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Fly News Breaks for February 27, 2020
Feb 27, 2020 | 08:18 EDT
Buckingham analyst Daniel McKenzie downgraded seven airline stocks to Neutral from Buy, citing demand impact from COVID-19 that likely proves far greater than investors appreciate based on the data he tracks. The analyst downgraded American Airlines (AAL), Allegiant (ALGT), Alaska Air (ALK), JetBlue (JBLU), Southwest (LUV), Spirit Airlines (SAVE) and United Airlines (UAL). McKenzie tells investors in a research note that his firm's booking study this past Monday captured the near-collapse of demand to Asia last week, but notes that his earnings and ratings outlook did not contemplate the collapse spreading to other regions which likely proves to be a flawed assumption based on CDC warnings. While he had expected the stocks to fall another 10%-15%, he is now concluding the pullback is likely going to be stronger for longer. If the collapse in demand to Asia is a sign of things to come in other geographic entities, the stocks are not even close to discounting the potential demand fallout from a broader spread of COVID-19, McKenzie says.
News For AAL;ALGT;ALK;JBLU;LUV;SAVE;UAL From the Last 2 Days
Sep 21, 2021 | 16:27 EDT
JetBlue CEO Robin Hayes writes: "Dear Crewmembers, COVID-19 has thrown unimaginable challenges at us, and we've worked together to manage them every step of the way. We played defense to reduce spending and maintain our 21-year no furlough commitment, but we also went on the offense by investing in new routes and BlueCities that bring more of JetBlue's competitive effect and low fares to the market. Our Northeast Alliance (NEA) with American Airlines is an example of how we played offense to not only get our fleet and Crewmembers flying again, but also set up JetBlue for long-term growth and bring more competition to the Northeast. Given our focus on the NEA, I wanted to talk about action the U.S. Department of Justice (DOJ) is taking in federal court to unwind the NEA. Regardless of what the DOJ claims about us in court and in the media, it's important you know that JetBlue's commitment to competition and low fares remains as strong as ever. This is not at all like a merger with American - we have two different business models and are not working together on pricing. It's also important that you have the full picture on benefits the NEA is already delivering, and I want to reassure you that the DOJ's action will not affect our plans to continue implementing the NEA... While we have built a successful business in both New York and Boston, our runway for growth in the Northeast to challenge global legacy carriers Delta and United is limited. And I'm sad to say that our biggest obstacle to bringing more low fares and great service to the Northeast right now is the DOJ - the very government agency that should be making every effort to foster robust competition among airlines. In New York's airports, there has been quite literally no room for us to add flights. There are no slots available at LGA and JFK, and it remains extremely difficult to grow in Newark given gate and space constraints. Delta and United - with large international networks, ample financial resources, and significant airport gate and slot holdings - have a lock on the market and make it impossible for an airline like JetBlue to grow and introduce sorely needed low-fare competition. In Boston, Customers really love flying JetBlue, but our sales pitch is hampered by a relative lack of network breadth and depth compared to the deep-pocketed legacy airline that plans to grow even further there." Reference Link
Sep 21, 2021 | 14:56 EDT
"[The Justice Department is] wrong and we will prove it. If indeed, as we expect, they issue a lawsuit, we will defend it. The good news about this is that it is entirely pro-competitive. We and JetBlue are putting our networks together to provide more choice to consumers, to increase competition particularly in the Northeast - in New York and Boston where American doesn't have as big of a presence as Delta [DAL] and United [UAL] and where JetBlue is larger but can't compete as well against them. By putting our networks together, we give more choices to consumers and it's already working. We have been at this now since January and we've already increased frequencies to new communities," Doug Parker, American Airlines' CEO, said during an interview with The Washington Post's Heather Long. According to earlier media reports, the Department of Justice is preparing to file a lawsuit that could come as soon as Tuesday to challenge American Airlines (AAL) and JetBlue's (JBLU) alliance announced in July 2020 as anticompetitive. Reference Link
Sep 21, 2021 | 12:04 EDT
Get caught up quickly on the top news and calls moving stocks with these Top Fives, as compiled by the editors of The Fly.  1... To see the rest of the story go to See Story Here
Sep 21, 2021 | 16:29 EDT
Get caught up quickly on the top news and calls moving stocks with these Top Fives, as compiled by the editors of The Fly. 1... To see the rest of the story go to See Story Here