Guess the stocks Ep. 6: Identify airline company's profit potential
Back in the end of 2021, when the world economy was recovering from the Covid-19 pandemic, Delta Airlines overestimated the growth of travel demand. They increased their airplanes' carrying capacity by a large amount, but the passenger demand remains weak. Delta Airlines reported losses for Q4 2021 and Q1 2022, resulting in significant stock price drop.
Passenger Load Factor (PLF) is the key indicator for airline companies' deployment strategy. It is the percentage of available seating capacity that has been filled with passengers. A high load factor indicates efficient capacity utilization. A low load factor might suggest the need for adjustments in capacity and operating strategies, in other words potential for profit improvement.
In Delta Airlines' case, they deployed 51,810 million available seat miles (ASM) in Q1 2022, nearly 30% YoY over Q1 2021. But the revenue passenger miles (RPM) was only 38,700 million, leading to a drop in passenger load factor. Delta Airlines reported a $940 million net loss for that quarter.
For guidance on checking net income on moomoo:
Go to Quote> Company> Financials> Income Statement> Net Profit (Try it now!)
Go to Quote> Company> Financials> Income Statement> Net Profit (Try it now!)
Challenge starts here>>
The figure shows the passenger load factor of four airline companies. Company C has maintained a very high PLF since Q3 2022, whereas the rest three companies have seen their PLF fluctuate over the past two years.
Questions:
1) Which airline do Company A, Company B, Company C and Company D refer to, respectively?
2) Which airline stock has performed worst in the past two years? Briefly talk about the relation between their deployment strategy, net profit and stock performance.
1) Which airline do Company A, Company B, Company C and Company D refer to, respectively?
2) Which airline stock has performed worst in the past two years? Briefly talk about the relation between their deployment strategy, net profit and stock performance.
An equal share of 5000 points: All mooers who correctly answer question 1 and give a reasonable answer to question 2 will get an equal share of 5000 points. (e.g., If 100 mooers answer correctly, each mooer will get 50 points.)
Hint:
Company A: It is an U.S. airline company headquartered in Fort Worth, Texas. It is the largest airline in the world when measured by scheduled passengers carried, revenue passenger miles, and daily flights.
Company B: It is an U.S. airline company headquartered in Chicago, Illinois. It was merged and reformed with another airline back in 2010.
Company C: It is an international airline based in a Southeast Asia country. It was the first to put the Airbus A380—the world's largest passenger aircraft— into service.
Company D: It is is a major airline in the U.S that operates on a low-cost carrier model. It is headquartered in Love Field, Dallas.
Company A: It is an U.S. airline company headquartered in Fort Worth, Texas. It is the largest airline in the world when measured by scheduled passengers carried, revenue passenger miles, and daily flights.
Company B: It is an U.S. airline company headquartered in Chicago, Illinois. It was merged and reformed with another airline back in 2010.
Company C: It is an international airline based in a Southeast Asia country. It was the first to put the Airbus A380—the world's largest passenger aircraft— into service.
Company D: It is is a major airline in the U.S that operates on a low-cost carrier model. It is headquartered in Love Field, Dallas.
How to participate?
Drop your answers in the comment section below! Please answer all the questions!
Note: Only original submissions will be considered. Plagiarized content leads to disqualification from the event.
Drop your answers in the comment section below! Please answer all the questions!
Note: Only original submissions will be considered. Plagiarized content leads to disqualification from the event.
Event time:
Now till 25 October, 2024, 23:00 ET
For more companies' detailed earnings releases, check out Moo earnings hub!
Guess the stocks Ep. 5: What marks the competitive edge for E-commerce companies?
Guess the stocks Ep. 4: Why not be a guru-based investor?
Guess the stocks EP. 3: What key unlocks a company's enduring moat?
Guess the stocks EP. 2: The wheel of time in endless cycle turns
Guess the stocks EP. 1: Identify banks' ability to generate revenue
Guess the stocks Ep. 4: Why not be a guru-based investor?
