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   Non-TechAmerican Airlines Group, Inc.

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To: Sam who wrote (833)5/20/2019 11:39:45 AM
From: Sam
   of 891
American Airlines -3% after Morgan Stanley warns on labor risk
May 20, 2019 8:46 AM ET|About: American Airlines Group Inc. (AAL)|By: Clark Schultz, SA News Editor

Morgan Stanley drops American Airlines Group (NASDAQ: AAL) to an Underweight rating from Equal-weight and takes its price target all the way down to $26 from $40.

"AAL faces the most labor risk within the group, which we assume will be reset higher over the next 6- 18 months and drive CASM-Ex Fuel up 2.5-3.5% on average between 2019 / 2020, and further compounded by jet fuel prices rising ~10% next year per forwards," warns the MS analyst team.

Adding it all up, the firm sees downside risk to the consensus estimates on AAL.

AAL -2.93% premarket to $30.81 vs. a 52-week trading range of $28.81 to $45.82.

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From: Sam6/5/2019 10:11:35 PM
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American Airlines +4% after insider buying disclosed

Jun. 5, 2019 3:07 PM ET|About: American Airlines Group Inc. (AAL)|By: Clark Schultz, SA News Editor

Insiders at American Airlines Group ( AAL +4%) went on a buying spree this week of the airline stock.

CEO Doug Parker added 50K shares and President Robert Isom bought 15K shares, while CFO Derek Kerr and three executive VPs each nabbed 5K shares.

American confirmed to Barron's that the insider buying was not part of any compensation package.

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From: Sam6/6/2019 2:18:16 PM
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United Airlines Stock Has Fallen Too Far on China Fears, Goldman Sachs Says --

Dow Jones Newswires | June 06, 2019 10:02:00 AM ET

Economic weakness in China could be a problem for United Continental Holdings, but investors are more worried than they need to be, according to Goldman Sachs analyst Catherine O'Brien.

She upgraded shares of United Continental (ticker: UAL) from Neutral to Buy on Thursday, keeping her price target at $108 per share, 30% higher than recent levels, saying losses in the stock create a potential opportunity.

O'Brien says United stock is too cheap now that it has declined more than 16% from its 52-week high, set last December. ( American Airlines (AAL) shares, by contrast, have fallen further than United, but O'Brien already rates American at Buy with a $42 price target, 40% higher than recent levels.)

The back story. Airlines, as a group, are still modestly valued, trading for less than 10 times estimated 2019 earnings on average. Investors aren't convinced the industry consolidation that produced four major U.S. airlines, down from six several year ago, will produce consistently higher profits.

United is one of the most modestly valued U.S. airlines, trading at 7.3 times estimated 2019 earnings, a big discount to stocks in the S&P 500, which trade for 16.9 times estimated 2019 earnings on average.

Southwest Airlines (LUV), by contrast, trades for 11.1 times estimated 2019 earnings and American Airlines trades for just 6 times estimated earnings. Delta Air Lines' (DAL) valuation multiple falls in between those two, at 8.2 times.

What's new. O'Brien thinks investors' concerns about pricing and exposure to the Chinese economy have weighed on United stock, creating an opportunity. China exposure for United, while higher than other U.S. airlines, represents only 4% of United's capacity. O'Brien says the company's exposure to China is down from recent years.

What's more, she believes any pricing concerns are already reflected in the stock price. She also thinks a new credit-card agreement with JPMorgan Chase (JPM) will generate unexpected benefits for United shareholders.

"United management has highlighted that it sees margin upside to reaching a co-brand credit card agreement with economics more on par with its two largest competitors," writes O'Brien in her Thursday research report. The impact from the new credit card deal could be significant, adding more than 10% to estimated earnings per share, according to the analyst.

Looking ahead. Lower oil prices will also help airline earnings in the short run. Benchmark crude-oil prices fell 16% in May. That kind of decline, though, can also signal lower economic growth. A slowdown would make consumers less willing to spend in nonessential areas such as air travel.

Still, United hasn't lost money since the financial crisis. That consistency could be rewarded, someday, with a higher valuation multiple.

