Q4 Earnings Season: Strong Growth, But Weak Quality
Volume growth boosts Kansas City Southern's (KSU) fourth-quarter earnings. Improvement in operating ratio is also a positive.
United Continental's (UAL) fourth-quarter results are likely to be aided by higher passenger revenues. However, higher costs are expected to limit bottom-line growth.
Upbeat Q4 unit revenue projections by major carriers like American Airlines (AAL) have contributed to the NYSE ARCA Airline Index gaining.
Let's put United Continental Holdings, Inc. (UAL) stock into this equation and find out if it is a good choice for value-oriented investors right now.
The improved fourth-quarter unit revenue projections bode well for airline stocks.
Allegiant's (ALGT) December traffic and load factor increase on high demand for air travel. Its outlook for fourth-quarter unit revenues also raise optimism in the stock.
Delta's (DAL) fourth-quarter results were aided by strong demand for air travel. The new tax law is expected to aid Delta significantly.
American Airlines (AAL) provides an improved Q4 view with respect to unit revenues, costs and pre-tax margin. Unit revenues get raised on strong domestic close-in bookings, among other factors.
United Continental's (UAL) improved fourth-quarter passenger unit revenues view bodes well ahead of the earnings season.
United Continental's (UAL) unit reports decline in load factor for December on capacity expansion exceeding traffic growth. However, the company provides bullish revenue and cost view for Q4.
The overall sentiment pertaining to airlines is quite positive.
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With high costs impeding bottom-line growth of carriers, multiple flight cancellations caused by Grayson is likely to dent their top lines.