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The Airline Problems Behind Travel Disruptions This Holiday Season

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2:31 a.m. Nov. 26, 2021 - By Steve Gelsi
Drug maker stocks rise but travel stocks sink on new coronavirus variantShares of airlines fell and drug makers rose in premarket trades on Friday as investors reacted to fresh travel bans related to a new variant of the coronavirus that causes COVID-19 called B.1.1.529 identified in South Africa. Meanwhile, stocks relating to 'stay-at-home' activities gained. The British government has banned flights from South Africa and five other southern African countries. The World Health Organization's technical working group is meeting Friday to discuss the variant. Pfizer advanced by 5.8%, Moderna gained 8.7%, Southwest Airlines dropped 7%, American Airlines stock slumped 7%; Expedia fell 6.8% and United Airlines dropped 7.6%. Delta Air Lines lost 7.8%, Norwegian Cruise gave up 9.6% and Royal Caribbean shares slid 10%. Netflix rose 2%.Take-Two Interactive Software rose by 1%.
10:28 p.m. Nov. 25, 2021 - By Barbara Kollmeyer
European stocks slump with travel names hard hit as investors fret over new COVID variantEuropean stocks fell sharply early Friday, with heavy losses for travel stocks and energy names after a new potentially highly contagious variant of COVID was detected in South Africa. The Stoxx Europe 600 index slid 3.8% to 465, with the German DAX down 3.5%, the French CAC 40 sliding 4.3% and the FTSE 100 index down 3.4%. The U.K. has announced it will halt travel from South Africa and several other African countries as of Friday. Shares of International Consolidated Airlines slid 10%, cruise operator Carnival slumped 16% and Deutsche Lufthansa dropped 12%. Energy names also weighed heavily as crude fell more than 5% to $73.91 a barrel. BP shares fell 8%.
7:20 a.m. Nov. 9, 2021 - By Tomi Kilgore
Hertz stock receives downbeat reception on Nasdaq, as it opens below the recent share-offering priceHertz Global Holdings Inc. received a rather downbeat reception on the Nasdaq, as the car rental company's stock opened 9.5% below where its share-offering just priced. The company said late Monday that an upsized offering by selling stockholders of priced at $29 a share, compared with previous expectations that the would price between $25 and $29 a share. The stock's first trade on the Nasdaq was at $26.25 at 12:14 p.m. Eastern for 2.82 million shares. It has since recovered slightly to trade down 6.3% at $27.19. The stock, which had traded over the counter under the ticker symbol "HTZZ" since the company emerged from bankruptcy through Monday, had closed Monday at $32.62. Before Hertz filed for bankruptcy in May 2020, the stock had traded on the NYSE under the ticker symbol "HTZ." Including it's time as an OTC stock, Hertz's stock has run up 62.2% over the past three months, while shares of rival Avis Budget Group Inc. have rocketed 242.4% and the S&P 500 has gained 5.6%.
2:40 a.m. Nov. 9, 2021 - By Tomi Kilgore
Hertz stock set to start trading on the Nasdaq, after upsized share offering priced at top of expected rangeHertz Global Holdings Inc.'s stock is set to begin trading on the Nasdaq Tuesday, after the car rental company, which emerged from bankruptcy in July, announced overnight that an upsized public offering of shares priced at the top of the expected range. The company said selling shareholders raised about $1.29 billion as 44.52 million shares were sold at a price of $29.00 a share, compared with of a 37.10 million-share offering that was expected to price between $25 and $29 a share. Hertz said it will not receive any proceeds from the share sale, but plans to repurchase from the underwriters of the offering 10.34 million shares for $300 million. Hertz's stock is expected to begin trading on the Nasdaq under the ticker symbol "HTZ," after previously trading over the counter under the ticker "HTZZ." The stock has soared 94.8% over the past three months through Monday, while the S&P 500 has tacked on 6.1%.
2:30 a.m. Oct. 28, 2021 - By Ciara Linnane
Hertz swings back to profit in Q3 as leisure travel recoversHertz Global Holdings Inc. , which emerged from bankruptcy in July, said Thursday it had net income of $571 million, or $1.13 a share, in the third quarter, after a loss of $222 million, or $1.42 a share, in the year-earlier period. Revenue doubled to $2.226 billion from $1.268 billion. The FactSet consensus was for EPS of 85 cents and revenue of $2.225 billion. The revenue number reflects "the continued rebound in leisure travel and tight fleet inventory as Hertz executes against its strategic roadmap," the rental car company said in a statement. "While volume continued to be lower compared to 2019 levels, these headwinds were partially mitigated by improvements in pricing power." The company earlier this week announced plans for an "initial" order of a total of 100,000 Teslas by the end of 2022. The company also said it would invest in new EV charging infrastructure across its global operations in a bid to offer the largest EV rental fleet in North America. It ended the third quarter with $1.5 billion in outstanding non-vehicle debt, a $1.3 billion first lien revolving credit facility and $366 million of letters of credit outstanding. It had $3.8 billion in liquidity as of Sept. 30. Shares were not yet active premarket.
