iShares Transportation Average
Latest iShares Transportation Average News and Updates
Why Delta Air Lines’ Traffic Fell in August 2016
Delta Air Lines’ (DAL) total traffic fell due to a computer outage. For August 2016, Delta’s traffic fell by 2.8% as compared to the 0.5% capacity growth.
Why Union Pacific’s Intermodal Freight Revenues Could Disappoint in 2016
Union Pacific’s domestic intermodal includes North American operations. Intermodal freight generated 20% of the company’s revenues in 2014.
Why Did Analysts Fall Out of Love with Southwest Airlines?
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.
What Helped Alaska Air Group Drive its 2Q15 Earnings?
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 Airlines Capacity Growth Is Faster than That of Its Peers
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.
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.
Turnover in Norfolk Southern’s Top Management in 2015
In 2015, Norfolk Southern Corporation (NSC) witnessed numerous changes in its executive management ranks due to either retirement or promotion.
Why Should Investors Anticipate CSX’s 2Q16 Earnings Preview?
Railroad stocks provide a good insight into the overall health of the economy. CSX Corporation will release its 2Q16 earnings on July 13.
More Analysts Have Turned Positive on Alaska Air Group
Alaska Air Group’s (ALK) consensus 12-month target price is $80.55, which indicates a 15.2% return potential on October 10, 2016.
What Has Caused the Correction in Transportation Stocks?
DJTI’s price-to-earnings ratio climbed from 15.7x at the start of 2013 to 20.2x at the end of 2014. This year, transportation stocks (IYT) have taken a hit, leading to multiple contractions.
Can Airline Capacity Utilization Improve Going Forward?
Airline capacity utilization is measured using the passenger load factor, which is calculated by dividing traffic numbers by capacity numbers.
Are 2016’s Rising Airfares Here to Stay?
Since airlines across the industry have been forecast to beat record profits achieved in 2015, consumers have expected a further fall in airfares.
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.
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.
What worries Charles Evans?
A slowing global economy is also a worrying factor for Charles Evans. Companies with an export focus will hire fewer people if there are fewer orders.
Why Old Dominion Freight Line Commands a Valuation Premium
Old Dominion announced a rise of 2.0% LTL tons in January and 3.2% in February. During the same months, its LTL shipments per day rose by over 6%.
UPS’s Second-Largest Segment: International Package Segment
United Parcel Service’s international package segment includes small package operations in Europe, Asia-Pacific, Canada, Latin America, the Indian subcontinent, the Middle East, and Africa.
Most Airline Stocks Continue to Tumble in August
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.
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.
How CSX’s Carloads Compared with Industry Volumes in Week 6
In the sixth week of 2018 (ended February 10), CSX posted a 9% loss in carload traffic.
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.
Why Did FedEx Switch to Mark-to-Market Pension Accounting?
FedEx suffered a loss of $895.0 million in connection with the shift to new pension accounting in 2015.
A Look into UPS’s Domestic Package Segment
UPS’s Domestic Package segment provides an array of guaranteed ground and air package transportation services, depending on the customer’s need.
FedEx Tax Bill: CEO Challenges New York Times’ Claims
FedEx (FDX) CEO Frederick Smith slammed the New York Times for its story about FDX’s tax bill. In a statement, Smith challenged the publisher to a debate.
US Airlines Capacity Growth Outpaces Demand, Load Factor Drops
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.
Week 38: US Rail Traffic Growth Stood Out in North America
The Association of American Railroads published its weekly rail traffic data for 12 key North American railroad companies on September 26.
How Old Dominion Freight Line Dominates the Less-Than-Truckload Industry
Old Dominion Freight Line (ODFL) is the United States’ major provider of regional, interregional, and national LTL (less-than-truckload) services.
FedEx Delivers Strong Fourth-Quarter Earnings
FedEx (FDX) announced its fourth-quarter earnings after the market closed on June 19. FedEx surpassed analysts’ adjusted EPS estimate by 3.6%.
Airline Industry Demand Continues to Grow in August
The demand for air travel experienced considerable growth in the month of August, driven by traditional vacation travel as well as lower fares of major air carriers.
Looking at Investing in JetBlue, Even without Dividends
JetBlue is in its growth phase and prefers to utilize its cash receipts to fund business growth and reduce debt levels. JetBlue currently pays no dividends.
What Investors Should Know about Delta Air Lines
Delta Air Lines (DAL) is the third largest domestic airline in the US. The company serves more than 170 million customers each year across the globe.
Alaska Air Group Completes Virgin America Merger
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.
FedEx’s New Pricing Policy Improves Its Efficiency
Effective January 2015, FedEx changed its pricing policy for all of its FedEx Ground packages less than 3 cubic feet to a “dimensional weight pricing” mechanism.
Fundamental Industry Trends that Investors Should Know
While air freight and logistics service operators have benefited from the recovery in the US economy, M&A has been the major growth driver for the industry in recent years.
Analyzing the Valuation Trend of Courier Services
The economic upturn since 2009 has improved growth prospects for the courier companies. This coupled with improving industry margins has led to improving industry valuations.
