Sunday, July 6, 2014

Top 5 Airline Companies To Own In Right Now

In this competitive and globalized world, people have become busier than before. Travelling has become a part and parcel of life. Daily, people have to travel from here and there for work. Spirit Airlines Incorporated (SAVE) empowers customers to save money on air travel by offering ultra low base fares with a range of optional services for a fee, allowing customers the freedom to choose only the extras they value.

�This Miramar, Florida based company has made its name by becoming the clear price leader in the U.S. airline market. Spirit operates about 250 flights to 50 destinations in the U.S., Latin America, and popular holiday destinations in the Caribbean. The company is also offering service from the United States to the expanding markets of Panama and Colombia.

Positive Numbers

In 2013, compared to its peers Delta Air Lines (DAL) and Southwest Airlines (LUV), Spirit�� stock was higher by more than 153%. The company�� adjusted net income for the third quarter 2013 increased 130.3% to $57.9 million ($0.79 per diluted share) compared to $25.2 million ($0.35 per diluted share) for the third quarter 2012. Spirit achieved an adjusted pre-tax margin of 20.3%, the highest quarterly adjusted pre-tax margin in the Company's history. Its return on invested capital (before taxes and excluding special items) for the last twelve months ended September 30, 2013 was 31.3%. Spirit ended the third quarter 2013 with $540 million in unrestricted cash.

Top Long Term Stocks To Buy Right Now: ANA Holdings Inc (ALNPF)

ANA HOLDINGS INC., formerly All Nippon Airways Co., Ltd., is a Japan-based airline holding company. Its Air Transportation segment is engaged in the air transportation business, the provision of various services at airports, the provision of reservation services via telephone, the freight express business, and the maintenance of aircrafts in domestic and overseas markets. The Traveling segment plans and sells tour packages under the brand names ANA Hello Tour and ANA Sky Holiday, it also offers services to travelers at arrival areas and sells travel products and air tickets. The Others segment involves in the information communication, trading and merchandise business, building management, logistics and airplane fixture repair business, and hotel operation. On March 4 and March 5, 2013, it fully acquired all shares of one and two consolidated subsidiaries through stock swap, respectively, made them become wholly-owned subsidiaries. Advisors' Opinion:
  • [By Daniel Inman]

    In Tokyo, ANA Holdings (JP:9202) � (ALNPF) �declined 4.7% after the airline lowered its 2013 fiscal-year net profit forecast by 65% on higher fuel costs and slow service expansion because of delays in Boeing (BA) �787 Dreamliner deliveries.

Top 5 Airline Companies To Own In Right Now: Alaska Air Group Inc. (ALK)

Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.

Advisors' Opinion:
  • [By Ben Levisohn]

    Dividends are in with airlines, as Alaska Air (ALK), Delta Air Lines (DAL) and Southwest Airlines (LUV) have all increased theirs so far this year. Cowen’s Helane Becker and Conor Cunningham ponder whether American Airlines (AAL) or United Continental (UAL) will return capital to shareholders first:

    AFP/Getty Images

    Over the last two weeks three airlines (Alaska Air Group, Delta Air Lines, and Southwest Airlines) announced significant share repurchase authorizations and in two cases (Delta and Southwest) announced an increase to their dividend. Alaska raised their dividend earlier this year. These companies have led the industry in returning capital to shareholders as all three have sound balance sheets, manageable CAPEX plans and increasing profits. The next airlines to return capital to shareholders will likely be United and American. United continues to have PRASM issues which has led to a lagging stock price and potentially pushing out of returning capital to shareholders. United’s management continues to point to the end of 2014 as an announcement date. American is also likely to announce its plans for returning capital to shareholders year-end 2014…It will be interesting to see who announces their plans first: United or American. United has more invested in the announcement as they are several years ahead of American in the merger process but probably several years behind in execution.

    Shares of United Continental have gained 2.2% to $41.40 at 11:28 a.m. today, while American Airlines has risen 1.1% to $38.94, Delta Air Lines has advanced 1.7% to $38.50, Southwest Airlines has jumped 2.1% to $25.12 and Alaska Air Group is up 1.7% at $97.23.

  • [By Tim Beyers]

    Who wins? We won't know for years, but Southwest is already the leading buyer of the MAX, and as such, seems to be a likely benefactor. There's also Alaska Airlines (NYSE: ALK  ) , which already flies from the continental west coast to various destinations in the Hawaiian Islands. The airline has ordered 37 of the planes to upgrade its fleet.

Top 5 Airline Companies To Own In 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 Ben Levisohn]

    UBS analysts Darryl Genovesi and Raymond Wong explain what Delta Air Lines’ (DAL) disappointing update yesterday means for American Airlines (AAL), United Continental (UAL) and other carriers:

  • [By Ben Levisohn]

    United Continental (DAL) has gained 20% since the start of the year, while American Airlines (AAL) and Delta Air Lines (DAL) have risen 15%. Southwest Airlines (LUV) has gained 11%.

