Lufthansa delays €9 billion rescue deal after EU attempts to force it to give up slots at Frankfurt and Munich airports
Careful investors should consider taking some profits.
American will first offer voluntary options to employees and will implement involuntary reductions if there is not enough take-up, Elise Eberwein, executive vice president of people and global engagement said in the letter. United Airlines Holdings Inc has also said it will need to reduce its management and administrative staff by about 30% once U.S. government payroll aid expires in the fall.
A dire economic forecast from the Bank of England didn’t get in the way of gains for London stocks on Thursday, with rising oil prices lifting big energy names and retailers also getting a lift.
The U.S. Global Jets ETF is soaring amid investor optimism about states reopening their economies. Yahoo Finance's Akiko Fujita and ETF Trends CEO Tom Lydon discuss.
Shares of General Electric Corp. fell in very active trading to a 29-year low on Wednesday, as sentiment toward the airline industry continued to sour with the impact on travel from COVID-19 pandemic expected to linger for years to come.
JetBlue Airways on Thursday defended itself against accusations from a group of Democratic senators who called out the air carrier out for cutting wages and hours.
Shares of airlines took a dive Monday, after Warren Buffett said he sold off his large stakes in four air carriers, and after Air Canada gave a downbeat assessment of the overall industry amid the coronavirus pandemic.
Warren Buffett shed some light on why Berkshire Hathaway dumped a chunk of his holdings in the airline sector early last month.
The biggest tech companies in the world are shining during an otherwise harrowing earnings season, as cloud businesses get a boost from the spike in working from home and revenue stays resilient.
The Transportation Department informed 15 airlines late Friday that it will allow them to cancel flight service to about 60 cities where there is little demand for flights. However, no city will be left without service altogether.The destinations are mostly in secondary markets that could be served by other nearby airports.American Airlines (AAL), for example, will be permitted to stop flying to Aspen and Vail, Colorado, as well as Worcester, Massachusetts.The Transportation Department stated that it reserved the right to reverse any decision, however, if it were to result in “inadequate capacity or connectivity” to a destination.As part of the CARES Act, the federal stimulus package passed in March, any airline that receives federal assistance is required to maintain a minimum number of flights to locations that it had served before the pandemic. Thus, Friday's announcement comes as a welcome relief to struggling airlines.The outbreak of Covid-19 has wreaked devastation on the aviation industry. Passenger flight demand currently is just 5% of what it was at this time last year, though flight data shows demand trickling upwards of late.Of the $50 billion in financial assistance for airlines, American Airlines received about $12 billion. At the time, American Airlines CEO Doug Parker put out a video for investors in which he said, "I am confident that those funds, along with our relatively high available cash position, will allow us to ride through even the worst of potential future scenarios.”Analyst sentiment on American, however, has been grim. J.P. Morgan analyst Jamie Baker recently wrote: “In our opinion, the margin for error for American management to navigate this crisis outside of the courts is growing uncomfortably thin (and dependent on factors outside of management control, i.e. duration of the virus, traffic recovery cadence, further government support)..."After spending most of 2019 in the low $30's, American stock is now priced below $10, closing on Friday at $9.70. American has a Hold consensus, with 4 Buys, 5 Holds, and 8 Sell recommendations, and a 12-month price target of $13.92. Yet given American Airlines' steep fall, that still represents $44% potential upside. (See American Airlines stock analysis on TipRanks).Related News: Ryanair Cuts Traffic Target By Almost 50% For Coming Year, Seeks To Reduce Boeing Plane Deliveries Boeing Gets No Orders in April, Customers Cancel 737 MAX Jets Colombian Carrier Avianca Files for Bankruptcy Protection Due to Coronavirus Woes More recent articles from Smarter Analyst: * Data Center Set to Send Nvidia Stock Soaring Even Higher * Google Pay App May Face Anti-Trust Probe In India – Report * Trump Threatens Twitter After It Labels His Tweets "Potentially Misleading" * General Electric Surges 8% Amid Sale Of Lighting Unit To Savant
According to a new assessment from risk assessment firm RapidRatings, the U.S. airline most in danger of going bankrupt is American Airlines. Rapid Ratings CEO James Gellert joins Yahoo Finance’s On The Move panel to discuss.
