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The Zacks Analyst Blog Highlights: American Airlines, JetBlue Airways, Southwest Airlines, Alaska Air and Delta Air

Zacks Equity Research
The Zacks Analyst Blog Highlights: American Airlines, JetBlue Airways, Southwest Airlines, Alaska Air and Delta Air

For Immediate Release

Chicago, IL –November 16, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: American Airlines Group, Inc. AAL, JetBlue Airways Corporation JBLU, Southwest Airlines Co. LUV, Alaska Air Group, Inc. ALK and Delta Air Lines, Inc. DAL.

Here are highlights from Thursday’s Analyst Blog:

Can Airlines Lift Further on Oil’s Slide, Holiday Travel?

Per the Transportation Security Administration (TSA), the Thanksgiving holiday period is expected to witness a record-breaking number of flyers. Also, per the Airlines for America (A4A), the industry’s trade organization for the leading U.S. airlines, a record 30.6 million passengers will be flying on U.S. airlines during the 12-day Thanksgiving air travel period.

Air travel is becoming expensive in 2018 owing to surging fuel prices. However, oil recently saw its deepest plunge in more than three years in the international market. This has resulted in airline stocks jumping in November.

Holiday Flying to Hit Record High

Per the TSA, 25 million passengers are expected to fly across the United States from Nov 16 to Nov 26. This reflects an increase of 5% from 2017. The busiest travel days leading to Thanksgiving are likely to be Friday and Wednesday before the holiday, with 2.6 million passengers and crew expected to fly on each of these two days.

Also, more than 2.7 million passengers are expected to be flying home on Nov 25, the Sunday after Thanksgiving. Moreover, the A4A recently projected that a record 30.6 million passengers would be traveling on U.S. airlines during the 12-day Thanksgiving air travel period, up from an estimated 29 million passengers during the 2017 travel period.

Naturally, airports are bracing for longer security queues and parking crunch and trying to meet demand by adding 158,000 seats per day. The holiday season is considered one of the busiest periods for airlines. And with holiday flying expected to hit a record high, it will definitely boost revenues of U.S. airlines.

Airlines Poised to Gain on Low Oil Prices

Oil recently saw its steepest decline in more than three years in the international market due to fears of oversupply and a weakening demand outlook. On Wednesday, oil prices closed higher after witnessing 12 straight sessions of decline. However, oil prices once again slipped on Thursday on concerns of rising supply going into a market, in which consumption is predicted to slow down given a gloomy economic outlook. (Read More: 4 Top Stocks to Gain as Oil Enters Bear Market)

At 0441 GMT, Brent Crude Oil futures were trading at $65.88 per barrel, down 0.24 cents from their last close. This definitely is a blessing in disguise for the aviation industry. Month to date, shares of American Airlines Group, Inc., JetBlue Airways Corporation and Southwest Airlines Co. have surged 7.6%, 7.8% and 5.7%, respectively.

Shares of Alaska Air Group, Inc. and Delta Air Lines, Inc. have gained 7.9% and 2.5%, respectively. Spirit Airlines sports a Zacks Rank #1 (Strong Buy), while the other stocks carry a Zack Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Understandably, U.S. airlines have been facing turbulence this year, with crude oil futures hitting nearly four-year highs last month. This has been weighing on the aviation industry, with expenses increasing and cutting into its revenues.

However, the sudden collapse in oil prices will definitely help airline companies. Moreover, the all-important holiday season is likely to witness a record number of flyers, which definitely bodes well for the aviation industry.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
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