2:15 a.m. Oct. 26, 2021 - By Tomi Kilgore
JetBlue stock gains after a narrower-than-expected loss, revenue that rose 4-fold to beat forecastsShares of JetBlue Airways Corp. rose 0.5% in premarket trading Tuesday, after the air carrier reported a narrower-than-expected third-quarter loss, revenue that rose four-fold to top forecasts and provided an upbeat outlook. The company swung to net income of $130 million, or 40 cents a share, from a loss of $393 million, or $1.44 a share, in the year-ago period. Excluding nonrecurring items, which would include government payroll assistance, the adjusted per-share loss was 12 cents, compared with the FactSet loss consensus of 18 cents. Revenue rose 300.8% to $1.97 billion, topping the FactSet consensus of $1.93 billion, as revenue passengers rose 321.8% to 9.08 million. Load factor increased to 79.9% from 42.6% but came up short of expectations of 82.3%, as capacity rose 134.1% to 16.17 million available seat miles. Departures increased 139.4% to 76,918. "September took the brunt of the bookings softness associated with rising case counts tied to the Delta variant," said Chief Operating Officer Joanna Geraghty. "That said, trends have stabilized and are improving. We expect robust revenue acceleration throughout the quarter as the holidays approach and demand continues to meaningfully improve." The stock has lost 8.3% over the past three months through Monday, while the U.S. Global Jets ETF has slipped 4.3% and the S&P 500 has gained 3.3%.
2:17 a.m. Oct. 21, 2021 - By Tomi Kilgore
American Airlines stock rises after a narrower-than-expected loss, as revenue nearly tripledShares of American Airlines Group Inc. rose 0.8% in premarket trading Thursday, after the air carrier reported a narrower-than-expected third-quarter loss on revenue that nearly tripled, while load factor came up short. The air carrier swung to net income of $169 million, or 25 cents a share, from a loss of $2.40 billion, or $4.71 a share, in the year-ago period. Excluding nonrecurring items, which would include benefits from government payroll support programs, the adjusted per-share loss came to 99 cents, beating the FactSet loss consensus of $1.04. Total revenue grew 182.7% to $8.97 billion, above the FactSet consensus of $8.92 billion, as passenger revenue jumped 213.3% to $7.96 billion. Load factor improved to 78.7% from 58.9% but missed the FactSet consensus of 80.9%. The company said it ended the quarter with about $18 billion of available liquidity. The company said it expects fourth-quarter revenue to be down about 20% from the same period in 2019, while the current FactSet revenue consensus of $9.30 billion implies a 17.8% decline. The stock has dropped 8.8% over the past three months through Wednesday, while the U.S. Global Jets ETF has slipped 1.8% and the S&P 500 has gained 4.1%.
1:57 a.m. Oct. 21, 2021 - By Tomi Kilgore
Southwest results beat expectations, sees 'operational challenges' in October costing $75 million in revenueSouthwest Airlines Co. reported Thursday a narrower-than-expected third-quarter loss as passenger revenue nearly tripled, as overall demand remained "quite strong" despite a deceleration in traffic in August and September as a result of surging COVID-19 cases. The air carrier's stock was little changed in premarket trading. The company swung to net income of $446 million, or 73 cents a share, from a loss of $1.16 billion, or $1.96 a share, in the year-ago period. Excluding non-recurring items, such as $763 million in benefits related to the Payroll Support Program, adjusted per-share losses came to 23 cents, compared with the FactSet loss consensus of 27 cents. Total revenue rose 161.0% to $4.68 billion, above the FactSet consensus of $4.58 billion, as passenger revenue grew 190.7% to $4.23 billion. Load factor improved to 80.7% from 44.9% but came up shy of expectations of 82.1%. For October, revenue and booking trends continue to improve, but the company sees negative impacts of $40 million from the delta variant and of $75 million as a result of flight cancellations from operational challenges. The stock has lost 6.9% over the past three months, while the U.S. Global Jets ETF has slipped 1.8% and the S&P 500 has gained 4.1%.
10:01 a.m. Oct. 14, 2021 - By Tomi Kilgore
Avis stock falls after Morgan Stanley recommends selling, saying it's too early for the 'mega-fleet bull case'Shares of Avis Budget Group Inc. dropped 2.5% in afternoon trading Thursday, after Morgan Stanley analyst Billy Kovanis recommended investors sell, saying it's too early for investors to be betting on the "mega-fleet bull case." The stock has now lost 4.8% since it closed at a record $153.39 on Tuesday, but has still more than doubled (up 103.6%) over the past three months and rocketed 291.6% year to date, while the S&P 500 has advanced just 18.1% this year. Kovanis downgraded Avis to underweight, after cutting the rating to equal weight in March 2021. Although he raised his tock price target to $110 from $85, the new target still implied about 25% downside from current levels. He said he just doesn't buy that investor suddenly view car rental as a high return-on-invested-capital (ROIC) business in the long run, and that pricing, which has been boosted recently by increased travel and lack of supply, will be permanently higher. "Pricing may very well be higher for a year or two, but we don't see this as a 3-to-5 year phenomenon," Kovanis wrote in a note to clients. He added that rental car stocks are "notably cyclical," so that means, "what goes up, must come down."
3:52 a.m. Oct. 13, 2021 - By Tomi Kilgore
Delta reports first adjusted profit since before the pandemic, but fuel price rise could pressure profitability; stock fallsShares of Delta Air Lines Inc. dropped 1.5% in premarket trading Wednesday, after the air carrier reported its first adjusted profit since the COVID-19 pandemic, and which was double what was expected, but said the recent rise in fuel prices will pressure its ability to remain profitable in the fourth quarter. Net income was $1.21 billion, or $1.89 a share, compared with $1.50 billion, or $2.31 a share, in the same period in pre-pandemic 2019. Excluding nonrecurring items, such as a $1.3 billion benefit related to government payroll support, adjusted earnings per share came in at 30 cents, beating the FactSet consensus of 15 cents. Total revenue was $9.15 billion, down 27% from the same period in 2019, but beat the FactSet consensus of $8.38 billion. Load factor fell to 80% from 88%, but beat the FactSet consensus of 78%. Capacity for the quarter was 71% of what it was in the same 2019 quarter. Adjusted fuel price was $1.94 per gallon, down 8% from the second quarter, but that is expected to rise to $2.25 to $2.40 per gallon i the fourth quarter. The company also expects fourth-quarter capacity to be 80% of 2019 levels. "Generating a profit for the quarter even with a majority of our corporate and international customers still to return is a great achievement," said President Glen Hauenstein. He expects holiday travel demand to be "robust," and expects improvement in corporate and international demand. Delta's stock has gained 8.3% year to date through Tuesday, while the U.S. Global Jets ETF has tacked on 7.2% and the S&P 500 has advanced 15.8%.
