8/14/2014

Top 10 Airline Stocks To Watch Right Now

If you ask devoted Boeing (NYSE: BA  ) shareholders why they own it, they'll tell you there are about 787 good reasons to buy Boeing stock today -- and maybe more. Yesterday, Boeing announced that it's landed 102 orders for its most advanced Dreamliner airplane yet, the 787-10, with United Airlines (NYSE: UAL  ) signing up to buy 20 of the new birds, and Air Lease (NYSE: AL  ) and Singapore Airlines tying in the race to buy the most -- 30 Dreamliner-10s apiece.

And yes, the plane is incredibly popular. Boeing has already booked in excess of 840 orders for Dreamliners of various shapes and sizes. At the company's planned year-end, 10-planes-per-month production rate, that works out to a backlog of orders stretching seven years long. But did you know that the 787 Dreamliner isn't the only Boeing product that's doing well?

The best offense is a great defense business
Over on the other end of its business model, Boeing stock has a secret weapon that's getting far less attention than the vaunted Dreamliner -- and far less attention that it deserves.

Hot Cheapest Companies To Buy For 2015: China Eastern Airlines Corp Ltd (CEA)

China Eastern Airlines Corporation Limited (China Eastern), incorporated on April 14, 1985, is an air carriers operating in the People�� Republic of China. As of December 31, 2010, the Company served a route network that covers 182 domestic and foreign cities in 30 countries. It operates from Shanghai�� Hongqiao International Airport and Pudong International Airport. During the year ended December 31, 2010, its flights accounted for 52.2% and 37.9% of all the flight traffic at Hongqiao International Airport and Pudong International Airport, respectively. During 2010, it accounted for approximately 31.1% of the total passenger traffic volume and 19% of the total freight volume on routes to and from Shanghai. As of December 31, 2010, it had a fleet of 355 aircraft, including 337 passenger jets each with a seating capacity of over 100 seats and 18 freighters.

Passenger Operations

During 2010, the Company operated approximately 9,600 scheduled flights per week, excluding charter flights, serving a route network that covers 182 domestic and foreign cities in 30 countries. During 2010, its domestic routes generated approximately 71.5% of its passenger revenues. Its heavily traveled domestic routes link Shanghai to the commercial and business centers of the People�� Republic of China, such as Beijing, Guangzhou and Shenzhen. During 2010, it also operated approximately 361 flights per week to and from Hong Kong, originating from Shanghai and 16 major cities in eastern, northern and western the People�� Republic of China. During 2010, it operated approximately 103 flights per week between mainland China and Taiwan. During 2010, its regional routes accounted for approximately 5.4% of its passenger revenues. During 2010, it operated approximately 1,079 international flights per week, serving 60 cities in 29 countries, linking Shanghai to cities in Asian and Southeast Asian countries, such as Japan, Korea, India, Singapore, Thailand and Bangladesh and locations in Europe, the Un! ited States and Australia.

During 2010, the Company re-started its Shanghai to London and Shanghai to Moscow routes. During 2010, revenues derived from its operations on international routes accounted for approximately 23.2% of its passenger revenues. During 2010, revenues derived from its operations to and from Japan accounted for approximately 7.7% of its passenger revenues and approximately 33.4% of its international passenger revenues. Its international and regional flights and a portion of its domestic flights either originate or terminate in Shanghai, the central hub of its route network. Its operations in Shanghai are conducted at Hongqiao International Airport and Pudong International Airport. On March 16, 2010, it moved its operations at Hongqiao International Airport to the terminal two of Hongqiao International Airport. It operates its flights through three hubs located in eastern, northwestern and southwestern China, namely Shanghai, Xi��n and Kunming, respectively.

Cargo and Mail Operations

The Company�� cargo and mail business utilizes the same route network used by its passenger airline business. It carries cargo and mail on its freight aircraft, as well as in available cargo space on its passenger aircraft. Its cargo and mail routes are international routes. As of December 31, 2010, it had seven MD-11F, four B777F and two B757-200F freight aircraft under operating leases for cargo and mail operations. It also has three Airbus A300-600R aircraft, as well as two Boeing 747-400ER freighters for its cargo operations.

