|Bid||36.41 x 900|
|Ask||36.44 x 1000|
|Day's range||34.94 - 36.94|
|52-week range||22.47 - 58.83|
|Beta (5Y monthly)||1.41|
|PE ratio (TTM)||8.16|
|Earnings date||23 Jul 2020|
|Forward dividend & yield||0.72 (2.09%)|
|Ex-dividend date||03 Mar 2020|
|1y target est||38.94|
Southwest Airlines plans to return to growth in several cities later this year -- but it will shrink significantly in Fort Lauderdale: a key focus city for JetBlue Airways and Spirit Airlines.
Amid coronavirus concerns, Southwest (LUV) is aiming to voluntarily reduce workforce to match its low capacity.
"While overstaffing isn't tied 100% to capacity levels, it would be fair to assume that we are overstaffed in many areas by a similar percentage," Southwest said in the documents. The maximum leave period varies, and the airline said it "may return employees to work earlier if needed for operational needs."
Southwest Airlines (LUV) aims to add several nonstop flights across various cities in the United States on Dec 17, 2020.
Golar LNG's (GLNG) Q1 revenues rise year over year, driven by an excellent performance in FLNG and solid seasonal results in shipping.
According to data from Statista, more than 1.5 million passengers have passed through U.S. airport security checkpoints during the Memorial Day weekend, which is the highest reported number since hitting a record low in late-March.
In the latest trading session, Southwest Airlines (LUV) closed at $32.10, marking a -1.38% move from the previous day.
Until early May, Southwest Airlines executives described their revenue stream as a leaky bucket, with some new bookings coming in, but not enough to offset losses from itinerary cancelations. "You just can't keep the water up," Andrew Watterson, the airline's chief commercial officer, said in an interview. As many U.S. states, cities, and counties dropped […]
(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.
Shares of Hawaiian Holdings (NASDAQ: HA) closed down 9% on Thursday, a down day for most of the airline sector. Shares were likely under additional pressure due to geopolitical issues that could weigh on Hawaiian Airlines' recovery. Airlines are facing significant declines in travel demand due to the COVID-19 pandemic, and Hawaiian has not been immune.
Boeing (NYSE: BA) said late Wednesday that it has restarted 737 Max production, meeting its self-imposed May 31 deadline to resume building its troubled airplane. The 737 Max has been grounded since March 2019 after a pair of fatal crashes, and Boeing halted production in January after stockpiling a large number of finished, but undeliverable, aircraft. Boeing has missed several internal deadlines to return the plane to the air, but even with delays caused by the COVID-19 pandemic, company officials are confident the plane will be recertified to fly in the second half of 2020.
With easing travel restrictions, U.S. airlines are seeing modest increases in passenger numbers.
Airline stocks are rocketing higher on Tuesday morning, joining in a broader market rally as investors celebrate signs economic activity is returning to normal and promising developments in the race for the COVID-19 vaccine. Shares of Spirit Airlines (NYSE: SAVE) led the way, up more than 14% as of 10 a.m. EDT, with shares of Southwest Airlines (NYSE: LUV), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Hawaiian Holdings (NASDAQ: HA) all up double digits.
Several airline stocks posted spectacular gains last week, but despite some positive data points, investors shouldn't expect a quick recovery in air travel demand.
A history of bankruptcies in the airline industry has usually kept quality-focused investors away. It's no surprise that the capital-intensive, cyclical nature of the business lends itself to wild swings in stock prices during unexpected economic shocks. According to the TSA, air travel demand was down 92% in the first 18 days of May compared to the same time period last year.
"You won't see full flights on Southwest at least through the end of July, and if we do have more demand for that flight, we'll add additional flights to meet demand," Kelly said at its annual shareholders' meeting, which was held virtually. Delta also plans to continue limiting the number of passengers on each flight through at least July, people told Reuters this week. The company currently has $13 billion cash in the bank that will carry it through at least 20 months at current blast rates, Kelly said, and likely many more months than that "because I do think things continue to improve."
The summer travel season is a big revenue generator for U.S. airlines but the coronavirus threatens the carriers and risk assessment firm RapidRatings warns American Airlines is the most at risk of going bankrupt.
