Why Delta Air Lines, American Airlines, and Southwest Airlines Stocks Are Up Wednesday
A positive prediction from Delta pulls the other airlines up with it.

Rich Smith(TMFDitty)
May 20, 2020 at 2:09PM
What happened
Airline stocks were getting a second wind in early afternoon trading Wednesday, with shares of Delta Air Lines (NYSE:DAL) leading the charge with a 4.1% gain as of 12:15 p.m. EDT today. Southwest Airlines (NYSE:LUV) stock and American Airlines Group (NASDAQ:AAL) were not far behind, climbing 4% and 2.5%, respectively. Credit for the surge must go to Delta.

So what
Speaking on Fox Business this morning, Delta CEO Edward Bastian predicted that after months of flight reductions, Delta will probably execute a turn in the near future and begin slowly increasing capacity again in June and July.

Currently, the air travel business remains slow, and Delta's load factor is about 35% to 40%, Bastian said. But the company believes it can grow to 60% even if that means keeping middle seats open to promote social distancing on its airplanes.

4 airplanes viewed from various anglesIMAGE SOURCE: GETTY IMAGES.
Bastian added, "Once we get close to 60% on an individual route, that'll be the trigger for us to add more planes into the system." Judging from current trends, he believes the company will probably add about 200 flights in June, and then 200 or 300 more in July. And this is a trend he sees continuing over the next 12 to 18 months.

Now what
Bastian was speaking about domestic travel trends. He cautions that international traffic, which is subject to travel bans and advisories from multiple countries that could slow a recovery, probably won't start coming back until 2021.

Still, if a revival is going to happen, domestic travel is probably the place Delta would like to see it happen first. According to data from S&P Global Market Intelligence, in ordinary years, Delta derives more than 70% of its annual revenue from domestic flights, and less than 30% from international travel.

And if what holds true for Delta applies to other airlines, then American Airlines and Southwest could benefit from this trend even more. American does 73.5% of its business domestically, and Southwest more than 97%!

For that matter, even United Airlines Holdings (NASDAQ:UAL), the U.S. carrier most exposed to international business (37.5% of revenue comes from Atlantic, Pacific, and Latin American travel), should be hoping for a revival of U.S. domestic traffic most of all.

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Airline Stocks Rally As Southwest, United, Delta Signal Turning Point

MSCI's gauge of stocks across the globe gained 1.36% to within 1 point of 500, after the benchmark was unable to climb past 495 the past three weeks. The pan-European STOXX 600 index rose 0.98% to close just shy of a three-week high, led by the tech, chemicals and energy sectors. On Wall Street, the Dow Jones Industrial Average rose 369.04 points, or 1.52%, to 24,575.9. The S&P 500 gained 48.67 points, or 1.67%, to 2,971.61 and the Nasdaq Composite added 190.67 points, or 2.08%, to 9,375.78.

NEW YORK: A gauge of global equities broke out of a three-week trading range on Wednesday as investors bet on a rapid recovery from the coronavirus-induced recession.

Oil prices climbed 3%-4% on signs of improving demand and a drawdown in U.S. crude inventories, while a surge in Facebook Inc and Amazon.com Inc to record highs lifted the Nasdaq to within 5% of its all-time peak.

U.S. Treasury yields were little changed and gold edged higher, but gains were limited as risk appetite improved.

The markets are expecting economic recovery sooner rather than later, though there is a risk the slowdown isn't as temporary as some think, said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

"There's a view that as the economy reopens there hasn't been, so far, a resurgence in the hospitalization rates and that perhaps some of the 'worst-ever' data that we've seen will soon be behind us," Arone said.

MSCI's gauge of stocks across the globe gained 1.36% to within 1 point of 500, after the benchmark was unable to climb past 495 the past three weeks.

The pan-European STOXX 600 index rose 0.98% to close just shy of a three-week high, led by the tech, chemicals and energy sectors.

