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Teresa Cederholm

Disclosure: I am in full compliance with all ethics and other policies for Market Realist research analysts. I am not invested in securities that I cover on Market Realist.

More From Teresa Cederholm

  • Why Delta’s 3Q14 fuel expense was impacted by fuel hedges
    Industrials

    Why Delta’s 3Q14 fuel expense was impacted by fuel hedges

    Fuel expense is Delta’s largest expense. It accounted for ~29% of the total operating expense in 3Q14. Fuel consumption per available seat mile decreased by 1.5% during the quarter.

    By Teresa Cederholm
  • Why fatal disease outbreaks impact economic activity
    Industrials

    Why fatal disease outbreaks impact economic activity

    The World Bank estimated Ebola’s impact by analyzing two scenarios—low Ebola and high Ebola. The scenarios are based on the probability of the disease spreading internationally.

    By Teresa Cederholm
  • Overview: Hilton Worldwide Holdings Inc.
    Consumer

    Overview: Hilton Worldwide Holdings Inc.

    Hilton Worldwide Holdings is one of the largest hospitality companies in the world. It was founded in 1919 by Conrad Hilton. The company started when he bought his first hotel in Texas.

    By Teresa Cederholm
  • uploads///Part_Q_Operating cost ex fuel
    Earnings Report

    JetBlue’s unit cost growth: Employee costs up, lower productivity

    Salary, wages, and benefits increased as a result of higher wage rates. Airlines have also had to increase headcount to adhere to the new Federal Aviation Administration (or FAA) regulations on flight, duty, and rest.

    By Teresa Cederholm
  • Industrials

    Why Delta’s unit cost increased in 3Q14

    Delta’s operating expenses increased by 16%, on 7% higher revenue, to $10,343 million. Higher costs had a negative impact on Delta’s operating profits.

    By Teresa Cederholm
  • Industrials

    Estimating American Airlines’ earnings growth

    Apart from improved operational efficiencies, American has outperformed its peers in pre-tax margin (excluding special items) improvement in the first half of 2014 to 8.7% from 4.1% in the previous year.

    By Teresa Cederholm
  • uploads///Part_CEA_Fuel cost comparison
    Company & Industry Overviews

    Comparison of China Eastern’s fuel costs with competitors

    Chinese airlines have an advantage of having lower employee costs compared to their counterparts in the US. Operational efficiency of US airlines are comparatively higher.

    By Teresa Cederholm
  • Industrials

    Must-know: Alaska’s commitment to increase shareholder returns

    Increases in share prices and dividends provide direct benefits to shareholders. The increases in share prices give better returns. Share repurchases and stock splits provide indirect benefits. Share repurchases lead to a reduction in outstanding shares. This results in increased EPS.

    By Teresa Cederholm
  • Company & Industry Overviews

    Gol’s passenger revenue increases on higher yields

    Brazil is the third largest domestic aviation market. With double-digit traffic growth, Brazil was one of the fastest-growing domestic markets in 2010 and 2011.

    By Teresa Cederholm
  • Industrials

    Delta Air Lines’ key strategy to increase shareholder returns

    Capital expenditure is generally high in the airline industry. Delta manages to keep it low through its strategy of buying used aircraft.

    By Teresa Cederholm
  • Industrials

    Must-know: Delta Air Lines’ second quarter earnings

    Today, Delta is one of the largest airlines in U.S. providing transportation services for passengers and cargo—it serves almost 165 million customers each year to 225 domestic and 97 international destinations.

    By Teresa Cederholm
  • Consumer

    Why trend in fee income is an important source of revenue

    Marriott increased its fee income at a ten-year compound annual growth rate (or CAGR) of 7.6% to $1,543 million in 2013—from $742 million in 2003.

    By Teresa Cederholm
  • Industrials

    United sees major improvement in 3Q14 fuel cost efficiency

    United achieved significant fuel cost savings during 3Q14 in the form of lower purchase costs and improved fuel efficiency.

    By Teresa Cederholm
  • Industrials

    The must-know drivers of air cargo growth for US airlines

    According to the IATA, global air freight volume has increased by 4.5%. Capacity, measured by available freight ton kilometers (or AFTK), increased by 3.5% year-over-year in August 2014.

