For immediate release
Chicago, IL – May 23, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Spirit Airlines SAVE, JetBlue Airways JBLU, United Airlines UAL, Ryanair Holdings RYAAY and Gol Linhas Aéreas Inteligentes GOL.
Here are highlights from Friday’s analyst blog:
Airline Stock Roundup: The JetBlue-Spirit Saga Continues, and More
Over the past week, there have been quite a few updates about the impending takeover of Spirit Airlines. May 16, Jet Blue Airways, after being initially rejected on May 2, refused to give up and launched an unsolicited hostile cash tender offer to acquire all of SAVE’s outstanding common stock. However, the management of the latter sticks to its position and once again refuses the offer of the former.
United Airlines“Management has improved its revenue forecast for the June quarter as bookings continue to improve. In another encouraging update, UAL has received the green signal from the Federal Aviation Administration (FAA) to operate its fleet of 52 Boeing 777s again. The jets are powered by Pratt & Whitney engines.
The planes have been grounded since February 2021 after a flight to Honolulu suffered an engine failure and made an emergency landing at Denver International Airport. On the earnings side, Ryanair Holdings announced a weaker-than-expected loss per share for the fourth quarter of fiscal 2022 (ended March 31, 2022).
Also, Latin American carrier Gol Linhas Aéreas Inteligentes announced that there will be a change of leadership with a new CEO in place from July this year.
Summary of the latest Top Stories
1. In an SEC filing dated May 16, United Airlines management forecast that total revenue per available seat mile (TRASM: a measure of unit revenue) for the second quarter of 2022 would increase within the range of 23 25% compared to the second quarter of 2019. actual. According to the previous TRASM forecast, given last month when the first quarter 2022 results were released, the measure was expected to rise by around 17% compared to the actual figures for the second quarter of 2019.
However, due to rising oil prices, UAL, which currently carries a Zacks Rank #3 (Hold), increased its average aviation fuel price per gallon forecast for the June quarter. Management now waits the metric at $4.02, higher than the previous estimate of $3.43.
You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. In a letter directly to Spirit Airlines shareholders, JetBlue on May 16 changed its purchase price to $30 per share (without interest and less required withholding). At that time, the board of directors of SAVE advised its shareholders against taking rash action at this time and decided that the board of directors would first carefully consider JetBlue’s takeover bid. After review, SAVE’s board urged its shareholders to reject the $30 per share cash tender offer, citing regulatory concerns.
3. Ryanair suffered a loss (excluding 50 cents of one-time items) of 98 cents per share in the fourth quarter of fiscal 2022, narrower than the Zacks consensus estimate of a loss of $1.11 . However, the amount of losses has decreased significantly from year to year.
Quarterly revenue of $1,319.6 million was below Zacks consensus estimate of $1,356.3 million, but improved significantly year over year with higher traffic despite lower average rates (down 27% year-over-year due to Omicron-induced misfortunes and the Russian invasion of Ukraine). Ryanair expects average summer 2022 fares to be higher than summer 2019.
RYAAY expects traffic in fiscal year 2023 to be 165 million, higher than the figure for fiscal year 2022, as well as the 149 million recorded in fiscal year 2020 (pre-pandemic). RYAAY anticipates a return to profitability in fiscal 2023.
4. Gol Linhas has announced that its President and CEO, Paulo Kakinoff, will leave his current position to become a member of the board of directors. Kakinoff will be replaced by Celso Ferrer, the vice president of operations. This transition will be effective on July 1, 2022. Celso joined GOL in 2003 and has served the carrier in various capacities ever since..
GOL also made headlines recently when it announced impressive traffic figures for April, driven by the improving air travel demand scenario in Brazil. This story was covered in detail in report from last week.
The NYSE ARCA Airline Index gained 3.8% to $69.37. Over the past six months, the NYSE ARCA Airline Index has fallen 19.5%.
What’s next in airspace?
With the first quarter 2022 earnings season over for airlines, watch this space for the usual updates.
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Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Inventory Analysis Report
Gol Linhas Aereas Inteligentes SA (GOL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
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