Sunday, September 7, 2014

Top Airline Stocks To Buy Right Now

The merger of US Airways (NYSE: LCC  ) and American Airlines took another step closer to reality, and airline stocks across the industry cheered the news. But there's another side to the creation of another giant airline. Fewer airlines, particularly national airlines, means lower supply, and that means higher prices for you and me. So while investors are celebrating today, those looking to plan a vacation will pay the price.

More consolidation and fewer choices
Bankrupt AMR Corporation, which owns American Airlines, filed a plan to exit bankruptcy pending a merger with US Airways, creating the largest airline in the U.S. The plan details how much of the new company stakeholders would end up with, along with other issues that have complicated negotiations. AMR creditors and unions would own 72% of the new company, with US Airways shareholders owning the remaining 28%.

One of the sticking points was executive positions and CEO pay. Under the latest plan, AMR CEO Tom Horton would get a proposed $20 million severance if the deal goes through. The offer was brought back into play today after a federal judge denied a similar payout in previous negotiations. If you want to see just how much airline executives care about unions, bondholders, and customers, just take note of how much time and energy they're spending to make sure the CEO of a bankrupt company gets a multimillion-dollar bonus on his way out the door.

Top 10 Restaurant Stocks For 2015: Ryanair Holdings PLC (RYA)

Ryanair Holdings plc (Ryanair Holdings), is a holding company for Ryanair Limited (Ryanair). Ryanair operates a low-cost, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, and Morocco. As of June 30, 2012, the Company offered approximately over 1,500 scheduled short-haul flights per day serving approximately 160 airports largely throughout Europe with an operating fleet of 294 aircraft flying approximately 1,500 routes. Ryanair sells seats on a one-way basis. The Company also holds a 29.8% interest in Aer Lingus Group plc. As of June 30, 2012, Ryanair�� operating fleet was composed of 294 Boeing 737-800 aircraft, each having 189 seats. Ryanair�� fleet totaled 294 Boeing 737-800s at March 31, 2012. As of June 30, 2012, Ryanair owned and operated four Boeing 737-800 full flight simulators for pilot training. Advisors' Opinion:
  • [By Inyoung Hwang]

    Ryanair Holdings Plc (RYA), the discount airline operator that�� the second-biggest stock in Ireland�� ISEQ index, declined 1.7 percent to 7.23 euros in Dublin. Kerry Group, a supplier of food ingredients, sank 1.4 percent to 45.24 euros.

Top Airline Stocks To Buy Right Now: Deutsche Lufthansa AG (LHA)

Deutsche Lufthansa AG is a Germany-based aviation company with global operations and a total of more than 400 subsidiaries and associated companies. The Company is engaged in passenger transport, airfreight and airline services. The Lufthansa Group operates in five major business segments: scheduled passenger air traffic (Passenger Airline Group) consists of Deutsche Lufthansa AG, Lufthansa CityLine GmbH, Swiss International Air Lines AG, Austrian Airlines AG, Air Dolomiti S.p.A., Eurowings Luftverkehrs AG and Germanwings GmbH; scheduled airfreight services (Logistics) consists of the Lufthansa Cargo group; maintenance, repair and overhaul (MRO) consists of the Lufthansa Technik group; information technology (IT Services) consists of the Lufthansa Systems group, and catering (Catering) consists of the LSG Lufthansa Sky Chefs group. On April 20, 2012, the Company announced the divestiture of British Midland Ltd. (bmi) to International Consolidated Airlines Group SA. Advisors' Opinion:
  • [By Jonathan Morgan]

    German stocks were little changed, as declines in utilities and banks offset gains in Deutsche Lufthansa AG (LHA) and Deutsche Boerse AG.

    RWE AG (RWE), Germany�� second-largest utility, slipped 2.4 percent after RBC Capital Markets cut its recommendation on the stock. Lufthansa followed its European peers higher, recovering some of its Aug. 2 selloff. Xing AG (O1BC), the business social network, jumped the most since October as Deutsche Bank AG (DBK) upgraded its rating on the shares.

