Around the World
June 22, 2020
A look at the world’s airlines, including end-of-week equity prices
Around the World: June 22, 2020
| Airline Name | Change From Last Week | Change From Last Year | Comments |
|---|---|---|---|
| American | -4% | -50% | Partner Qatar Airways starting to rebuild its U.S. network; maintained service to AA hubs DFW and ORD throughout crisis |
| Delta | -3% | -47% | Refunded $2b to customers since the start of this year; still hoping to avoid furloughs |
| United | -7% | -58% | Just over half of its active Mileage Plus members live in cities other than a United hub city; 13% live in New York metro; 7% in San Fran |
| Southwest | -4% | -33% | Flight schedules published through early January 2021; still has 140 planes grounded including all 34 of its MAXs |
| Alaska | -6% | -40% | San Francisco airport delaying some terminal upgrade work; terminal one expansion project to open in 2023 |
| JetBlue | -7% | -40% | Florida imposed quarantine rule on New York-area fliers this spring; New York now considering quarantine for Florida arrivals |
| Hawaiian | -3% | -40% | Current pilot contract doesn’t become amendable until July 2022; new 5-year flight attendant contract signed in April |
| Spirit | 0% | -61% | Providing $250k in flights to civic organizations promoting human and civil rights |
| Frontier | (not publicly traded) | Announced more new Florida flying last week, covering various airports including Miami | |
| Allegiant | -3% | -22% | Offering to notify pax in advance if their flights are booked more than 65%; options to change flights if so |
| SkyWest | -3% | -44% | Senate’s increase in national park funding could benefit many of the western places it flies |
| Air Canada | -5% | -53% | CFO Rousseau, talking at National Bank investor event, expresses uncertainty about potential impact of second wave of virus in the fall |
| WestJet | (not publicly traded) | Adding back 22 suspended routes next month; will soon have flights to 5 U.S. cities (NY, LA, Atlanta, Las Vegas, Orlando) | |
| Aeromexico | -5% | -63% | During Q1, Mexico’s airline traffic decreased 2% y/y nationwide |
| Volaris | 15% | -31% | Stock price jumps in reaction to heightened risk of Aeromexico bankruptcy |
| LATAM | -16% | -81% | Has 37m members in its Latam Pass loyalty program; its new partner Azul has 12m loyalty plan members (Gol’s Smiles program has 16m) |
| Gol | -1% | -44% | Financial auditors warning it might not last as a “going concern,” in other words at risk of bankruptcy |
| Azul | -1% | -52% | Bolivia provides modest financial support (a few million dollars) to rescue failing national airline Boliviana (BOA) |
| Copa | -8% | -50% | U.S. DOT levies $450k fine for illegally flying U.S.-Venezuela passengers over Panama |
| Avianca | 14% | -85% | Among the seven members of its unsecured creditor committee: Boeing, SMBC Leasing, Avianca pilot union |
| Emirates | (not publicly traded) | Continues to add new routes, and by extension, more connecting itineraries | |
| Qatar | (not publicly traded) | Doesn’t intend to take any new Boeing or Airbus planes this year or next; doesn’t want MAXs anymore, period (Sky News) | |
| Etihad | (not publicly traded) | Carriers rushing to add back flights to countries with early reopenings; Etihad last week restarted B787 flights to Athens as Greece welcomes tourists | |
| Air Arabia | -3% | 8% | FlyDubai planning to restart regularly scheduled pax service soon; will make an announcement shortly |
| Turkish Airlines | -2% | -4% | June 14 marked milestone at Istanbul’s new airport: newly opened third runway allowed for three Turkish Air planes to take off simultaneously |
| Kenya Airways | -3% | -28% | Lufthansa could put its Brussels Airlines unit, which specializes in African routes, into bankruptcy (La Libre) |
| South Africa Air. | (not publicly traded) | Rival Comair, also in business rescue (i.e. bankruptcy) presents turnaround plan to shareholders | |
| Ethiopian Airlines | (not publicly traded) | Revenue losses since crisis began now up to about $1b, CEO Tewolde Gebramariam estimates | |
| IndiGo | 2% | -35% | CEO Rono Dutta tells Economic Times that corporate travelers are increasingly booking private charters, which are profitable for IndiGo |
| Air India | (not publicly traded) | In April this year, all Indian airports handled just 62k pax, down 99.8% from the 27m they welcomed in April 2019 | |
