Oil prices drop to a 7-month LOW...
Joined: Aug 2008
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From: Polar Route
The CX management lot really does lack imagination. They might as well be playing propaganda recordings over the loudspeakers at the Hanoi Hilton, uh I mean the Headland Hotel. It's sad that they can find nothing better to do than try to brainwash and marginalize their own employees. Good companies empower their employees with skills training, functional knowledge, and various incentives to be more productive. This lot is only striving towards the next round of cost cutting. Bean counters rule while real leaders become the butt of jokes at their dinner parties. Sound like a company whose stock you want to own?
For comparison, take a look at the labour histories of two very successful companies, Southwest Airlines and Costco. See any differences???
For comparison, take a look at the labour histories of two very successful companies, Southwest Airlines and Costco. See any differences???
Joined: Aug 2002
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From: on thin ice
From the other side of the pond:
Analysts Raise Airline Estimates Across the Board
Ted Reed
05/24/12 - 09:58 AM EDT
CHARLOTTE, N.C. (TheStreet) -- Analysts are upgrading the entire airline industry because lower fuel prices, combined with
continuing strong demand, likely mean higher profits for carriers.
Airline operating profits should rise 55% in 2012 and another 40% in 2013, JPMorgan analyst Jamie Baker wrote in a report
issued Thursday. Airline shares were rising shortly after the opening Thursday, with Delta (DAL), United (UAL) and US
Airways (LCC) all up around 5% in mid-morning trading.
"Lower fuel has a material impact (and) jet fuel prices have collapsed roughly 40 cents per gallon since February,
representing an annualized $5.5 billion windfall for the industry," Baker wrote. "Yet, since the end of earnings (season)
consensus has barely budged.
"Consensus appears wholly inadequate to us," he said.
Baker raised year-end price targets to $39.50 from $37.50 for Alaska (ALK); to $17 from $14.50 for US Airways; to $38
from $35 for United; to $9 from $8.50 for JetBlue (JBLU); and to $12.50 from $12 for Southwest (LUV). (JP Morgan is
restricted regarding Delta following its involvement in an April 30th transaction.)
Baker's upgrades follow similar actions earlier this week by Dahlman Rose analyst Helane Becker and Bank of America
Merrill Lynch analyst Glenn Engel, who also raised estimates for all carriers.
"With lower jet fuel costs and improving revenues we are adjusting our second quarter and 2012 estimates," Becker wrote.
"On average we lowered jet fuel and increased EPS by 10 cents."
Becker has buys on Alaska, Delta, Southwest, Spirit (SAVE) and United and holds on JetBlue and US Airways, which is
trading partially on merger speculation and has already risen 110% this year. Engel, meanwhile, wrote that "many airline
stocks have more than 50% upside potential over the next year." His top pick is Delta, with a $15 price target.
Ted Reed
05/24/12 - 09:58 AM EDT
CHARLOTTE, N.C. (TheStreet) -- Analysts are upgrading the entire airline industry because lower fuel prices, combined with
continuing strong demand, likely mean higher profits for carriers.
Airline operating profits should rise 55% in 2012 and another 40% in 2013, JPMorgan analyst Jamie Baker wrote in a report
issued Thursday. Airline shares were rising shortly after the opening Thursday, with Delta (DAL), United (UAL) and US
Airways (LCC) all up around 5% in mid-morning trading.
"Lower fuel has a material impact (and) jet fuel prices have collapsed roughly 40 cents per gallon since February,
representing an annualized $5.5 billion windfall for the industry," Baker wrote. "Yet, since the end of earnings (season)
consensus has barely budged.
"Consensus appears wholly inadequate to us," he said.
Baker raised year-end price targets to $39.50 from $37.50 for Alaska (ALK); to $17 from $14.50 for US Airways; to $38
from $35 for United; to $9 from $8.50 for JetBlue (JBLU); and to $12.50 from $12 for Southwest (LUV). (JP Morgan is
restricted regarding Delta following its involvement in an April 30th transaction.)
Baker's upgrades follow similar actions earlier this week by Dahlman Rose analyst Helane Becker and Bank of America
Merrill Lynch analyst Glenn Engel, who also raised estimates for all carriers.
"With lower jet fuel costs and improving revenues we are adjusting our second quarter and 2012 estimates," Becker wrote.
"On average we lowered jet fuel and increased EPS by 10 cents."
Becker has buys on Alaska, Delta, Southwest, Spirit (SAVE) and United and holds on JetBlue and US Airways, which is
trading partially on merger speculation and has already risen 110% this year. Engel, meanwhile, wrote that "many airline
stocks have more than 50% upside potential over the next year." His top pick is Delta, with a $15 price target.
Joined: Jun 2008
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From: TD
Originally Posted by cxorcist
They might as well be playing propaganda recordings over the loudspeakers at the Hanoi Hilton, uh I mean the Headland Hotel
Joined: Jun 2009
Posts: 2,167
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From: Australia
Joined: Nov 2004
Posts: 1,803
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From: Perth - Western Australia
Don't go buying that gas-guzzler you always dreamed of owning, just yet - and don't throw all your spare cash into airline shares just yet, either. Share-price Forecasters are well known to have cloudy crystal balls.
OPEC have a particularly nasty record of screwing the taps down on the oil wells, and reducing production levels by several % points, on regular occasions, when they have become mightily displeased with the current level of oil pricing.
The reduction in production nearly always has the effect of hiking oil prices - to levels that provide squealing sounds from oil-based-product users, as their cojones are once again clamped - and this is a satisfying sound to the oil producers, and always results in a satisfying return to substantial profit levels, for aforesaid oil producers.
OPEC have a particularly nasty record of screwing the taps down on the oil wells, and reducing production levels by several % points, on regular occasions, when they have become mightily displeased with the current level of oil pricing.
The reduction in production nearly always has the effect of hiking oil prices - to levels that provide squealing sounds from oil-based-product users, as their cojones are once again clamped - and this is a satisfying sound to the oil producers, and always results in a satisfying return to substantial profit levels, for aforesaid oil producers.
Joined: May 2002
Posts: 1,124
Likes: 16
From: GC Paradise
Oil prices drop to a 7-month LOW...
Think this will this make it into Friday's updates? Place your bets.
Think this will this make it into Friday's updates? Place your bets.
Gentlemen (and Ladies),
The Company is fast approaching very difficult times once again. Fuel prices have dropped to a 7 month low. This means that fuel prices can now only go up. Therefore, the Company has to look closely at every cost centre to reduce costs to decrease the impending squeeze on its margins. We will need to reduce crew costs once again. In particular we will be looking for crew to take unpaid leave and for those who wish to help the Company in these very challenging times, we are looking for crew to undertake unpaid work.
The Boss
(on behalf of JS&S)