3:37 a.m. Oct. 11, 2021 - By Tomi Kilgore
Southwest's stock slumps as analyst says canceled flights could add to cost pressures, hurt labor relationsShares of Southwest Airlines Co. slumped 2.9% in premarket trading Monday, to pace the declines among its air-carrier peers, after Southwest , which the company . Analyst Savanthi Syth said she expected only a "limited financial impact and no forward demand implications" given the setbacks happened during an off-peak period and weren't limited to Southwest, but she added that because the airline had already made capacity cuts to address operational reliability the recent setback "likely adds to the related unit cost pressure and may exacerbate strained labor union relations." Meanwhile, Syth reiterated the outperform rating she's had on the stock since November. Southwest's stock selloff comes as the U.S. Global Jets ETF slipped 0.6% in premarket trading, while futures for the S&P 500 gave up 0.3%. Among other air carriers, American Airlines Group Inc. shares eased 0.3%, Delta Air Lines Inc. declined 0.5% and United Airlines Holdings Inc. shed 0.4%.
5:39 a.m. Oct. 8, 2021 - By Tomi Kilgore
Avis Budget stock surges to another record, has nearly doubled over the past three monthsShares of Avis Budget Group Inc. shot up 7.3% in morning trading Friday, putting them on track for an eighth record close in the past month, and enough to pace the Dow Jones Transportation Average's gainers. The auto rental company's stock has been by far the best performer among the Dow transports components over the past three months (up 92.4%), year to date (up 263.8%) and for the past year (up 335.3%), while the Dow transports has gained 0.9%, 16.8% and 24.2% over the same periods, respectively, and the Dow Jones Industrial Average has gained 1.0%, 13.6% and 22.3%. On a bright note for Avis, the out earlier Friday showed "notable job gains" in the leisure and hospitality and transportation sectors. And analyst Michael Linenberg at Deutsche Bank said after a recent pullback, corporate airline bookings are "once again on the upswing" and are now approaching levels last seen in early July before the most recent surge in COVID-19 cases. Growth recreational and business travel can be a good sign for car rental companies.
3:13 a.m. Oct. 7, 2021 - By Tomi Kilgore
United Airlines adding flights for the holidays given signs of pent up demandShares of United Airlines Holdings Inc. rallied 1.4% in premarket trading Thursday, after the air carrier announced an increase in its domestic flight schedule for the holidays, following signs of pent-up travel demand. The company said holiday travel searches on its website and app are up 16% from 2019. For December, the company expects to offer more than 3,500 daily domestic flights, which is 91% of the capacity compared with 2019, and the most since the COVID pandemic started in March 2020. "We're seeing a lot of pent-up demand in our data and are offering a December schedule that centers on the two things people want most for the holidays: warm sunshine and fresh snow," said Ankit Gupta, vice president of network planning and scheduling. United's stock has slipped 0.2% over the past three months through Wednesday but has climbed 16.1% year to date. In comparison, the U.S. Global Jets ETF has gained 8.2% this year and the S&P 500 has advanced 16.2%.
2:26 a.m. Oct. 7, 2021 - By Tomi Kilgore
Carnival to restart more cruises from U.S. ports in January and February, expects 100% capacity use in the springShares of Carnival Corp. rose 1.7% in premarket trading Thursday, after the cruise operator announced more cruise restarts that will increase the use of its U.S.-based capacity to 90% through February 2022. The company said late Wednesday that its Carnival Sunshine ship will restart operations from Charleston on Jan. 13 and its Carnival Liberty ship will restart from Port Canaveral on Feb. 11, adding to the 17 ships scheduled to be operating by the end of 2021. The restarts are part of the Carnival's plan to be using 100% of its cruise capacity from U.S. ports in the spring of 2022. Meanwhile, cruises on Carnival's three remaining U.S.-based ships, Carnival Ecstasy from Jacksonville, Carnival Paradise from Tampa and Carnival Sensation from Mobile, have been cancelled through February. "Our restart plan continues to excel across all metrics, and we are looking forward to completing the restart of the fleet in the new year," said Carnival Cruise Line President Christine Duffy. The stock has gained 3.4 over the past three months through Wednesday, while the S&P 500 has ticked up 0.1%.
9:38 a.m. Oct. 1, 2021 - By Victor Reklaitis
Biden to meet Friday with House Democrats on Capitol Hill following delay for infrastructure billPresident Joe Biden is slated to travel to Capitol Hill on Friday to meet with Democratic House lawmakers around 3:30 p.m. Eastern, the White House said. His visit comes after Speaker Nancy Pelosi late Thursday on a $1 trillion bipartisan infrastructure bill, a key part of Biden's agenda, as Democratic lawmakers remained unable to agree on their spending proposals.
