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Airline Stock Roundup: AAL, LUV & Others Post Loss for Q4, UAL in Focus
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In the past week, American Airlines (AAL - Free Report) , Southwest Airlines (LUV - Free Report) , JetBlue Airways (JBLU - Free Report) and Ryanair Holdings (RYAAY - Free Report) reported losses for fourth-quarter 2020. Results were hurt by dismal passenger revenues as air travel remained suppressed. Notably, the likes of Hawaiian Holdings and AlaskaAirGroup (ALK - Free Report) too met a similar fate when they posted their respective fourth-quarter numbers as mentioned in the previous week’s write up.
Meanwhile, United Airlines (UAL - Free Report) reportedly warned roughly 14,000 employees that their jobs will be at risk with the expiry of the $15 billion worth second round of federal aid for the airlines on Mar 31, 2021. Consequently, labor unions are asking for more federal relief.
Recap of the Past Week’s Most Important Stories
1. American Airlines incurred a fourth-quarter 2020 loss (excluding 5 cents from non-recurring items) of $3.86 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $3.92. However, the company delivered earnings per share of $1.15 in the year-ago quarter. Operating revenues of $4,027 million slumped 64.4% year over year but surpassed the Zacks Consensus Estimate of $3,859.2 million. American Airlines expects system capacity for the March quarter to nosedive 45% from the figure reported in first-quarter 2019.
2. JetBlue incurred a fourth-quarter 2020 loss (excluding 19 cents from non-recurring items) of $1.53 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $1.72. However, operating revenues of $661 million plunged 67.4% year over year due to the 68.9% decrease in passenger revenues, which accounted for bulk (91.7%) of the top line. Revenues from other sources too declined 33.8% to $55 million. The top line, nonetheless, surpassed the Zacks Consensus Estimate of $617.8 million.
4. Ryanair, currently carrying a Zacks Rank# 4 (Sell), incurred a loss (excluding 8 cents from non-recurring items) of $1.62 per share in the third quarter of fiscal 2021 (ended Dec 31, 2020), narrower than the Zacks Consensus Estimate of a loss of $1.95. Results reflect coronavirus-induced disruptions in air-travel demand. Meanwhile, quarterly revenues of $406.9 million lagged the Zacks Consensus Estimate of $495 million. With air-travel demand remaining suppressed, Ryanair’s January traffic plunged 88% year over year. Load factor (% of seats filled by passengers) tanked to 69% in January 2021 from 92% a year ago.
5. In a customer-friendly move, Delta Air Lines (DAL - Free Report) and Italian carrier Alitalia are codesharing on COVID-tested flights operating between the United States and Italy. By producing a negative COVID-19 result prior to flying, passengers can avoid being in quarantine on their arrival at any of the two countries’ airports. Per the deal, passengers can book to fly on Alitalia’s dedicated COVID-tested flights from New York-JFK and Delta’s COVID-tested flights from Atlanta’s Hartsfield Jackson International airport. Both fly to Rome’s Fiumicino airport.
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 have traded in the red over the past week. Consequently, the NYSE ARCA Airline Index has dipped almost 1% over the past week to $82.97. Meanwhile, over the course of the past six months, the sector tracker has surged 66%
What's Next in the Airline Space?
Investors will look forward to the fourth-quarter 2020 earnings report of SkyWest (SKYW - Free Report) , scheduled to be out on Feb 4.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Airline Stock Roundup: AAL, LUV & Others Post Loss for Q4, UAL in Focus
In the past week, American Airlines (AAL - Free Report) , Southwest Airlines (LUV - Free Report) , JetBlue Airways (JBLU - Free Report) and Ryanair Holdings (RYAAY - Free Report) reported losses for fourth-quarter 2020. Results were hurt by dismal passenger revenues as air travel remained suppressed. Notably, the likes of Hawaiian Holdings and Alaska Air Group (ALK - Free Report) too met a similar fate when they posted their respective fourth-quarter numbers as mentioned in the previous week’s write up.
Meanwhile, United Airlines (UAL - Free Report) reportedly warned roughly 14,000 employees that their jobs will be at risk with the expiry of the $15 billion worth second round of federal aid for the airlines on Mar 31, 2021. Consequently, labor unions are asking for more federal relief.
Recap of the Past Week’s Most Important Stories
1. American Airlines incurred a fourth-quarter 2020 loss (excluding 5 cents from non-recurring items) of $3.86 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $3.92. However, the company delivered earnings per share of $1.15 in the year-ago quarter. Operating revenues of $4,027 million slumped 64.4% year over year but surpassed the Zacks Consensus Estimate of $3,859.2 million. American Airlines expects system capacity for the March quarter to nosedive 45% from the figure reported in first-quarter 2019.
2. JetBlue incurred a fourth-quarter 2020 loss (excluding 19 cents from non-recurring items) of $1.53 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $1.72. However, operating revenues of $661 million plunged 67.4% year over year due to the 68.9% decrease in passenger revenues, which accounted for bulk (91.7%) of the top line. Revenues from other sources too declined 33.8% to $55 million. The top line, nonetheless, surpassed the Zacks Consensus Estimate of $617.8 million.
3. Southwest Airlines incurred a loss of $1.29 per share (excluding 25 cents from non-recurring items) in the fourth quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $1.69. However, operating revenues of $2,013 million lagged the Zacks Consensus Estimate of $2,117.5 million. The top line declined 64.9% year over year as well with passenger revenues, accounting for bulk (82.6%) of the top line, dropping 68.7%. The company predicts average core cash burn to worsen in the first quarter of 2021 to approximately $17 million per day from nearly $12 million in fourth-quarter 2020.
4. Ryanair, currently carrying a Zacks Rank# 4 (Sell), incurred a loss (excluding 8 cents from non-recurring items) of $1.62 per share in the third quarter of fiscal 2021 (ended Dec 31, 2020), narrower than the Zacks Consensus Estimate of a loss of $1.95. Results reflect coronavirus-induced disruptions in air-travel demand. Meanwhile, quarterly revenues of $406.9 million lagged the Zacks Consensus Estimate of $495 million. With air-travel demand remaining suppressed, Ryanair’s January traffic plunged 88% year over year. Load factor (% of seats filled by passengers) tanked to 69% in January 2021 from 92% a year ago.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5. In a customer-friendly move, Delta Air Lines (DAL - Free Report) and Italian carrier Alitalia are codesharing on COVID-tested flights operating between the United States and Italy. By producing a negative COVID-19 result prior to flying, passengers can avoid being in quarantine on their arrival at any of the two countries’ airports. Per the deal, passengers can book to fly on Alitalia’s dedicated COVID-tested flights from New York-JFK and Delta’s COVID-tested flights from Atlanta’s Hartsfield Jackson International airport. Both fly to Rome’s Fiumicino airport.
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 have traded in the red over the past week. Consequently, the NYSE ARCA Airline Index has dipped almost 1% over the past week to $82.97. Meanwhile, over the course of the past six months, the sector tracker has surged 66%
What's Next in the Airline Space?
Investors will look forward to the fourth-quarter 2020 earnings report of SkyWest (SKYW - Free Report) , scheduled to be out on Feb 4.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>