Airlines Passenger Yield Continues to Decline in August 2015
Passenger yield declined by 8% year-over-year for August 2015 to 15.3 cents from 16.6 cents. This is the highest decline since the start of the year.
Why BNSF’s Operating Margin Slumped in 3Q16
Along with BNSF, other Class I railroad companies’ operating margins have been in focus in recent quarters amid weak industry fundamentals.
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.
Initial Reactions from the Travel Industry after Trump’s Win
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?
Airlines’ Relative Valuations after 4Q16 Earnings: What Is Priced In?
Alaska Air Group (ALK) currently has the highest forward EV-to-EBITDA multiple of 6.6x.
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.
The Economic Costs That Come with Climate Goals
Climate-related policies and a transition to a low-carbon economy require capital, and most countries are already burdened with high debt.
Will the TNT Express Deal Benefit FedEx?
Earlier this year, FedEx (FDX) declared its offer to purchase TNT Express for an all-cash offer of $4.8 billion. It wants to gain better market share.
How Is UPS Valued Compared to Its Peers?
UPS’s forward PE ratio stands at 17.1x compared to its current PE ratio of 22.3. Analysts are expecting UPS’s earnings to grow in the next four quarters.
Analyzing the Key Variables for the Airline Industry
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.
What are UPS’s Revenue Drivers?
Revenue drivers There are three main drivers of revenue growth for United Parcel Service (UPS): package volumes, product mix and pricing, and fuel surcharges. Package volumes and product mix and pricing are in turn driven by economic growth. Economic growth Increasing economic growth increases e-commerce demand, which in turn increases demand for courier services. […]
FedEx Stock Soars on US-China Trade Deal Optimism
FedEx stock soared yesterday on hopes of a US-China trade deal after US commerce secretary Wilbur Ross said the two sides are “making good progress.”
John Williams outlines the must-know signs pointing to a recovery
Dr. John Williams, president and CEO of the San Francisco Fed, spoke on the normalization of monetary policy and monetary tightening in a presentation to the Association of Trade & Forfaiting in the Americas in San Francisco on Thursday, May 22.
Delta: What to Expect from Its Q1 Earnings
Delta Air Lines (DAL) is scheduled to report its first-quarter earnings results on April 10.
Analysts’ Estimates for Delta’s Margin Suggest Limited Expansion
Delta Air Lines’ EBITDA (earnings before interest, tax, depreciation, and amortization) margins are expected to have improved to 21% in 2015 as compared to 10% in 2014.
What Are Analysts Estimating for Spirit Airlines in 2016?
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.
What Can Investors Expect from Delta Air Lines in 2Q15?
For 2Q15, Delta Air Lines expects to increase its revenues by 2% based on 3% growth in capacity and a 2%–4% decline in revenue per available seat.
Factory orders race ahead, driving companies like Union Pacific
The US Census Bureau will release the factory orders report for March on Friday, May 2. The Bureau already released an advance report on factory orders and shipments for March last week.
What’s the Outlook for Star Bulk Carriers?
If dry bulk demand picks up, Star Bulk Carriers (SBLK) with its large fleet would be in a position to capitalize on the upswing.
Could Alaska Air Group’s Margin Expand in 2017?
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: On the Right Route to Achieve Capacity Guidance?
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.
What to Expect from Canadian Pacific’s 1Q16 Results
Canadian Pacific Railway (CP) will report its 1Q16 financial and operating results before the US market opens on April 20, 2016.
Southwest Airlines Stock Gained over 5% Last Week
Southwest Airlines (LUV) shares gained over 5% last week, which helped the stock end the first quarter with a cumulative gain of 11.7%.
Can SAVE Continue Its Strong Operational Performance in 2016?
For 4Q15, Spirit Airlines recorded a solid 27.5% YoY growth in its traffic numbers. The traffic growth was boosted by lower airfares, strong network expansion, and an overall strength in the industry and economy.
Can United Parcel Service’s Margins Continue to Expand in 2016?
UPS’s operating margins expanded to 14% from 12% in 4Q14.
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 […]
UPS Projects Record Returns on National Returns Day
United Parcel Service (UPS) expects to return a record 1.9 million packages on National Returns Day, up 26% year-over-year.
Is It Time to Go Long on United Airlines Stock?
So far, United Airlines (UAL) stock has underperformed the broader markets and its top peers this year. The stock has risen about 6.5% this year.
Argus Cautious over FedEx Near-Term Earnings Potential
Argus downgraded FedEx (FDX) over its near-term earnings potential. On Tuesday, analyst John Eade cut the stock to “hold” from “buy.”
FedEx Loses Analysts’ Confidence on Weak Earnings
FedEx (FDX) stock faced rating and target price cuts following its dismal fiscal 2020 second-quarter earnings results and its pessimistic fiscal 2020 earnings outlook.
FedEx Ends US Ground-Delivery Contract with Amazon
On Wednesday, FedEx (FDX) confirmed a Bloomberg report. The company terminated its ground-delivery agreement with Amazon (AMZN).
