|Bid||57.78 x 800|
|Ask||57.78 x 800|
|Day's Range||57.68 - 58.15|
|52 Week Range||44.28 - 58.77|
|Beta (3Y Monthly)||1.48|
|PE Ratio (TTM)||12.97|
|Earnings Date||Jan 23, 2020|
|Forward Dividend & Yield||0.72 (1.25%)|
|1y Target Est||60.26|
One of Southwest's top labor guys in a new memo says many details still need to be ironed out before a tentative contract is done.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Dallas (City of) TX Airport Enterprise and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
"Boeing will never, and should not ever, be given the benefit of the doubt again," the Southwest Airlines Pilots Association president said in a letter to members.
A new J.D. Power report also found growing confusion among travelers about how loyalty programs work as changes are made.
"It's not our only aircraft, so our people didn't really lose wages," said Lori Bassani, president of the Association of Professional Flight Attendants.
Airline stocks historically have not had the best of reputations on Wall Street. For decades, they could not sustain their winning streaks for long. The perception was that they always found new ways of messing up, even while winning.But those days are over, because now when we fly, we get very few freebies. Passengers sometimes even have to pay extra to reserve a seat that they've already paid for. Checking luggage is also no longer always free.The bottom line is that airline stocks have cultivated taxing habits to enhance their bottom lines on a sustainable basis.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Cheap Stocks to Buy Under $10 Yet, the write-up today is to caution against going long these three airline stocks right now. This is not a knock against the companies themselves. In fact, about a month ago, I wrote about going long these very same stocks -- and the trades paid well quickly. But now the stocks of United Airlines (NASDAQ:UAL), Delta Airlines (NYSE:DAL) and Southwest Airlines (NYSE:LUV) will likely offer up better entry opportunities than current levels. Airline Stocks to Trade: United Airlines (UAL)United Airlines stock is cheap. It trades at an under 9x price-to-earnings ratio and 0.5 times sales. There is little fat to trim off this bone. However, this doesn't mean that the stock cannot fall.Since the bulls have fresh profits in hand, now is the best time to sit back and wait for another entry point before a new rally begins. Again, this is nothing against the company's fundamentals. As with all three opinions today, these are trading opportunities around the actual price action, not the value of the company.UAL stock chart looks vulnerable at these levels. A better entry point would be closer to $89 per share. So I would either buy the dip if and when it happens, or I would wait for a technical breakout to chase.If the United Airlines bulls can rise above $95 per share then they would invite momentum buyers. The ensuing rally would then target triple digits. But it is best to wait for a confirmation of the breakout. Delta Airlines (DAL)DAL stock rallied 15% off its earnings report. But the bad news is that it has set another lower high since its 52-week top of around $63 per share. Since it also has been setting higher lows, the range of the stock is tightening into a point. This usually gathers energy that would need to let loose. The direction of the move has yet to be determined, but we do know the lines that matter for it.The Delta bulls need to hold $56 and then $55 per share, or else they risk handing the momentum over back to the sellers. * 7 Great High-Yield Stocks With Payouts Over 5% There are a lot of fresh profits at risk. Easy money comes fast, but it also goes away at the drop of a hat. Conversely, the upside opportunity lies just above $58.50 per share. If the buyers can close above that level then they can continue the rally and breakout of the descending trend line of lower highs. If so, then the measured move would target the July highs. There will be heavy resistance near $60.50 per share. Southwest Airlines (LUV)Of the three companies here, LUV stock is the most expensive. It trades at a 13x P/E ratio which is 50% higher than either DAL or UAL. But in this case, the bulls got their money's worth. Year-to-date, LUV is up 23%, which is in line with the S&P 500 and about double the performance of the other two airline stocks.Nevertheless, this doesn't make Southwest stock a more attractive long investment here. Its chart also looks vulnerable to dips. A better entry point than now would be closer to $55 per share. It is best to either buy the dip to $55, or wait for a technical breakout to chase above $58.80.It is important to note that LUV stock is now inside a region that has been in contention for years. A breakout from those is not usually easy, but it would make for a good catalyst. If the bulls overcome the resistance, they can target a 10% rally from there.The general markets are near all-time highs, so conviction in any stock should be tempered. It won't take much to cause a correction from these altitudes, especially since Wall Street is still suffering from headline whiplash. Patience is a virtue in these airline stocks charts.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio * 5 Streaming Stocks to Buy for Huge Upside Over the Next Decade The post 3 Airline Stocks to Trade Into 2020 appeared first on InvestorPlace.
