Airline Stock Roundup: IT Glitch At AAL, ALK & CPA's May Traffic Reports In Focus
Zacks Investment Research | Jun 19, 2018 09:18PM ET
In the past week, American Airlines Group Inc. (NASDAQ:AAL) cancelled multiple flights due to a computer error at its subsidiary, PSA Airlines. Notably, PSA Airlines is responsible for operating around 12% of the daily flights at American Airlines. Needless to say, the cancellation of flights caused unwarranted harassments to its passengers.
Moreover, rumors of a new low-cost carrier being launched in the United States made headlines over the past five trading days. According to media reports, David Neeleman — the founder of JetBlue Airways Corporation (NASDAQ:JBLU) — has plans to launch Moxy Airways. Reportedly, this highly successful airline entrepreneur is targeting $100 million in funding (including from himself) for this new venture.
Also, Alaska Air Group, Inc. (NYSE:ALK) and Copa Holdings, S.A. (NYSE:CPA) unveiled their respective traffic reports for May in the past week. While load factor (% of seats filled by passengers) decreased at Alaska Air due to higher capacity growth, the metric improved at Copa Holdings as traffic growth outpaced capacity expansion. Meanwhile, low-cost carrier Spirit Airlines, Inc. (NYSE:SAVE) announced a major expansion of its network.
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