Alaska Air Group Inc

Delta Air Lines (DAL) expects to generate more than $7 billion–$8 billion of operating cash flow and ~$4 billion–$5 billion of free cash flow. It plans to reduce its adjusted net debt to $4 billion by 2020.

Out of the 18 analysts tracking Southwest Airlines (LUV), 11 analysts (61.1%) have a “buy” recommendation on the stock versus 71% analysts that had a “buy” recommendation on Southwest in 2Q16.

Adding newer destinations Alaska Air Group (ALK) added a number of new routes in the second quarter of 2015, such as: Boise to Reno Eugene to San Jose, California Los Angeles to Baltimore Los Angeles to Gunnison–Crested Butte Los Angeles to Monterey Los Angeles to San Jose, Costa Rica Portland to Austin Seattle to Charleston […]

Alaska Air Group saw the highest surge in traffic demand and was the leader in capacity growth, with a 6.4% YoY increase in its capacity in July 2015.

2016 has been the worst start for the S&P 500 in the past eight years. US airlines also saw a bad start. The Dow Jones U.S. Airline Index has fallen 4% YTD.

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.

Alaska Air Group’s (ALK) consensus 12-month target price is $80.55, which indicates a 15.2% return potential on October 10, 2016.

Airline capacity utilization is measured using the passenger load factor, which is calculated by dividing traffic numbers by capacity numbers.

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

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.

According to Bloomberg’s consensus, out of the 14 analysts tracking American Airlines (AAL), 71.4% have “buy” recommendations.

In 2015, most airline stocks have fallen, and the NYSE ARCA Airline Index (XAL), which is composed of the major US airline stocks, has also tumbled as much as 13.5% year-to-date.

For 2Q16, analysts are estimating 4.2% revenue growth for Alaska Air Group (ALK), which is slower than the 6.2% growth in 1Q16.

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.

Analysts are estimating 2Q16 revenue of ~$1.7 billion for JetBlue Airways (JBLU), which is a year-over-year increase of 2.2%.

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.

Out of the 14 analysts tracking American Airlines (AAL), 50% have a “buy” recommendation on the stock as compared to the 71.4% that had a “buy” rating in 2Q16.

Decreasing load factors across the airline industry mean that airlines are not able to fill up their seats as fast as they are adding seats. This justifies investor fears of overcapacity.

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.

On April 4, 2016, Alaska Air Group (ALK) announced its acquisition of Virgin America for $57 per share in cash, which amounted to $2.6 billion.

In this article, we’ll look at the direction of the Truck Tonnage Index (or TTI) in October 2016.

Currently, American Airlines (AAL), Southwest Airlines (LUV), and Alaska Air Group (ALK) are all trading at ~5x their forward EV-to-EBITDA multiples.

The most recent phase of consolidation that began in 2005 has seen 13 airline mergers and acquisitions. Four of these deals are worth special mention because they changed the face of the industry.

Just a few days ago, we wrote about how Trump had received very little support from the travel industry. Now that he’s been elected, what’s next?

According to Reuters, of the 17 analysts tracking American Airlines (AAL), 23.5% (or four) have “strong buy” ratings on the stock.

Delta Air Lines (DAL) reported its fourth quarter 2016 results on January 12, 2016. The airline’s revenue fell.

Analysts’ “hold” ratings on American Airlines stock have risen significantly. Nine analysts, a total of 56.3%, now have “hold” ratings on the stock.

Alaska Air Group (ALK) has been trying to reduce its debt burden in order to strengthen its balance sheet in the long term.

American Airlines started paying dividends in mid-2014, joining the ranks of Delta Airlines, Southwest Airlines, and Alaska Air Group, the few dividend-paying airlines.

JetBlue Airways (JBLU) is expected to release its 2Q16 earnings on July 26. According to an analyst consensus, JBLU is expected to earn $0.49 in 2Q16, compared to earnings per share of $0.44 in 2Q15.

Investors should keep an eye on airfare trends. Despite a 40% fall in crude oil prices—the major cost for airlines—airfares have remained fairly stable.

Of the 15 analysts rating Spirit Airlines’ stock, 80% (12 analysts) have a “buy” rating, 20% (three analysts) have a “hold” rating, and none of the analysts have a “sell” rating.

Alaska Air Group plans to announce its 4Q15 and 2015 financial results on January 21, 2016. The company had a successful 2014 with record profits of $605 million on revenues of $5.37 billion.

In 1Q17, Alaska Air Group’s (ALK) EBITDA (earnings before interest, tax, depreciation, and amortization) is expected to fall 5.8% to $385 million.

Delta Air Lines (DAL) has maintained a low-capacity growth profile throughout 2017. For May 2017, DAL’s capacity growth was flat at 22,072 million miles.

United Airlines reported its second-quarter results on July 21. The quarter hit airlines hard, and they suffered huge losses owing to almost-zero demand.

Delta Air Lines’ adjusted revenue, excluding refinery sales, came in at $1.2 billion. The airline saw a capacity reduction of 85%.

Southwest Airlines stands out due to its strong balance sheet. A Goldman Sachs analyst is bullish about the stock making a strong recovery.

On June 18, to support revenue recovery, JetBlue announced that it will add 30 domestic routes, especially in its leisure markets.

Southwest Airlines (NYSE:LUV) has been gearing up to give other airlines though competition. Air travel demand has been picking up again.

United Airlines (NYSE:UAL) has fallen 3.7% in pre-market trading as of 7:03 AM ET today. The airline industry has been hit hard by the COVID-19 pandemic.

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 […]

Today, Southwest Airlines (LUV) announced that it is removing all Boeing (BA) 737 MAX flights from its flying schedule through April 13.

Almost every US airline stock soared last Friday after the US Department of Labor reported stronger-than-expected job market data.

With a return of more than 43% YTD (year-to-date), United Continental (UAL) shares have remained the biggest gainer in 2018.

Delta Air Lines’ higher debt means a higher interest expense and a higher DE (debt-to-equity) ratio. Delta Air Lines’ current DE ratio is 0.69x.

In this series, we’ll be taking a look at the companies that have announced $1,000 dollar bonuses, pay raises, increased dividends, and buybacks in the last two months.

Alaska Air Group’s (ALK) operating revenue rose 6% and 35% in 2016 and 9M17, respectively.

Current valuation Southwest Airlines (LUV) has a forward EV-to-EBITDA[1. enterprise value to earnings before interest, tax, depreciation, and amortization] multiple of 7.1x. This is the highest multiple among the major airline carriers and is higher than its average valuation of 6.3x since September 2008. Peer comparisons American Airlines (AAL) is trading at a similar valuation […]

Analysts’ recommendations Of the 17 analysts tracking Southwest Airlines (LUV), 36.8% of the analysts (seven analysts) gave a “strong buy” rating on the stock, while another 47.4% (nine analysts) gave a “buy” rating. The remaining 15.8% (three analysts) gave a “hold” rating. None of the analysts gave a “sell” or “strong sell” rating on the […]