4:03 a.m. Sept. 30, 2021 - By Ciara Linnane
Boeing and Spirit upgraded to outperform at Bernstein on expectations for recovery in air travelBernstein analysts upgraded Boeing Co. and Spirit Aerosystems Holdings Inc. to outperform on Wednesday and said they expect international traffic and aircraft demand to start to improve as COVID-19 vaccines begin to be administered in most major markets. "The story is not totally clean," a team led by Douglas S. Harned wrote in a note to clients. "Some countries (e.g. China, Vietnam, Australia) must fight against lockdown strategies that block travel when single cases arise. But, we now see paths for most major markets to reopen, with China the slowest, with its "zero tolerance" strategy and the Beijing Olympics coming in February." The analysts are expecting most major markets to get their vaccine programs running in the next six months to allow air travel to recover, barring the emergence of another new variant, which they do not expect. Boeing's stock price target was raised to $279 from $252, while Spirit's was lifted to $66 from $53. Boeing shares were up 2.3% premarket and have gained 4.7% in the year to date. The U.S. Global JETS ETF has gained 8% year-to-date, while the Dow Jones Industrial Average has gained 12%.
4:56 a.m. Sept. 24, 2021 - By Tomi Kilgore
Carnival's stock rises after Q3 business updateShares of Carnival Corp. surged 1.3% in morning trading, after the cruise operator provided an update on its third quarter. The company reported a net loss of $2.8 billion, wider than the loss of $2.1 billion in the sequential second quarter, but narrower than the $2.9 billion loss seen in the year-ago quarter. In the pre-pandemic third quarter of 2019, Carnival had net income of $1.8 billion. The adjusted third-quarter loss was $2.0 billion, compared with an adjusted loss of $1.7 billion a year ago. The company did not provide per-share loss figures. The company said the cruises operating in the third quarter were cash flow positive, and the company expects this to continue. Monthly average cash burn during the quarter was $510 million, which is better than previous guidance. Booking volumes for all cruises during the third quarter were down from the second quarter but higher than the first quarter, as concerns over the spread of the delta variant weighed on booking volumes in August. Meanwhile, cumulative advanced bookings for the second half of 2022 are "ahead of a very strong 2019." The update comes a day after Carnival said it expected to have by the end of October. Carnival's stock has lost 8.9% over the past three months, while the S&P 500 has gained 4.2%.
4:13 a.m. Sept. 24, 2021 - By Tomi Kilgore
Delta Airlines stock is a 'catalyst call buy' at Deutsche Bank, as recent underperformance should flip to outperformanceDeutsche Bank analyst Michael Linenberg has launched a "short-term catalyst call buy" on Delta Air Lines Inc.'s stock Friday, saying he believes the underperformance so far this year will flip to outperformance in the coming months. The stock has edged up 5.9% year to date through Thursday, while the NYSE Arca Airline Index has climbed 16.9% and the S&P 500 has advanced 18.5%. Linenberg said this underperformance has come despite Delta being one of the most leveraged to corporate and long-haul international travel, which he believes will start seeing better demand. And with the last few months of the year being good time to own the airline sector -- the airline seasonal trade has worked in 16 out of the past 20 years -- Linenberg believes "Delta will be a favored name among 'new money' investors given that it is viewed as one of the highest quality names in the sector." The stock was down 0.8% in premarket trading.
4:21 a.m. Sept. 23, 2021 - By Tomi Kilgore
Carnival to have over half of its cruise ships sailing again by the end of OctoberShares of Carnival Corp. climbed 2.1% in premarket trading Thursday, after the cruise operator said it expects to have more than 50% of its cruise capacity operating by the end of October. The company said it also targets 65% of capacity returning to operation by the end of the year. The company said to date, eight of its nine cruise brands have resumed sailings, and those eight brands have announced that they will be operating 42 ships by the end of October, which is more than half of Carnival's global fleet capacity. "Based on our initial restart of guest cruise operations across eight brands, it is clear from our guests that there is tremendous confidence in our brands, our health and safety protocols, and the return of cruising as one of the world's most popular vacations," said Chief Communications Officer Roger Frizzell. Carnival's stock has dropped 16.1% over the past three months through Wednesday, while the S&P 500 has gained 3.6%.
5:06 a.m. Sept. 20, 2021 - By Tomi Kilgore
Airline stocks outperform, amid hopes U.S. will lift the EU travel ban 'soon'The airline sector fell, but outperformed amid , after reports that President Biden will soon lift the travel ban on Europeans, which was put in place early in the COVID-19 pandemic by former president Donald Trump. Stavros Lambrinidis, the European Union Ambassador to the U.S., , "Hope there'll be a positive announcement soon." The U.S. Global Jets ETF slipped 0.6%, while the S&P 500 shed 1.4%. Among the more-active U.S. air carriers, shares of American Airlines Group Inc. rose 0.9%, Delta Air Lines Inc. eased 0.5% and United Airlines Holdings Inc. slipped 0.5%. The Biden administration agreed with its European Union officials to lift travel restrictions for vaccinated citizens, , citing three senior EU officials.
