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In the past week,American Airlines AAL and Hawaiian Holdings HA reported losses for fourth-quarter 2021. The same, however, narrowed year over year as the December-quarter results were better than the fourth-quarter 2020 earnings reports, despite the omicron-induced crisis.
On the non-earnings front, Gol Linhas Aereas Inteligentes GOL grabbed headlines for its deal with Castlelake to secure financing up to $600 million for buying 12 new Boeing 737 Max 8 jets. An expansion-related update from Spirit Airlines SAVE was also available over the past week.
Read the last Airline stock Roundup here.
Recap of the Latest Top Stories
1. American Airlines’ fourth-quarter 2021 loss (excluding 2 cents from non-recurring items) of $1.42 cents per share compared favorably with the Zacks Consensus Estimate of a loss of $1.51. Quarterly loss per share was also narrower than the year-ago loss of $3.86. Average fuel price per gallon (including related taxes) climbed to $2.36 from $1.27 a year ago. AAL, currently carrying a Zacks Rank #4 (Sell), expects system capacity for the March quarter to decline in the 8-10% range from the figure reported in first-quarter 2019. Total revenues in the first quarter of 2022 are anticipated to decline in the 20-22% band from the level recorded in first-quarter 2019. Fuel cost per gallon in first-quarter 2022 is expected in the $2.41-$2.46 band. Fuel gallon consumption is expected to be $934 million. CASM excluding fuel and special items is expected to increase in the 8-10% range in the first quarter of 2022 from the number reported in first-quarter 2019.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Hawaiian Holdings’ fourth-quarter 2021 loss (excluding 44 cents from non-recurring items) of $1.37 per share was narrower than the Zacks Consensus Estimate of a loss of $1.69. HA reported a loss of $3.71 in the year-ago quarter. Moreover, quarterly revenues of $494.7 million surged more than 100% year over year and beat the Zacks Consensus Estimate of $493.4 million. HA expects Capacity in first-quarter 2022 to decline 10-13% from the first-quarter 2019 levels. Total revenues are anticipated to plunge 31-35% from the first-quarter 2019 levels.
3. Gol Linhas’ deal with private equity firm Castlelake is aimed at modernizing its fleet. Also, the same is in line with its objective to reach carbon neutrality by 2050. The jets to be bought consume 15% less fuel, produce 16% fewer carbon emissions and 40% less noise apart from possessing a greater flight range than the NG aircraft. The deal will include 10 finance leases and two sale-leasebacks. The interest for the lease is approximately 6%.