Aviation Industry (incl Maintenance) 01 (Dec 08 - May 20)

[winston]

AFTER BOTTOMING IN 2011, AIRLINE STOCKS ARE SURGING by Brian Hunt

As we speculated late last year, the airline sector is now booming… and that's a good sign for America.

Back in September 2011, we noted the trouble with airline stocks. Airlines sport razor-thin profit margins, they're subjected to wild swings in fuel costs, and they require lots of capital expenditures to keep the businesses running. This makes them horrible long-term investments.

But from a trading viewpoint, it's worth noting that airlines go through big "boom and bust" cycles. These cycles can be traded for big profits.

In our write-up, we noted how airlines had just experienced a big bust. Many airline names, like Southwest Airlines, had lost 30%-40% of their value in just a few months. Sentiment toward the sector was awful. This, we speculated, offered a tradable bottom for contrarians.

As you can see from the two-year chart below, our call was well-timed. The airline fund bottomed late last year… started rising… and just this week, surged to a new yearly high.

Some individual names have climbed 33%-50%. It's a sign America is doing plenty of flying for business trips and vacations… which, in our opinion, is a good thing.


Source: www.dailywealth.com

[winston]

AIRLINE STOCKS ARE ON A TEAR by Brian Hunt

The airline move we noted in December has turned into one heck of a rally…

About a month ago, we highlighted the positive price action in airline stocks. As measured by the airline ETF (FAA), the sector had just reached a new 52-week high.

Since most flights are for business trips and vacations, we said this action was "good for America." It was also confirmation the bullish call we made on the sector back in September 2011 was the right call.

Since last month's update, airline stocks have continued to rally. As you can see from the chart below, shares of the airline ETF have "ripped" from the low $30 area to the $38.50 area in just a few months.

This rally has made airline stocks far too "overstretched" to buy right now. But from a "big picture" economic point of view, we have to note the improving profits and surging share prices are evidence the U.S. economy is doing much better than the pessimists would have you think.

Source: www.dailywealth.com

[winston]

US to remove controversial X-ray scanners

(AP) - Airport scanners with their all-too revealing body images will soon be going away, the Transportation Security Administration (TSA) said Friday.

The scanners that used a low-dose X-ray will be gone by June because the company that makes them can't fix the privacy issues, the TSA said. The other airport body scanners, which produce a generic outline instead of a naked image, are staying.

The government rapidly stepped up its use of body scanners after a man snuck explosives onto a flight bound for Detroit on Christmas day in 2009.

At first, both types of scanners showed travellers naked. The idea was that security workers could spot both metallic objects like guns as well as non-metallic items such as plastic explosives. The scanners also showed every other detail of the passenger's body, too.


Source: AP

[winston]

Global air-passenger traffic 'up 5.9%'

The globe's air-passenger traffic rose by a solid 5.9 percent in March compared with a year ago, fuelled by strong performances in emerging markets, the International Air Transport Association said Wednesday.


http://www.france24.com/en/20130501-glo ... traffic-59

[winston]

An amazing "bad to less bad" rally in airline stocks… Delta and American Airlines soar 200%-plus over the past 18 months.

[winston]

Global aviation profit to hit US$18bil but margin still low 2 June 2014

DOHA: The global aviation industry is expected to bag a collective profit of US$18bil on the back of revenues of US$746bil in 2014, compared to 2103’s estimated profit of US$12.9bil, said International Air Transport Association (IATA) chief executive officer Tony Tyler.

http://www.thestar.com.my/Business/Busi ... still-low/

[winston]

<Research Report>Summary of M Stanley ratings, targets for aviation stocks

Summary of Morgan Stanley's latest ratings and targets for aviation stocks:

Stock / Investment Rating / Target Price (HK$)
CHINA SOUTH AIR (01055.HK) / Underweight->Equalweight / 2.62->2.52
CHINA EAST AIR (00670.HK) / Equalweight->Undereweight / 3.01->1.93
AIR CHINA (00753.HK) / Equalweight->Underweight / 5.25->3.84
CATHAY PAC AIR (00293.HK) / Equalweight / 16.94->13.47


Source: AAStocks Financial News

[winston]

TOL:-

With Oil dropping so much , isn't it time to watch the airlines ?

[winston]

Can you believe this ?

Americans say avoiding international air travel over Ebola outbreak: Reuters/Ipsos poll

By Dan Whitcomb

http://www.reuters.com/article/2014/10/ ... healthNews

[winston]

Airline stocks soar… Southwest, Delta, and American Airlines all rally 45%-plus in 2014.