In the past week, JetBlue Airways JBLU reported a narrower-than-expected fourth-quarter 2024 loss. Lower operating costs aided the bottom line. Southwest Airlines LUV and Ryanair Holdings RYAAY, meanwhile, reported better-than-expected earnings per share for the final quarter of 2024. Upbeat air travel demand during the holiday period aided results.

For first-quarter 2025, LUV expects capacity (measured in available seat miles) to decline 2%-3% from the year-ago reported figure. The sharp reduction in airline seats in the U.S. market, which has driven up ticket prices, is serving U.S. carriers well. More earnings-related updates are available in the previous week’s airline roundup.

American Airlines AAL was in the news for a somber reason as an AAL flight collided with a U.S. Army helicopter in Washington, DC. Sadly, there were no survivors.  Allegiant Travel Company ALGT reported impressive traffic numbers for December, highlighting the upbeat air travel demand scenario.

Recap of the Recent Most Important Stories

1.  JetBlue reported fourth-quarter 2024 loss (excluding 8 cents from non-recurring items) of 21 cents per share, narrower than the Zacks Consensus Estimate of a loss of 30 cents. In the year-ago quarter, JBLU had reported a loss of 19 cents per share.

Operating revenues of $2.28 billion beat the Zacks Consensus Estimate of $2.26 billion but decreased 2.1% year over year. Despite the narrower-than-expected loss, JBLU shares declined following the results as investors were disappointed by its cost outlook for 2025. JBLU expects non-fuel unit costs for the current year to increase in the 5-7% range from 2024 actuals.

JBLU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

2. Southwest Airlines reported fourth-quarter 2024 earnings of 56 cents per share, which outpaced the Zacks Consensus Estimate of 45 cents and improved 51.5% from the year-ago reported quarter. Revenues of $6.93 billion missed the Zacks Consensus Estimate of $6.95 billion. The top line, however, improved 1.6% year over year on the back of the successful execution of tactical actions. For 2025, operating margin, excluding special items, is expected to be up 3-5%.

3. Ryanair reported encouraging third-quarter fiscal 2025 (ended Dec. 31, 2024) results wherein both earnings and revenues beat the Zacks Consensus Estimate.  Quarterly earnings per share of 29 cents beat the Zacks Consensus Estimate of 9 cents and improved year over year. Revenues of $3.15 billion surpassed the Zacks Consensus Estimate of $2.94 billion. The top line improved year over year on the back of solid close-in Christmas/New Year bookings.

4. At Allegiant, scheduled traffic (measured in revenue passenger miles) improved 14.8% from December 2023. Capacity (measured in available seat miles) for scheduled service improved 16.4% year over year. As traffic increase was less than capacity expansion, the load factor in December 2024 declined to 81.4% from 82.5% a year ago.

5. American Airlines CEO Robert Isom expressed “deep sorrow” after one of its aircraft with 64 people crashed following a collision with a military helicopter. The flight data and cockpit voice recorders have been recovered following the deadly midair collision. The ill-fated plane was operated by an American Airlines subsidiary. The National Transportation Safety Board is leading the investigation for this deadly crash.

Performance

The following table shows the price movement of the major airline players over the past week and during the last six months.

Image Source: Zacks Investment Research

The NYSE ARCA Airline Index increased 2.2% to $73.22, as most stocks in the table above traded in the green. Over the past six months, the NYSE ARCA Airline Index has increased by 34.5%.

What’s Next in the Airline Space?

Fourth-quarter 2024 results of carriers like Allegiant are expected in the coming days. Passenger volumes are likely to have been high, aiding their performance. However, high labor costs are likely to have been a headwind.

 

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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report

Southwest Airlines Co. (LUV) : Free Stock Analysis Report

JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report

American Airlines Group Inc. (AAL) : Free Stock Analysis Report

Allegiant Travel Company (ALGT) : Free Stock Analysis Report

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