Top Airline Stocks To Buy Right Now: American Airlines Group Inc (AAL)

American Airlines Group Inc., formerly AMR Corporation, incorporated in October 1982, operates in the airline industry. The Company's principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of the Company, owns two regional airlines, which do business as American Eagle-American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.

American, AMR Eagle and the AmericanConnection airline served more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American's passenger fleet.

To improve access to each other's markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, Air Tahiti Nui, Alaska Airlines, British Airways, Cape Air, C! athay Pacific, China Eastern Airlines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.

American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental companies, and other products and services companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.

The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.

Advisors' Opinion:
  • [By gurujx]

    American Airlines Group Inc (AAL): COO Robert D Isom Jr sold 380,557 Shares

    COO Robert D Isom Jr sold 380,557 shares of AAL stock on Jan.31 at the average price of $33.4. Robert D Isom Jr owns at least 518,058 shares after this. The price of the stock has increased by 6.8% since.

  • [By Ben Levisohn]

    Shares of Delta Air Lines have gained 37% this year, topping Southwest Airlines’ (LUV) 29% rise, United Continental’s (UAL) 6.6% advance and JetBlue’s (JBLU) 1.2% increase. American Airlines (AAL) has gained 52% so far in 2014.

  • [By Bloomberg Businessweek]

    Scott Olson/Getty ImagesTravelers at Chicago O'Hare International Airport. American Airlines (AAL) has ended its bereavement fares, the discount offered to people who needed to fly immediately because of a loved one's death. That cold, callous, corporate decision -- which now aligns American's policy with that of its heartless merger partner, US Airways -- has unleashed the predictable gnashing of social media teeth. But it's not worth shedding a single tear for bereavement fares. Anyone shopping carefully -- a group that might not include mourners -- already knows that the "break" airlines offered the bereaved have been, at best, pathetic. A bereavement fare is typically just a small discount off the cost of a last-minute purchase, which are nearly always exorbitant. United (UAL) offers a 5 percent discount off a walk-up fare and wants to see a death certificate to ensure you're not lying. Delta's (DAL) price break varies -- which likely means it's influenced by seat inventory -- and applies only for immediate family members. (Delta, too, wants to verify the death.) Such paltry discounts mean little, especially when you're not debating whether to make the trip and just need a ticket procured quickly. "Five percent off a $900 fare isn't going to make that big of a difference to someone in an emotionally chaotic state," Rick Seaney, chief executive of FareCompare.com, told the Los Angeles Times. Exactly. I have a better idea: Go to the Internet. Many sites specialize in last-minute travel deals or fare bidding, such as Priceline (PCLN). If that's too much work at a fraught time, a travel agent can quickly handle the same chore. And one-way flights may make more sense, offering additional flexibility with an expensive purchase.

  • [By Paul Ausick]

    American Airlines Group Inc. (Nasdaq: AAL) depends somewhat more on cargo revenues. Fourth quarter cargo revenue rose 13.9% to $196 million and full-year revenues rose 1.4% to $685 million. The company was created by the merger of AMR Corp. and US Airways. Due to the merger, the full-year results include only about three weeks of December and primarily reflect cargo revenues at the old AMR.

Top Airline Stocks To Buy Right Now: Global Eagle Entertainment Inc (ENT)

Global Eagle Entertainment Inc., formerly Global Eagle Acquisition Corp., incorporated on February 2, 2011, is the full service platform offering both content and connectivity for the worldwide airline industry. Through its combined content, distribution and technology platforms, the Company provides airlines and the millions of travelers they serve with the offering of in-flight video content, e-commerce and information services. Through its Row 44 subsidiary, the Company utilizes Ku-band satellite technology to provide airline passengers with Internet access, live television, shopping and travel-related information. As of February 1, 2013, the Company installed on more than 450 aircraft, Row 44 has the fleet of connected entertainment platforms operating over land and sea globally. In addition, through its AIA division, the Company provides film and television content, games and applications to more than 130 airlines worldwide. In July 2013, the Company announced the acquisition of Post Modern Group, LLC. In October 2013, Global Eagle Entertainment Inc announced that it has acquired Travel Entertainment Group Equity Limited, the United Kingdom-based parent company of IFE Services Limited (IFE Services) from GCP Capital Partners LLP.

