Airline Stock Roundup: LUV Trims Q3 Cost Guidance, RYAAY, DAL In Focus
Zacks Investment Research | Sep 24, 2019 10:58PM ET
In the past week, Southwest Airlines (NYSE:LUV) issued an upbeat guidance for third-quarter 2019 unit cost growth. According to this Dallas-based low-cost carrier, its prudent expense management and the shift of certain cost items from the third to the fourth quarter of 2019 were the primary reasons behind the trimmed cost guidance.
Ryanair Holdings (NASDAQ:RYAAY) also dominated the headlines following its CEO Michael O'Leary’s decision related to Boeing (NYSE:BA) 737 MAX jets in the company’s fleet. Per O'Leary, this European low-cost carrier might resume flying the currently grounded 737 MAX jets by late February or early March next year. Ryanair also stated that its UK-based cabin crew approved a four-year collective deal.
Meanwhile, Delta Air Lines’ (NYSE:DAL) steady initiatives for expanding its presence globally are commendable. The company intends to start operating additional flights between the United States and Europe next year. JetBlue Airways (NASDAQ:JBLU) took a significant step related to its fleet-modernization initiatives, with its new Airbus A321neo jet commencing passenger service officially.
(Read the last Airline Stock Roundup Delta to Introduce More Flights Connecting US & Europe ).
4. The entry of the first highly fuel-efficient (20% increase in fuel efficiency compared with the existing fleet) Airbus A321neo planes into scheduled service might enable JetBlue serve new markets as these planes boast a 500 nautical mile increase in range. The first flight was from New York’s John F. Kennedy International Airport (JFK) to Fort Lauderdale-Hollywood International Airport (FLL). The carrier stated that flights connecting New York JFK to Guayaquil, Ecuador, (scheduled to begin on Dec 5, 2019) and to Georgetown, Guyana, (scheduled to begin on Apr 2, 2020) will be operated by these new jets.
Notably, JetBlue placed orders for 85 such jets long back. However, deliveries of the same were delayed due to production issues at Airbus. The first of these planes, equipped with modern facilities like a brand-new cabin and new in-flight entertainment system, were delivered in late June this year. The A321neo has now started flying passengers after test flights were conducted for some time following delivery by Airbus. JetBlue had stated in July that it expects to receive five more such jets in 2019.
5 In a customer-friendly move, United Airlines (NASDAQ:UAL) has decided to introduce PlusPoints in a bid to usher in new upgrade benefits for its MileagePlus Premier members. The new system will be effective from Dec 4, 2019. The Chicago-based carrier aims to replace the existing Regional Premier Upgrades (RPU) and Global Premier Upgrades (GPU) with PlusPoints. Each RPU and GPU will be worth 20 and 40 PlusPoints, respectively.
Get The News You Want
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 almost all airline stocks traded in the red over the past week, resulting in the NYSE ARCA Airline Index declining 2.1% to $97.15. Over the course of six months, the same appreciated almost 3.6% despite double-digit losses at the likes of American Airlines (NASDAQ:AAL) and Spirit Airlines (NYSE:SAVE) .
What's Next in the Airline Space?
Stay tuned for usual news updates in the space.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.