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Launching Into 2021's Second Half

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1:52 a.m. Dec. 8, 2021 - By Tomi Kilgore
Southwest Airlines stock rallies after revenue outlook raised, fuel cost estimate cutShares of Southwest Airlines Co. surged 1.3% in premarket trading Wednesday, after the air carrier raised its outlook for fourth-quarter revenue and cut its estimate for fuel costs. The company now expects revenue for the current quarter to be down 10% to 15% from the same period in pre-pandemic 2019, compared with previous guidance for a decline of 15% to 25%. Guidance for fuel costs per gallon was lowered $2.15 to $2.25 from $2.25 to $2.35. The company kept its outlook for load factor unchanged at 80% to 85% and for capacity to be down about 8% from 2019. "Leisure travel demand was strong for the Thanksgiving holiday," the company said in an investor presentation. "Based on current trends, leisure bookings continue to come in above expectations for December travel, and managed business revenues are expected to recover to down 55% to down 60% in December versus 2019 levels." The stock, which has bounced 6.3% since closing at a 13-month low on Dec. 1 through Tuesday, has shed 6.1% over the past three months while the U.S. Global Jets ETF has lost 5.9% and the S&P 500 has gained 3.8%.
2:01 a.m. Nov. 9, 2021 - By Tomi Kilgore
SeaWorld stock set to fall after profit and revenue missed expectations, while attendance beatShares of SeaWorld Entertainment Inc. were indicated down about 2% in premarket trading Tuesday, after the theme park operator reported third-quarter earnings that fell short of forecasts, as all theme parks were open without COVID-19-related capacity limitations but international travel restrictions limited group-related attendance. The company swung to net income of $102.1 million, or $1.28 a share, from a loss of $79.2 million, or $1.01 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.66. Total revenue jumped nearly fivefold to $521.2 million from $106.1 million, but was below the FactSet consensus of $536.6 million. Attendance of 7.2 million was down from 8.1 million in the same quarter of pre-pandemic 2019, but topped the FactSet consensus of 6.6 million, while total revenue per capita of $72.13 was up 23.7% from 2019 and above expectations of $61.00. "Our pricing and product strategies, along with the strong consumer demand environment, continued to drive higher realized pricing and strong guest spending in the quarter," said Chief Executive Marc Swanson. The stock has soared 117.7% year to date, while the S&P 500 has gained 25.2%.
4:21 p.m. Nov. 8, 2021 - By Claudia Assis
Virgin Galactic sells space-tourism seats faster than it anticipatedVirgin Galactic Holdings Inc. stock edged lower in the extended session Monday after the space-tourism company reported a wider quarterly loss and said its $450,000 space-tourism seats are selling faster than it anticipated. Virgin said it lost $48 million, or 32 cents a share, in the third quarter, compared with a loss of $92 million, or 41 cents a share, in the third quarter of 2020 and FactSet consensus of a loss of 28 cents a share. The company had $2.6 million in revenue, compared with FactSet expectations of revenue around $1.4 million. Virgin Galactic said it is on track to launch its private-astronaut commercial service in late 2022. "Demand for space travel is strong, and we've been selling seats ahead of the pace we had planned," Chief Executive Michael Colglazier said in a statement. "This demonstrates the incredible market for our product and appreciation for the value of the unique experience we offer." Virgin had targeted the sale of 1,000 reservations before the launch of space-tourism service, and about 700 of these have been sold, the company said. The current price of $450,000 a seat "has been well received," Virgin Galactic said. Virgin and has sold about 100 seats since.
