We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
The Zacks Analyst Blog Alaska Air, Delta Air, CrowdStrike and American Airlines
Read MoreHide Full Article
For Immediate Releases
Chicago, IL – September 19, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alaska Air Group (AL - Free Report) , Delta Air Lines (DAL - Free Report) , CrowdStrike (CRWD - Free Report) and American Airlines (AAL - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Airline Stock Roundup: ALK Bullish on Q3, AAL Labor Update
In the past week, Alaska Air Group gave a bullish outlook for the third quarter of 2024, mainly driven by the strong air-travel demand during summer. Delta Air Lines expects the CrowdStrike -induced global IT outage on July 19 to hurt its third-quarter 2024 earnings by 45 cents per share.
American Airlines received encouraging tidings on the labor front when the Association of Professional Flight Attendants announced that flight attendants of the airline have ratified a new five-year contract. Alaska Air’s $1.9 billion takeover of Hawaiian Holdings cleared the review of the Department of Transportation or DOT.
Recap of the Recent Most Important Stories
1. Driven by higher revenues during the summer and lower fuel costs, Alaska Air raised its third-quarter 2024 adjusted earnings per share guidance to the range of $2.15-$2.25 compared with the previous guidance of $1.40 to $1.60.
ALK now expects its third-quarter 2024 revenue per available seat mile (a key measure of unit revenues) to be up 2% on a year-over-year basis compared with the previous forecast of flat to positive. ALK now anticipates third-quarter 2024 economic fuel cost per gallon in the range of $2.60-$2.70 (prior view: $2.85-$2.95).
2. The global technology outage on July 19, caused by security software provider CrowdStrike’s software update, hit Delta Air Lines the hardest among the U.S. airlines. Following the faulty software update, DAL’s operations were crippled more than others due to its dependence on Microsoft systems for flight crew scheduling. As a result, approximately 7,000 DAL flights were canceled due to the outage, causing not only revenue loss but harassment to passengers.
Following the outage, DAL is now forecasting revenues to be flat or up no more than 1% for the quarter rather than up 2-4% as originally predicted. Capacity is now expected to increase approximately 4% (earlier guidance was for an increase in the 5-6% range). Non-fuel unit costs are now projected to increase 5.5% year over year (earlier guidance was for an increase in the 1-2% range). Full-year 2024 earnings per share are expected to be at or above the midpoint of the $6-$7 guided range (excluding the 45-cent impact from the IT outage on third-quarter earnings).
3. The ratification of the contract at AAL with flight attendants increased the value of the current agreement by $4.2 billion. With 95% of eligible flight attendants casting their votes, 87% of American Airlines flight attendants voted in favor of the contract, which takes effect from Oct. 1, 2024. American Airlines flight attendants become eligible for wage increases of up to 20.5% and substantial retroactive pay to compensate for the time spent negotiating.
AAL was also in the news recently due to its impending exit from the S&P 500 index. That news was covered in detail in the previous week’s write-up.
4. Alaska Air closed the deal of taking over Hawaiian Airlines after receiving clearance from the DOT. Receipt of clearance removes the final hurdle before the closure of the deal. DOT, however, stated that the airlines must maintain the value of their airline reward systems and preserve several key routes. Following the closure of the deal, Hawaiian Airlines serves as a wholly-owned subsidiary of ALK. Alaska Airhas formed an interim leadership team in Honolulu to oversee Hawaiian Airlines' operations until the two airlines are fully integrated.
What’s Next in the Airline Space?
Following the closure of Alaska Air’s merger deal with Hawaiian Airlines, investors are waiting for details regarding the integration process. With buoyant air-travel demand, updates on route additions by airlines to match the demand swell cannot be ruled out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
The Zacks Analyst Blog Alaska Air, Delta Air, CrowdStrike and American Airlines
For Immediate Releases
Chicago, IL – September 19, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alaska Air Group (AL - Free Report) , Delta Air Lines (DAL - Free Report) , CrowdStrike (CRWD - Free Report) and American Airlines (AAL - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Airline Stock Roundup: ALK Bullish on Q3, AAL Labor Update
In the past week, Alaska Air Group gave a bullish outlook for the third quarter of 2024, mainly driven by the strong air-travel demand during summer. Delta Air Lines expects the CrowdStrike -induced global IT outage on July 19 to hurt its third-quarter 2024 earnings by 45 cents per share.
American Airlines received encouraging tidings on the labor front when the Association of Professional Flight Attendants announced that flight attendants of the airline have ratified a new five-year contract. Alaska Air’s $1.9 billion takeover of Hawaiian Holdings cleared the review of the Department of Transportation or DOT.
Recap of the Recent Most Important Stories
1. Driven by higher revenues during the summer and lower fuel costs, Alaska Air raised its third-quarter 2024 adjusted earnings per share guidance to the range of $2.15-$2.25 compared with the previous guidance of $1.40 to $1.60.
ALK now expects its third-quarter 2024 revenue per available seat mile (a key measure of unit revenues) to be up 2% on a year-over-year basis compared with the previous forecast of flat to positive. ALK now anticipates third-quarter 2024 economic fuel cost per gallon in the range of $2.60-$2.70 (prior view: $2.85-$2.95).
ALK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
2. The global technology outage on July 19, caused by security software provider CrowdStrike’s software update, hit Delta Air Lines the hardest among the U.S. airlines. Following the faulty software update, DAL’s operations were crippled more than others due to its dependence on Microsoft systems for flight crew scheduling. As a result, approximately 7,000 DAL flights were canceled due to the outage, causing not only revenue loss but harassment to passengers.
Following the outage, DAL is now forecasting revenues to be flat or up no more than 1% for the quarter rather than up 2-4% as originally predicted. Capacity is now expected to increase approximately 4% (earlier guidance was for an increase in the 5-6% range). Non-fuel unit costs are now projected to increase 5.5% year over year (earlier guidance was for an increase in the 1-2% range). Full-year 2024 earnings per share are expected to be at or above the midpoint of the $6-$7 guided range (excluding the 45-cent impact from the IT outage on third-quarter earnings).
3. The ratification of the contract at AAL with flight attendants increased the value of the current agreement by $4.2 billion. With 95% of eligible flight attendants casting their votes, 87% of American Airlines flight attendants voted in favor of the contract, which takes effect from Oct. 1, 2024. American Airlines flight attendants become eligible for wage increases of up to 20.5% and substantial retroactive pay to compensate for the time spent negotiating.
AAL was also in the news recently due to its impending exit from the S&P 500 index. That news was covered in detail in the previous week’s write-up.
4. Alaska Air closed the deal of taking over Hawaiian Airlines after receiving clearance from the DOT. Receipt of clearance removes the final hurdle before the closure of the deal. DOT, however, stated that the airlines must maintain the value of their airline reward systems and preserve several key routes. Following the closure of the deal, Hawaiian Airlines serves as a wholly-owned subsidiary of ALK. Alaska Airhas formed an interim leadership team in Honolulu to oversee Hawaiian Airlines' operations until the two airlines are fully integrated.
What’s Next in the Airline Space?
Following the closure of Alaska Air’s merger deal with Hawaiian Airlines, investors are waiting for details regarding the integration process. With buoyant air-travel demand, updates on route additions by airlines to match the demand swell cannot be ruled out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.