The Company�� Row 44 subsidiary provides satellite-based broadband service to the global airline industry. The Company�� Advanced Inflight Alliance (AIA) business is the provider of content services, products and solutions for the global inflight entertainment market. AIA also serves as the exclusive representative in sourcing Hollywood content for 60 airline customers and is the exclusive distributor of content from select Hollywood studios and independent producers to the airline market. In addition, AIA is the airline distributor of Asian, Bollywood, European, Latin American and Middle Eastern content.

Advisors' Opinion:
  • [By Garrett Cook]

    Shares of Global Eagle Entertainment (NASDAQ: ENT) got a boost, shooting up 10.38 percent to $12.12 after the company and Boeing (NYSE: BA) announced a satellite connectivity partnership.

Top Airline Stocks To Buy Right Now: US Airways Group Inc (LCC)

US Airways Group, Inc. (US Airways Group) is a holding company whose primary business activity is the operation of a network air carrier through its wholly owned subsidiaries, US Airways, Piedmont Airlines, Inc. (Piedmont), PSA Airlines, Inc. (PSA), Material Services Company, Inc. (MSC) and Airways Assurance Limited (AAL). MSC and AAL operate in support of the Company�� airline subsidiaries in areas, such as the procurement of aviation fuel and insurance. It has hubs in Charlotte, Philadelphia and Phoenix and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport (Washington National). During the year ended December 31, 2011, it offered scheduled passenger service on more than 3,100 flights daily to more than 200 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean, and Central and South America. It also has an East Coast route network, including the US Airways Shuttle service.

The Company had approximately 53 million passengers boarding its mainline flights in 2011. During 2011, the Company�� mainline operation provided scheduled service or seasonal service at 133 airports, while the US Airways Express network served 156 airports in the United States, Canada and Mexico, including 78 airports also served by its mainline operation. US Airways Express air carriers had approximately 28 million passengers boarding their planes in 2011. As of December 31, 2011, the Company operated 340 mainline jets and was supported by its regional airline subsidiaries and affiliates operating as US Airways Express under capacity purchase agreements, which operated 233 regional jets and 50 turboprops. The Company�� prorate carriers operated seven turboprops and seven regional jets at December 31, 2011.

In May 2011, US Airways Group and US Airways entered into an Amended and Restated Mutual Asset Purchase and Sale Agreement (the Mutual APA) with Delta Air Lines, Inc. (Delta). Pursuant to the Mutual APA, Delta agreed to acquire 132 slot pa! irs at LaGuardia from US Airways and US Airways agreed to acquire from Delta 42 slot pairs at Washington National and the rights to operate additional daily service to Sao Paulo, Brazil. On December 13, 2011, the transaction contemplated by the Mutual APA closed and ownership of the respective slots was transferred between the airlines. During 2011, the US Airways Express network served 156 airports in the continental United States, Canada and Mexico, including 78 airports also served by its mainline operation. During 2011, approximately 28 million passengers boarded US Airways Express air carriers��planes, approximately 44% of whom connected to or from its mainline flights.

The Company competes with Southwest, JetBlue, Allegiant, Frontier, Virgin America and Spirit.

Advisors' Opinion:
  • [By Eric Volkman]

    US Airways (NYSE: LCC  ) notched an all-time high in one of its key metrics for the month of May. The company said its load factor (i.e., the average passenger "occupancy" of its planes) increased to 85.8%, the best showing for any May in its history. That number was also 1.7 percentage points higher than the same month of 2012.

  • [By Monica Gerson]

    US Airways Group (NYSE: LCC) is expected to report its Q3 earnings at $1.12 per share on revenue of $3.84 billion.

    O'Reilly Automotive (NASDAQ: ORLY) is estimated to post its Q3 earnings at $1.65 per share on revenue of $1.75 billion.

  • [By Ben Levisohn]

    When�United Continental�(UAL) pledged to cut costs on its investors day, it got a big boost that helped it outpace competitors like Delta Air Lines (DAL), US Airways (LCC) and Alaska Airlines (ALK). Can the good times continue?

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