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: GOL Unveils 2023 View, RYAAY Boosts FY23 Outlook
Read MoreHide Full Article
In the past week, European carrier Ryanair Holdings (RYAAY - Free Report) lifted its profit after tax view for fiscal 2023 (ending Mar 31, 2023), owing to upbeat traffic in the Christmas season. Latin American carrier, Gol Linhas expects net revenues to be around R$20 billion for 2023, higher than the 2022 expectation of R$15.2 billion.
Delta Air Lines (DAL - Free Report) was also in the news when it announced free Wi-Fi service on quite a few of DAL’s domestic routes. JetBlue Airways (JBLU - Free Report) was also a newsmaker in the past week, courtesy of the decision to tweak its New York-to-London flight schedule.
Recap of the Latest Top Stories
1 For the fourth quarter of 2022, Gol Linhas anticipates the EBITDA margin to be approximately 20%, while it expects the EBIT margin to be 11%. GOL estimates the average fuel price per liter to be R$ 6.05. GOL anticipates a loss per share of $1.20 for the fourth quarter. The Zacks Consensus Estimate for the same is pegged at a loss of 2 cents per share. The unfavorable forecast is mainly due to high fuel costs. Fuel unit costs are anticipated to grow almost 42% year over year, backed by a 45% increase in the average jet fuel price, partially offset by a reduction of nearly 2% in fuel consumption per flight hour due to the higher number of 737-MAXs in the fleet. For 2023, GOL anticipates earnings of 20 cents per share. To meet the expected domestic air-travel demand of nearly 100 billion revenue passenger kilometers for 2023, GOL aims to operate 120 aircraft on average during the year. GOL, currently carrying a Zacks Rank #2 (Buy), anticipates to end 2023 with 53 Boeing MAX aircraft in its fleet. These Boeing MAX jets should boost productivity, reduce unit costs and lower carbon emissions.
2. Ryanair expects its third quarter of fiscal 2023 (ended Dec 31, 2022) performance to have been boosted by the surge in traffic witnessed during the peak Christmas/New Year periods. Riding on the stronger-than-expected passenger volumes, profit after tax in the third quarter is anticipated to be nearly €200 million. Detailed third-quarter results will be out on Jan 30. Riding on a strong Q3, profit after tax for fiscal 2023 is now expected to be in the €1.325 billion – €1.425 billion range (earlier guidance was in the €1 billion to €1.20 billion band).
RYAAY was also in the news recently regarding anenquiry by anti-trust authorities in Italy over allegations of price-fixing. That story was covered in the previous week’s write-up.
3. In a bid to make air-travel more attractive, Delta’s management announced that free Wi-Fi will be available on more than 500 DAL planes operating on its most popular routes from February. This facility is expected to be available on all DAL flights across the globe by 2024-end in partnership with T-Mobile.
4. JetBlue’s management has reportedly decided to add a new flight departing in the mornings from John F. Kennedy International Airport (JFK) to London Heathrow Airport from Mar 25. The new flight was added as JBLU got access to an additional pair of slots. JBLU has also decided to trim its schedule on the JFK - Gatwick Airport route. Only one flight will operate daily on the route from Mar 25, instead of the current two. The current daily schedule of three flights from JFK and London's two airports will remain unchanged.
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 green over the past week. The NYSE ARCA Airline Index increased 7.1% to $56.02 over the past week. Over the course of the past six months, the NYSE ARCA Airline Index declined 0.8%.
What's Next in the Airline Space?
For the airline space, Delta will kickstart the fourth-quarter 2022 earnings season on Jan 13. Upbeat air-travel demand is expected to have aided DAL’s fourth-quarter performance.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Airline Stock Roundup: GOL Unveils 2023 View, RYAAY Boosts FY23 Outlook
In the past week, European carrier Ryanair Holdings (RYAAY - Free Report) lifted its profit after tax view for fiscal 2023 (ending Mar 31, 2023), owing to upbeat traffic in the Christmas season. Latin American carrier, Gol Linhas expects net revenues to be around R$20 billion for 2023, higher than the 2022 expectation of R$15.2 billion.
Delta Air Lines (DAL - Free Report) was also in the news when it announced free Wi-Fi service on quite a few of DAL’s domestic routes. JetBlue Airways (JBLU - Free Report) was also a newsmaker in the past week, courtesy of the decision to tweak its New York-to-London flight schedule.
Recap of the Latest Top Stories
1 For the fourth quarter of 2022, Gol Linhas anticipates the EBITDA margin to be approximately 20%, while it expects the EBIT margin to be 11%. GOL estimates the average fuel price per liter to be R$ 6.05. GOL anticipates a loss per share of $1.20 for the fourth quarter. The Zacks Consensus Estimate for the same is pegged at a loss of 2 cents per share. The unfavorable forecast is mainly due to high fuel costs. Fuel unit costs are anticipated to grow almost 42% year over year, backed by a 45% increase in the average jet fuel price, partially offset by a reduction of nearly 2% in fuel consumption per flight hour due to the higher number of 737-MAXs in the fleet. For 2023, GOL anticipates earnings of 20 cents per share. To meet the expected domestic air-travel demand of nearly 100 billion revenue passenger kilometers for 2023, GOL aims to operate 120 aircraft on average during the year. GOL, currently carrying a Zacks Rank #2 (Buy), anticipates to end 2023 with 53 Boeing MAX aircraft in its fleet. These Boeing MAX jets should boost productivity, reduce unit costs and lower carbon emissions.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
2. Ryanair expects its third quarter of fiscal 2023 (ended Dec 31, 2022) performance to have been boosted by the surge in traffic witnessed during the peak Christmas/New Year periods. Riding on the stronger-than-expected passenger volumes, profit after tax in the third quarter is anticipated to be nearly €200 million. Detailed third-quarter results will be out on Jan 30. Riding on a strong Q3, profit after tax for fiscal 2023 is now expected to be in the €1.325 billion – €1.425 billion range (earlier guidance was in the €1 billion to €1.20 billion band).
RYAAY was also in the news recently regarding anenquiry by anti-trust authorities in Italy over allegations of price-fixing. That story was covered in the previous week’s write-up.
3. In a bid to make air-travel more attractive, Delta’s management announced that free Wi-Fi will be available on more than 500 DAL planes operating on its most popular routes from February. This facility is expected to be available on all DAL flights across the globe by 2024-end in partnership with T-Mobile.
4. JetBlue’s management has reportedly decided to add a new flight departing in the mornings from John F. Kennedy International Airport (JFK) to London Heathrow Airport from Mar 25. The new flight was added as JBLU got access to an additional pair of slots. JBLU has also decided to trim its schedule on the JFK - Gatwick Airport route. Only one flight will operate daily on the route from Mar 25, instead of the current two. The current daily schedule of three flights from JFK and London's two airports will remain unchanged.
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 green over the past week. The NYSE ARCA Airline Index increased 7.1% to $56.02 over the past week. Over the course of the past six months, the NYSE ARCA Airline Index declined 0.8%.
What's Next in the Airline Space?
For the airline space, Delta will kickstart the fourth-quarter 2022 earnings season on Jan 13. Upbeat air-travel demand is expected to have aided DAL’s fourth-quarter performance.