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January 17, 2014
15:27 EDTDALDelta Air Lines January weekly 31 straddle priced for 5.8% move into Q4
News For DAL From The Last 14 Days
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October 13, 2015
14:52 EDTDALNotable companies reporting before tomorrow's open
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14:10 EDTDALDelta Air Lines technical commentary ahead of results
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13:29 EDTDALDelta Air Lines October volatility flat into Q3 and outlook
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11:09 EDTDALAirlines slip after downgrades weigh on Jetblue, Alaska Air
Shares of U.S.-based airlines were mostly lower in morning trading after analysts from JPMorgan and Evercore ISI released notes evaluating the state of the sector. In addition, JPMorgan downgraded JetBlue (JBLU) and Evercore cut its rating on American Airlines (AAL). AIRLINE INDUSTRY: JPMorgan analyst Jamie Baker said that the firm revised its 2016 forecasts for the U.S. airline space to reflect a second consecutive year of declining revenue per available seat mile, though margins seem to be stable with 2015's all-time record. Looking to 2017, the analyst said that he expects a "slightly less profitable" U.S. industry on higher fuel prices and some revenue recovery, but continued labor cost escalation. Baker added that the lack of industry revenue vigor continues to be the main hindrance to upside, despite more salient measures continuing to set records. The analyst said that his firm's "patience is running thin" and he believes investors mostly feel the same. Separately, Evercore ISI analyst Duane Pfennigwerth said that while airline margins are improving significantly year over year in the third quarter of fiscal 2015, higher assumed fuel prices in 2016 suggest "modest" margin compression for most U.S. airlines. He added, however, that Delta (DAL) should buck this trend and expand margins in 2016 given large hedge losses in 2015. Pfennigwerth said that stocks in the space have rallied so far in October on Q3 outlooks being slightly higher than cautious expectations as companies in the space have improved their guidance setting at the outset of the quarter. Stock seasonality is normally positive from this point until year-end, the analyst added. JETBLUE: JPMorgan's Baker downgraded JetBlue to Neutral from Overweight, citing the stock's proximity to his revised price target of $27. The analyst said that the carrier's shares don't give the same kind of previously envisioned upside potential to warrant a Buy rating. Baker added that his firm estimates ex-fuel cost per available seat mile to be pressured by increased labor expenses linked to the company's planned densification of its A320s. The analyst said that while he generally remains a "fan" of the economics of densification, the attendant pressure on JetBlue's RASM may begin a shift in investor sentiment as trends could migrate from sector leading to lagging. AMERICAN: Evercore's Pfennigwerth downgraded American Airlines' shares to Hold from Buy and lowered his price target to $50 from $55, saying he believes the company is commoditizing its brand. Pfennigwerth said that the airline is losing its hard earned pricing segmentation and expects to see an upward bias to net-adjusted debt in the future. The analyst added that the number one factor holding back new and incremental longer-term investors is the evidence of pricing discipline, since the company's blunt price competition with ultra-low cost carriers makes it more difficult to convince investors that the sector has fundamentally altered. Pfennigworth also said that American will face potential headwinds from higher fuel and lack of hedging in 2015. WHAT'S NOTABLE: Pfennigworth also downgraded Alaska Air (ALK) shares to Hold from Buy, citing valuation and limited upside to its $82 price target. The analyst added that the company's accelerating growth rate indicates that the company sees higher long-term value creation in competing down its own returns. The company's balance sheet and capital return remain very strong, the analyst said. PRICE ACTION: In morning trading, JetBlue fell 6.5% to $25.11, American Airlines was little changed at $43.87 and Alaska Air dipped 1.6% to $76.72. OTHERS TO WATCH: Delta Air Lines, which is scheduled to report Q3 earnings tomorrow morning, was up 1.1%, Southwest (LUV) fell 0.1% and United Continental (UAL) dropped 0.5%.
October 12, 2015
17:27 EDTDALJustice Department pushes back against Gulf carrier allegations, Reuters says
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October 9, 2015
12:23 EDTDALDelta Air Lines October volatility flat into Q3 and outlook
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05:44 EDTDALDelta Air Lines implied volatility of 37 at lower end of index mean range
October 8, 2015
18:01 EDTDALApple Pay now available on Fly Delta app
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05:43 EDTDALDelta Air Lines implied volatility of 38 at lower end of index mean range
October 7, 2015
18:57 EDTDALDelta removing passenger seats to add flight attendant space, Bloomberg says
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09:39 EDTDALRepublic Airways says not in breach of Delta purchase agreements
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October 5, 2015
05:32 EDTDALDelta Air Lines implied volatility of 39 at lower end of index mean range
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October 2, 2015
09:03 EDTDALDelta Air Lines sees September quarter unit revenue to decline 4.5%-5.5%
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09:02 EDTDALDelta Air Lines reports September PRASM down 5%
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October 1, 2015
15:40 EDTDALDirect scheduled U.S-Cuba commercial flights not likely this year, WSJ says
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06:44 EDTDALSouthwest defends Dallas Love Field gate purchase, AP reports
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September 30, 2015
09:29 EDTDALBuckeye Partners announces FERC approval of settlement with airlines
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