    By Teresa Cederholm
  • Industrials

    Why JetBlue’s cash position has improved

    As of December 2013, JetBlue Airways (JBLU) had cash and cash equivalents of $225 million. JetBlue’s cash position has improved by 24% from $182 million in 2012.

    By Teresa Cederholm
  • uploads///Part_Capex
    Industrials

    Must-know: Alaska’s increasing return on invested capital

    Alaska’s capital expenditure (or capex) mainly includes investment on aircraft. It increased since 2010. In 2013, ~80% of the total cash used for investing activities was on capital expenditure. The total capital expenditure was $566 million. $487 million was on aircraft and aircraft purchase deposits. $79 million was on flight equipment and other property and equipment.

    By Teresa Cederholm
  • Industrials

    Why it’s important for airlines to improve load factor

    Load factor measures capacity utilization. It indicates the percentage of total capacity that an airline utilizes. Airlines are capital intensive. They have high fixed costs.

    By Teresa Cederholm
  • Industrials

    Why United Continental’s high-cost structure affects its margins

    In 2013, almost 57% of United’s (UAL) $37,030 million total operating costs comprised fuel costs (33%) and salaries (23%), compared to Delta’s 46%.

    By Teresa Cederholm
  • uploads///Part_Dec_Air Cargo volume and capacity
    Macroeconomic Analysis

    Low yield, utilization drive down air cargo profitability

    Growing trade activity drove the recovery in cargo traffic in emerging markets in Asia, but it was slightly offset by the slowing European economy.

    By Teresa Cederholm
  • uploads///Part_Cashflow
    Company & Industry Overviews

    Gol’s increased operating cash flow boosts higher free cash flow

    Gol’s financial assets decreased in 3Q14, but its cash balance increased to 1,942 million real from 1,636 million real in FY13.

    By Teresa Cederholm
  • Industrials

    Why airlines adopt approaches to improve yield and revenue

    Alaska Airlines (ALK) has the lowest yield of $0.148 among all its peers. Its peers include Delta (DAL) at $0.1689, United (UAL) at $0.1614, American (AAL) at $0.1622, and Southwest (LUV) at $0.1602. Revenue management is essential for the airline industry. The industry needs to maximize revenue by selling the most aircraft seats possible to customers at the best price.

    By Teresa Cederholm
  • Industrials

    Changes in the US airline industry’s competitive landscape

    The Airline Deregulation Act of 1978 removed all regulations governing the airline routes, airfares, entry, and exit of commercial airlines. Earlier, this was controlled by the Civil Aeronautics Board (or CAB). Airfares and all other factors would be determined by demand and supply market forces.

    By Teresa Cederholm
  • uploads///Part_EV_ttmEBITDAR
    Industrials

    US airline industry: Summary of share prices and valuations

    Southwest outperformed all its peers. Its share price increased 2.6% to $33.77 in September. That said, year-to-date results are positive overall.

    By Teresa Cederholm
  • uploads///Part_Q_Valuation
    Industrials

    Why Delta’s share price increased after 3Q14 earnings release

    Delta’s share price increased after the release of its 3Q14 earnings on October 16, 2014. On October 13, 2014, Delta’s share price reached $30.90—the lowest level since February 2014.

    By Teresa Cederholm
  • uploads///Part_Q_Revenue
    Earnings Report

    Higher passenger and ancillary revenue drive growth

    JetBlue’s operating revenue increased by 6% to $1,529 million in 3Q14. The company states that its on-time performance was impacted by congestion in the air space.

    By Teresa Cederholm
  • Industrials

    Key growth trends in airline passenger traffic by region

    Global passenger traffic has increased by 5.8% year-over-year during the first eight months of 2014. Europe (29.7%), Asia-Pacifc (29.2%), and North America (25%) comprise ~85% of global market share by passenger traffic.

