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.

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.

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.

Continue reading USAirways Pilot: best of America, Madoff: worst of America - a few blocks apart

USAirways Pilot: best of America, Madoff: worst of America - a few blocks apart originally appeared on BloggingStocks on Fri, 16 Jan 2009 15:32:00 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.

Flash: USAir flight 1549 from Laguardia to Charlotte crashed in Hudson River originally appeared on BloggingStocks on Thu, 15 Jan 2009 16:03:00 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.

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.

MAJOR PAPERS:

• Merger talks between UAL Corporation's (NASDAQ: UAUA) United Airlines and US Airways Group Inc (NYSE: LCC) have been put off for now, the Wall Street Journal reported. United is reportedly close to an alliance with Continental Airlines Inc (NYSE: CAL).
• Harris Corporation (NYSE: HRS) is for sale and the company has begun to hear from interested parties, the Wall Street Journal also reported. Harris is looking for $75 to $80 per share. Speculation about the bidders includes General Dynamics Corporation (NYSE: GD) and Northrop Grumman Corporation (NYSE: NOC).

• The Charleston Gazette reported that Chesapeake Energy Corporation (NYSE: CHK) has decided not to build its Eastern Division headquarters in Charleston, West Virginia in the wake of a West Virginia Supreme Court ruling on May 22.

• AppleInsider reported that Apple Inc (NASDAQ: AAPL) is expected to announce a back-to-school deal soon that will encourage students to buy new Macs by offering some of the largest incentives in the history of the company.

Newspaper wrap-up: United Airlines puts US Airways on hold, talks to Continental originally appeared on BloggingStocks on Fri, 30 May 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• H.J. Heinz Co. (NYSE: HNZ) is today expected to increase its sales and profit projections for the next two years, as it reports results of its fiscal year ended April 30. The Wall Street Journal reported that sales are to grow 6% or higher from 4%, while earnings per share growth for the next two years is projected to grow between 8% and 11% from the earlier projection of 7% to 9%.
• It appears that Vistaprint Limited (NASDAQ: VPRT), a graphic design services and printed products company, counts on referral fees from pop up rewards programs on it website for a certain amount of its revenue and profit and also relies on the referral of its customers to outside firms offering rewards programs, which turns out to be a monthly fee for services such as discounts on movies and amusement parks, according to the Wall Street Journal's "Heard on the Street". Some believe the stock, whose shares have plummeted over concerns of slowing revenue and slimmer gross margins, may be trading too high for its own good.
• According to people familiar with their plans, the Financial Times reported that the CEOs of UAL Corporation's (NASDAQ: UAUA) United Airlines and US Airways Group (NYSE: LCC) will today meet to discuss the carriers' potential merger agreement.

• The Independent reported that for the second time this month, Barclays Plc (NYSE: BCS) revised lower its calculation of analysts' consensus for its full-year profit, cutting its 2008 figure by nearly 8% to GBP5.876B pre-tax; Barclays cut the calculation 15% two weeks ago.

Newspaper wrap-up: Heinz expected to raise earnings, sales projections originally appeared on BloggingStocks on Thu, 29 May 2008 08:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Merrill downgraded AMR Corp (NYSE:AMR), Delta Air Lines (NYSE:DAL), Continental Airlines (NYSE:CAL), US Airways (NYSE:LCC) and UAL Corp (NASDAQ:UAUA) to Neutral from Buy citing earnings risk this year from higher energy costs.
  
• Oppenheimer downgraded shares of Chelsea Therapeutics (NASDAQ:CHTP) to Perform from Outperform after their survey suggested physicians believe currently available generic treatments are adequate in neurogenic orthostatic hypotension, which could impact the company's lead drug Droxidopa.
  
• Clearwire (NASDAQ:CLWR) was cut to Sell from Hold at Citigroup on valuation, as they estimate fair value at $13.

• Goldman downgraded Kellogg (NYSE:K) to Neutral from Buy and Hershey Foods (NYSE:HSY) to Sell from Neutral.
  
• Piper lowered Orbitz Worldwide (NYSE:OWW) to Neutral from Buy.

Analyst downgrades: Airlines, CHTP and CLWR originally appeared on BloggingStocks on Thu, 08 May 2008 11:50:00 EST. Please see our terms for use of feeds.

• Lehman downgraded the airline sector to Neutral from Positive, citing higher fuel costs and the weakening economy. AirTran (NYSE: AAI) and U.S. Airways (NYSE: LCC) were downgraded to Equal Weight from Overweight. UBS said it can no longer recommend airline stocks due to weakening economy, high fuel prices, and less likely industry consolidation. The firm downgraded Continental Airlines (NYSE: CAL), Delta Air Lines (NYSE: DAL), Northwest Airlines (NYSE: NWA) and U.S. Airways to Neutral from Buy.
  
