JetBlue Airways Corp
Latest JetBlue Airways Corp News and Updates
Masks Are Now Optional on U.S. Airlines — Will It Last?
Why Is JetBlue Canceling Flights? The Real Reason, Revealed
JetBlue and American Airlines Formed an Alliance, Not a Merger
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.
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 […]
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.
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.
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.
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.
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.
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.
Will Airfares Continue to Decline in 2016?
According to a study by Expedia, airfares fell by about 5% in 2015. Despite this decline, passenger complaints are on the rise. Many consumer leaders also lobbied for airfare reductions.
How Did FedEx Grow into One of the Largest Logistics Giants?
In the international arena, FedEx primarily competes with DHL, United Parcel Service (UPS), and foreign postal authorities.
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%.
American Airlines gets significantly lower position in Appaloosa
Appaloosa Management significantly lowered its position in American Airlines (AAL) in the third quarter that ended in September 2014. The position accounts for 3.81% of the fund’s total third-quarter portfolio.
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.
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.
Are Analysts Expecting JetBlue Airways’s Revenue to Grow in 2Q16?
Analysts are estimating 2Q16 revenue of ~$1.7 billion for JetBlue Airways (JBLU), which is a year-over-year increase of 2.2%.
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.
How American Airlines Stock Reacted to Its Guidance Update
American Airlines (AAL) stock rose almost 0.94% on September 12, the day of its traffic release.
Analysts’ Views on Delta Air Lines after Its Traffic Release
Analyst upgrades Delta Air Lines (DAL) has already received four downgrades since its traffic release yesterday. Imperial Capital reduced its target price from $54 to $50, Deutsche Bank has reduced its target price from $62 to $59, Cowen & Co. has reduced its target price from $66 to $60, and UBS has reduced its target […]
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.
How Wall Street Analysts View the Major Airlines
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.
Can Spirit Airlines Maintain Its Industry-Leading Margins?
Spirit Airlines’ EBITDA (earnings before interest, tax, depreciation, and amortization) margin is expected to fall to 24.2% in 2016, compared to 26.8% in 2015.
Did Delta’s Guidance Cut Prompt a Losing Streak for Airlines?
Delta Air Lines (DAL) stock fell 3.5% after its traffic release on September 5, 2017. The negativity has spread to other players.
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.
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 […]
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.
Is Southwest’s Demand Growth Enough to Fill Its Added Capacity?
In November 2017, Southwest Airlines’ (LUV) traffic grew 3.4% year-over-year (or YoY). This growth was higher than its capacity growth of 2.5% YoY in the same month.
Airline Relative Valuations: What Is Priced In?
The airline industry is capital-intensive, with high levels of depreciation and amortization and varying degrees of debt and operating leases. To neutralize these factors, we use the EV-to-EBITDA ratio to value airline stocks.
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.
What Wall Street Analysts Recommend for Southwest Airlines
Right now, 36.8% of the analysts tracking Southwest Airlines (LUV) stock have given it “strong buy” ratings. Another 52.6% of analysts have “buy” ratings on the stock.
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.
Spirit Airlines: An Introduction to a Low-Cost Pioneer
Spirit Airlines (SAVE) is headquartered in Miramar, Florida. It’s a pioneer of ultra-low-cost carrier or ULCC airlines.
Why Does JetBlue Stock Continue to See Positive Momentum?
JetBlue Airways Corporation (JBLU) is the only airline stock in the industry to have gained more than 50% in 2015.
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.
What Does Southwest Airlines’s Current Valuation Tell Us?
Southwest Airlines’s (LUV) current valuation is slightly lower than its average valuation of 4.8x since October 2008.
JetBlue Airways’ Stock Soars after Its 2Q16 Earnings Release
On July 26, JetBlue reported a 2Q16 revenue increase of 1.9% YoY to ~$1.6 billion. Its EPS also jumped by a strong 20.5% YoY to $0.53 in 2Q16.
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.
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.
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.
Why Spirit Airlines’ Stock Has Lost 40% of Its Value in 5 Months
The problems for Spirit Airlines (SAVE) started in early May, when the company ended up canceling hundreds of flights.
Wall Street Analyst Recommendations for JetBlue Airways
Currently, 13.3% (or two) of the analysts tracking JetBlue Airways (JBLU) stock have a “strong buy” rating. About 40.0% (or six) of them have a “buy” rating.
JetBlue Airways: What Are Analysts’ Recommendations?
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.
United Continental on the Street: Analyst Recommendations
As of June 9, four of the analysts (25%) tracking United Continental (UAL) had a “strong buy” recommendation on the stock, while five (31.3%) had a “buy.”
Airline Stocks: Key Indicators to Watch
After crude oil prices, labor costs are the largest part of an airline’s expenses. Pilot strikes and shortages continue to present problems.
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.
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%.
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.
What Are Analysts Estimating for UAL in 2016?
UAL’s consensus 12-month target price is $77.38, which indicates a 65.6% return potential.
Why Union Pacific’s Operating Margin Contracted in 3Q17
Union Pacific’s reported a 4.5% rise in overall operating revenues in 3Q17, but its operating expenses totaled $3.4 billion—up 6% from $3.2 billion in 3Q16.
