The Zacks Analyst Blog Highlights: American Airlines Group, Ryanair Holdings, JetBlue Airways, Delta Airlines and …

For Immediate Release

 

Chicago, IL – March 19, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the American Airlines Group Inc. (AAL-Free Report), Ryanair Holdings (RYAAY-Free Report), JetBlue Airways Corporation (JBLU-Free Report), Delta Airlines (DAL-Free Report) and United Continental Holdings (UAL-Free Report).

                    

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Here are highlights from Wednesday’s Analyst Blog:

                   

Airline Stock Roundup

 

It was a week which saw a new member from the airline space making its way into the coveted SP 500 index – American Airlines Group Inc. (AAL-Free Report). The carrier is set to join the much sought-after list from Mar 20 (after market close), replacing Allergan, which has been acquired by Actavis.

 

European low-cost carrier Ryanair Holdings (RYAAY-Free Report) also grabbed headlines during the week with its board approving plans to connect destinations between the U.S. and Europe at amazingly low fares. However, the transatlantic service is unlikely to commence before another four/five years.

 

Low-cost carrier JetBlue Airways Corporation (JBLU-Free Report) was also in the news for a bilateral codeshare agreement inked with privately held Silver Airways. JetBlue also announced healthy traffic data for the month of February. Important metrics such as revenue passenger miles (RPMs – a measure of air traffic), available seat miles (measure of capacity) and load factor (% of seats filled by passengers) grew on a year-over-year basis during the month.

 

On the price front, most airline stocks gained over the past 5 trading days, benefiting from plummeting oil prices. As a result, the NYSE ARCA Airline index climbed 5% over the said period.

 

(Read the last ‘Airline Stock Roundup’ here: Delta-Led Consortium Complains, Republic Airways Included in SP 600)

 

Recap of the Most Important Stories Over the Past Week

 

1. JetBlue Airways inked a codeshare agreement with Florida-based Silver Airways with the aim to improve customer convenience. The current deal extends the Dec 2013 ticketing partnership signed by the two companies (read more: JetBlue, Silver Airways Ink Codeshare Pact; Strengthen Ties).

 

Furthermore, JetBlue Airways’ Feb 2015 air traffic was up 10% year over year to 2.9 billion. Capacity improved 7.4% to 3.47 billion and load factor increased to 83.5% from 81.6% in Feb 2014 (read more: JetBlue’s February Traffic Rises on Favorable Factors).

 

2. American Airlines Group, formed following the Dec 2013 merger of AMR (American Airlines’ parent group) and US Airways, is set to join the SP 500 after market close on Mar 20. The carrier has been added to the SP 500 GICS “Industrials” sector or Airlines Sub-Industry index (read more: American Airlines Group to Enter Coveted SP 500).

 

3. According to media reports, the board of Ryanair has approved the carrier’s plans to connect destinations across the U.S. and Europe. Approval has been gained to operate to and from around 14 European cities and almost an equivalent number of American cities. Ticket prices have been kept unbelievably low with one-way tickets between US and Europe costing approximately $15 (promotional offer) according to a report at investors.com.

 

The services, however, are not commencing immediately. It will take another four to five years as Ryanair needs to bolster its fleet before entering the lucrative transatlantic market. In the event of Ryanair entering the U.S. market, competition would intensify for domestic carriers that already face the threat of market share reduction from Gulf carriers.

 

4. According to a report appearing in the Reuters, the dispute between US carriers and their Gulf counterparts took a fresh turn with the U.S. government asking Delta Airlines (DAL-Free Report), United Continental Holdings (UAL-Free Report) and American Airlines Group to furnish more information to support their claim of massive subsidies enjoyed by certain Gulf carriers.

 

The U.S. carriers, in a complaint to the Obama administration, had alleged that massive government subsidies have allowed Gulf carriers like Qatar Airways, Etihad Airways and Emirates to expand their fleet and international operations substantially, in turn, eating into their market share. According to the report, the Obama administration has put forward approximately 20 questions to representatives of the U.S. carriers based on their allegations.

 

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Lower dollar means more US tourists

The head of one of the world’s largest airlines says the sliding Australian dollar should lead to an influx of US tourists down under.

Delta Airlines president Edward Bastian said the company was heavily promoting Australia as a destination as a result of the fall in the currency.

“I think we will be bringing many many US tourists to Australia because of the fact that the US dollar is so strong,” he told a business lunch in Sydney.

“You are going to see a lot of US travellers coming to spend their currency.”

Mr Bastian said the fall of the Australian dollar, which has dropped from more than 90 US cents to 76 US cents in the past year, had reduced the value of bookings from Australia but that had been offset by increased passenger numbers from North America.

