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: ALK, LUV, RYAAY and HA's Earnings Beat
Read MoreHide Full Article
In the past week, sector heavyweights like Alaska Air Group (ALK - Free Report) and Southwest Airlines (LUV - Free Report) reported earnings for second-quarter 2023. The results were aided by upbeat air travel demand and declining fuel costs.
European carrier, Ryanair Holdings (RYAAY - Free Report) reported better-than-expected earnings per share and revenues owing to upbeat passenger volumes. Meanwhile, Hawaiian Holdings’ (HA - Free Report) loss narrowed in second-quarter 2023, also owing to upbeat air travel demand.
Recap of the Past Week’s Most Important Stories
1. Alaska Air Group reported second-quarter 2023 earnings per share of $3, which outpaced the Zacks Consensus Estimate of $2.70 and improved 37% year over year. Operating revenues of $2,838 million beat the Zacks Consensus Estimate of $2,780.5 million. The top line increased 7% year over year on the back of high passenger revenues. For the third quarter of 2023, Alaska Air expects capacity to improve 10-13% from the year-ago reported figure. Cost per available seat mile, excluding fuel and special items, is expected to be flat to down 2% year over year. Total revenues are anticipated to be flat to up 3% year over year. ALK forecasts economic fuel cost per gallon in the band of $2.70-$2.80.
Alaska Air currently carries a Zacks Rank #3 (Hold).
2. Southwest Airlines reported second-quarter 2023 earnings per share of $1.09, which outpaced the Zacks Consensus Estimate of $1.08 but declined 16.2% on a year-over-year basis. Revenues of $7,037 million beat the Zacks Consensus Estimate of $6,988.7 million and improved 4.6% year over year on solid leisure demand.
For third-quarter 2023, management expects available seat miles (a measure of capacity) to improve 12% from the year-ago reported figure. Economic fuel costs per gallon are expected to be between $2.55 and $2.65.
3. Ryanair Holdings reported first-quarter fiscal 2024 (ended Jun 30, 2023) earnings of $3.15 per share, which outpaced the Zacks Consensus Estimate of $2.25 and improved more than 100% year over year. Revenues of $3,972.6 million beat the Zacks Consensus Estimate of $3,587.3 million. Revenues improved year over year, driven by upbeat passenger volumes. Ryanair expects traffic of 183.5 million for fiscal 2024.
4. Hawaiian Holdings’ second-quarter 2022 loss (excluding 23 cents from non-recurring items) of 47 cents per share was narrower than the Zacks Consensus Estimate of a loss of 55 cents. HA incurred a loss of 90 cents in the year-ago quarter. The results were aided by strong air travel demand. The resumption of service between Honolulu and Fukuoka, Japan, in April, boosted passenger revenues, which increased 4.5% year over year. Driven by upbeat passenger revenues, the top line increased 2.2% to $706.9 million, edging past the Zacks Consensus Estimate of $705.1 million.
For the third quarter of 2023, available seat miles or ASM are projected to increase 4.5-7.5% from third-quarter 2022 levels. Total revenues per available seat miles are anticipated to decrease 2-5% from third-quarter 2022 levels. Costs per ASM (excluding fuel & non-recurring items) are expected to rise 7-10% from third-quarter 2022 numbers. Gallons of jet fuel consumed are expected to increase 8-11% from third-quarter 2022 level. Fuel price per gallon is expected to be $2.67 in third-quarter 2023. The effective tax rate is anticipated to be 21% in the third quarter.
ASMs are projected to increase in the 9.5-12.5% band for full-year 2023. Costs per ASM (excluding fuel & non-recurring items) for 2023 are expected to rise 1-5% from 2022 actuals. Fuel price per gallon is expected to be $2.70 in the current year. Gallons of jet fuel consumed are expected to increase 12.5-15.5% from the 2022 level.
The following table shows the price movement of the major airline players over the past week and during the past six months. Image Source: Zacks Investment Research
The table above shows that most airline stocks traded in the red in the past week. The NYSE ARCA Airline Index declined 6.5% over the period to $72.36. Over the course of the past six months, the sector tracker has surged 14.6%.
What's Next in the Airline Space?