  • [By Dimitra DeFotis]

    Delta Air Lines (DAL) is leading the pack after reporting traffic figures for the past month; its shares are down 5.5%.�American Airlines�(AAL) also is off 5%, and United Continental Holdings (UAL) is off 6.4%. Domestically-oriented airlines fared better, but shares also are in the red:�JetBlue Airways (JBLU) �and Alaska Holdings (ALK) are each down roughly 2%, while Southwest Airlines (LUV) is down nearly 1%.

  • [By Ben Levisohn]

    Southwest now joins United Continental (UAL), American Airlines (AAL) and Delta Air Lines (DAL), among others, as Buy-rated carriers at Stifel.

    Shares of Southwest Airlines have gained 1.6% to $26.52 at 11:39 a.m. today, while � United Continental has risen 0.7% to $42.84,�American Airlines has advanced 1.5% to $41.67 and Delta Air Lines is up 1.3% to $39.35.

Top 5 Airline Companies To Own In Right Now: China Eastern Airlines Corp Ltd (CEA)

China Eastern Airlines Corporation Limited (China Eastern), incorporated on April 14, 1985, is an air carriers operating in the People�� Republic of China. As of December 31, 2010, the Company served a route network that covers 182 domestic and foreign cities in 30 countries. It operates from Shanghai�� Hongqiao International Airport and Pudong International Airport. During the year ended December 31, 2010, its flights accounted for 52.2% and 37.9% of all the flight traffic at Hongqiao International Airport and Pudong International Airport, respectively. During 2010, it accounted for approximately 31.1% of the total passenger traffic volume and 19% of the total freight volume on routes to and from Shanghai. As of December 31, 2010, it had a fleet of 355 aircraft, including 337 passenger jets each with a seating capacity of over 100 seats and 18 freighters.

Passenger Operations

During 2010, the Company operated approximately 9,600 scheduled flights per week, excluding charter flights, serving a route network that covers 182 domestic and foreign cities in 30 countries. During 2010, its domestic routes generated approximately 71.5% of its passenger revenues. Its heavily traveled domestic routes link Shanghai to the commercial and business centers of the People�� Republic of China, such as Beijing, Guangzhou and Shenzhen. During 2010, it also operated approximately 361 flights per week to and from Hong Kong, originating from Shanghai and 16 major cities in eastern, northern and western the People�� Republic of China. During 2010, it operated approximately 103 flights per week between mainland China and Taiwan. During 2010, its regional routes accounted for approximately 5.4% of its passenger revenues. During 2010, it operated approximately 1,079 international flights per week, serving 60 cities in 29 countries, linking Shanghai to cities in Asian and Southeast Asian countries, such as Japan, Korea, India, Singapore, Thailand and Bangladesh and locations in Europe, the Un! ited States and Australia.

During 2010, the Company re-started its Shanghai to London and Shanghai to Moscow routes. During 2010, revenues derived from its operations on international routes accounted for approximately 23.2% of its passenger revenues. During 2010, revenues derived from its operations to and from Japan accounted for approximately 7.7% of its passenger revenues and approximately 33.4% of its international passenger revenues. Its international and regional flights and a portion of its domestic flights either originate or terminate in Shanghai, the central hub of its route network. Its operations in Shanghai are conducted at Hongqiao International Airport and Pudong International Airport. On March 16, 2010, it moved its operations at Hongqiao International Airport to the terminal two of Hongqiao International Airport. It operates its flights through three hubs located in eastern, northwestern and southwestern China, namely Shanghai, Xi��n and Kunming, respectively.

Cargo and Mail Operations

The Company�� cargo and mail business utilizes the same route network used by its passenger airline business. It carries cargo and mail on its freight aircraft, as well as in available cargo space on its passenger aircraft. Its cargo and mail routes are international routes. As of December 31, 2010, it had seven MD-11F, four B777F and two B757-200F freight aircraft under operating leases for cargo and mail operations. It also has three Airbus A300-600R aircraft, as well as two Boeing 747-400ER freighters for its cargo operations.

The Company competes with Air China Limited, China Southern Airlines Company Limited, Hong Kong Dragon Airlines Limited, Cathay Pacific Airways, Thai Airways International, Singapore Airlines, Delta Air Lines, United Airlines, American Airlines, Air Canada, Delta, Alitalia, Air France-KLM Group, Asiana Airlines, Korean Air, Virgin Atlantic Airways, British Airways, Lufthansa German Airlines, Aeroflot and Qantas Airways.

Advisors' Opinion:
  • [By Belinda Cao]

    The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. slumped 3.4 percent last week to a seven-month low of 89.04. The gauge traded at 13.5 times estimated earnings, 3.6 percent below the S&P�� valuation, data compiled by Bloomberg show. China Southern Airlines Co. (ZNH) and China Eastern Airlines Corp. (CEA) lost more than 6 percent April 5, while Home Inns & Hotels Management Inc. (HMIN) tumbled 16 percent in the week.

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