Southwest Airlines (NYSE: LUV) will begin optically scanning cargo next year to give shippers greater visibility into the status of their freight, after introducing the technology for passenger luggage in 2019, cargo chief Wally Devereaux said during a moderated discussion at FreightWaves LIVE. The Dallas-based airline hauled 200 million pounds of cargo last year and is a favorite of many freight forwarders for domestic air transport because of its reliability and speed, with about 2,000 flights per day and an extensive point-to-point network. "Historically, the number one ask from any shipper is better visibility to where the freight is," Devereaux said.
The head of the Southwest Airlines Co pilot union Wednesday sharply criticized Boeing Co and questioned whether the manufacturer was trying to speed up the timeline for the 737 MAX's return to service. Boeing's best-selling 737 MAX has been grounded since March, after two deadly crashes in five months killed 346 people, and it has come under harsh criticism from U.S. lawmakers.
Some older pavement is as thin as 14 inches, with the average being 16 inches thick, resulting in airfield assets continually needing emergency repairs. Modern airports require 20 or more inches of thickness.
Boeing hopes it can restart deliveries in December, but pilot training that will clear the jets for passenger flights isn't expected to be approved until January.
San Jose International's September passenger report is the first to reveal the impact of losing three international airlines in a four-month period in fiscal year 2018-19
Boeing may be eyeing deliveries of its long delayed 737 MAX aircraft year end, but, Air Lease Corp CEO John Plueger says it will take 24 months for all those jets to be absorbed into the global fleet.
In October, Boeing delivered 20 commercial airplanes, including three 767s, three 777s, one 747, 12 Dreamliners and one 737 Next Generation jet.
The recent and sudden aircraft groundings were the result of an urgent letter from the Federal Aviation Administration sent to Southwest's chief operating officer.
The U.S. Federal Aviation Administration (FAA) said on Tuesday it was revising its order requiring checks for structural cracks in Boeing 737 NG planes to cover a larger area after the company said additional cracks had been found. Boeing said on Tuesday after completing a round of inspections for cracking on some 737 NGs with a large number of take-offs and landings, one airplane was found to have a small crack in an adjacent location. "Boeing has asked those operators to also inspect the adjacent area to ensure any potential issue is identified and repaired," the company said in a statement.
(Bloomberg Opinion) -- The high-pressure turbine blades in a Trent 1000 passenger jet engine have to withstand temperatures far above the melting point of the nickel alloy from which they’re made. It’s a fiendish technical challenge for the engine’s British manufacturer, Rolls-Royce Holdings Plc — comparable to trying to stop an ice cube melting inside a kitchen oven on full blast. The solution found by the company’s engineers was to blow cool air through tiny holes in the blades. Unfortunately this clever approach has encountered some unexpected problems.Boeing 787 aircraft operated by British Airways, Norwegian Air Shuttle, Virgin Atlantic and others have been grounded in recent months for inspections and repairs because the Trent 1000 engine blades have been degrading faster than anticipated. It’s the type of problem that’s becoming common in the industry as the demands placed on engines become ever greater.The expense of dealing with these things is rising too. Last week, Rolls-Royce quantified the cost of fixing various Trent 1000 issues at 2.4 billion pounds ($3.1 billion), a cash outflow the debt-laden manufacturer can ill afford.Few inventions have done more to transform our life over the past century than jet engines. They’ve let people travel faster and further, and they’re remarkably safe. Passenger fatalities like the one caused by a turbine failure on a Southwest Airlines flight last year are rare. Developed at enormous expense and using innovative new materials, the most recent “powerplants” (to use engines’ industry name) are comparatively quiet and fuel efficient.Yet these innovations have taken the technology closer to its technical limits and reliability issues have crept in. “By pushing the envelope on thrust and efficiency, things have started to go wrong elsewhere in the system,” says Nick Cunningham at Agency Partners. This is worrying because companies are under pressure to build even more efficient propulsion systems to curb carbon emissions. Rolls-Royce’s problems appear the most serious — some 40 787s powered by its engines are parked — but this is an industry-wide issue. Forced to ground planes and adjust flight schedules, airlines have resorted to leasing replacement aircraft and have