|Bid||31.27 x 1200|
|Ask||31.27 x 800|
|Day's range||29.22 - 32.50|
|52-week range||17.51 - 63.44|
|Beta (5Y monthly)||1.10|
|PE ratio (TTM)||4.45|
|Earnings date||09 Jul 2020 - 13 Jul 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||19 Feb 2020|
|1y target est||34.40|
Airline shares soared higher at the open on Thursday, propelled by a move by American Airlines Group (NASDAQ: AAL) to aggressively boost its flight schedule for July in response to growing demand for travel. Shares of American were up 11% as of 10 a.m. EDT, while shares of Spirit Airlines (NYSE: SAVE) were 13% higher.
With demand for air travel dropping sharply, carriers like American Airlines (AAL) and United Airlines (UAL) are looking to slash their personnel in a cost-cutting bid.
The IATA forecasts global airline passenger revenue decline of approximately $314 billion during 2020, raising concerns for U.S. airline companies.
(Bloomberg) -- The Trump administration is suspending passenger flights to the U.S. by Chinese airlines, saying it was retaliating after Beijing barred American carriers from re-entering China amid escalating tensions between the two nations.The order issued Wednesday takes effect June 16, although President Donald Trump could act sooner if he chooses, the Department of Transportation said in a statement.The move ratchets up tensions between the U.S. and China over trade, the coronavirus pandemic and the treatment of Hong Kong. China recently paused some agriculture imports after Trump threatened to eliminate the policy exemptions that allow America to treat Hong Kong differently than the mainland. A phase one trade deal between the nations is in jeopardy, and along with it billions of dollars in Boeing Co. aircraft sales.Beijing has prevented U.S. carriers from restarting service to China while four of its airlines have maintained flights to and from American airports this year as Covid-19 erupted, according to the Transportation Department. U.S. airlines had asked to resume service as early as June 1.“The Chinese government’s failure to approve their requests is a violation of our Air Transport Agreement,” the Transportation Department said in an emailed statement.The order stops short of an outright ban, allowing Chinese carriers to operate one flight to the U.S. for each flight that China grants to American carriers.U.S. airline shares surged amid a broad market rally and signs that travel demand is starting to rebound. A Standard & Poor’s index of major carriers jumped 7.6% at the close in New York to the highest since March 27. United Airlines Holdings Inc. led the gains with a 13% increase to $33.65, followed by Alaska Air Group Inc.’s 8.6% advance to $39.30.Boeing also surged 13% after a report from IATA, a trade group, indicated a recovery was underway for global airlines after demand for travel reached a nadir in April. Even so, the trade sparring adds to the risk and uncertainty for Boeing’s 737 Max and 787 Dreamliner, two aircraft that are critical to the planemaker’s recovery from the worst downturn in aviation history.The uncertainty over a phase one trade deal leaves in limbo a potential bonanza of plane orders that would help Boeing avoid deeper cuts to jetliner production. China’s airlines, which are recovering from the pandemic before their peers in the U.S. and Europe, could also provide a much-needed boost to the best-selling Max once a global grounding is lifted.“I could see Boeing becoming a pawn in this game,” said George Ferguson, an analyst with Bloomberg Intelligence. For the manufacturer, sales to China’s airlines are “a decent part of the backlog.”Chinese central planners, who control the country’s aircraft purchases, were traditionally careful to balance Boeing and Airbus SE orders to drive better bargains with the manufacturers, Ferguson noted. But while China was the largest customer of the 737 jetliner before Trump was elected, its airlines last ordered the Max in September 2016, according to Boeing’s website. The country hasn’t bought any planes from the U.S. manufacturer in two-and-a-half years.The Transportation Department order is aimed at Air China Ltd., China Eastern Airlines Corp., China Southern Airlines Co. and Xiamen Airlines Co. The news came after the market close in Shanghai and Hong Kong, which are major trading centers for publicly held Chinese airlines.While the Transportation Department’s order applied only to passenger flights, it isn’t clear whether the spat could eventually spill into the burgeoning air-freight operations between the U.S. and China.Couriers such as FedEx Corp. and United Parcel Service Inc. have had to ramp up operations in China to fulfill demand for medical supplies and other equipment. At the same time, several U.S. passenger airlines have begun flying cargo in empty passenger planes as they struggle for revenue during the unprecedented downturn triggered by the virus.The trade group that represents large U.S. carriers, Airlines