FeedPosted Nov 10th 2009 4:15PM by Tom Johansmeyer (RSS feed)
Filed under: Southwest Airlines (LUV), US Airways Group (LCC), UAL Corp (UAUA), JetBlue Airways (JBLU), Delta Air Lines (DAL)
For years, it's been evident that smaller airlines have had an operating advantage, particularly when they use less expensive airports. They've been able to post better numbers as a result, and in the current travel slump, they've outperformed the larger carriers. Well, they've also picked up a considerable amount of market share.
According to a report by USA Today, low cost carriers now have 30% of the market in the United States. Price-sensitive consumers are turning to cheaper alternatives, even if it means (for fliers with elite status) giving up the perks they've earned through years of customer loyalty.
Continue reading Low cost carriers own 30% of domestic airline biz, growing fast
Posted Oct 24th 2009 9:20AM by Trey Thoelcke (RSS feed)
Filed under: Earnings reports, Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), eBay (EBAY), Pfizer (PFE), Coca-Cola (KO), AT and T (T), Altria Group (MO), BB and T (BBT), Boeing Co (BA), duPont(E.I.)deNemours (DD), Hasbro Inc (HAS), AMR Corp (AMR), UAL Corp (UAUA), Wells Fargo (WFC)
Continue reading Earnings highlights: Boeing, Coca-Cola, eBay, Microsoft, Pfizer, UAL, Yahoo! ...
Posted Oct 21st 2009 10:00AM by Tom Johansmeyer (RSS feed)
Filed under: Earnings reports, UAL Corp (UAUA)

The skies are starting to look a little friendlier to
United Airlines (NASDAQ:
UAUA).
The airline reported a quarterly loss that was lower than expected. Third quarter traffic was off only 2.9%, but because United used discounts to fill seats, revenue fell 20.3% (to $4.43 billion). The key to a recovery will be getting passengers to shell out for more expensive seats. According to United's president, John Tague, "There's no opportunity here for a full revenue recovery until we get premium cabin pricing back." He doesn't know how long this is going to take, but does say that he's seen progress over the past few months.
Nonetheless, it's important not to confuse "not so bad" with "making money." UAL lost $57 million (39 cents a share) last quarter. If it hadn't had some good news on fuel hedges and accounting issues, the loss would have been 43 cents a share. Again, this is better than analysts polled by Thomson Reuters expected: they were forecasting a loss of 94 cents per share. And, the third quarter loss was much better than last year's $792 million for the third quarter.
But, it all comes down to the bottom line, and a loss is a loss is a loss.
Continue reading UAL has almost good news for third quarter
Posted Sep 25th 2009 4:08PM by Douglas McIntyre (RSS feed)
Filed under: After the bell, Major movement, Apple Inc (AAPL), Research in Motion (RIMM), AMR Corp (AMR), UAL Corp (UAUA), S and P 500, DJIA, NASDAQ

Bad housing numbers did not do much to hurt the market yesterday and good consumer sentiment figures did not help today. The Reuters/University of Michigan poll for late September yielded a figure of 73.5. That is the highest number since early in 2008. The data may mean that consumers believe the recession is over. Traders did not appear to be heartened, and a poor report on durable goods had the prevailing effect on trading all day. The Commerce Department said orders for goods expected to last at least three years fell 2.4%.
Here are the unofficial numbers:
DJIA: 9666.48 -40.96 (-0.42%)
NASDAQ: 2090.92 -16.69 (-0.79%)
S&P 500: 1044.44 -6.34 (-0.6%)
Continue reading Closing bell: No spark from consumer sentiment (RIMM, AAPL, UAUA, AMR)
Posted Sep 17th 2009 5:00PM by Tom Johansmeyer (RSS feed)
Filed under: Southwest Airlines (LUV), AMR Corp (AMR), UAL Corp (UAUA), Delta Air Lines (DAL)
United Airlines (NASDAQ: UAUA), US Airways (NYSE: LCC) and American Airlines (NYSE: AMR), according to an influential analyst, have run out of options. Jamie Baker of JPMorgan said in a July 20, 2009 report that these companies couldn't do anything to prevent a cash crisis. They only savior available to them would have to be an outside investor. To call the position grim would be optimistic. Unfortunately, it couldn't have come at a worse time.