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.
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.
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.
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.
What Can Investors Expect from JetBlue in 2Q15?
JetBlue’s operating income grew to $253 million for 1Q15, representing enormous growth from 1Q14’s $41 million in operating income.
What Will Southwest Airlines’ Q2 Results Show?
Southwest Airlines is set to report its second-quarter earnings tomorrow. Southwest has been favored by analysts because of its strong balance sheet.
JetBlue Airways Announces Growth Plans amid COVID-19 Crisis
On June 18, to support revenue recovery, JetBlue announced that it will add 30 domestic routes, especially in its leisure markets.
JetBlue Airways Reports Q1 Earnings, Discusses 2020 Outlook
JetBlue Airways (NASDAQ:JBLU) reported its results for the first quarter of fiscal 2020 on May 7. So far, 2020 has been bad for the airline industry.
Spirit Airlines Reports Q1 Losses, Plans to Cut Costs
Spirit Airlines (NASDAQ:SAVE) reported its results for the first quarter of fiscal 2020 on Thursday. The company’s first-quarter revenue missed the estimates.
JetBlue Airways’ Q1 Earnings: Losses Could Rise in 2020
JetBlue Airways (NASDAQ:JBLU) will likely report its results for the first quarter of fiscal 2020 on May 7 after the market opens.
Analysts Expect American Airlines to Report Higher Q1 Losses
American Airlines will likely report its results for the first quarter of fiscal 2020 on April 30. Analysts aren’t hopeful about the first-quarter results.
Southwest Airlines’ Q1 Losses Were Lower than Expected, Stock Rose 2%
Southwest Airlines (NYSE:LUV) reported its results for the first quarter of fiscal 2020 on April 28. The loss was lower than analysts’ expectations.
Southwest Airlines Could Report Losses in Its Q1 Earnings
Southwest Airlines (NYSE:LUV) will likely report its results for the first quarter of 2020 after the market opens on Tuesday.
United Airlines Will Sell 22 Planes to BOC Aviation amid COVID-19
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.
Airline Stocks Crash, Face Turbulence amid Coronavirus
Airline stocks fell significantly on Thursday. More coronavirus cases led to travel restrictions and a big drop in demand.
Boeing, Buffett, and Billions: Is the Moat Intact?
Yesterday, Boeing rose 0.41% on rumors that Warren Buffett might buy into the beleaguered plane maker. At 10:27 AM today, it was up about 1% at $334.62.
2019 Went to Airbus—Can Boeing Catch Up in 2020?
It’s no surprise that Airbus beat Boeing in 2019 deliveries. Last year, the European aircraft maker’s deliveries rose 8% year-over-year to 863 planes.
United Airlines Stock Gains on Evercore Rating Upgrade
United Airlines (UAL) stock gained nearly 2% on Thursday. Evercore ISI analyst Duane Pfennigwerth upgraded the stock to “outperform” from “in-line.”
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 […]
Boeing-Embraer Deal on EU Radar: Is Trump to Blame?
Boeing and Embraer are pushing for a joint venture. In a $4.2 billion deal, Boeing is to buy 80% of Embraer’s commercial aircraft division.
Airbus Gets 100-Aircraft Order from Spirit Airlines
Airbus received firm orders for its 100 A320neo family aircraft from the US-based low-cost carrier Spirit Airlines (SAVE).
United Taps Airbus over Boeing for New Aircraft Orders
United Airlines has chosen Airbus for its new aircraft requirements. On December 3, it placed orders for 50 new long-range, single-aisle Airbus A321XLRs.
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.”
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.
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.
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.
United Airlines launches a $949 million equipment trust certificate
United Airlines (UAL), a leading passenger airline company in North America with a market capitalization of $15.9 billion, issued a $949.5 million enhanced equipment trust certificate.
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.
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 […]
Is Airbus Trying to Leverage the Boeing MAX Fallout?
French aircraft maker Airbus seems to be leveraging the Boeing (BA) 737 MAX fallout by expanding its aircraft production capacity in China.
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.
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.
JetBlue Up, Alaska Air Down after JPM Rating Change
Today, JPMorgan Chase analyst Jamie Baker upgraded JetBlue (JBLU) stock to “overweight” from “neutral.” JPM also downgraded Alaska Air (ALK).
MAX Crisis Costs Boeing Multi-Billion-Dollar Order Loss
Last week, Boeing (BA) lost a multi-billion-dollar order to its arch-rival Airbus. There’s still uncertainty about the 737 MAX’s return.
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.
Get Real: Third-Quarter Roller Coaster
In today’s Get Real, we saw that several third-quarter results are out and all over the board. We also have recommendations for stocks to watch going forward.
JetBlue Q3 Earnings Soar on High Revenues, Low Costs
JetBlue Airways (JBLU) reported strong Q3 results today. Revenues and earnings beat analysts’ expectations and improved significantly year-over-year.
Is Acquisition a Solution to Southwest’s MAX Problems?
A prominent Wall Street analyst believes that Southwest Airlines (LUV) could look for strategic solutions to its 737 MAX problems, including acquisition.