for America, applauded the government’s action. “We believe DOT’s order will ensure fair and equal opportunity for passenger airlines with respect to service to and from China,” the group said in a statement.China’s embassy in Washington didn’t respond to emailed requests for comment.The Transportation Department on May 22 said China had violated a bilateral agreement allowing airline service between the two countries by failing to respond to requests by Delta Air Lines Inc. and United. The department accused China of unfairly blocking the carriers’ attempts to resume service in that country.The DOT on Wednesday accused the Civil Aviation Authority of China of being “unable to communicate definitively” when it will allow U.S. airlines to resume flights.Delta originally sought to resume China flights on June 1 but has had to delay because the Chinese government hasn’t approved its application. It’s currently seeking to restart flights on June 11 between Detroit and Shanghai and Seattle and Shanghai, both with stops in Seoul.“We support and appreciate the U.S. government’s action to enforce our rights and ensure fairness,” the Atlanta-based carrier said in a statement.American Airlines Group Inc.’s last China flights departed on Jan. 31. It’s currently set to resume flights to China in October. American had an average of six total daily nonstop flights to the cities of Hong Kong, Shanghai and Beijing from Dallas-Fort Worth and Los Angeles. Hong Kong isn’t covered in the DOT order.United also plans to resume three routes to China as early as this month, pending regulatory approval. That would be for service from San Francisco to Beijing and Shanghai, and between Newark, New Jersey, and Shanghai.“We look forward to resuming passenger service between the United States and China when the regulatory environment allows us to do so,” United said in a statement.In early January, there had been approximately 325 weekly scheduled flights between the two countries. That fell to only 20 per week by four Chinese carriers by mid-February, according to the DOT.Earlier this year China said in an order that airlines couldn’t operate more flights than they had scheduled on March 12. However, by that time, U.S. carriers weren’t flying there, making it impossible for them to resume service, the DOT charged.China’s order “effectively precludes U.S. carriers from reinstating scheduled passenger flights to and from China and operating to the full extent of their bilateral rights, while Chinese carriers are able to maintain scheduled passenger service to and from each foreign market served as of the baseline date, including the United States,” the DOT said in its order.(Updates with risk for Boeing in eighth paragraph. A previous version of this story was corrected to remove a photo of a China Airlines jet, which doesn’t represent an airline impacted by the U.S. action.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Department of Transportation on Wednesday moved to block Chinese airlines from flying into the United States, responding to China's silence on requests by Delta Air Lines (NYSE: DAL) and United Airlines Holdings (NASDAQ: UAL) to resume flights to China later this month. Delta, United, and American Airlines Group (NASDAQ: AAL) all suspended service to China in the early days of the COVID-19 pandemic, but as the worst of the pandemic begins to fade the airlines are taking tentative steps to rebuild their international networks.
Delta Air Lines (NYSE: DAL) said Wednesday that it will prevent travelers from selecting middle seats and cap passenger counts on flights through Sept. 30, its latest effort to reassure passengers it is safe to fly without a COVID-19 vaccine. Delta said it will sell only 50% of first class seats and between 60% and 75% of seats in other classes to help give passengers more space and to allow for some form of social distancing in flight. The airline is also restarting automatic upgrades for frequent travelers and has pledged to add flights on routes where the planes are nearing the caps.
The Chinese government’s denial of U.S. airline carriers’ requests to resume passenger flights to and from China was met with a retaliatory measure from the U.S. Department of Transportation (DOT) on Wednesday.
The stock market continued to gain ground on Wednesday morning, buoyed by hopes for a successful economic recovery along with some positive earnings reports from well-regarded tech companies. Market participants have been increasingly optimistic about the prospects for businesses to bounce back from the disruptions that the coronavirus pandemic has wrought over the past several months.
As part of Mileage Plan promotions, Alaska Air Group's (ALK) unit Alaska Airlines is extending a 50% bonus of elite qualifying miles for flights taken through the end of this year.
The airline spent billions securing international partners. Those valuations are falling along with Delta shares.
