What to Expect from Delta Air Lines
Delta Air Lines’ (DAL) operating revenue fell 3% in 2016 before gaining 3% in 9M17 (or the first nine months of 2017).
Transportation & Logistics
Market Realist has the latest news on transportation and logistics, from airlines to supply chain solutions.
How FedEx’s Performance Influenced Its Outlook
FedEx’s (FDX) revenue grew 6% and 20% in 2016 and 2017, respectively. The FedEx Ground, FedEx Freight, and FedEx Services segments drove the 2016 growth, offset by the FedEx Express segment.
FedEx Ground’s Revenues in Fiscal 2Q18: What’s behind the Growth?
FedEx Ground’s (FDX) revenues rose 11.5% to $4.9 billion in fiscal 2Q18, from $4.4 billion in fiscal 2Q17.
What Does Southwest Airlines’ Current Valuation Indicate?
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 for Southwest Airlines
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 […]
A Look at American Airlines’ Dividend Payouts
Only four airlines—Delta Air Lines (DAL), Southwest Airlines (LUV), American Airlines (AAL), and Alaska Air Group (ALK)—pay dividends to investors.
UPS Is Likely to Strengthen Its Wide Economic Moat
United Parcel Services (UPS US) earns a “wide economic moat” rating from Morningstar from efficient scale, cost advantage, and the network effect.
What Wall Street Analysts Recommend for JetBlue Airways
As of September 19, 2017, one analyst out of the 15 analysts tracking JetBlue Airways (JBLU) had a “strong buy” recommendation on the stock.
Could American Airlines’ Unit Revenues Decline in 2H17?
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American Airlines’ Traffic Growth Exceeds Its Capacity Growth
For August 2017, AAL’s international traffic increased 6.9% year-over-year. Year-to-date, its international traffic has increased 5.5% YoY.
American Airlines’ Capacity Outpaced Its Legacy Peers in August
American Airlines’ (AAL) capacity grew 3.2% year-over-year in August, significantly higher than its 0.4% year-over-year growth reported in the previous seven months.
Can Delta Continue to Be the Best Airline Dividend Payer?
Delta Air Lines (DAL) has an indicated dividend yield of 2.0%, the highest among the four airlines that pay dividends.
Why Investors Should Be Concerned about American Airlines’ Debt
AAL has paid little attention to its total debt, which rose from $20.8 billion at the end of 2015 to $24.3 billion at the end of 2016 and $24.5 billion at the end of 1Q17.
Inside Alaska Air’s Valuation: Cheap Enough?
Alaska Air Group (ALK) is now trading at 6.6x its forward EV-to-EBITDA ratio—one of the highest valuations in the industry.
Horizon Air’s Pilots Ratify Change in Agreement
Horizon Air pilots have ratified a change in their existing eight-year pilot contract that entitles both existing and new pilots to receive significant pay raises.
Inside Alaska Air’s Dividend Payout Prospects in 2017
There are only four airlines that currently pay dividends. This is due to the fact that airlines have struggled to stay profitable for a long time now.
Can United Continental Improve Its Margins in 2017?
United Continental’s (UAL) EBITDA is expected to fall 10% to $1.8 billion.
Will United Continental Meet Increased Capacity Growth Guidance?
At the start of the year, United announced its plan to grow its capacity by 0%–1%, in line with GDP growth expectations.
What Delta Air Lines’ Debt Position Means for Investors
During 1Q17, Delta Air Lines’ (DAL) debt rose by ~$2 billion at a blended interest rate of just 3.3%.
Inside American Express’s Global Merchant Services Segment
American Express’s (AXP) Global Merchant Services segment is expected to see a marginal increase in its net income in 2Q17.
Is LUV on Track to Achieve Its Unit Revenue Guidance?
Because Southwest Airlines’ (LUV) traffic growth lagged its capacity growth in three of the first five months of 2017, its utilization also fell in three of the five months.
Why American Airlines Improved Its Unit Revenue Guidance for 2Q17
AAL’s utilization rose 0.3% YoY (year-over-year) in February, then by 1.8% YoY in April and 0.2% YoY in May.
Will American Follow United Continental in High Capacity Growth?
For May 2017, American Airlines (AAL) reported a 2.3% YoY (year-over-year) growth in capacity—its highest growth so far in 2017.
Analyst Ratings for Delta Air Lines after Traffic Release
Only one analyst has upgraded Delta Air Lines (DAL) since it released its traffic data on Friday, June 2, 2017.
What Investors Should Know about JetBlue’s Debt
The airline industry is very capital-intensive, so airlines generally have huge debt numbers on their balance sheets.
American Airlines’ Valuation: What’s Priced In?
Currently, American Airlines (AAL) is valued at 6.6x its forward EV-to-EBITDA ratio (enterprise value to earnings before interest, tax, depreciation, and amortization).