1:24 a.m. Nov. 8, 2021 - By Tomi Kilgore
Marriott Vacations swings to Q3 profit that beats expectations, says current quarter 'has started well'Marriott Vacations Worldwide Corp. reported Monday that it swung to a third-quarter profit that beat expectations, while revenue rose in line with forecasts, as contract sales nearly tripled to reach within 3% of pre-pandemic 2019 levels. The vacation ownership company's stock was still inactive in premarket trading. Net income was $10 million, or 23 cents a share, after a loss of $62 million, or $1.51 a share, in the year-ago period. Excluding nonrecurring items, the company swung to adjusted earnings per share of $1.60 from a per-share loss of 81 cents, while the FactSet consensus was for EPS of $1.41. Total revenue grew 62.1% from a year ago to $1.05 billion, matching the FactSet consensus, while contract sales jumped 171.4% to $380 million, with first-time buyers representing 30% of contract sales. Average revenue per member increased 16.8% to $42.95. "The fourth quarter has started well with October contract sales above 2019 levels and reservations on the books for the first half of next year are already strong," said Chief Executive Stephen Weisz. The stock has rallied 18.3% over the past three months through Friday while the S&P 500 has gained 5.9%.
2:28 a.m. Nov. 4, 2021 - By Tonya Garcia
Wayfair shares sink after revenue missWayfair Inc. shares dropped 5.2% in Thursday premarket trading after the online home goods seller swung to a third-quarter loss and reported revenue that missed expectations. Net losses totaled $78.0 million, or 75 cents per share, after net income of $173.2 million, or $1.67 per share, last year. Adjusted EPS of 14 cents beat the FactSet consensus for a penny per share. Revenue of $3.121 billion was down from $3.839 billion and below the FactSet consensus of $3.238 billion. "As various geographies reopened post-pandemic, consumers naturally shifted some spend towards travel and entertainment and from e-commerce towards brick and mortar," said Chief Executive Niraj Shah in a statement. "Demand and interest in the home remains resilient, but it will take a few more quarters for our growth - and e-commerce growth in general - to get back to normal." Active customers rose to 29.2 million from 28.8 million. And average order value was up to $283 from $243 last year. Wayfair brands include the namesake, Joss & Main, and AllModern. Wayfair stock has gained 19% for the year to date while the S&P 500 index is up 24% for the period.
2:14 a.m. Nov. 3, 2021 - By Ciara Linnane
Marriott revenue tops estimates and says it expects pickup in October to continueMarriott International Inc. beat revenue estimates for the third quarter on Wednesday, and said a pickup in business in October as the delta variant of the coronavirus began to wane is expected to continue. The company posted net income of $220 million, or 67 cents a share, for the quarter, up from $100 million, or 31 cents a share, in the year-earlier period. Adjusted per-share earnings came to 99 cents, matching the FactSet consensus. Revenue climbed to $3.946 billion from $2.254 billion, ahead of the $3.713 billion FactSet consensus. CEO Anthony Capuano said worldwide revenue per average room (RevPAR) was down 26% compared to the third quarter of 2019, before the outbreak of the pandemic, a better result than the 44% decline seen in the second quarter. Occupancy topped 58% thanks to strength in leisure demand. "Globally, leisure travel generally remained very strong throughout the quarter, while the Delta variant had the most impact on business transient demand. With the worst of the Delta variant wave now hopefully behind us, business transient demand picked up again in October, a trend we expect to continue," the executive said in a statement. Marriott is not offering guidance because of the continued uncertainty relating to the pandemic. Shares were slightly lower premarket, but have gained 21% in the year to date, while the S&P 500 has gained 23%.
3:21 a.m. Oct. 29, 2021 - By Tomi Kilgore
Royal Caribbean reports wider-than-expected loss and revenue miss, but bookings show significant improvementShares of Royal Caribbean Group slipped 0.6% in premarket trading Friday, after the cruise operator reported a wider-than-expected loss and revenue that came up short of forecasts, but said booking volumes have improved "significantly" since the delta-variant induced slowdown over the summer. The net loss for the quarter to Sept. 30 was $1.42 billion, or $5.59 a share, after a loss of $1.35 billion, or $6.29 a share, in the year-ago period, as the weighted average number of shares outstanding increased 18.9%. Excluding nonrecurring items, adjusted losses per share narrowed to $4.91 from $5.62 and but missed the FactSet loss consensus of $4.39. The company swung to revenue of $456.96 million, after negative revenue of $33.69 million last year, but was below the FactSet consensus of $567.0 million, as passenger ticket revenue grew 87-fold to $280.15 million but missed expectations of $487.8 million. The company said as of Friday, 40 ships from the company's five brands, or 65% of its capacity, have resume sailing. Bookings were above second-quarter levels with particular strength in September, as new bookings for 2022 sailings for the month more than 60% higher than the monthly average for the second quarter. The stock has gained 5.3% over the past three months through Thursday, while the S&P 500 tacked on 4.0%.
