Airlines Bolstered By Decreased Capacity & Oil Prices

Projections for the number of seats offered to airline passengers came down in August, helping bolster sentiment according to the Wall Street Journal. Investors had been concerned that offering too many seats would lead to many remaining unfilled, potentially resulting in decreased profits and lower ticket prices. In addition to these updated projections, airlines benefited … Continued

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Berkshire Hathaway’s Increasing Stake in Delta & Southwest

During the second quarter, Berkshire Hathaway increased its stake in Delta Airlines (DAL) and Southwest Airlines (LUV), while decreasing its holdings in American Airlines (AAL) and United Continental Holdings (UAL). While the company stated that these moves “were a response to the 10% limitation” rather than a reflection of its views on the individual securities, … Continued

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delta airlines jets

Airline ETF Uplifted by Delta Air Lines Earnings

Delta Air Lines (DAL) beat forecasts by a nickel, posting earnings at $1.77 per share in the second quarter, reports ETF Trends. Its second quarter revenue of $11.78 billion also exceeded the $11.73 billion consensus estimate. While the margin was not wide, this outperformance came despite numerous setbacks, like rising fuel prices. The U.S. Global … Continued

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Improving Fundamentals Could Have Airlines Flying Higher

Although airlines underperformed in the beginning of 2018, improving fundamental factors, like lowering oil prices and the improving U.S. economy, may encourage both business and leisure travel. The airline sector shows relatively cheap valuations and improved dividend-yield growth according to ETF Trends. The U.S. Global Jets ETF (JETS) is the only ETF dedicated exclusively to … Continued

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jet fuel

Airline ETFs Try to Pick Up Speed for Summer

Although transportation stocks faced challenges at the start of 2018, some funds are starting to regain momentum, according to Benzinga. Analyst Stewart Glickman reports that “CFRA [Research] attributes weakness in the airline stocks to higher jet fuel costs.” Despite this, he is clear that “we see many positives related to demand, pricing, cash flow and … Continued

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