2:34 a.m. Sept. 9, 2021 - By Tomi Kilgore
JetBlue cuts third-quarter revenue outlook, stock fallsShares of JetBlue Airways Corp. shed 0.8% in premarket trading, after the air carrier joined its peers in warning that third-quarter revenue would be weaker than previously expected because of the recent uptick in COVID-19 cases. The company now expects third-quarter revenue to be down 6% to 9% from the same period in pre-pandemic 2019, compared with previous guidance of a decline of 4% to 9%; the current FactSet revenue consensus of $1.90 billion implies a 9.0% drop. The company said the bookings softness it is currently seeing is extending into the fourth quarter, although it expects leisure demand for peak holiday travel "will hold up relatively well." JetBlue also expects third-quarter capacity to be down 1% from the same period in 2019, compared with previous expectations of flat to down 3%. "JetBlue continues to expect a choppy and non-linear demand recovery and may not be able to predict changes to revenue due to additional COVID-19 related disruptions or other factors," the company stated. The stock has slumped 21.9% over the past three months through Wednesday, while the U.S. Global Jets has declined 15.0% and the S&P 500 has gained 7.0%.
1:50 a.m. Sept. 9, 2021 - By Ciara Linnane
Southwest Airlines warns of continued soft bookings, elevated cancellations due to COVID and Hurricane IdaSouthwest Airlines Co. shares slid 1.3% in premarket trading Thursday, after the airline warned that it is still seeing softness in bookings and elevated cancellations, mostly due to the rise in COVID-19 cases caused by the highly infectious delta variant. The company said August operating revenue performed near the low end of its guidance range, due to a pullback in leisure passenger traffic and trip cancellations. "August 2021 managed business revenues decreased approximately 64 percent compared with August 2019, relatively in line with July 2021 managed business revenues down approximately 63 percent compared with July 2019, as business demand stalled in August 2021 following several months of sequential improvements," the company said in a regulatory filing. The weak trends have persisted through September and are expected to remain in October, while managed business bookings are expected to remain relatively stable compared with August. Travel demand for Labor Day was "solid," but with higher-than-expected cancellations due to Hurricane Ida. "Based on current bookings, the Company is experiencing fairly typical booking patterns for holiday travel periods in fourth quarter 2021," the airline said. The company is expecting its third-quarter load factor to range from 80% to 85%, and for its October load factor to range from 75% to 85%. Shares have gained 3% in the year to date, while the S&P 500 has gained 20%.
6:09 a.m. Aug. 23, 2021 - By Tomi Kilgore
Cruise stocks rally after FDA approval of Pfizer COVID-19 vaccineShares of cruise operators rallied Monday, as the Food and Drug Administration's full approval of the COVID-19 vaccine developed by Pfizer Inc. and partner BioNTech SE boosted hopes for increased vaccination rates. Carnival Corp.'s stock ran up 2.6%, Norwegian Cruise Line Holdings Ltd. shares climbed 3.0% and Royal Caribbean Group tacked on 1.1%. In comparison, the S&P 500 advanced 0.9%. The companies have required its staff and guests on most of their cruises to be vaccinated. Acting FDA Commissioner Janet Woodcock said the FDA approval of the Pfizer-BioNTech vaccine " ."
7:20 a.m. Aug. 17, 2021 - By Tomi Kilgore
Online travel booker stocks fall amid growing concerns over surging COVID cases Shares of online travel services companies were broadly lower Tuesday, with many hitting multi-month lows, as fueled fears of potential travel restrictions. The ETFMG Travel Tech ETF dropped 3.5%, and has shed 7.5% amid a 4-day losing streak, putting it on track for the lowest close since Dec. 23, 2020, as 32 of 34 equity components lost ground. In comparison, the S&P 500 declined 0.9%. Among some of the ETF's online-booker components, shares of Expedia Group Inc. slid 1.7%, TripAdvisor Inc. dropped 3.0%; Despegar.com slumped 6.4% and Trivago N.V. tumbled 8.0%, all toward six-month lows, while Booking Holdings Inc. slipped 1.1%, but was above the July 19 closing low of $2,067.55. Shares of Travelzoo , which provides travel information, declined 5.3%, and Sabre Corp. , which provides travel-booking technology, lost 1.4%. Elsewhere, shed 2.6%, and has lost 6.1% amid a four-day losing streak, while cruise operator Carnival Corp.'s stock lost 3.2%, and has dropped 8.0%, also amid a 4-day loss streak.
2:37 a.m. Aug. 12, 2021 - By Tomi Kilgore
JetBlue completes first transatlantic customer-carrying flightShares of JetBlue Airways Corp. edged up 0.3% in premarket trading Thursday, after the air carrier's first transatlantic flight was completed. The company said it kicked off its transatlantic service with new nonstop service between New York City's John F. Kennedy International Airport to London's Heathrow Airport, with the first "customer-carrying" flight landing Thursday morning at 10 a.m. local time. "With JetBlue now connecting New York and London, travelers finally have the ability to enjoy low fares while also experiencing superior service," said Chief Executive Robin Hayes. "As the U.K. opens to travelers coming from America, our flights are well timed to meet the pent up demand for travel between our two countries. We look forward to welcoming U.K. travelers to the U.S. soon and launching service between Boston and London next year." JetBlue's stock has gained 8.9% year to date through Wednesday, while the U.S. Global Jets ETF has tacked on 5.0% and the S&P 500 has advanced 18.4%.
3:03 a.m. Aug. 9, 2021 - By Tomi Kilgore
Hertz reports adjusted profit and sales that more than doubled, in 1st report since emerging from bankruptcyHertz Global Holdings Inc. reported Monday second-quarter that mroe than doubled from a year ago, citing strong leisure travel demand and tighter fleet inventory, in the auto rental company's first quarterly report since emerging from bankruptcy on June 30. The net loss for the quarter to June 30 narrowed to $168 million, or $1.05 a share, from $847 million, or $5.86 a share, in the year-ago period. Excluding nonrecurring items, such as $633 million of reorganization expenses, the company swung to adjusted earnings per share of $2.55 from a per-share loss of $3.51. Total revenue rose 125.1% to $1.87 billion, as Americas revenue grew 202.6% to $1.64 billion and international revenue increased 84% to $230 million. "With resurgent demand and tight supply across the industry, we remained agile in managing our fleet to meet customers' needs," said Chief Executive Paul Stone. "At the same time, we benefited from the important operational and financial improvements we made through our restructuring process." The stock, which trades over the counter, closed Friday at $16.44, down 39.1% since closing at $26.99 on July 1, the first day since emerging from bankrupty.