Delta (DAL) carries out a reshuffling process to align its staff size to future flying plans. To prevent furloughs in this regard, the carrier is working with the pilots' union.
What happened Airline shares took flight Monday after another weekend of positive data points suggesting travel demand is slowly returning and a positive write-up of the industry in Barron's. Spirit Airlines (NYSE: SAVE), one of the focuses of the Barron's article, gained 10% as of 11 a.
The airline updated its plans for additional summer routes, but still has more pilots than it will need looking ahead to 2021.
United Airlines'(UAL) job cuts are part of its cost-cutting measures. The carrier had earlier warned of a 30% reduction in its administrative staff.
Delta said this month that it would have more pilots than needed as it reduces its network and fleet due to a drop in demand from the COVID-19 pandemic, but is working to avoid involuntary furloughs. Following the results on Sunday of a so-called "surplus" bid in which employees were asked to petition available positions at one of Delta's seven U.S. pilot bases, the airline will be shifting around 7,000 pilots to different locations or aircraft types, while 2,327 have not been assigned to any category, Delta's Master Executive Council (MEC) of the Air Line Pilots Association (ALPA) said in a statement. Delta confirmed the release of the results of the bid "to better align our staffing with our future flying demand" and said it is "looking at all options to mitigate or minimize furloughs and will continue working with ALPA in the coming weeks to explore those options."
The Airline ETF has seen enormous investor interest of late, find out why.
(Bloomberg) -- U.S. airlines have yet to tap $29 billion in federal pandemic relief loans as they wait to see whether the reopening of the economy revives demand and diminishes the need for money that comes with government strings attached.Although the four largest U.S. passenger airlines have applied for the Treasury Department program, only American Airlines Group Inc. has said it intends to tap the pool of funds. Southwest Airlines Co., United Airlines Holdings and Delta Air Lines Inc. say they plan to wait until fall before deciding whether to take the money -- after a summer travel season that could see more people return to the skies.The wait-and-see approach illustrates how airlines are preparing for an uncertain future amid early signs of a recovery after Americans all but stopped flying in April due to the coronavirus and travel restrictions. A second wave of infections could make the situation worse.It also highlights how only a small portion of hundreds of billions of dollars available to the Treasury Department has actually been doled out to help companies.“That pool of money is designed as backstop financing and for those who can’t raise money elsewhere,” said Helane Becker, an analyst at Cowen & Co. in New York.U.S. airlines have separately raised billions in capital through methods including secured loans, bond offerings and equity sales, and Becker said that the federal loans are a last resort. The government loans would impose restrictions such as a cap on executive compensation and require carriers to offer equity or other financial stakes to the government in exchange for the aid.“The hope is that by September, the worst of the pandemic is behind us and people will be booking for travel in the fall and the holidays, and airlines won’t need to take the money,” Becker said.A Treasury Department spokeswoman declined to comment on the number of loan applications received and when the money would be distributed. The department has separately disbursed $25 billion from its payroll support program. Airlines accepting the funds, which are a mix of grants and loans, are required to refrain from layoffs until after Sept. 30.Airlines have pointed to signs that travel demand is beginning to perk up in recent weeks, fueling hopes that the stress on beleaguered carriers could begin to wane. Passengers taking flights over Memorial Day weekend, an early test of consumer confidence and the unofficial start of the summer travel season, reached levels unseen since late March. Airlines say bookings are outpacing cancellations, and airplanes that have been almost empty are starting to fill up.Carriers are far from out of the woods, however. The aviation industry’s recovery from the coronavirus outbreak will be long and slow, with global passenger numbers likely to stay below pre-pandemic levels through 2023, according to S&P Global Ratings, which warned of more rating downgrades for airports over the next few months.Although 321,776 people passed through security at U.S. airports on Thursday in one of the busiest days since late March, that’s still an 87% decline from the equivalent day last year, according to the U.S. Transportation Security Administration. Airlines have openly discussed the likely need to shed thousands of workers after a prohibition on job cuts tied to the payroll support program expires.On Thursday, for example, American Airlines announced plans to shed 30% of its management and support staff to align its operations with dramatic declines in travel.