On Wall Street, the Dow Jones Industrial Average rose 369.04 points, or 1.52%, to 24,575.9. The S&P 500 gained 48.67 points, or 1.67%, to 2,971.61 and the Nasdaq Composite added 190.67 points, or 2.08%, to 9,375.78.

Two-thirds of 223 fund managers surveyed by Bank of America reckon recent equity gains indicate a bear-market rally.

Federal Reserve policymakers re-upped a pledge to keep interest rates near zero until they are confident the U.S. economy is on track to recovery, a detailed summary of their most recent policy-setting meeting showed.

The 10-year Treasury notes fell 2.1 basis points to yield 0.6899%.

U.S. crude inventories fell by 5 million barrels last week, Energy Information Administration data showed, while Cushing, Oklahoma, stocks dropped by 5.6 million barrels. [EIA/S]

U.S. crude futures rose $1.53 to settle at $33.49 a barrel, while Brent gained $1.10 to settle at $35.75 a barrel.

The euro extended gains on Monday's French-German proposal for a 500 billion euro common fund that could move Europe closer to a fiscal union.

The euro rose 0.51% to $1.0977 and the dollar index fell 0.382%. The Japanese yen strengthened 0.15% versus the greenback at 107.57 per dollar.

U.S. gold futures settled up 0.4% to $1,752.10 an ounce. - Reuters

03-Apr-2020
Domestic airline networks to lead post-COVID-19 AsiaPac rebound
The COVID-19 crisis shows that while it is good to have a globally diverse network, a strong domestic operation is a major advantage for airlines when a shock disrupts international traffic flows.

Industry logic holds that a broad spread of international routes lessens an airline’s reliance on any single market – including its home patch. So if a downturn occurs in one country or region, airlines can divert resources to areas that are not affected. Many successful airlines have built their models around this concept.

And that approach makes sense – until something like a pandemic appears out of nowhere to trigger global border closures. Then domestic networks become a godsend, and the giant airline companies that depend on international connecting traffic look more exposed.

While international travel was the first to be hit, COVID-19 has caught up with many domestic networks as governments are increasingly shutting down internal movement. But domestic networks can be expected to return sooner, and demand should also rebound more quickly.

The Asia-Pacific region illustrates the benefits and limitations of different approaches. Although having domestic routes will not guarantee success, they should provide a valuable foundation for many airlines’ eventual recoveries.

Takda MCO, takda harga 77sen sekarang :)

Takda ISU covid, AirAsia Dah RM2+, bukan? :)

Risk n return...

Genting BHD rebounded from 2.9+ to 4+, casino, theme parks and hotels in various countries Masih tutup sebab lockdown.


Share price is partially based on the future value. :)

Genm also rebounded from 1.8+ to 2.3+, casino, theme park and hotel Masih tutup kerana PKP

Dateline is 31 may. Can extend till 30 June like YTL :)

@sell Why QR not released?
20/05/2020 10:51 PM

AirAsia is likely to report losses for Q1, 2020. With unpaid leave, pay cut among the staff, etc etc, hopefully the cash balance is sufficient to cover the operating expenses till flight is back to normal.

AAX in the respective countries will seek helps, etc in their respective countries.

But, still AirAsia which focuses on domestic flights and with other biz segments seem to have greater recovery prospect. Good luck!

:)


Cambodia lifts ban on travellers from US, Iran and four European countries
Author: Tan KW | Publish date: Wed, 20 May 2020, 6:38 PM

PHNOM PENH : Cambodia on Wednesday (May 20) lifted a ban on foreign travellers from the United States, Iran, and four European countries after the kingdom has reported no new Covid-19 infections for more than a month.

Health Minister Mam Bunheng said in a statement that Prime Minister Samdech Techo Hun Sen approved the lifting of the ban on Tuesday.

Cambodia imposed the ban on foreign visitors from the US, Iran, Italy, Germany, Spain and France since mid-March to stem the spread of the Covid-19.

