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.
Airline Stock Roundup: Massive Flight Cancellations at LUV, UAL in Focus
Read MoreHide Full Article
In the past week, Southwest Airlines (LUV - Free Report) was the chief newsmaker, albeit for wrong reasons. The Dallas-based carrier was the worst affected U.S. airline in terms of flight cancellations due to unfavorable weather conditions during the Christmas holiday weekend. Meanwhile, United Airlines (UAL - Free Report) management decided to resume operations to Tokyo from Denver. This route was suspended when the pandemic was wreaking havoc.
Recap of the Latest Top Stories
1Southwest Airlines canceled 62% of its flights on Dec 27. What is worse is that LUV’s rivals have seen their operations being disrupted at a much lower scale. We note that LUV is the biggest carrier serving Buffalo, NY, the hardest-hit urban area by this natural catastrophe. Management has apologized to passengers for the harassment they had to face due to the disruption in operations. The disruption is likely to hit LUV’s fourth-quarter 2022 performance. Many market watchers believe that it will take around a week for LUV to recover from this fiasco of gigantic proportions.
LUV was also in the news recently when the union, International Association of Machinists and Aerospace Workers, covering its customer service employees, ratified a pay-related deal. That story was covered in the previous week’s write-up.
2. UAL will resume operating non-stop flights from Denver to Tokyo from Mar 4, 2023. Return flights from Tokyo’s Narita International Airport to Denver International Airport will start taking to the skies from Mar 5, 2023. Initially, the service will be available three times a week. Flights will depart from Denver to Tokyo on Monday, Thursday and Saturday. Return flights to Denver will take to the skies on Tuesday, Friday and Sunday. Flights on the route will operate daily from Mar 25, 2023. UAL currently sports a Zacks Rank #1 (Strong Buy).
3. Ryanair Holdings (RYAAY - Free Report) along with the likes of Wizz Air and easyJet, will reportedly face an inquiry by anti-trust authorities in Italy over allegations of price-fixing. The allegations surfaced for flights operated by the airlines in and out of Sicily. The enquiry is expected to be completed by 2023-end. A complaint of price-fixing lodged by consumer group Codacons has led to the investigation.
4. With COVID-19 cases on the rise in China, the United States has announced that passengers coming to the country from China, Hong Kong or Macau are required to show negative COVID-19 test reports. The requirement will come into force from Jan 5, 2023 and is applicable to passengers above two years. Per the new rule announced by the Biden administration, passengers traveling to the United States directly from China and also those who were in the country 10 days before their departure to the United States will have to take a COVID-19 test (no more than two days before travel) and furnish a negative report before boarding the flight.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that all airline stocks traded in the red over the past week. The NYSE ARCA Airline Index inched down 3.1% to $51.16 over the past week. Over the course of the past six months, the NYSE ARCA Airline Index declined 10.3%.
What's Next in the Airline Space?
Stay tuned for the usual updates in the space.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Airline Stock Roundup: Massive Flight Cancellations at LUV, UAL in Focus
In the past week, Southwest Airlines (LUV - Free Report) was the chief newsmaker, albeit for wrong reasons. The Dallas-based carrier was the worst affected U.S. airline in terms of flight cancellations due to unfavorable weather conditions during the Christmas holiday weekend. Meanwhile, United Airlines (UAL - Free Report) management decided to resume operations to Tokyo from Denver. This route was suspended when the pandemic was wreaking havoc.
Recap of the Latest Top Stories
1Southwest Airlines canceled 62% of its flights on Dec 27. What is worse is that LUV’s rivals have seen their operations being disrupted at a much lower scale. We note that LUV is the biggest carrier serving Buffalo, NY, the hardest-hit urban area by this natural catastrophe. Management has apologized to passengers for the harassment they had to face due to the disruption in operations. The disruption is likely to hit LUV’s fourth-quarter 2022 performance. Many market watchers believe that it will take around a week for LUV to recover from this fiasco of gigantic proportions.
LUV was also in the news recently when the union, International Association of Machinists and Aerospace Workers, covering its customer service employees, ratified a pay-related deal. That story was covered in the previous week’s write-up.
2. UAL will resume operating non-stop flights from Denver to Tokyo from Mar 4, 2023. Return flights from Tokyo’s Narita International Airport to Denver International Airport will start taking to the skies from Mar 5, 2023. Initially, the service will be available three times a week. Flights will depart from Denver to Tokyo on Monday, Thursday and Saturday. Return flights to Denver will take to the skies on Tuesday, Friday and Sunday. Flights on the route will operate daily from Mar 25, 2023. UAL currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here
3. Ryanair Holdings (RYAAY - Free Report) along with the likes of Wizz Air and easyJet, will reportedly face an inquiry by anti-trust authorities in Italy over allegations of price-fixing. The allegations surfaced for flights operated by the airlines in and out of Sicily. The enquiry is expected to be completed by 2023-end. A complaint of price-fixing lodged by consumer group Codacons has led to the investigation.
4. With COVID-19 cases on the rise in China, the United States has announced that passengers coming to the country from China, Hong Kong or Macau are required to show negative COVID-19 test reports. The requirement will come into force from Jan 5, 2023 and is applicable to passengers above two years. Per the new rule announced by the Biden administration, passengers traveling to the United States directly from China and also those who were in the country 10 days before their departure to the United States will have to take a COVID-19 test (no more than two days before travel) and furnish a negative report before boarding the flight.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that all airline stocks traded in the red over the past week. The NYSE ARCA Airline Index inched down 3.1% to $51.16 over the past week. Over the course of the past six months, the NYSE ARCA Airline Index declined 10.3%.
What's Next in the Airline Space?
Stay tuned for the usual updates in the space.