“It certainly has reduced the value of some of our Australian revenues but it’s also improved the popularity from a US travel base to come over, not just to Sydney but all throughout this big country.”

Delta flies between Sydney and Los Angeles as part of a partnership with Virgin Australia.

The partnership has been in place since 2011 and the airlines are currently lobbying the Australian Competition and Consumer Commission to allow them to extend the arrangement for another 10 years.

Virgin chief executive John Borghetti said the two airlines had a market share between Australia and the US of 25 per cent, which is less than half that of Qantas.

He said they would struggle to compete on the route without the tie-up.

“Five years ago we were losing a lot of money on America and we were operating nowhere near as competitive schedule as we do today,” he said.

“The only thing that has allowed us to do that is this partnership.”


AAP

Delta jet's brakes under scrutiny after skidding off runway -report

March 8 (Reuters) – The Delta Airlines plane that skidded off a runway at New York LaGuardia airport last week may have had brake problems, according to a report in the Wall Street Journal that cited two unnamed sources familiar with the federal probe.

Based on information from the “black box” and interviews with the pilots of Delta Flight 1086, federal investigators are focusing on the brake systems since other aspects of the touchdown were working as expected, the report said.

The investigation is also looking at the condition of the runway and the impact of snow and ice.

Air traffic safety experts cautioned the investigation is still in its early stages, according to the report.

The Boeing Co MD-88 aircraft was en route from Atlanta on Thursday and slid on the tarmac and crashed through a fence, barely stopping short of Flushing Bay.

Several of the 127 passengers and five crew members suffered minor injuries after the plane skidded off runway 13, it’s nose hanging out over the edge of the bay.

Representatives for Delta and the National Transportation Safety Board could not immediately be reached.

(Reporting by Jennifer Saba in New York)

Delta plane skids off La Guardia runway, all passengers safe

NEW YORK, March 5 (UPI) — A Delta Airlines MD-88, landing in a snowstorm at New York’s LaGuardia Airport, skidded on the runway and crashed into an embankment Thursday.

The flight, Delta Airlines 1086, left Atlanta Thursday morning. After landing in New York, it crashed through a fence before striking the embankment on the airport’s Runway 13.

Passengers climbed onto a broken wing to evacuate the plane, then were helped to the ground by rescue crews. There were no reports of injuries to any of the 125 passengers or five crew members, but reports of a fuel leak caused emergency vehicles to surround the plane.

The airport has remained closed since the incident.

Delta said, in a statement, all passengers left the plane safely and were transported to the LaGuardia terminal.

About three inches of snow had fallen in New York by 11:10 a.m., the time of the accident. About 15 minutes earlier, the National Weather Service reported the temperature at the airport was 26 degrees, with visibility of one-quarter mile. The wind, sleet and snow caused slippery paved surfaces.

Delta Show Dogs: Airline Alarms Owners Of Prize Canines After Westminster Dog Show

Delta Airlines alarmed owners of several show dogs on a flight leaving from JFK International Airport after the Westminster Dog Show in NYC. According to KOMO News, the dogs were never loaded onto the Boeing 737 heading non-stop to Seattle.

The animals’ owners on the plane noticed that their carriers were never loaded onto the cargo section of the aircraft. Greg Gorder was responsible for getting a standard Poodle named Paris back home, but the dog wasn’t even aboard the aircraft. Flight attendants reassured passengers on the Delta plane that the show dogs were on the plane.

One of the dog owners used a DeltaFly app to find out where the crates were. Luggage tags allow passengers to track movement of their luggage. The tracking in this instance revealed that some of the dogs weren’t loaded onto the plane. When it was discovered the show dogs weren’t on the plane, owners were given the choice to fly without them or take a later flight until Delta could find the dogs. All of the owners exited the plane.

It took airport personnel up to four hours looking for the dogs. One dog had flown out on another flight without her owner, Jennifer Dawson. She was furious with the airline for their error.

Delta Airlines spokesman, Mike Thomas, tells KOMO News that there was “limited space in the cargo compartment.” This allegedly prevented the dogs from traveling all on one flight.

Thomas continues that Delta looked after the show dogs because they “remained in Delta’s constant care while the airline worked to re-accommodate both the customers and their animals.”

Delta’s show dog mishap resulted in the airline apologizing to the dog owners and offered a free overnight stay at a hotel near JFK in addition to a $200 refund on dog fees, and VIP service at the airport. The dogs even got their own seats on the cabin flying back to Seattle. Paris was pictured sitting in her own airplane seat from JFK to Seattle.

