We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
On Jan. 10, Delta Air Lines (DAL - Free Report) kicked off the fourth-quarter 2024 earnings season for airlines on a bright note, reporting better-than-expected earnings per share and revenues. The airline issued a strong outlook for 2025. DAL shares hit a 52-week high on that day. Southwest Airlines (LUV - Free Report) announced a pause on corporate hiring in a bid to cut costs.
Copa Holdings (CPA - Free Report) reported impressive traffic numbers for December driven by upbeat air travel demand. An expansion-related update was available from Alaska Airlines in the past week. Alaska Airlines is a wholly-owned subsidiary of Alaska Air Group (ALK - Free Report) .
Recap of the Recent Most Important Stories
1. Delta reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs. Revenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Delta, currently carrying a Zack Rank #2 (Buy), expects first-quarter 2025 adjusted earnings to be 70 cents-$1 per share. The company’s CEO, Ed Bastian, expects 2025 to be the carrier’s best. Delta expects current-year adjusted earnings to be more than $7.35 per share.
2. At Copa Holdings, available seat miles (a measure of capacity) for the month of December increased 6.5% year over year. Revenue passenger miles increased 6.8% year over year. Since traffic outpaced capacity expansion, the load factor (percentage of seats filled by passengers) rose to 85.3% from 85.1% in December 2023.
3. To reduce costs and boost profit margins, Southwest Airlines has hit the pause button for corporate hiring. This Dallas-based airline has also decided to suspend promotions and its summer internship program and eliminate some employee team-building events for the same purpose.
LUV had recently inked a deal with Babcock & Brown Aircraft Management to sell and lease back 36 Boeing 737-800 aircraft in its fleet to raise cash. The news was covered in detail in the last week’s write-up.
4. Alaska Airlines has decided to add a new daily, nonstop flight connecting Portland and George Bush Intercontinental Airport in Houston from May 15. The airline has also decided to resume twice-daily nonstop service between Portland and Eugene, OR. The airline will start a new route between San Diego and Medford, OR. All three routes will fly year-round.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The NYSE ARCA Airline Index increased 2.3% to $71.66, as most stocks in the table above traded in the green. Over the past six months, the NYSE ARCA Airline Index has increased by 29.1%.
What’s Next in the Airline Space?
Many carriers' fourth-quarter 2024 results are expected in the coming days. Passenger volumes are likely to have been high, aiding their performance. However, labor costs are likely to have been high.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Airline Stock Roundup: DAL's Q4 Earnings Report, CPA's Traffic & More
On Jan. 10, Delta Air Lines (DAL - Free Report) kicked off the fourth-quarter 2024 earnings season for airlines on a bright note, reporting better-than-expected earnings per share and revenues. The airline issued a strong outlook for 2025. DAL shares hit a 52-week high on that day. Southwest Airlines (LUV - Free Report) announced a pause on corporate hiring in a bid to cut costs.
Copa Holdings (CPA - Free Report) reported impressive traffic numbers for December driven by upbeat air travel demand. An expansion-related update was available from Alaska Airlines in the past week. Alaska Airlines is a wholly-owned subsidiary of Alaska Air Group (ALK - Free Report) .
Recap of the Recent Most Important Stories
1. Delta reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs. Revenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Delta, currently carrying a Zack Rank #2 (Buy), expects first-quarter 2025 adjusted earnings to be 70 cents-$1 per share. The company’s CEO, Ed Bastian, expects 2025 to be the carrier’s best. Delta expects current-year adjusted earnings to be more than $7.35 per share.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. At Copa Holdings, available seat miles (a measure of capacity) for the month of December increased 6.5% year over year. Revenue passenger miles increased 6.8% year over year. Since traffic outpaced capacity expansion, the load factor (percentage of seats filled by passengers) rose to 85.3% from 85.1% in December 2023.
3. To reduce costs and boost profit margins, Southwest Airlines has hit the pause button for corporate hiring. This Dallas-based airline has also decided to suspend promotions and its summer internship program and eliminate some employee team-building events for the same purpose.
LUV had recently inked a deal with Babcock & Brown Aircraft Management to sell and lease back 36 Boeing 737-800 aircraft in its fleet to raise cash. The news was covered in detail in the last week’s write-up.
4. Alaska Airlines has decided to add a new daily, nonstop flight connecting Portland and George Bush Intercontinental Airport in Houston from May 15. The airline has also decided to resume twice-daily nonstop service between Portland and Eugene, OR. The airline will start a new route between San Diego and Medford, OR. All three routes will fly year-round.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
The NYSE ARCA Airline Index increased 2.3% to $71.66, as most stocks in the table above traded in the green. Over the past six months, the NYSE ARCA Airline Index has increased by 29.1%.
What’s Next in the Airline Space?
Many carriers' fourth-quarter 2024 results are expected in the coming days. Passenger volumes are likely to have been high, aiding their performance. However, labor costs are likely to have been high.