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In the past week, JetBlue Airways (JBLU - Free Report) announced that it would not go forward with its decision to buy Spirit Airlines (SAVE - Free Report) for $3.8 billion, citing anti-trust hurdles. SkyWest (SKYW - Free Report) signed a fleet-related deal with UnitedAirlines (UAL - Free Report) . SKYW aims to expand its fleet to meet the increasing demand for air travel. Ryanair Holdings (RYAAY - Free Report) was also in the news, courtesy of its upbeat traffic report for February.
Recap of the Most Important Stories
1. More than a month after a federal judge blocked JetBlue’s $3.8 billion acquisition of Spirit Airlines on antitrust grounds, JBLU decided to walk away from the deal. JBLU’s management believes that the legal and regulatory approvals necessary for the deal’s success “were unlikely to be met” by the dates specified. Following the termination, JetBlue will pay Spirit $69 million. Moreover, the termination resolves all outstanding matters pertaining to the deal.
2. SkyWest announced a new flying agreement with United Airlines, in line with its efforts to expand and modernize its fleet. Per the agreement, SKYW will fly 20 more E175s for UAL under a four-year contract. The 20 E175s will become a part of SKYW’s fleet during the course of the current year. This present agreement between the two airline companies is in addition to the previously announced agreement with UAL pertaining to the 19 SKYW-owned E175s.
3. The number of passengers transported on Ryanair flights was 11.1 million in February 2024, reflecting a 4.7% year-over-year increase. However, RYAAY’s traffic fell sequentially. The February figure compares unfavorably with the January 2024 figure of 12.5 million. The load factor (% of seats filled by passengers) was high at 92% in February 2024.
RYAAY was also in the news recently when it trimmed its fiscal 2025 traffic forecast due to the non-availability of planes. The story was covered in the previous week’s write-up.
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 airline stocks exhibited a mixed trend with respect to price over the past week. The NYSE ARCA Airline Index was almost flat at $65.01. Over the course of the past six months, the NYSE ARCA Airline Index has gained 5%.
What’s Next in the Airline Space?
Stay tuned for further news updates in the space.
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Airline Stock Roundup: JBLU Cancels Merger With SAVE, SKYW Inks Fleet-Related Deal
In the past week, JetBlue Airways (JBLU - Free Report) announced that it would not go forward with its decision to buy Spirit Airlines (SAVE - Free Report) for $3.8 billion, citing anti-trust hurdles. SkyWest (SKYW - Free Report) signed a fleet-related deal with United Airlines (UAL - Free Report) . SKYW aims to expand its fleet to meet the increasing demand for air travel. Ryanair Holdings (RYAAY - Free Report) was also in the news, courtesy of its upbeat traffic report for February.
Recap of the Most Important Stories
1. More than a month after a federal judge blocked JetBlue’s $3.8 billion acquisition of Spirit Airlines on antitrust grounds, JBLU decided to walk away from the deal. JBLU’s management believes that the legal and regulatory approvals necessary for the deal’s success “were unlikely to be met” by the dates specified. Following the termination, JetBlue will pay Spirit $69 million. Moreover, the termination resolves all outstanding matters pertaining to the deal.
2. SkyWest announced a new flying agreement with United Airlines, in line with its efforts to expand and modernize its fleet. Per the agreement, SKYW will fly 20 more E175s for UAL under a four-year contract. The 20 E175s will become a part of SKYW’s fleet during the course of the current year. This present agreement between the two airline companies is in addition to the previously announced agreement with UAL pertaining to the 19 SKYW-owned E175s.
SkyWest currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
3. The number of passengers transported on Ryanair flights was 11.1 million in February 2024, reflecting a 4.7% year-over-year increase. However, RYAAY’s traffic fell sequentially. The February figure compares unfavorably with the January 2024 figure of 12.5 million. The load factor (% of seats filled by passengers) was high at 92% in February 2024.
RYAAY was also in the news recently when it trimmed its fiscal 2025 traffic forecast due to the non-availability of planes. The story was covered in the previous week’s write-up.
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 airline stocks exhibited a mixed trend with respect to price over the past week. The NYSE ARCA Airline Index was almost flat at $65.01. Over the course of the past six months, the NYSE ARCA Airline Index has gained 5%.
What’s Next in the Airline Space?
Stay tuned for further news updates in the space.