Aviation Industry (incl Maintenance, Repair & Overhaul)

[winston]

Airline stocks are in an uptrend… JetBlue, Delta Air Lines, and American Airlines are up 30%-plus in seven months.

[winston]

Airline stocks are in an uptrend… JetBlue, Delta Air Lines, and American Airlines are up 30%-plus in seven months.

[winston]

U.S. airlines group expects busiest summer travel season ever

Summer travel on U.S. airlines is expected to reach an all-time high this year on the wings of a strong U.S. economy, Washington-based trade group Airlines for America said on Monday.

The group estimates that about 222 million passengers will fly on U.S. airlines from June through August, up 4.5 percent from the same time last year.

U.S. carriers are increasing the number of seats available for booking by 4.6 percent to accommodate the demand, the group said.

"The continued rise in U.S. consumer sentiment and employment is leading to more people traveling more often," the group's Chief Economist John Heimlich said in a statement.

The top three nonstop international destinations from the United States are Canada, Mexico and the United Kingdom, the group said.

Strong U.S. domestic demand is poised to benefit American Airlines Group Inc (AAL.O), United Continental Holdings Inc (UAL.N), Delta Air Lines Inc (DAL.N) and others, while the lower cost of fuel - airlines' largest variable expense - is adding hundreds of millions of dollars to their bottom lines.

Source: Reuters

[winston]

THIS "BOOM & BUST" SECTOR IS BREAKING DOWN

After nearly four years of huge gains, the uptrend in airline stocks has been broken.

Back in September 2011, we wrote a bullish note on 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 business 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.

Just after our note, airlines stocks entered a huge, multiyear rally. Take major flight-operator Southwest Airlines (LUV), for instance. As you can see in the three-year chart below, shares soared nearly 500% in less than three years.

But since reaching an all-time high in January, shares are down 24%... and the trend of higher highs and higher lows has been broken. Traders be advised... After a four-year boom, airline stocks may be back in "bust" mode.

Source: Daily Wealth

[winston]

THIS "BOOM & BUST" SECTOR IS BREAKING DOWN

After nearly four years of huge gains, the uptrend in airline stocks has been broken.

Back in September 2011, we wrote a bullish note on 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 business 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.

Just after our note, airlines stocks entered a huge, multiyear rally. Take major flight-operator Southwest Airlines (LUV), for instance. As you can see in the three-year chart below, shares soared nearly 500% in less than three years.

But since reaching an all-time high in January, shares are down 24%... and the trend of higher highs and higher lows has been broken. Traders be advised... After a four-year boom, airline stocks may be back in "bust" mode.

Source: Daily Wealth

[winston]

Why Airline Stocks Should Be on Your Income Radar

Recent dividend increases like those by LUV and DAL should become more norm than exception

By Craig Adeyanju

Source: InvestorPlace

http://investorplace.com/2015/06/airlin ... X_9-dKqqko

[winston]

<Research Report>M Stanley's Latest Ratings & TPs for Aviation Stocks (Table)

Morgan Stanley, in a report, updated its investment ratings and target prices for aviation stocks:

Hong Kong Listed Aviation Stocks:
Stock/ Investment Rating/ Target Price (HK$)
CHINA SOUTH AIR (01055.HK)/ Overweight/ 6.77->10.24
AIR CHINA (00753.HK)/ Equalweight/ 7.76->8.63
CHINA EAST AIR (00670.HK)/Equalweight/ 4.85->7.1
CATHAY PAC AIR (00293.HK)/Equalweight/ 18.22->19.32

China Listed Aviation Stocks:
Stock/ Investment Rating/ Target Price (RMB)
Spring Airlines (601021.SH)/ Overweight/ 119.09->140.75
Air China (601111.SH)/ Underweight/ 6.73->9.08
China Eastern Airlines (600115.SH)/ Underweight/ 5.23->9.58
China Southern Airlines (600029.SH)/ Underweight/ 6.88->10.42

Source: AAStocks Financial New

[winston]

not vested

<Research Report>M Stanley: Chinese Airlines to See 'Super Cycle' on Earnings; All TPs Lifted

Morgan Stanley, in its report, expected the Chinese airlines may see a "super cycle" on their earnings, exceeding the historically high levels in 2010 due to the lower fuel prices as well as the strong traffic demand in China.

Although the share prices of Chinese airlines have surged by 15% to 171% YTD, it is believed that the[b] strong growth in the international routes [/b]can support the profits.

Also, the book value per share can be raised by the potential A-share placement.

The broker lifted the earnings forecasts of Chinese airlines in 2015 by 7-33% (excluding AIR CHINA (00753.HK))

Meanwhile, it reiterated the rating of CHINA SOUTH AIR (01055.HK) at Overweight and the target price was raised from $6.77 to $10.24.

The rating of AIR CHINA was maintained at Equalweight and its target price was lifted from $7.76 to $8.63.

CHINA EAST AIR (00670.HK) was reiterated at Equalweight with the target price lifted from $4.85 to $7.1.

Morgan Stanley was bullish on the outlook of Chinese airlines in 2016. The net profit forecasts of CHINA SOUTH AIR in 2015-2017 were raised by 26%, 16% and 41% to RMB8.8 billion, RMB8.9 billion and RMB10.2 billion, respectively.

Source: AAStocks Financial News

[winston]

Southwest Airlines and American Airlines both drop more than 20% over the past three months.

[winston]

$5.6t profit boon

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