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.
1:16 a.m. Oct. 27, 2021 - By Tomi Kilgore
Hilton swings to in-line profit, revenue rises above forecasts as comparable RevPAR nearly doublesShares of Hilton Worldwide Holdings Inc. edged up 0.1% in premarket trading Wednesday, after the hotel chain swung to a third-quarter profit that was in line with expectations, while revenue rose above forecasts, as comparable revenue per available room (RevPAR) nearly doubled. The company swung to net income of $240 million, or 86 cents a share, from a loss of $79 million, or 29 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to 78 cents, matching the FactSet consensus. Revenue grew 87.5% to $1.75 billion, topping the FactSet consensus of $1.70 billion. Systemwide comparable RevPAR increased 98.7% from a year ago, but declined 18.8% from the same period in 2019. "We are pleased with our third quarter results which continue to reflect recovery from the adverse impact of the COVID-19 pandemic," said Chief Executive Christopher Nassetta. "Leisure travel remained strong and business travel continued to pick up during the quarter." The stock has rallied 12.4% over the past three months while the S&P 500 has gained 3.9%.
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%.
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%.
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%.
8:42 a.m. Sept. 16, 2021 - By Tomi Kilgore
American Express stock rises to pace the Dow's gainers after BofA backs away from bearish stanceShares of American Express Co. rose 0.8% in afternoon trading Thursday, enough to pace the Dow Jones Industrial Average gainers, after BofA Securities analyst Mihir Bhatia backed away from from his bearish view on the charge card and travel-related services company, citing a now "balanced" risk-reward profile. The stock has lost 4.6% since the end of July, while the SPDR Financial Select Sector ETF has gained 3.4% and the S&P 500 has tacked on 1.4%. Bhatia attributed the stock's recent underperformance to fears that the recent spike in COVID-19 cases would slow the economic recovery and hurt AmEx's billings. "However, at a conference appearance this week, [AmEX] noted that [quarter-to-date] total billings are up 3% vs. 2019 levels (an acceleration from -2% in 2Q)," Bhatia wrote in a research note. "This was better than feared." He added that while a slower recovery and higher corporate taxes are remain near-term risks, the company is likely to also benefit from increased travel spending, particularly by large businesses, in 2022.
9:40 a.m. Sept. 9, 2021 - By Tomi Kilgore
Marriott stock gains after CEO sees 'stabilization' in RevPAR in SeptemberShares of Marriott International Inc. rose 1.0% in afternoon trading Thursday after the hotel operator indicated that business has stabilized following some weakness in August as a results of . Speaking at the Bank of America Gaming & Lodging Conference, Marriott Chief Executive Anthony Capuano revenue per available room (RevPAR) for August is expected to be down 27% from 2019 levels, a slight worsening from the 23% decline seen in July, as COVID-19 infections increased. But after the "slight retrenchment" in RevPAR in August, Capuano said "we are seeing some stabilization in the early days of September," according to a FactSet transcript. He added that while business transient demand may not return as quickly as expected, as the rise in COVID-19 cases has slowed the return of employees to the office, he said of the Pfizer Inc. and BioNTech SE COVID-19 vaccine and the return of in-person schooling at more and more school districts "is great news for us." Marriott's stock has slipped 6.0% over the past three months, while the S&P 500 has gained 6.5%.
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%.