• Goldman removed shares of Siemens (NYSE: SI) from their Conviction Buy List as they believe the company may book additional charges of $1.2B this year.
  
• Jefferies cut Internap (NASDAQ: INAP) to Underperform from Buy as they believe the 10-K filing delay and revenue quality questions reduce visibility into the health of the business.

• Wachovia lowered Amgen (NASDAQ: AMGN) to Market Perform from Outperform.
  
• SI International (NASDAQ: SINT) was downgraded to Neutral from Outperform at Cowen.
  
• Citigroup cut Assured Guaranty (NYSE: AGO) to Hold from Buy.

Analyst downgrades: Airline stocks, SI and INAP originally appeared on BloggingStocks on Thu, 20 Mar 2008 10:49:00 EST. Please see our terms for use of feeds.

Continue reading Funny bidness -- US Airways passengers can't drink over NM

Funny bidness -- US Airways passengers can't drink over NM originally appeared on BloggingStocks on Wed, 21 Nov 2007 16:30:00 EST. Please see our terms for use of feeds.

Continue reading Competitors lift US Airways (LCC) ahead of Thursday's earnings

Competitors lift US Airways (LCC) ahead of Thursday's earnings originally appeared on BloggingStocks on Tue, 23 Oct 2007 16:10:00 EST. Please see our terms for use of feeds.

• The office of the Massachusetts secretary of state is investigating whether Bear Stearns (NYSE: BSC) improperly traded mortgage-backed securities for its own account with two hedge funds that failed this past summer, without notifying in advance the funds independent directors, reported the Wall Street Journal.
• The Schork Report's Stephen Schork sees an oil correction coming and predicted oil in the $65-$68 range, according to the Wall Street Journal's "Heard on the Street" column.

• Insurer Aetna (NYSE: AET) has instituted a tighter reimbursement policy for Amgen's (NASDAQ: AMGN) anemia drugs, creating a setback for Amgen, reported the Los Angeles Times.
• A consortium led by Icelandic investor Baugur is interested in making an offer for Saks (NYSE: SKS), reported the New York Post, but Saks will not consider a sale until the credit market improves.
• From BusinessWeek's "Inside Wall Street" section:
  
• BusinessWeek suggested that US Airways' (NYSE: LCC) poor performance compared to it's competitors makes it an attractive target to be bought.
• Rami Rosen of investment firm Oscar growth believes pacts like Radware's (NASDAQ: RDWR) venture with International Business Machines (NYSE: IBM) will help to drive growth.
• BusinessWeek hailed Amazon's (NASDAQ: AMZN) performance, saying it is one of the few internet companies that has beaten Google (NASDAQ: GOOG).

Newspaper wrap-up: Some see bubble in oil originally appeared on BloggingStocks on Fri, 19 Oct 2007 09:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• JMP Securities upgraded shares of CyberSource (NASDAQ: CYBS) to Market Outperform from Market Perform citing valuation, positive management comments regarding BidPay, and incrementally positive industry checks on its fraud product.
  
• Brean Murray upgraded shares of Century Casinos (NASDAQ: CNTY) to Buy from Hold based on continued progress at recently opened properties, reduced Street expectations, and potential catalysts.
  
• Brean Murray also upgraded Spectrum Pharmaceuticals (NASDAQ: SPPI) to Buy from Hold. The firm is highly confident that Spectrum's ozarelix will demonstrate similar efficacy and safety in the current U.S. Phase IIb trial and expects statistical significant. The firm expects Ph III initiations by year-end 2007 and Ph IIb data to be released on 2Q08.
  
• Winnebago Industries (NYSE: WGO) was upgraded to Outperform from Sector Perform at RBC Capital. The firm expects Winnebago to begin to post better earnings from more favorable mix and pricing in the 2008 model year.

• Merrill Lynch upgraded Cardinal Health (NYSE: CAH) to Buy from Neutral.
  
• Goldman upgraded shares of US Airways (NYSE: LCC) to Buy from Neutral.
  
• Avocent Corporation (NASDAQ: AVCT) was upgraded to Accumulate from Source the Funds at Think Equities.
  
• Collins Stewart raised Cyberonics (NASDAQ: CYBX) to Buy from Market Perform.

Analyst upgrades: CYBS, CNTY, SPPI and WGO originally appeared on BloggingStocks on Tue, 09 Oct 2007 10:30:00 EST. Please see our terms for use of feeds.