• Always Ask What Your Airline Can Do For You

    By Shmulik Karpf - February 24, 2013 | Tickers: DAL, LUV, UAL, LCC

    "How do you make a million dollars? You first make a billion dollars and then invest them in airline companies." (Warren Buffett)

    This phrase by the sage is pretty much spot on. Airline stocks in general have performed awfully over the last decade. In fact, shares of most airlines trade today at the same price they traded back in 2000. This business is shrinking and with good reason.

    The airline more »

  • US Airways, American to Merge: So What for Airline Stocks?

    By Nate Wooley - February 15, 2013 | Tickers: ALK, JBLU, LUV, UAL, LCC

    So the long planned merger between US Airways (NYSE: LCC) and AMR, the parent of bankrupt American Airlines, is finally going through. The two announced that the boards of both firms approved the $11 billion deal … finally. The firms have given themselves less than nine months to complete the combining of the two companies.

    The big question about the merger is, “so what?” Is it going to change the fortunes more »

  • Small Airlines but Large Gains

    By Masam Abbas - January 23, 2013 | Tickers: ALGT, JBLU, SAVE

    I have already covered large-cap airline stocks in one of my earlier posts. However, the small-cap stocks still need to be discussed briefly. I clearly mentioned in my previous post that both Barclays and Goldman Sachs are bullish on the airline sector for 2013. They give three reasons for this:

    1)      Industry revenue expectations remain low and leave room for disappointments, such as higher oil.

    2)      The industry capacity remains more »

  • Is 2013 going to be the 'Year of the Airlines'?

    By Masam Abbas - January 21, 2013 | Tickers: AAMRQ.PK, DAL, LUV, UAL, LCC

    The earnings season is on the go and the airline industry will "inaugurate" its earnings season by breaking the 4Q earnings of Delta Airlines (NYSE: DAL) on Jan. 22. Along with the earnings season, many people seem confused about the 2013 outlook for the airline industry.

    The Street seems extremely optimistic. Barclays believes that there is still room for another 20% capital appreciation in 2013 despite 11% gains in the more »

  • Trains, Planes and Automobiles

    By Rupert Hargreaves - January 17, 2013 | Tickers: CSX, F, NSC, BA, UNP, VLKAY

    Getting into the spirit of this rally, I want to buy some cyclical transport stocks--but where do I look? There are currently different arguments for buying into the different transport sectors. For instance, the growth forecasts over the next decade or so in the aviation industry are astronomicBoeing (NYSE: BA) believes China will need 5,260 new aircraft valued at $670 billion over the next 17 years. It is more »

  • Delta Earnings: Can This Airline Keep Flying High?

    By Matthew Frankel - January 15, 2013 | Tickers: DAL, PSX, LUV, UAL, LCC

    Delta Air Lines (NYSE: DAL) has come a long way since emerging from bankruptcy in April 2007.  The company has taken extensive measures to make itself run more efficiently. It is once again profitable and is expected to grow its earnings considerably over the next several years.  However, the company is extremely cheaply valued right now, indicating that the market is still skeptical that Delta’s business model will be more »

  • Could the Dreamliner Become a Nightmare for Boeing?

    By Erin McBride - January 11, 2013 | Tickers: ALNPY.PK, BA, UAL

    The Federal Aviation Administration (FAA) announced it will conduct a comprehensive review of the Boeing (NYSE: BA) 787 Dreamliner, but declared the aircraft safe despite a recent fire, a cracked window, and a fuel leak earlier this week.

    "We are confident that the aircraft is safe. But we need to have a complete understanding of what is happening," FAA Administrator Michael P. Huerta said in an agency press release. Boeing more »

  • Hawaiian Holdings: Great Value Despite Downgrade

    By Adam Levine-Weinberg - January 11, 2013 | Tickers: DAL, HA, UAL

    On Wednesday morning, analyst Glenn Engel at Bank of America/Merrill Lynch downgraded Hawaiian Holdings (NASDAQ: HA), the parent of Hawaiian Airlines, from buy to underperform and cut his price target from $11 to $7.

    Engel apparently sees dark days ahead for Hawaiian, with the primary concern being unit revenue weakness. This is compounded by foreign exchange pressure, as Hawaiian has expanded its presence in Japan over the past few more »

  • No Merger of Equals for US Airways

    By Alexander MacLennan - December 28, 2012 | Tickers: DAL, SKYW, LUV, UAL, LCC

    It's no secret that US Airways (NYSE: LCC) is aiming to buy bankrupt American Airlines. In a conference call management did not want to answer merger related questions but it became the prime topic of the discussion anyway. And it makes sense why so many people would care. This would be one of, if not the biggest, events in US Airways history. But as much as the discussion is more »

  • How Every Airline Can Look Terrible

    By Alexander MacLennan - December 12, 2012 | Tickers: AC.A, AC.B, DAL

    Once upon a time, there was a man whose flight was delayed, his baggage was lost, and the service was mean and nasty. Can you tell which airline he was flying?