1:21 a.m. Aug. 19, 2021 - By Tomi Kilgore
Despegar.com reports narrower-than-expected loss, as gross bookings rise 10-foldDespegar.com Corp. reported a second-quarter loss that narrowed more than expected, and revenue that topped forecasts, as bookings increased roughly 10-fold as COVID-19 related travel restrictions were lifted. Shares of the provider of online travel services in Latin America were still inactive in premarket trading. The net loss narrowed to $31.1 million, or 46 cents a share, from $57.1 million, or 82 cents a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss was 32 cents, beating the FactSet consensus of 35 cents. Revenue swung to positive $63.1 million from negative $9.7 million, above the FactSet consensus of $56.6 million. Gross bookings totaled $488.9 million, up from $48.9 million, with the biggest growth in Mexico, but the company said government restrictions on mobility continued to have a negative impact on the travel industry. "Recovery trends continued, as the overall level of Gross Bookings reached 44% of pre-pandemic levels," said Chief Executive Damian Scokin. The stock has declined 12.7% over the past three months, while the S&P 500 has gained 6.9%.
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%.
9:46 a.m. Aug. 4, 2021 - By Tomi Kilgore
Royal Caribbean stock falls toward longest post-pandemic losing streakShares of Royal Caribbean Group dropped 3.0% in afternoon trading Wednesday, putting them on course for the longest losing streak since the , after the cruise operator reported on revenue that well a lot more than forecast, and amid concerns over the potential impact of the delta variant of the coronavirus. The stock has now shed 10.6% during its seven-session losing streak, which would be the longest since the 10-day stretch of losses that ended on Feb. 27, 2020. Chief Financial Officer Jason Liberty said, according to a FactSet transcript of the post-earnings conference call with analysts that while July marked the second-highest booking month of the year, as it relates to the delta variant, "we have mainly seen small variations with closer-in bookings in markets with high case counts." And Chief Executive Richard Fain said that the third and fourth quarters "will continued to be painful," but said bookings have been "generally in line" with return-to-service and occupancy expectations. The stock has slumped 14.0% over the past three months, while the S&P 500 has gained 6.0%.
1:13 a.m. July 29, 2021 - By Tomi Kilgore
Hilton's stock slips after swinging to profit that beat expectations, but missing on revenueShares of Hilton Worldwide Holdings Inc. fell 0.8% in premarket trading Thursday, after the hotel chain swung to a second-quarter profit that beat expectations, but revenue that came up short. Net income was $130 million, or 46 cents a share, after a loss of $430 million, or $1.55 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to 56 cents, above the FactSet consensus of 40 cents. Revenue climbed 135.6% to $1.33 billion, the most since the first-quarter of 2020, but was below the FactSet consensus of $1.42 billion. Revenue per available room (RevPAR) more than tripled from a year ago to $73.03, above expectations of $67.80. "The broader distribution of vaccinations and the easing of travel and other restrictions have allowed for renewed interest in travel and tourism, with families embarking on long-delayed trips, and businesses scheduling in-person meetings again," said Chief Executive Christopher Nassetta. "While the pace of recovery varies by region, particularly with the uncertainty surrounding coronavirus variants, we expect continued strength in leisure demand and further upticks in business travel to drive continued resurgence in the back half of the year." The stock has rallied 16.4% year to date through Wednesday, while the S&P 500 has advanced 17.2%.
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%.
9:20 a.m. July 22, 2021 - By Tomi Kilgore
Airbnb's stock extends bounce after BTIG analyst turns bullish, cites 'appealing' buying opportunityShares of Airbnb Inc. gained 0.6% in afternoon trading, putting them on track for a third-straight gain, after BTIG analyst Jake Fuller turned bullish on the home-rental company, saying the recent selloff has created an "appealing entry point" for a "best-in-breed" online travel agent (OTA). The stock has now bounced 6.2% since closing Monday at a seven-month low of $131.88, which was 39% below the Feb. 11 record close at $216.84. He raised his rating to buy, after being at neutral since Airbnb went public in December. "[Airbnb's stock] wasn't interesting to us >$200 in February, but at <$140 with revenue estimates up significantly...we see an opportunity to own a unique (few brands have become a verb/noun) and compelling (>90% of traffic direct) model," Fuller wrote in a note to clients. The FactSet consensus for 2021 revenue has increased to $5.29 billion from $4.69 billion at the end of February, and represents 57% growth from 2020. "We can't say how a COVID resurgence might impact travel, but can say that [Airbnb] is better situated than peers to deal with it," Fuller wrote. He noted that Airbnb's bookings fell less that its peers and have fully recovered to 2019 levels, which others are still below pre-pandemic levels. The stock has slipped 4.6% year to date, while the S&P 500 has gained 16.3%.
