Continue reading US Airways Soars on Improving Traffic Data

US Airways Soars on Improving Traffic Data originally appeared on BloggingStocks on Wed, 07 Jul 2010 14:20:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Coinstar Inc. (CSTR) shares surged following stronger-than-expected Q1 earnings driven by DVD rentals.
• Humana Inc. (HUM) shares traded lower despite the report of better-than-expected earnings for Q1.
• IMAX Corp. (IMAX) reported strong Q1 results that easily topped consensus estimates, but shares declined.
• Kellogg Co. (K) topped Q1 earnings expectations and announced a share buyback program.
• Office Depot Inc. (ODP) Q1 earnings fell short of consensus estimates and same-store sales declined.

Continue reading Earnings Highlights: IMAX, Kellogg, Sprint, 3M, UPS, Viacom, Visa and More

Earnings Highlights: IMAX, Kellogg, Sprint, 3M, UPS, Viacom, Visa and More originally appeared on BloggingStocks on Sat, 01 May 2010 15:40:00 EST. Please see our terms for use of feeds.

Continue reading US Air Q1 Loss Smaller Than Expected

US Air Q1 Loss Smaller Than Expected originally appeared on BloggingStocks on Tue, 27 Apr 2010 14:00:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Apple Inc. (AAPL) posted its highest quarterly revenue ever, easily beating estimates, as iPhone sales doubled.
• Boeing Co. (BA) swung to a larger-than-expected Q4 profit but guidance fell short of analysts' estimates.
• Chevron Corp. (CVX) fell short of analysts' earnings estimates for Q4, sending shares lower.
• Cisco Systems Inc. (CSCO) shares rose after optimistic statements by the CEO ahead of Q2 results.
• Eastman Kodak Co. (EK) shares surged after it beat Q4 expectations by a wide margin and cash flow improved.
• Ford Motor Co. (F) reported its first annual profit in four years due to cost-cutting and improved market share.
• Halliburton Co. (HAL) reported lower Q4 earnings but beat estimates by a penny, and revenue also fell.

Continue reading Earnings Highlights: Apple, Boeing, Cisco, Ford, Kodak, Microsoft, Yahoo! ...

Earnings Highlights: Apple, Boeing, Cisco, Ford, Kodak, Microsoft, Yahoo! ... originally appeared on BloggingStocks on Sat, 30 Jan 2010 12:10:00 EST. Please see our terms for use of feeds.

For years, it's been evident that smaller airlines have had an operating advantage, particularly when they use less expensive airports. They've been able to post better numbers as a result, and in the current travel slump, they've outperformed the larger carriers. Well, they've also picked up a considerable amount of market share.

According to a report by USA Today, low cost carriers now have 30% of the market in the United States. Price-sensitive consumers are turning to cheaper alternatives, even if it means (for fliers with elite status) giving up the perks they've earned through years of customer loyalty.

Continue reading Low cost carriers own 30% of domestic airline biz, growing fast

Low cost carriers own 30% of domestic airline biz, growing fast originally appeared on BloggingStocks on Tue, 10 Nov 2009 16:15:00 EST. Please see our terms for use of feeds.

The US Airways (NYSE: LCC) ticker symbol says it all: LCC = Low Cost Carrier. With its latest announcement, the airline may want to change it to LEC -- Low Expense Carrier. In an attempt to keep pace with the plunging travel market, US Airways is cutting 1,000 jobs next year, shoving almost all its flying to its three hubs (Philadelphia, Phoenix and Charlotte) and Washington. Several international routes are being cut.

The airline reports that routes from its hubs have been profitable. Currently, US Airways pushes 93% of its flights through these airports, a rate it seeks to push up to 99% in 2010.

Continue reading US Airways to cut 1,000 jobs, reduce some routes

US Airways to cut 1,000 jobs, reduce some routes originally appeared on BloggingStocks on Thu, 29 Oct 2009 10:50:00 EST. Please see our terms for use of feeds.

Affiliated Computer (NYSE: ACS) will be acquired by Xerox (NYSE: XRX) for $63.11 per share in cash and XRX stock. ACS shareholders will receive $18.60 per share in cash plus 4.935 XRX shares for each ACS share they own. ACS closed at $47.25. ACS October option implied volatility is at 27, November is at 28; below its 26-week average of 31 according to Track Data, suggesting decreasing price movement.

US Airways (NYSE: LCC) closed of $4.96. WTI Crude futures are recently down .48% to $65.70 according to Bloomberg. LCC October option implied volatility is at 93, December is at 107; below its 26-week average of 120 according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Affiliated Computer volatility low into Xerox's $6.4 billion acquisition originally appeared on BloggingStocks on Mon, 28 Sep 2009 08:00:00 EST. Please see our terms for use of feeds.