The Company competes with Air China Limited, China Southern Airlines Company Limited, Hong Kong Dragon Airlines Limited, Cathay Pacific Airways, Thai Airways International, Singapore Airlines, Delta Air Lines, United Airlines, American Airlines, Air Canada, Delta, Alitalia, Air France-KLM Group, Asiana Airlines, Korean Air, Virgin Atlantic Airways, British Airways, Lufthansa German Airlines, Aeroflot and Qantas Airways.

Advisors' Opinion:
  • [By Belinda Cao]

    The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. slumped 3.4 percent last week to a seven-month low of 89.04. The gauge traded at 13.5 times estimated earnings, 3.6 percent below the S&P�� valuation, data compiled by Bloomberg show. China Southern Airlines Co. (ZNH) and China Eastern Airlines Corp. (CEA) lost more than 6 percent April 5, while Home Inns & Hotels Management Inc. (HMIN) tumbled 16 percent in the week.

Top 10 Airline Stocks To Watch Right Now: Ryanair Holdings PLC (RYA)

Ryanair Holdings plc (Ryanair Holdings), is a holding company for Ryanair Limited (Ryanair). Ryanair operates a low-cost, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, and Morocco. As of June 30, 2012, the Company offered approximately over 1,500 scheduled short-haul flights per day serving approximately 160 airports largely throughout Europe with an operating fleet of 294 aircraft flying approximately 1,500 routes. Ryanair sells seats on a one-way basis. The Company also holds a 29.8% interest in Aer Lingus Group plc. As of June 30, 2012, Ryanair�� operating fleet was composed of 294 Boeing 737-800 aircraft, each having 189 seats. Ryanair�� fleet totaled 294 Boeing 737-800s at March 31, 2012. As of June 30, 2012, Ryanair owned and operated four Boeing 737-800 full flight simulators for pilot training. Advisors' Opinion:
  • [By Inyoung Hwang]

    Ryanair Holdings Plc (RYA), the discount airline operator that�� the second-biggest stock in Ireland�� ISEQ index, declined 1.7 percent to 7.23 euros in Dublin. Kerry Group, a supplier of food ingredients, sank 1.4 percent to 45.24 euros.

Top 10 Airline Stocks To Watch Right Now: Gol Linhas Aereas Inteligentes SA (GOL)

Gol Linhas Aereas Inteligentes S.A. (GoL) is a low-cost, low-fare airline in the world providing service on routes connecting all of Brazil�� cities and from Brazil to cities in South America and select touristic destinations in the Caribbean. As of March 31, 2010, GoL offered approximately 800 daily flights per day to 61 destinations connecting cities in Brazil, as well as destinations in Argentina, Bolivia, Curacao, Aruba, Chile, Colombia, Paraguay, Uruguay and Venezuela. GoL is a holding company, which owns directly or indirectly shares of five subsidiaries: VRG Linhas Aereas S.A. (VRG) and four offshore finance subsidiaries, Gol Finance Cayman and GAC Inc., which owns Sky Finance and Sky Finance II. VRG is the Company�� operating subsidiary, under which it conducts its business. Gol Finance, GAC Inc., Sky Finance and Sky Finance II are off-shore companies established for the purpose of facilitating cross-border general and aircraft financing transactions.

GoL�� passenger transportation services include ticketless travel; online sales, check-in, seat assignment and flight change and cancellation services; online flight status service; Web-enabled cell phone ticket sales and check-in; self check-in at kiosks at designated airports; designated female lavatories; friendly and efficient in-flight service; modern aircraft interiors; quick turnaround times at airport gates; free or discounted shuttle services between airports and drop-off zones on certain routes; buy on board services on certain flights; mobile check-in and boarding pass (100% paperless boarding), and iPhone application for check-in, electronic boarding pass and Smiles account management. On December 31, 2009, the Company had an operational fleet of 108 operational aircraft and a total fleet of 127. As of March 31, 2010, one of its Boeing 767 aircrafts was subleased to a charter company in the United States, one is under final formalization process for a wet lease to a Brazilian company for flights connecting Brazil to! Angola and three are under final stages of negotiation to be chartered to operate intercontinental flights. At December 31, 2009, GoL had a total of 127 aircraft, 94 of which were under operating leases and 33 were under finance leases.

The Company competes with TAM Linhas Aereas S.A.