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%.
1:14 a.m. July 22, 2021 - By Tomi Kilgore
Dow swings to profit, revenue beats expectations as prices riseShares of Dow Inc. edged up 0.5% in premarket trading Thursday, after the chemicals company swung to a second-quarter profit and reported revenue that rose above expectations, boosted by sharp local price increases amid stronger demand. Net income was $1.93 billion, or $2.51 a share, after a loss of $217 million, or 31 cents a share, in the year-ago period. Excluding nonrecurring items, operating earnings per share was $2.72, beating the FactSet consensus of $2.47. Sales jumped 66.2% to $13.89 billion, above the FactSet consensus of $13.13 billion, as all three business segments topped sales expectations. Local price increased 70% in packaging and specialty plastics, rose 53% in industrial intermediates and infrastructure and grew 16% in performance materials and coatings. "Our second quarter results reflected strong demand in all our value chains and regions as we achieved substantial growth in sales and earnings both sequentially and year-over-year," said Chief Executive Jim Fitterling. "Looking ahead, we expect earnings momentum from additional improvements in consumer spending, international travel and industrial production." The stock has gained 7.6% year to date through Wednesday, while the Dow Jones Industrial Average has advanced 13.7%.
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%.
3:09 a.m. July 12, 2021 - Barrons.com
Launching Into 2021's Second HalfBarron's reporters Carleton English, Al Root and Lisa Beilfuss break down bank earnings, inflation concerns and hawkish rhetoric from the Fed, respectively. Plus, the latest on the billionaire space race and a top tech CEO's unique take on the cloud.
7:25 a.m. July 6, 2021 - By Tomi Kilgore
American Express stock paces the Dow's winners after Goldman analyst turns bullishShares of American Express Co. rose 0.7% toward a record close in midday trading Tuesday, after Goldman Sachs analyst Ryan Nash turned bullish on the financial and travel services company, citing expectations of a "big pickup" in consumer spending. The stock was the biggest advancer among the three of 30 Dow Jones Industrial Average members gaining ground. Goldman's Nash upgraded AmEx to buy from neutral, as his $225 stock price target implied a near-33% gain from current levels. While AmEx (AXP) has laid out expectations to reach its original goals for 2020 in 2022, with the economy improving meaningfully and "a big pick-up in consumer spending" since AXP gave this guidance in January 2021, he believes the company is poised to exceed its original 2020 expectations of earnings per share of $8.85 to $9.25 by 2022, given accelerating consumer spending, improving small and medium business spending and benign credit. "In fact, we believe AXP has the potential to see ~$10.00 in EPS in 2022 and double-digit growth beyond then as the multi-year recovery in [travel and entertainment] as well as robust growth in goods and services makes up for 'lost ground' in 2020," Nash wrote in a note to clients. The stock's gain comes as the SPDR Financial Select Sector ETF slumped 1.7% in midday trading and the Dow dropped 367 points, or 1.1%. The stock last closed at a record of $169.45 on June 25.
