Spirit Airlines Inc

On July 15, 2016, JetBlue Airways (JBLU) was valued at 4x its forward EV-to-EBITDA. JetBlue’s valuation is slightly lower than its average of 6x.

The efficiency, or utilization, of an airline’s capacity is measured using the passenger load factor, which is calculated by dividing the traffic numbers by capacity numbers.

As of September 21, 30.8% (four analysts) out of the 13 analysts tracking Spirit Airlines (SAVE) had a “strong buy” recommendation.

American Airlines (AAL), the fourth-largest US air carrier, is expected to report its first-quarter 2019 results on April 24.

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.

Airlines’ aggressive capacity growth has had an adverse effect on utilization, which has resulted in declining utilizations for most players.

In mid-September 2016, the Hawaiian Airlines pilot union opened a strike operations center to operate in the event of a strike.

Analysts recommend “buy” for most airline stocks. Goldman Sachs’ (GS) top picks are American Airlines (AAL) and Spirit Airlines (SAVE), and Credit Suisse’s (CS) favorites are Alaska Air Group (ALK) and Southwest Airlines (LUV).

Analysts expect American Airlines to report an adjusted EPS of $0.51—down 32.4% on a YoY (year-over-year) basis.

JetBlue Airways (JBLU) was the only airline stock to have gained more than 50% during 2015, when the stock soared as high as ~65%.

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.

Analyst recommendations Among the seven major carriers, most analysts seem to favor Delta Air Lines (DAL). Delta Air Lines has a “buy” rating from 87.5% of analysts covering it. Next is Southwest Airlines (LUV), which has 70.6% of analysts recommending “buy” and 29.4% recommending “hold.” Alaska Airlines (ALK) has 69.2% of analysts recommending “buy” and […]

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

American Airlines (AAL) stock rose almost 0.94% on September 12, the day of 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 […]

The airline industry’s fundamentals have improved tremendously in the past two years. This was driven by several factors that include low oil prices, strong passenger travel demand, and strong economic growth.

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.

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.

Delta Air Lines (DAL) stock fell 3.5% after its traffic release on September 5, 2017. The negativity has spread to other players.

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.

Southwest Airlines (LUV) stock has declined 0.5% since its traffic update on September 12.

Delta Air Lines (DAL) reported its 2Q16 results on July 14, 2016. The company’s revenue fell by 2.4% YoY (year-over-year) to $10.5 billion.

The global airline industry’s demand grew by 6.5% in 2015, higher than the past ten-year average of 5.5% and the highest growth seen since 2010.

For October, SAVE was ranked third on the metric according to the Department of Transportation. That’s a huge improvement since Spirit has historically been last.

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.

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.

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.

For August 2016, Spirit Airlines’ capacity grew 17.1% YoY—similar to July and the slowest growth compared to other months, so far, in 2016.

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

Spirit Airlines (SAVE) reported its February traffic numbers on March 8, 2017. Since then, the stock has gained 0.21%.

In August, Delta Air Lines (DAL) issued a press release stating its plans to grow in Boston, JetBlue’s (JBLU) second-largest market.

Of the analysts tracking Delta Air Lines (DAL), 100% have a “buy” rating on the stock. It is followed by Spirit Airlines (SAVE), with 87% of the analysts recommending a “buy” and 13% recommending a “hold.”

Spirit Airlines (SAVE) is headquartered in Miramar, Florida. It’s a pioneer of ultra-low-cost carrier or ULCC airlines.

FedEx Express offers three US overnight package delivery services: FedEx First Overnight, FedEx Priority Overnight, and FedEx Standard Overnight.

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.

Southwest Airlines’s (LUV) current valuation is slightly lower than its average valuation of 4.8x since October 2008.

On July 8, 2016, Spirit Airlines (SAVE) was valued at 6.9x its forward EV-to-EBITDA ratio.

Despite its fall in 3Q16, Spirit Airlines’ stock continues to be the best performing airline stock in 2016. The stock has risen almost 9% year-to-date.

Alaska Air Group (ALK) has been reducing its debt for the past five years. For 2016, it reduced its debt from $686.0 million to $626.0 million.

Second quarter 2016 estimates Analyst estimates serve as an effective proxy for gauging what’s priced into the market. For 2Q16, analysts are estimating Southwest Airlines revenues to grow by 5.7% to $5400 million. For the next two quarters, though sales are expected to grow, the growth rate in expected to slow down from 5.7% in […]

The JetBlue Airways (JBLU) stock is down ~1.6% since September 14.

Southwest Airlines (LUV) currently has the highest forward EV-to-EBITDA multiple of 6.9x among its peers.

Airline financials improved drastically in the past three years. Frontier Airlines’ IPO seems to be hitting the market at the right time for its investors.

The problems for Spirit Airlines (SAVE) started in early May, when the company ended up canceling hundreds of flights.

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.

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.”

After crude oil prices, labor costs are the largest part of an airline’s expenses. Pilot strikes and shortages continue to present problems.

Historically, JBLU has seen the highest capacity growth among the seven major airlines.

United Airlines (UAL) is scheduled to report its fourth-quarter earnings results on January 15.

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.

In fiscal 2015, Southwest Airlines (LUV) generated ~$3.2 billion in cash flow from operations. For 1H16, LUV has already generated $2.7 billion of cash flow from operations.

Airline passenger yield is the average airfare per passenger per mile. It is calculated by dividing the passenger revenue by revenue passenger miles (or RPM).

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.

