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.
Airline Stock Roundup: UAL, ALK & AAL Post Q4 Earnings, JBLU in Focus
Read MoreHide Full Article
In the past week, United Airlines (UAL - Free Report) , Alaska Air Group (ALK - Free Report) and American Airlines (AAL - Free Report) reported better-than-expected earnings per share and revenues for the fourth quarter of 2024. Results were aided by upbeat air travel demand and low fuel costs. A fourth-quarter 2024 earnings-related update was also covered in the previous week’s round-up.
Meanwhile, JetBlue Airways (JBLU - Free Report) became the first airline to use Venmo for flights. Venmo is a mobile payment app that allows users to send and receive money. An expansion-related update was also available from JBLU in the past week.
Recap of the Recent Most Important Stories
1. United Airlines reported fourth-quarter 2024 earnings (excluding 31 cents from non-recurring items) of $3.26, which surpassed the Zacks Consensus Estimate of $3.01. The bottom line increased 63% on a year-over-year basis. Operating revenues of $14.7 billion beat the Zacks Consensus Estimate of $14.4 billion. The top line increased 7.8% year over year, driven by a 6.9% rise in passenger revenues. For the first quarter of 2025, UAL expects adjusted EPS between 75 cents and $1.25. For 2025, the company expects adjusted EPS of $11.50-$13.50.
2. Alaska Air reported solid fourth-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and skyrocketed more than 100% on a year-over-year basis. The bottom line benefited from solid revenue growth, as well as cost and operational performance throughout the quarter and holiday travel periods. The inclusion of the performance of Hawaiian Airlines acquired in September 2024 also boosted ALK’s results.
3. American Airlines’ fourth-quarter 2024 earnings (excluding 2 cents from non-recurring items) of 86 cents per share beat the Zacks Consensus Estimate of 64 cents. In the year-ago quarter, AAL reported earnings of 29 cents per share. Operating revenues of $13.66 billion surpassed the Zacks Consensus Estimate of $13.42 billion and increased 4.6% year over year. AAL expects a loss per share of 20-40 cents in the first quarter of 2025.
4. In a move aimed at increasing the convenience of passengers, JetBlue has decided to accept Venmo online bookings. Venmo payment options are available on the airline’s website and will roll out on their mobile app shortly. The move is part of the low-cost carrier’s efforts to boost profits by improving service.
In a separate development, JetBlue launched flights from Manchester-Boston Regional Airport. The company’s daily, year-round service to Orlando International Airport and three times weekly, seasonal service to Southwest Florida International Airport in Fort Myers take off from Manchester. The direct flight between Manchester and Fort Lauderdale-Hollywood International Airport is being launched today, and it will operate four times weekly during winter.
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 NYSE ARCA Airline Index grew 2.2% to $73.22 over the past week, as most stocks in the table above traded in the green. Over the past six months, the NYSE ARCA Airline Index has risen 34.5%.
What’s Next in the Airline Space?
Fourth-quarter 2024 earnings results from many carriers are expected in the coming days. Passenger volumes are likely to have been high, aiding their performances in the fourth quarter of 2024. Labor costs are likely to have been high.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Airline Stock Roundup: UAL, ALK & AAL Post Q4 Earnings, JBLU in Focus
In the past week, United Airlines (UAL - Free Report) , Alaska Air Group (ALK - Free Report) and American Airlines (AAL - Free Report) reported better-than-expected earnings per share and revenues for the fourth quarter of 2024. Results were aided by upbeat air travel demand and low fuel costs. A fourth-quarter 2024 earnings-related update was also covered in the previous week’s round-up.
Meanwhile, JetBlue Airways (JBLU - Free Report) became the first airline to use Venmo for flights. Venmo is a mobile payment app that allows users to send and receive money. An expansion-related update was also available from JBLU in the past week.
Recap of the Recent Most Important Stories
1. United Airlines reported fourth-quarter 2024 earnings (excluding 31 cents from non-recurring items) of $3.26, which surpassed the Zacks Consensus Estimate of $3.01. The bottom line increased 63% on a year-over-year basis. Operating revenues of $14.7 billion beat the Zacks Consensus Estimate of $14.4 billion. The top line increased 7.8% year over year, driven by a 6.9% rise in passenger revenues. For the first quarter of 2025, UAL expects adjusted EPS between 75 cents and $1.25. For 2025, the company expects adjusted EPS of $11.50-$13.50.
UAL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
2. Alaska Air reported solid fourth-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and skyrocketed more than 100% on a year-over-year basis. The bottom line benefited from solid revenue growth, as well as cost and operational performance throughout the quarter and holiday travel periods. The inclusion of the performance of Hawaiian Airlines acquired in September 2024 also boosted ALK’s results.
3. American Airlines’ fourth-quarter 2024 earnings (excluding 2 cents from non-recurring items) of 86 cents per share beat the Zacks Consensus Estimate of 64 cents. In the year-ago quarter, AAL reported earnings of 29 cents per share. Operating revenues of $13.66 billion surpassed the Zacks Consensus Estimate of $13.42 billion and increased 4.6% year over year. AAL expects a loss per share of 20-40 cents in the first quarter of 2025.
4. In a move aimed at increasing the convenience of passengers, JetBlue has decided to accept Venmo online bookings. Venmo payment options are available on the airline’s website and will roll out on their mobile app shortly. The move is part of the low-cost carrier’s efforts to boost profits by improving service.
In a separate development, JetBlue launched flights from Manchester-Boston Regional Airport. The company’s daily, year-round service to Orlando International Airport and three times weekly, seasonal service to Southwest Florida International Airport in Fort Myers take off from Manchester. The direct flight between Manchester and Fort Lauderdale-Hollywood International Airport is being launched today, and it will operate four times weekly during winter.
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 grew 2.2% to $73.22 over the past week, as most stocks in the table above traded in the green. Over the past six months, the NYSE ARCA Airline Index has risen 34.5%.
What’s Next in the Airline Space?
Fourth-quarter 2024 earnings results from many carriers are expected in the coming days. Passenger volumes are likely to have been high, aiding their performances in the fourth quarter of 2024. Labor costs are likely to have been high.