Investors are awaiting the second-quarter 2023 earnings report of Allegiant Travel Company (ALGT - Free Report) , scheduled to be released on Aug 2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Airline Stock Roundup: ALK, LUV, RYAAY and HA's Earnings Beat
In the past week, sector heavyweights like Alaska Air Group (ALK - Free Report) and Southwest Airlines (LUV - Free Report) reported earnings for second-quarter 2023. The results were aided by upbeat air travel demand and declining fuel costs.
European carrier, Ryanair Holdings (RYAAY - Free Report) reported better-than-expected earnings per share and revenues owing to upbeat passenger volumes. Meanwhile, Hawaiian Holdings’ (HA - Free Report) loss narrowed in second-quarter 2023, also owing to upbeat air travel demand.
Recap of the Past Week’s Most Important Stories
1. Alaska Air Group reported second-quarter 2023 earnings per share of $3, which outpaced the Zacks Consensus Estimate of $2.70 and improved 37% year over year. Operating revenues of $2,838 million beat the Zacks Consensus Estimate of $2,780.5 million. The top line increased 7% year over year on the back of high passenger revenues. For the third quarter of 2023, Alaska Air expects capacity to improve 10-13% from the year-ago reported figure. Cost per available seat mile, excluding fuel and special items, is expected to be flat to down 2% year over year. Total revenues are anticipated to be flat to up 3% year over year. ALK forecasts economic fuel cost per gallon in the band of $2.70-$2.80.
Alaska Air currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
2. Southwest Airlines reported second-quarter 2023 earnings per share of $1.09, which outpaced the Zacks Consensus Estimate of $1.08 but declined 16.2% on a year-over-year basis. Revenues of $7,037 million beat the Zacks Consensus Estimate of $6,988.7 million and improved 4.6% year over year on solid leisure demand.
For third-quarter 2023, management expects available seat miles (a measure of capacity) to improve 12% from the year-ago reported figure. Economic fuel costs per gallon are expected to be between $2.55 and $2.65.
3. Ryanair Holdings reported first-quarter fiscal 2024 (ended Jun 30, 2023) earnings of $3.15 per share, which outpaced the Zacks Consensus Estimate of $2.25 and improved more than 100% year over year. Revenues of $3,972.6 million beat the Zacks Consensus Estimate of $3,587.3 million. Revenues improved year over year, driven by upbeat passenger volumes. Ryanair expects traffic of 183.5 million for fiscal 2024.
4. Hawaiian Holdings’ second-quarter 2022 loss (excluding 23 cents from non-recurring items) of 47 cents per share was narrower than the Zacks Consensus Estimate of a loss of 55 cents. HA incurred a loss of 90 cents in the year-ago quarter. The results were aided by strong air travel demand. The resumption of service between Honolulu and Fukuoka, Japan, in April, boosted passenger revenues, which increased 4.5% year over year. Driven by upbeat passenger revenues, the top line increased 2.2% to $706.9 million, edging past the Zacks Consensus Estimate of $705.1 million.
For the third quarter of 2023, available seat miles or ASM are projected to increase 4.5-7.5% from third-quarter 2022 levels. Total revenues per available seat miles are anticipated to decrease 2-5% from third-quarter 2022 levels. Costs per ASM (excluding fuel & non-recurring items) are expected to rise 7-10% from third-quarter 2022 numbers. Gallons of jet fuel consumed are expected to increase 8-11% from third-quarter 2022 level. Fuel price per gallon is expected to be $2.67 in third-quarter 2023. The effective tax rate is anticipated to be 21% in the third quarter.
ASMs are projected to increase in the 9.5-12.5% band for full-year 2023. Costs per ASM (excluding fuel & non-recurring items) for 2023 are expected to rise 1-5% from 2022 actuals. Fuel price per gallon is expected to be $2.70 in the current year. Gallons of jet fuel consumed are expected to increase 12.5-15.5% from the 2022 level.
More second-quarter 2023 earnings updates are available in the previous week’s write-up.
Price Performance
The following table shows the price movement of the major airline players over the past week and during the past six months.
Image Source: Zacks Investment Research
The table above shows that most airline stocks traded in the red in the past week. The NYSE ARCA Airline Index declined 6.5% over the period to $72.36. Over the course of the past six months, the sector tracker has surged 14.6%.
What's Next in the Airline Space?
Investors are awaiting the second-quarter 2023 earnings report of Allegiant Travel Company (ALGT - Free Report) , scheduled to be released on Aug 2.