    Well the correct answer is Not Enough Information Given. How could you possibly know? Complaints of this variety have been associated with every airline in the business at one time or another.

    Are Airlines Out to Get You?

    While more »

  • Which Airline Should You Invest In?

    By Anh HOANG - December 12, 2012 | Tickers: JBLU, LUV, SAVE

    “If you want to be a millionaire, start with a billion dollars and launch a new airline.” – Richard Branson 

    Indeed, Warren Buffett, the most successful investor of all time, has the same opinion about the airline industry. Along with its significant growth over a century, the airline industry has brought negative aggregate value for investors. Buffett commented that the growth of the airline industry, which demanded huge capital to fuel more »

  • Our Price Is Our Product!

    By Ramesh Malayappan - December 12, 2012 | Tickers: DAL, LUV, SAVE, UAL | Editor's Choice

    I traveled to the West Coast this past week on United Airlines (NYSE: UAL), flying coach (or Cattle Class as jovially referred to by frequent flyers). As the hours went by, I wanted to have a snack and the flight attendant told me about a few items that were available for purchase.  Pointing to the airline’s magazine, he said that the descriptions and pricing could be found on the more »

  • Amidst the Economic Pain Lies a Hidden Bull

    By Adem Tahiri - December 7, 2012 | Tickers: CSX, F, GM, BA, UNP

    Are you the next Peter Thiel? Just destined to find that “needle in a haystack” stock and strike it rich?

    If you’re like many investors, you spend your days trying to find the next Facebook or Google. While these stocks sizzle on headlines, your speculation is unlikely to turn up consistent profits. I’m going to convince you, right now, to change course.

    To make money let’s stop more »

  • Delta Means Change

    By Alexander MacLennan - December 3, 2012 | Tickers: DAL, UAL, LCC | Editor's Choice

  • How Different Airlines are Managing Fuel Costs, Part One

    By Alexander MacLennan - December 3, 2012 | Tickers: AC.A, AC.B, DAL, UAL

    For airlines, volatile fuel prices play a key role in determining their fortunes, and even their ability to avoid bankruptcy. When oil hit a record $147 per barrel in 2008, airline income statements were bathed in red ink while the industry lost a combined $20 billion. But today's airlines are not just standing by, waiting for a fuel price spike to hurt them and their shareholders. Major airlines are more »

  • Foolishly Cheap Airline Stocks Trade Higher

    By Brian Nichols - October 4, 2012 | Tickers: DAL, UAL, LCC

    Shares of FedEx (FDX) have traded lower by 5.4% since Sept. 14 following its bearish guidance, which took the transportation sector by storm. For a period of one week, most transport stocks were trading lower, thanks to the FedEx guidance and weakness from other companies in the space.

    But in the past week, transport stocks have led the market higher -- and it's not companies such as FedEx, but more »

  • Allegiant Air in the Clouds, Fundamentals Firmly Grounded

    By David Delony - August 30, 2012 | Tickers: ALK, ALGT, JBLU, LUV, SAVE

    Ever since deregulation in the late '70s, one of the strongest areas of growth in the airline industry was in low-cost carriers. Southwest (NYSE: LUV) was one of the first, shuttling customers around the country in an all-economy cabin configuration and serving them only peanuts. JetBlue (NASDAQ: JBLU) made the experience better with in-flight TV screens and transcontinental flights and Spirit (NASDAQ: SAVE) charges bargain-basement fares and runs brash ad more »

  • United Flying Friendly Skies

    By David Delony - August 28, 2012 | Tickers: DAL, JBLU, BA, UAL

    Editor's Note: JetBlue reported 2nd quarter revenue of $1.2 billion, not earnings.

    If the conventional wisdom in the investing world is to stay away from airline stocks, then that goes double for legacy carriers like United (NYSE: UAL).

    The reason analysts warn investors not to take a ride on airline stocks is because the finances of the companies tend to resemble the flight paths of the Blue Angels more »

  • Are Oil Prices Affecting Airlines Companies?

    By Lior Cohen - August 28, 2012 | Tickers: DAL, RYAAY, UAL

    The recent rise in oil prices raises concerns that it will reflect in airline ticket prices and, in turn, eventually affect major airlines companies' stocks. Up until now major airlines haven't performed well and continue to struggle. But did the recent rally in oil prices adversely affect major airlines companies? If not, what could be the reason for the low impact jet fuel, one of major inputs of an more »

  • Devil's Advocate: Airline Stocks

    By Alexander MacLennan - August 18, 2012 | Tickers: DAL, RJET, LUV, UAL, LCC | Editor's Choice

    In all my years of investing, I have never been a fan of airline stocks. With constantly fluctuating fuel prices, frequent labor disputes, enormous debt levels, and high capital costs, I just don't see the risk/reward situation being in my favor. But this got me thinking.

    People must buy airline stocks and they must do so for a reason. In the interest of showing another side of the more »

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