United Continental Holdings Inc
Latest United Continental Holdings Inc News and Updates
What Stocks Were Shorted on September 10, 2001, Before 9/11?
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.
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.
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.
What Should Airline Industry Investors Look Out for in 2016?
Growing capacity is necessary for revenue growth. However, capacity expansion that exceeds demand growth can lead to declining utilization.
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.
Analysts See Strong Double-Digit Growth in United Airlines Stock
United Airlines (UAL) stock could be an intriguing choice for investors, according to Wall Street analysts.
Can Delta Air Lines Continue to Reduce Its Debt in 2016?
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.
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.
Why Airlines Got off to a Bad Start in 2016
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.
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.
Could Pilot Strikes Become a Major Issue for the Airlines?
In mid-September 2016, the Hawaiian Airlines pilot union opened a strike operations center to operate in the event of a strike.
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.
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.
Boeing Stock Falls after Comments by Delta’s CEO
Delta Air Lines (DAL) reported its earnings on October 14, 2015. The earnings call caused greater movement in one of Delta’s key vendors—Boeing (BA).
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.
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.
What Are Leon Cooperman’s Top Holdings?
In Q3, billionaire investor Leon Cooperman’s top five holdings were Fiserv, Alphabet, United Continental, Chimera Investment, and Cigna.
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.
Why Most Analysts Still Recommend ‘Buys’ on American Airlines
According to Bloomberg’s consensus, out of the 14 analysts tracking American Airlines (AAL), 71.4% have “buy” recommendations.
Why Is Qatar Airways Interested in American Airlines?
In the last week of June 2017, Qatar Airways’ CEO, Akbar Al Baker, disclosed the carrier’s interest in buying a 10% stake worth $808 million in American Airlines through the open market.
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.
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%.
Alaska Air: Why Analysts Forecast Higher Revenue in Next 2 Years
For 2Q16, analysts are estimating 4.2% revenue growth for Alaska Air Group (ALK), which is slower than the 6.2% growth in 1Q16.
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.
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.
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.
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.
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.
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.
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.
Why Have Some Analysts Become Less Positive on American Airlines?
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.
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 […]
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.
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.
Can Boeing Deliver on Its New Guidance?
The Boeing Company updated its guidance for 2015. It expects revenues to end in the range of $95 billion–$97 billion by the end of 2015 compared to its previous outlook of $94.5 billion–$96.5 billion.
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.
Fornaro’s Turbulent Ride and Achievements at Spirit Airlines
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.
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.
Why Did Buffett Change His Investment Philosophy on Airlines?
Crude oil is trading below $50 per barrel, one of its lowest recent prices, and it is expected to take some time before it recovers, given the huge oversupply.
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.
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.
Wall Street Analysts’ Recommendations for Southwest Airlines
At present, 35.3% of the analysts tracking the Southwest Airlines (LUV) stock have “strong buy” ratings, another 35.3% have “buy” ratings, and 29.4% have “hold” ratings on the stock.
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.
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 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.
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.
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.
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.
Wall Street Analysts’ Recommendations for American Airlines
According to Reuters, of the 17 analysts tracking American Airlines (AAL), 23.5% (or four) have “strong buy” ratings on the stock.
Why Analysts Expect American Airlines’ Revenue to Decline in 2016
For 1Q16, analysts estimate American Airlines’ revenues to decline by 4% to $9.4 billion and then to slow to 2% and 0.5% in 2Q16 and 3Q16, respectively.
What’s Priced In to SAVE’ Stock ahead of Its 3Q16 Earnings?
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.
Why Delta Air Lines Stock Fell after Q4 Earnings
Delta Air Lines (DAL) reported its fourth quarter 2016 results on January 12, 2016. The airline’s revenue fell.
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.
Omega Advisors exits position in Qualcomm
Last month, Qualcomm announced 4Q14 and fiscal 2014 earnings that missed estimates. Its revenue for 4Q14 was $6.69 billion, missing analysts’ expectations by $330 million.
Fewer Analysts Recommend ‘Buys’ on American Airlines
Analysts’ “hold” ratings on American Airlines stock have risen significantly. Nine analysts, a total of 56.3%, now have “hold” ratings on the stock.
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.
Why Are Analysts Estimating Southwest Airlines Revenues Growth to Slow Down In 2016?
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 […]
Airline Stocks in Focus as US Airstrike Lifts Oil Prices
The US airline stocks are in focus as crude oil prices soar after the US assassinated a top Iranian military commander last Thursday night.
Why Is American Airlines Warren Buffett’s Top Pick?
Berkshire Hathaway’s (BRK.B) November 2016 13F filing attracted considerable interest for airline investors. The 13F revealed Warren Buffett’s new investments in the airline sector—a sector he had written off during the past decade.
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.
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.
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.
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.
How Has Southwest Airlines Stock Fared This Year?
Southwest Airlines (LUV) stock fell 0.66% on June 7, 2017, the day it released its traffic report. Since then, the stock has continued its downtrend and has fallen 1.9%.
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.”
Why Is Delta Air Lines’s Revenue Expected to Fall in 2016?
Analysts are estimating an ~4.5% decline in Delta Air Lines’s (DAL) revenue to $10.6 billion for 3Q16.
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.
United, Delta, American Airlines Remove Domestic Change Fees
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.
Delta: What to Expect from Its Q1 Earnings
Delta Air Lines (DAL) is scheduled to report its first-quarter earnings results on April 10.
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%.
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.
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.
Can Alaska Air Stock Continue Its Stellar Performance in 2016?
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.
Strong 3Q16 and Warren Buffett: Airlines Are Soaring Higher
Airline stocks have had a great run since 3Q16. In October and November, United Continental (UAL) rose the most at 31.4%, followed by Spirit Airlines (SAVE).
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.
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.
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.
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.
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.
Declining Crude Oil: A Double-Edged Sword for United Continental
United Continental saw $912 million in 4Q15 savings as its fuel bill fell by 36% compared to a year ago.