Airline stocks were getting a second wind in early afternoon trading Wednesday, with shares of Delta Air Lines (NYSE: DAL) leading the charge with a 4.1% gain as of 12:15 p.m. EDT today. Credit for the surge must go to Delta. Speaking on Fox Business this morning, Delta CEO Edward Bastian predicted that after months of flight reductions, Delta will probably execute a turn in the near future and begin slowly increasing capacity again in June and July.
After a 95% drop in April gross bookings, United Airlines (UAL) witnesses a moderate rise in demand for the remainder of the second quarter of 2020.
Economies are finally reopening and flyers are getting back confidence with slower ticket cancellations and an uptick in demand for tickets.
(Bloomberg) -- U.S. airlines reported signs that travel demand is perking up, suggesting the beginnings of a rebound from an unprecedented collapse because of the coronavirus pandemic.Bookings are again outpacing cancellations and June reservations are showing “modest improvement,” Southwest Airlines Co. said Tuesday. United Airlines Holdings Inc. is seeing reduced cancellation rates and “moderate” strengthening on U.S. and some international routes. Delta Air Lines Inc. has noticed a slight bounce in leisure bookings, and American Airlines Group Inc. said it’s filling a greater portion of seats on its planes.The nascent signs of recovery bolstered the outlook for at least a tentative comeback after consumers all but stopped flying in April because of the virus outbreak and government travel restrictions. Carriers cautioned that the landscape remains uncertain for an industry that has already received $25 billion in government payroll aid during the worst crisis in airline history.A Standard & Poor’s index of major U.S. airlines was little changed at the close in New York, a day after a 14% surge amid a broad rally spurred by positive news about an experimental coronavirus vaccine. Southwest gained 2.2% to $27.69 in the Tuesday session. The others fell, paced by American’s 2.3% drop to $9.64. Filling SeatsSouthwest said in a regulatory filing that operating revenue this month would likely decline no more than 90% from a year ago, slightly better than the previous forecast of a drop of as much as 95%.The percentage of seats filled per plane in May should average between 25% and 30%, compared with about 8% in April. The Dallas-based carrier earlier projected the figure would be no more than 10% in May. The forecast for capacity remains down as much as 70% from last year’s level.Southwest also issued its first outlook for June, forecasting that operating revenue would drop as much as 85% and that capacity would decline as much as 55%. With fewer planes flying, its number of seats filled was projected to be 35% to 45%.The airline also is starting to get a grasp on spending, projecting it would burn $25 million a day on average this quarter, down from an earlier estimate approaching $35 million. With cash use in the low $20 million range, as it this month, Southwest said it would take about 20 months before its $13 billion in cash and short-term investments would be depleted.‘We’re Cautious’Delta has seen a “little bit” of a bounce off the bottom, including an uptick in domestic leisure bookings and occasional days of positive sales, net of refunds, Chief Financial Officer Paul Jacobson said. But he cautioned that reservations must still translate into actual travel. Leisure traffic, such as the beach destinations Delta is booking, typically is less solid and less profitable than business travel.“We’re cautious. We really can’t afford to have false starts,” Jacobson said at a Wolfe Research conference. “That’s going to be a challenge for the industry: How we restart in the face of demand that’s going to bounce around a little bit.”The airline expects to reduce daily cash burn to $40 million as June winds down and is on track to reach zero by year-end, Jacobson said.Delta said Monday it would restart a variety of flights in June, including on such routes as New York to Paris and Atlanta to Cancun, providing a hint that demand is poised to inch up.United expects to operate about 25% of its 2019 schedule in July, up from about 12% in May, and “we’re now seeing a lot of this starting to stabilize” in terms of bookings outpacing cancellations, Chief Commercial Officer Andrew Nocella said Tuesday in a webcast with Wolfe analyst Hunter Keay.The carrier is being “very careful” with its revenue-management strategies for later in the year and early 2021 and not pricing simply “to fill up airplanes,” Nocella said. “Our pricing philosophy really hasn’t changed that much,” he said.American is filling about 35% of its seats this month, up from 15% in April, said Don Casey, the carrier’s senior vice president of revenue. Business travelers not managed by corporate programs already are returning to flying, he said.(Updates with United comment in 13th paragraph, American in final paragraph)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.