Around the World
October 5, 2020
A look at the world’s airlines, including end-of-week equity prices
Around the World: October 5, 2020
| Airline Name | Change From Last Week | Change From Last Year | Comments |
|---|---|---|---|
| American | 6% | -49% | Among the many airlines experimenting with Covid testing for pax; first trial will be on Miami-Jamaica routes |
| Delta | 7% | -40% | Says again that recovery will be “long and choppy;” executive pay cuts extended |
| United | 5% | -57% | Chicago O’Hare still intending multi-billion-dollar terminal upgrade/expansion project but timing more uncertain given Covid |
| Southwest | 4% | -26% | Started 2020 with $4.1b in cash; ended Q1 with $5.5b; now has $15.8b |
| Alaska | 2% | -40% | S&P report shows Seattle, along with Phoenix and Charlotte, atop the rankings for y/y changes in home prices |
| JetBlue | 2% | -27% | David Neeleman’s new airline Breeze to use both in-house and outsourced maintenance |
| Hawaiian | 5% | -47% | One of seven U.S. airlines to take CARES Act loan (the other six are AA, United, Alaska, JetBlue, Frontier, SkyWest) |
| Spirit | 3% | -50% | Caribbean Airlines, from Trinidad & Tobago, implementing harsh new labor cuts |
| Frontier | (not publicly traded) | New promotion offering free flights to Orlando for anyone named Orlando (first or last name) | |
| Allegiant | -3% | -18% | Decided not to take government loan after securing attractive private sector funding; selling $150m in new bonds |
| SkyWest | 7% | -42% | Signs five-year loan deal with U.S. Treasury; can borrow up to $573m in CARES Act funds |
| Air Canada | -1% | -64% | Close to ordering 25k rapid Covid testing kits from health care firm Abbott; based on nose swabs |
| WestJet | (not publicly traded) | Canadian airline unions leading campaign for government aid for embattled industry | |
| Aeromexico | 8% | -68% | Some bondholders not happy with DIP loan terms proposed by Apollo (which by the way owns Sun Country in the U.S.) |
| Volaris | 5% | -17% | Tulum, south of Cancun along Mexico’s Caribbean coast, gets President AMLO’s endorsement for new airport |
| LATAM | -2% | -84% | Disclosed a $142m operating loss for the month of August; July’s operating loss was $161m |
| Gol | -3% | -47% | With one of the strictest aviation lockdowns worldwide, Argentina’s Aerolineas Argentinas expected to lose $700m this year |
| Azul | -9% | -51% | Receives certification to convert an E195 into an all-freighter aircraft |
| Copa | -11% | -50% | Panama to reopen borders and welcome international travelers on Oct. 12 |
| Avianca | -3% | -87% | Court injunction against Bogota’s participation in airline’s DIP financing remains in place; Avianca has enough funds lined up anyway |
| Emirates | (not publicly traded) | FAA certifies GE’s new engines built for B777-X; it’s the only engine option available to airlines ordering the plane | |
| Qatar | (not publicly traded) | Doha airport handled 38m pax in the 12 months to March 2020, a 9% y/y increase | |
| Etihad | (not publicly traded) | Tells Routes it’s likely to launch Abu Dhabi flights to Tel Aviv | |
| Air Arabia | 2% | -8% | Wizz Air Abu Dhabi was supposed to launch Oct. 1; launch now set for November |
| Turkish Airlines | 2% | -10% | In talks with government about financial aid, Reuters reports |
| Kenya Airways | 0% | 57% | Prospective Nigerian startup Green Africa, backed by some former American Airlines execs, receives new financing |
| South Africa Air. | (not publicly traded) | All operations temporarily suspended while it continues its search for more funding; might this grounding be permanent? | |
| Ethiopian Airlines | (not publicly traded) | Strong cargo yields helping it through the crisis; Addis Ababa well-positioned as a logistics hub | |
| IndiGo | 2% | -30% | Appoints former WestJet CEO Gregg Saretsky to its board of directors |
| Air India | (not publicly traded) | U.S. signs open skies agreement with Bangladesh | |