Why American Airlines Has Higher Debt Compared to Its Peers
As opposed to most other airlines that have been reducing their debts, American Airlines’ (AAL) debt has risen, partly due to its focus on completing its integration with US Airways.
United Continental’s Debt: What You Need to Know
For 2016 overall, United Continental (UAL) has generated $5.5 billion in operating cash flow and $1.9 billion in free cash flow.
Can United Continental Improve Margins in 2017?
For 1Q17, analysts are now expecting United Continental’s (UAL) EBITDA to fall 39% to $0.81 billion.
What’s Priced into Delta’s Valuation?
Delta Air Lines (DAL) is currently valued at 5.3x its forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple.
United’s Increased Capacity Growth: Should Investors Worry?
Airlines have long been known as capital destroyers. In times of profitability (such as now), they increase capacity to an extent that can’t be filled.
Is Frontier Airlines’ Business Model Sustainable?
One of the major risks to Frontier Airlines is the fact that almost 45% of its flights originate from a single hub—Denver.
Frontier Airlines Cut Costs and Became Profitable
Frontier Airlines earned 42% of its revenue from ancillary fees or non-ticket revenue in 2016—a significant rise compared to 25% in 2015.
Balance Sheet Analysis of the Major Airline Carriers
In 4Q16, regional carrier Spirit Airlines (SAVE) had a leverage ratio of 0.96x, JetBlue Airways (JBLU) had a leverage ratio of 0.83x, and Alaska Air Group (ALK) had a leverage ratio of 0.36x.
Better LTL Pricing Drove FedEx’s 3Q17 Freight Revenue
The FedEx Freight segment revenues rose 3.1% from $1.4 billion in 3Q16 to $1.5 billion in fiscal 3Q17.
Airlines’ Passenger Yields Fall—What Does It Mean for Investors?
In 4Q16, Southwest Airlines’s (LUV) yields fell 4% year-over-year to 14.7 cents, followed by Alaska Air’s (ALK) 3.3% decline in yield to 13.4 cents.
Better SmartPost and Ground Yield Pushed Up FedEx Ground’s Revenue
The FedEx Ground segment’s revenues rose 6% from $4.4 billion in 3Q16 to $4.7 billion in fiscal 3Q17.
What Higher Capacity Means for Airlines’ Utilization
The load factor Airlines’ capacity utilization is measured using the passenger load factor, which is calculated by dividing traffic by capacity. Analyzing airlines’ load factors As discussed in the previous article, most airlines saw high capacity growth in January 2017. As a result, all airlines except JetBlue Airways witnessed a decline in their load factors. […]
Can Delta Air Lines Increase Its Dividend Payouts in 2017?
Delta Air Lines started paying dividends only in 2013, and it’s one of the few airlines that pay dividends.
Will Delta Air Lines’ Fuel Costs Keep Falling in 2017?
Until 3Q16, Delta Air Lines (DAL) had managed to keep its costs flat if not decreasing. However…
Will Delta Air Lines’ Strong Operational Performance Last?
Delta Air Lines (DAL) saw average traffic of about 50 million passenger miles for the quarter, a 0.8% year-over-year improvement
How Does United Continental Plan to Improve Margins?
United expects to add $800 million to profits by increasing seats from 105 per departure to 121 per departure in 2018.
Will United Continental’s Margins Improve in 2017?
For 4Q16, analysts are expecting United Continental’s (UAL) EBITDA to fall 26% to $1.4 billion.
Will American Airlines’s Unit Revenues Continue to Decline?
For November 2016, American Airlines’s (AAL) load factor fell 0.3% and year-to-date 2016, its load factor fell 1.3%.
American Airlines’s Traffic Growth Lags Capacity Growth
In November 2016, American Airlines’s (AAL) traffic fell 0.2% year-over-year, slightly lagging its capacity growth in the same period. Year-to-date, AAL’s traffic has increased 0.3%.
Is American Airlines’s Capacity Growth Finally Slowing Down?
American Airlines’s (AAL) capacity grew 0.1% year-over-year in November 2016, similar to the growth seen during most of 2016. Year-to-date, AAL’s capacity has grown 1.9%.
Capacity Growth: Is Alaska Air Group Reducing the Pace?
For November 2016, Alaska Air Group’s capacity rose 2.8% YoY (year-over-year). It’s the slowest growth in any month in 2016.
Southwest Airlines: Slowing Capacity Growth in November
For November 2016, Southwest Airlines’ (LUV) capacity grew 4.9% YoY (year-over-year). It’s slower than 5.4% YoY growth the previous month.
Demographics Driving Conservative Investment? Bernstein Says No
After stating that the market isn’t in a low return environment, Richard Bernstein moved on to discuss the reasons cited by many for conservative asset allocation.
Could JetBlue’s Valuation Change after 3Q16?
Currently, JetBlue Airways (JBLU) is valued at 4x its forward EV/EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple.