Zacks Investment Research | Jan 07, 2020 08:46PM ET
In the past week, American Airlines (NASDAQ:AAL) , with 24 Boeing 737 MAX jets in its fleet, inked a deal with the manufacturer of the planes — The Boeing Company (NYSE:BA) — pertaining to compensation for losses due to the grounding of the planes since March 2019. American Airlines aims to share part of the compensation with its workers under the company’s profit-sharing scheme.
Alaska Air Group (NYSE:ALK) — the parent company of Alaska Airlines — also featured in the headlines when its long-serving chief financial officer (CFO) Brandon Pedersen announced his intention to retire on Mar 2, 2020. Pedersen was the company’s outside auditor for 11 years prior to joining it in 2003 as the vice president of finance and controller. He was promoted to his current position in May 2010.
Meanwhile, Latin American carrier, Azul (NYSE:AZUL) and European carrier Ryanair Holdings (NASDAQ:RYAAY) reported year-over-year increase in their respective traffic numbers for December mainly backed by strong demand for air travel. Furthermore, United Airlines (NASDAQ:UAL) announced that it will not operate flights connecting the Dayton International Airport and George Bush Intercontinental Airport in Houston, TX.
(Read the last Airline Stock Roundup .
Price Performance
The following table shows the price movement of the major airline players over the past week and during the past six months.
The table above shows that majority of the airline stocks traded in the red over the past week, due to the flaring up of oil prices following the U.S. drone strike near the Baghdad international airport that killed Iran’s top commander General Qassim Soleimani. Consequently, the NYSE ARCA Airline Index declined 3.2% over the past week. Over the course of six months, the sector tracker has decreased 2.1%.
What's Next in the Airline Space?
Delta is scheduled to release its fourth-quarter 2019 earnings report on Jan 14, thereby kickstarting the airlines earnings season.
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Zacks Investment Research
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