Hello to everyone on what is a dark and stormy night here in the DFW Metroplex. This week’s mega-earnings issue of PlaneBusiness Banter is now posted. Be prepared. It’s another long one.
This week we take an in-depth look at the recent third quarter earnings from JetBlue, Hawaiian, Allegiant, and Alaska Air Group.
All in all, a very impressive group of industry representatives.
If you are looking for an airline that is doing its best to run itself like a real honest-to-god profitable investment for its shareholders, look no further than Alaska Air Group, which is now poised to hit its 10% ROIC target for the year.
Not only that but the airline posted an exceptional operating margin for the quarter.
I can’t say enough good things about the management team at Alaska. They have done one heck of a job over the last five years at the airline.
Hawaiian Airlines also had a very good quarter, although the airline continued to see fierce price competition on its trans-Pacific routes. I like the airline’s continued expansion into Asia as a good hedge against the continuing trans-Pacific warfare.
JetBlue posted good numbers as well, and that ROIC metric was thrown around in their call as well. The airline has postponed some aircraft deliveries, it continues to work through its migration to the Sabre reservation system, and overall the numbers for the quarter were good.
Allegiant came in a bit above the analyst consensus numbers that were in place in mid-October, but the air travel company that also happens to run Allegiant Air didn’t quite come in as high as had been previously modeled by most analysts. So — their results were a bit of a good news, “okay” news situation. In terms of the stock — the news was good enough to create a short squeeze on shares of the airline’s stock though. Going into October the airline was the most heavily shorted of all the airline stocks.
This last week yours truly was at Southwest Airlines for their Media Day event. I talk a lot about that in this week’s issue as well. Yes, the rumor is true. The airline had all us media types board an aircraft outside its hangar at the airline’s headquarters — to show us how fast its Row 44 Wi-Fi product is — and it wouldn’t work. We couldn’t connect.
I felt sorry for them. We’ve all been there, right?
Lots more about what we heard and saw over on Denton Drive in this week’s issue.
Also — the hot topic that is filling up our email bag this week are the various heated communications that are coming from almost every pilot union or pilot MEC group that we know of. The subject? The new “enhanced” security measures that the TSA just rolled out this week that includes the “body scanners” in addition to pat downs that we have heard from various people go way beyond what most people are comfortable with.
I fly to Los Angeles on Wednesday. I always get nabbed for secondary screening anyway because of this hunk of titanium that is in my leg. I am not going to be happy if now, I am subjected to a more “enhanced” pat down every time I fly as a result.
Anyway, we talk about all that as well.
We’ve got all kinds of other stuff too in what I figure is easily another 100 plus page issue this week.
Subscribers can access this week’s issue here.