“While I don’t want to get into specifics, we continue to have very productive conversations with Treasury Department and its advisers,” American Airlines President Robert Isom said at an industry conference May 19. “Treasury has been nothing but fantastic to work with through these unprecedented times, and we remain very confident that we will move forward with this loan in a prudent and efficient manner.”Delta, SouthwestThe Treasury Department launched the loan program April 8, and has made no further announcements since it closed on April 17. The agency is weighing whether it will disburse the money in one or several tranches as the outlook for the industry’s recovery becomes clear, a person familiar with the matter said. The program may also evolve as Treasury Secretary Steven Mnuchin hasn’t settled on the details, the person said.Delta has applied for the additional Treasury loan “to hold our place in line,” Chief Financial Officer Paul Jacobson said at the same Wolfe Research conference. “We have until September to make a decision about that as well as other financing sources should we need them.”“We’ve applied for it,” Southwest Chief Executive Officer Gary Kelly said of the potential $2.8 billion loan at the carrier’s annual shareholder meeting May 21. “We’ve not committed to take that money and we have until September 30 to make that decision.”The airline loan program is yet another piece of the pandemic rescue funds enacted on March 27 -- when Congress and the White House were so panicked that Covid-19 would ravage the U.S. economy that they quickly came together -- that may not be working as designed.Virus RescueMnuchin has only used $37.5 billion out of a $454 billion fund to backstop central bank emergency lending, though $195 billion has been committed for use. A Main Street lending facility that Congress asked the Federal Reserve to launch to support small and medium-sized companies is still not operational even as businesses lay off workers, shutter and eye bankruptcy. The Paycheck Protection Program for smaller companies has been riddled with glitches, and now needs to be fixed to extend the relief.Mnuchin also hasn’t disbursed a $17 billion pot of money reserved for companies deemed critical to national security. The largest expected recipient, Boeing Co., got help from private investors. For the hundreds of thousands of other defense contractors in the Pentagon’s supply chain, Treasury’s criteria is too strict to qualify.The loan packages for airlines and companies critical to national security, if untapped, can be used to backstop additional lending by the Fed.“With a lot of these programs it turns out they’re not for everybody, said Ian Katz, an analyst at Capital Alpha Partners in Washington. “There’s a general feeling of anguish and pain as people are unemployed, underemployed and businesses shut down -- surely the government can do more for them.”Not a BailoutFederal loans for the airline industry, which Mnuchin has repeatedly said are not a “bailout,” come with strings attached that analysts say may be less attractive than private markets. Any company tapping the loan pool must assure the government that credit is “not reasonably available” elsewhere.United Airlines, for example, is eligible for a loan of as much as $4.5 billion and the company expects to issue the department warrants to purchase 14.2 million shares of the company’s common stock, CFO Gerald Laderman said in a May 1 earnings call.Savanthi Syth, an analyst at Raymond James, said the department’s terms are not excessive but are onerous enough for airlines to turn first to the private sector.“The test for whether airlines will need this will be how much demand comes back this summer,” she said. “If we see demand getting back to 50% levels of last year, they might not need to tap it.”The $2.2 trillion pandemic stimulus package that authorized the airline loans gives Treasury until the end of the year to disburse them.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
American Airlines' (AAL) job cut plans are part of its cost-cutting measures as it prepares to operate a smaller airline for the foreseeable future.
Major U.S. airlines are cutting worker hours and encouraging employees to take voluntary leave or early retirement.
After a brief rally earlier in the week on hopes of an improving economy, airline shares are in the red once again on Thursday. Shares of American Airlines Group (NASDAQ: AAL) were down 6.6% as of 2:30 p.m. EDT and shares of United Airlines Holdings (NASDAQ: UAL) were down 4.4%. Delta Air Lines (NYSE: DAL), which earlier in the day was down 5.2%, had recovered some of that loss, but were still down on a day when broader markets are up.
Around 100,000 employees of American Airlines Group Inc <AAL.O>, Delta Air Lines Inc <DAL.N> and United Airlines Holdings Inc <UAL.O> have already accepted offers for temporary or permanent leaves, the companies have said. If airlines furlough too many workers, "the bounce-back is almost impossible," United Chief Executive Scott Kirby said at a conference on Thursday. United is in talks with its labor unions on voluntary options that Kirby said are focused more on the bounce-back than on "survivability."