We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: American Airlines Group, Southwest Airlines, Ryanair Holdings, Alaska Air Group and United Continental Holdings
Read MoreHide Full Article
For Immediate Release
Chicago, IL – Jan 04, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include American Airlines Group (AAL - Free Report) , Southwest Airlines (LUV - Free Report) , Ryanair Holdings (RYAAY - Free Report) , Alaska Air Group (ALK - Free Report) and United Continental Holdings (UAL - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Airline Stock Roundup: New Tax Law Bonuses at American, Southwest
The New Year brought favorable tidings to the employees of airline heavyweights, American Airlines Group and Southwest Airlines, as the carriers announced bonuses worth $1,000 per member, following the tax overhaul. Notably, the $1.5 trillion tax overhaul package signed into law by President Trump reduces corporate taxes from 35% to 21%.
European low-cost carrier, Ryanair Holdings, also grabbed headlines when it released impressive traffic data for December, 2017. The carrier is benefitting from low air fares and expects it to be even lower in the current year.
Meanwhile, issues related to passengers continued to haunt U.S. carriers. Alaska Airlines, the wholly-owned subsidiary of Alaska Air Group, was the latest sufferer in this regard when it was reportedly sued by the family of an elderly lady. The lady died last year following a fall in an escalator at the Portland Airport, Oregon.
1. Ryanair reported a 3% year over year rise in traffic to 9.3 million for December owing to cheap ticket prices. Another important metric, load factor (percentage of seats filled by passengers) improved 1% to 95% as traffic growth outpaced capacity expansion in the same month. In fact, low air fares helped the carrier record a 10% rise in 2017 traffic to 129 million.
2. The tax overhaul is expected to aid airlines significantly. Buoyed by the new tax laws, American Airlines and Southwest Airlines declared bonuses for their respective employees. American Airlines will pay the amount (totaling $130 million) to each of its employee, excluding officers, by Mar 31, 2018. Meanwhile, Southwest will distribute the cash bonus on Jan 8.
Apart from the huge drop in corporate tax rate, the fact that the new laws allow companies to deduct their capital expenditures from taxable income immediately has proved to be favorable for airlines as they will be able to invest toward capital expenditure considerably. As a result, their tax bills for the year would be lowered significantly due to higher deductions. This, in turn, will leave more cash in the hands of these companies to fund their capital expenditures, acquisitions and share repurchases, among others. In this regard, Southwest announced that it will invest significantly toward fleet modernization. In fact, this low-cost carrier converted options on 40 Boeing Max 8s to firm orders. The company also deferred orders for 23 737 Max 7 planes of Boeing until 2023/2024.
Following the tax overhaul, Southwest expects to record a non-cash credit in the range of $1 billion to $1.5 billion in the fourth quarter of 2017. Economic fuel cost per gallon is anticipated in the band of $2-$2.15 in the same quarter.
3. The family of a 75- year old lady, reportedly sued Alaska Airlines and the concerned wheelchair contractor following her death after being injured. Apparently, she arrived in Portland after holidaying in Maui. At the airport, she slipped down an escalator. The family has lodged a complaint pertaining to wrongful death against the concerned parties. Currently, Alaska Air Group carries a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
4. According to a Reuters report, El Al Airlines of Israel intends to operate non-stop flights (thrice a week) connecting Tel Aviv and San Francisco by Dec 31, 2018 as part of its efforts to expand in North America. The carrier will utilize Boeing 787 Dreamliner planes for flights on the route. This Israel-based carrier will compete with United Continental Holdings on the route, per the report.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: American Airlines Group, Southwest Airlines, Ryanair Holdings, Alaska Air Group and United Continental Holdings
For Immediate Release
Chicago, IL – Jan 04, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include American Airlines Group (AAL - Free Report) , Southwest Airlines (LUV - Free Report) , Ryanair Holdings (RYAAY - Free Report) , Alaska Air Group (ALK - Free Report) and United Continental Holdings (UAL - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday’s Analyst Blog:
Airline Stock Roundup: New Tax Law Bonuses at American, Southwest
The New Year brought favorable tidings to the employees of airline heavyweights, American Airlines Group and Southwest Airlines, as the carriers announced bonuses worth $1,000 per member, following the tax overhaul. Notably, the $1.5 trillion tax overhaul package signed into law by President Trump reduces corporate taxes from 35% to 21%.
European low-cost carrier, Ryanair Holdings, also grabbed headlines when it released impressive traffic data for December, 2017. The carrier is benefitting from low air fares and expects it to be even lower in the current year.
Meanwhile, issues related to passengers continued to haunt U.S. carriers. Alaska Airlines, the wholly-owned subsidiary of Alaska Air Group, was the latest sufferer in this regard when it was reportedly sued by the family of an elderly lady. The lady died last year following a fall in an escalator at the Portland Airport, Oregon.
Transportation - Airline Industry 5YR % Return
(Read the last Airline Stock Roundup for Dec 27, 2017).
Recap of the Past Week’s Most Important Stories
1. Ryanair reported a 3% year over year rise in traffic to 9.3 million for December owing to cheap ticket prices. Another important metric, load factor (percentage of seats filled by passengers) improved 1% to 95% as traffic growth outpaced capacity expansion in the same month. In fact, low air fares helped the carrier record a 10% rise in 2017 traffic to 129 million.
2. The tax overhaul is expected to aid airlines significantly. Buoyed by the new tax laws, American Airlines and Southwest Airlines declared bonuses for their respective employees. American Airlines will pay the amount (totaling $130 million) to each of its employee, excluding officers, by Mar 31, 2018. Meanwhile, Southwest will distribute the cash bonus on Jan 8.
Apart from the huge drop in corporate tax rate, the fact that the new laws allow companies to deduct their capital expenditures from taxable income immediately has proved to be favorable for airlines as they will be able to invest toward capital expenditure considerably. As a result, their tax bills for the year would be lowered significantly due to higher deductions. This, in turn, will leave more cash in the hands of these companies to fund their capital expenditures, acquisitions and share repurchases, among others. In this regard, Southwest announced that it will invest significantly toward fleet modernization. In fact, this low-cost carrier converted options on 40 Boeing Max 8s to firm orders. The company also deferred orders for 23 737 Max 7 planes of Boeing until 2023/2024.
Following the tax overhaul, Southwest expects to record a non-cash credit in the range of $1 billion to $1.5 billion in the fourth quarter of 2017. Economic fuel cost per gallon is anticipated in the band of $2-$2.15 in the same quarter.
3. The family of a 75- year old lady, reportedly sued Alaska Airlines and the concerned wheelchair contractor following her death after being injured. Apparently, she arrived in Portland after holidaying in Maui. At the airport, she slipped down an escalator. The family has lodged a complaint pertaining to wrongful death against the concerned parties. Currently, Alaska Air Group carries a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
4. According to a Reuters report, El Al Airlines of Israel intends to operate non-stop flights (thrice a week) connecting Tel Aviv and San Francisco by Dec 31, 2018 as part of its efforts to expand in North America. The carrier will utilize Boeing 787 Dreamliner planes for flights on the route. This Israel-based carrier will compete with United Continental Holdings on the route, per the report.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.