Transportation
Airlines Hit New Highs, Driven by Earnings and Oil
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Falling oil prices over the past seven months have negatively impacted some industries. However, one big winner from lower crude prices has been the airlines. The lower cost oil yields a lower cost to fuel the jets, which in turn broadens the margins of the major airlines. In Thursday’s trading, all the major airlines hit new 52-week highs following positive earnings reports from United Continental Holdings Inc. (NYSE: UAL) and Southwest Airlines Co. (NYSE: LUV).
United reported its fourth-quarter earnings at $1.20 per share on $9.3 billion in revenues, against Thomson Reuters consensus estimates of $1.22 in earnings per share and $9.31 billion in revenue. The same period last year had $0.78 in earnings per share and $9.33 billion in revenue. Shares were up 4% at $72.08 in the second half of the trading day. The stock has a consensus analyst price target of $82.26 and a 52-week trading range of $36.65 to $73.19.
Southwest reported its fourth-quarter financials as $0.59 in earnings per share and $4.63 billion in revenues. That was against consensus estimates of $0.55 in earnings per share and $4.59 billion in revenue. The fourth quarter from the previous year had $0.33 in earnings per share and $4.43 in revenue. Shares were up 8% at $45.04. The stock has a consensus analyst price target of $51.31 and a 52-week trading range of $20.22 to $45.17.
American Airlines Group Inc. (NASDAQ: AAL) saw its shares rise 3% to $55.19. It has a consensus analyst price target of $69.91 and a 52-week trading range of $28.10 to $55.30. American Airlines will report earnings on January 27.
Delta Air Lines Inc. (NYSE: DAL) saw its share price increase 2% to $50.17. Its consensus price target is $63.63, and the 52-week trading range is $29.12 to $50.24. Delta reported its earnings earlier this week.
JetBlue Airways Corp. (NASDAQ: JBLU) saw its stock rise 6% to $16.24. The consensus price target is $18.63. The 52-week trading range is $7.61 to $16.21. JetBlue plans to report its earnings on January 29.
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