CNBC Reporting Multiple Bomb threats against US Airplanes on the ground and in the air currently
Delta now expects consolidated PRASM for the June quarter to decline approximately 4 to 5 percent, with the change from previous guidance a result of lower-than-expected close-in domestic business yields.
Delta Air Lines Inc on Tuesday lowered its forecast for unit revenue this quarter as U.S. domestic business tickets booked near customer travel dates yielded less money per mile than the carrier expected.
The Atlanta-based airline said it estimates passenger revenue per available seat mile, which measures sales relative to planes' carrying capacity and travel distance, to decline 4 to 5 percent this quarter. This revises its earlier forecast of a 2 to 4 percent drop.
Delta Air Lines (DAL -2.1%) reports consolidated revenue passenger miles increased 2.7% in May.
Domestic RPMs were up 3.6%, while international RPMs rose 1.4%.
Passengers boarded were up 3.1% to 15.55M.
Available seat miles +4.0%, with Delta mainline capacity gains outpacing regional carriers.
Delta's consolidated load factor fell 110 bps to 85.4%.
Passenger revenue per available seat mile #$%$ Y/Y.
No lets elected another flaming loser liberal like Obama. Middle east is on fire because the idiot sitting in the White House you moron.
transgender keep drinking the cool aide of the CNN "Communist news network. What a moron!
BofA/Merrill Lynch downgraded American Airlines (NASDAQ: AAL) from Buy to Neutral with a price target of $50.00 (from $64.00). The change follows Delta Air Lines (NYSE: DAL) commentary yesterday. Analyst Andrew G Didora thinks American Airlines is most exposed to capacity concerns that have grown recently, as it goes head-to-head with Southwest Airlines (NYSE: LUV) in Dallas. Didora noted 13% of the company's capacity comes from its main hub in Dallas.
The analyst also noted interrogation risk with its reservation system.
6/2/2015 Imperial Capital Reiterated Rating Outperform $82.00
Southwest Airlines is offering flights for as low as $47 during an epic three-day flash sale from June 2 through June 4.
Some of the best deals include a $49 one-way flight from Chicago to Memphis, a $49 flight from San Francisco to L.A. and $99 flights from New York to both New Orleans and Nashville.
The sale lists one-way flights at four price levels: $49, $99, $129 and $149, though we even happened upon a one-way flight for $47 from Charlotte to Baltimore.
There are lots of inter-Texas flights for $49. And for $99, you can shop flights from Austin to Chicago, from Atlanta to Boston, and more.
The sale is for travel between Aug. 24 and Dec. 16, 2015, with a few blackout dates including Labor Day weekend and Thanksgiving. The sale doesn't include Friday or Sunday flights, either. But the good news? If you've already booked a trip within the sale's designated dates, Southwest encourages you to look into changing your reservation, which could potentially score you one of the new, lower fares.
Southwest Airlines starts air fare wares with incredibly cheap tickets
Raymond James downgraded American Airlines (NASDAQ: AAL) from Outperform to Market Perform.
American Airlines Group Inc. (NASDAQ:AAL) CEO Doug Parker told Reuters that the capacity increase by almost all of the major US airlines could affect the airline’s profits.
I wish to express my gratitude to the Ceo for making it so dang easy to short AAL stock. Just cover my short position at $39.93. Thank you Doug Parker your the best! LOl...
Parker, speaking to Reuters at an International Air Transport Association global airlines conference in Miami, said "the real question is, is this a one-time catch up for fuel prices being lower, or is this airlines behaving like airlines used to and just increasing capacity because times are good?"
"I don't know if we know the answer to that yet," Parker added
Sounds like full on air fare war to me!
American Airlines Group's total revenue passenger miles (RPMs) for the month were 19.3 billion, up 0.7 percent versus May 2014. Total capacity was 23.3 billion available seat miles (ASMs), up 2.1 percent versus May 2014. Total passenger load factor was 82.8 percent for the month of May, down 1.2 percentage points versus May 2014.
Based on two months of actual data and one month of forecast, the Company expects its second quarter 2015 consolidated passenger revenue per available seat mile (PRASM) to be down approximately 6 to 8 percent. In addition, the Company expects its second quarter fuel price to be approximately $1.86 to $1.91 per gallon. The Company now expects its second quarter pretax margin excluding special items to be between 16 and 18 percent.
If you take their 2014 revenue of $42.7 bil, raise it by the .07 growth rate and then shrink it for PRASM at midpoint of -.07 gives you a revenue of $39.9 bil, then you take their guidance of pretax margin of 16-18%, (use 17%), that gives you an annualized pretax of $6.8 billion. With 693 million shares, that comes to earnings of $9.81 for 2015. Not armageddon.
U.S. crude production hits 43-year high
So much for the decline in the rig count. According to the EIA, U.S. crude oil production hit about 9.6M barrels per day in May, its highest monthly level in 43 years. In May 2014, production was 8.4M barrels per day - at the time a 26-year high.
The all-time high of about 10M barrels per day was in the early 1970s.
As for the full year, the EIA boosts its estimate of average monthly production to 9.43M barrels per day from 9.19M. In 2016, the EIA sees production of 9.27M bpd vs. a previous estimate of 9.21M.
The EIA says the total of all seven shale plays peaked in April at 5,694,580 bpd and will have declined by 208,782 bpd in July. The one month decline, June to July, the EIA says, will be 93,027 bpd. These July numbers are still 142,720 bpd above the production numbers they have for December. However if the decline they predict in July continues, then production in December 2015 will about 322,000 bpd below the December 2014 numbers.
6/10/2015 Imperial Capital Lower Price Target Outperform $82.00 - $73.00