Ally Schmidt

United Continental’s (UAL) EBITDA is expected to fall 10% to $1.8 billion.

At the start of the year, United announced its plan to grow its capacity by 0%–1%, in line with GDP growth expectations.

During 1Q17, Delta Air Lines’ (DAL) debt rose by ~$2 billion at a blended interest rate of just 3.3%.

The average daily rate (or ADR) measures the average room price paid in the market. In 1Q17, the ADR rose 2.5% year-over-year (or YoY) to $124.27.

The US hotel industry saw its largest revenue fall of 14% year-over-year (or YoY) in 2009. Since then, recovery has been steep.

Because Southwest Airlines’ (LUV) traffic growth lagged its capacity growth in three of the first five months of 2017, its utilization also fell in three of the five months.

AAL’s utilization rose 0.3% YoY (year-over-year) in February, then by 1.8% YoY in April and 0.2% YoY in May.

For May 2017, American Airlines (AAL) reported a 2.3% YoY (year-over-year) growth in capacity—its highest growth so far in 2017.

Only one analyst has upgraded Delta Air Lines (DAL) since it released its traffic data on Friday, June 2, 2017.

The airline industry is very capital-intensive, so airlines generally have huge debt numbers on their balance sheets.

Currently, American Airlines (AAL) is valued at 6.6x its forward EV-to-EBITDA ratio (enterprise value to earnings before interest, tax, depreciation, and amortization).

As opposed to most other airlines that have been reducing their debts, American Airlines’ (AAL) debt has risen, partly due to its focus on completing its integration with US Airways.

At the end of 4Q16, Boeing’s leverage fell to ~$10 billion as compared to $10.5 billion at the end of 3Q16 and $11 billion at the end of 2Q16.

For 2016 overall, United Continental (UAL) has generated $5.5 billion in operating cash flow and $1.9 billion in free cash flow.

For 1Q17, analysts are now expecting United Continental’s (UAL) EBITDA to fall 39% to $0.81 billion.

Delta Air Lines (DAL) is currently valued at 5.3x its forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple.

Airlines have long been known as capital destroyers. In times of profitability (such as now), they increase capacity to an extent that can’t be filled.

One of the major risks to Frontier Airlines is the fact that almost 45% of its flights originate from a single hub—Denver.

Frontier Airlines earned 42% of its revenue from ancillary fees or non-ticket revenue in 2016—a significant rise compared to 25% in 2015.

In 4Q16, regional carrier Spirit Airlines (SAVE) had a leverage ratio of 0.96x, JetBlue Airways (JBLU) had a leverage ratio of 0.83x, and Alaska Air Group (ALK) had a leverage ratio of 0.36x.

Delta Air Lines (DAL), Southwest Airlines (LUV), United Continental (UAL), and American Airlines (AAL) renegotiated contracts with their pilots and other contract workers toward the end of 3Q16.

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.

According to STR Global’s US Construction Pipeline Report for January 2017, rooms under contract rose 16.1% to reach 576,000 rooms in 4,763 hotel properties.

The strength of the US dollar measured against currencies that are widely used in international trade is measured by the Trade Weighted Dollar Index.

A booming economy allows people to spend money on discretionary items such as air travel, so hotel revenues are higher during economic growth and lower during economic contraction.

The hotel industry is largely driven by the growth of the general economy, which instills spending confidence in both businesses and households.

Priceline’s (PCLN) fiscal 2016 performance was subdued by the dollar’s appreciation. Because Priceline has a widespread international presence, it’s prone to currency fluctuation risks.

Earlier this month, the Priceline Group (PCLN) signed a deal to acquire Momondo Group. Priceline will acquire all outstanding shares of Momondo for $550 million in an all-cash deal.

For 4Q16, analysts expect Priceline’s (PCLN) revenue to rise 16.2%, less than the 18.9% growth the company saw in 3Q16.

Currently, TripAdvisor (TRIP) has a forward EV-to-EBITDA ratio of 17.9x—lower than its average of 18.5x.

Issues concerning labor There is a host of issues that have been concerning the US labor workforce, including longer working hours, contentious relations with management, lower job security, work-life balance, and stability. However, the prime issue for regional airlines is that regional players pay much less than legacy peers, despite the regional sector accounting for more […]

The load factor Airlines’ capacity utilization is measured using the passenger load factor, which is calculated by dividing traffic by capacity. Analyzing airlines’ load factors As discussed in the previous article, most airlines saw high capacity growth in January 2017. As a result, all airlines except JetBlue Airways witnessed a decline in their load factors. […]

Hotel reservations accounted for 61% of Expedia’s 4Q16 revenue and remain the most important contributor to Expedia’s revenues.

Marriott (MAR) currently trades at a forward EV-to-EBITDA multiple of 15.8x. Its valuation has been significantly higher than its average valuation.

For 3Q16, Marriott and Starwood Hotels & Resorts together added 17,600 rooms, taking the total to 4,554 properties and 777,000 timeshare resorts.

As many as 30,000 pilots will reach the mandatory retirement age of 65 years 2026.

Delta Air Lines started paying dividends only in 2013, and it’s one of the few airlines that pay dividends.

Until 3Q16, Delta Air Lines (DAL) had managed to keep its costs flat if not decreasing. However…

Delta Air Lines (DAL) saw average traffic of about 50 million passenger miles for the quarter, a 0.8% year-over-year improvement

United expects to add $800 million to profits by increasing seats from 105 per departure to 121 per departure in 2018.

For 4Q16, analysts are expecting United Continental’s (UAL) EBITDA to fall 26% to $1.4 billion.

The Macao region relies heavily on the Chinese mainland, as it garners the huge majority (about 67%) of its visitors and VIP gamers from China and its neighboring countries.

Macao casinos’ $28 billion investment in integrated resorts is set to change the city’s gaming business.

As VIP business continues to remain sluggish, casinos are increasingly turning their attention towards the mass market.

For September 2016 through November 2016, the unemployment rate stood at 1.9%.

For November 2016, American Airlines’s (AAL) load factor fell 0.3% and year-to-date 2016, its load factor fell 1.3%.

In November 2016, American Airlines’s (AAL) traffic fell 0.2% year-over-year, slightly lagging its capacity growth in the same period. Year-to-date, AAL’s traffic has increased 0.3%.

American Airlines’s (AAL) capacity grew 0.1% year-over-year in November 2016, similar to the growth seen during most of 2016. Year-to-date, AAL’s capacity has grown 1.9%.

For November 2016, Alaska Air Group’s capacity rose 2.8% YoY (year-over-year). It’s the slowest growth in any month in 2016.

Trivago spends a great deal of money on its popular ads. Three of its ads rank among the top ten most-watched travel videos on YouTube for 2016.