    By Teresa Cederholm
  • Industrials

    Must-know: Southwest’s airport development initiatives and network expansion

    Modernization and development of airports Southwest is  involved in the management of various airport development initiatives. Few of them include Southwest entered into an agreement with Broward Country, Florida in 2013 to manage the Fort Lauderdale Hollywood International airport’s Terminal 1 modernization project. Entered into an agreement with city of Houston to expand the Houston […]

    By Teresa Cederholm
  • uploads///Part_Fleet
    Industrials

    Must-know: Alaska Airlines’ aircraft and fuel efficiency

    In 2013, Alaska operated a fleet of 131 Boeing 737 jet aircraft. It had contracts with Horizon, Sky West Airlines, and Peninsula Airways for regional capacity. Horizon operated 51 Bombardier Q400 turboprop aircraft. It sells all of its capacity to Alaska according to its capacity purchase agreements.

    By Teresa Cederholm
  • Industrials

    Why Ebola impacted the airline industry

    During fatal disease outbreaks, rules and restrictions are imposed—especially on air transportation. This includes canceling flights to the affected areas.

    By Teresa Cederholm
  • Industrials

    Why the Ebola scare led to a 16% drop in the Airline Index

    The share prices for major airline companies in the U.S. dropped substantially after the news of the first Ebola case in U.S. on September 30, 2014.

    By Teresa Cederholm
  • uploads///Part_Org structure
    Company & Industry Overviews

    An investor’s guide to China Southern Airlines

    China Southern Airlines’ network connects 1,024 destinations in 187 countries, including all major cities in Asia, Europe, the United States, Australia, and Africa.

    By Teresa Cederholm
  • Consumer

    Why Marriott is slowly expanding in international markets

    Marriott has been expanding its presence in the international market. It added new brands in Europe, Asia Pacific, and the Middle East and African regions.

    By Teresa Cederholm
  • uploads///Part_Passenger traffic growth by region
    Industrials

    The global airline industry contributes to economic development

    With 16,000 unique city pairs, connectivity by air is estimated to have doubled in the past two decades. Moreover, although demand continues to rise, the price of travel has fallen.

    By Teresa Cederholm
  • Industrials

    Overview: American Airlines Group Inc.

    American Airlines (AAL) is now the largest airline as measured by Available Seat Miles (or ASMs) with a 26% market share.

    By Teresa Cederholm
  • Industrials

    Why the end of the Wright Amendment helps Southwest

    With the repeal of the Wright Amendment on October 13, 2014, the company immediately launched nonstop flights to seven destinations. This was the largest single-day expansion in Southwest’s history.

    By Teresa Cederholm
  • Industrials

    Why Southwest expanded domestic and international service

    Two of AirTran’s services to San Juan and Puerto Rico were already added to Southwest’s network in April, 2014.

    By Teresa Cederholm
  • uploads///Part_CEA_Org structure
    Company & Industry Overviews

    An operational summary of China Eastern Airlines

    Established on April 14, 1995, based in Shanghai, China Eastern Corporation Limited is one of the three largest air carriers in China.

    By Teresa Cederholm
  • Industrials

    Delta Air Line’s key operating segments and geographic segments

    Delta Air Lines (DAL) derives 65.8% of its revenue from the passenger segment, 2.5% from the cargo segment, and 10.3% from other sources.

    By Teresa Cederholm
  • uploads///Part_RCL_Largest contemporary brands
    Company & Industry Overviews

    Royal Caribbean operates the world’s largest contemporary cruise brand

    Royal Caribbean International is a global brand offered by Royal Caribbean (RCL). It’s one of the world’s three largest contemporary brands.

    By Teresa Cederholm
  • Industrials

    Why you should consider investing in American Airlines

    In this series, we’ll discuss why the ~25% share price decline since June was actually an opportunity for long-term investors to buy shares of American Airlines.

    By Teresa Cederholm
  • uploads///Part_RCL_Loyalty Program
    Consumer

    Marketing contributes to Royal Caribbean’s growing customer base

    Royal Caribbean (RCL) offers all cruise company services, including pre- and post-hotel stay arrangements and air transportation.

    By Teresa Cederholm
  • part_history pngautocompresscformatandixlibphp
    Consumer

    Must-know: Marriott International Inc.

    Marriott International’s headquarters are in Bethesda, Maryland. The company was founded in 1927 by J. Willard and Alice S. Marriott.

    By Teresa Cederholm
  • part_ebola hits uspngautocompresscformatandixlibphp
    Industrials

    Must-know: Why did Ebola reach the US?

