Many countries, including the United States, have reported record-breaking COVID-19 omicron infections. In addition, the WHO has warned that the variant always presents a “very high” risk. This caused airlines cancel more than 2,000 flights since Christmas Eve. Additionally, customers voluntarily cancel their vacation flights.
According to FlightAware, which tracks real-time flight status within, to or from the United States, 1,237 flights were canceled today. Additionally, many travel experts believe the omicron variant could lead to significant trip cancellations in the first quarter of 2022.
Against this backdrop, we believe investors would be better off avoiding fundamentally weak stocks in airlines Delta Air Lines, Inc. (DAL), United Airlines Holdings, Inc. (UAL), American Airlines Group Inc. (AAL) and JetBlue Airways Corporation (JBLU).
Delta Air Lines, Inc. (DAL)
DAL is an Atlanta, Georgia-based airline company serving the United States and the world. The company operates through two segments: the airline and the refinery. It also maintains complementary portfolio activities, such as its freight business and its maintenance, repair and overhaul (MRO) operation. DAL operates a fleet of approximately 1,100 aircraft.
DAL’s total operating revenue was $ 9.15 billion in the quarter ended September 30, 2021. However, the company’s total exploitation charges reached $ 6.95 billion.
DAL’s EPS is expected to decline by 23.7% per year over the next five years. The stock has lost 9.7% of its price in the past three months.
DAL POWR odds are consistent with this grim outlook. POWR ratings evaluate stocks based on 118 distinct factors, each with its own weight. The stock has a D rating for stability. We also rated DAL for growth, value, momentum, sentiment and quality. Click here to access all DAL assessments. DAL is ranked n ° 3 out of 31 stocks in ranking F Airlines companies industry.
United Airlines Holdings, Inc. (UAL)
UAL provides air transportation services to North America, Asia, Europe, Africa, the Pacific, the Middle East and Latin America. The Chicago-based company transports people and goods, sells fuel, and provides catering, ground support and maintenance services to third parties.
This month, UAL and Honeywell joined a multi-million dollar investment in cleantech firm Alder Fuels. If UAL should be able to use a carbon-negative fuel thanks to this investment, it could weigh heavily on its expenses in the months to come.
During the third quarter, ended September 30, 2021, UAL’s total operating revenues increased 211.4% year-on-year to $ 7.75 billion. However, the company’s total operating expenses rose 63.6% from their value a year ago to $ 6.71 billion. Its total non-operating income was $ 434 million during the period.
UAL’s EPS is expected to decline by 129.1% per year over the next five years. The stock has lost 9.8% of its price in the past three months.
It’s no surprise that UAL has an overall D rating, which equates to Sell in our POWR rating system. Additionally, the stock has an F rating for stability and a D rating for sentiment. Click here to see additional POWR ratings for UAL (Value, Growth, Momentum, and Quality). UAL is ranked # 21 in the Airlines companies industry.
American Airlines Group Inc. (AAL)
Based in Fort Worth, Texas AAL, which operates as a networked air carrier, offers an average of nearly 6,700 daily flights to 350 destinations in 50 countries. The company provides scheduled air transportation services for passengers and freight through its hubs in Charlotte, Chicago, Dallas / Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, DC
For the third quarter, ended September 30, 2021, AAL’s total operating revenue increased 182.7% year-over-year to $ 8.97 billion. However, the company’s total operating expenses rose 38.6% from its value a year ago to $ 8.37 billion. Its interest expense increased 40% from the prior year quarter to $ 476 million.
Analysts expect AAL’s EPS to decline 105.1% annually over the next five years. The stock has lost 11.1% of its price in the past three months.
AAL’s poor outlook is also apparent in its POWR assessments. The stock has an F rating for sentiment and a D rating for stability. In addition to the POWR ratings that I have highlighted, we can see the AAL ratings for growth, value, momentum and quality. here. AAL is ranked # 14 in the Airlines companies industry.
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JetBlue Airways Corporation (JBLU)
Established in 1998, JBLU in Long Island City, New York, a global travel company that provides passenger air transportation services. The company’s segments include the domestic market, the Caribbean and Latin America. As of December 31, 2020, the company operated a fleet of 63 Airbus A321, 1 Airbus A220, 13 Airbus A321 neo, 130 Airbus A320 and 60 Embraer E190.
JBLU’s total operating revenues increased 300.8% year-on-year to $ 1.97 billion in the third quarter, ended September 30, 2021. However, the company’s total operating expenses increased by 77.2% compared to the value of a year ago to reach $ 1.79 billion. And his interest charge was $ 42 million.
JBLU’s EPS is expected to decline 126.4% per year over the next five years. The stock has lost 9% of its price in the past three months.
JBLU’s POWR ratings are consistent with this grim outlook. The stock has a D rating for sentiment and stability. We also rated JBLU for growth, value, momentum and quality. Click here to access all JBLU reviews. JBLU is ranked # 11 in the Airlines companies industry.
DAL shares fell $ 0.18 (-0.44%) in pre-market trading on Wednesday. Year-to-date, the DAL has gained 3.86%, compared to 0.55% for the benchmark S&P 500 over the same period.
About the Author: Priyanka Mandal
Priyanka is an avid investment analyst and financial journalist. After earning a master’s degree in economics, her interest in financial markets motivated her to embark on her career in investment research. Following…