Advisors' Opinion:
  • [By Roberto Pedone]

    One airline player that's starting to trend within range of triggering a near-term breakout trade is Gol Linhas Aereas Inteligentes (GOL), through its subsidiaries, engages in the air transportation of passengers, cargo, and mailbags in Latin America. This stock has been hammered by the bears so far in 2013, with shares off by 42%.

    If you look at the chart for Gol Linhas Aereas Inteligentes, you'll notice that this stock has been uptrending strong for the last two months, with shares moving higher from its low of $2.74 to its recent high of $3.83 a share. During that uptrend, shares of GOL have been mostly making higher lows and higher highs, which is bullish technical price action. Shares of GOL just recently formed a double bottom above its 50-day moving average at $3.57 to $3.55 a share. Shares of GOL are now starting to spike higher above those support levels and move within range of triggering a near-term breakout trade.

    Traders should now look for long-biased trades in GOL if it manages to break out above some near-term overhead resistance levels at $3.83 to $4.14 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 2.19 million shares. If that breakout triggers soon, then GOL will set up to re-test or possibly take out its next major overhead resistance level at its 200-day moving average of $5.30 a share to $6 a share.

    Traders can look to buy GOL off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $3.46 a share. One can also buy GOL off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

  • [By Jon C. Ogg]

    Gol Linhas A茅reas Inteligentes S.A. (NYSE: GOL) is a Brazilian airline carrier, as well as a mail and cargo carrier. At $4.65, the 52-week trading range is $2.74 to $7.67.

  • [By Jim Jubak]

    One place to look for it this week has been in the ADRs, the New York traded ADRs, American Depository Receipts of GOL. One of the two big Brazilian airlines is the only one that is not owned by somebody else. The symbol is (GOL). It went up like 9.5% on October 21; it went up about 4.5% on October 22, pulled back a tiny little bit on October 23, but still a major, major move. This is basically on the effect of a weaker dollar versus the Brazilian real, since GOL is basically a domestic airline and almost all their revenue is denominated in real, which means that when the real gets cheap against the dollar, it hurts their revenue, especially because most of their costs, a lot of their costs, probably about 80% of their costs are denominated in dollars. A strong dollar means what they pay for oil, kerosene, jet fuel, what they pay for debt service, what they pay on airplane leases, all denominated in dollars, goes up, so GOL has been getting hammered on this. The reversal of this is a big deal for the stock.

  • [By Jake L'Ecuyer]

    Gol Linhas Aereas Inteligentes (NYSE: GOL) was down, falling 6.31 percent to $4.0850 after the company posted a loss in the third quarter.

    Commodities
    In commodity news, oil traded up 1.33 percent to $94.28, while gold traded up 0.28 percent to $1,274.70.

Top 10 Airline Stocks To Watch Right Now: Virgin Australia Holdings Ltd (VBHLF)

Virgin Australia Holdings Limited (VAH) is an Australia-based company engaged in the development and operation of domestic and international airlines. VAH�� fleet includes ATR-72, Embraer 190, Boeing 737-700, Boeing 737-800, AIRBUS A330 and Boeing 777-300ER. It product includes Airbus A330 Business Class. During the fiscal year ended June 30, 2012, the Company carried 19,468,929 guests on 216 city pairs to 52 destinations, and operated 162,817 flights. On February 22, 2012, under the proposal, all of the shares in the international airline business of Virgin Australia were transferred to a new holding company, Virgin Australia International Holdings Pty Ltd. In April 2013, it acquired 100% of the issued share capital in Skywest Airlines Ltd. In July 2013, Virgin Australia Holdings Limited announced that it has acquired 60% interest of Tiger Airways Australia Pty Limited from Tiger Airways Holdings Limited. Advisors' Opinion:
  • [By MARKETWATCH]