United shares were down 2% year to date, as of Wednesday's closing price, worse than the 9.5% gain in the Dow Jones Industrial Average. Airlines overall have struggled in 2019, but a few have managed to stand out. While the airline components of the S&P 500 are up 4% so far in 2019, Delta Air Lines and JetBlue Airways (JBLU) are both beating the Dow year to date.

Write to Al Root at
     (END) Dow Jones Newswires

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From: Sam6/13/2019 12:07:07 PM
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Airline stocks gain as more fare increases fired off

Jun. 13, 2019 11:42 AM ET|About: American Airlines Group Inc. (AAL)|By: Clark Schultz, SA News Editor

Airline stocks are in rally mode after JPMorgan points to another round of fare increases in the U.S.

JP analyst James Baker says American Airlines ( AAL +5.2%), Southwest Airlines ( LUV +2.8%) and Hawaiian Airlines ( HA +2.5%) all fired off increases of varying degrees on domestic flights.

Notable gainers included Spirit Airlines ( SAVE +2.8%), Mesa Air ( MESA +2.8%), Delta Air Lines ( DAL +2%), United Continental ( UAL +3.6%), Allegiant Travel ( ALGT +3%) and SkyWest ( SKYW +2.1%).

Today's rally arrives even with crude oil prices up over 3%.

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To: Sam who wrote (837)6/15/2019 12:22:15 PM
From: Moonray
   of 891
Court grants American Airlines' request to end "devastating" slowdown by unions

o~~~ O

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To: Sam who wrote (837)6/15/2019 12:24:01 PM
From: Moonray
   of 891
Employees of airline caterer at MSP say they are ready to strike

o~~~ O

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From: Glenn Petersen6/28/2019 12:15:25 PM
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How automation could make airports more efficient

Karen Lightman
June 26, 2019

A security checkpoint at Reagan National Airport. Photo: Chip Somodevilla/Getty Images

Implementing automation at airport bottlenecks could expedite drop-off, check-in, security, and boarding for flyers and employees.

Why it matters: Between 2016 and 2019, the number of passengers using U.S. airlines has increased by 10.9%. Last year, 1 in 7 travelers in the U.S. missed a flight due to long security lines.

Transportation authorities, airlines, tech companies, and others are experimenting with ways to automate and streamline airport pain points.

Curbside pick-up and drop-off: Ride-hailing services account for 62% of airport transportation for business travel, leading to increased congestion.

Check in: Many airports have self-serve “bag-drop” systems, where passengers interact with airport staff to confirm passenger identity. Delta Airlines is experimenting with automated biometric check-in screens that use facial recognition.

Security: The TSA allocated $71.5 million for adding more than 145 machine learning–based CT scanners into security checkpoints to expedite carry-on baggage inspections.
    -- The further expansion of this technology could automate the detection of firearms, knives, explosives, lithium ion batteries and other prohibited items.

    -- Metro21: Smart Cities Institute at Carnegie Mellon University and the Pittsburgh International Airport developed a model for estimating security wait times and distributing passengers across checkpoints.
Boarding: Since the 1970s, boarding times have more than doubled.
The impact: Automation of these processes could lead to job losses, but could also reduce TSA employee turnover.

The bottom line: Most major airports are projected to experience “Thanksgiving-peak traffic volume” at least once each week this year, and these technologies could potentially help alleviate the worst bottlenecks.

Karen Lightman is executive director of Metro21: Smart Cities Institute at Carnegie Mellon University.

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From: Sam7/2/2019 1:02:18 PM
   of 891
Delta +2% on reporting June traffic

Jul. 2, 2019 9:20 AM ET|About: Delta Air Lines, Inc. (DAL)|By: Niloofer Shaikh, SA News Editor

Delta Air Lines (NYSE: DAL) reports revenue passenger miles rose 6.2% to 22.77B in June.

Domestic RPMs advanced 8% and international RPMs grew 3.4%.

Capacity increased 4% to 25.19B available seat miles.

Capacity up 4.4% for domestic and 3.3% internationally.

June Load factor expanded 190 bps to 90.4%.

YTD load factor +70 bps to 85.6%.

DAL +2.23% premarket.

The stock is at 58.20 right now after being as high as 59.22 in the first 10 minutes of trading.

