25.21 +0.02 (0.08%)
After hours: 4:13PM EDT
|Bid||25.09 x 1200|
|Ask||25.08 x 2200|
|Day's range||24.37 - 25.60|
|52-week range||17.51 - 63.44|
|Beta (5Y monthly)||1.27|
|PE ratio (TTM)||4.64|
|Earnings date||09 Jul 2020 - 13 Jul 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||19 Feb 2020|
|1y target est||37.07|
Major U.S. airlines are cutting worker hours and encouraging employees to take voluntary leave or early retirement.
Major airlines on both sides of the Atlantic are cutting even more jobs as they struggle to cope with a plunge in air travel that will leave the airline industry much smaller than it was before the coronavirus pandemic and economic collapse. EasyJet said Thursday that it will cut up to one-third of its 15,000 employees. The London-based budget airline's CEO said he had no choice.
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."
LATAM Airlines and Avianca Holdings survived the Great Depression, but just a few weeks of quarantines forced both companies into bankruptcy, marking Latin America as the world's top spot for airline financial ruin. Hopes for a taxpayer rescue in the region are fading fast and the bankruptcies show that even Latin America's two largest carriers are not immune to collapse, even as many airlines in the United States and Europe have received government aid.
American Airlines said it would cut 30 per cent of the 17,000 employed in the ranks of management and support staff. Meanwhile, Delta — the second-largest airline after American, by paid passenger kilometres — will offer retirement and buyout packages to its staff of 91,000, including pilots and flight attendants. “I’m often asked for specifics about how small Delta will need to be over the next couple of years,” said Ed Bastian, the airline’s chief executive, in a memo to staff.
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.
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.
American Airlines (AAL) is seeing modest increases in travel demand; does not think any airline would go out of business due to coronavirus concerns.
The likes of Delta (DAL) and United Airlines (UAL) are looking at ways to promote cleanliness in a bid to encourage passengers to resume flying.
Airline shares were flying higher again on Wednesday, the sector's second straight day of posting double-digit gains on improving optimism that the U.S. economy is in the early stages of a recovery. Shares of Spirit Airlines (NYSE: SAVE) led the way at the open, jumping 18%, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all up double digits.
Warren Buffett's position on airline stocks has attracted a lot of investor attention, and rightly so. His Berkshire Hathaway went from being a buyer of airline stocks earlier in the year to famously dumping its stakes in Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines (NASDAQ: UAL), with Buffett declaring that he'd made a mistake.
With easing travel restrictions, U.S. airlines are seeing modest increases in passenger numbers.
Airlines' improved cash flow and cost-control measures helped them with enough capital to tide over the crisis, and now with improved traffic, things are certainly looking up for airliners.
On Tuesday the S&P 500 traded above the 3,000 level for most of the session and the Dow crossed 25,000 for the first time since early March. But one strategist warns a pause and digestion in the markets is likely.
Shares of Latam Airlines Group (NYSE: LTM) fell 34% on Tuesday after the Latin American airline filed for Chapter 11 protection in New York. The pandemic has created an extraordinarily tough operating environment for airlines, and it seems unlikely the current equity holders of Latam will get much, if anything, from the reorganization. Airlines around the globe have been hard hit by the COVID-19 pandemic, and Latin American airlines in particular have suffered due to bans on international travel.
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.
Delta and JetBlue have already received a portion of $25 billion in CARES Act money meant to protect airline workers' jobs and pay rates until Sept. 30 as the industry weathers a severe business slump during the coronavirus crisis. Delta is set to receive $5.4 billion and JetBlue $935 million. "You should not take one penny more of bailout funds unless you are prepared to protect your workers' jobs, pay and benefits," 13 senators including Elizabeth Warren and Kamala Harris, all Democrats, wrote to the airlines in two letters.
The S&P 500 (SNPINDEX: ^GSPC) lost 12 points to 2,937, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell 27 points to 9,258. One industry that has a big task ahead of it is the airline business. Ever since local shutdowns went into effect, airline travel volumes have plunged.
Government relief efforts for airlines didn't serve passengers, pilots, or the public. Instead, it was this group of people.
Delta (DAL) expects to add around 200 flights in June and another 200 or 300 flights in July on modest improvement in travel demand.