Airline Stock Roundup: DAL's Q2 Fuel Cost View Bearish, UAL & HA In Focus

Zacks Investment Research | Jun 12, 2018 10:16PM ET

Last week, Atlanta, GA-based airline behemoth Delta Air Lines, Inc. (NYSE:DAL) raised its projection for second-quarter fuel costs per gallon owing to the upsurge in oil prices. Moreover, the carrier trimmed its earnings per share view due to the same reason.

Along the same lines, Hawaiian Holdings, Inc.’s (NASDAQ:HA) wholly owned subsidiary, Hawaiian Airlines, raised its outlook for second-quarter jet fuel consumption and economic fuel cost per gallon.

On the traffic front, the likes of SkyWest, Inc. (NASDAQ:SKYW) and United Continental Holdings Inc.’s (NYSE:UAL) subsidiary, United Airlines, released their respective May traffic reports over the past five trading days.

Transportation - Airline Industry 5YR % Return

Southwest Airlines May Traffic Up, Load Factor Down ).

Price Performance

The following table shows the price movement of the major airline players over the past week and during the last six months.

The table above shows that most airline stocks traded in the red over the past week, although the gains were muted in nature. Consequently, the NYSE ARCA Airline Index appreciated marginally in the period. Over the course of the last six months, the sector tracker has lost more than 7% of its value mainly due to high fuel costs and other headwinds. Shares of Gol Linhas Aereas Inteligentes S.A. (NYSE:GOL) have declined the most (30.5%) in the period.

What's Next in the Airline Space?
We expect May traffic reports from the likes of Alaska Air Group, Inc. (NYSE:ALK) in the coming days.

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Written By: Zacks Investment Research

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