United Airlines (NASDAQ: UAUA), US Airways (NYSE: LCC) and American Airlines (NYSE: AMR), according to an influential analyst, have run out of options. Jamie Baker of JPMorgan said in a July 20, 2009 report that these companies couldn't do anything to prevent a cash crisis. They only savior available to them would have to be an outside investor. To call the position grim would be optimistic. Unfortunately, it couldn't have come at a worse time.

As Baker was walking the bear into the airline industry, United was starting to celebrate its change in direction. The carrier has improved its on-time rate, according to a USA Today report, and its operations are coming around. Despite the fact that the airline industry has been brutalized by the global recession, the airline has made some progress. Through August, the company's share price doubled, and its ascent has continued in September. So, the company is locked in an ongoing struggle to manage its identity, cope with its past and shape how the world sees it today.

The operational "makeover" has resulted in a reduction of its fleet from 601 jets in 2000 to 386 as of the summer of 2009. In terms of passenger traffic, it's in the #4 spot in the United States - trailing Delta (NYSE: DAL), Southwest (NYSE: LUV) and American. With Q2 revenues off 25.2% year-over-year, however, drastic measures are still necessary.

Continue reading United's battle over its identity

United's battle over its identity originally appeared on BloggingStocks on Thu, 17 Sep 2009 17:00:00 EST. Please see our terms for use of feeds.

August brought more misery to the airline industry in the United States. Seven of the country's nine largest carriers saw traffic drop, with only Southwest Airlines (NYSE: LUV) and JetBlue Airways Corp (NASDAQ: JBLU) bucking the trend. The continued upward climb of unemployment, tighter corporate budgets and sluggish demand for leisure travel has resulted in fewer passengers in seats.

JetBue was the only carrier not to report a drop in available seat miles (ASMs), the primary measure of airline productivity. Load factors, however, which indicate how full a plane is, tended to be higher, largely a result of flights that have been cut in an effort to reduce costs.

Continue reading August a sluggish month for U.S. airlines

August a sluggish month for U.S. airlines originally appeared on BloggingStocks on Sun, 06 Sep 2009 15:10:00 EST. Please see our terms for use of feeds.

US Airways (NYSE: LCC) is trimming 600 ground jobs and closing other services in an effort to cut costs. The airline had hoped not to cut this many positions, anticipating that resignations and departures would do the hard work for it. But employee attrition fell sharply from last year - probably because this isn't exactly the best market for job hunting. Unfortunately, the same reasons that cause employees to stay force US Airways to cut them loose.

At nine airports, US Airways is moving to outside contractors for ramp work. The Las Vegas US Airways Club will close and its staff cut. Also, the walk-up ticket counter at the airline's Tempe, AZ headquarters is on the chopping block.

Continue reading US Airways to slash 600 jobs, asks 400 flight attendants to take furlough

US Airways to slash 600 jobs, asks 400 flight attendants to take furlough originally appeared on BloggingStocks on Wed, 15 Jul 2009 10:30:00 EST. Please see our terms for use of feeds.

Continental Airlines (NYSE: CAL) is seeking immunity from antitrust laws to work more closely with United Airlines (NASDAQ: UAUA) and others on international routes. And, since airlines operate in a state of seemingly perpetual turmoil, what's the harm? According to the Justice Department: plenty.

The airline sought broad immunity as part of an effort to join Star Alliance, which includes US Airways, Lufthansa (OTC: DLAKY), and Air Canada -- along with United. Continental believes that it needs to join Star Alliance in order to remain competitive, especially with airlines that have this type of immunity already.

Continue reading Justice Department pushes back on Continental immunity request

Justice Department pushes back on Continental immunity request originally appeared on BloggingStocks on Tue, 30 Jun 2009 08:00:00 EST. Please see our terms for use of feeds.

JetBlue Airways Corp. (NASDAQ: JBLU) is looking to sell 20 million shares of common stock and $150 million in convertible debt. Miserable conditions for the airline industry have led the low-cost carrier to turn to financial markets for the infusion that operations can't seem to deliver.

The debt, which is convertible into common stock, will be sold in two $75 million series. And the 20 million common shares would raise another $101 million (at yesterday's closing price of $5.03). If there's enough demand for the debt and equity securities, JetBlue may sell another 3 million shares of common stock and another $11.25 million in debt.

JetBlue isn't alone in raising capital. US Airways Group Inc. (NYSE: LCC) is planning to ask its shareholders to approve a measure that would double the amount of common shares it could issue to 400 million. The answer will come at the company's annual meeting on June 10, 2009.

JetBlue shakes tin cup, seeks around $250 million originally appeared on BloggingStocks on Wed, 03 Jun 2009 08:40:00 EST. Please see our terms for use of feeds.

After the airline went through bankruptcy twice, turnaround expert George Putnam now sees improving long-term prospects for US Airways (NYSE: LCC).

In his The Turnaround Letter, the advisor suggests, "When travel does begin to pick up again, US Air with its lean cost structure should profit handsomely." Here's his review.

"US Airways began in 1939 as All-American Airways delivering mail to Western Pennsylvania and the Ohio Valley; from there it grew through acquisitions to be a major national airline.