2:16 a.m. Aug. 6, 2021 - By Tomi Kilgore
Norwegian stock slips after narrower-than-expected loss, but revenue and cash burn missedShares of Norwegian Cruise Line Holdings Ltd. slipped 0.7% in premarket trading Friday, after the cruise operator reported a narrower-than-expected second quarter loss but revenue that was a bit light and cash burn that topped guidance. Net losses came to $717.8 million, or $1.94 a share, after a loss of $715.2 million, or $2.99 a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss was $1.93, compared with the FactSet loss consensus of $1.97. Revenue fell 74% to $4.4 million, missing the FactSet consensus of $10.0 million, as passenger ticket revenue declined 89% to $1.58 million and onboard and other revenue fell 10% to $2.78 million. Monthly average cash burn for the second quarter was $200 million, above previous guidance of $190 million, as the company prepared for a return to service this summer. The company expects third-quarter monthly average cash burn of $285 million, given the continued phased relaunch of cruises. Norwegian Cruise's stock has shed 13.1% over the past three months through Thursday, while the S&P 500 has gained 5.4%.
9:55 a.m. Aug. 4, 2021 - By Claudia Assis
U.S. air-travel rebound stalls, Citi saysAn uptick in domestic air travel, mostly related to leisure travel, has stalled, Citi analyst Stephen Trent said in a note Wednesday. "The booking curve over the last seven days shows weaker U.S. domestic trends vs. 2019," with revenue from August travel down about 35%, softer by about 15 percentage points and 20 percentage points compared with a month ago, and September down about 20%, lower by 20 percentage points to 25 percentage points. While the real-time daily air passenger counts in the U.S. "remain strong," including a pandemic-era high of more than 2.2 million passengers on Aug. 1st, "it is possible that concerns about new variants, western wildfires/droughts and the seasonal roll-off in personal travel are driving some near-term volume softness," he wrote. In late trading Wednesday, shares of all major U.S. airlines traded down on Wednesday, with Delta Air Lines Inc. down nearly 4%, United Airlines Holdings Inc. losing 2.9%, and American Airlines Group Inc. falling 2.4%. The S&P 500 index fell 0.3%.
2:25 a.m. July 27, 2021 - By Tomi Kilgore
JetBlue revenue rises 7-fold to beat forecasts as consumer confidence, travel demand improvesJetBlue Airways Corp. reported Tuesday a narrower-than-expected second-quarter loss and revenue that rose seven-fold from a year ago to beat forecasts as the air carrier saw further month-on-month improvement in travel. The company swung to net income of $64 million, or 20 cents a share, from a loss of $320 million, or $1.18 a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss of 65 cents beat the FactSet loss consensus of 74 cents. Revenue grew 597.7% to $1.50 billion, from $215 million a year ago, and beat the FactSet consensus of $1.44 billion. Load factor improved to 79.2% from 33.8%, topping the FactSet consensus of 75.6%, as traffic increased 1,223.7% to 10.80 billion revenue passenger miles and capacity grew 465.6% to 13.65 billion available seat miles. "In the second quarter, we saw strong signs that consumer confidence and travel demand is returning, with second quarter revenue doubling compared to the first quarter driven by pent-up demand," said Chief Executive Robin Hayes. The stock, which slipped 0.1% in premarket trading, has gained 10.5% year to date through Monday, while the U.S. Global Jets ETF has tacked on 5.5% and the S&P 500 has advanced 17.7%.
2:20 a.m. July 22, 2021 - By Tomi Kilgore
American Airlines adjusted loss narrows more than expected, as revenue jumps more than 4-foldAmerican Airlines Group Inc. reported Thursday an adjusted loss that narrowed more than expected, revenue that more than quadrupled to beat forecasts and daily cash burn turned positive as the post-COVID-19 recovery continues. The stock slipped 0.4% in premarket trading, after soaring 12.8% over the past two days. On a net basis, the air carrier swung to income of $19 million, or 3 cents a share, from a loss of $2.07 billion, or $4.82 a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss narrowed to $1.69 from $7.82, beating the FactSet loss consensus of $2.03. Total revenue climbed 361% to $7.48 billion, above the FactSet consensus of $7.32 billion. Load factor improved to 77.0% from 42.3%, matching expectations, as traffic jumped to 42.02 billion revenue passenger miles from 7.23 billion RPM and capacity grew to 54.56 billion available seat miles from 17.08 billion ASM. The company took in an average of $1 million in cash per day, and ended the second quarter with a record $21.3 billion of total available liquidity. The stock has run up 35.7% year to date through Wednesday, while the U.S. Global Jets ETF has gained 4.4% and the S&P 500 has advanced 16.0%.
