The Zacks Analyst Blog Highlights: GOL Linhas Aereas Inteligentes S.A., Delta Air Lines, United Continental Holdings, Southwest Airlines and American Airlines Group
For Immediate Release
Chicago, IL – November 7, 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 GOL Linhas Aereas Inteligentes S.A. GOL, Delta Air Lines, Inc. DAL, United Continental Holdings, Inc. UAL, Southwest Airlines Co. LUV and American Airlines Group Inc. AAL.
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Here are highlights from Tuesday’s Analyst Blog:
Airline Stock Roundup: October Traffic Report & More
In the past week, Latin American carrier — GOL Linhas Aereas Inteligentes S.A. — reported wider-than-expected loss per share for third-quarter 2018. Results were hurt by high costs and currency-related headwinds.
On the non-earnings front, Delta Air Lines, Inc. released its traffic numbers for October. While traffic increased, load factor (percentage of seats filled with passengers) declined as traffic growth was outpaced by capacity expansion. Expansion-related updates from United Continental Holdings, Inc. and Southwest Airlines Co. also grabbed headlines over the past week.
(Read the last Airline Stock Roundup for Oct 31, 2018)
Recap of the Past Week’s Most Important Stories
1. Gol Linhas’ incurred loss (excluding 27 cents from non-recurring items) of 32 cents per share, much wider than the Zacks Consensus Estimate of a loss of 10 cents. Meanwhile, net revenues came in at $734.3 million (R$2.89 billion), missing the Zacks Consensus Estimate of $737.2 million. Passenger revenues accounted for bulk of the top line and rose 8.9% on a year-over-year basis. This upside can be attributed to solid demand for air travel owing to a prospering Latin American economy. (Read more: Gol Linhas Q3 Loss Wider, Revenues Miss Estimates).
Gol Linhas carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. At Delta, consolidated traffic — measured in revenue passenger miles (RPMs) — came in at 18.78 billion, up 2.7% year over year. Consolidated capacity (or available seat miles/ASMs) climbed 3.2% to 21.97 billion on a year-over-year basis. Strong demand for air travel led to the increase in traffic. (Read more: Delta's October Traffic Rises, Load Factor Declines).
3. United Continental’s wholly-owned subsidiary — United Airlines — launched non-stop flights connecting the San Francisco International Airport to the capital of Tahiti, Pape’ete. The flights, operational since Oct 30, will fly every Tuesday, Thursday and Sunday from San Francisco. Moreover, the carrier has decided to extend the current seasonal service between the destinations to a year-round one from Mar 30, 2019. (Read more: United Continental Unit Initiates Flight Services in Tahiti).
4. In an effort to meet the surge in demand during the upcoming holiday season, Southwest Airlines has started operating new flights. To attain the objective of strengthening its presence in Northern California, this low-cost carrier aims to offer up to 98 departures (on a daily basis) to multiple destinations across the United States and Mexico by Nov 30, 2018. To this end, it has started operating flights between San Jose, Calif. and Tucson, Ariz. Southwest Airlines has also started operating daily flights between New York (LaGuardia) and New Orleans, apart from increasing the frequency of its flights on certain routes. This Dallas-based carrier has also decided to resume its seasonal daily operations on some international routes (like Austin and Cancun) as part of its expansion efforts.
5. In a bid to modernize its fleet, American Airlines Group Inc. has inked a firm order with Brazil’s Embraer — the world's leading manufacturer of commercial planes up to 150 seats — for 15 E175 jets in a 76-seat configuration. The new jets will be delivered in 2020. The deal is valued at $705 million, based on current list prices. Following the latest order, American Airlines has a total of 104 E175 jets on order since 2013.
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United Continental Holdings, Inc. (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
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