The past week saw Virgin America VA and SkyWest SKYW reporting strong first-quarter 2016 results, thanks to the dip in fuel costs. On the other hand, Allegiant Travel Company’s ALGT in-line earnings and revenue miss was quite a disappointment.
On the non-earnings front, Delta Air Lines DAL and Alaska Air Group ALK reported healthy traffic data for the month of April. Load factor (% of seats filled by passengers) increased for both the carriers as traffic growth outpaced capacity expansion in the month.
On the price front, the NYSE ARCA Airline index declined 2.6% to $88.43 over the past five trading days.
Recap of the Past Week’s Most Important Stories
- Low-cost carrier Virgin America’s first-quarter earnings (excluding special items) of 41 cents per share beat the Zacks Consensus Estimate of 36 cents. Results were aided by low fuel costs. Operating revenues came in at $364 million, surpassing the Zacks Consensus Estimate of $362 million. Revenues also improved 11.5% from the year-ago figure.