Among the seven major carriers, most analysts seem to favor Delta Air Lines (DAL), which has a “buy” rating from 87.5% of the analysts.
As many as 30,000 pilots will reach the mandatory retirement age of 65 years by 2026. A study by the University of North Dakota notes that without sufficient new hires, airlines could face a pilot shortage in perhaps three years.
In 4Q16, Southwest Airlines’s (LUV) yields fell 4% year-over-year to 14.7 cents, followed by Alaska Air’s (ALK) 3.3% decline in yield to 13.4 cents.
American Airlines (AAL) cut its forecast. It still expects its unit revenues to rise 1.5%–3.5%, which is lower than its earlier guidance of 2.5%–4.5% improvement.
Since December 2016, airfares have been rising on a month-over-month basis. Airfares rose 1.9% to $275.10 in December 2016, the biggest gain since June 2015.
For February 2017, capacity addition of the seven major airlines was 1.7% lower than the 6.1% growth seen in January.
Spirit Airlines saw the highest decline in utilization, dropping 3.1% to 80.7%.
In December 2017, OPEC agreed to cut its oil production by 1.2 million barrels per day. Non-OPEC countries also agreed to cut production by 0.6 million barrels per day.
For February 2017, demand for the top seven airlines grew an average 1.1% year-over-year, significantly below the 4.9% YoY growth seen in January.
According to the University of Michigan Consumer Sentiment Index, consumer confidence for February 2017 was 96.3%, 5.0% higher than in February 2016.
The Federal Reserve has projected long-term potential economic growth of 1.8%.
When Winter Storm Stella hit the East Coast, almost 7,500 flights were canceled on March 14, 2017.
Despite these cancellations, Southwest Airlines (LUV) and Alaska Air Group (ALK) outperformed their peers, rising 8.7% and 6.1%, respectively.
Genesee & Wyoming’s (GWR) European carloads remained unchanged YoY (year-over-year) in February 2017.
In February 2017, Genesee & Wyoming’s (GWR) North American traffic fell 1% YoY (year-over-year).
Canadian Pacific’s (CP) total carloads rose a marginal 0.9% in the week ended March 11, 2017.
Canadian Pacific’s (CP) intermodal volumes have been rising for the past few weeks.
In 2017, Canadian National (CNI) has so far emerged as the front runner in terms of YoY (year-over-year) carload growth among class I peers.
In the week ended March 11, 2017, Canadian National Railway’s (CNI) overall intermodal volumes rose 6.1%.
In the past few weeks, Kansas City Southern (KSU), the smallest class I railroad in the US, has seen its intermodal traffic slow down.
In the week ended March 11, 2017, Kansas City Southern’s (KSU) total railcars rose 21% from the corresponding week of 2016.