All articles tagged with #airline stocks
United Airlines and Delta Air Lines saw their stocks drop nearly 2-2.5% after being sued by passengers claiming they were charged for window seats but received windowless ones, with the lawsuits seeking damages for over a million customers. The case highlights risks in airline reputation and legal issues, amid a year of economic and geopolitical pressures on the sector, despite strong stock performance and new premium offerings.
Spirit Airlines warned of potential ceasing operations due to financial struggles and low cash reserves, leading to a significant stock decline, while other airline stocks rallied on rising airfares and reduced competition, with industry-wide gains despite Spirit's challenges.
Delta Air Lines' stock surged nearly 10% after surpassing earnings expectations and restoring full-year guidance, signaling improved confidence in travel demand, especially in premium segments, and boosting broader airline stocks despite a turbulent year.
United Airlines' stock soared after beating first-quarter earnings estimates, reporting a loss of 38 cents per share compared to 59 cents the year prior, with a $200 million hit attributed to the Boeing 737 Max 9 grounding. The airline expects adjusted earnings to range from $3.75 to $4.25 per share for the second quarter and maintained its full-year earnings outlook of $9 to $11 per share. The stock rally also boosted rival Delta Air Lines and American Airlines, with Delta reporting an 80% earnings increase and American Airlines set to report its first-quarter results on April 25.
Aviation expert Mike Boyd warns that Boeing's 737 Max 9 fiasco, including the recent Alaska Airlines incident and subsequent grounding of planes, could have far-reaching impacts on the entire US economy, causing flight disruptions, delays in aircraft deliveries, and potential repercussions for companies and suppliers reliant on air transportation. Boyd predicts that airlines, including United, may seek alternative aircraft manufacturers, and criticizes Boeing's response to the situation. Boeing's stock has dropped 20% year-to-date, and the company has apologized for the disruption while outlining plans to resume flying its aircraft safely.
J.P. Morgan views the federal judge's decision to block JetBlue's acquisition of Spirit Airlines as a positive outcome for JetBlue, freeing it from a costly merger. JetBlue's stock rose while Spirit's plummeted following the ruling. The decision also prevents Frontier from acquiring Spirit, raising concerns about Spirit's near-term financial health. Analysts express doubts about Spirit's path to profitability and suggest potential bankruptcy, with implications for the airline industry's supply.
Delta Air Lines shares dropped 8% after revising its 2024 earnings forecast to $6 to $7 per share, down from the previous estimate of over $7 per share. This adjustment also impacted other major airlines, with United and American falling about 9% each, and Southwest dropping over 4%. Despite doubling its quarterly profit in 2023 and recovering almost 90% of pre-pandemic travel demand, Delta's stock is still down from its all-time high, trading at around $39 per share on Friday. CEO Ed Bastian expects strong growth in international travel and a positive turn in domestic unit revenues in the first part of the year.
Airline stocks, including Delta Airlines, fell in premarket trades after Delta lowered its 2024 earnings guidance, citing headwinds in the March quarter and a lower-than-expected earnings outlook. This led to a slide in shares of American Airlines, United Airlines, JetBlue Airways, and Alaska Air Group, as well as the U.S. Global Jets ETF. Delta also announced an order for 20 Airbus A350-1000 aircraft for its long-distance fleet.
Delta Air Lines reduces its profit forecast for the year due to supply chain challenges and economic uncertainties, causing its shares to drop by 6.2%. Despite strong holiday demand, the company now expects an adjusted per-share profit of $6 to $7 for 2024, down from its previous target of over $7. The airline is facing supply chain problems impacting aircraft deliveries and increased maintenance costs, with CEO Ed Bastian citing ongoing uncertainty in the supply chain, maintenance arena, and economic outlook. However, the company continues to see strong demand in all markets and has announced a deal with Airbus to purchase 20 A350-1000 widebody aircraft.
American Airlines and Spirit have both cut their guidance, causing airline stocks to fall once again. This adds to the ongoing turbulence in the sector.
Airline stocks experienced a drop after Alaska Air Group reported better-than-expected second-quarter earnings of $3 per share, surpassing analyst expectations of $2.71 per share. However, the airline's forecast for third-quarter revenue growth of 0 to 3% from the previous year was less optimistic, causing a decline in airline stocks.
Despite experiencing delays and cancellations, air travel reached record levels ahead of the holiday weekend, leading to frustration among passengers. Meanwhile, airline stocks continue to perform well.
Memorial Day air travel surpassed prepandemic levels, indicating strong demand for air travel heading into the summer season. This boosted airline stocks, although the market remains cautious about the sector's optimism.
Delta Air Lines is set to report its earnings for the first quarter amid concerns of a possible recession. The airline is doubling down on more profitable premium travel to defend against an economic downturn, with plans to offer 15,000 more premium seats a day across its network this year compared to the pre-pandemic period. Analysts expect Delta to swing to earnings of 29 cents per share, with revenue seen jumping nearly 36% to $12.675 billion. Delta's earnings report will kick off quarterly results for airlines and the overall travel sector.
American Airlines' lackluster Q1 outlook has caused airline stocks to tumble amid fears that travel demand, which has surged for the past year, could finally be slowing in the face of inflation and economic uncertainty. While American indicated that demand is still about as strong as it predicted in January, analysts have cautioned investors about a slowdown in travel bookings, particularly for travel within the United States. Despite rising costs for labor and jet fuel prices, airlines say demand for travel remains strong, which helps them charge more.