US GDP sees weak growth In the first quarter of 2017, the US economy rose 0.7% YoY (year-over-year), the slowest growth recorded in three years. It is 2.1% slower than the growth recorded in 1Q16, as well as slower than analysts’ consensus forecast of 1% GDP growth. The 1.6% YoY GDP growth recorded in 2016 […]

In February 2017, Southwest Airlines’s (LUV) traffic growth closely matched its capacity growth, and its utilization was flat at 79%.

Spirit Airlines (NASDAQ:SAVE) is set to report its fiscal 2020 second-quarter results on July 23. Analysts expect losses and a decline in revenue from almost all airlines.

American Airlines (NASDAQ:AAL) will likely report its earnings for the second quarter of fiscal 2020 before the market opens on July 23.

Alaska Airlines (NYSE:ALK) will likely report its second-quarter results on July 23 after the market opens. For now, the company will avoid pilot furloughs.

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 (NASDAQ:SAVE) reported its results for the first quarter of fiscal 2020 on Thursday. The company’s first-quarter revenue missed the estimates.

Spirit Airlines (NASDAQ:SAVE) will likely report its results for the first quarter of fiscal 2020 on May 7 when the market opens.

JetBlue Airways (NASDAQ:JBLU) will likely report its results for the first quarter of fiscal 2020 on May 7 after the market opens.

United Airlines fell by 14.7% on May 1. The airline mentioned in its preliminary results that it would report a loss close to $2 billion.

United Airlines will likely report its results for the first quarter of fiscal 2020 on May 1. The company expects to report a loss of $2.1 billion.

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.

Airline stocks’ performance has gone downhill since the COVID-19 pandemic hit. Most industries were hit, but the travel industry took a bigger blow.

United Airlines (NYSE:UAL) stock fell 8% in early trading on Monday after the company reported preliminary first-quarter losses.

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 were among the few industries that lagged last year’s broader market rally. The broader US stock market had a remarkable run last year.

Airbus received firm orders for its 100 A320neo family aircraft from the US-based low-cost carrier Spirit Airlines (SAVE).

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

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 fell sharply yesterday after Donald Trump warned that a trade deal with China may be delayed. Trump said, “I have no deadline.”

The airline industry is a capital-intensive industry and thus airline companies have substantial debt on their balance sheets.

For Boeing, most of 2019 has been about the 737 MAX. It’s curbed the decision about whether to build its 797 model until the 737 MAX crisis is resolved.

The 2019 Dubai Airshow brought good news for Boeing. The company logged new requests for its troubled 737 MAX aircraft after several months of frozen orders.

This morning, Boeing (BA) received a major boost for its troubled 787 Dreamliner, whose order backlog has depleted rapidly.

The second day of the Dubai Air Show was quite eventful. Boeing and Airbus were both vying for new contracts, but Airbus stole the spotlight.

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.

Boeing (BA) may lose another multibillion-dollar aircraft order to Airbus as its fast-selling 737 MAX aircraft remain grounded.

Analysts have remained bullish about United Airlines stock. The analysts polled by Reuters provided a consensus “buy” recommendation on the stock.

Boeing has reportedly lost a huge aircraft order to Airbus. According to Reuters, GE Capital Aviation Services has ordered 25 Airbus planes.

Airline stocks gained altitude in October. The third-quarter results eased investors’ concerns about the global economic slowdown and the MAX grounding.

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.

Last week, the broader market sell-off battered US airline stocks. New tariffs on Airbus planes and dismal economic data impacted the long-term growth prospects.

On Thursday, Delta Air Lines announced a partnership with LATAM Airlines in a deal worth $2.25 billion. Delta will acquire a 20% stake in LATAM.

Southwest Airlines (LUV) announced that its new service between Sacramento and Honolulu would begin on November 10—two months early.

Southwest Airlines (LUV) stock, which has been impacted by labor disputes and Boeing’s (BA) 737 MAX crisis, has managed to rebound.

Bank of America (BAC) analyst Andrew Didora has become more selective on airline stocks. He upgraded Southwest Airlines (LUV).

One of 2018’s top airlines, United Airlines stock has struggled to gain altitude in 2019. UAL has returned ~9% YTD, lagging the broader market.

A sudden increase in the fuel cost due to the Saudi oil attack could have a massive impact on airlines’ profitability in upcoming quarters.

The year so far hasn’t gone well for airline stocks, as the majority have underperformed the broader markets. The US Global Jets ETF (JETS) is up just 1.2% year-to-date.

Spirit Airlines (SAVE) has been able to post over 50% YoY earnings growth for the last three quarters.

Airline stocks have had a rough ride in the first half of 2019, and the majority of them have underperformed the broader market.

The majority of the airline stocks have underperformed the broader market returns this year so far. The US Global Jets ETF (JETS), which invests in the cargo and passenger airlines, is up 9.6% YTD.

US airline stocks gained massively on June 13 after a JPMorgan Chase analyst said that the carriers are lifting fares more rapidly than anticipated. The analyst believes that in addition to the strong travel demand, US air carriers are also benefiting from a reduction in the supply of flights and seats due to the worldwide grounding of Boeing’s 737 MAX jets.

Airline stocks have had a rough ride this year so far, with most underperforming the broader market.

Buoyed by its strong first-quarter performance, Spirit Airlines (SAVE) has provided impressive guidance for the second quarter.

Spirit Airlines (SAVE) reported robust first-quarter results on April 24.

Spirit Airlines is scheduled to report its first-quarter results on April 25. The airline has an impressive record of beating earnings estimates.