Transportation & Logistics

For the third quarter of the year, JetBlue Airways’ (JBLU) operating expenses—excluding fuel and profit sharing—rose 3.1% to 7.86 cents.

For 3Q16, JetBlue Airways’ (JBLU) revenues stood at $1.73 billion—a 2.6% year-over-year increase compared to revenue of $1.69 billion in 3Q15.

JetBlue Airways (JBLU) saw average traffic of about 11.9 billion passenger miles for the quarter, a 7.6% year-over-year increase

A legitimate bull market In this series, we’ve taken a look at Richard Bernstein’s views on investors’ fear of an impending bear market. In Richard Bernstein Advisors’ October Insights newsletter, he rejects the notion that the current rise in US stocks (SPLV) (OEF) has been brought about only by the Fed’s easy monetary policy. In the […]

Analysts expect JetBlue Airways’ (JBLU) 3Q16 revenue to come in at $1.7 billion, a year-over-year rise of 2.2%.

All airline pilots have their eyes on Delta Air Lines’ (DAL) final agreement with its pilots. This is because Delta’s deal will set a precedent in the industry.

The airline industry is cyclical, which means that its business depends on the country’s economic growth. Most analysts have revised their GDP estimates downward, resulting in a consensus estimate of 2.9% YoY growth.

FedEx’s (FDX) Freight segment revenues rose 4% from $1.6 billion in fiscal 1Q16 to ~$1.7 billion in fiscal 1Q17.

On May 25, 2016, FedEx (FDX) completed the 4.4 billion euro acquisition of the Netherlands-based TNT Express NV.

In this part of the series, we’ll take a look at what Wall Street analysts are saying about US truckload carriers and how they’re rating the stocks.

General Electric’s 2016 free cash flows are expected to remain at $8.2 billion. This is mainly due to free cash flows of -$6.0 billion generated in 1H16.

Landstar System (LSTR) and Heartland Express (HTLD) have higher available cash on their balance sheets than total debt.

In 2015, Southwest Airlines’ prudent approach to capacity growth resulted in the better utilization of its capacity.

In July 2016, Southwest Airlines’ (LUV) traffic grew by 1.4% YoY, which was slightly lower than its capacity growth of 2.3% YoY.

The cyclical sector has a sizeable correlation with the different phases of the business cycle.

Alaska Air Group (ALK) does not give any future unit revenue guidance. However, we can expect the PRASM’s decline to continue.

For July 2016, Alaska Air Group’s (ALK) capacity increased by 9.6% year-over-year. After an average growth of 13% in 1Q16, growth slowed to 11% in 2Q16 and is slowing further in the third quarter.

As of July 22, 2016, JetBlue was valued at 3.8x its forward EV-to-EBITDA multiple, which is lower than its average valuation of 4.8x since September 2009.

Capacity growth Like other airlines, JetBlue Airways (JBLU) has taken advantage of falling crude oil prices to expand its existing fleet. JetBlue’s double-digit revenue growth has been fueled by double-digit growth in its capacity. Historically, JetBlue Airways has seen the highest capacity growth among the seven major airlines. Spirit Airlines (SAVE) has seen the highest growth, followed by Alaska […]

Among major truckload companies, in 1Q16, Werner Enterprises (WERN) declared the highest dividend growth, at $0.06 per share, which is a 20% YoY increase.

Revenues from American Airlines’ foreign operations make up about 30% of its total operating revenues. The airline has been consistently expanding its global footprint by adding new routes.

FedEx expects FedEx Freight revenues to rise in fiscal 2017.

For airlines such as American Airlines (AAL), we go a step further and use an EV+ Op. leases-to-EBITDAR ratio.

Some key strengths keep American Airlines ahead of its competitors. It’s the largest airline in fleet, capacity, and number of passengers. It also has a strong hold on key hubs.

American Airlines’ (AAL) capacity growth is one of the slowest in the industry. However, it has the highest capacity among its peers.

In this part of the series, we’ll look at the main services and categories that add to American Airlines’ (AAL) revenues. The major component of revenues still comes from airfares.

After the merger, American Airlines became the world’s leading airline in terms of fleet size, network, and finances. American Airlines stock has risen more than 270% since 2011.

Soon after US Airways declared its intention to merge with American Airlines, AAL started working on its weak points and restructuring costs.

The fleet of railroads includes railcars and locomotives. In this part, we’ll compare the average locomotive fleet age of US Class I railroads.

United Parcel Service, through 10,000 routes optimized with ORION, saves up to 1.5 million gallons of fuel per year.

United Parcel Service’s (UPS) Supply Chain and Freight segment includes forwarding and logistics services, UPS Freight, truckload freight brokerage, and financial services through UPS Capital.

UPS’s US Domestic Package segment consists of the time-sensitive delivery of letters, documents, and packages across the US. As the jewel in the company’s crown, this segment’s share averaged 61.1% of the total revenues in the last six years.

In 2015, United Parcel Service reported total revenues of $58.4 billion. The company’s primary competitor in the US is the Memphis-headquartered FedEx Corporation.

In 1988, United Parcel Service (UPS) bought its Italian partner, Alimondo, a move aimed at expansion in Europe. In the same year, UPS went on an acquisition spree.

In fiscal 2015, FDX increased its revenues by $1.9 billion. Its total revenue was a $47.4 billion for the year.

FedEx provides a portfolio of transportation, e-commerce, and business services through wholly owned subsidiaries.

In February 2016, the airline capacity of the eight major airlines exceeded their traffic growth by an average of 2%.

United Parcel Service (UPS) has been a consistent dividend payer for the last 20 years.

For 1Q16, Delta Air Lines (DAL) expects to see its operating margins improve to 18%–20%, backed by solid cost savings and lower fuel prices.

The airline industry has contributed to the globalization of the world economy. It connects buyers and sellers. It also transports goods across nations. It breaks the barrier of distance and time. The industry’s future looks bright. Travel expenditure in the U.S. is expected to grow by 4.3% in 2014 and 5.1% in 2015.