Airline Stock Roundup: Alaska Air, Southwest & Delta in Focus - Analyst Blog

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Given the strength in S&P 500 and Dow Jones Transportation indices in the past 5 trading days, airline stocks seem to have benefited considerably. The trading days marked a good time for the airline stocks with most of the major companies gaining positive price momentum.

The key highlights of the past week include Alaska Air Group, Inc. 's ( ALK ) pending regulatory approval for new non-stop flights to Mexico and the announcement of the last and final take-off of AirTran Airways in December this year.

Recap of the Past Week's Most Important Stories

1.    Delta Air Lines Inc. ( DAL ) has signed an agreement with leading global travel distribution services and e-commerce provider, Travelport. Per the deal, Delta will be able to obtain data and intellectual property rights integral to its passenger service and flight operations systems. (Read More: Delta to Obtain Data Rights through Travelport Deal )

2.    Seeking expansion in Fort Lauderdale-Hollywood International Airport, JetBlue Airways Corp. ( JBLU ) introduces two new non-stop flights to Cartagena, Colombia and Las Vegas, NV. The two flights will begin operations on Oct 29, 2014. On the same day, the company is also slated to launch non-stop services to Pittsburgh. Last year, the company had flagged off six international routes from South Florida and these upcoming flights will be in addition to them.  (Read More: JetBlue Introduces New Non-Stop Flights )

3.    United Airlines - the wholly owned subsidiary of United Continental Holdings Inc. ( UAL ) - has launched its non-stop summer service between Chicago and Edinburgh, as announced previously in Sep 2013. The flight marks the first non-stop scheduled commercial service between the two cities and will run till Oct 5, 2014. (Read More: United Airlines Connects Chicago, Edinburgh )

4.    Dec 28, 2014 will mark the end of the last chapter in the history of AirTran Airways, a wholly owned subsidiary of Southwest Airlines Co. ( LUV ). The date would be witness to the last flight scheduled by the carrier. After that, AirTran fleet will have combined operations under the Southwest Airlines brand.

5.    Alaska Airlines is seeking regulatory approvals to kick start two new non-stop flights from Portland, OR, to Los Cabos and Puerto Vallarta in Mexico. The company is waiting for the approval from the U.S. Department of Transportation and the Mexico Direccion General de Aeronautica Civil (DGAC). The carrier expects to run seasonal service between Portland and Los Cabos (from Nov 3, 2014 to April 27, 2015), and Portland and Puerto Vallarta (from Nov 4, 2014 to April 26, 2015).

Performance

The following table shows the price movement of the major Airline players over the past 5 trading days and during the last 6 months:

Company

Last 5 Days

Last 6 Months

DAL

5.31%

37.72%

UAL

8.64%

13.85%

AAL

3.86%

65.97%

JBLU

6.42%

5.00%

LUV

5.26%

39.99%

SAVE

5.96%

27.90%

CPA

3.76%

-6.82%

ALK

3.68%

27.87%

HA

5.66%

68.98%

GOL

3.60%

32.25%


Over the trailing 5 days, all the airline stocks have witnessed growth in prices.

Of these stocks, the biggest gainers include United Continental Holdings, JetBlue Airways and Spirit Airlines, Inc. ( SAVE ) with growth of 8.6%, 6.4% and 6.0%, respectively. Lowest gain was registered by GOL Linhas Aereas Inteligentes S.A. ( GOL ) with the stock clocking a 3.6% rise.

On the other hand, in terms of performance over the past 6 months, most of the stocks have fared reasonably well, with the exception of Copa Holdings ( CPA ), which dropped 6.8% over the period. The biggest gainer in the 6-month span was Hawaiian Holdings, sporting growth of almost 69%.

What's Cooking in the Airline Biz?

The current week recorded some major events, including the expansion of The Boeing Company ( BA ) 787 Dreamliner operations. This move by the Federal Aviation Administration will benefit airline companies to incorporate new routes thus driving their operating revenues, although no immediate transition is being predicted as per reports.

Further, Delta Air Lines announced new daily non-stop flights from Seattle this week to promote ski and beach destinations across the Americas. With this move, Delta is eyeing the maximum number of international destination flights from Seattle, higher than any of its peers.


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ALASKA AIR GRP (ALK): Free Stock Analysis Report

BOEING CO (BA): Free Stock Analysis Report

COPA HLDGS SA-A (CPA): Free Stock Analysis Report

DELTA AIR LINES (DAL): Free Stock Analysis Report

GOL LINHAS-ADR (GOL): Free Stock Analysis Report

JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report

SOUTHWEST AIR (LUV): Free Stock Analysis Report

SPIRIT AIRLINES (SAVE): Free Stock Analysis Report

UNITED CONT HLD (UAL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ALK , BA , CPA , DAL , GOL

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