told engine manufacturers to pay compensation.In September Tim Clark, the boss of Emirates, said manufacturers are delivering aircraft that don’t do what was promised. “Give us airframes and engines that work from day one. If you can’t do it, don’t produce them,” he said.The laws of science aren’t the only thing testing the engine makers. Airbus SE and Boeing Co. have brought several new passenger jets to market in quick succession and their powerplant suppliers have had to ramp up production rapidly. A lot of new demand is from emerging markets where dusty or polluted air can put additional strain on engines.Airbus production was thrown into chaos last year by engine glitches involving Pratt & Whitney’s geared turbofan (GTF) for the A320neo, Airbus’s top-selling jet. More recently the launch of Boeing’s 777x wide-body aircraft was pushed to next year after the premature wearing out of a General Electric engine component.It’s one thing for an engine to miss tough production targets, but quite another for engines to fail once they’re in service. “Engine manufacturers have always had teething problems but in four decades I’ve never seen anything like the list of technical issues they’re been having lately,” says John Strickland, director of JLS Consulting. This month India threatened to ground scores of Airbus A230neo jets operated by domestic carrier Indigo unless the Pratt engines were replaced by the end of January. The warning followed several incidents of engines shutting down in-flight.In October Lufthansa AG subsidiary Swiss temporarily grounded its Airbus A220(1) fleet so the Pratt engines could be inspected after a spate of powerplant failures (the debris from one such incident was recovered from a French forest last week). Since then Canadian regulators ordered the same aircraft not to operate at full power above a specified altitude.About 70% of airlines and lessors surveyed by Citi Research said groundings caused by engine issues were a key concern. Some are looking to operate mixed fleets to lessen the risk of one engine type being grounded. While that’s prudent, it’s more expensive than using a single type of equipment.The risk for engine manufacturers is that reliability issues cost them market share. Earlier this year Air New Zealand switched an order for 787 jet engines to GE after problems with its Rolls-Royce kit. Indigo placed a $20 billion order with the GE/Safran engine joint venture rather buy from Pratt (Pratt claimed the decision was price-related).The problems haven’t affected all new technologies. Rolls-Royce’s XWB powerplant for the Airbus A350 has proven reliable so far. The core gearing innovation underpinning Pratt’s GTF also appears to work as planned; a relief because it cost about $10 billion to develop. There’s more at stake, though, than airline flight schedules and manufacturers’ pride and profitability. As with the car industry, the aerospace sector is gearing up for an epochal effort to curb carbon emissions. Aviation accounts for 2%-3% of greenhouse gas emissions but the sheer volume of plane deliveries in coming years will counteract engine efficiency gains. Aviation’s share could rise to between 10% and 25% by 2050, a Roland Berger study found. Unlike carmakers, the airlines lack viable technological alternatives. Biofuels have potential but fully electric large commercial aircraft are probably decades awayEngine manufacturers are working on still more efficient jet engine designs. Rolls-Royce claims its Ultrafan technology will deliver a 25% improvement in fuel burn compared to the first generation of Trents. Bringing these innovations to market quickly is essential from a planetary perspective but rushing development could prove counterproductive. “My sense is that public opinion in Europe at least is moving quicker than the technology,” says Rob Stallard at Vertical Research Partners.Cunningham is even less optimistic. “Gas turbines are running out of road at just the point where the political impetus is toward greater decarbonization,” he says. “Jet engines are unlikely to get a lot better from here.”(1) The plane was developed by Bombardier Inc and was known as the C-Series before Airbus acquired a majority stake.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Southwest Airlines says it will speed up inspections of dozens of used planes it bought from foreign airlines after federal regulators threatened to ground the jets because they might not meet all safety standards.
Southwest Airlines Co said Monday it will complete inspections on 38 737 airplanes it acquired from foreign air carriers by Jan. 31 that may not meet all U.S. aviation safety requirements. The planes are part of 88 pre-owned Boeing 737 aircraft Southwest bought between 2013 and 2017 from 16 foreign carriers. The speedier checks come after inspections of 39 used planes turned up previously undisclosed repairs and incorrectly completed fixes.