According to Westminster Kennel Club spokesman, David Frier, this is a horrible thing for owners of prestigious dogs to go through. He tells New York Daily News that it may not seem like a big to some, but it’s catastrophic for dog owners.

“It’s not as tragic as it seems unless it’s your dog,” Frier says.

Delta’s handling of the show dogs didn’t go over well with the owners. Thankfully, the owners were reunited with their prize show dogs.

[Photo by Andrew Burton/Getty Images]

Delta Airline MD 88 Skids Off Runway At LaGuardia; NTSB Sending Investigators

A Delta Airlines flight from Atlanta to New York skid off the runway at LaGuardia on landing during a snowstorm this morning.  The airplane hit a fence and berm which may have prevented it from going into the waters of Flushing Bay.  No life-threatening injuries were reported among the 125 passengers and five crew members, although 3 passengers were reportedly taken to the hospital.  The airport was closed immediately following the accident but one runway has recently been re-opened.  The NTSB has announced that it is sending investigators to retrieve the black boxes and document the accident.

The NTSB’s initial steps following an accident are to document the so-called perishable evidence – any evidence that could be lost or destroyed if not gathered at the scene.  This would include, in a situation like this, the runway conditions, including any skid marks or ground scars (such as scrapes or gouges which could indicate that the wings or other parts of the aircraft had struck the ground).   The NTSB will also gather any information regarding weather conditions at the airport at the time of landing, as well as reported conditions, including pilot braking reports from previous flights.  Of particular significance, will be wind speed and direction.  While airplanes normally land into the wind, they can also land safely with crosswinds and tail winds.  A tail wind would typically make a landing roll-out longer.  The wind speed and direction are included in the calculations made by pilots to determine landing distance and whether a landing can be made safely given existing conditions, including the condition of the runway (wet, snow-covered or icy, for example) and its length.

The NTSB will secure the cockpit and voice data recorders – the black boxes – and send them to its lab in Washington, DC for analysis.  This will include information such as airspeed on landing and engine performance – in particular, at what point were the thrust reversers deployed.  The thrust reversers change the direction of the engine exhaust to aid in slowing down the airplane.  Data will also include the performance of the anti-skid system.  This system, which is much like the anti-skid system in modern cars, prevents the plane’s wheels from locking up and negatively affecting braking distance.  In addition, the data will indicate how the ground spoiler system worked, which is critical to assisting the aircraft in stopping.  The ground spoilers are panels on top of the wing that pivot up, destroying any lift, and putting the entire weight of the airplane on the wheels, increasing braking efficiency.

The NTSB will also review the cockpit voice recorder and air traffic control tapes, as well as information including the experience and training of the flight crew.  The NTSB will look at any other relevant factors, including the decision to keep the airport open and the decision to use that particular runway.  While it is easy to assume that weather was a factor, there are many things to consider before any conclusion can be reached on why this flight skid off the runway.

 

 

 

Owners: Delta Airlines lost multiple Westminster show dogs on flight

SEATTLE — The owners of several dogs returning from the Westminster Dog Show in New York say Delta Airlines lost their animals at JFK Airport, KOMO reported.

The dogs eventually made it home, but not without a lot of confusion and work.

Lindsay Gorder and Paris, her standard poodle, were set to fly back to Seattle following the dog show last week. But Gorder became concerned when she didn’t see Paris being loaded onto the aircraft.

Gorder said flight attendants assured her that she was mistaken – until four other people on board said they were owners of Westminster dogs, and hadn’t seen their animals, either.

“We just wanted to establish that our dogs where still on there, that’s all we wanted to do,” said Lindsay’s husband Greg. “They couldn’t do it, wouldn’t do it.”

The plane sat at the gate for an hour, FlyerTalk reported. Then Delta admitted that they didn’t know where any of the five dogs were.

Owners were given a choice of flying home without their dogs or waiting for a flight the next day. Jenny Dawson, an owner who chose to stay in New York, told KOMO that Delta eventually presented her with an empty crate and informed her that her dog was already onboard a flight headed to Seattle.

“I was livid,” Dawson told the station. “It was like, really, can you not look in there and see there is no dog?”

After four hours, Delta finally delivered most of the dogs to the terminal, while the others were eventually reunited with their owners at their destinations, KOMO said.

A Delta spokesman debated some of the passengers’ story. He told reporters that the dogs were never left completely alone – they just “missed their flight,” so to speak. He added that there was not enough room for all of the animals in the cargo hold, so some might have been shuffled to crafts other than their owners’

Air travel experts said this should serve as a reminder to dog owners that pets are considered luggage and may be moved to other flights for logistical reasons.