2:06 a.m. July 22, 2021 - By Ciara Linnane
Southwest Airlines swings to Q2 profit thanks to PSP program as revenue tops estimatesSouthwest Airlines Co. said Thursday it had net income of $348 million, or 57 cents a share, in the second quarter, after a loss of $915 million, or $1.63 a share, in the year-earlier period, when travel stalled during the global pandemic. The profit was driven by a $724 million offset of salaries and other benefits related to the receipt of proceeds from the Payroll Support Program, a federal relief program for airlines. Excluding that offset, the company had an adjusted loss of 35 cents a share, wider than the 23 cents loss consensus estimate of FactSet analysts. Revenue rose to $4.008 billion from $1.008 billion, topping the $3.939 billion FactSet consensus. "Second quarter 2021 marked an important milestone in the pandemic recovery as leisure travel demand surged," Chief Executive Gary C. Kelly said in a statement. The company generated net income in June, to mark its first monthly profit without the benefit of temporary salary and benefit relief since the start of the pandemic, he said. The rapid ramp-up in travel demand has proved a challenge and the company is now focused on bring back workers and improving operations. Jet fuel prices are also significantly higher and expected to remain so in the third quarter. "To support the return of flight activity, we expect to recall the vast majority of our Employees early from voluntary time-off by the end of third quarter 2021, which is expected to reduce our prior forecasted savings from voluntary leave programs beyond second quarter 2021," said Kelly. The company's load factor stood at 82.9% in the second quarter, while available seat miles were up 86.8%. The company is expecting capacity to rise 49% in the third quarter as travel demand continues to improve. Shares were down 1% premarket, but have gained 14% in the year to date, while the U.S. Global JETS ETF has gained 4% and the S&P 500 has gained 16%.
4:01 a.m. July 20, 2021 - By Tomi Kilgore
Carnival stock bounces after plans to have nearly 75% of cruise capacity operating by year endShares of Carnival Corp. bounced 1.9% in premarket trading Tuesday, after the cruise operator said it expects to operate 65% of its total fleet capacity by the end of 2021. The company also announced plans in which it envisions its Carnival Cruise Line brand's entire fleet could return to service this year, which would increase the total operating capacity to nearly 75% by year end. For its North America brands, Carnival Cruise Line has resumed cruises with three ships sailing out of U.S. ports, and intends to have 15 ships in operation by the end of October and its entire fleet cruising by year end. Princess Cruises will resume operations out of two U.S. ports this weekend, and expects to have six ships operating by the end of the year. Seabourn has resumed cruises with two ships, sailing from Greece and Barbados, and expects to add a third ship sailing to begin the Antarctica season in November. "With strong ongoing demand for cruising, we look forward to serving our guests with additional ships announced across eight of our brands and nearly three-quarters of our fleet capacity returning by the end of this year, marking an important milestone for our company and all those who rely on the strong economic impacts generated by the global cruise industry," said Chief Communications Officer Roger Frizzell. The stock has tumbled 25.2% as it lost ground in 10 of the past 11 sessions to close Monday at a 5 1/2-month low. It has lost 9.0% year to date, while the S&P 500 has gained 13.4%.
5:37 a.m. July 19, 2021 - By Tomi Kilgore
TSA data shows post-pandemic record travelers on SundayAirline stocks , but travelers have so far been undeterred by rising COVID-19 cases as a the number of travelers rose to a post-pandemic record over the weekend. Transportation Security Administration throughput data showed that 2,227,704 travelers went through TSA checkpoints on Sunday, the most since Feb. 28, 2020, which was more than a week before . And the three-day total of 6,407,500 travelers, from Friday through Sunday, was the most since the three-day stretch ended Feb. 28, 2020. Meanwhile, the U.S. Global Jets ETF dropped 4.8% toward a six-month low, as the S&P 500 tumbled 1.8%. Among the Jets ETF's more active U.S.-based components, shares of American Airlines Group Inc. shed 6.2%, United Airlines Holdings Inc. slid 6.2% and Delta Air Lines Inc. dropped 5.1%.
4:23 a.m. July 19, 2021 - By Tomi Kilgore
Airline stocks suffer broad selloff as surge in delta variant stokes fears of potential travel restrictionsAirline stocks were suffering a broad selloff ahead of Monday's open, amid and as a surge of the delta variant of the coronavirus that causes COVID-19 increases . The U.S. Global Jets ETF sank 3.6% in premarket trading, putting it on track for a sixth-straight daily decline, and to extend a seven-week losing streak through Friday in which the ETF has tumbled 16.5%. Among the ETF's components, shares of American Airlines Group Inc. slumped 5.2% premarket, after sinking 18.6% amid a six-week losing streak; United Airlines Holdings Inc. slid 5.1%, after tumbling 21.1% amid a 7-week losing streak; and Delta Air Lines Inc. dropped 4.2%, after losing 13.8% amid a 5-week losing streak. Elsewhere, shares of Southwest Airlines Co. gave up 3.8% premarket, JetBlue Airways Corp. declined 5.4% and Spirit Airlines Inc. fell 5.3%. The selloff in air carrier stocks comes as futures for the S&P 500 dropped 1.3%.
11:50 a.m. July 15, 2021 - By Claudia Assis
Alaska tweaks Q2 guidance, sees capacity dropping furtherAlaska Air Group Inc. said late Thursday it expects its capacity to decline a bit more than it expected for its second quarter, as compared with 2019, and that it expects second-quarter revenue to drop 33%, the lower end of a previously expected decline between 33% and 35%, also as compared with 2019. Capacity dropped 21% in the quarter, compared with expectations of about 20%, Alaska said in a filing. From the beginning of the pandemic, "the recovery path has been volatile and difficult to predict," Alaska said. Second-quarter operating cash flow results, however, were better than expected thanks to strength in demand for future travel, improvements in affinity partner cash flows as consumers spent more than in 2019, and other working capital tailwinds, the airline said. Shares of Alaska were flat in the extended session Thursday after ending the regular trading day down 1.1%. Alaska is expected to report second-quarter results on July 22.