As Baker was walking the bear into the airline industry, United was starting to celebrate its change in direction. The carrier has improved its on-time rate, according to a USA Today report, and its operations are coming around. Despite the fact that the airline industry has been brutalized by the global recession, the airline has made some progress. Through August, the company's share price doubled, and its ascent has continued in September. So, the company is locked in an ongoing struggle to manage its identity, cope with its past and shape how the world sees it today.
The operational "makeover" has resulted in a reduction of its fleet from 601 jets in 2000 to 386 as of the summer of 2009. In terms of passenger traffic, it's in the #4 spot in the United States – trailing Delta (NYSE: DAL), Southwest (NYSE: LUV) and American. With Q2 revenues off 25.2% year-over-year, however, drastic measures are still necessary.
Continue reading United's battle over its identity
Posted Jul 14th 2009 10:00AM by Jim Cramer (RSS feed)
Filed under: Earnings reports, Market matters, Amer Intl Group (AIG), AMR Corp (AMR), UAL Corp (UAUA), Delta Air Lines (DAL), Cramer on BloggingStocks
TheStreet.com's Jim Cramer says the diamonds in the rough don't get much press, but they're the real heroes in this market. The troubled airline industry. The troubled auto industry. Have they ever not been "troubled"? For as long as I have been in this business, these two industries have been in huge trouble. Yet somehow it is news that
United (NASDAQ:
UAUA) (
Cramer's Take),
AMR (NYSE:
AMR) (
Cramer's Take) and
Delta (NYSE:
DAL) (
Cramer's Take) are in trouble. Somehow we're still sweating the auto program -- and I, for one, thought Steve Rattner was doing a pretty good job and don't want to read into his resignation because too many times in my life I have seen the smear and know it for what it is.
I want to talk about the industries that aren't troubled. Last night
CSX (NYSE:
CSX) (
Cramer's Take) reported a hugely profitable quarter despite a big decline in revenues. At one point the rail industry was a hugely troubled industry and you used to worry about the companies swinging to big losses every downturn. Now CSX gets 6 inches of ink today and the deeply troubled airline industry gets reams.
Continue reading Cramer on BloggingStocks: The good stories are still worth mentioning
Posted Jun 30th 2009 8:00AM by Tom Johansmeyer (RSS feed)
Filed under: International markets, Industry, Competitive strategy, AMR Corp (AMR), Contl Airlines'B' (CAL), UAL Corp (UAUA), Delta Air Lines (DAL)
Continental Airlines (NYSE: CAL) is seeking immunity from antitrust laws to work more closely with United Airlines (NASDAQ: UAUA) and others on international routes. And, since airlines operate in a state of seemingly perpetual turmoil, what's the harm? According to the Justice Department: plenty.
The airline sought broad immunity as part of an effort to join Star Alliance, which includes US Airways, Lufthansa (OTC: DLAKY), and Air Canada -- along with United. Continental believes that it needs to join Star Alliance in order to remain competitive, especially with airlines that have this type of immunity already.
Continue reading Justice Department pushes back on Continental immunity request
Posted Jun 5th 2009 11:25AM by Eric Buscemi (RSS feed)
Filed under: Analyst reports, Analyst upgrades and downgrades, Diageo plc (DEO), Chipotle Mexican Grill'A' (CMG), NIKE, Inc'B' (NKE), duPont(E.I.)deNemours (DD), UAL Corp (UAUA), Analyst initiations
Analyst upgrades:
- Baird upgraded Nike (NYSE: NKE) to Outperform from Neutral on expectations the company will benefit from the drop in the U.S. dollar and continued solid trends in athletic footwear. The firm raised its target on shares to $69 from $61.