2:15 a.m. June 23, 2021 - By Tomi Kilgore
Winnebago stock gains after record results beat expectations, as towable revenue nearly tripledShares of Winnebago Industries Inc. rose 0.7% in premarket trading Wednesday, after the recreational vehicle company swung to a fiscal third-quarter profit that beat expectations, as revenue more than doubled to record levels. For the quarter to May 29, the company reported net income of $71.3 million, or $2.05 a share, after a loss of $12.4 million, or 37 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to $2.16, beating the FactSet consensus of $1.77. Revenue rose 138.7% to $960.7 million, well above the FactSet consensus of $836.8 million. Towable revenue nearly tripled, rising 194.2% to $555.7 million to top the FactSet consensus of $409.5 million, while motorhome revenue increased 89.2% to $385.3 million to beat forecasts of $356.5 million. Gross profit as a percentage of total revenue improved to 17.7% from 8.0%. The stock has gained 11.0% year to date through Tuesday, while the S&P 500 has advanced 13.1%.
1:44 a.m. June 23, 2021 - By Tomi Kilgore
Clear Secure's IPO terms could value company at up to $4.3 billionClear Secure Inc. has set terms for its initial public offering, in which the New York-based provider of safer and easier travel experiences could be valued at up to $4.34 billion. The company is looking to raise up to $396.0 million as it is offering 13.20 million shares in the IPO, which is expected to price between $27 and $30 a share. The company expects to have a total of 144.8 million shares outstanding after the IPO, including Class A, Class B, Class C and Class D shares. The stock is expected to list on the NYSE under the ticker symbol "YOU." Goldman Sachs, J.P. Morgan, Allen & Co. and Wells Fargo Securities are the lead underwriters. The company recorded a pro forma net loss of $10.8 million on revenue of $230.8 million in 2020, after a loss of $54.2 million on revenue of $192.3 million in 2019. The company is looking to go public at a time that the Renaissance IPO ETF has edged up 0.5% year to date, while the S&P 500 has advanced 13.1%.
1:17 a.m. June 8, 2021 - By Tomi Kilgore
Park Hotels provides business update amid as leisure demand trends acceleratePark Hotels & Resorts Inc. said Tuesday it has increased the number of its hotels that are open to 55, or 93% of its total of 59 hotels, and 86% of its total room count. The hotel operator's stock was still inactive in premarket trading. As of May 2021, occupancy was 40.7% at its 52 hotels, up from 37.0% in April, but down 20.1% from May 2019. Revenue per available room (RevPAR) in May was up 1,325.3% from a year ago, but down 61.7% from two years ago, after April RevPAR was up 1,305.3% from a year ago but down 65.9% from April 2019. "Leisure demand trends continue to accelerate at a faster pace than we had initially anticipated, with impressive pricing power seen in most of our resort assets, while early indications of group booking activity and business transient travel should translate to a broader based recovery across all demand segments over the back half of 2021 and well into 2022," said Chief Executive Thomas Baltimore. Park's stock has rallied 26.4% year to date while the S&P 500 has gained 12.5%.
8:46 a.m. June 4, 2021 - By Tomi Kilgore
GE CEO Culp sees Q2 aviation shop visits in line with Q1, but sees a 'step down' in marginsShares of General Electric Co. shed 1.0% in afternoon trading Friday, as Chief Executive Larry Culp spoke at the Bernstein Strategic Decisions Conference. The stock has now slipped 2.8% since closing at a three-year high of $14.35 on May 27. Regarding the aviation business, Culp said, according to a FactSet transcript, that the industrial conglomerate is positioning to be "ready for the snapback" in air travel that is expected, as vaccine rollouts lead to diminished lockdown measures. Meanwhile, Culp said he expects shop visits "to more or less be in line" with the sequential first quarter, but sees a "step down" in margins as GE works through some contract margin reviews. However, Culp said there is no change to the full-year outlook, "that's really predicated on the second-half recovery," which he thinks he sees "taking root." GE's stock has run up 29.1% year to date, while the SPDR Industrial Select Sector ETF has climbed 18.8% and the S&P 500 has gained 12.5%.