Guess the stocks EP. 3: What key unlocks a company's enduring moat?
Guess the stocks EP. 2: The wheel of time in endless cycle turns
Guess the stocks EP. 1: Identify banks' ability to generate revenue
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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mr_cashcow : About time to plan for a vacation![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Q1)
Company A - $American Airlines (AAL.US)$
Company B - $United Airlines (UAL.US)$
Company C - $SIA (C6L.SG)$
Company D - $Southwest Airlines (LUV.US)$
Q2) $American Airlines (AAL.US)$ performed the worst in the past 2 years. They struggled to balance supply and demand, resulting in lower revenue, unstable profits, and stock volatility. Despite efforts to improve, it continues to face challenges in achieving consistent profitability
Rational Exuberance mr_cashcow : air travel is booming lately![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
FortuneFavours : Question 1
* Company A: American Airlines
* Company B: United Airlines
* Company C: Singapore Airlines
* Company D: Southwest Airlines
Question 2
- American Airlines
新手树 : Question 1
* Company A: American Airlines
* Company B: United Airlines
* Company C: Singapore Airlines
* Company D: Southwest Airlines
Question 2
- American Airlines
102362254 : Company A - $American Airlines (AAL.US)$
Company B - $United Airlines (UAL.US)$
Company C - $SIA (C6L.SG)$
Company D - $Southwest Airlines (LUV.US)$
Question 2 - $American Airlines (AAL.US)$ has performed worst in the past 2 years. They struggled to balance supply and demand, resulting in lower revenue, unstable profits, and stock volatility. Despite efforts to improve, it continues to face challenges in achieving consistent profitability. Earnings this week! Hopefully, they can turn things around soon
CNNT : Question 1
A: $American Airlines (AAL.US)$
B: $United Airlines (UAL.US)$
C: $SIA (C6L.SG)$
D: $Southwest Airlines (LUV.US)$
Question 2
American Airlines
*it's the only company among the 4 with negative valuation indicators (PE, PB, EPS, PS).
*According to airlineratings.com , it has the lowest customer service ratings and the lowest 'would recommend' rating
And my personal pet peeve...
*Negative profit margin so many years after covid
sociable Dingo_8604 : Q1:
A) $American Airlines (AAL.US)$
B) $United Airlines (UAL.US)$
C) $SIA (C6L.SG)$
D) $Southwest Airlines (LUV.US)$
Q2:
$American Airlines (AAL.US)$
Over the past two years, American Airlines (AAL) has performed the worst in terms of stock price compared to Southwest Airlines (LUV). AAL’s stock has experienced significant declines, including a total return of about -53% over five years and -34% over three years. As of October 2024, AAL was trading at around $12.97, down from a peak of $21.42 in 2022.
In comparison, LUV’s performance has also been poor, with a five-year total return of about -39% and a three-year total return of approximately -35%. However, Southwest’s stock price remained somewhat more resilient than AAL’s, making AAL the weaker performer overall during this period.
Guan88 : Company A - $American Airlines (AAL.US)$ Company B - $United Airlines (UAL.US)$ Company C - $SIA (C6L.SG)$ Company D - $Southwest Airlines (LUV.US)$ Question 2 - $American Airlines (AAL.US)$ Performed the worst in the past two years. They have struggled to balance supply and demand, leading to a decrease in revenue, unstable profits, and stock price fluctuations. Despite efforts to improve, they continue to face challenges in achieving stable profitability.
73766516rys : Question 1
Company A is American
Company B is United
Company C is Singapore
Company D is Southwest
Question 2
American Airlines. Earnings are impacted by fuel costs and labor. Summer demands help some.
010Leo : 1)
Company A - $American Airlines (AAL.US)$
Company B - $United Airlines (UAL.US)$
Company C - $SIA (C6L.SG)$
Company D - $Southwest Airlines (LUV.US)$
2)
worst performer in past 2 years is $American Airlines (AAL.US)$. Their focus on us short haul flights failed. they are faced with increased costs, slow supply of passengers.
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