| SpiceJet | -1% | -61% | Times of India runs story about Vistara’s trip to Seattle to pick up a B787; Boeing sent corporate jet to transport executives |
| Lufthansa | -3% | -32% | Fateful shareholder meeting this week; company warning that gov’t bailout might not get approval; could lead to bankruptcy filing |
| Air France/KLM | -5% | -40% | Turnaround plan, coming soon, could involve 8k-to-10k job cuts, reports suggest |
| BA/Iberia (IAG) | -1% | -40% | Spain’s airlines practically begging government to aid tourist sector; Air Europa warns it’s fast running out of money |
| SAS | 2% | -28% | Swedish government pledges to support airline with new equity; Denmark inclined toward similar support |
| Alitalia | (not publicly traded) | One key decision to make as it prepares to relaunch with massive gov’t aid: Who will be its CEO? | |
| Finnair | -11% | -86% | Icelandair aiming to finalize out-of-court restructuring by month’s end, with concessions from unions, Boeing, lessors, lenders, etc.; flight attendants a holdout |
| Virgin Atlantic | (not publicly traded) | London Heathrow airport urging government to establish “air bridges” to low-risk countries | |
| easyJet | -1% | -11% | IAG putting the Austrian unit of its Level subsidiary into bankruptcy; Level’s longhaul business not affected |
| Ryanair | 4% | 16% | Remember when it said early on in the crisis that traffic would be back to normal by now? Was a bit overoptimistic |
| Norwegian | -7% | -92% | Demand coming back sooner than expected, allowing for the restart of planes, recall of workers; but more flying requires more capital |
| Wizz Air | 6% | -2% | CEO Jozsef Varadi, on Monocle podcast, says airports “begging” for its capacity |
| Aegean | 3% | -49% | Polish government says bankruptcy for national airline LOT a “last resort” |
| Aeroflot | -7% | -17% | Reuters reports that government planning to inject new money into airline in exchange for more shares |
| S7 | (not publicly traded) | Russian central bank cuts interest rates to try and stimulate oil-dependent economy | |
| Japan Airlines | -4% | -39% | Says at shareholders meeting that it’s looking to raise nearly $5b in new funds; sees 20% of domestic demand recovering in June; 40% in first half of July |
| All Nippon | -1% | -26% | Japan lifted restrictions on domestic travel last week; airlines hoping to see demand rise in response |
| Korean Air | -2% | -38% | HDC conglomerate still clamoring to renegotiate deal to buy 31% of Asiana Airlines |
| Cathay Pacific | -4% | -31% | South China Morning Post says HNA-backed Hong Kong Airlines kept alive by mainland Chinese banks; Cathay ally Air China a rumored buyer |
| Air China | -3% | -38% | Airlines cancelling flights in response to China’s latest Covid outbreak in Beijing, Cirium analsys shows; slowing recovery momentum |
| China Eastern | 0% | -32% | Government efforts to build free trade zone in Hainan could reflect desire to replicate Hong Kong’s financial clout |
| China Southern | -1% | -31% | China says latest Covid outbreak in Beijing traced to Europe; did a roundtrip |
| Singapore Airlines | -4% | -57% | Singapore Changi airport delaying plans for development of fifth terminal and third runway |
| Malaysia Airlines | (not publicly traded) | IATA seeing “quite strong increases” in some Asian domestic markets; encouraging air travel corridors, bridges and bubbles | |
| AirAsia | -8% | -67% | Hoping its pass products offering unlimited travel will help spur domestic travel recovery |
| Thai Airways | -6% | -62% | Thailand considering fiscal stimulus that would provide money to citizens for use on domestic travel |
| VietJet | -3% | -11% | Moving forward with plan to buy Jetstar Pacific stake currently owned by Qantas |
| Cebu Pacific | -14% | -53% | Outsourced ground handler announces big layoffs; Cebu itself shrinking its workforce too |
| Qantas | -3% | -20% | Retired its last B747; started flying the type in 1971; A380s will stick around |
| Virgin Australia | 0% | -49% | Australian antitrust regulator pledges to monitor domestic fares to ensure against predatory pricing by Qantas |
| Air New Zealand | -7% | -44% | Advises investors to expect roughly $75m loss ex items for its fiscal year that ends this month; red ink obviously concentrated post-Covid |
| Brent Crude Oil | 8% | -34% | JPMorgan makes case that oil prices could spike due to supply cuts and underinvestment |
Some stocks traded on multiple exchanges; not intended for trading purposes.