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The Zacks Analyst Blog Highlights: American Airlines, United Airlines, Delta Air Lines and Southwest Airlines
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For Immediate Release
Chicago, IL – June 8, 2020 – 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: American Airlines Group Inc. (AAL - Free Report) , United Airlines Holdings, Inc. (UAL - Free Report) , Delta Air Lines, Inc. (DAL - Free Report) and Southwest Airlines Co. (LUV - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Airline Stocks Take Off as Economy Reopens
The coronavirus pandemic has dealt a heavy blow to airline stocks. Top airliners have shed more than half of their peak value as flights remains grounded due to lockdowns put in place to curb the spread of the virus. Recently, airlines started showing signs of having risen from the lowest possible level and are attracting travelers as several states have begun easing the lockdown orders.
On Jun 4, American Airlines Group Inc. reported plans to boost flights by 74% in July, pointing that the coronavirus-led standstill in travel is over. Following the news, shares of American Airlines rose 41.3%, helping the S&P 500 Airlines Industry Index jump 12.8% on the same day.
The gains in American Airlines also pushed peers like United Airlines Holdings, Inc., Delta Air Lines, Inc. and Southwest Airlines Co. to close 16.2%, 13.7% and 5.1% higher, respectively.
Airlines Rally as Travel Resumes
With the economy reopening, there has been a significant increase in demand for air travel, leading airliners to add back some flights to their network. Several airlines companies also provided flights to help shippers transport their goods during the lockdown.
Major airlines are also witnessing an increase in flights to tourist spots like Florida, the Gulf Coast, Montana, Colorado, Utah and Wyoming as lockdowns eased.
United Airlines in mid-May said in a U.S. Securities and Exchange Commission filing that it expects to increase passenger capacity in July to 25% of its 2019 level, compared to 10% available capacity in May and June.
On Jun 4, American Airlines reported on average 110,330 passengers per day in the last week of May, which is more than thrice the average for April’s 32,154. Additionally, the company claims that its load factor or the average share of seats filled per plane climbed to 55% last month from 15% in April.
American Airlines’ senior vice president of network strategy, Vasu Raj, said that the company expects to operate about 4,000 flights during the busiest days of July compared to 2,300 in June. In fact, flights in July are expected to be 55% of the 2019 level, which is nearly double from 25% in June and 20% in May. The company also plans to reopen some of its airport lounges with limited capacity.
On the international front, American Airlines has restarted flights to London, Amsterdam, Paris and Frankfurt and some Caribbean and South American routes on Jun 4. The airline expects international passenger capacity to increase in July and reach nearly 20% of its year-ago level. American Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank(Strong Buy) stocks here.
As the coronavirus-led lockdowns are being gradually lifted and businesses are reopening, the airlines industry is expected to see a significant jump in bookings. In fact, domestic tourism can play a significant role in the improvement as uncertainties regarding coronavirus resurgence in several parts of the world are deterring international tour plans.
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: American Airlines, United Airlines, Delta Air Lines and Southwest Airlines
For Immediate Release
Chicago, IL – June 8, 2020 – 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: American Airlines Group Inc. (AAL - Free Report) , United Airlines Holdings, Inc. (UAL - Free Report) , Delta Air Lines, Inc. (DAL - Free Report) and Southwest Airlines Co. (LUV - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Airline Stocks Take Off as Economy Reopens
The coronavirus pandemic has dealt a heavy blow to airline stocks. Top airliners have shed more than half of their peak value as flights remains grounded due to lockdowns put in place to curb the spread of the virus. Recently, airlines started showing signs of having risen from the lowest possible level and are attracting travelers as several states have begun easing the lockdown orders.
On Jun 4, American Airlines Group Inc. reported plans to boost flights by 74% in July, pointing that the coronavirus-led standstill in travel is over. Following the news, shares of American Airlines rose 41.3%, helping the S&P 500 Airlines Industry Index jump 12.8% on the same day.
The gains in American Airlines also pushed peers like United Airlines Holdings, Inc., Delta Air Lines, Inc. and Southwest Airlines Co. to close 16.2%, 13.7% and 5.1% higher, respectively.
Airlines Rally as Travel Resumes
With the economy reopening, there has been a significant increase in demand for air travel, leading airliners to add back some flights to their network. Several airlines companies also provided flights to help shippers transport their goods during the lockdown.
Major airlines are also witnessing an increase in flights to tourist spots like Florida, the Gulf Coast, Montana, Colorado, Utah and Wyoming as lockdowns eased.
United Airlines in mid-May said in a U.S. Securities and Exchange Commission filing that it expects to increase passenger capacity in July to 25% of its 2019 level, compared to 10% available capacity in May and June.
On Jun 4, American Airlines reported on average 110,330 passengers per day in the last week of May, which is more than thrice the average for April’s 32,154. Additionally, the company claims that its load factor or the average share of seats filled per plane climbed to 55% last month from 15% in April.
American Airlines’ senior vice president of network strategy, Vasu Raj, said that the company expects to operate about 4,000 flights during the busiest days of July compared to 2,300 in June. In fact, flights in July are expected to be 55% of the 2019 level, which is nearly double from 25% in June and 20% in May. The company also plans to reopen some of its airport lounges with limited capacity.
On the international front, American Airlines has restarted flights to London, Amsterdam, Paris and Frankfurt and some Caribbean and South American routes on Jun 4. The airline expects international passenger capacity to increase in July and reach nearly 20% of its year-ago level. American Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank(Strong Buy) stocks here.
As the coronavirus-led lockdowns are being gradually lifted and businesses are reopening, the airlines industry is expected to see a significant jump in bookings. In fact, domestic tourism can play a significant role in the improvement as uncertainties regarding coronavirus resurgence in several parts of the world are deterring international tour plans.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
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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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.