It looks like OPEC is making the production quota
stick for now, and the February jobs report (US) showed
a net loss in job creation (more people lost jobs
than found them) for the first time in months. There
is concern March will also show a net jobs loss,
which would be the first time in years we had a net
loss for two months in a row. It could be enough to
rattle confidence in the economy. Higher fuel prices
squeezing profits and lower consumer confidence cutting
into ticket demand could force a price war when the
airlines can least afford it. Be careful out there!
(Just my signature. SOP, not spam.)
UAL has been looking for another
carrier to replace the codeshare they had with MESA for
some time. Only logical to increase the scope of the
agreement with SKYW. This will be provide more growth
opportunities for SKYW.
Skywest will be flying Denver routes by this time
next year, but they will not move thier operations
there. trust me on this one, life is to good in St.
George for the company to consider such a plan.
Bloombergs analyst earnings estimate monitor
I/B/E/S shows two down adjustments for earnings for this
quarter to .25/share but does not say whose estimates
they are (changes were made last friday). Any ideas?
Merrill still showing a .50/share estimate.
caution, jet fuel prices have gone up 30 cents per gallon
on the US west coast (70%) in the last month due to
refinery problems. Even though United fixes the cost of
50% of the fuel SKYW uses under their agreement, they
probably still have a significant exposure unless they
have hedged. Jet prices will get crushed in July as
imports arrive in droves but it will be a drag on this
Q's earnings (I would'nt think enough to justify
cutting earnings estimates in half).
FYI, I am
very long the stock and think it is the best airline
stock around although that does'nt matter when the
sector gets obliterated like the last 2 weeks.
Has anyone else heard the rumor of skywest moving
it's operations to denver? and that COMAIR would
takeover the SLC hub?
that would only happen if SKYW
went all UNITED though but it is somthing to think
take care & good luck......
way that it would work. Delta gets SKYW Salt Lake
City operations for their 14% ownership of SKYW. Then
SKYW becomes a 100% UAL Express carrier based out of
DENVER!! Think about the possibilities that has. I don't
think it will happen, but just an idea that could work.