In the past week, Ryanair Holdings RYAAY reported solid traffic numbers for December 2024, driven by upbeat air travel demand. Delta Air Lines DAL was featured in the news when it announced a new partnership with Uber Technologies UBER at the 2025 Consumer Electronics Show.
The U.S. Department of Transportation, or DOT, fined JetBlue Airways JBLU worth $2 million for chronic flight delays. Southwest Airlines LUV inked a fleet-related deal with Babcock & Brown Aircraft Management.
Read the last Airline Roundup here.
Recap of the Recent Most Important Stories
1. In December 2024, the number of passengers transported on Ryanair flights was 13.6 million, reflecting an 8% year-over-year increase. RYAAY’s traffic in December was much more than the November reading of 13 million. The December load factor (percentage of seats filled by passengers) improved to 92% from 91% in the year-ago period. RYAAY operated more than 77,380 flights in December 2024. This marks an improvement from 73,750 flights operated in November 2024.
RYAAY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Per DOT’s investigation, JetBlue operated four chronically delayed flights at least 145 times between June 2022 through November 2023. Each flight was chronically delayed for at least five consecutive months. The persistent delays violated federal regulations, highlighting a systemic issue present in JBLU’s scheduling and operational framework. Despite DOT’s warning on the issue, JetBlue continued to operate three more chronically delayed flights between Fort Lauderdale and Orlando, FL, and JFK, as well as between Fort Lauderdale and Windsor Locks, CT. JBLU will have to pay $1 million in cash directly to the U.S. Treasury. The other half of the penalty is to compensate the passengers harmed by either the chronically delayed flights or any future JBLU flight cancellations/delays of three hours or more within the next year. The future compensation will be valued at a minimum of $75 for each harmed passenger.
3. Following the partnership with UBER, Delta’s SkyMiles members will be able to earn SkyMiles on Uber rides to and from the airport. DAL’s customers will be eligible for two miles per dollar on any premium Uber ride option and three miles per dollar spent on Uber Reserve. Uber Reserve is a Scheduled Rides option that allows customers to request rides ahead of time. Customers of the airline will also receive one mile per dollar on Uber Eats restaurant and grocery orders worth at least $40. This benefit can be availed from this spring. Uber replaces Lyft LYFT as DAL’s ride-sharing partner. The partnership with Lyft was established in 2017.
4. Southwest Airlines inked a deal with Babcock & Brown Aircraft Management to sell and lease back 36 Boeing 737-800 aircraft in its fleet. The transaction helps the Dallas-based carrier raise cash, easing the pressure on its balance sheet and strengthening its financial position. A sale and leaseback transaction allows an airline to sell its used or newly acquired jets to leasing firms and rent them back for their use.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The NYSE ARCA Airline Index increased 5% to $70.38, as most stocks in the table above traded in the green. Over the past six months, the NYSE ARCA Airline Index has increased by 27.8%.
What’s Next in the Airline Space?
Delta will kickstart the fourth-quarter 2024 earnings season for airlines on Jan. 10. Upbeat passenger volumes are likely to have aided the carrier’s performance. However, high labor costs are likely to have hurt its bottom line.
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Free: See Our Top Stock And 4 Runners UpRyanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Lyft, Inc. (LYFT) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
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