    Concerns about Ebola increased in the U.S. after September 30, 2014. Thomas Eric Duncan was the first person to be diagnosed with Ebola in the U.S.

    By Teresa Cederholm
  • Consumer

    Hilton’s diversified portfolio with 11 world-class brands

    Hilton’s goal is to serve any customer, anywhere in the world, for any lodging need that they have. The company has a portfolio of 11 world-class brands. Hilton’s portfolio allows it to accomplish this goal.

    By Teresa Cederholm
  • part_brand portfoliopngautocompresscformatandixlibphp
    Consumer

    Hilton’s hotel room composition by brand and chain scale

    Hotel companies, like Hilton, expand their operations based on the demand for accommodations by location. They also expand based on customer preference for the level of service offerings.

    By Teresa Cederholm
  • part_capital light segmentpngautocompresscformatandixlibphp
    Consumer

    Hilton expanded segments with low capital investment

    Hilton expanded its operations in segments that require less capital investment. These include the Management and Franchise segment and the Timeshare segment.

    By Teresa Cederholm
  • part_timeshare segment spin offpngautocompresscformatandixlibphp
    Consumer

    Why Marriott’s timeshare segment spun off

    Marriott completed the spinoff of its timeshare segment to Marriott Vacations Worldwide Corporation (or MVW) in 2011. MVW is now operating as an independent company.

    By Teresa Cederholm
  • part _us disposable income_septpngautocompresscformatandixlibphp
    Industrials

    Why economic indicators influence travel and tourism demand

    The airline industry contributes to U.S. economic growth. The industry drives $1.5 trillion in U.S. economic activity. It also generates more than 11 million jobs in the U.S.

    By Teresa Cederholm
  • Industrials

    Why the American-US Airways merger was conditional

    The combined entity’s share in the Washington Reagan Airport (or DCA) would be as high as 68% and its share in New York LaGuardia would be 33%.

    By Teresa Cederholm
  • Industrials

    Overview: Does American have funds to pay debts and expansion?

    Although all operating and performance metrics of AAG has shown improvement after the merger, leverage is one area that needs considerable improvement.

    By Teresa Cederholm
  • uploads///Part _Nov_Fuel consumption
    Macroeconomic Analysis

    Labor costs offset lower fuel costs as airlines boost hiring

    There has been a recent substantial increase in profit-sharing expenses related to the employees, as the profitability of major US airlines increased.

    By Teresa Cederholm
  • Industrials

    Must-know: Delta kept its fuel cost lower than its peers

    Delta’s (DAL) fuel price per gallon of $2.93 in 2Q14 was the lowest among its peers—all of its competitors including American (AAL), United (UAL), Southwest (LUV), and JetBlue (JBLU) had a fuel price per gallon between $3.02 and $3.09.

    By Teresa Cederholm
  • Macroeconomic Analysis

    Airlines sell more tickets, report higher October passenger yield

    The dollar value of airline tickets sold by US-based travel agencies rose 2.24% in October to $7.5 billion.

    By Teresa Cederholm
  • uploads///Part_ Airline industry mergers
    Company & Industry Overviews

    Low-entry barriers intensify competition in airline industry

    Short-term outlook above expectations The IATA (International Air Transport Association) has revised its forecast upwards on global airline profitability after the free fall of crude oil prices in the second half of 2014. Global net profit for 2014 is now estimated at $19.9 billion, higher than $18 billion projected in June. Profitability is expected to […]

    By Teresa Cederholm
  • Industrials

    United expands presence in international markets with new routes

    United’s capacity growth is concentrated in the Pacific and Latin American markets. United has the most extensive Pacific service compared to all other US airlines.

    By Teresa Cederholm
  • Industrials

    United’s capital expenditure and fleet management strategies

    For each 50-seat aircraft that it replaces, United expects its profitability to improve by $1 million.

    By Teresa Cederholm
  • uploads///Part_Targets
    Industrials

    Why Delta achieved most of its targets for 3Q14

    Delta achieved almost all of its targets in regards to fuel price, profit sharing expense, and overall system capacity. However, it failed to achieve its margin target in 3Q14.

