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Posted
Jul 27 2009, 02:52 PM
by
James Dlugosch
Rating:
Money Blog: Top Stocks Blog - MSN Money
The single biggest risk threatening your portfolio has nothing to do with the economy, credit crisis, global recession, massive unemployment, easy monetary policy, green shoots or corporate earnings.
No, the single biggest risk to your portfolio is the swine flu. Health officials recently projected that up to 40 percent of Americans could contract swine flu this year and next.
One of the industries likely to be hardest hit by a swine flu pandemic is the airline industry. Airline stocks have been big losers so far in 2009, but green shoots are appearing in the form of firmer load factors and price increases that are sticking.
But don't be fooled. The perpetual bust cycle of the airline industry is likely to strike again as the flu season ramps up this fall. Given the spread of the virus through human contact, load factors will surely fall as individuals seek to defend themselves from contracting the flu.
Insulate your portfolio from a pandemic by selling these three airline stocks now.
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Posted
Jul 06 2009, 08:26 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
 You thought Southwest (LUV) was a no-frills airline? Try flying Ryanair, which already makes customers carry their own luggage directly to planes for loading.
Now, Ryanair wants people to stand up or sit on stools during flights so it can pack more flyers into its planes, reports The Daily Mail. Its chief executive, Michael O'Leary, says he's already talking with Boeing (BA) about designing standing-room-only planes. It may also ask Boeing to put coin-slots on the lavatory doors, and could charge customers £1 to use its restrooms during flight.
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Posted
Apr 27 2009, 10:37 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
 US Airways (LCC) is upping its fees for checked bags -- again. And this time it's a bit more confusing.
Starting in July, the airline wants travelers to prepay checked bag fees online when checking in. If you do that, you'll pay $15 for the first bag and $25 for the second. If you don't prepay online, it'll cost you a $5 "service fee." When you get to the airport, checking in bags will cost $20 for the first bag and $30 for the second. So, if you don't have a computer -- or can't access one -- get ready to pay.
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Posted
Mar 26 2009, 03:28 PM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
The airlines are struggling these days, much like everyone else.
In its effort to provide essential business and economic news and information to Minyans the world over, Minyanville.com has already covered the most critical trends, such as Ryanair (RYAAY) contemplating the first pay toilets inside commercial airliners.
As a frequent flier on US Air (LCC), I received a notice saying they were no longer going to charge for soda and water. Holy catfish. Not only is US Air unpopular with geese, they apparently wanted to antagonize the entire population (good thing they're stopping).
But what grotesquely overpaid executive thought up the idea of charging for soda and water in the first place? Probably the same executive who thought up in-flight pay toilets, which makes me suspect this advice could be coming from roaming consultants.
This is the kind of stuff you just can’t make up. The severity of the economic pinch on airlines is no secret. But some of this is getting ridiculous.
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Posted
Mar 25 2009, 03:03 AM
by
Bernhard Warner and Matthew Yeomans
Rating:
Money Blog: Top Stocks Blog - MSN Money
This post comes from The Big Money.
So much for the bonus tax. Lawmakers' hunt to recoup bonuses at American International Group (AIG) is "slowing significantly as passions on the issue cool," the Wall Street Journal reports. A week ago, the House overwhelmingly approved a bill to impose a 90% tax on bonuses distributed to the wealthiest employees at TARP bailout firms. A similar measure was expected as early as this week from the Senate. But now, the legislation could be put off altogether "if the administration demonstrates a commitment to reining in such payments in the future," the newspaper writes. In a further sign that tempers are simmering, House Majority Leader Steny Hoyer told Dow Jones that legislation to tax the bonuses paid to AIG executives "may not be necessary if the bulk of the bonuses are paid back voluntarily."
There is still plenty of anger being vented toward AIG in Washington, however
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Posted
Mar 24 2009, 10:47 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Airlines face industry-wide losses totaling $4.7 billion this year, according to new forecasts from the International Air Transport Association. Despite falling fuel prices, demand is plummeting as business and vacation travel continues to decline along with air freight volumes.
Giovanni Bisignani, the group's chief executive, is looking for revenue to fall 12% to $467 billion -- twice the decline seen after 9/11. By making large capacity cuts and not locking in fuel hedges as oil prices spiked, North American airlines are projected to eke out a small profit for the year. Carriers in the Asia-Pacific region will be the hardest hit, with losses of nearly $2 billion expected.
Given the worsening outlook, adding to the difficulties airlines are having securing new plane financing, another round of M&A activity is inevitable. But there will be winners in this shakeup, including
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Posted
Feb 23 2009, 07:33 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
 Seven months after it began charging customers $2 for sodas, coffee and other beverages, US Airways (LCC) is reversing its policy and will now give out drinks for free.
What happened? Well, in this airline's case, it was more about what didn't happen.
First, other airlines didn't follow US Airways' lead. Sure, they were fine with fees for checking bags and other things, but they drew the line when it came to charging for drinks.
Second, passengers didn't accept the fee. It became about more than a soda. It was a symbol of the gotcha nickel-and-dime game that some airlines -- with the exception of Southwest (LUV) -- are playing with customers.
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Posted
Jan 23 2009, 08:46 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
![]()  Shares of Southwest Airlines (LUV) are down a surprising 18% Friday, a day after solid financial results sent the stock price soaring. Analysts came down hard on the company, however, saying its high stock price (around $8 today) was not justified given everything going on.
And there is a lot going on with Southwest that investors should be aware of. You'd think a discount airline would do well in tough economic times. But the entire industry is suffering, and that includes stars like Southwest. Let's go over Southwest's issues: 1. Fuel strategy is backfiring. Southwest won the admiration of the industry when gas prices were high with its fuel-hedging strategy. It saved billions of dollars by locking in the prices it pays for gas ahead of time. That protected the airline when gas prices soared. But now, with oil at $40 a barrel, the hedging isn't so favorable, and cost the company $117 million in the fourth quarter. 2. Capacity cuts. Southwest is cutting its capacity by 4% this year -- the first time it has ever had to do so.
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Posted
Jan 06 2009, 10:24 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
Alaska Airlines (ALK) works as a perfect counterbalance to the price of oil; it’s probably one of the best airlines in the business. Talk to anyone from Seattle, and they’ll swear by it. Management knows how volatile the environment is, and is keeping a hoard of cash in the bank.
Alaska Airlines is the only game in town for the major cities in the “Last Frontier State,” and has a monopoly on several routes. In addition, they fly to Hawaii and Mexico.
Remember when Sarah Palin said that the only 2 foreign countries she’d ever visited were Canada and Mexico? Alaska Airlines was probably offering a special on trips to Cabo San Lucas. I’m sure Governor Palin learned much about the diplomatic community on the trip.
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Posted
Aug 14 2008, 01:39 PM
by
Matt Koppenheffer
Money Blog: Top Stocks Blog - MSN Money
Airline stocks have been the place to be lately. Continental has more than doubled since bottoming out in July, Delta is also up 100% from its lows, and UAL... well, after touching below $3 per share it's blasted off to over $12. The reason for all this renewed optimism? Let's all say it together: falling oil prices.
On The Motley Fool's CAPS service, CAPS member MENGIV blogged about the run in airline stocks and the fact that analysts are starting to upgrade the beleaguered group. In fact, he noted that JPMorgan expects as much as $13 billion in cost savings industry-wide due to falling fuel prices.
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