US Airways Group, Inc.
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Will Spirit Airlines Fly Higher?
By Robinson Roacho - May 15, 2013 | Tickers: DAL, SAVE, UAL, LCC
Spirit Airlines (NASDAQ: SAVE) has rallied 63% YTD to all-time high levels. While other major airlines such as Delta Air Lines (NYSE: DAL) and United Continental Holdings (NYSE: UAL) have rallied 52% and 42%, respectively, Spirit Airlines may be grabbing market share from these major carriers. Several news releases from the company suggest that growth in the interim is possible for Spirit Airways.
Brief Fundamental Analysis
Spirit Airlines, a $2 more »
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Is The Instatement of a Dividend a Good Idea?
By Robinson Roacho - May 14, 2013 | Tickers: DAL, UAL, LCC
It is not common for airline companies to instate dividend. Instead, carriers implement share buyback programs to bring capital appreciation to their shareholders. Delta Air Lines (NYSE: DAL) has instated a modest 1.34% dividend offer and a $500 million share repurchase program. Based on the analysis of its latest quarterly earnings report and monthly traffic reports, I believe its dividend offer may be at risk.
Brief Fundamental Metrics
Delta more »
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This Airline Has More Room To Grow
By Vladimir Zernov - May 10, 2013 | Tickers: DAL, SAVE, UAL, LCC
Investors have favored Spirit Airlines (NASDAQ: SAVE) this year, with the stock up more than 50% year-to-date. Spirit Airlines is a low-fare airline that operates flights throughout the U.S., Latin America and the Caribbean. Spirit has recently reported its first quarter earnings, and the results were warmly welcomed by the market. The stock gained 5.3% on the day of the report.
Spirit Airlines reported adjusted net income of more »
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Does a Positive Industry Outlook Translate Into Investing Opportunity in These 3 Companies?
By Shweta Dubey - May 7, 2013 | Tickers: DAL, UAL, LCC
According to a recent IATA report, global air travel will rise by 5.4% in 2013 in spite of difficult macro-economic conditions in developed economies. Among all the regions, North America is expected to be the biggest gainer this year. IATA expects that all North American airlines will have combined profitability of $3.6 billion in 2013, an increase of $1.3 billion from the 2012 level.
I have picked more »
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Trains, Planes, and Automobiles, All Driving this ETF to New Heights.
By Jeff Stouffer - May 6, 2013 | Tickers: CAR, HTZ, LUV, XTN, LCC
A key component of The Dow Theory is that transportation is an essential ingredient of an improving economy. Without the profitability in transportation companies to move goods to the consumer, then an upturn in manufacturing output is not confirmed
The SPDR® S&P® Transportation ETF (NYSEMKT: XTN) is an exchange-traded fund that holds 40 stocks of transportation companies. This ETF was brought to the market on January 26, 2011 and more »
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Airlines: Is It Different This Time?
By Robert Hanley - May 3, 2013 | Tickers: ALK, LUV, LCC
The airline sector is back in the black, with rising passenger loads caused by a rebound in both business and leisure travel. However, the industry continues to be plagued by high fixed costs, unionized labor, and a tendency to create self-inflicted wounds through price wars. Investors in the sector have often been left holding worthless securities during the inevitable business down cycle. However, the industry has greatly consolidated over the more »
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Will Airlines Ever Take Off?
By Jay Wei - May 2, 2013 | Tickers: DAL, UAL, LCC
While air travel is such a vital consumer activity in the total economic mix, the business of providing air travel as it currently is doesn't seem to be lively at all. Life has not been comfortable for the airline industry with air travel no longer a luxury.
So many carriers have been coming in and out of bankruptcies, and few ever seem capable of landing on a profit. The more »
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The American/US Airways Merger Solves Nothing
By Nate Wooley - April 27, 2013 | Tickers: DAL, JBLU, LUV, UAL, LCC
Consolidation in the airline industry is doing nothing to help companies succeed.
Note I said nothing about surviving. They're doing that...but just barely. In fact, I don't think even that is a guarantee for the plethora of airlines that we have in the American market space right now. I think the likeliest – and most useful – thing to occur would be for several of these firms to just more »
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The Positive Beat Continues for the Airlines
By Mark Holder - April 27, 2013 | Tickers: AAMRQ.PK, DAL, LCC
Only a month ago this article theorized that airlines might finally be investable. Fortunately both Delta Airlines (NYSE: DAL) and US Airways Group (NYSE: LCC) obliged the theory by reporting strong Q1 earnings. A quarter that is typically the weakest actually turned solidly profitable for two of the market leaders. In fact, Delta claimed the highest profit in over a decade.
Unless new competition comes out of left field or more »
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Has Consolidation Leveled the Playing Field?
By Ted Cooper - April 24, 2013 | Tickers: DAL, LUV, LCC
The airline industry has been a net destroyer of shareholder wealth ever since the Wright brothers invented the airplane. The industry has only gone downhill since deregulation in the 1980s prompted destructive price wars that led to the regular occurrence of airlines seeking bankruptcy protection.