3:20 a.m. June 3, 2021 - By Ciara Linnane
American Airlines still sees Q2 system capacity down 20% to 25%, revenue down about 40% American Airlines Group Inc. said Thursday it still expects second-quarter system capacity, as measured per total available seat miles, to be down 20% to 25%, and for revenue to be down about 40% compared with the second quarter of 2019, the year before the pandemic decimated travel. The airline said it has seen continued strength in net bookings and load factors, however. As of June 2, the seven-day moving average of net booking was about 90% of where it was in the same period in 2019, while the domestic load factor for May was about 84% and greater than 88% over the Memorial Day weekend. "The company presently expects this strength in bookings to continue through the end of the second quarter and into the third quarter and, assuming continuation of current trends, expects leisure yields to approach or exceed the corresponding 2019 levels during the peak summer travel period," American said in a regulatory filing. "Although business demand continues to be weak, the company is starting to see increased demand among small and medium sized enterprises and certain large corporate customers." The company generated cash in May for the first time since the start of the outbreak and expects to end the second quarter with liquidity of more than $20 billion, compared with prior guidance of $19.5 billion. The airline will focus on debt reductions and optimizing its balance sheet, including through the use of cash on hand or the potential issuance of about $800 million of common stock through an ATM (at the market) program. Shares were down 1.5% premarket but have gained 64% in the year to date, while the U.S. Global JETS ETF has gained 22% and the S&P 500 has gained 12%.
3:19 a.m. June 3, 2021 - By Tomi Kilgore
Sabre sees May air bookings down 62% from 2019Sabre Corp. disclosed Thursday that May air booking were down 62% from the same month in 2019, as global travel trends continue negatively affected by the COVID-19 pandemic. The travel and tourism services provider said passengers boarded were down 44%. Meanwhile, hotel bookings have seen the "strongest improvement," with gross hotel central reservation system transactions down 35%. The stock rose 0.1% in premarket trading, to buck the selloff in the broader stock market, as futures for the S&P 500 shed 0.8%.
2:27 a.m. May 25, 2021 - By Ciara Linnane
United Airlines raises Q2 guidance as demand shifts closer to 2019 levelUnited Airlines Holdings Inc. raised guidance for the second quarter on Tuesday, after it said it has seen an acceleration in ticketed yields for the quarter to levels similar to 2019, the year before the coronavirus pandemic crimped travel. In a regulatory filing, the airline said domestic leisure yields are now ahead of where they were in the same period in 2019. It now expects total revenue per available seat mile to be down around 12% for the quarter, compared with previous guidance of down about 20%. However, because of reduced flying to India and Israel, United expects second-quarter capacity to be down at least 46%, compared with earlier guidance of down 45%. The company is still expecting domestic leisure yields for summer travel to exceed 2019 levels. "Business demand continues to be significantly depressed, though bookings for business travel are starting to recover," said the filing. "As a result of these trends the company now expects third-quarter 2021 adjusted EBITDA to be positive." Shares rose 0.9% premarket and have gained about 30% in the year to date, while the U.S. Global JETS ETF has gained 17.6% and the S&P 500 has gained 11.7%.
1:49 a.m. May 19, 2021 - By Tomi Kilgore
Southwest April revenue and load factor was in line, sees continued improvement in travel demandSouthwest Airlines Co. disclosed Wednesday that April operating revenue and load factor were in line with expectations, and said it continues to see improvement in leisure passenger demand and bookings for May and June travel. The air carrier said based on current bookings, leisure fare levels for June 2021 are expected to near June 2019 levels. The stock fell 1.6% in premarket trading, amid a selloff among its peers and the broader stock market. For April, operating revenue was down 42% from pre-pandemic 2019 levels, compared with the previous estimate of down 40% to 45%, while load factor of 79% compared with expectations of 75% to 80%. For May, the revenue estimate is unchanged at down 35% to 40% while the load factor estimate improved to 85% from 75% to 80%. Southwest cut its average daily cash burn estimate for the second quarter to $1 million to $3 million from $2 million to $4 million, citing expectations of improving revenue trends that more than offset higher fuel prices. The company still expects to achieve breakeven average cash flow, or better, in June. The stock's selloff comes as the U.S. Global Jets ETF dropped 1.7% and S&P 500 futures shed 0.8% ahead of the open.
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