- Deutsche Bank upgraded Temple-Inland (NYSE: TIN) to Buy from Hold as it believes the company is well positioned for cyclical turnaround in the Paper/Building Products space. The firm raised its target on shares to $19 from $11.
- Goldman upgraded Diageo (NYSE: DEO) to Buy from Neutral to reflect the current valuation and the company's exposure to emerging markets.
- Deutsche Bank (NYSE: DB) was upgraded to Hold from Sell at ING Group.
- Banco Santander (NYSE: STD) was lifted to Buy from Hold at Deutsche Bank.
- Jackson Hewitt (NYSE: JTX) was upgraded at Oppenheimer to Outperform from Perform.
Continue reading Analyst upgrades, downgrades and initiations: NKE, DEO, CMG, UAL, DD, ERIC ...
Posted Jun 4th 2009 8:40AM by Paul Foster (RSS feed)
Filed under: AMR Corp (AMR), UAL Corp (UAUA), Options
AMR Corp (NYSE: AMR) closed at $5.20. WTI Crude oil is recently up 1.57% to $67.16 according to Bloomberg. AMR July and November option implied volatility of 94 is below its 26-week average of 115, according to Track Data, suggesting decreasing price movement.
UAL Corp (NASDAQ: UAUA) closed at $5.29. UAUA July option implied volatility is at 102, December is at 111; below its 26-week average of 128, according to Track Data, suggesting decreasing price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Posted Apr 15th 2009 3:20PM by Steven Mallas (RSS feed)
Filed under: Earnings reports, UAL Corp (UAUA), Delta Air Lines (DAL)
AMR Corp. (NYSE:
AMR), the parent of American Airlines, reported earnings for the
first quarter on Wednesday. Revenues decreased 15%, and on an adjusted basis, the company lost $1.30 per share. According to this
source, the market was calling for a loss of $1.62 per share. Since management was able to beat by such a wide margin, Wall Street decided to reward the stock by bidding it up over 20% (that's how the shares were trading at the time I started this article).
Airlines are still having a problem with the economy. Consumers aren't traveling as much, businesses are cutting back on sending executives across country. Indeed, I'm sure the summer months are going to see a lot of vacation plans being eliminated as people decide to stay closer to home.
Continue reading AMR beats in Q1, shares see a bid
Posted Mar 24th 2009 2:30PM by Mark Fightmaster (RSS feed)
Filed under: UAL Corp (UAUA), Delta Air Lines (DAL)

According to the
Associated Press, the International Air Transport Association (IATA) believes that world airlines will lose $4.7 billion this year. A loss of this size is more than world airlines saw following the September 11, 2001 terrorist attacks. The industry group attributes the losses to "the rapid deterioration of the global economic conditions."
This revision basically doubles the earlier forecast from December, causing the CEO of the IATA, Giovanni Bisignani, to note that "The state of the airline industry today is grim ... Demand has deteriorated much more rapidly with the economic slowdown than could have been anticipated even a few months ago." The IATA predicts revenues will drop by $62 billion to $467 billion, a 12% decline.
Continue reading Major losses in store for airlines
Posted Feb 25th 2009 8:56AM by Allan Halprin (RSS feed)
Filed under: Microsoft (MSFT), Yahoo! (YHOO), General Electric (GE), Citigroup Inc. (C), Johnson and Johnson (JNJ), JPMorgan Chase (JPM), Money and Finance Today, Abbott Laboratories (ABT), AFLAC Inc (AFL), American Express (AXP), Bristol-Myers Squibb (BMY), Consolidated Edison (ED), Verizon Communications (VZ), News Corp'B' (NWS), UAL Corp (UAUA), Lilly (Eli) (LLY)
Continue reading 5% dividends you can believe in, is your pension safe? & 9 optimistic people - Today in Money 2/25
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