    By Teresa Cederholm
  • Industrials

    Why high operating expenses were negative for Delta’s profit margins

    In 3Q14, Delta’s operating margin decreased to 7.5%—from 14.9% in the previous year. Non-operating expenses also increased by 28% in spite of a decrease in interest expense.

    By Teresa Cederholm
  • uploads///Part_Q_Part_Fleet
    Industrials

    Must-know: Delta’s fleet restructuring and capacity growth plans

    Fleet restructuring is an important part of Delta’s cost reduction initiatives. Delta is replacing its 50-seat regional fleet with more efficient CRJ-900 and B-717-200 aircraft.

    By Teresa Cederholm
  • uploads///Part_Q_CFO_CFI_CFF
    Industrials

    Why Delta’s cash balance decreased

    DAL generated cash from operations of $4,365 million. This was ~29% higher than last year. However, the cash balance decreased by ~17% to $2,510 million as of September 30, 2014.

    By Teresa Cederholm
  • Industrials

    Southwest’s latest flight paths soar beyond borders

    Southwest’s first five international routes were launched this year. Flights to Oranjestad, Aruba, Nassau and Paradise Island in the Bahamas, and Montego Bay, Jamaica were launched on July 1, 2014. Flights to San Jose del Cabo and Cancun, Mexico started in August, as scheduled.

    By Teresa Cederholm
  • Industrials

    Must-know update on Southwest’s fleet activity in 3Q14

    Low-cost carriers such as Southwest and JetBlue operate fewer aircraft types than do legacy carriers. Southwest’s single fleet strategy has helped it maintain is low-cost competitive advantage by reducing maintenance and training costs.

    By Teresa Cederholm
  • Industrials

    Assessing the key drivers of global airline industry growth

    There was an overall increase in worldwide passenger traffic and capacity in August. Passenger capacity increase of 5.5% year-over-year and was driven by strong growth in the international market.

    By Teresa Cederholm
  • Industrials

    Why fewer aircraft deliveries in August slowed capacity growth

    Airlines increase capacity by adding more aircraft to their fleet. In August, as we saw in Part 2 of this series, the rate of growth in capacity was lower compared to demand growth.

    By Teresa Cederholm
  • Industrials

    Why investors should track the Transportation Services Index

    The Transportation Services Index (or TSI) measures changes in the passenger and freight movements in the U.S. domestic market.

    By Teresa Cederholm
  • Industrials

    Why are revenue passenger miles important?

    Revenue passenger miles (or RPM) measures demand for air transport. It’s calculated as the number of revenue passengers multiplied by the total distance traveled.

    By Teresa Cederholm
  • Industrials

    Why yield is another key driver for airline revenue

    Yield is the average fare per passenger per mile. Passenger revenue is calculated by multiplying revenue passenger miles (or RPM) by the yield.

    By Teresa Cederholm
  • Industrials

    Why there’s a trend in crude oil and jet fuel prices

    The Brent crude oil price is expected to fall by ~4% in 2014—to $104.42 per barrel. Jet fuel price is a refined product of crude oil. It fell below $112 per barrel in September.

    By Teresa Cederholm
  • Industrials

    Why investors should track labor cost in the airline industry

    The second largest cost component for airlines—after fuel cost—is salaries, wages, and benefits. Employment in the U.S. airline industry increased in the last couple of years.

    By Teresa Cederholm
  • Energy & Utilities

    Why the crude oil price fluctuates

    Fuel cost is the largest cost component for airline companies. Jet fuel is produced by refining crude oil. As a result, jet fuel prices follow the trend in crude oil prices.

    By Teresa Cederholm
  • uploads///Part_RCL_Key revenue drivers
    Consumer

    Key metrics to measure Royal Caribbean’s revenue performance

    Now let’s look at certain key operating metrics used in the cruising industry to evaluate operational performance.

