Airline Stocks: Analysts and Investors Disagree

Airline stocks are down, despite the airlines’ efforts to keep ticket prices high.  Analyst Helane Becker with Dahlman Rose was quoted by Markewatch as saying, “October looks pretty good and it is in line with what management said earlier, so no surprises so far.  Price is pretty strong, and I suspect we will have good numbers in respect to the holiday season.” But investors don’t seem to be impressed as evidenced by the industry’s market performance.

Many analysts believe the outlook for the airline industry will remain bleak.  The Air Transport Association predicts a 2% decline in people flying over the Thanksgiving season as compared to last year and there is speculation that the slow economy will continue to trickle over to next year causing there to be fewer business travelers as well.

The key to weathering the storm seems to be keeping capacity tight.  CNN Money reports that Delta’s (NYSE:DAL) traffic declined sharply in the month of October, but the airline was able to pull down capacity at close to the same rate.  Lowering capacity at the same rate or faster than declining demand keeps ticket prices high.

Here’s how airline stocks are trading:

  • Delta Air Lines Inc. (NYSE:DAL): The shares recently traded at $8.35, up $0.05, or 0.6%. Its market capitalization is $7.07 billion. They have traded in a 52-week range of $6.41 to $14.54. Volume today was 6,646,824 shares versus a 3-month average volume of 13,980,300 shares. The company’s trailing P/E is 15.75, while trailing earnings are $0.53 per share. About the company: Delta Air Lines, Inc. provides scheduled air transportation for passengers, freight, and mail over a network of routes throughout the United States and internationally. Get the most recent company news and stock data here >>
  • AMR Corporation (NYSE:AMR): The shares recently traded at $2.49, down $0.11, or 4.23%. Its market capitalization is $834.72 million. They have traded in a 52-week range of $1.75 to $8.98. Volume today was 6,787,943 shares versus a 3-month average volume of 12,617,500 shares. The company’s trailing earnings are $-2.93 per share. About the company: AMR Corporation operates an airline that provides scheduled passenger, freight, and mail service throughout North America, the Caribbean, Latin America, Europe, and the Pacific. The Company also provides connecting service throughout the United States, Canada, and the Caribbean. In addition, AMR provides aviation services, call center management services, and investment advisory services. Get the most recent company news and stock data here >>
  • United Continental Holdings (NYSE:UAL): The shares recently traded at $18.65, down $0.2, or 1.06%. Its market capitalization is $6.17 billion. They have traded in a 52-week range of $15.92 to $29.59. Volume today was 2,176,131 shares versus a 3-month average volume of 6,505,160 shares. The company’s trailing P/E is 15.50, while trailing earnings are $1.20 per share. About the company: United Continental Holdings Inc. is an airline holding company. The Company owns and operates airlines that transports persons, property and mail throughout the United Statesand abroad. Get the most recent company news and stock data here >>
  • Southwest Airlines Co. (NYSE:LUV): The shares recently traded at $8.49, down $0.1, or 1.16%. Its market capitalization is $6.61 billion. They have traded in a 52-week range of $7.15 to $14.32. Volume today was 4,362,675 shares versus a 3-month average volume of 11,978,000 shares. The company’s trailing P/E is 43.32, while trailing earnings are $0.20 per share. The company pays a dividend of $0.02 per share for a dividend yield of 0.20%. About the company: Southwest Airlines Co. is a domestic airline that provides primarily short-haul, high-frequency, point-to-point service. The Company offers flights throughout the United States. Get the most recent company news and stock data here >>
  • US Airways Group, Inc. (NYSE:LCC): The shares recently traded at $5.50, down $0.11, or 1.96%. Its market capitalization is $891.62 million. They have traded in a 52-week range of $4.53 to $12.26. Volume today was 4,913,992 shares versus a 3-month average volume of 7,670,560 shares. The company’s trailing P/E is 10.96, while trailing earnings are $0.50 per share. About the company: US Airways Group, Inc. is an air carrier that transports passengers, property, and mail. The Company provides regularly scheduled service at airports in the United States, Canada, Europe, the Caribbean, and Latin America. Get the most recent company news and stock data here >>
  • JetBlue Airways Corporation (NASDAQ:JBLU): The shares recently traded at $4.38, down $0.07, or 1.57%. Its market capitalization is $1.30 billion. They have traded in a 52-week range of $3.49 to $7.60. Volume today was 1,824,874 shares versus a 3-month average volume of 4,753,500 shares. The company’s trailing P/E is 14.04, while trailing earnings are $0.31 per share. About the company: JetBlue Airways Corporation provides nonstop passenger flight service through its Airbus A320 aircraft. The Company’s airline is based in New York’s John F. Kennedy Airport and currently flies to various destinations in the United States. Get the most recent company news and stock data here >>

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