Read more at KOMO.

Kicking, screaming Delta passenger arrested at LAX, police say

L.A. airport police said they detained a kicking, screaming Delta Airlines passenger on Wednesday, a woman who allegedly assaulted  flight crew members — and then a police officer.

Lisa Piasecki, 32, was arrested Wednesday night after she assaulted crew members during a Delta Flight 17 from Atlanta to Los Angeles, Los Angeles airport police said.

Piasecki was on board when she became “belligerent” toward the airline crew, Los Angeles airport police said. She was intoxicated, they added.

'Belligerent' Passenger on Delta Flight Detained After Allegedly Assaulting Crew, Passengers

Flight crew members restrained her for about 45 minutes before landing at Los Angeles International Airport, an airline spokesman said.

Airport police and FBI investigators responded about 8:10 p.m. to Terminal 6 and detained Piasecki of Irwin, N.C., who police said was kicking and screaming. During the confrontation, police said she assaulted an officer.

She was taken into custody on suspicion of the battery on a police officer and being drunk in public.

For breaking news in California, follow @VeronicaRochaLA

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Delta Airlines guarantees passengers a 20 minute turnaround for checked luggage

  • Delta Airlines assure customers they’ll get their bags in 20 minutes
  • Only SkyMiles customers are eligible and will get 2,500 mile for late bags 
  • The trial deal runs from today until March 21, and could become fixed 

Michael Gadd for MailOnline

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As if taking off and landing on time isn’t enough of a challenge, Delta Airlines has today begun racing against the clock to get baggage to passengers after they land.

Delta is trialling a 20 minutes or less guarantee to get checked luggage to the carousel from domestic flights in the US and Puerto Rico until March 21.

If the bags don’t make it in time for the SkyMiles customers – the only passengers eligible – Delta will issue 2,500 bonus miles to their account.

Delta Airlines has pledged customers they'll get their baggage within 20 minutes or they get 2,500 air miles

Delta Airlines has pledged customers they’ll get their baggage within 20 minutes or they get 2,500 air miles

Baggage handlers will be racing against the clock as the airline trials the promotion until March 31

Baggage handlers will be racing against the clock as the airline trials the promotion until March 31

DELTA BAG GUARANTEE FINE PRINT

– Trial deal runs only until March 31

– Only to eligible SkyMiles members

– Only for domestic flights in the US and Puerto Rico

– Online request form must be submitted within three days landing

– Delta decides who gets the bonus miles

– Only one claim per arrival, regardless of how many bags were carried

– Lost, mishandled, and damaged bags are excluded

– Oversize and overweight baggage and special items arn’t eligible

‘We’re committed to providing you with reliable and on-time baggage service every time you fly,’ Delta’s website says. 

‘That’s why we’re backing your bags with a guarantee: if your checked bag doesn’t arrive at the carousel in 20 minutes or less after any domestic flight through March 31, 2015, you are eligible to receive 2,500 bonus miles.’

Customers need to fill out a simple online form with their name, email address, SkyMiles number along with flight and trip confirmation numbers to claim their miles.

Naturally with such a deal, the fine print is extensive and is only good news to those travellers who will have checked in a bag anyway for a minimum fee of $25 for a flight within the US and Canada.

The ’20-minute Bag-to-Claim Guarantee bonus-mile offer’, as it’s officially described, is valid only for travel between February 19 and March 31 this year, and claims must be made within three days of landing.

It is valid for all domestic flights within the US and Puerto Rico that are marketed and operated by Delta Air Lines.

The deal is valid for all full fare domestic flights within the US and Puerto Rico that are operated by Delta

The deal is valid for all full fare domestic flights within the US and Puerto Rico that are operated by Delta

‘Itineraries that include Delta Connection and codeshare flights are eligible as long as the final leg is marketed and operated by Delta Air Lines,’ say the terms and conditions.

The time it takes for bags to get to the baggage claim will be judged by Delta’s baggage tracking system, where available, and they say ‘lost, mishandled, and damaged bags are excluded.’ As are oversize and overweight baggage and special items.

The airline has also covered itself in the event there is ‘a baggage system malfunction, severe weather, or other conditions out of Delta’s control that would prevent timely baggage delivery.’

Delta is following in the footsteps of Alaska Airlines, which has its own 20-minute promise and made their rivals know about it.

AA also offers 2,500 miles for bags that take longer than 20 minutes to arrive.

Alaska Air also gives customers a choice between the miles and a $25 voucher.

Alaska Air tweeted after Delta announced its trial via email to customers: “Celebrating millions and millions of bags delivered in 20 minutes or less.”

 

 

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