The ban lifting came after the country has detected no new Covid-19 cases since April 12, and all 122 Covid-19 patients in the kingdom have recovered.

However, Bunheng said, entry restrictions for all foreigners to Cambodia remained in effect.

All travellers, both Cambodians and foreigners, wishing to travel to Cambodia must provide a health certificate issued by competent health authorities of their country within 72 hours, certifying that they are not tested positive for the Covid-19, he said.

Moreover, foreign travellers must provide proof of their insurance policy that shows minimum medical coverage during their intended stay in Cambodia in the amount not less than US$50,000, he added.

The minister said the requirements for health certificate and insurance do not apply to any foreigner holding diplomatic visa (Visa A) or official visa (Visa B) of Cambodia.

He said all travellers, both Cambodians and foreigners, who travel to Cambodia will be transferred to waiting centres for Covid-19 lab tests and they must wait for their test results at those centres.

"If one or many of the passengers is tested positive for Covid-19, the rest of the passengers (in the same group) will be quarantined for 14 days," Bunheng said.

He added that for travellers who have been tested negative for the virus, they will be required to quarantine at their homes for 14 days under the monitoring from local authorities and health officials, and they will be required to test for the virus again on the 13th day of the quarantine.

- Xinhua

banyak orang dan syarikat takda duit lagi after mco, jika terpaksa atau mau fly, bajet airlines laku :)

sungguh luar biasa , price volatility 40%, macam juga sesuai bagi speculators :)

4 Weeks Price Volatility (%):
40.00%
52 Weeks Range: 0.50 - 3.05
52 Weeks Price Volatility (%):
10.59%
Average Price Target: 1.07
Price Target Upside/Downside: +0.30

dont time the market, if takut, masuk/beli in stages.

@OogyTheNewbie Sifu/guru what are your thoughts? will the price go down some more this week? hoping to collect more at lower price..
20/05/2020 4:57 PM

When domestic travel restarts and digital bank licence obtained, people will sing different songs here. Mark my words . God bless!

AirAsia is also a fintech player , not just a domestic airlines. Its big data of all passengers over many years is its most valuable assets.

Like china , revival of domestic travel after MCO. + For AirAsia, domestic travel player. Also more people have less money, opt for bajet ticket lagi :)

Big Pay app with debit card + money transfer/exchange plus digital bank licence later . Big data of all passengers, greatest asset for fintech

Same here, I guess

https://www.klsescreener.com/v2/news/view/678877

then, country by country lifted MCO, another big jump.... fingers crossed

lastly, i predict airasia will start with domestic flights without social distancing like Australia...a big jump later.

next, airasia obtains digital bank licence will be another jump :)

ok bye. jika tony & KK jual syer mereka, baru tak harapan bagi airasia... masih hopeful :)

big jump after mco is ended... positive mood :)

AA will do the same for domestic flight , i guess..... AAX is international , cerita lain :)


BUSINESS NEWSMAY 19, 2020 / 8:20 AM / A DAY AGO
Australia's Qantas set to ramp up domestic flights without social distancing
2 MIN READ

SYDNEY (Reuters) - Qantas Airways Ltd could restart 40-50% of its domestic capacity in July if states relax border controls, and expects to offer low and flexible fares without social distancing measures to stimulate travel demand, its chief executive said on Tuesday.

FILE PHOTO: Qantas planes are seen at Kingsford Smith International Airport, following the coronavirus outbreak, in Sydney, Australia, March 18, 2020. REUTERS/Loren Elliott
The airline will introduce measures on board from June 12 such as providing masks and cleaning wipes to ensure safe travel and give passengers peace of mind during the pandemic, but will not leave middle seats empty.

“Social distancing on an aircraft is impractical,” Qantas Chief Executive Alan Joyce told media. “It only gives you 60 centimetres (23.6 inches) between passengers.”

He said to meet Australia’s standard for social distancing of 1.5 metres on the ground, an Airbus SE A320 operated by low-cost arm Jetstar could fill just 22 seats, rather than the normal 180.

