The Zacks Analyst Blog Highlights JetBlue Airways, Spirit Airlines, Delta Air Lines, SkyWest and United Airlines
For Immediate Release
Chicago, IL – November 3, 2023 – 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: JetBlue Airways JBLU, Spirit Airlines SAVE, Delta Air Lines DAL, SkyWest's SKYW and United Airlines UAL.
Here are highlights from Thursday’s Analyst Blog:
Airline Stock Roundup: Q3 Earnings, Flights to Israel & More
Last week, low-cost carrier JetBlue Airways reported disastrous third-quarter 2023 results. Adverse weather and air traffic control issues hurt operations in the third quarter. Additionally, leisure travel bookings in the September quarter were lower than expected.
Meanwhile, an antitrust trial is debating on JetBlue's planned acquisition of Spirit Airlines. Due to the Israel-Hamas conflict, Delta Air Lines decided to cancel flights from New York's John F. Kennedy International Airport ("JFK") and Tel Aviv through Nov 21.
More earnings-related updates are available in the previous week's write-up.
Recap of Last Week's Most Important Stories
1. JetBlue Airways' third-quarter 2023 loss (excluding 7 cents from non-recurring items) of 39 cents per share was wider than the Zacks Consensus Estimate of a loss of 27 cents. In the year-ago quarter, JBLU had reported earnings of 21 cents. Weather-related constraints and high fuel prices hurt the results.
Operating revenues of $2,353 million missed the Zacks Consensus Estimate of $2,379 million. Moreover, the top line decreased 8.16% year over year. Passenger revenues, accounting for the bulk of the top line (93.5%), declined to $2,201 million from $2,415 million a year ago. Management expects the fourth-quarter 2023 loss per share to be 35-55 cents.
JBLU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
2. Due to the ongoing Israel-Hamas conflict, DAL's management decided to cancel all flights between JFK and Tel Aviv's Ben Gurion airport through Nov 21. The sale of these flight tickets was suspended from Nov 1. DAL continues to have a travel waiver in place for customers who booked tickets before Oct 11, 2023, to/from TLV. Under this service, they can rebook their travel on available flights through Sep 6, 2024.
3. According to a Reuters report, a lawyer from the U.S. Department of Justice urged a federal judge to block JetBlue's intended $3.8-billion acquisition of Spirit Airlines in an effort to preserve competition among the lowest-cost carriers. This is to ensure that air travel remains affordable. The Justice Department believes that if the deal materializes, it would lead to fewer flights and seats, and higher prices. Meanwhile, JetBlue has called the deal pro-consumer.
4. SkyWest's third-quarter 2023 earnings per share of 55 cents outpaced the Zacks Consensus Estimate of 40 cents but declined 42.7% year over year. Revenues of $766.2 million beat the Zacks Consensus Estimate of $762.6 million but slipped 2.9% year over year. The outperformance pleased investors, leading to a share price appreciation post the earnings release.
In a bid to modernize its fleet, SkyWest inked a deal with United Airlines for 19 new E175 jets under contract. Deliveries of the planes are scheduled to begin from late 2024 and continue till 2026
Price Performance
Most airline stocks traded in the red over the past week. As a result, the NYSE ARCA Airline Index declined 3% over the period to $46.66.. Over past six months, the sector tracker declined 21.5%.
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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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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
