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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe see record airline revenues in Q2 and Q3, says Cowen’s Helane BeckerHelane Becker, Cowen managing director, joins 'Squawk Box' to discuss the state of the aviation industry, travel demand, and more.
Cowen's Helane Becker previews FedEx ahead of earnings
  + stars: | 2023-03-16 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCowen's Helane Becker previews FedEx ahead of earningsHelane Becker, Cowen, joins 'Closing Bell' to discuss FedEx ahead of the company reporting its earnings after the bell.
In this article LUV Follow your favorite stocks CREATE FREE ACCOUNTGenaro Molina | Los Angeles Times | Getty ImagesWill the majority of travelers forgive Southwest Airlines and start buying tickets on the major U.S. air carrier again? Southwest Airlines accepted the blame for its technological meltdown during the holidays, and it has committed over $1 billion to fixing it. He pointed to $29 fare sales, "something I haven't seen Southwest offer in a long time," he said. The Southwest spokeswoman said the airline has a long history of innovation and pioneering technology in the airline industry. BALTIMORE, MD - DEC 27: Hundreds of passengers wait in line to handle their baggage claim issues with Southwest Airlines at Baltimore/Washington International Thurgood Marshall Airport in Baltimore, Maryland on December 27, 2022.
New York CNN —Southwest Airlines’ customers are furious about the company’s Christmas week service meltdown. Southwest said that it lost about $350 million in ticket sales for January and February because people have avoided bookings on the airline. No wonder: the holidays are perhaps the worst time of the year to strand customers. One group that has clearly not forgiven Southwest as of yet is airline investors. Southwest (LUV) shares closed Tuesday down only 1% from where they closed December 19, the day before the meltdown started.
Southwest, which also reported a loss in the fourth quarter, estimates a revenue hit of between $300 million and $350 million in the first quarter. A Southwest Airlines jetliner departs from Chicago Midway International Airport in Chicago, Illinois, U.S., December 27, 2022. He said while a recessionary economic environment tends to make companies de-prioritize spending on technology, Southwest cannot afford to do that. The meltdown led to an adjusted loss of $226 million, or 38 cents a share, in the quarter through December, robbing it of the gains from booming holiday travel demand. Rival carriers United Airlines (UAL.O) and Delta Air Lines (DAL.N) American Airlines (AAL.O) have all reported higher-than-expected earnings for the quarter.
Jan 26 (Reuters) - U.S. airlines expect strong travel demand that drove record fourth-quarter revenues to continue into 2023, but economic uncertainty and burgeoning labor and operations costs could cloud their rosy outlooks. On Thursday, American Airlines (AAL.O), JetBlue Airways Corp (JBLU.O) and Alaska Air Group (ALK.N) forecast better-than-expected full-year earnings. JetBlue forecast expenses excluding fuel to rise 1.5% to 4.5% in 2023. China's recent reopening may also boost international travel, but demand remains uncertain and U.S. airlines face challenges toward cashing in. American Airlines forecast an adjusted profit of $2.50 to $3.50 per share for 2023, handily beating analyst expectations of $1.77, according to Refinitiv data.
Jan 26 (Reuters) - U.S. carriers on Thursday gave strong earnings forecasts for the year despite economic worries after buoyant demand for air travel during the crucial holiday season helped lift quarterly results. On Thursday, American Airlines (AAL.O), JetBlue Airways Corp (JBLU.O) and Alaska Air Group (ALK.N) all forecast better-than-expected earnings for the full year. The company's Northeast Alliance partner American Airlines forecast an adjusted profit of $2.50 to $3.50 per share for 2023, handily beating analyst expectations of $1.77, according to Refinitiv data. "As we turn our attention to 2023, we will continue to prioritize reliability, profitability and debt reduction," American Airlines Chief Executive Robert Isom said. read moreBoth American Airlines and JetBlue posted fourth-quarter earnings that beat estimates on Thursday.
CHICAGO, Jan 18 (Reuters) - U.S. airlines posting strong financial results remain upbeat about travel demand, even as economists and analysts say the risk of an economic recession has gone up. If anything, they say, the relationship between passenger revenue and broader economy is returning to pre-pandemic trend. United estimates domestic passenger revenue used to account for about 0.5% of the country's GDP. It expects the trend to be restored this year, resulting in 15% higher revenue for the industry this year. "Demand remains strong, pricing is likely to remain favorable due to industry capacity constraints," said Cowen analyst Helane Becker.