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“That means airfares are going to be eight to nine times more than they are today,” he said. “It economically will not be justified.”

Instead, Qantas will simplify catering, step up aircraft cleaning and ask passengers to limit movement around the cabin once seated.

Masks will not be mandatory but Qantas will recommend passengers wear them in the interest of everyone’s peace of mind, in a measure that is unlikely to be needed over the longer term, Qantas Group Medical Director Ian Hosegood said.

He said data showed the risk of catching coronavirus on a plane is extremely low and there are no documented cases of transmission, including on recent lengthy Qantas repatriation flights from London and Los Angeles that lacked social distancing.



Hosegood’s comments come as jet manufacturers and airlines launch an urgent initiative to convince nervous travellers that the air they breathe on planes is safe, believing this is critical to rebuilding the travel industry.

Qantas said 98% of its frequent flyers are planning trips for when restrictions are lifted and Joyce said domestic capacity would be ramped up accordingly from the current 5% of normal.

all countries ada bajet airlines, worst scenario, cantumkan AA dengan MAS

tak bagi AA mati punya, tourism industry is important to msia

apa deal akan diumumkan tak lama lagi kot? bantuan kerajaan atau merger with mas, dll

as long as tony & KK tak jual syer mereka, boleh bertahan... jika tak ok, mereka akan jual syer, bukan?

die what, direct biz transactions pun jual mahal

History
Date Price Change Dir-Volume Day Volume Dir-Value Day Value Avg Price % of Total Share Remarks


13/05/2020 00:00:00 0.8950 0.1450 6.500m 6.500m 5.818m 5.818m 0.8950 0.1945 -

07/04/2020 00:00:00 0.9600 0.1500 236,000 236,000 226,560 226,560 0.9600 0.0071 -

share price and volume continue to rise :)

Date Open Range Close Change Volume
19/05/2020 0.805 0.77 - 0.825 0.775 +0.025 (3.33%) 65,458,400
18/05/2020 0.74 0.73 - 0.77 0.75 +0.01 (1.35%) 35,540,000
15/05/2020 0.73 0.73 - 0.755 0.74 +0.01 (1.37%) 24,580,400
14/05/2020 0.74 0.73 - 0.75 0.73 -0.02 (2.67%) 18,457,100
13/05/2020 0.75 0.73 - 0.755 0.75 0.00 (0.00%) 26,517,600

AA wont die. able to get help in the short term from the govt,etc

MCO will end next month.... positive development

probably merge with MAS if air ticket is doubled due to social distancing requirement... 50% seat capacity

warrant patut 60sen+, saham ibu dah melebihi RM1 kini

warrant 30sen, flying

pasti dapat duit raya , nampaknya :)

it really seem a group trying to acquire both gp shares and warrants :)

mother share is also green today, warrant will fly :)

mother share above RM1 also, good for warrant.... top up 40sen become mother share for warrant. warrant should be around 60sen :)

warrant buy rate 60%, 29sen sudah

it seems my prediction on the warrant between 30sen to 35 sen by 5pm could become a reality :)

about RM40mil++ traded for mother shares... hope it is a genuine one ..


Last Price Today's Change Day's Range Trading Volume
0.99 -0.03 (2.94%) 0.90 - 1.10 44,121,200

hopefully, tencent is the buyer of the shares and warrants in the open market recently

if all the recent shares and warrants were purchased by a china company, they could become the largest shareholder in gp, right?

gp is an investment grade company, that's why kendall from spore pumped in money via equity participation :)

if few days later, tencent emerges as a major shareholder of gpacket, harga melambung lagi :)

With the recent announcement - proptech, bank Islam stuff blah blah blah digital bank... Really worth a look at gp. Kendall isn't stupid

Cheaper via open market for acquisition, recent purchase price paid by Kendall was 85sen per share via placement , correct? :)

Hope that the recent price rally is due to china company wanted to acquire a stake in GP via open market