    LOS ANGELES (MarketWatch) -- Australian stocks gave ground in early Friday trading, with banks broadly lower after overnight losses in the U.S., where investors worried that better-than-expected data would prompt the Federal Reserve to roll back stimulus soon. The S&P/ASX 200 (AU:XJO) lost 0.4% to 5,178.30, as National Australia Bank Ltd. (AU:NAB) (NAUBF) fell 1.8%, Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) lost 0.8%, and Macquarie Group Ltd. (AU:MQG) (MCQEF) retreated 1.3%. Among the resource shares, losses for gold both in New York and in early Asian electronic trade helped send Evolution Mining Ltd. (AU:EVN) (CAHPF) down 1.9% and Kingsgate Consolidated Ltd. (AU:KCN) (KSKGF) off 4.5%, though Newcrest Mining Ltd. (AU:NCM) (NCMGF) held the drop to 0.4%. Oil prices managed a modest gain, however, resulting in a 0.2% rise for Oil Search Ltd. (AU:OSH) (OISHF) and Karoon Gas Australia Ltd. (AU:KAR) (KRNGF) , while Woodside Petroleum Ltd. (AU:WPL)

Top 10 Airline Stocks To Watch Right Now: Grupo Aeromexico SAB de CV (AEROMEX*)

Grupo Aeromexico SAB de CV is a Mexican holding company primarily engaged in the provision of passenger and cargo air transport services. It offers destinations in Mexico, the United States, Europe, Central and South America, Asia and Canada. It operates a fleet of over 110 aircrafts. The Company is primarily engaged in the passenger transportation segment, comprising regional, domestic and international routes, and package holidays; as well as in cargo transportation segment, handled mainly by its subsidiary Aeromexico Cargo. By its subsidiaries the Company is also engaged in real estate sector and in providing services to the aviation companies, including personnel training, management, and aircraft maintenance and modification. Its subsidiaries include Aerovias de Mexico SA de CV, Premier Loyalty & Marketing SAPI de CV, and Inmobiliaria Avenida Fuerza Aerea Mexicana 416 SA de CV, among others. In addition, it is a member of the SkyTeam airline alliance. Advisors' Opinion:
  • [By Jonathan Levin]

    Volaris became Mexico�� second publicly traded carrier, after larger competitor Grupo Aeromexico SAB (AEROMEX*) sold stock in 2011. Airlines in Mexico have expanded into a void left when Cia. Mexicana de Aviacion, then largest based on passenger traffic, sought protection from creditors and ceased operations in 2010.

Top 10 Airline Stocks To Watch Right Now: Alaska Air Group Inc. (ALK)

Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.

Advisors' Opinion:
  • [By Adam Levine-Weinberg]

    Unintended consequences?
    As I detailed last month, virtually every major U.S. airline is participating in the upgauging trend. Some, like JetBlue Airways (NASDAQ: JBLU  ) , are expanding their fleets with larger aircraft than they have previously flown. Others, including Alaska Air (NYSE: ALK  ) , are retrofitting existing planes to fit more seats onboard. Southwest Airlines (NYSE: LUV  ) is doing both of these things! Others, like Delta Air Lines (NYSE: DAL  ) , are buying larger planes to replace smaller ones that are being removed from service.

  • [By Tim Beyers]

    Who wins? We won't know for years, but Southwest is already the leading buyer of the MAX, and as such, seems to be a likely benefactor. There's also Alaska Airlines (NYSE: ALK  ) , which already flies from the continental west coast to various destinations in the Hawaiian Islands. The airline has ordered 37 of the planes to upgrade its fleet.

Top 10 Airline Stocks To Watch Right Now: Singapore Airlines Ltd (SINGY)

Singapore Airlines Limited is a passenger air transportation company. The Company, together with its subsidiaries, is engaged in passenger and cargo air transportation, engineering services, training of pilots, air charters and tour wholesaling and related activities. The Company consists of 101 aircrafts. The Company operates in four segments: airline operations, cargo operations, engineering services and others. The Company's subsidiaries are SIA Engineering Company Limited (SIAEC), SIA Cargo and SilkAir (Singapore) Private Limited (SilkAir). Effective December 24, 2013, Singapore Airlines Ltd, a unit of Temasek Holdings (Pte) Ltd, raised its interest to 40.004% from 32.67% by acquiring a 7.334% interest in Tiger Airways Holdings Ltd from Dahlia Investments Ptye Ltd and Aranda Investments Pte Ltd. Advisors' Opinion:
  • [By Bruce Kennedy]

    Business travel columnist Joe Brancatelli reports the world's longest non-stop commercial route, the Singapore Airlines (OTC: SINGY) 18-hour, business class-only flight between Newark, N.J. and Singapore, will end on Saturday. The airline also retired the world's second-longest non-stop flight, Los Angeles-to-Singapore, last month.

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