(Bloomberg Opinion) -- Boeing Co.’s 737 Max may be inching toward a return, but the crisis is far from over.The airplane maker said Monday that it continues to aim for Federal Aviation Administration certification of updates to the troubled Max in the current quarter, which could allow it to start delivering the jets in December. It could take several more weeks to finalize pilot-training requirements, which would mean airlines wouldn’t technically be allowed to fly the planes until January at the earliest. And then airlines would need more time on top of that to bring planes out of storage and implement said training. Southwest Airlines Co. and American Airlines Group Inc. said last week that they weren’t planning to fly the Max as part of their fleets until early March, nearly a full year after the second of two fatal crashes prompted a worldwide grounding of the plane.This is a shift from Boeing’s forecast of a fourth-quarter return for the Max. While Boeing CEO Dennis Muilenburg had warned the Max’s return may be “phased” in across geographical jurisdictions amid greater scrutiny from the European Union, it now appears that the FAA’s approval process will have multiple steps as well. In hindsight, there was a subtle wording shift in Boeing's third-quarter earnings materials to "regulatory approval for the Max return to service" in the fourth quarter, versus its language in July, which mentioned an unqualified "return to service."Still, investors viewed the news of December deliveries as a positive, and it has a clear appeal for Boeing. The debate over pilot-training requirements has the potential to get contentious with families of the victims of the two Max crashes and Canada Transport Minister Marc Garneau among those who have advocated for much more rigorous (and expensive) simulator training. And Boeing doesn’t have a lot of time to wait. The Wall Street Journal reported over the weekend that it has two months’ worth of parking space left before it will have to explore other storage options for a glut of undeliverable Max jets. In the worst-case scenario, continuing delays to the Max’s return could force it to reduce or halt production.Why the FAA would be willing to throw Boeing a bone like this is less clear. I will note that in the company’s news release updating investors on the timeline for the Max, Boeing says it’s “possible” the FAA will allow it to start delivering jets in December. Still, this is the most detailed plan yet for the Max’s return to commercial flight and can be taken as a sign that Boeing feels confident there won’t be further snags as it enters the final stages of winning the FAA’s approval for its fixes. That will be a relief after reports last week that regulators found Boeing’s documentation for a proposed software fix lacking and requested that the paperwork be resubmitted.Getting the plane back in the sky may be Boeing’s most pressing task, but it certainly isn’t the end of this story. Even with the potential to deliver Max jets before pilot training is finalized, attempting to deliver 30 to 40 planes per month while holding on to the current 42-a-month production rate could be a “logistical nightmare” in terms of costs and human capital, SunTrust analyst Michael Ciarmoli wrote in a report this week before Boeing’s timeline update. Then there’s the matter of compensation for the airlines. With major executives signaling they aren’t happy with what Boeing has offered so far, the company’s estimate for $5.6 billion in customer concessions, net of insurance, is likely to rise. Airlines may also want to be compensated for the public-relations pushes they are planning to help convince the flying public that the Max is safe to fly. American CEO Doug Parker said last week that the cost of the damage to his airline from the Max grounding “should be borne by the Boeing shareholders because this was their failure, not ours.”All of this is before you get to the lasting consequences of the Max crisis, which could range from tougher regulatory reviews to a reconsideration of the rampant consolidation governments have allowed in the aerospace industry. Also on Monday, the EU stopped the clock on its review of Boeing’s purchase of a majority stake in Embraer SA’s commercial-jet program amid concerns that it will wipe out the only remaining viable competition to Boeing and Airbus SE’s duopoly. It’s hard to fathom similar concern in the U.S., where Boeing is regarded as a national champion and lawmakers are concerned about the risks posed by Commercial Aircraft Corp. of China Ltd., or Comac. Indeed, no lawmaker pressed CEO Muilenburg on antitrust during his two days of testimony before Congress last month. But there is room to push back on Boeing’s consolidation of its supply chain. It’s not healthy for one company to have so much power and the Max crisis should force the U.S. to reckon with that. To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Boeing continues to target FAA approval of the MAX changes by the end of the year in a timeline that could impact production activity in Wichita.
Boeing Co on Monday said it expected U.S. regulators to approve the return to commercial service of its grounded 737 MAX jet in the coming weeks, and its shares jumped as investors grew more hopeful the planemaker had addressed software problems at the heart of two fatal crashes. Boeing said it expected the U.S. Federal Aviation Administration (FAA) to issue an order approving the plane's return to service next month, but added it now expected commercial service to resume in January. Boeing shares rose 5% on the company's outlook.
Low costs aid Azul's (AZUL) third-quarter performance. Meanwhile, the updates on Boeing 737 Max jets by American Airlines (AAL) and Southwest Airlines (LUV) do not bode well.
The Boeing Co.'s (NYSE: BA) troubled 737 MAX aircraft won't be back in regular operation at American Airlines (NYSE: AAL) or Southwest Airlines (NYSE: LUV) until March, the companies announced. American said in October it would return the jets to commercial service in January 2020. Southwest was to resume service in February.