Airline Stock Roundup: GOL Linhas, JetBlue, Southwest in Focus - Analyst Blog

Airline stocks showed a positive pricing momentum over the last 5 trading sessions. A major highlight during the said period was GOL Linhas Aereas Inteligentes S.A.'s ( GOL ) second quarter results. In addition, service expansions by Southwest Airlines Co. ( LUV ) and JetBlue Airways Corporation ( JBLU ) and shift of Delta Air Lines' ( DAL ) New York operations of Delta Shuttle also figured in the headlines.

A Recap of Last Week's Most Important Stories

1. GOL reported second-quarter 2014 net loss per share of R$0.52 or approximately 23 cents, which compared unfavorably with the Zacks Consensus Estimate of a loss of 3 cents. The loss, however, narrowed from the year-ago loss of 69 cents per share. The quarter's results were hurt by a decline in domestic supply, soaring jet fuel prices and depreciation of the Brazilian real against the dollar.

2. Airline companies are resorting to the latest technologies to enhance customer service, and JetBlue Airways is no exception in this regard. The New York-based carrier recently announced that it will provide all its in-flight crewmembers with iPad minis to better serve the passengers (read more: JetBlue Equips Crewmembers with iPad Mini to Enhance Service ).

3. As announced earlier, Southwest Airlines is expanding its service further to Cancun and Los Cabos in Mexico after debuting in international skies last month. The flight adds to the newly launched services from Atlanta, Baltimore and Orlando to Oranjestad, Aruba and Montego Bay, Jamaica (read more: Southwest Airlines Extends International Reach to Mexico ).

4. Last week, Delta Air Lines announced its plans to shift the New York operations of Delta Shuttle between Boston-Logan International Airport and New York's LaGuardia Airport from the Marine Air Terminal to Terminal C, from Nov 2. The carrier announced the latest change as part of its strategy of adding bigger aircraft on more routes.

5. Alaska Air Group, Inc. ( ALK ) has recently announced its new seasonal services between Las Vegas and Mammoth Lakes, CA. The company will operate new nonstop flights between Las Vegas and Mammoth Lakes between Jan 15 and Apr 6, 2015.

Over the trailing 5 sessions, all the major airline stocks exhibited a positive trend. Top gainers from the past week include GOL Linhas and United Continental Holdings, Inc. ( UAL ) with 8.5% and 8.1% growth in share prices, respectively.

In addition, over the past 6 months, most of the stocks have fared reasonably well except Copa Holdings, which dropped 6.7% during the period. The biggest grossers in the 6-month span were Hawaiian Holdings Inc. ( HA ) and Southwest Airlines, sporting growth of 52.1% and 47.7%, respectively.

What's Next in the Airline Biz?

We believe a positive market trend coupled with industry consolidation and rise in various ancillary revenues are expected to support growth ahead. As a result, we expect the current positive momentum in trading to continue through this week and further ahead.

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SOUTHWEST AIR (LUV): Free Stock Analysis Report

JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report

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

DELTA AIR LINES (DAL): Free Stock Analysis Report

UNITED CONT HLD (UAL): Free Stock Analysis Report

HAWAIIAN HLDGS (HA): Free Stock Analysis Report

ALASKA AIR GRP (ALK): Free Stock Analysis Report

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Zacks Investment Research

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

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

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