U.S. leisure travelers often buy airfare months ahead of departure, betting they can score a deal with shrewd advance planning. But in these atypical times, that may not be the best strategy — provided they want to fly what they bought. That's because many airlines have not yet decided what they're going to fly more […]
Last week I wrote that this was the end of the Warren Buffett era as Berkshire (BRK)(BRK) underperformed the S&P 500 (SPX) over the entire 2009-2020 bear market. Many Buffett fans responded by saying don’t count Buffett out yet because when (not if) the market tanks again, he’ll have more than $130 billion in cash to scoop up bargains. Based on Berkshire’s SEC filings, three of Buffett’s biggest recent investments—Kraft Heinz (KHC) , Occidental Petroleum (OXY) , and airline stocks—have lost at least $7 billion altogether out of an investment of roughly $10 billion in each.
David Merkel, the longtime investor behind the Aleph Blog, still holds a stake in Berkshire Hathaway, but it’s smaller than it used to be—and it could get even smaller if the recent trend holds.
As it anticipates a restart to its core rideshare business amid the pandemic, Uber plans to require drivers and riders to wear face masks or face coverings when using the platform in certain countries, including the United States, CNN Business has learned.
This is what flying during the pandemic looks like: Las Vegas airport adds PPE vending machines
Shares of airlines took flight Tuesday, amid growing investor optimism over the easing of COVID-19 related lockdown restrictions and as government data showed a continued increase in air travelers.
A number of industries have been absolutely pummeled by the novel coronavirus pandemic. With the exception of cruise lines, few have taken it on the chin the way airlines have. International and domestic air travel has plummeted, and the future of air travel looks far from promising. American Airlines (NASDAQ:AAL) shares have dropped by as much as 70% since February. That would make them tempting to buy on the cheap if there was a clear path to recovery. But there isn't. Even after hobbling together a week of 9% gains, AAL stock is still way too risky.Source: GagliardiPhotography / Shutterstock.com Airlines and cruise lines are in a similar boat at the moment (pardon the pun). Both saw their business -- carrying passengers -- gutted by the novel coronavirus pandemic. Companies in both sectors have seen their stock value collapse. Both are hanging by a thread, hoping for a future return to normalcy.The vultures are circling both sectors. On May 5, Norwegian Cruise Lines (NYSE:NCLH) publicly raised the possibility of bankruptcy. Globally, several airlines have already declared bankruptcy as a result of the pandemic, including Flybe and Virgin Australia.InvestorPlace - Stock Market News, Stock Advice & Trading TipsU.S. airlines have a huge problem that the cruise lines don't. While cruise lines are docking their ships to wait out the storm, U.S. airlines must continue flying. Even with passenger volume down by as much as 95% compared to pre-pandemic levels. Part of their fleet can be grounded, but service must continue, and that means huge operational costs continue. American Airlines has reportedly been burning through $70 million a day since the crisis began. * 7 Tech Stocks That Are Bolstered by Contact Tracing Initiatives Is it any wonder AAL stock is sitting at lows not seen since 2013? What About Government Bailouts?Cruise lines were ineligible for government funding under the CARES Act. Incorporating offshore brought them big tax advantages, but cost them any shot at receiving assistance.Airlines did get money. Of the $2 trillion in funding, $58 billion was earmarked for keeping the airlines afloat. American Airlines received a $4.1 billion grant and $1.7 billion in loans. But the assistance came with big catches. Companies accepting CARES funding are banned from share buybacks for the term of the loan plus one year, and can't issue dividends. In addition, the government funds are aimed at keeping staff employed. And to be eligible, airlines must keep flying domestically, which brings us back to those killer operating costs. The 'New Normal' for Air Travel Doesn't Look PrettyAmerican Airlines is taking measures to reduce risk, and to reassure passengers that it is safe to fly. In May, it began distributing face masks and sanitizing wipes to passengers. Flight attendants were required to wear face masks. Food and beverage service was suspended on domestic flights. Its planes have been undergoing thorough cleaning after every flight, including disinfecting any surfaces passengers may have touched. Social distancing is enforced in airports, at ticket counters and during boarding.All of these measures mean added cost. Some are intrusive enough to have the opposite effect and discourage some passengers from flying. In addition, there is pressure for additional safety measures ranging from passenger temperature checks to flying planes with seats empty to provide