Continue reading Turnaround expert: Blue skies for US Airways (LCC)?

Turnaround expert: Blue skies for US Airways (LCC)? originally appeared on BloggingStocks on Tue, 19 May 2009 10:40:00 EST. Please see our terms for use of feeds.

A nice little story came out a couple of weeks ago but hasn't gotten much press, what with stimulus packages and "bad banks" and Jessica Simpson's alleged weight gain. Richard Branson, eccentric billionaire and founder of Virgin Atlantic Airways, is reaching out to Captain Chesley "Sully" Sullenberger, the pilot of US Airways Group (NYSE: LCC) Flight 1549, in hopes of putting the hero on the Virgin payroll.

Branson told a New York Daily News reporter, "We'll make him the best-paid pilot at Virgin -- we'll give him double [the salary of] anybody else. He also can become one of the astronauts in my intergalactic spaceship company. The man can write his own ticket with me ..." In response, a flattered "Sully" said he is weighing his options, which recently included a cover shot on People magazine.

Continue reading Richard Branson courts Captain Sully: What's a hero worth?

Richard Branson courts Captain Sully: What's a hero worth? originally appeared on BloggingStocks on Sun, 15 Feb 2009 09:40:00 EST. Please see our terms for use of feeds.

US Airways (NYSE: LCC) is recently up 59 cents to $7.98. LCC Airbus A320 plane went down in the Hudson River off of 50th Street in NYC. WTI Crude futures are recently down 6.33% to $34.92 according to Bloomberg. LCC call option volume of 5,703 contracts compares to put volume of 2,905 contracts. LCC February option implied volatility of 131 is below its 26-week average of 142 according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: US Airways volatility at low end of range into plane going down in NYC originally appeared on BloggingStocks on Thu, 15 Jan 2009 16:15:00 EST. Please see our terms for use of feeds.

Minyanville Professor Minyan Peter dares to share the kind of keen insight and actionable information you won't find in any prospectus. For more original thought, visit www.minyanville.com.

As many people have heard before, there are only two times a company issues common stock: When it absolutely has to or when it is stupid not to.

Well yesterday's issuance by US Airways (NYSE: LCC) may represent that once in a lifetime opportunity to see those seemingly contradictory principles in action at the same time. Having seen its stock trade at $1.45 not a month ago, $8.50 must seem pretty sweet to US Airways management, particularly with strong technical resistance at $10.00 providing a pretty strong ceiling above.

With airline stocks trading as the most leveraged play on the price declines in oil, I can understand why US Airways management took advantage of the window being open to issue stock. But just because the issuance window is open, doesn't mean investors should jump.

US Airways Opens Issuance Window for Stock originally appeared on BloggingStocks on Fri, 15 Aug 2008 14:19:00 EST. Please see our terms for use of feeds.

"If there's one sector that stands to benefit handsomely from a further slide in oil or, at least, a moderation in crude's rally: the airlines," explains energy sector expert Elliott Gue.

In The Energy Strategist, he says, "Airlines may make a terrible long-term investment but can be an outstanding short-term trade." Here he looks at Delta Air Lines (NYSE: DAL) and, for the even more speculatively-inclined, US Airways (NYSE: LCC).

"Some investors will rightfully cringe from any mention of this sector; after all, the airlines have consistently lost money throughout their post-deregulation history.

"Most of the majors have declared bankruptcy on multiple occasions since that time. However, we've traded the airlines on a few occasions; we took some triple-digit percentage gains in the airlines back in 2005.

"The airlines' leverage to oil prices is well known. Expectations are so low, in fact, that several major air carriers actually managed to beat consensus expectations in the second quarter.

"And although sentiment is already at rock-bottom, there's a real basis for cautious optimism. First, if I'm right about oil, fuel costs won't rise appreciably in the third quarter. This huge headwind is dissipating.

Continue reading Speculative flyers: Delta (DAL) and US Airways (LCC)

Speculative flyers: Delta (DAL) and US Airways (LCC) originally appeared on BloggingStocks on Tue, 05 Aug 2008 11:30:00 EST. Please see our terms for use of feeds.

Continue reading US Airways to start charging for water on flights, effective today

US Airways to start charging for water on flights, effective today originally appeared on BloggingStocks on Fri, 01 Aug 2008 14:52:00 EST. Please see our terms for use of feeds.

Continue reading US Airways cutting movies, charging to sit in front

US Airways cutting movies, charging to sit in front originally appeared on BloggingStocks on Thu, 10 Jul 2008 14:50:00 EST. Please see our terms for use of feeds.

The new way they are starting to combat the high costs of flying is by cutting back, or postponing long international flights, in particular flights that are in excess of 12 hours.

Continue reading Airlines ditching long distance flights to combat fuel prices

Airlines ditching long distance flights to combat fuel prices originally appeared on BloggingStocks on Tue, 08 Jul 2008 14:52:00 EST. Please see our terms for use of feeds.