| SpiceJet | 8% | -59% | India-UAE “bubble” agreement for air travel extended through the end of this month |
| Lufthansa | -1% | -51% | Plans to restart some flights to India postponed after Delhi fails to give clearance |
| Air France/KLM | -3% | -69% | KLM submits restructuring plan to Dutch gov’t; precondition of receiving big loan package; plan includes big cost cuts |
| BA/Iberia (IAG) | -3% | -80% | BA to launch a London Heathrow-Bermuda nonstop in March; will use B777-200s |
| SAS | -52% | -75% | Gets clearance from Swedish regulators to proceed with new stock and convertible bond sales |
| Alitalia | (not publicly traded) | ENAV, the publicly-traded air navigation provider, says traffic was down about 50% y/y in Aug., similar in Sept. | |
| Finnair | 2% | -94% | Announces new initiative to improve its distribution within mainland China |
| Virgin Atlantic | (not publicly traded) | Extends marketing partnership deal with America’s National Football League (NFL) | |
| easyJet | 1% | -56% | U.K. adds Turkey and Poland to quarantine list; anyone who travels there must self-isolate for 2 weeks upon return |
| Ryanair | 0% | 10% | Continues to campaign stridently against government financial support to airlines; Spain’s aid for Air Europa a new target |
| Norwegian | 15% | -97% | Norway’s gov’t reportedly discussing the idea of buying a stake in Norwegian to help it stay aloft |
| Wizz Air | 4% | -10% | Announces two new routes connecting Romania with Birmingham in the U.K. |
| Aegean | -11% | -64% | Original delivery schedule had it taking 26 NEOs between 2020 and 2022; number now down to 15, 5 of which have already arrived |
| Aeroflot | -7% | -32% | Announces new share sale; Moscow to participate and maintain its 51% ownership stake |
| S7 | (not publicly traded) | Ukraine International adding some tourist flights to Egypt | |
| Japan Airlines | -5% | -39% | Assoc. of Asia Pacific Airlines (AAPA) was supposed to hold executive meeting in Japan next month; event switched to virtual |
| All Nippon | -10% | -33% | Big cutbacks to int’l schedule for November; will fly just 28 routes, not 75 |
| Korean Air | 3% | -18% | LCC Jeju Air not yet decided on whether to seek government aid (Yonhap) |
| Cathay Pacific | 2% | -47% | Anticipation building for the turnaround plan now in development; could mean significantly smaller airline |
| Air China | 3% | -27% | Bloomberg, citing data from Alibaba’s travel arm Fliggy, says domestic air reservations now roughly flat y/y |
| China Eastern | 1% | -5% | Construction of new Qingdao airport now complete; the seaport city has lots of economic ties to South Korea |
| China Southern | 1% | -13% | Guangzhou airport undertaking another big expansion; will be able to handle 120m pax by 2030 (Routes) |
| Singapore Airlines | 2% | -62% | Planned to offer flights to nowhere for aviation enthusiasts but reconsidered after pushback from environmentalists |
| Malaysia Airlines | (not publicly traded) | Running out of cash, Reuters reports; having trouble paying lessors and other suppliers | |
| AirAsia | -3% | -62% | Says Langkawi one of its most popular destinations; adds service from Kuching |
| Thai Airways | -1% | -64% | VietJet’s Thai affiliate now offering “deluxe” fares that include various amenities and perks |
| VietJet | -1% | -24% | Rival Bamboo Airways now adding E195s to its fleet |
| Cebu Pacific | 6% | -57% | Launches new marketing campaign to boost local tourism |
| Qantas | 6% | -35% | Investment firm PAG Asia Capital providing the funds for REX’s dive into B737 flying |
| Virgin Australia | 0% | -46% | Sydney Morning Herald report says big pilot pay cuts coming; new owner Bain looking to further lower carrier’s cost base |
| Air New Zealand | 13% | -47% | Says (in reply to shareholder question) it would consider doing a loyalty status match offer |
| Brent Crude Oil | -7% | -32% | Oil prices drop last week as worldwide Covid cases spike, heralding further hits to global economy |
Some stocks traded on multiple exchanges; not intended for trading purposes.