distance between passengers.Until an effective COVID-19 vaccine is brought to market and the pandemic brought under control, none of this may be enough. Robert Reich, a noted University of California at Berkeley professor told CNBC:"Many people are not going to feel safe going back to crowded airplanes … until they see that the number of new deaths from the virus has gone down to almost none in their region, or until there is a vaccine or much better ways of tracing and isolating who has it." It's not just flying for pleasure that faces a bleak future.Business travel is also at risk. Companies that instituted work from home policies and travel bans as the coronavirus hit the U.S. are discovering they saved a lot of money. As a result, the future of airlines may include significantly less business travel, as companies adopt cost-effective alternatives like video conferencing instead. Bottom Line on AAL StockTouching $10, AAL stock is trading slightly above its $9.04 close on May 15. That was its low point for 2020, by the way. Even during the worst of the March market selloff, the stock was performing better. The current price combined with a 9% gain over the past week might convince you now is the time to scoop up American Airlines shares.However, doing so assumes things won't get worse for American. Based on the continued havoc being wreaked by the coronavirus and the bleak prospects for air travel under the "new normal," I certainly wouldn't make that bet. Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post American Airlines Stock Is Still Too Risky Despite Supposed Resurgence appeared first on InvestorPlace.
The airline's stock is much more affordable than it was a few months ago. Does that make it a good buy?
Boeing is laying off over 6,700 of its U.S. workers, with "several thousand” more layoffs planned. Yahoo Finance’s Emily McCormick and Akiko Fujita discuss.
Airlines' improved cash flow and cost-control measures helped them with enough capital to tide over the crisis, and now with improved traffic, things are certainly looking up for airliners.
Shares of General Electric Co. dropped Monday, after a downbeat outlook from billionaire investor Warren Buffett, and as the company’s Aviation business said it would cut as many as 13,000 jobs this year as effects of the coronavirus pandemic are expected to …
Yahoo Finance’s Emily McCormick joins Akiko Fujita to discuss the outlook on air travel as states begin to reopen.
When the novel coronavirus pandemic first escaped the borders of Hubei province, China, the broader travel industry took the brunt of the damage. However, recent photos of packed airliners suggest that the travel industry is back. Is this a sign that it's time to invest in Southwest Airlines (NYSE:LUV) and LUV stock?Source: Ryan Fletcher / Shutterstock.com In short, no. While we'd like to believe that states gradually reopening their economies will magically restore demand, the situation is much more complicated.For example, going back to those images of air passengers packed in like sardines, New York Times contributor Niraj Chokshi has a very logical explanation: airliners are simply eliminating a majority of their flights. Therefore, more passengers fly fewer routes, resulting in the congestion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, those photos are smoke and mirrors. Airliners like Southwest are still very much distressed, making LUV stock a risky venture. * 7 Excellent Penny Stocks Ready to Roar Naturally, those who have to fly don't like the idea of sitting next to hundreds of strangers, even if it's a matter of financial necessity for the airline industry. As our own Chris Markoch explained, the new normal has created heightened demand for premium economy seating. And to respond to this demand, Southwest does indeed offer such an option.However, Markoch points out that the company is "a little behind the curve" relative to other carriers, such as United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). That's not surprising because Southwest has always appealed to people's budgets first. Passengers who want to pay more for premium services aren't exactly the discount leader's primary customers, leaving some questions for LUV stock. The Economy Is Still a Problem for LUV StockEarly into this crisis, the biggest concern frequent fliers had was contracting Covid-19. Even before the pandemic, everybody knew that boarding an airplane was a biological crapshoot. With so many people from all over the country (or the world) crammed into a tight space, you're bound to catch something eventually.Despite states beginning the slow process of restoring some semblance of normalcy, fear remains. 83% of Americans say they are concerned removing stay-at-home orders and social distancing restrictions will lead to an increased number of infections. But many also find themselves stuck with the impossible decision of picking either health or livelihood.Over a long enough time frame, neglecting one will impact the other. However, when it comes to flying, if you don't have to do it, you don't. Out of the tough choices we've had to make during the pandemic, this one is a no-brainer.Therefore, it's imperative for the viability of LUV stock that the coronavirus fades as quickly as possible. But should that happen, I'm afraid the airline industry would still have a long road ahead. Because once the health crisis fades, we'll likely still have to deal with an economic calamity.According to the latest jobless claims report, 2.4 million Americans sought unemployment benefits. Over a nine-week period, nearly 39 million workers have filed for aid. Click to EnlargeSource: Chart by Josh Enomoto Media pundits will tell you that the silver lining in this utterly terrible data is that the rate of those seeking benefits have declined conspicuously. Mathematically, this is correct. But contextually, this last jobless claims report is probably the worst.I say this because now we're talking about claims from high-paying jobs. When the coronavirus first impacted our economy, the service industry (restaurants, hotels, movie theaters) all shut down at roughly the same time; hence, the huge spike in late March/early April.Those service sector jobs are now beginning to be refilled as states reopen. Logically, the bulk of the new initial claims are coming from industries which have previously escaped the turmoil. And if well-paying, middle class jobs are now getting the axe, that is not good news for LUV stock, particularly because those consumers are Southwest's bread and butter. Waiting It Out Is Still the Smart PlayThe way I see it, airliners have two big unknowns facing them: when will passengers feel biologically safe flying and when will they feel economically safe about purchasing tickets?If you think about it, this right here proves how ugly the sector looks today. In any other circumstance, being asked just one of these questions would be enough to deter most investors. Today, Southwest and its ilk have their own impossible dilemma to address.Though I'm bearish on the outlook for LUV stock in the near-term, I will concede that speculators, if they get it right, stand a chance of gaining massive profits. Plus, this industry could turn into a game of musical chairs. If so, Southwest's comparatively robust financials could buy it some critical time.Ultimately though, most investors want to limit their variables. Certainly, they want to limit or eliminate paradigm-shattering ones. Unfortunately, Southwest, alongside sector competitors, is gazing into the abyss. Until we get a firmer picture of what we're up against, I believe sentiment will be negative for LUV stock.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Southwest Airlines Squares Off With Biological and Economic Headwinds appeared first on InvestorPlace.
Qingyan 'Yan' Chen joins Yahoo Finance's Alexis Christoforous and Brian Sozzi to discuss how COVID-19 could change future plan designs, how passengers can stay safe, his work with Boeing on a future ventilation system and more.
[Editor's Note: "Wait For Another Pullback Before Buying AAL Stock" was originally published April 22, 2020. It is regularly updated to include the most relevant information.]Source: GagliardiPhotography / Shutterstock.com Novel coronavirus headwinds continue for American Airlines (NASDAQ:AAL). Since the outbreak first hit China, AAL stock has cratered from around $30 per share to under $10 per share. But, could a low share price mean a solid "bottom-fishing" opportunity?It depends. Airline stocks have moved higher in recent days, on optimism for a post-pandemic recovery. But, keep in mind the many fleas on this legacy carrier. Even before the pandemic affected air travel.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs I previously discussed, American Airlines already had a heavy debt load and other operating issues.And despite the company receiving $5.8 billion in payroll support from the $2 trillion CARES Act stimulus package, they could burn through billions more as the airline industry remains effectively grounded.The worst of the coronavirus in America may already be over. But, it could be years before airline stocks like American start rebounding again. With this in mind, today's prices may not be enough to justify a buy in the near-term.Yet, that doesn't completely rule out American Airlines as a buy at lower prices. Let's dive in, and see why a "wait-and-see" approach may be the best way to play this hard-hit airline stock. Slow Recovery Means More Bad News for AAL StockThings may be starting to "return to normal." But, don't take that to mean smooth sailing ahead for the U.S. economy. The damage caused by the pandemic and its associated shutdowns could linger on throughout the year. And that's especially the case for the airline industry.There are many reasons why the stimulus package is far from being a "silver bullet" for American and the other airlines. Firstly, airlines continue to burn through cash at a rapid clip. This airline alone anticipates losing $70 million a day through June. In other words, over $2 billion a month, or $6 billion a quarter. Losses are expected to come down this summer, but will still be in the billions per month.Also, don't expect travelers to return to the skies right away. As our own Louis Navellier recently pointed out, the airline industry's "new normal" doesn't look too pretty. Social distancing and safety efforts are going to make air travel unattractive for quite some time.This may explain why industry leaders like Airbus (OTCMKTS:EADSY) CEO Guillaume Faury say it could be "three to five years" before the industry recovers. With a long road to recovery, it's tough to be confident in the near-term prospects for American. Darkest Before the Dawn?Things sound bleak for American Airlines. Yet, with the share price falling below $10 per share, the stock could be bottoming out. Buying while the stimulus package was underway in late March would have been a terrible time to enter a position. The stock soared from around $10 per share to prices above $16 per share. At that price level, the risk/return proposition is not in your favor.But, if shares retest prices in the single-digits, are the odds on your side? As InvestorPlace's Tom Taulli wrote last month, it's likely American Airlines survives coronavirus. Mainly because Washington won't want to see an airline file for Chapter 11.Yet, with Boeing (NYSE:BA) CEO Dave Calhoun predicting an airline bankruptcy in 2020, this risk should be top of mind. And considering American's weak financials, this airline could be the leading candidate.In short, the current darkness may not be signalling that dawn is near. And at today's valuation, risk of bankruptcy (which would wipe out shareholders) may not be fully priced into the stock. Wait-and-See Is the Key With AAL StockWhen I last wrote about American Airlines stock, I said it was too early to buy but too late to go short. But now, I'm a bit more bearish. With Warren Buffett recently selling his airline stocks, and aviation industry leaders calling for continued challenges, we may have yet to see the bottom.Nevertheless, don't see this to mean, "American stock is heading to zero." Granted, air travel could remain depressed for several years.Yet, large-scale bankruptcies are the last thing the current administration wants. Especially in a re-election year. With this in mind, the downside may be lower than one would expect for a hard-hit sector like airlines.Bottom line: wait for American Airlines shares to head lower before entering a position. At prices far in the single-digits, the potential price appreciation could more than make up for the risk.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Wait for Another Pullback Before Buying American Airlines appeared first on InvestorPlace.
Industry insiders at these airlines are buying up shares of their companies.
Data from the Transportation Security Administration (TSA) show the number of travelers that went through TSA checkpoints on Thursday topped 300,000 for the first time in two months, but was still down significantly from a year ago. The daily average per week through Saturday is on track to show improvement for the fourth-straight week. Total TSA traveler throughput reached 318,449 on May 21, down 88% from a year ago, but up 38% from Wednesday. The daily throughput was the highest since March 23, and was nearly four times the COVID-19 pandemic low of 87,534 recorded on April 14. The daily average for the week to date has increased to 247,455, the highest since the week ended March 22. Meanwhile, airline stocks fell Friday, with the U.S. Global Jets ETF shedding 1.8%, to underperform the S&P 500 , which was down 0.2%. Among the more active Jets components, shares of United Airlines Holdings Inc. shed 2.3%, Delta Air Lines Inc. dropped 2.5% and American Airlines Group Inc. declined 1.2%.
Delta (DAL) expects to add around 200 flights in June and another 200 or 300 flights in July on modest improvement in travel demand.
Lufthansa delays €9 billion rescue deal after EU attempts to force it to give up slots at Frankfurt and Munich airports
Shares of airline companies surged in premarket trading Tuesday, amid growing optimism that air travel will resume shortly. The U.S. Global Jets ETF shot up 8.0%, outpacing the gain in futures for the S&P 500 , which rose 1.9%. Among the more active airline stocks ahead of the open, shares of United Airlines Holdings Inc. ran up 7.4%, American Airlines Group Inc. jumped 7.1%, Delta Air Lines Inc. climbed 7.1%, Southwest Airlines Co. rallied 7.1%, JetBlue Airways gained 5.6% and Spirit Airlines Inc. hiked up 7.3%. The rally in travel stocks started in Europe, after a report that Germany-based travel operator TUI said it plans to resume flights at the end of July, and after Spain said it will lift the mandatory two-week quarantine for travelers arriving from overseas starting July 1. The optimism also comes after upbeat travelers data out of the U.S. ahead of the weekend, and as U.S. airlines started detailing safety plans to resume more flights and lure travelers.