Boeing, Airlines Flying High on Earnings (BA, DAL, LCC, AMR, LUV, UAL, JBLU, FAA)

Today’s earnings reports from Boeing Co. (NYSE: BA) and three airlines have put a little jet fuel into the market. Delta Air Lines, Inc. (NYSE: DAL), US Airways Group, Inc. (NYSE: LCC), and AMR Corp. (NYSE: AMR) all reported solid profits today. No less is expected from United Continental Holdings (NYSE: UAL), Southwest Airlines Co. (NYSE: LUV), and JetBlue Airways Corp. (NASDAQ: JBLU) tomorrow.

Boeing posted third-quarter EPS of $1.12, compared with estimates of $1.05. Revenue totaled $17 billion against estimates of $16.72 billion. The company raised its full-year EPS guidance from $3.50-$3.80 to $3.80-$4. In the same period last year Boeing reported an EPS loss of -$2.23, including charges related to delays on the company’s 787 Dreamliner and the 747-8F freighter. Revenue was up 11% year-over-year in Boeing’s commercial business, but down 6% in the defense, space, and security business. Backlog rose 3% to $321 billion, including $25 billion in new bookings during the quarter.

Delta posted EPS for its third quarter of $1.10, excluding charges. Analysts were expecting EPS of $0.94. Revenue totaled $8.95 billion for the quarter, also beating expectations of $8.82 billion.

US Air also swung to a profit n the quarter, posting EPS of $1.22 on revenue of $3.18 billion. Analysts had been expecting EPS of $1.17 on revenue of $3.18 billion. Fuel costs rose 15% at US Air, but revenue per available seat mile jumped 14%, way up from last year’s -15% drop during the same period.

American also beat EPS estimates, posting EPS of $0.39 on revenue of $5.84 billion. Analysts expected EPS of $0.32 on $5.84 billion in revenue. American’s fuel price rose 8.3% and the company is still expected to post a full-year EPS loss.

Now the pressure is on Southwest, United, and Jet Blue, all of which report earnings tomorrow. Anything less than a beat is likely to be punished.

Southwest is expected to post EPS of $0.25 on revenue of $3.17 billion. United’s targets are EPS of $2.16 on revenue of $5.91 billion, and Jet Blue is expected to post EPS of $0.19 on revenue of $1.03 billion.

Delta’s shares are up nearly 9% at noon, US Air shares are up about 6.5%, and American shares are up about 7%. Jet Blue shares are up about 8.5%, United shares are up about 5.5%, and Southwest shares are up about 4.5% ahead of earnings tomorrow.

Boeing shares are up more than 2%.

The Guggenheim Airline ETF (NYSE: FAA) includes shares in all six airlines in this article. The funds holds 20% of its equity in United, about 14.5% in both Southwest and Delta, and about 3.5% in both US Air and Jet Blue. Shares in the fund are up over 4% today as well.

Paul Ausick