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In the past week, Delta Air Lines’ (DAL - Free Report) management announced that it aims to operate its largest-ever trans-Atlantic flight schedule ever in the summer of 2024. We believe the decision is a prudent one, in view of the fact that international air travel has come roaring back in the post-pandemic scenario. Air Canada (ACDVF - Free Report) was also in the news, courtesy of its efforts to modernize its fleet. It placed an order to Boeing (BA - Free Report) for 18 787-10 Dreamliner jets.
Joby Aviation (JOBY - Free Report) also grabbed headlines when it delivered the first electric air taxi to the U.S. Air Force. An expansion update from Alaska Air Group’s (ALK - Free Report) subsidiary, Alaska Airlines, was also available in the past week. aa
Recap of the Past Week’s Most Important Stories
1. DAL announced that nearly 260 weekly flights will operate from New York JFK to 29 destinations in Europe, Africa and the Middle East. As part of the schedule, DAL will launch its nonstop JFK-Naples service on May 23, 2024. The new route complements its existing service to Milan, Venice and Rome. On the same day, Delta will resume the Shannon, Ireland - JFK route, after a five-year COVID-19-induced hiatus. Another new trans-Atlantic service to be introduced from JFK next summer is a nonstop flight to Munich. The flight will operate thrice a week from Apr 9, 2024. The planned schedule also includes the resumption of the Atlanta- Zurich service.
Delta was also in the news recently when it increased its projection for third-quarter 2023 fuel price per gallon. That story was covered in detail in the previous week’s write-up.
2. Following Air Canada’s order to Boeing, the jets, on being delivered, would replace older, less efficient wide-body aircraft that are currently part of the Air Canada fleet. According to Boeing, the usage of 787-10 Dreamliner will reduce fuel emissions per seat by up to 25% than the aircraft it replaces. The current order for 18 Boeing 787-10 passenger aircraft implies that ACDVF will no longer take delivery of two factory-built 777-300 freighters. Air Canada said it decided to convert the previously announced order for freighters to 787s instead.
3. Joby’s aircraft is the first electric air taxi to be stationed on a U.S. military base and marks the first delivery of an electric air taxi in the United States. It is part of Joby’s $131 million AFWERX Agility Prime contract with the U.S. Air Force. The Agility Prime contract includes provisioning of up to nine aircraft to the U.S. Air Force and other federal agencies, reinforcing the U.S. government’s continued leadership in developing and adopting eVTOL technology, and ushering in a new era of electric aviation.
4. Alaska Airlines will launch a new, daily, nonstop service between San Diego and Atlanta, effective May 16, 2024. Following the expansion, the company will provide nonstop flights to 37 destinations from San Diego to cities across the Northwest, Northeast, California, Mexico, Florida and all four major islands in Hawaii. At present, ALK conducts flights to 36 nonstop destinations from San Diego.
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 almost all airline stocks traded in the red in the past week. As a result, the NYSE ARCA Airline Index declined 3.7% over the period to $53.84. Over the course of the past six months, the sector tracker has declined 2.5%.
What's Next in the Airline Space?
Stay tuned for the usual news updates in the space.
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Airline Stock Roundup: DAL's Trans-Atlantic Schedule, ACDVF's Fleet-Upgrade Efforts
In the past week, Delta Air Lines’ (DAL - Free Report) management announced that it aims to operate its largest-ever trans-Atlantic flight schedule ever in the summer of 2024. We believe the decision is a prudent one, in view of the fact that international air travel has come roaring back in the post-pandemic scenario. Air Canada (ACDVF - Free Report) was also in the news, courtesy of its efforts to modernize its fleet. It placed an order to Boeing (BA - Free Report) for 18 787-10 Dreamliner jets.
Joby Aviation (JOBY - Free Report) also grabbed headlines when it delivered the first electric air taxi to the U.S. Air Force. An expansion update from Alaska Air Group’s (ALK - Free Report) subsidiary, Alaska Airlines, was also available in the past week. aa
Recap of the Past Week’s Most Important Stories
1. DAL announced that nearly 260 weekly flights will operate from New York JFK to 29 destinations in Europe, Africa and the Middle East. As part of the schedule, DAL will launch its nonstop JFK-Naples service on May 23, 2024. The new route complements its existing service to Milan, Venice and Rome. On the same day, Delta will resume the Shannon, Ireland - JFK route, after a five-year COVID-19-induced hiatus. Another new trans-Atlantic service to be introduced from JFK next summer is a nonstop flight to Munich. The flight will operate thrice a week from Apr 9, 2024. The planned schedule also includes the resumption of the Atlanta- Zurich service.
Delta was also in the news recently when it increased its projection for third-quarter 2023 fuel price per gallon. That story was covered in detail in the previous week’s write-up.
DAL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Following Air Canada’s order to Boeing, the jets, on being delivered, would replace older, less efficient wide-body aircraft that are currently part of the Air Canada fleet. According to Boeing, the usage of 787-10 Dreamliner will reduce fuel emissions per seat by up to 25% than the aircraft it replaces. The current order for 18 Boeing 787-10 passenger aircraft implies that ACDVF will no longer take delivery of two factory-built 777-300 freighters. Air Canada said it decided to convert the previously announced order for freighters to 787s instead.
3. Joby’s aircraft is the first electric air taxi to be stationed on a U.S. military base and marks the first delivery of an electric air taxi in the United States. It is part of Joby’s $131 million AFWERX Agility Prime contract with the U.S. Air Force. The Agility Prime contract includes provisioning of up to nine aircraft to the U.S. Air Force and other federal agencies, reinforcing the U.S. government’s continued leadership in developing and adopting eVTOL technology, and ushering in a new era of electric aviation.
4. Alaska Airlines will launch a new, daily, nonstop service between San Diego and Atlanta, effective May 16, 2024. Following the expansion, the company will provide nonstop flights to 37 destinations from San Diego to cities across the Northwest, Northeast, California, Mexico, Florida and all four major islands in Hawaii. At present, ALK conducts flights to 36 nonstop destinations from San Diego.
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 almost all airline stocks traded in the red in the past week. As a result, the NYSE ARCA Airline Index declined 3.7% over the period to $53.84. Over the course of the past six months, the sector tracker has declined 2.5%.
What's Next in the Airline Space?
Stay tuned for the usual news updates in the space.