    By Teresa Cederholm
  • Industrials

    Southwest’s returns on investment and valuation

    Southwest’s stock price has increased by 63.2% as the share price closed at $30.82 on August 18, 2014 from $18.8 in the beginning of the year. Apart from capital appreciation Southwest’s shareholders have also benefitted from a 50% increase in quarterly dividend from $0.04 per share to $0.06 per share from 2Q14. Southwest had earlier […]

    By Teresa Cederholm
  • Industrials

    Delta’s investments in airports, joint ventures, and alliances

    Delta’s profitability in New York is expected to increase in 2014 as the company expands operations its in two major airports, LaGuardia and JFK.

    By Teresa Cederholm
  • Industrials

    Must-know: External factors that influence the airline industry

    The airline industry has contributed to the globalization of the world economy. It connects buyers and sellers. It also transports goods across nations. It breaks the barrier of distance and time. The industry’s future looks bright. Travel expenditure in the U.S. is expected to grow by 4.3% in 2014 and 5.1% in 2015.

    By Teresa Cederholm
  • Industrials

    Why political and legal factors impact the airline industry

    The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. It’s also impacted by issues like war, terrorism, and the outbreak of diseases—such as Ebola. These issues are political. As a result, they require government intervention.

    By Teresa Cederholm
  • uploads///Part_Q_ROIC spread
    Earnings Report

    Southwest records highest return on invested capital since 1981

    With the entry into international markets, Southwest’s growth prospects improved substantially, more than doubling its share price.

    By Teresa Cederholm
  • uploads///Part_Q_Fuel cost
    Earnings Report

    Efficiency, lower fuel costs reduce Southwest’s unit cost by 4%

    Southwest Airlines enjoyed a decrease in its operating expenses from $4,042 million in 4Q13 to $4,007 million in 4Q14.

    By Teresa Cederholm
  • uploads///Part_Q_Revenue
    Earnings Report

    Strong passenger, cargo traffic drive Southwest’s 4Q14 revenues

    Driven by passenger and cargo segments, Southwest Airlines’s revenue increased by 4.5% year-over-year to $4,628 million in 4Q14.

    By Teresa Cederholm
  • uploads///Part_Q_Branded fares
    Earnings Report

    Delta’s new branded fare categories expected to boost revenue

    Delta’s new branded airfare initiative provides an opportunity to derive an annual benefit of $1.5 billion by 2018.

    By Teresa Cederholm
  • uploads///Part_RCL_Margin
    Company & Industry Overviews

    Comparing the major cruise lines’ operating and net margins

    Among the three major competitors in the cruise industry, Royal Caribbean (RCL) had the highest operating margin in 2013.

    By Teresa Cederholm
  • uploads///Part_RCL_Operating cost breakdown
    Company & Industry Overviews

    Breaking down Royal Caribbean’s operating costs

    Costs directly related to operating a cruise ship comprise ~74% of Royal Caribbean’s (RCL) total operating costs.

    By Teresa Cederholm
  • uploads///Part_Q_Fuel price per gallon
    Earnings Report

    Negative impact of fuel hedges, decreasing crude oil prices

    The lower fuel price should lower fuel expenses by $2 billion, and Delta plans to reduce its debt and increase shareholder returns with the cost savings.

    By Teresa Cederholm
  • uploads///Part_RCL_Six brands
    Company & Industry Overviews

    Royal Caribbean tailors brands for specific international markets

    Apart from operating the largest contemporary global brand, Royal Caribbean offers five additional brands targeting specific markets.

    By Teresa Cederholm
  • uploads///Part_RCL_Revenue growth
    Company & Industry Overviews

    A closer look at Royal Caribbean’s revenue sources and growth

    Royal Caribbean (RCL) derives revenue from two sources: passenger ticket revenue and onboard and other revenue.

    By Teresa Cederholm
  • uploads///Part_RCL_debt
    Company & Industry Overviews

    Comparing Royal Caribbean’s leverage versus its competitors’

    The cruise industry is getting more and more capital-intensive as newer, more expensive ships are introduced with better amenities.

    By Teresa Cederholm
  • uploads///Part_RCL_Market share
    Company & Industry Overviews

    Overview: Royal Caribbean Cruises, the 2nd largest cruise operator

    Royal Caribbean Cruises, founded in 1968 and headquartered in Miami, Florida, is the world’s second largest cruise company.