Major carriers such as United Airlines Holdings Inc (UAL.O), American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N) and Southwest Airlines Co (LUV.N) have rushed to add staff after a faster-than-expected rebound in the U.S. travel market. "Margins are set to take a hit in 2023 as airlines ratify new contracts with labor groups," Cowen analyst Helane Becker said last month. "Delta's recent tentative pilot agreement, assuming it is ratified, could drive incremental unit costs higher by ~2%, and 2%-3% higher for American, Southwest and United," Barclays analyst Brandon Oglenski said on Wednesday. American Airlines on Thursday forecast a higher fourth-quarter profit as the Texas-based carrier benefited from strong demand for travel during the key holiday season. Shares of American Airlines, Delta Air Lines, United Airlines and Southwest Airlines fell between 14% and 30% in 2022 on mass cancellations and economic worries.
An outdated scheduling system and unique flight network structure exacerbated the problem. Airline analysts and industry experts told Insider and other outlets that Southwest's outdated scheduling system and atypical approach to mapping its flight network were partially responsible for the crisis. Canceled Southwest Airlines flights show on a monitor at Hollywood Burbank Airport, Tuesday, Dec 27, 2022. The problem has been further inflamed by Southwest's scheduling system. Passengers wait in line to claim their baggage at Nashville International Airport after their flights on Southwest Airlines were cancelled in Nashville, Tennessee, on December 27, 2022.
Southwest cancels thousands more U.S. flights
  + stars: | 2022-12-27 | by ( ) www.reuters.com   time to read: +2 min
Dec 27 (Reuters) - Southwest Airlines Co (LUV.N) led U.S. airline cancellations on Tuesday as the low-cost carrier struggled to recover from harsh winter weather that has wrecked holiday plans for many. An arctic blast and a massive winter storm dubbed Elliott swept over much of the United States in the lead-up to the Christmas holiday weekend, forcing Southwest to scrap more than 12,000 flights since Friday. "The other airlines likely had manageable cancellations and delays, and actually appear to have recovered (in time to get everyone home)." Southwest said on Monday it had decided to continue operating a reduced schedule by flying roughly one third of its schedule "for the next several days." In total, U.S. airlines have canceled more than 5,000 flights for Tuesday and Wednesday, as of Tuesday morning.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAirlines are already anticipating a recession, says Cowen's Helane BeckerHelane Becker, Cowen senior research analyst, joins 'The Exchange' to discuss the airline trade and where to find opportunities in the sector.
American Airlines Group Inc. named a company veteran as its next finance chief as it reaps the benefits of an uptick in air travel and works to pay down debt. He succeeds Derek Kerr, who has held the CFO role at American since its 2013 merger with US Airways Group. During his 20-year tenure at American and airlines it absorbed, US Airways and America West, Mr. May has held senior-level roles in finance, regional operations and network planning. American is one of several airlines that cut back on flights this year amid widespread delays, staffing shortages and airport congestion. The company has said it plans to pay down about $15 billion of its total debt by the end of 2025.
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUnited is still the best airline stock going into 2023, says Cowen's Helane BeckerHelane Becker, Cowen senior research analyst for airlines, joins 'Closing Bell' to discuss airline stocks sinking in broad travel sell-off despite strong demand for travel.
United Airlines is the airline stock to own in 2023, according to Cowen. "We are staying with United Airlines as our top pick for 2023. "The carrier's network and alliances position it to benefit from the recovery in international travel. "We are not anticipating a full recovery of business travel, but believe the hybrid work environment is likely to continue into 2023. Shares of United Airlines are up slightly in 2022.
Focusing more long-term, though, airlines are boosting training programs to unprecedented levels and trying to attract a younger and more diverse next generation of aviators. That formula has been adopted by regional airlines, too, such as Mesa Air Group , Republic, Envoy, Cape Air and SkyWest . The regionals have always been an entry point for the mainline airlines' pilots, providing them the requisite number of hours of flight time needed before advancing. "The pilot shortage has abated to some extent," Murray said, "but at the expense of lower frequencies and fewer connection opportunities for travelers." Regional airline Republic has its own flight school, the Leadership in Flight Training Academy, in Indianapolis.
Delta Air Lines ' shares are due for takeoff as the industry's recovery continues its rebound from pandemic lows, Cowen says. Analyst Helane Becker upgraded shares of the airline to outperform from market perform, saying in a note to clients Friday that increased business and international travel as pandemic restrictions ease should provide solid tailwinds for Delta moving forward. Cowen's $54 price target suggests shares can rally about 78% despite dropping more than 22% this year. Along with the upgrade, Cowen upped its 2022 and 2023 earnings per share estimates to $2.84 and $7, respectively. Airline stocks suffered during the early days of Covid-19 as lockdowns halted most travel and resurging cases dented consumer appetite.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAmerican and JetBlue face antitrust trial over joint sales agreementHelane Becker, senior research analyst at Cowen, joins 'Power Lunch' to discuss American and JetBlue airlines' upcoming antitrust trial after the two companies initiated an alliance that would allow them to sell Northeast tickets jointly against competitors, and the imbalance to airline competition that could result from the decision.
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