Thursday, July 3, 2014

Top Airline Stocks To Watch Right Now

TripAdvisor Inc. (TRIP) is chilling despite Pacific Crest Securities saying the stock is headed to $116. Analyst, Chad Bartley upgraded the online travel company to an "Outperform" rating" from "Sector Perform."

Although Bartley see upside of 16.5% as we type, shares of TRIP closed $0.73 higher on the day ��not much enthusiasm for the new opinion.

TripAdvisor operates as an online travel company. Its travel research platform aggregates reviews and opinions about destinations; accommodations, including hotels, B&Bs, specialty lodging, and vacation rentals; and restaurants and activities, as well as enables consumers to book hotels, vacation rentals, airline tickets, vacation packages, destination services, and cruises under its TripAdvisor brand name.

[Related -Futures Mixed Amid Jobless Claims Data, Earnings; Facebook, Inc. (FB) Soars]

Top 5 Defensive Companies To Own For 2015: Alaska Air Group Inc. (ALK)

Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.

Advisors' Opinion:
  • [By Ben Levisohn]

    American Airlines (AAL) has surged 35% this year. Alaska Air (ALK) is up 23%. Southwest Airlines (LUV) has risen 21%. Delta Air Lines (DAL) has advanced 18%. And United Continental (UAL) has gained a measly 9%. Can they keep flying high?

Top Airline Stocks To Watch Right Now: Delta Air Lines Inc (DAL)

Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.

Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.

In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.

Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.

The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.

SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.

The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.

The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.

The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.

Advisors' Opinion:
  • [By DAILYFINANCE]

    AP NEW YORK -- American Airlines and US Airways (LCC) have cleared the last major hurdle to merging, now that the Justice Department has agreed to the deal if they scale back their combined footprint in some major airports. But it will be several months -- if not years -- before passengers see any significant impact from a union that will create the world's biggest airline. Passengers with existing tickets on American or US Airways -- and members of both frequent flier programs -- shouldn't fret. No changes will come immediately. Since announcing the deal in February, the two airlines have been working behind the scenes to try and make the merger as seamless as possible. Following Tuesday's agreement with the Justice Department, the two airlines said they expect the deal to close in December. But that doesn't mean everything will happen overnight. When the deal does close, here's what passengers can expect: Airfares During the past five years, the airline industry has seen the combinations of Delta (DAL) with Northwest, United (UAL) with Continental and Southwest Airlines (LUV) with AirTran. The price of a domestic round-trip flight has climbed more than 15 percent since 2009, when adjusted for inflation, according to the Bureau of Transportation Statistics. The merger will give a combined American and US Airways Group Inc. the ability to increase fares. United, Delta and Southwest would be likely to follow. Although it could also pave the way for further expansion by discount airlines such as Spirit Airlines (SAVE) and Allegiant Travel (ALGT). Frequent Flier Miles Your miles will be safe. After the merger closes, the two airlines will likely combine the miles into one program and elite status from one airline will likely be honored on the other. That puts the occasional traveler closer to rewards. The merged carrier will continue American's participation in the OneWorld alliance, which was founded by American, British Airways, Cathay Pacific and Qant

  • [By Jake L'Ecuyer]

    Delta Air Lines (NYSE: DAL) shares were also up, gaining 4.92 percent to $36.67 after the company reported a rise in its first-quarter profit. Delta's quarterly profit gained to $213 million, or $0.25 per share, compared to a year-earlier profit of $7 million, or $0.01 per share.

  • [By Ben Levisohn]

    With airlines like United Continental (UAL), Delta Air Lines (DAL) and American Airlines (AAL) up more than 20% so far this year, it’s fair to ask: Can investors get any more bullish on the share?

Top Airline Stocks To Watch Right Now: Latam Airlines Group SA (LFL)

LAN Airlines S.A. (LAN), incorporated in 1983, is the international and domestic passenger airline in Latin America and the cargo operator in the region. As of February 9, 2012, LAN and its affiliates provided domestic and international passenger services in Chile, Peru, Ecuador, Argentina and Colombia and cargo operations through the use of belly space on its passenger flights and cargo freighter aircraft through its cargo airlines in Chile, Brazil, Colombia and Mexico. LAN and its affiliates offered passenger flights to 15 destinations in Chile, 59 destinations in other South American countries, 15 destinations in other Latin American countries and the Caribbean, five destinations in the United States, two destinations in Europe and four destinations in the South Pacific and, through various codeshare agreements, service to 25 additional destinations in North America, 16 additional destinations in Europe, 27 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia, as of February 9, 2012. LAN and its affiliates provide cargo service to all of their passenger destinations and to 20 additional destinations served only by freighter aircraft. LAN also offers other services, such as ground handling, courier, logistics and maintenance. LAN and its affiliates operated a fleet, with 135 passenger aircraft and 14 cargo aircraft as of December 31, 2011. On February 15, 2011, Lan Pax Group S.A., subsidiary of Lan Airlines S.A. acquired 100% of Colombian society AEROASIS S.A.

LAN is primarily involved in the transportation of passengers and cargo. Its operations are carried out principally by Lan Airlines and also by a number of different subsidiaries. As of February 28, 2011, in the passenger business the Company operated through six main airlines: Lan Airlines, Transporte Aereo S.A. (which does business under the name Lan Express), Lan Peru S.A. (Lan Peru), Aerolane Lineas Aereas Nacionales del Ecuador S.A. (Lan Ecuador), Lan Argentina S.A. (Lan ! Argentina, previously Aero 2000 S.A.) and the Aerovias de Integracion Regional, Aires S.A. (Aires). As of February 28, 2011, the Company held a 99.9% interest in Lan Express through direct and indirect interests, a 70.0% interest in Lan Peru through direct and indirect interests, a 71.9% indirect interest in Lan Ecuador, a 99.0% indirect interest in Lan Argentina and a 94.99% indirect interest in Aires (a Colombian entity which was acquired on November 26, 2010). Its cargo operations are carried out by a number of companies, including Lan Airlines and Lan Cargo. As of February 28, 2011, the Company held a 69.2% interest in Aero Transportes Mas de Carga S.A. de C.V. (MasAir), through direct and indirect participations, a 73.3% interest in ABSA through direct and indirect participations, and a 90.0% interest in LANCO through direct and indirect participations. In the cargo business, the Company markets itself primarily under the Lan Cargo brand. In addition to its air transportation activities, the Company provides a series of ancillary services. It offers handling services, courier services and logistics, small package and express door-to-door services through Lan Airlines and various subsidiaries.

Passenger Operations

As of February 28, 2011, the Company operated passenger airlines in Chile, Peru, Ecuador, Argentina and Colombia. As of February 28, 2011, our passenger operations were performed through airlines in Chile, Peru, Ecuador, Argentina and Colombia where we operate both domestic and international services. As of February 28, 2011, the Company�� network consisted of 15 destinations in Chile, 14 destinations in Peru, four destinations in Ecuador, 14 destinations in Argentina, 24 destinations in Colombia, 14 destinations in other Latin American countries and the Caribbean, five destinations in the United States, one destination in Canada, three destinations in Europe and four destinations in the South Pacific. Within Latin America, it has routes to and from Argentina, B! olivia, B! razil, Chile, Colombia, Cuba, the Dominican Republic, Ecuador, Mexico, Peru, Uruguay and Venezuela. The Company also flies to a variety of international destinations outside Latin America, including Auckland, Fort Lauderdale, Frankfurt, Los Angeles, Madrid, Miami, Mount Pleasant (Falkland Islands), New York, Toronto, Papeete (Tahiti), Paris, San Francisco, and Sydney. In addition, as of February 28, 2011, through its various code-share agreements, the Company offered service to 25 additional destinations in North America, 16 additional destinations in Europe, 25 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia. As of February 28, 2011, the Company operated scheduled international services from Chile, Peru, Ecuador and Argentina through Lan Airlines; Lan Express in Chile; Lan Peru in Peru; Lan Ecuador in Ecuador; Lan Argentina in Argentina and Aires in Colombia. Its international network combines the Company�� Chilean, Peruvian, Ecuadorian, Argentinean and Colombian affiliates. It provides long-haul services out of its four main hubs in Santiago, Lima, Guayaquil and Buenos Aires. It also provides regional services from Chile, Peru, Ecuador and Argentina.

Cargo Operations

The Company�� cargo business operates on the same network used by the passenger airlines business, which is supplemented by freighter-only operations. The Company carries cargo for a variety of customers, including other international air carriers, freight-forwarding companies, export oriented companies and individual consumers. As of February 28, 2011, the Company operated a fleet of 140 aircraft, comprised of 126 passenger aircraft and 14 cargo aircraft.

The Company competes with UPS, FedEx, Centurion, Transportes Aereos Mercantiles Panamericanos S.A., Polar Air, Cargolux, Lufthansa Cargo, Martinair and Air France-KLM.

Advisors' Opinion:
  • [By Monica Gerson]

    LATAM Airlines Group SA (NYSE: LFL) is expected to post its Q1 earnings at $0.20 per share on revenue of $3.42 billion.

    Gladstone Investment (NASDAQ: GAIN) is projected to post its Q4 earnings at $0.17 per share on revenue of $8.90 million.

  • [By Laura Brodbeck]

    Notable earnings releases expected on Monday include:

    LAN Chile S.A. (NYSE: LFL) is expected to report fourth quarter EPS of $0.24 on revenue of $3.50 billion, compared to last year�� EPS of $0.02 on revenue of $3.48 billion. JA Solar Holdings, Co. Ltd (NASDAQ: JASO) is expected to report EPS of $0.03 on revenue of $291.75 million, compared to last year�� loss of $2.65 per share on revenue of $268.09 million. Sterling Construction Company, Inc�(NASDAQ: STRL) is expected to report a fourth quarter loss of $1.47 per share on revenue of $153.07 million, compared to last year�� EPS of $0.18 on revenue of $158.09 million.

    Economics

Top Airline Stocks To Watch Right Now: Indonesia Transport & Infrastructure Tbk PT (IATA)

PT Indonesia Transport & Infrastructure Tbk, formerly PT Indonesia Air Transport Tbk, is an Indonesia-based air transport service provider. The Company provides air transportation, hiring and/or leasing aircrafts, repairs and maintenance of aircrafts and trading of aviation technical equipment and related spare parts. It also provides medical evacuation services, tourism and scheduled flight services to several routes in central and eastern Indonesia. The Company operates various types of fixed wing aircrafts and helicopters, such as EC 155 B1, AS 365 Dauphin N2 twin turbine helicopter, Beechcraft 1900D, ATR 42-300, ATR 42-500 and Fokker 50. Advisors' Opinion:
  • [By Shereen El Gazzar]

    The forecast, from the International Air Transport Association (IATA), sees the Middle East and the Asia-Pacific region with the strongest international passenger growth, with a compound average growth rate of 6.3% and 5.7% respectively.

Top Airline Stocks To Watch Right Now: ANA Holdings Inc (ALNPF)

ANA HOLDINGS INC., formerly All Nippon Airways Co., Ltd., is a Japan-based airline holding company. Its Air Transportation segment is engaged in the air transportation business, the provision of various services at airports, the provision of reservation services via telephone, the freight express business, and the maintenance of aircrafts in domestic and overseas markets. The Traveling segment plans and sells tour packages under the brand names ANA Hello Tour and ANA Sky Holiday, it also offers services to travelers at arrival areas and sells travel products and air tickets. The Others segment involves in the information communication, trading and merchandise business, building management, logistics and airplane fixture repair business, and hotel operation. On March 4 and March 5, 2013, it fully acquired all shares of one and two consolidated subsidiaries through stock swap, respectively, made them become wholly-owned subsidiaries. Advisors' Opinion:
  • [By Daniel Inman]

    In Tokyo, ANA Holdings (JP:9202) � (ALNPF) �declined 4.7% after the airline lowered its 2013 fiscal-year net profit forecast by 65% on higher fuel costs and slow service expansion because of delays in Boeing (BA) �787 Dreamliner deliveries.

Top Airline Stocks To Watch Right Now: AMR Corp (AAMRQ)

AMR Corporation (AMR), incorporated in October 1982, operates in the airline industry. The Company�� principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines, which do business as American Eagle - American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.

American, AMR Eagle and the AmericanConnection airline served more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American�� passenger fleet.

To improve access to each other�� markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, Air Tahiti Nui, Alaska Airlines, British Airways, Cape Air, Cathay Pacific, China Eastern Airl! ines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.

American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental companies, and other products and services companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.

The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.

Advisors' Opinion:
  • [By Adam Levine-Weinberg]

    United Continental (NYSE: UAL  ) and American Airlines (NASDAQOTH: AAMRQ  ) could be affected the most. The two carriers were already at the bottom of last year's Airline Quality Rating survey. Furthermore, both airlines have a strategy of building hubs in the top business markets. These cities ��such as New York, Chicago, and Los Angeles ��tend to have the most crowded airspace. As a result, these carriers are likely to have multiple hubs hit with significant delays on peak travel days, which could snarl operations across their systems. JetBlue Airways (NASDAQ: JBLU  ) could also see a disproportionate effect because its main base of operations is at New York's busy JFK Airport.

  • [By Reuters]

    Matt York/AP The U.S. Department of Justice, which is fighting a proposed merger of US Airways Group and American Airlines parent AMR Corp., asked a judge Tuesday to postpone a trial in the case, saying the federal government shutdown would prevent its staff from working. But a lawyer for the airlines said he expected the trial to determine if the government can stop the merger of US Airways and American Airlines to begin as scheduled in late November. "From what the judge said in there, and I think everybody heard, we're going to trial on Nov. 25," Richard Parker said after a pretrial hearing. "We are planning on a Nov. 25 trial date." Judge Colleen Kollar-Kotelly didn't mention a potential stay during the pretrial hearing Tuesday. Shares of US Airways (LCC) were up 3.5 percent at $19.63 in midday trading Tuesday, while AMR (AAMRQ) rose 9.5 percent to $4.50. The Justice Department had asked for the stay because of a government-wide shutdown that started Tuesday. "This is creating difficulties for the Department to perform the functions necessary to support its litigation efforts," the department said in a court filing. The Justice Department and several states sued Aug. 13 to stop the merger, saying the deal to create the world's biggest carrier would lead to higher fares and stifle competition. Parker said a settlement resolving the fight was still possible. "We are interested in a reasonable settlement in this case," he said. Any settlement would mean asset sales, which in turn would require approval from the judge overseeing American's emergence from bankruptcy. The airlines have defended the deal in court filings, saying it would create $500 million in savings to consumers annually by creating a stronger competitor to Delta Air Lines Inc and United Continental Holdings Inc. But the Justice Department has said the merger would be bad for consumers. Its complaint focused on Reagan National Airport, outside Washington, where the two carriers contr

  • [By Ben Levisohn]

    What a wild ride it’s been for AMR Corp. (AAMRQ) shareholders. The parent of American Airlines lost 45% on the day when the DoJ said it would try to block its merger with US Airways (LCC). Then it started rising as support for the deal grew and analysts predicted as much as a 75% chance that the AMR Corp. and US Airways merger would go through.

    Associated Press

    Call it 99%. Today the DoJ announced that it would approve the merger, although the combined airline would have to give up some gates at certain airports to promote competition.

    Cowen’s Helane Becker and Conor Cunningham call it “the merger than never should been blocked.” They write:

    Despite the divestitures, the companies maintained their synergy target of $1 Bn annually by 2015. We believe the company will achieve 25% to 35% of their target in 2014. We have always been skeptical of airline synergy targets but believe the company has significant earnings potential when a single operating certificate is achieved…

    We view the settlement as positive for both the group and more importantly US Airways. The $1.0 billion synergy target is unchanged from prior guidance, despite slot divestitures at Washington National Airport and New York LaGuardia Airport, as well as gates at Boston Logan, Chicago O’Hare, Dallas Love Field, Los Angeles International and Miami
    International. We would be a buyer of US Airways on any weakness as momentum traders will probably look to sell despite having a positive outlook on profitability going forward.

    S&P Capital IQ’s Jim Corridore reiterated his Strong Buy on US Airways:

    The Department of Justice has issued a press release outlining terms of an agreed upon settlement that will allow the merger to go through. LCC will give up 104 slots at Reagan not reserved for smaller planes, 34 slots at LaGuardia, and gates and facilities at various other airports throughout the U.S. We think the

  • [By Adam Levine-Weinberg]

    United's high cost structure might be manageable if it could sustain a revenue premium against competitors like Delta and AMR (NASDAQOTH: AAMRQ  ) . However, United was the worst airline in the U.S. according to most customer service metrics in 2012, destroying customer goodwill. Unless the company can make a miraculous turnaround and justify higher fares than competitors, United's high cost structure will doom it to mediocrity in the long run.

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