2:54 a.m. July 15, 2021 - By Tomi Kilgore
Delta Air Lines stock bounces off 5-month low after double upgrade at Raymond JamesShares of Delta Air Lines Inc. bounced 0.9% in premarket trading Thursday, after the air carrier was double upgraded by analyst Savanthi Syth at Raymond James, who said the stock was "too hard to ignore at current levels." The upgrade comes after the stock slumped 1.6% to close Wednesday at the lowest price since Feb. 3, as concerns over the pace of the travel recovery . Syth raised her rating two notches to strong buy, after being at market perform since November 2020. Her $58 stock price target implies a 43% gain from Wednesday's close of $40.68. "[T]he recent leg down in U.S. airlines shares may be more interest rate/inflation-related spillover to value, but we expect improving fundamentals to prevail particularly given our favorable view on business demand recovery," Syth wrote in a note to clients. She said that while other air carriers provide exposure to business demand recovery without the risk of further delays in international market reopenings, "we find [Delta's stock] too hard to ignore at current levels." The stock has dropped 13.1% over the past three months through Wednesday, while the U.S. Global Jets ETF has shed 12.7% and the S&P 500 has gained 4.9%.
2:43 a.m. July 14, 2021 - By Tomi Kilgore
Delta Air Lines stock rallies after narrower-than-expected loss, revenue beat by nearly $1 billionShares of Delta Air Lines Inc. rose 1.6% in premarket trading Wednesday, after the air carrier reported a narrower-than-expected second-quarter loss as revenue fell less than forecast, amid "accelerating demand" for air travel. Net income fell to $652 million, or $1.02 a share, from $1.44 billion, or $2.21 a share, in the same period in prepandemic 2019. Excluding nonrecurring items, such as benefits related to government payroll support programs, the company swung to a per-share loss of $1.07 from earnings per share of $2.35 in 2019, but beat the FactSet loss consensus of $1.38. Revenue dropped 43% from 2019 to $7.13 billion, above the FactSet consensus of $6.20 billion, as passenger revenue fell 53% to $5.33 billion but topped expectations of $5.01 billion. Load factor fell to 69% from 88%, just shy of the FactSet consensus of 69.8%. For the third quarter, the company expects total revenue to be down 30% to 35% from 2019 levels. "Domestic leisure travel is fully recovered to 2019 levels and there are encouraging signs of improvement in business and international travel," said Chief Executive Ed Bastian. "We are also opportunistically acquiring aircraft and creating upside flexibility to accelerate our capacity restoration in 2022 and beyond in a capital-disciplined manner." Delta's stock has edged up 2.8% year to date through Tuesday, while the U.S. Global Jets ETF has gained 3.9% and the S&P 500 has climbed 16.3%.
9:35 a.m. July 13, 2021 - By Dave Sebastian
Norwegian Cruise Line sues Florida surgeon general over ‘vaccine-passport’ ban The cruise operator plans to restart U.S. cruises in August with a 100% vaccination policyNorwegian Cruise Line Holdings Ltd. has sued Florida’s surgeon general, challenging the state’s barring of businesses from requiring proof of COVID-19 vaccination and intensifying the standoff between the company and Florida.
4:04 a.m. July 9, 2021 - By Tomi Kilgore
United Airlines to add more flights to warm-weather destinations in the U.S., Mexico and CaribbeanShares of United Airlines Holdings Inc. bounced 1.8% in premarket trading Friday, after the air carrier is taking advantage of the "resurgence" in travel as the recovery from the COVID-19 pandemic continues, by saying it was adding nearly 150 flights to warm-weather cities in the U.S., and boosting service to Mexico, the Caribbean and Central America. The stock's rally comes after it fell 6.4% amid a four-day losing streak through Thursday. United said it will fly 137 more flights than it did in 2019 to Arizona, California, Florida, Georgia and Nevada starting November through March 2022, and will increase service by 30% compared with 2019 to Latin beach and leisure markets. "Celebrating the holidays with family and loved ones in 2020 was a challenge, and we know our customers are already eager to plan winter vacations and gatherings in person this year to make up for time that they lost," said Ankit Gupta, vice president of network planning at United. "As pandemic restrictions ease, people are becoming more confident in planning travel further in advance, so we want to make sure to offer our customers as much choice as possible." Despite the bounce, United's stock is on track for a sixth-straight weekly loss, which would be the longest such streak in nine years. It has shed 15.0% over the past three months through Thursday, while the U.S. Global Jets ETF has slid 14.2% and the S&P 500 has gained 4.7%.
5:19 a.m. July 7, 2021 - By Tomi Kilgore
Amtrak to invest $7.3 billion to upgrade aging train fleetAmtrak said Wednesday it was making a $7.3 billion investment to "transform" rail travel, as the passenger train service looks to replace its aging fleet with "state-of-the-art" equipment. Amtrak said it was contracting California-based Siemens Mobility Inc. to make up to 83 multi-powered trains, with options for up to 130 additional trains. "This investment is essential to preserving and growing our Northeast Regional and state-supported services and will allow our customers to travel comfortably and safely, while deeply reducing criteria pollutants," said Amtrack Chief Executive Bill Flynn. The new trains will feature more comfortable seats, individual power outlets and USB ports, Wi-Fi and a more contemporary food service offerings. Amtrak said some of the new trains will be the first with hybrid battery operations.
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