Despite Posting Mixed Fourth Quarter Earnings U.S. Airlines Showing Investors Strong Gains in 2013
http://media.marketwire.com/attachments/201212/107982_FSE_Logo.gifhttp://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=978762&ProfileId=051205&sourceType=1NEW YORK, NY -- (Marketwire) -- 01/28/13 -- Despite posting mixed fourth quarter earnings, U.S. airline stocks have surged in 2013. The Guggenheim Airline ETF (FAA), which tracks the performance of the NYSE ARCA Global Airline Index, has posted a gain of nearly 12 percent year-to-date compared to Dow Jones' gain of 5.5 percent over the same period. Five Star Equities examines the outlook for companies in the Airlines Industry and provides equity research on Alaska Air Group, Inc. (NYSE: ALK) and JetBlue Airways Corporation (NASDAQ: JBLU).
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The International Air Transport Association (IATA) recently revised their industry financial outlook. The IATA now predicts the global airline industry to post a profit of $6.7 billion in 2012, up from their previous forecast of $4.1 billion, and in 2013 profits are expected to continue to rise to $8.4 billion. North American carriers are expected to end 2012 with a collective net profit of $2.4 billion.
"With GDP growth close to the 'stall speed' of 2.0% and oil at $109.5/barrel we expected much weaker performance. But airlines have adjusted to this difficult environment through improving efficiency and restructuring. That is protecting cash flows against weak economic growth and high fuel prices," said Tony Tyler, IATA's Director General and CEO.
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Alaska Airlines and Horizon Air, subsidiaries of Alaska Air Group, together serve more than 95 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. The company recently reported a record full-year net income, excluding special items, of $339 million, compared to $287 million a year ago.
JetBlue serves 75 cities with 750 daily flights and plans to launch service to Albuquerque, New Mexico; Charleston, S.C.; Philadelphia, Pennsylvania; and Medellin, Colombia subject to government approval in 2013. The company is scheduled to release their fourth quarter and full year results on Tuesday, January 29th.
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