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From: Sam7/8/2019 1:24:15 PM
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Airline Stocks The Only Bright Spot In Transport Sector -- MarketWatch

Dow Jones Newswires | July 08, 2019 01:17:00 PM ET

The Dow Jones Transportation Average slumped 98 points, or 0.9%, with 15 of 20 components trading higher, with all 5 gainers the shares of airline companies. The biggest gainer was Delta Air Lines Inc.'s stock (DAL), which rose 1.0% in afternoon trading. Cowen analyst Helane Becker reiterated her bullish outperform rating on Delta, saying her research indicates the air carrier is tracking toward the high end of earnings-per-share expectations, due to strong demand, pricing, moderate fuel costs and cost controls. Delta is scheduled to report second-quarter results on Thursday. Of the Dow transports other 5 airline components, shares of JetBlue Airways Corp. (JBLU) rose 0.8%, Alaska Air Group Inc. (ALK) gained 0.4%, American Airlines Group Inc. (AAL) edged up 0.2% and United Airlines Holdings Inc. (UAL) tacked on 0.1%, while Southwest Airlines Co. shares (LUV) slipped less than 0.1%. The NYSE Arca Airline Index gained 0.1%, while the Dow Jones Industrial Average fell 121 points, or 0.5%.

-Tomi Kilgore For more from MarketWatch:

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From: Sam7/8/2019 9:51:06 PM
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Wall Street Says Sell American Airlines Stock and Buy It -- on the Same Day --

Dow Jones Newswires | July 08, 2019 10:48:00 AM ET

Two Wall Street firms have conflicting views on American Airlines ahead of second-quarter earnings. One says sell the stock, and the other says buy.

That may make it confusing for investors, but there is good news for investors seeking airline exposure. Both brokerage firms like Alaska Air Group (ticker: ALK).

Credit Suisse analyst Jose Caiado on Monday downgraded shares of American Airlines (AAL) to Underperform, the Credit Suisse equivalent of a sell rating, from Neutral and cut his target price $2, to $30 a share, 7% below recent levels.

Caiado is worried about the impact the 737 MAX grounding will have on earnings. American operates 24 Boeing (BA) 737 MAX jets and has another 76 on order.

American "has already removed the MAX from its schedule through Labor Day," Caiado wrote. "But recent news of incremental delays in recertifying the aircraft -- up to about 3 months -- make further capacity cuts a certainty."

Evercore ISI analyst Duane Pfennigwerth feels differently. He sees additional upside in American shares and has put the stock on his tactical outperform list. He already rates shares Outperform and the move means that he sees upside in American stock over coming months. Pfennigwerth is saying buy the stock now. His target for American stock is $35 a share.

"We see upside risk to [American's pricing] ahead of company's [second quarter] investor update this week," Pfennigwerth wrote in a note on Monday. He believes that reduced capacity will lead to higher pricing, just like what happened with Delta Air Lines (DAL) when management said last week that sales growth exceeded expectations.

It looks as if the market can't decide who's right. American stock is flat in Monday morning trading. But investors can take another tack. Caiado increased his price target on Alaska Air to $73 from $70 a share and rates the stock Outperform. Pfennigwerth also likes Alaska Air, rating its shares a Buy with a $75 price target, 16% higher than recent levels.

"We believe that has stabilized and that Hawaii has improved off of the lows," Caiado wrote, addressing expectations for Alaska's second-quarter earnings. Alaska flies mainly out of the West Coast, serving destinations like the Hawaiian islands.

As the disagreement among analysts illustrates, airlines have had a turbulent year. Airline components of the S&P 500 have returned about 12.5% year to date, trailing the 20% return of the S&P 500 over the same span. Investors are worried about a slowing economy, the impact of Boeing's 737 MAX woes, and volatile oil prices. (Jet fuel is often the largest expense for an airline.)

What's more, the sector trades for about eight times estimated 2020 earnings, a 50% discount to the broader market. American and Alaska shares trade for 5.7 and 9.4 times estimated 2020 earnings, respectively.

Delta kicks off airline earnings on Thursday morning and holds an investor conference call at 10 a.m. Eastern time.

Write to Al Root at

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