    By Teresa Cederholm
  • uploads///Part_Cost structure
    Company & Industry Overviews

    Alaska’s cost structure boosts advantage against network carriers

    Improving the completion rate by 1% to 99.3% translates into 2,000 flights per year. Reducing block time also results in significant cost savings.

    By Teresa Cederholm
  • uploads///Part_Debt
    Company & Industry Overviews

    Carnival stays competitive with strong financial position

    Carnival has a stronger financial position than its peers. It maintained a very low debt-to-capital ratio of 28% in 2013 and just 27% in 2014.

    By Teresa Cederholm
  • uploads///Part_Operating cost breakdown
    Company & Industry Overviews

    A key overview of Carnival’s costs and profitability

    Carnival’s operating profit increased to $1,792 million in 2014, from $1,352 million in 2013. Its operating margin increased to 11.3%, from 8.7% in 2013.

    By Teresa Cederholm
  • uploads///Part_Revenue drivers
    Company & Industry Overviews

    Key drivers of Carnival’s revenue growth

    The growth of demand was the key driver of Carnival Corporation’s revenue growth in 2014. The number of passengers increased by 5% in 2014.

    By Teresa Cederholm
  • uploads///Part_Cruise categories
    Company & Industry Overviews

    Carnival’s contemporary, premium, and luxury cruises

    Cruise categories Cruise liners have been successfully providing a wide range of products and services at various price points to suit preferences of passengers from different age groups. Service levels and pricing differ by brand, category of the ship, cabins, season, duration, and itinerary. We can categorize cruise brands into these three categories: contemporary, premium, […]

    By Teresa Cederholm
  • uploads///Part_Segments_Share of revenue and operating income
    Company & Industry Overviews

    Two segments make up 98% of Carnival Corporation’s revenue

    Two of Carnival Corporation’s (CCL) operating segments comprise almost 98% of the company’s revenue. Carnival also reports a Cruise Support segment and a Tour segment.

    By Teresa Cederholm
  • uploads///Part_Revenue Breakdown
    Company & Industry Overviews

    What are Carnival Corporation’s revenue sources?

    Carnival Corporation (CCL) derives revenue from the following three sources: passenger tickets, onboard or other activities, and tours.

    By Teresa Cederholm
  • uploads///Part_Global market share
    Company & Industry Overviews

    Carnival boasts largest market share of cruise passengers

    The number of Carnival’s cruise passengers has increased at a six-year CAGR of 4.6%. It has the largest market share of cruise passengers at ~47%.

    By Teresa Cederholm
  • uploads///Part_Key Milestones
    Company & Industry Overviews

    A key overview of Carnival, the world’s largest cruise company

    Carnival Corporation (CCL), the largest cruise company in the world, operates 101 cruise ships and has a global market share of ~47%.

    By Teresa Cederholm
  • uploads///Part _Dec_US GDP
    Macroeconomic Analysis

    Revision of global GDP growth estimate may alert airlines

    Corporate profits, an important indicator of business travel, increased at a quarterly rate of 8% in 2Q14 after declining by 9.4% in the first quarter.

    By Teresa Cederholm
  • uploads///Part_Dec_Asia_country domestic passenger growth
    Macroeconomic Analysis

    Key Asia-Pacific economies report higher October traffic growth

    China is expected to overtake the US as the world’s largest passenger market by 2030.

    By Teresa Cederholm
  • uploads///Part_Aircraft deliveries
    Company & Industry Overviews

    Improved returns drive higher capital investments for airlines

    Due to rising returns on invested capital, investments have increased and the number of aircraft has risen by 3% in the last two years. It’s expected to grow by 3.6% in 2015.

    By Teresa Cederholm
  • uploads///Part_Marketshare
    Company & Industry Overviews

    Top airlines by revenue passenger kilometers

    Five US airlines are among the top 15 airlines by passenger traffic in 2013. United Continental Holdings ranks first with 287.2 billion revenue passenger kilometers.

    By Teresa Cederholm
  • uploads///Part_CEA_Currency fluctuation
    Company & Industry Overviews

    Impact of currency fluctuation on China Eastern’s profitability

    Chinese companies are vulnerable to exchange rate fluctuations, especially against the US dollar, and they have a high amount of debt denominated in US dollars.

    By Teresa Cederholm
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