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Airline Stock Roundup: LUV to Trim Workforce, CPA & SAVE in Focus
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In the past week, Southwest Airlines (LUV - Free Report) announced plans to reduce its workforce to match the lower capacity partly due to delivery delays from Boeing (BA - Free Report) . Driven by upbeat air-travel demand, Copa Holdings (CPA - Free Report) reported a year-over-year uptick in traffic for November.
Spirit Airlines , in a filing with the Securities and Exchange Commission, informed of its inability to file a quarterly earnings report by its due date without “unreasonable effort or expense.” The stock has plunged lately, with bankruptcy looming reportedly after talks regarding a merger with Frontier Airlines halted. Frontier Airlines is owned by Frontier Group (ULCC - Free Report) .
1 Southwest Airlines decided to offer buyouts to workers at 18 airports across the United States in a bid to match its workforce with the reduced capacity. Deliver delays due to production issues at Boeing are being cited as a reason for lower capacity. The airport workers being offered buyouts include ramp agents, customer service agents, cargo workers and operations agents. Apart from the voluntary separation packages, the Dallas-based carrier is also offering an "employee time off" program in January that allows the concerned workers to take unpaid time off and return to their jobs later.
2. Riding on the buoyant air travel demand scenario, total traffic (measured by revenue passenger miles) at Copa Holdings increased 6.5% year over year in October. Capacity (measured by available seat miles) increased 6.6%, highlighting the rosy scenario with respect to operational expansion. CPA's September load factor (percentage of seats filled with passengers) was a solid 87.4%, reflecting operational efficiency in managing increased capacity while sustaining passenger loads.
3. With its stock nosediving, Spirit Airlines, in a filing with the SEC, has informed that it cannot file the third-quarter 2024 earnings report . The ailing ultra-low-cost carrier has been dealt a blow by the halt in merger-related talks with Frontier. Spirit is still in talks with creditors to explore ways of improving liquidity.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
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The NYSE ARCA Airline Index decreased 4.5% to $68.6 in the past week, as most stocks in the table above traded in the red. Over the past six months, the NYSE ARCA Airline Index has risen 7.3%.
What’s Next in the Airline Space?
Investors would look forward to the third-quarter 2024 earnings report of Copa Holdings, scheduled for Nov. 20. On the non-earnings front, a few October traffic reports are expected in the coming days.
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Airline Stock Roundup: LUV to Trim Workforce, CPA & SAVE in Focus
In the past week, Southwest Airlines (LUV - Free Report) announced plans to reduce its workforce to match the lower capacity partly due to delivery delays from Boeing (BA - Free Report) . Driven by upbeat air-travel demand, Copa Holdings (CPA - Free Report) reported a year-over-year uptick in traffic for November.
Spirit Airlines , in a filing with the Securities and Exchange Commission, informed of its inability to file a quarterly earnings report by its due date without “unreasonable effort or expense.” The stock has plunged lately, with bankruptcy looming reportedly after talks regarding a merger with Frontier Airlines halted. Frontier Airlines is owned by Frontier Group (ULCC - Free Report) .
Read the Last Airline Roundup here
Recap of the Recent Most Important Stories
1 Southwest Airlines decided to offer buyouts to workers at 18 airports across the United States in a bid to match its workforce with the reduced capacity. Deliver delays due to production issues at Boeing are being cited as a reason for lower capacity. The airport workers being offered buyouts include ramp agents, customer service agents, cargo workers and operations agents. Apart from the voluntary separation packages, the Dallas-based carrier is also offering an "employee time off" program in January that allows the concerned workers to take unpaid time off and return to their jobs later.
LUV currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
2. Riding on the buoyant air travel demand scenario, total traffic (measured by revenue passenger miles) at Copa Holdings increased 6.5% year over year in October. Capacity (measured by available seat miles) increased 6.6%, highlighting the rosy scenario with respect to operational expansion. CPA's September load factor (percentage of seats filled with passengers) was a solid 87.4%, reflecting operational efficiency in managing increased capacity while sustaining passenger loads.
3. With its stock nosediving, Spirit Airlines, in a filing with the SEC, has informed that it cannot file the third-quarter 2024 earnings report . The ailing ultra-low-cost carrier has been dealt a blow by the halt in merger-related talks with Frontier. Spirit is still in talks with creditors to explore ways of improving liquidity.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
The NYSE ARCA Airline Index decreased 4.5% to $68.6 in the past week, as most stocks in the table above traded in the red. Over the past six months, the NYSE ARCA Airline Index has risen 7.3%.
What’s Next in the Airline Space?
Investors would look forward to the third-quarter 2024 earnings report of Copa Holdings, scheduled for Nov. 20. On the non-earnings front, a few October traffic reports are expected in the coming days.