UPS Stock Rating Cut by BMO Analyst—Why?
UPS stock fell 1.5% yesterday after BMO Capital Markets analyst Fadi Chamoun cut his rating to “market perform” from “outperform.”
Why FedEx Stock Fell More than 4% Yesterday
FedEx stock fell 4.4% yesterday following an earnings estimate reduction and fears that a trade deal between the US and China could be delayed.
Delta Air Stock Falls as November Load Factor Declines
Delta Air Lines (DAL) stock fell 1.4% yesterday after the carrier reported a year-over-year contraction in its November load factor.
Airline Stocks Fall after Trump Warns of Trade Deal Delay
Airline stocks fell sharply yesterday after Donald Trump warned that a trade deal with China may be delayed. Trump said, “I have no deadline.”
Canadian Pacific Railway expects earnings to grow 30%
In October, Canadian Pacific Railway (CP) announced new growth targets and said it expects to more than double its diluted earnings per share (or EPS) over the next four years.
Comp: JetBlue’s Leverage Ratio Falls Towards Peers
The airline industry is a capital-intensive industry and thus airline companies have substantial debt on their balance sheets.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Overview: Chicago Fed’s National Activity Index report, May, 2014
Unlike the regional manufacturing surveys conducted by the Federal Reserve Banks of other districts, the CFNAI is a nation-wide measure.
FedEx Stock Gains Due to Strong Cyber Monday Projections
FedEx (FDX) stock gained nearly 3% on November 22. The company expects record package volumes on Cyber Monday.
JetBlue Stock: Analysts’ Ratings and Target Prices
With a year-to-date return of 21.9%, JetBlue Airways (JBLU) stock is one of the airline industry’s top performers. Here are analysts’ views on the stock.
United Airlines Stock: Why UBS Says to ‘Buy’ It?
On Wednesday, UBS analyst Myles Walton said to “buy” United Airlines (UAL) stock for double-digit returns over the next year.
American Airlines Stock: Why UBS Is Bearish
American Airlines (AAL) stock fell 3% yesterday after UBS analyst Myles Walton initiated coverage of the stock with a “sell” rating.
Southwest to Accelerate Second-Hand Jet Inspection
On Monday, Southwest Airlines said that it will accelerate inspections of 38 remaining second-hand jets. The company bought the jets from foreign carriers.
United Airlines Stock: Is It Worth Buying Right Now?
Analysts have remained bullish about United Airlines stock. The analysts polled by Reuters provided a consensus “buy” recommendation on the stock.
Will Southwest Airlines’ Stock Rally Continue?
With a year-to-date return of 25.2%, Southwest Airlines (LUV) stock has outperformed broader markets and the iShares Transportation Average ETF (IYT).
Delta’s Traffic Outgrew Its Capacity in October
Delta Air Lines reported its October operating metrics on Monday. Delta’s traffic outgrew its capacity, expanding by 5.2% year-over-year.
United Airlines Stock: Why Is Citigroup Bullish?
On November 1, Citigroup (C) analyst Stephen Trent initiated coverage on United Airlines (UAL) stock with a bullish recommendation.
Why Citigroup Says to Buy Delta Air Lines Stock
Delta Air Lines stock gained 1.7% on Friday after Citigroup analyst Stephen Trent suggested investors buy it. His target price implies a 16% upside.
Airline Stocks: Have Q3 Results Eased Investors’ Fears?
Airline stocks gained altitude in October. The third-quarter results eased investors’ concerns about the global economic slowdown and the MAX grounding.
Trade War Concerns Send FedEx and UPS Stocks Lower
FedEx (FDX) and UPS (UPS) stocks fell drastically on Thursday due to renewed trade war concerns. China is concerned about reaching a trade deal with the US.
Southwest Stock: Why Bernstein Has a Different View
Bernstein analyst David Vernon cut his rating on Southwest stock to “market perform” from “outperform.” However, he raised the target price to $61 from $58.
An investor’s must-know overview of the airline industry
The global airline industry is large and complex, offering opportunity for informed investors. The largest U.S. carriers are Delta Air Lines (DAL), United Continental (UAL), American Airlines (AAL), and Southwest Airlines (LUV).
How Did Airline Stocks Fare during Q3 Earnings Season?
Airline stocks rose last week. Most of the companies reported better-than-expected third-quarter results. Notably, airline companies’ earnings beat the estimates.
FedEx Stock: Analysts’ Ratings and Target Prices
Back-to-back dismal quarterly performance and a downbeat outlook have kept analysts increasingly cautious about FedEx’s (FDX) growth prospects.
Boeing Crisis: The Impact on Southwest’s Q3 Earnings
Reduced capacity and increased costs due to the 737 MAX’s prolonged grounding could negatively impact Southwest Airlines’ Q3 earnings, due on October 24.
UPS: Q3 Earnings Could Rise despite Soft Global Trade
Increased freight rates, solid e-commerce growth, and efficient cost management are expected to drive United Parcel Service’s (UPS) Q3 earnings higher.