Even amidst the ruthless competition, a few airlines have created some value for shareholders. The best-known example of a successful airline is that of Southwest more »
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Airline Stocks Aren't Great Investments
By Reuben Brewer - April 22, 2013 | Tickers: DAL, LUV, LCC
Bloomberg recently ran an article extolling the virtues of airline stocks, which had an impressive run in the first quarter of this year. While one quarter's return is nice, the long-term picture for the industry still isn't very good. Conservative investors should shun the group, but momentum types might love it.
Airlines
According to Bloomberg, “U.S. airlines, shunned by Warren Buffett for almost 25 years, are now more »
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Is It Time To Get Bullish On JetBlue?
By Jeremiah Feliciano - April 19, 2013 | Tickers: JBLU, LUV, LCC
Low-cost airlines have been gaining momentum as customers and corporate executives are trying to cut travel expenses. Exploiting that opportunity, JetBlue (NASDAQ: JBLU), which was founded in 2000, grew at an astonishing pace to establish itself as one of the most successful low-cost airlines in the U.S.
The company has done several experiments with destinations and routes. Fortunately, it's showing signs of success in the fiercely competitive, low-cost more »
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I Was Wrong About American Airlines
By Alexander MacLennan - April 18, 2013 | Tickers: AAMRQ.PK, DAL, UAL, LCC
Back in August of last year, I laid out the case against buying the stock of bankrupt American Airlines (NASDAQOTH: AAMRQ.PK) as part of a larger analysis of the airline industry. Since then, American’s shares have surged in value as the airline beat the odds and managed to extract a sliver of shareholder value from the bankruptcy. However, the story of American Airlines' recovery of shareholder value is as more »
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I Was Wrong About American Airlines
By Alexander MacLennan - April 16, 2013 | Tickers: AAMRQ.PK, DAL, UAL, LCC
Back in August of last year, I laid out the case against buying the stock of bankrupt American Airlines (NASDAQOTH: AAMRQ.PK) as part of a larger analysis of the airline industry. Since then, American’s shares have surged in value as the airline has beat the odds and managed to extract a sliver of shareholder value from the bankruptcy. However, the story of American Airlines recovery of shareholder value is more »
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Time To Invest In This Restructuring?
By Mike Thiessen - April 12, 2013 | Tickers: AAMRQ.PK, LUV, LCC
Now that the judge charged with overseeing the company's bankruptcy proceedings has approved the merger between American Airlines parent AMR Group (NASDAQOTH: AAMRQ.PK) and US Airways (NYSE: LCC), the deal appears far more likely to conclude successfully. This could have major implications for investors in the airline space; however, this merger is not yet a done deal.
There are a number of procedural hurdles that stand in its way more »
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Is Now the Time to Own an Airline?
By Daniel Paterson - April 11, 2013 | Tickers: ALK, SAVE, LCC
The airline industry is one that usually entails a great amount of speculation. Deciding on whether or not to own one of these companies does not have to depend on the economy. Although airlines may seem like purely cyclical businesses, there are indeed great companies that find a way to make profits regardless of headlines and market fluctuations.
Airlines is a unique industry, as massive barriers to entry protect each more »
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The Best-Run Airline Is Still Cheap
By Matthew Frankel - April 10, 2013 | Tickers: AAMRQ.PK, DAL, LUV, LCC
Most of the news involving the airlines lately has centered on the merger of American Airlines (NASDAQOTH: AAMRQ.PK) and US Airways Group (NYSE: LCC), which will create the world’s biggest airline when the deal is complete. The other airline-related news recently has been about how frustrated customers are getting with the airlines; more passengers are getting bumped off of flights, there seem to be new fees every few months more »
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The Best-Run Airline Is Still Cheap
By Matthew Frankel - April 8, 2013 | Tickers: AAMRQ.PK, DAL, LUV, LCC
Most of the news involving the airlines lately has centered on the merger of American Airlines (NASDAQOTH: AAMRQ.PK) and US Airways Group (NYSE: LCC), which will create the world’s biggest airline when the deal is complete. The other airline-related news recently has been about how frustrated customers are getting with the airlines; more passengers are getting bumped off of flights, there seems to be new fees every few months more »
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This Stock Might Start Flying Soon
By Alex Bastardas - April 8, 2013 | Tickers: DAL, UAL, LCC
Inconsistent profits, bankruptcies, and bumpy stock performances have spooked many investors from investing in airline stocks. However, recent performance, increased market stability, and bullish earning projections are making some investors revisit these stocks once again. Delta Air Lines (NYSE: DAL) is no exception. In fact, the stock seems poised to outperform this year, and could be a relative bargain at current prices.
Valuation ratios
Delta's current P/E is more »
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Is Now the Time to Own an Airline?
By Daniel Paterson - April 7, 2013 | Tickers: ALK, SAVE, LCC
The airline industry is one that usually entails a great amount of speculation. Deciding on whether or not to own one of these companies does not have to depend on the economy. Although airlines may seem like purely cyclical businesses, there are indeed great companies that find a way to make profits regardless of headlines and market fluctuations. Airlines are a unique industry as massive barriers to entry protect each more »
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