlines-deal-with-att-verizon-over-5g-delay-letter
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nan
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nan
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Jan 4 (Reuters) - U.S. transportation officials told wireless carriers it would not seek any further details in deployment of 5G wireless service beyond Jan. 19 absent any "unforeseen aviation safety issues," according to a previously unreported letter.
U.S. Transportation Secretary Pete Buttigieg and Federal Aviation Administration chief Steve Dickson said in a joint letter AT&T T.N and Verizon Communications VZ.N agreement to delay C-Band wireless deployment by two weeks "will give us additional time and space to reduce the impacts to commercial flights."
The attached "final term sheet" said unless "unforeseen aviation safety issues" arise the agencies "will not seek or demand any further delays of C-Band deployment, in whole or in part, including a delay of return to routine operations."
(Reporting by David Shepardson)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jan 4 (Reuters) - U.S. transportation officials told wireless carriers it would not seek any further details in deployment of 5G wireless service beyond Jan. 19 absent any "unforeseen aviation safety issues," according to a previously unreported letter. U.S. Transportation Secretary Pete Buttigieg and Federal Aviation Administration chief Steve Dickson said in a joint letter AT&T T.N and Verizon Communications VZ.N agreement to delay C-Band wireless deployment by two weeks "will give us additional time and space to reduce the impacts to commercial flights." The attached "final term sheet" said unless "unforeseen aviation safety issues" arise the agencies "will not seek or demand any further delays of C-Band deployment, in whole or in part, including a delay of return to routine operations."
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Jan 4 (Reuters) - U.S. transportation officials told wireless carriers it would not seek any further details in deployment of 5G wireless service beyond Jan. 19 absent any "unforeseen aviation safety issues," according to a previously unreported letter. U.S. Transportation Secretary Pete Buttigieg and Federal Aviation Administration chief Steve Dickson said in a joint letter AT&T T.N and Verizon Communications VZ.N agreement to delay C-Band wireless deployment by two weeks "will give us additional time and space to reduce the impacts to commercial flights." The attached "final term sheet" said unless "unforeseen aviation safety issues" arise the agencies "will not seek or demand any further delays of C-Band deployment, in whole or in part, including a delay of return to routine operations."
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Jan 4 (Reuters) - U.S. transportation officials told wireless carriers it would not seek any further details in deployment of 5G wireless service beyond Jan. 19 absent any "unforeseen aviation safety issues," according to a previously unreported letter. U.S. Transportation Secretary Pete Buttigieg and Federal Aviation Administration chief Steve Dickson said in a joint letter AT&T T.N and Verizon Communications VZ.N agreement to delay C-Band wireless deployment by two weeks "will give us additional time and space to reduce the impacts to commercial flights." (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Jan 4 (Reuters) - U.S. transportation officials told wireless carriers it would not seek any further details in deployment of 5G wireless service beyond Jan. 19 absent any "unforeseen aviation safety issues," according to a previously unreported letter. U.S. Transportation Secretary Pete Buttigieg and Federal Aviation Administration chief Steve Dickson said in a joint letter AT&T T.N and Verizon Communications VZ.N agreement to delay C-Band wireless deployment by two weeks "will give us additional time and space to reduce the impacts to commercial flights." The attached "final term sheet" said unless "unforeseen aviation safety issues" arise the agencies "will not seek or demand any further delays of C-Band deployment, in whole or in part, including a delay of return to routine operations."
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b6e89281-eb23-458e-a133-b778f3fb573f
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